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ENGROSSED HOUSE
BILL NO. 1085 By: Adams and Tedford of the
House
and
Coleman of the Senate
An Act relating to contracts; amending 15 O.S. 2021,
Section 141.14, as amended by Section 8, Chapter 225,
O.S.L. 2024 (15 O.S. Supp. 2024, Section 141. 14),
which relates to the Service Warranty Act; modifying
administrative fee amount; and providing an effective
date.
BE IT ENACTED BY THE PEOPLE OF THE STATE OF OKLAHOMA:
SECTION 1. AMENDATORY 15 O.S. 2021, Section 141.14, as
amended by Section 8, Chapter 225, O.S.L. 2024 (15 O.S. Supp. 2024,
Section 141.14), is amended to read as follows:
Section 141.14. A. In addition to the license fees provided in
the Service Warranty Act for service warranty associations each
service warranty association and insurer shall annually, on or
before the first day of May, file with the Insurance Commissione r
its annual financial statement as of a date not earlier than three
hundred sixty-five (365) days prior to the date submitted showing
all gross written provider fees or assessments received by it in
connection with the issuance of service warranties in this state
during the preceding calendar year and other relevant financial
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information as deemed necessary by the Commissioner. The financia l
statements required by this subsection must be:
1. Audited and prepared in accordance with statutory accounting
principles if the applicant complies with the requirements of
subsection A of Section 141.6 of this title; or
2. Verified under oath of at l east two of its principal
officers and prepared in accordance with generally accepted
accounting principles if the applicant utilizes an insurance policy
which satisfies the requirements of subsection B of Section 141.6 of
this title.
B. The Commissioner may levy a fine of up to One Hundred
Dollars ($100.00) a day for each day an association neglects to file
its financial statement in the form and within the time provided by
the Service Warranty Act.
C. In addition to the annual financial statements requi red to
be filed by subsection A of this section, the Commissioner may
require of licensees, under oath and in the form prescribed by the
Commissioner, quarterly statements or special reports which the
Commissioner deems necessary for the proper supervision of licensees
under the Service Warranty Act.
D. Provider fees and assessments received by associations and
insurers for service warranties shall not be subject to the premium
tax provided in Section 624 of Title 36 of the Oklahoma Statutes,
but shall be subject to an administrative fee of equal to two
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percent (2%) of the gross provider fee received on the sale of all
service warranties issued in this state during the preceding
calendar quarter. The fees shall be paid quarterly to the Insurance
Commissioner. However, licensed associations, licensed insurers and
entities with applications for licensure as a service warr anty
association pending with the Insurance Department that have
contractual liability insurance in place as of March 31, 2009, from
an insurer which satisfies the requirements of subsections B and C
of Section 141.6 of this title and which covers one hundred percent
(100%) of the claims exposure of the association or insurer on all
contracts written may elect to pay an annual administrative fee of
Three Thousand Dollars ($3,000.00) in lieu of the two -percent
administrative fee.
E. On and after January 1, 2026, the fee assessed pursuant to
subsection D of this section shall be equal to one and seventy -five
hundredths percent (1.75%) of the gr oss provider fee received on the
sale of all service warranties issued in this state during the
preceding calendar quarter, to be paid quarterly or Three Thousand
One Hundred Fifty Dollars ($3,150.00) for insurers and entities
eligible for and electing to pay an annual administrative fee in
lieu of the percent-based fee. On and after January 1, 2027, the
fee assessed pursuant to subsection D of this section shall be equal
to one percent (1.00%) of the gross provider fee received on the
sale of all service warranties issued in this state during the
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preceding calendar quarter, to be paid quarterly or Three Thousand
Three Hundred Fifty Dollars ($3,350.00) for insurers and entities
eligible for and electing to pay an annual administrative fee in
lieu of the percent-based fee. On and after January 1, 2028, the
fee assessed pursuant to subsection D shall be equal to Three
Thousand Seven Hundred Dollars ($3,700.00) for all service warranty
associations and insurers.
SECTION 2. This act shall becom e effective January 1, 2026.
Passed the House of Representatives the 10th day of March, 2025.
Presiding Officer of the House
of Representatives
Passed the Senate the ____ day of _________, 2025.
Presiding Officer of the Senate