9855.3. (a) (1) The service contract form, along with all documents incorporated by reference into a service contract per the contract form, to be issued by the service contractor shall be filed with the director by the service contractor no later than 30 days prior to its use.
(2) The term “documents incorporated by reference” shall mean all documents that are expressly made a part of the contract but that are not a part of the body of the contract. These documents may include, but are not limited to, invoices, declaration pages, and sales receipts.
(3) Each service contract form shall be identified by a unique form number and date of last revision.
(4) Once a service contract form is filed with the director under paragraph (1), no further changes shall be made to the text of the contract form without resubmission of the contract form to the director, unless the text was indicated as variable text when the contract is initially filed with the director.
(b) Every service contract administrator shall file with its application for registration, and thereafter, with its application for registration renewal, a service contract reimbursement insurance policy.
(c) Every service contract seller shall file with his or her application for registration, and thereafter with his or her application for registration renewal, one of the following:
(1) The most recent annual report on Form 10-K required by the Securities and Exchange Commission, reflecting a net worth greater than the sum of the deferred revenues from service contracts in force. If the service contractor is a foreign corporation that files a comparable audited financial statement with its home government or with the United States government, the director may deem that statement an acceptable substitute for Form 10-K.
(2) A service contract reimbursement insurance policy.
(3) Evidence that his or her service contracts are administered by a service contract administrator who has obtained a service contract reimbursement insurance policy covering the seller’s service contracts.
(4) Evidence of a funded account held in escrow equal to a minimum of 25 percent of the deferred revenues from the service contracts in force.
(Amended by Stats. 2018, Ch. 578, Sec. 20. (SB 1483) Effective January 1, 2019. Repealed as of January 1, 2024, pursuant to Section 9855.9.)