The Colorado Service Contract Provider license

The Division registers consumer goods service contract providers on a form of its own headed with section 10-4-1603, C.R.S., at a filing fee of $500 due annually on June 1. What the form tests is the money behind the contracts, and it is the statute's own test: section 10-4-1603(4)(a) makes a provider assure faithful performance either by insuring all its service contracts under a reimbursement insurance policy issued by a licensed insurer, or by maintaining, alone or with its parent, a net worth or stockholders' equity of at least one hundred million dollars. The form asks which, and for the policy or the Form 10-K, Form 20-F or audited statements behind it, with a parent company guarantee where the net worth is the parent's. No course and no examination. The provider must also give the contract holder a receipt and a copy of the contract, provide a sample of the terms on request or point to a website carrying them, and notify the commissioner in writing within thirty days of a change of name, address, financial condition, insurer, merger or exit from the market. Section 10-4-1602 exempts a list of items from the part before any of it applies.

Read at the Department on 2026-08-20