The District of Columbia Service Contract Provider license

D.C. Code 31-2351.03(d) has every provider of a service contract sold in the District file a registration giving its name, full corporate address, telephone number and contact person, designate a person in the District for service of process, and pay $200 on registration and every year after. The Department states the test for who has to do it in one sentence: "If you are contractually obligated to the service contract holder under the terms of the service contract you must register as a provider", and an entity that is not financially responsible under the contract does not register at all, which takes most administrators out. Section 31-2351.03(e) then asks the provider to assure performance in one of three ways: insure every contract under a reimbursement insurance policy from an insurer holding at least $15 million of surplus and paid-in capital, or between $10 million and $15 million with a net-written-premium-to-surplus ratio no greater than three to one; or hold a funded reserve of at least forty per cent of gross consideration received less claims paid and place a security deposit with the Commissioner of at least five per cent of the same figure and never less than $25,000, as a surety bond, eligible securities, cash or a letter of credit; or maintain, alone or with a parent, a net worth of $100 million, with the parent guaranteeing the obligations if the parent's figure is the one relied on. No examination and no course. Registration renews annually, and the window opens sixty days before April 30.

Read at the Department on 2026-08-20