The Hawaii Service Contract Provider license
Service Contract Provider
Stands behind the extended warranty on the appliance or the vehicle, registered rather than licensed, business entities only. Three ways to prove it can pay, and the middle one is the NAIC formula that the District, Minnesota and South Carolina write the same way: a funded reserve of forty percent of gross consideration, plus a deposit in trust with the commissioner.
Course
None
This license has no pre-licensing course route.
Ways in
1
There is no state exam for this license.
Exam
n/a
Not required on any of the routes below.
Every way to qualify
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Route 1 Register, and satisfy one of three financial responsibility tests
No state exam for this license
Financial responsibility, by any one of three routes
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Insure all service contracts under a contractual liability insurance policy issued by an insurer authorized to transact insurance in Hawaii or issued under the surplus lines part of article 8
- or
Maintain a funded reserve account for all obligations under in-force Hawaii service contracts of not less than forty percent of the gross consideration received less claims paid, subject to the commissioner's examination, and place in trust with the commissioner a financial security deposit of the greater of $25,000 or five percent of that gross consideration less claims paid, as a surety bond, securities eligible for deposit by authorized insurers here, cash, a letter of credit from a qualified financial institution, or another form the commissioner authorizes by rule
- or
Maintain, in the provider or its parent company, a net worth or stockholders' equity of at least $100,000,000, producing on request the most recent Form 10-K or Form 20-F filed with the Securities and Exchange Commission within the last calendar year or, where the company does not file, audited financial statements
and who is behind the business, updated every year
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The address of the principal office, the agent for service of process in Hawaii, the executive officers directly responsible for the service contract business, the name address and telephone number of any administrator designated to administer Hawaii service contracts, and a statement with proof of how the financial responsibility requirement is met, all updated annually
481X-3 is the registration and 481X-4 the money, and 481X-4 opens with a sentence that does real work: a provider complying with any one of the three paragraphs "shall not be subject to any other financial security requirements under state law". The middle route is a forty percent funded reserve and a deposit in trust of the greater of $25,000 or five percent, which the District, Minnesota and South Carolina all write the same way, where Washington's chapter 48.110 asks for $200,000 of net worth behind a reimbursement policy and nothing more. The Division registers only business entities and renews every 31 July, at $225 to register and $75 to renew, which is the cheapest renewal on its whole fee schedule. Chapter 481X sits in the trade regulation volume rather than in the insurance code, which is where Oregon's portable electronics vendor license turned out to live on 2026-08-19; here it is the service contract provider that has left the insurance title, and 481R-4(c) then exempts vehicle protection products from this chapter and from the insurance laws together.
Read at capitol.hawaii.gov on 2026-08-19
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No national seller sells a course for this license. The registration is granted on a financial responsibility test rather than on knowledge.