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The Minnesota Service Contract Provider license

Service Contract Provider

Registers the company obliged to perform under an extended service contract. Minnesota asks it for money rather than for knowledge: one of three financial routes, a $750 annual fee, and nothing else.

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

  1. Route 1 Register, and satisfy one of the three financial routes

    No state exam for this license

    One of three ways to show the obligation is backed

    • Insure every service contract under a reimbursement insurance policy from an insurer or registered risk retention group holding at least $15,000,000 of surplus as to policyholders and paid-in capital and filing audited statements annually, or at least $10,000,000 with a ratio of direct written premiums to that capital no greater than 3 to 1

    • or

      Maintain a funded reserve of not less than 40 percent of gross consideration received less claims paid on every in-force Minnesota contract, and place in trust with the commissioner a financial security deposit of at least five percent of the same figure and never less than $25,000, as a surety bond, eligible securities, cash, an evergreen letter of credit or another form the commissioner prescribes

    • or

      Maintain, or have a parent company maintain, a net worth or stockholders' equity of $100,000,000, evidenced on request by the most recent Form 10-K or Form 20-F filed with the Securities and Exchange Commission or by audited financial statements, with the parent guaranteeing the provider's Minnesota obligations where the parent's figures are used

    and the registration itself

    • A registration filed with the commissioner on the prescribed form, with $750 payable annually

    Minn. Stat. 59B.03, subd. 3 is the registration and subdivision 4 the three routes. The middle route is worded almost exactly as Hawaii's 481X-4 words its own, forty percent of gross consideration less claims paid plus a five percent deposit with a $25,000 floor, and the third is the same $100,000,000 net worth Washington, Hawaii and Texas all use. Subdivision 1 is the one Minnesota does differently: appointing an administrator to run the contracts is optional, "may, but is not required to", where Washington's chapter says flatly that it does not provide for the registration of administrators at all. Minnesota's fee is $750 a year against Washington's $250 to apply and $200 to renew and Hawaii's $75 renewal.

    Read at revisor.mn.gov on 2026-08-19

No national seller sells a course for this license, and nothing could: the registration turns on capital, reserves or net worth and on a $750 annual fee, and chapter 59B asks the provider for no examination and no course.