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CA Department of Insurance

Vehicle Service Contractor Provider

Licensing information

Applicable Forms

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Table of Contents


Authorizing Act: Section 12800 of the California Insurance Code reads, in part:

An entity legally obligated under a terms of a vehicle service contract and who is required to have a Vehicle Service Contract Provider's license.

"Vehicle service contract" means a contract or agreement for a separately stated consideration and for a specific duration to repair, replace, or maintain a motor vehicle or watercraft, or to indemnify for the repair, replacement, or maintenance of a motor vehicle or watercraft because of an operational or structural failure due to a defect in materials or workmanship, or due to normal wear and tear. A vehicle service contract may also provide for the incidental payment of indemnity under limited circumstances only in the form of the following additional benefits: coverage for towing, substitute transportation, emergency road service, rental car reimbursement, road hazard protection, reimbursement of deductible amounts under a manufacturer's warranty, and reimbursement for travel, lodging, or meals. "Vehicle service contract" also includes an agreement, for separately stated consideration, that promises repairs at a discount to the purchaser for any combination of parts and labor in excess of 20 percent.


Qualifications

  • Minimum Age: 18 years
  • Residency: California residency is not required
  • Prelicensing Experience/Education: Not required
  • Continuing Education: Not required
  • Entity Types: Individual and Business Entity.


Additional Documents:  You are required to provide the following additional information to the following address:

California Department of Insurance
Legal Division, Auto Enforcement Bureau
45 Fremont Street, 21st Floor
San Francisco, CA 94105

Attention: Vehicle Service Contract Coordinator

1. Pursuant to California Insurance Code (CIC) section 12830(a), specimens of all VSCP forms that you intend to use in California. The CDI will be reviewing the forms in order to ensure they comply with CIC section 12800 (c), CIC sections 12820(b)(1)(2)(3)(A)(B)(C)(D)(E), (4) and (c), CIC sections 12825(a)(b)(c)(d) and 12850(a).

2. Either a copy of your VSCP license or your application. CIC section 12815(a).

3. Pursuant to CIC section 12830(a), a copy of the insurance policy that will insure your California vehicle service contracts. Please include a copy of the declaration page showing you as the insured, and showing the policy's effective date and expiration date. The Department will be reviewing the policy in order to ensure compliance with CIC sections 12830(a)(1)(2)(3), (b),(c) and (d).

4. If you will be contracting with another administrator, you will need to submit a copy of the contract.

5. Evidence that your back up insurer complies with CIC section 12830(a), in that it is rated B++ or better by A.M. Best.

6. Pursuant to CIC section 12830(a)(1), proof that the audited financial statement has been filed with the commissioner. The Department may contact you for further information if it is unable to determine whether the requirements of CIC section 12830(a) are met by your back up insurer.

7. A copy of any agreement between yourselves and the sellers. The Department will be reviewing the agreement in order to ensure compliance with CIC section 12850(b).

8. A statement about how your firm will ensure compliance with CIC sections 12800(f) and 12810.

9. Copies of all agreements that your firm or any of its officers, directors, or shareholders has with any insurer of the firm's service contract program, or with any general agent of that insurer. Please include the language, formula, or chart used to calculate the amount your company must remit to the insurer for various types and terms of service contracts.

10. Copies of any other agreements, besides those submitted in response to item 3, between your firm and any other company concerning the marketing, premium collection and remittance, reserving, claim administration, or any other aspect of the proposed California third party obligor service contract program.

11. The name, title, address and phone number of a contact person at your insurer. (Please provide the name of an insurer employee, not the name of a non-employee agent.)

12. The full, legal name, address, and phone number of each individual who will be marketing your firm's vehicle service contract program to California dealers. Please also provide the corporate name or fictitious business name of any company with which any of these individuals are associated or by whom they are employed.

13. The names, addresses, and phone numbers of all California dealers that currently issue your firm's vehicle service contracts.

14. The number of vehicle service contracts sold by your firm to California residents in the past twelve months.

15. The Web address (URL) of your firm's Web site, if you have a Web site.

All information and documents you provide pursuant to the requests in Paragraphs 4 though 15 will be kept in strict confidence, as required of the Commissioner and his staff by CIC Section 12919.

Please be aware that service contracts may only be sold by automobile dealers incidental to the business of selling or leasing automobiles. Consequently, service contracts may not be sold directly to consumers over the Internet or sold by financial institutions.

The Insurance Commissioner may require such other documents as will aid in determining whether the applicant meets the qualifications for a license.


Filing Requirements: Individual - Residents

  • Individual Application: Individual applicants must submit the Application for an Individual license, form LIC 441-9.
  • Fingerprint Impressions: Fingerprint impressions are required for unlicensed applicants.
  • Examination: Not required.
  • Additional Documents: The Insurance Commissioner may require such other documents as will aid in determining whether the applicant meets the qualifications for a license.
  • Fees - Individual Residents:
  • Licensing filing - two year term: $4,490
  • Fingerprint Processing: Review Fingerprint Processing link for fees.
  • Renewal Fee - two year term: $770


Filing Requirements: Business Entity - Residents

  • Business Entity Application: Any legal entity may qualify for a business entity license. Applicants must submit the Application for Business Entity license, form LIC 441-11.
  • Examination: Not required.
  • Additional Documents: The Insurance Commissioner may require such other documents as will aid in determining whether the applicant meets the qualifications for a license.
  • Fees - Business Entity Residents:
    • Licensing filing - two year term: $4,490
    • Renewal Fee - two year term: $770

Filing Requirements: Individual - Non-Residents

  • Individual applicants must submit the Individual Application license, form LIC 441-9.
  • Fingerprint Impressions: All applicants who submit an Individual Application, form LIC 441-9 will be required to file fingerprint impressions prior to submitting their application to the California Department of Insurance. The Non-Resident Applicants to File Fingerprint Impressions Web page lists the procedures on how to submit the fingerprint impressions.
  • Examination: Not required.
  • Additional Documents: The Insurance Commissioner may require such other documents as will aid in determining whether the applicant meets the qualifications for a license.
  • Fees - Individual Non-residents:
    • Licensing filing - two year term: $4,490
    • Fingerprint Processing: $58.30 - You may schedule your fingerprint impressions using CDI's contracted fingerprint vendor, Accurate Biometrics at (866) 361-9944 to find a fingerprint location near you to have your fingerprints taken. When you go to have your fingerprint impressions made, please bring with you a completed Live Scan Request, form LIC 442-39A. Please make check payable to Accurate Biometrics. The applicant may also pay by money order, cashier's check, personal check or VISA, MasterCard, American Express or Discover Card. Cash will not be accepted.
    • Renewal Fee - two year term: $770


Filing Requirements: Business Entity - Non-Residents

  • Business Entity Application: Any legal entity may qualify for a business entity license. Applicants must submit the Application for Business Entity license, form LIC 441-11.
  • Fees - Business Entity Non-residents: 
    • License filing - two year term: $4,490
    • Renewal Fee - two year term: $770
  • Additional Documents: The Insurance Commissioner may require such other documents as will aid in determining whether the applicant meets the qualifications for a license.

License Term:

The term of the first license begins the date the license is issued and ends the last day of that same calendar month two years later. All additional licenses are issued for the balance of the established term.


Renewal of License:

Renewal notification is e-mailed (eRenewal) to the e-mail address of record approximately 90 days prior to the expiration date of the license. If the reRenewal is not received, please complete the Application to Renew Individual License form LIC 448-29A or Application to Renew Business Entity License form LIC 448-29B, and mail the completed form to California Department of Insurance, PO Box 311, Sacramento, California 95812-0311.

  • All licensees that renew their licenses late will be required to file new company appointments. "Late" is defined as any renewal for which the requirements to renew are not met until after the expiration date of the previous license term.

Additional Information:

Federal law (Title 18 United States Code Section 1033) prohibits anyone who has been convicted of a felony involving dishonesty or a breach of trust from conducting the business of insurance unless they have obtained the written consent of the Insurance Commissioner. It is a violation of this statute to conduct business of insurance without the Commissioner's written consent. If you have been convicted of a felony involving dishonesty or a breach of trust then you must attach a copy of this consent. If you have not obtained this written consent you must do so by filing a 1033 Short Form Application for Written Consent prior to filing your application.

To obtain insurance licensing forms by mail, send e-mail request to: Producer Licensing Bureau.

To obtain insurance licensing information, you may phone Producer Licensing Bureau at (800) 967-9331.  

For information regarding documents to be sent to the "Legal Division, Auto Enforcement Bureau" you may contact the Vehicle Service Contract Coordinator at (415) 538-4159. 

All fees mailed to the Department must be addressed to:

Department of Insurance
P.O. Box 1139
Sacramento, CA 95812-1139

All filing fees submitted are not refundable, whether or not the application is acted upon or an exam taken.


LIC VSCP (04/2013)

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