Home Table of Contents

054.00.91 Appendix B. Service Contract Provider Bond Form.

AR ADC 054.00.91 Appendix BArkansas Administrative Code

West's Arkansas Administrative Code
Title 054. Insurance Department
Division 00.
Rule 91. Creating a Legal Framework Within Which Service Contracts Are Defined, Sold and Regulated
Ark. Admin. Code 054.00.91 Appendix B
054.00.91 Appendix B. Service Contract Provider Bond Form.
Currentness
ARKANSAS INSURANCE DEPARTMENT SERVICE CONTRACT PROVIDER BOND FORM
BOND NO. __________
KNOW ALL MEN BY THESE PRESENTS:
That we, __________, as Principal, a corporation organized under the laws of the State of __________, and __________, a corporation as Surety, organized and existing under the laws of the State of __________ and duly authorized to transact the business of surety in the State of Arkansas, are held and firmly bound unto the Commissioner of Insurance of the State of Arkansas in the sum of not less than five percent (5%) of the gross consideration received, less claims paid, on the sale of the service contract for all service contracts issued and in force, but not less than Twenty-Five Thousand Dollars ($25,000), for the benefit of any person referred to in the conditions of this bond for which payment, well and truly made, we hereby bind ourselves, our successors and assigns, jointly, severally and firmly by these presents.
The conditions of the above obligation are such that:
WHEREAS: The said Principal has applied to the Commissioner of Insurance of the State of Arkansas for authority as a service contract provider, and in accordance with the provisions of Arkansas Code Title 4 Chapter 114, as amended, is required to give a corporate surety bond for the benefit of any contract holder who may suffer loss resulting from fraud or dishonesty or insolvency or impairment or unwillingness to perform on the part of said Principal.
NOW THEREFORE, if the said Principal shall promptly pay, when due, all claims and obligations arising or occurring in this state by virtue of any bond or contract made by said Principal, and all amounts due the State of Arkansas, by virtue of any statute, and in all respects comply with Arkansas Code Title 4 Chapter 114 of the laws of said State, then this obligation shall become void, otherwise to remain in full force and effect.
The total aggregate liability under this bond is limited to the sum of $ __________.
This bond shall be deemed continuous in form and shall remain in full force and effect unless terminated or cancelled in a manner hereinafter provided.
1. By order of said Commissioner of Insurance; or
2. By the Surety delivering thirty (30) day written notice to the Arkansas Insurance Department that the bond will be canceled.
Such cancellation or termination shall not affect any liability incurred or accrued hereunder prior to the termination or cancellation of said bond by said Department of Insurance or prior to the termination of the thirty (30) day period for notice if terminated by Surety.
WITNESS our hands and seal this __________ day of __________, __________.
By: __________
(Principal)
By: __________
(Surety)
Current with amendments received through February 15, 2024. Some sections may be more current, see credit for details.
Ark. Admin. Code 054.00.91 Appendix B, AR ADC 054.00.91 Appendix B
End of Document