Louisiana Home Service Contract Provider
Louisiana Home Service Contract Provider A new law regulating the home service contract industry became effective January 1, 2010 . The new law requires registration of any home service contract provider operating in that state. To qualify as a home service contract provider, an entity must file its organizational documents (Articles of Incorporation, ByLaws) and demonstrate compliance with one of three financial responsibility requirements: insurance backing the service contract program; file a surety bond with the state?s Department of Insurance and maintain a reserve fund to pay future claims, or show evidence of having a net worth of at least $25 million. The law also establishes required disclosures in any service contract sold in the state and samples of such contracts are requested as part of the provider registration application filing.
