{"data":{"id":"us-ca/bpc-9855.2","jurisdiction":"us-ca","citation":"BPC § 9855.2","heading":"","body":"(a) A service contract seller shall not issue, sell, or offer for sale a service contract unless the obligor under the service contract has complied with one of the following requirements:\n(1) Files with the director one of the following:\n(A) The most recent annual report on Form 10-K required by the Securities and Exchange Commission, reflecting a net worth greater than the sum of the deferred revenues from service contracts in force. If the service contractor is a foreign corporation that files a comparable audited financial statement with its home government or with the United States government, the director may deem that statement an acceptable substitute for Form 10-K.\n(B) The most recent audited financial statement reflecting a net worth of not less than one hundred million dollars ($100,000,000). The financial statement shall be certified by a certified public accountant who is licensed in the state where the service contract seller maintains its principal place of business or the seller’s state of domestic incorporation.\n(2) Obtains a service contract reimbursement insurance policy.\n(3) Sells service contracts that are administered by a service contract administrator who has obtained a service contract reimbursement insurance policy covering the seller’s service contracts.\n(4) Maintains and annually verifies to the director a funded account held in escrow equal to a minimum of 25 percent of the deferred revenues from the service contracts in force.\n(b) A service contract administrator shall not administer service contracts sold in this state unless a service contract reimbursement insurance policy covering these service contracts has been obtained.","path":["Business and Professions Code - BPC","DIVISION 3. PROFESSIONS AND VOCATIONS GENERALLY [5000. - 9998.12.]","CHAPTER 20. Electronic and Appliance Repair Dealers [9800. - 9874.5.]","ARTICLE 4.5. Service Contractors [9855. - 9855.9.]"],"source_url":"https://downloads.leginfo.legislature.ca.gov/pubinfo_2025.zip","current_through":"2026-09-13","vintage":"","retrieved_at":"2026-09-14T05:56:33Z","sha256":"78496bfbd54220a8aa93c106dd1b77cf55e6f816c037e1912248632f4ff5efa6","source_id":"us-ca","stale":false,"prev":"us-ca/bpc-9855.15","next":"us-ca/bpc-9855.3"},"notice":"GroundRules: Original legal text. Not legal advice."}