AR HB1770

Repeals existing Arkansas Code Title 4, Chapter 114 (Service Contracts Act) and establishes a new Arkansas Service Contracts Act under Title 23, Chapter 66 as a subchapter.

Transfers regulation of service contracts from previous framework to the Insurance Commissioner, who must review and approve service contracts offered in the state.

Requires providers to register with the Insurance Commissioner ($200 initial and annual fee), establish a business location in Arkansas with an in-state representative, and obtain commissioner approval before selling contracts.

Mandates providers maintain financial security through one of three options: reimbursement insurance policy with $15 million minimum surplus, 40% funded reserve account plus $25,000 security deposit, or $100 million net worth with parental guarantee.

Establishes consumer protections including clear contract disclosures, 20-day free-look period for returns with full refunds if no claims made, 10% monthly penalty on refunds not paid within 45 days, and right to claim unearned provider fees.