NC S651

Allows service contract providers to maintain a funded reserve account as an alternative to contractual liability insurance to cover obligations under service contracts issued in North Carolina.

Reserve account must contain no less than 40% of gross consideration received minus claims paid on all in-force service contracts.

Reserve account is subject to examination and review by the Commissioner upon request.

Maintains existing requirements for companies with audited net worth of $100,000,000, 10 years of service agreement history, and SEC filing or audited financial statements.

Effective July 1, 2011.