OK SB2074

Amends the Service Warranty Insurance Act (36 O.S. 2001, Section 6607) to require insurers providing coverage for service warranty associations to maintain a B++ or better rating from A.M. Best Company, Inc.

Service warranty associations must maintain an unearned premium reserve of at least 25% of gross written premiums, plus a surety bond of at least $25,000 or 5% of gross premiums received less claims paid.

Associations can avoid reserve requirements by obtaining 100% claims exposure coverage from a licensed insurer meeting capital requirements of either $15 million or $10 million with specific premium-to-surplus ratios.

Repeals a duplicate version of Section 6607 created by Section 52, Chapter 176, O.S.L. 2009.

Declared an emergency measure, taking effect immediately upon passage and approval (passed Senate March 8, 2010; passed House April 19, 2010).