OK SB780

Creates the Oklahoma Home Service Contract Act to establish a regulatory framework for home service contracts (home warranties) that cover repair, replacement, or maintenance of residential property due to defects, wear and tear, or power surges

Declares home service contracts are not insurance and exempts them from the Insurance Code, while requiring providers to register with the Insurance Commissioner and pay a $1,200 registration fee plus $2,250 Antifraud Assessment Fee every three years

Requires providers to maintain financial security through one of three options: funded reserves of at least 40% of gross fees plus a security deposit of at least $25,000; net worth of at least $25 million; or a reimbursement insurance policy covering 100% of claim exposure

Mandates service contracts include clear disclosures about the provider's name and address, purchase price, coverage limitations, cancellation terms, and whether obligations are backed by insurance or the provider's full faith and credit

Authorizes the Insurance Commissioner to examine providers, issue cease and desist orders, suspend registrations, and impose civil penalties up to $500 per violation and $10,000 aggregate for similar violations, with an effective date of November 1, 2011