SB1475 Summary: Service Warranty Act

• Creates the "Service Warranty Act" to establish licensure, financial, and conduct requirements for service warranty associations operating in Oklahoma under Insurance Commissioner oversight.

• Requires service warranty associations to obtain licenses (fee: $400 annually) and maintain minimum financial reserves (25% of gross written provider fees) or obtain qualifying insurance policies covering 100% of claim exposure.

• Defines service warranties, exclusions, and prohibited unfair or deceptive practices including misrepresentation, false advertising, improper claim handling, and discriminatory refusal to issue contracts.

• Establishes enforcement mechanisms including license suspension/revocation, administrative penalties (up to $10,000 per knowing violation), cease and desist orders, and injunctive relief authority.

• Makes service warranty contracts non-insurance products exempt from standard Insurance Code requirements; provides civil remedies to consumers for violations; effective November 1, 2012.