20-1095.03. Qualifications for permit

A. The director shall not issue a permit to a service company unless all of the following conditions are met:

1. If the applicant is a corporation, the applicant is a solvent corporation incorporated under the laws of this state or another state, district, territory or possession of the United States.

2. The applicant furnishes proof as necessary to the director that the directors and management of the service company are competent and trustworthy and are capable of successfully managing the service company's affairs in compliance with law.

3. The applicant files cash, alternatives to cash or a surety bond as required by section 20-1095.04.

4. The applicant is in compliance and continues to be in compliance with all applicable laws.

5. The applicant pays the initial fee prescribed in section 20-167.

B. This article does not require the director to determine the actual financial condition or claims practices of any service company, motor vehicle dealer or service contract administrator. The approval of a service contract program or the issuance of a permit indicates only that the entity appears to be financially sound and to have satisfactory claims practices and that the director has no credible evidence to the contrary.

20-1095.03. Qualifications for permit

A. The director shall not issue a permit to a service company unless all of the following conditions are met:

1. If the applicant is a corporation, the applicant is a solvent corporation incorporated under the laws of this state or another state, district, territory or possession of the United States.

2. The applicant furnishes proof as necessary to the director that the directors and management of the service company are competent and trustworthy and are capable of successfully managing the service company's affairs in compliance with law.

3. The applicant files cash, alternatives to cash or a surety bond as required by section 20-1095.04.

4. The applicant is in compliance and continues to be in compliance with all applicable laws.

5. The applicant pays the initial fee prescribed in section 20-167.

B. This article does not require the director to determine the actual financial condition or claims practices of any service company, motor vehicle dealer or service contract administrator. The approval of a service contract program or the issuance of a permit indicates only that the entity appears to be financially sound and to have satisfactory claims practices and that the director has no credible evidence to the contrary.