Official Text and Analysis.

(1) Specifies the service contract and protection product guarantee provider's net worth threshold is a minimum standard. (2) Requires the service contract and protection product guarantee provider to demonstrate ability to pay its debts. (3) Specifies the Office of the Insurance Commissioner's authority to take action against a service contract and protection product guarantee provider in accordance with the chapter. (4) Requires service contract and protection product guarantee providers to use generally accepted accounting standards in regard to unearned contract fees or expected contract claims.