LICENSING/REGISTRATION: Service Company
You do not need a service company permit if you are any of the following:
- A manufacturer of a product that issues warranties on the product.
- Motor vehicle manufacturers that pay claims for service contracts they sell.
- An affiliate of a product manufacturer that issues warranties or service contracts and that submits annual audited financial statements per ARS § 20-1095.02(A)(3).
- Companies that sell service contracts to persons other than a consumer (i.e. reseller).
- Companies that issue service contracts that cover only one the following types of items that the company sells or services:
- Appliances and/or electronic equipment;
- Residential heating, cooling or air conditioning systems;
- Mechanical equipment other than motor vehicles or their components.
Example: Acme Air Conditioning sells service contracts only on the AC units that they sell or service; their main business is selling or servicing AC units.
- Companies that, directly or through retailers, sell or service electronic personal communications devices and accessories (such as cell phones, tablets, etc.).
- Licensed residential contractors (or those exempt under ARS § 32-1121) who sell service contracts on the items, structures or improvements that they install, construct, or build.
- Companies issuing prepaid maintenance agreements that provide scheduled maintenance and do not include repair or replacement.
- Licensed motor vehicle dealers that sell motor vehicle service contract programs approved by the Department per ARS § 20-1095.06. The vehicle dealer must file its intent to sell contracts using Department Form E-801 per ARS § 20-1095.07.
ARS § 41-1030(G) requires most Arizona government agencies to prominently print the provisions of ARS § 41-1030(B), (D), (E) and (F) on all license applications. The following is the language in ARS § 41-1030(B), (D), (E) and (F):
B. An agency shall not base a licensing decision in whole or in part on a licensing requirement or condition that is not specifically authorized by statute, rule or state tribal gaming compact. A general grant of authority in statute does not constitute a basis for imposing a licensing requirement or condition unless a rule is made pursuant to that general grant of authority that specifically authorizes the requirement or condition.
D. This section may be enforced in a private civil action and relief may be awarded against the state. The court may award reasonable attorney fees, damages and all fees associated with the license application to a party that prevails in an action against the state for a violation of this section.
E. A state employee may not intentionally or knowingly violate this section. A violation of this section is cause for disciplinary action or dismissal pursuant to the agency’s adopted personnel policy.
F. This section does not abrogate the immunity provided by section 12-820.01 or 12-820.02.