SCRIP INSURANCE

If you have explored forming your own Service Contract Company (aka Service Contract Provider) you have likely noted the requirement from many states to address the financial guarantee you will utilize to "back" your service contracts. A financial guarantee is one of several elements of a Service Contract Process... 2) Providing a corporate guarantee from an entity (i.e. parent) with net equity generally in excess of $100 million... "A policy of insurance issued to a provider and pursuant to which the insurer agrees, for the benefit of the service contract holders, to discharge all of the obligations and liabilities of the provider under the terms of the service contracts in the event of non-performance by the provider. "All obligations and liabilities" include, but are not limited to, failure of the provider to perform under the service contract and the return of the unearned provider fee in the event of the provider's unwillingness or inability to reimburse the unearned provider..