Vehicle Protection Product (VPP) Registration
Vehicle Protection Product Act
Statutes: 36 O.S. § 6650 – 6661
Disclaimer: The following is an overview of the laws pertaining to this license type. Refer to the OSCN webpage to research all the statutes pertaining to this license type.
Definitions 36 O.S. § 6651
“Vehicle protection product” means a vehicle protection device, system, or service that:
- is installed on or applied to a vehicle,
- is designed to prevent loss or damage to a vehicle from a specific cause, and
- includes a written warranty.
For purposes of this section, the term vehicle protection product shall include alarm systems, body part marking products, steering locks, window etch products, pedal and ignition locks, fuel and ignition kill switches, and electronic, radio and satellite tracking devices.
“Vehicle protection product warranty” or “warranty” means a written agreement by a warrantor that provides if the vehicle protection product fails to prevent loss or damage to a vehicle from a specific cause, that the warrantor will pay to or on behalf of the warranty holder specified incidental costs as a result of the failure of the vehicle protection product to perform pursuant to the terms of the warranty.
“Vehicle protection product warrantor” or “warrantor” means a person who is contractually obligated to the warranty holder under the terms of the vehicle protection product warranty agreement. Warrantor does not include an authorized insurer providing a warranty reimbursement insurance policy.
“Warranty holder” means a person who purchases a vehicle protection product or who is a permitted transferee.
Registration Requirements 36 § 6653
$200 annual fee
Cycle – registration expires on July 15th following the date of issuance.
VPP Warrantor registration records shall be filed annually and shall be updated within thirty (30) days of any change. The registration records shall contain the following information:
- Current License # (renewal only)
- Legal business name as it appears on the state organization of incorporation documents
- Any fictitious names under which the warrantor does business in the state
- Principal office addresses
- Telephone numbers
- Name and address of the warrantor’s agent for service of process in the state if other than the warrantor
- Names of the warrantor’s executive officer or officers directly responsible for the warrantor’s vehicle protection product business
- Name, address, and telephone number of any administrators designated by the warrantor to be responsible for the administration of vehicle protection product warranties in this state
- A copy of the warranty reimbursement insurance policy or policies or other financial information required (details are below).
- A statement indicating under which provision of this act the warrantor qualified to do business in this state as a warrantor (details are below).
- Consumer Complaints address and contact.
Requirements for Sale or Offer of Sale of Vehicle Protection Product 36 § 6654
No vehicle protection product shall be sold or offered for sale in this state unless the warrantor meets the conditions specified in option 1 or 2 below:
Option 1 – Reimbursement Policy Required Provisions 36 O.S. § 6654(1) and 6655 – The vehicle protection product warrantor is insured under a warranty reimbursement policy issued by an insurer authorized to do business in this state which provides that. The insurer will pay to, or on behalf of, the warrantor one hundred percent (100%) of all sums that the warrantor is legally obligated to pay according to the warrantor’s contractual obligations under the warrantor’s vehicle protection product warranty, provides the following requirements. The following policy provisions are required:
- The policy states that the issuer of the policy shall reimburse or pay on behalf of the vehicle protection product warrantor all covered sums which the warrantor is legally obligated to pay or shall provide all service that the warrantor is legally obligated to perform according to the warrantor’s contractual obligations under the provisions of the insured warranties issued by the warrantor.
- The policy states that in the event payment due under the terms of the warranty is not provided by the warrantor within sixty (60) days after proof of loss has been filed according to the terms of the warranty by the warranty holder, the warranty holder may file directly with the warranty reimbursement insurance company for reimbursement.
- The policy provides that a warranty reimbursement insurance company that insures a warranty shall be deemed to have received payment of the premium if the warranty holder paid for the vehicle protection product and the insurer’s liability under the policy shall not be reduced or relieved by a failure of the warrantor, for any reason, to report the issuance of a warranty to the insurer.
- The policy has the following provisions regarding cancellation of the policy:
- the issuer of a reimbursement insurance policy shall not cancel such policy until a notice of cancellation in writing has been mailed or delivered to the Insurance Commissioner and each insured warrantor,
- the cancellation of a reimbursement insurance policy shall not reduce the issuer’s responsibility for vehicle protection products sold prior to the date of cancellation, and
- in the event an insurer cancels a policy that a warrantor has filed with the Commissioner, the warrantor shall do either of the following:
- file a copy of a new policy with the Commissioner, before the termination of the prior policy, providing no lapse in coverage following the termination of the prior policy, and
- discontinue offering warranties as of the termination date of the policy until a new policy becomes effective and is accepted by the Commissioner.
Option 2 – Net Worth –The vehicle protection product warrantor, or its parent company maintains a net worth or stockholders’ equity of Fifty Million Dollars ($50,000,000.00).
- Form 10-K or Form 20-F filed with the Securities and Exchange Commission within Form 10-K or Form 20-F filed with the Securities and Exchange Commission within the last calendar year or, if the warrantor does not file with the Securities and Exchange Commission, or;
- If warrantor does not file with the Securities and Exchange Commission, a copy of the warrantor or the warrantor’s parent company’s audited financial statements that shows a net worth of the warrantor or its parent company of at least Fifty Million Dollars ($50,000,000.00).
If the warrantor’s parent company’s Form 10-K, Form 20-F, or audited financial statements are filed to meet the warrantor’s financial stability requirement:
A copy of the guarantee agreement between the parent company and the warrantor or other documentation deemed acceptable by the Commissioner showing that the parent company has agreed to guarantee the obligations relating to warranties issued by the warrantor in this state.
An organization chart is required if meeting the minimum net worth requirements using the warrantor’s parent company’s financials.
Records Concerning Regulated Transactions 36 O.S. § 6658
All vehicle protection product warrantors shall keep accurate accounts, books, and records concerning transactions regulated under the Vehicle Protection Product Act.
A vehicle protection product warrantor’s accounts, books, and records shall include:
- Copies of all vehicle protection product warranties;
- The name and address of each warranty holder; and
- The dates, amounts, and descriptions of all receipts, claims, and expenditures.
A vehicle protection product warrantor shall retain all required accounts, books, and records pertaining to each warranty holder for at least three (3) years after the specified period of coverage has expired. A warrantor discontinuing business in this state shall maintain its records until it furnishes the Insurance Commissioner satisfactory proof that the warrantor has discharged all obligations to warranty holders in this state.
Vehicle protection product warrantors shall make all accounts, books, and records concerning transactions regulated under the Vehicle Protection Product Act available to the Commissioner for examination.
Enforcement – Penalties 36 § 6659
The Commissioner may take action that is necessary or appropriate to enforce the provisions of the Vehicle Protection Product Act and the Commissioner’s rules and orders and to protect warranty holders in this state. If a warrantor engages in a pattern or practice of conduct that violates the Vehicle Protection Product Act and that the Commissioner reasonably believes threatens to render the warrantor insolvent or cause irreparable loss or injury to the property or business of any person or company located in this state, the Commissioner may:
- Issue an order directed to that warrantor to cease and desist from engaging in further acts, practices, or transactions that are causing the conduct;
- Issue an order prohibiting that warrantor from selling or offering for sale vehicle protection products in violation of the Vehicle Protection Product Act;
- Issue an order imposing a civil penalty on that warrantor; or
- Issue any combination of the foregoing, as applicable.
A person who is found to have violated provisions of the Vehicle Protection Product Act or orders or rules of the Commissioner may be ordered to pay to the Commissioner a civil penalty in an amount, determined by the Commissioner, of not more than Five Hundred Dollars ($500.00) per violation and not more than Ten Thousand Dollars ($10,000.00) in the aggregate for all violations of a similar nature. For purposes of this section, violations shall be of a similar nature if the violation consists of the same or similar course of conduct, action, or practice, irrespective of the number of times the conduct, action, or practice that is determined to be a violation of the Vehicle Protection Product Act occurred.