Licensing/Registration: Service Company

You do not need a service company permit if you are any of the following:

  1. A manufacturer of a product that issues warranties on the product.
  2. Motor vehicle manufacturers that pay claims for service contracts they sell.
  3. 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).
  4. Companies that sell service contracts to persons other than a consumer (i.e. reseller).
  5. Companies that issue service contracts that cover only one the following types of items that the company sells or services:
    1. Appliances and/or electronic equipment;
    2. Residential heating, cooling or air conditioning systems;
    3. Mechanical equipment is 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.

  6. Companies that, directly or through retailers, sell or service electronic personal communications devices and accessories (such as cell phones, tablets, etc.).
  7. 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.
  8. Companies issuing prepaid maintenance agreements that provide scheduled maintenance and do not include repair or replacement.
  9. 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.

Licensing/Registration: Service Company