Do motor vehicle dealers have to register as a Service Contract Provider?
It depends. If a motor vehicle dealer is only selling service contracts for a service contract provider then no registration is necessary. A motor vehicle dealer doesn’t have to register, if the dealer is: (1) Selling service contracts only on the vehicles he or she sells; (2) Licensed as a motor vehicle dealer pursuant to Subchapter D, Texas Motor Vehicle Commission; and (3) Covering his or her obligations under the service contract with reimbursement insurance. If a motor vehicle dealer is providing service contracts and doesn’t meet all the above criteria that dealer must register.
