What functions may a service contract administrator perform?
An administrator may perform third-party administration as defined below on behalf of a service contract provider: (1) Perform or arrange the collection, maintenance, or disbursement of money to compensate any party for claims or repairs pursuant to a service conract; (2) Participate in processing or adjustment of claims arising under a service contract; (3) Maintianing records required by TX. Occ. Code, Chap 1304; or (4) Comply with requirements, other than financial security requirements of TX. Occ.Code, Chap 1304. The term does not include the performance of repairs, or clerical functions ancillary to the performance of repairs, by a repair facility that performs no other activities with respect to a service contract.
