Texas Requirements for a VSC (DO & AO) Obligor

If a motor vehicle dealer is selling its own service contracts, and it is contractually and financially responsible for those contracts, then the motor vehicle dealer is a service contract provider, and must register with TDLR.

If a motor vehicle dealer is a service contract provider but meets all of the following qualifications, the motor vehicle dealer does not have to register with TDLR:

The dealer is selling service contracts only on the vehicles the dealer sells; AND The dealer is licensed as a motor vehicle dealer under Texas Occupations Code Chapter 2301 (Texas Motor Vehicle Commission); AND The dealer is covering the dealer’s financial obligations under the service contracts with reimbursement insurance.

Source: Texas Department of Licensing and Regulation

This is Subject to Change – You should visit the TDLR site to confirm current information.


Additional Texas Regulations for Service Contracts are available at:

Occupations Code, Title 8. Regulation of Environmental and Industrial Trades, Chapter 1304.  Service Contract Providers and Administrators – http://www.statutes.legis.state.tx.us/Docs/OC/htm/OC.1304.htm

Texas Administrative Code, Title 16 Economic Regulation, Part 4, Texas Department of Licensing and Regulation, Chapter 77, Service Contract Providers and Administrators – https://texreg.sos.state.tx.us/public/readtac$ext.ViewTAC?tac_view=4&ti=16&pt=4&ch=77&rl=Y

This is Subject to Change – No guarantees are provided.  You should always verify the current requirements by visiting the State web site, contacting the State or through an appropriate legal advisor.