This operational checklist helps a TPA prepare a program for review. It is not a legal approval or a complete statement of every state's requirements. Use the state compliance source guide to begin jurisdiction research, and have counsel approve the contract and operating rules.
1. Identify Each Legal Role
Record the contractual provider or obligor, administrator, seller, reimbursement insurer, and any parent company relied on for financial backing. The entity that performs administration may differ from the entity responsible to the contract holder. Assign an owner for each registration, filing, and renewal deadline.
2. Maintain a State Review Matrix
For every state where you plan to sell, record the applicable contract category, statute, regulator, registration status, financial security route, required disclosures, cancellation rules, and date checked. Link the actual source and retain the approved contract version. A rule for home warranties may differ from a motor vehicle service agreement rule.
| Record | Evidence to retain | Owner |
|---|---|---|
| Entity and product classification | Legal review and statutory definitions | Legal |
| Registration and financial security | Regulator confirmation, filings, and insurance or reserve documents | Compliance and finance |
| Contract terms | Approved state-specific version and effective date | Legal and product |
| Operating controls | Test records for cancellations, refunds, notices, and reporting | Operations |
3. Test the Contract Lifecycle
Before launch, test a sale, contract delivery, cancellation before any claim, cancellation after a paid claim, an address or vehicle change, and a claim submitted near the coverage end date. Use the counsel-approved rules for fees, refunds, timing, and notices. Retain the input, rule version, result, and approval for each case.
4. Reconcile Financial Records
Map premium or contract consideration, claims paid, cancellations, refunds, commissions, and fees to the financial security and reporting requirements of the chosen jurisdiction and backing route. Have finance verify the calculation against the primary rule. Do not reuse a reserve percentage from another product category or state.
5. Assign Change and Renewal Controls
Record registration renewal dates and monitor primary regulator notices. Re-review a state when contract terms, legal entities, financial backing, selling channels, or statutory requirements change. Keep historical versions so a later claim can be evaluated under the terms that applied at sale.
Primary Sources to Start With
- Florida Chapter 634: Part I concerns motor vehicle service agreements; Part II concerns home warranties.
- Texas TDLR service contract laws and rules: classify the product and entity before selecting a financial security route.
- New York Insurance Law §7903: review the applicable financial backing alternatives and conditions.
Sources checked September 30, 2026. Keep an individual review record for every sales jurisdiction.
Evaluate Your Administration Workflow
WarrantyHub can help maintain contract, claim, payment, and cancellation records. Confirm the fields, exports, and integration scope needed for your approved controls in an automotive TPA demo. Software configuration does not establish legal compliance.