Before you compare two service contracts, read the names. A contract often names more than one company, and each may hold a different job. The company on the sales call is not always the company that answers for a claim. Sorting those roles on paper takes a few minutes and tells you which questions to ask next.
The four roles
The seller is the business that sells the contract to you. It may be a dealer, a retailer, a home services company, or a website. The seller's name often appears in the largest type, and it is the name you will deal with at the point of sale.
The obligor, sometimes called the provider or issuer, is the company legally bound to pay for covered repair or service under the contract. Some contracts name an insurer for this role, and some name another regulated company. Look for a sentence that says which company is obligated, not a general statement that the contract is backed by someone.
The administrator handles the paperwork: taking claims, assigning repairers, and answering calls about claim status. The administrator may be a different company from the obligor. A claim sent to the administrator has not automatically been accepted by the obligor.
The repairer is the shop or technician who does the work. Some contracts let you choose any licensed repairer. Others name a network. The contract should say which applies, and what you must do to use a repairer outside that list.
Where the names usually appear
Check the cover page, the signature page, any summary or declarations page, and the sections on claims and cancellation. The seller may sign the sales agreement while the obligor appears only in the contract form itself. If a name appears in one place and is missing in another, ask which document controls.
Questions to ask before you sign
Ask the seller to identify, in writing, the obligor, the administrator, and the repairer network. Ask whether the obligor is licensed or regulated in the state where you live, and where that state publishes its rules. Ask who you call for a claim, who you call to cancel, and who you call to complain if neither works. Ask what happens to the contract if the seller stops doing business. Ask whether the answers you received match the printed contract.
What to compare
Put the four names for each offer side by side on one sheet. Two offers may look alike on the sales page, yet one may route claims through a different administrator, or depend on a repairer network you cannot reach near your home. Keep the sheet with the contract. You will need it when a claim is refused, when you move, or when you sell the unit or the home.
Checking the state side
State rules can speak to who may sell a contract and who must stand behind it, and those rules differ from state to state. This site publishes a page for each state that names the regulator, cites the statute or program, and says whether a roster is published. The Florida page shows how a state page is set out. Where a state page says this edition has not read the state's rules, treat that as an open item to confirm directly with the state.