| 1 | Representative(s) Berfield offered the following: |
| 2 |
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| 3 | Amendment (with title amendment) |
| 4 | Remove lines 120-127 and insert: |
| 5 | (b) A service agreement company that maintains net assets |
| 6 | of at least $10 million and that annually files with the office |
| 7 | a financial statement, audited using generally accepted |
| 8 | accounting principles, may use the 50-percent reserve or the |
| 9 | contractual liability coverage for specific blocks of new |
| 10 | service agreements. For purposes of this paragraph, the term |
| 11 | "specific blocks of new service agreements" means the service |
| 12 | agreements sold by a single designated licensed salesperson. A |
| 13 | service agreement company must be able to distinguish how each |
| 14 | individual service agreement is covered. A service agreement |
| 15 | company using the 50-percent reserve as permitted under this |
| 16 | paragraph must obtain contractual liability insurance coverage |
| 17 | for any future deficits in the premium reserve account directly |
| 18 | attributable to the specific blocks of new agreements written. |
| 19 | Such contractual liability insurance policy must be filed with |
| 20 | the office. Such policy or endorsements to an existing policy |
| 21 | must contain language evidencing that the contractual liability |
| 22 | insurance policy shall pay claims arising out of such specific |
| 23 | blocks of agreements if the service agreement company cannot or |
| 24 | will not pay such claims. Any contractual liability insurance |
| 25 | policy issued to a service agreement company under this part |
| 26 | must cover all agreements issued during the term of the policy |
| 27 | and, for purposes of this paragraph, the company must obtain and |
| 28 | file with the office endorsements to that policy identifying the |
| 29 | specific blocks of agreements not covered thereunder. |
| 30 |
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| 31 | ================ T I T L E A M E N D M E N T ============= |
| 32 | Remove line(s) 15 and insert: |
| 33 | providing a definition; providing contractual liability |
| 34 | insurance coverage requirements; amending s. 634.136, |
| 35 | F.S.; |