Senate Bill sb2414c2

    Florida Senate - 2003                    CS for CS for SB 2414

    By the Committees on Finance and Taxation; Banking and
    Insurance; and Senator Diaz de la Portilla




    314-2448-03

  1                      A bill to be entitled

  2         An act relating to warranty association

  3         regulation; amending ss. 634.031, 634.303, and

  4         634.403, F.S.; exempting affiliates of insurers

  5         from provisions regulating certain warranty

  6         associations, under certain circumstances;

  7         providing for nonapplication of the exemptions

  8         under certain circumstances; providing an

  9         effective date.

10  

11  Be It Enacted by the Legislature of the State of Florida:

12  

13         Section 1.  Subsection (5) is added to section 634.031,

14  Florida Statutes, to read:

15         634.031  License required.--

16         (5)  Any person that is an affiliate of a domestic

17  insurer as defined in chapter 624 is exempt from application

18  of this part if the person does not issue, or market or cause

19  to be marketed, motor vehicle service agreements to residents

20  of this state and does not administer motor vehicle service

21  agreements that were originally issued to residents of this

22  state. The domestic insurer or its wholly owned Florida

23  licensed insurer must be the direct obligor of all motor

24  vehicle service agreements issued by such affiliate or must

25  issue a contractual liability insurance policy to such

26  affiliate which meets the conditions described in s.

27  634.041(8)(b). If the Office of Insurance Regulation

28  determines, after notice and opportunity for a hearing, that a

29  person's intentional business practices do not comply with any

30  of the exemption requirements of this subsection, the person

31  shall be subject to this part.

                                  1

CODING: Words stricken are deletions; words underlined are additions.






    Florida Senate - 2003                    CS for CS for SB 2414
    314-2448-03




 1         Section 2.  Subsection (3) is added to section 634.303,

 2  Florida Statutes, to read:

 3         634.303  License required.--

 4         (3)  Any person that is an affiliate of a domestic

 5  insurer as defined in chapter 624 is exempt from application

 6  of this part if the person does not issue, or market or cause

 7  to be marketed, home warranties to residents of this state and

 8  does not administer home warranties that were originally

 9  issued to residents of this state. The domestic insurer or its

10  wholly owned Florida licensed insurer must be the direct

11  obligor of all home warranty service agreements issued by such

12  affiliate or must issue a contractual liability insurance

13  policy to such affiliate which meets the conditions described

14  in s. 634.3077(3). If the Office of Insurance Regulation

15  determines, after notice and opportunity for a hearing, that a

16  person's intentional business practices do not comply with any

17  of the exemption requirements of this subsection, the person

18  shall be subject to this part.

19         Section 3.  Subsection (4) is added to section 634.403,

20  Florida Statutes, to read:

21         634.403  License required.--

22         (4)  Any person that is an affiliate of a domestic

23  insurer as defined in chapter 624 is exempt from application

24  of this part if the person does not issue, or market or cause

25  to be marketed, service warranties to residents of this state

26  and does not administer service warranties that were

27  originally issued to residents of this state. The domestic

28  insurer or its wholly owned Florida licensed insurer must be

29  the direct obligor of all service warranty agreements issued

30  by such affiliate or must issue a contractual liability

31  insurance policy to such affiliate which meets the conditions

                                  2

CODING: Words stricken are deletions; words underlined are additions.






    Florida Senate - 2003                    CS for CS for SB 2414
    314-2448-03




 1  described in s. 634.406(3). If the Office of Insurance

 2  Regulation determines, after notice and opportunity for a

 3  hearing, that a person's intentional business practices do not

 4  comply with any of the exemption requirements of this

 5  subsection, the person shall be subject to this part.

 6         Section 4.  This act shall take effect upon becoming a

 7  law.

 8  

 9          STATEMENT OF SUBSTANTIAL CHANGES CONTAINED IN
                       COMMITTEE SUBSTITUTE FOR
10                            CS/SB 2414

11                                 

12  The committee substitute requires a domestic insurer or its
    wholly owned Florida licensed insurer to be the direct obligor
13  of all home warranty service agreements issued by the
    affiliate, or, to issue a contractual liability insurance
14  policy to the affiliate that meets the requirements of s.
    634.3077(3), F.S, (home warranty service agreements) instead
15  of s. 634.041(8)(b), F.S., (motor vehicle service agreements).

16  The committee substitute requires a domestic insurer or its
    wholly owned Florida licensed insurer to be the direct obligor
17  of all service warranty agreements issued by the affiliate,
    or, to issue a contractual liability insurance policy to the
18  affiliate that meets the requirements of s. 634.406(3), F.S,
    (service warranty agreements) instead of s. 634.041(8)(b),
19  F.S., (motor vehicle service agreements).

20  

21  

22  

23  

24  

25  

26  

27  

28  

29  

30  

31  

                                  3

CODING: Words stricken are deletions; words underlined are additions.