HB 0721, Engrossed 1 2003
1	A bill to be entitled
2	An act relating to warranty association regulation;
3	amending ss. 634.031, 634.303, and 634.403, F.S.;
4	exempting affiliates of insurers from provisions
5	regulating certain warranty associations, under certain
6	circumstances; requiring certain insurers to be the direct
7	obligor on certain agreements or warranties or issue a
8	contractual liability insurance policy meeting certain
9	requirements; providing for nonapplication of the
10	exemptions under certain circumstances; providing an
11	effective date.
12
13	Be It Enacted by the Legislature of the State of Florida:
14
15	Section 1. Subsection (5) is added to section 634.031,
16	Florida Statutes, to read:
17	634.031 License required.--
18	(5) Any person that is an affiliate of a domestic insurer
19	as defined in chapter 624 is exempt from application of this
20	part if the person does not issue, or market or cause to be
21	marketed, motor vehicle service agreements to residents of this
22	state and does not administer motor vehicle service agreements
23	that were originally issued to residents of this state. The
24	domestic insurer or its wholly owned Florida licensed insurer
25	must be the direct obligor of all motor vehicle service
26	agreements issued by such affiliate or must issue a contractual
27	liability insurance policy to such affiliate that meets the
28	conditions described in s. 634.041(8)(b). If the Office of
29	Insurance Regulation determines, after notice and opportunity
30	for a hearing, that a person’s intentional business practices do
31	not comply with any of the exemption requirements of this
32	subsection, the person shall be subject to this part.
33	Section 2. Subsection (3) is added to section 634.303,
34	Florida Statutes, to read:
35	634.303 License required.--
36	(3) Any person that is an affiliate of a domestic insurer
37	as defined in chapter 624 is exempt from application of this
38	part if the person does not issue, or market or cause to be
39	marketed, home warranties to residents of this state and does
40	not administer home warranties that were originally issued to
41	residents of this state. The domestic insurer or its wholly
42	owned Florida licensed insurer must be the direct obligor of all
43	home warranties issued by such affiliate or must issue a
44	contractual liability insurance policy to such affiliate that
45	meets the conditions described in s. 634.3077(3). If the Office
46	of Insurance Regulation determines, after notice and opportunity
47	for a hearing, that a person’s intentional business practices do
48	not comply with any of the exemption requirements of this
49	subsection, the person shall be subject to this part.
50	Section 3. Subsection (4) is added to section 634.403,
51	Florida Statutes, to read:
52	634.403 License required.--
53	(4) Any person that is an affiliate of a domestic insurer
54	as defined in chapter 624 is exempt from application of this
55	part if the person does not issue, or market or cause to be
56	marketed, service warranties to residents of this state and does
57	not administer service warranties that were originally issued to
58	residents of this state. The domestic insurer or its wholly
59	owned Florida licensed insurer must be the direct obligor of all
60	service warranties issued by such affiliate or must issue a
61	contractual liability insurance policy to such affiliate that
62	meets the conditions described in s. 634.406(3). If the Office
63	of Insurance Regulation determines, after notice and opportunity
64	for a hearing, that a person’s intentional business practices do
65	not comply with any of the exemption requirements of this
66	subsection, the person shall be subject to this part.
67	Section 4. This act shall take effect upon becoming a law.