ENROLLED HB 0721, Engrossed 1 2003 Legislature
   
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.