| 1 | Representative Planas offered the following: |
| 2 |
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| 3 | Amendment to Senate Amendment (144988) (with title |
| 4 | amendments) |
| 5 | On page 1, line 20, through page 6, line 2, |
| 6 | remove: all of said lines |
| 7 |
|
| 8 | and insert: |
| 9 | (5) The penalty provisions in ss. 520.12 and 521.006, as |
| 10 | well as the statutory penalty minimum recovery of $500 in |
| 11 | subsection (1), do not apply to any violation of this part or |
| 12 | chapters 520 and 521 relating to or in connection with the |
| 13 | unauthorized or unregulated sale, prior to April 23, 2002, of a |
| 14 | vehicle protection product, contract, or agreement that provides |
| 15 | for payment of vehicle protection expenses, as defined in s. |
| 16 | 634.011(7)(b)1., or the failure to disclose or properly disclose |
| 17 | in a retail installment contract or motor vehicle lease |
| 18 | agreement prior to April 23, 2002, a vehicle protection product, |
| 19 | contract, or agreement that provides for payment of vehicle |
| 20 | protection expenses, if the sale of such product, contract, or |
| 21 | agreement was otherwise clearly disclosed to the consumer in |
| 22 | writing at the time of the purchase or lease; provided, however, |
| 23 | that for any such violation or failure to disclose or properly |
| 24 | disclose where the penalty provisions in ss. 520.12 and 521.006, |
| 25 | as well as the statutory penalty minimum recovery of $500 in |
| 26 | subsection (1), do not apply as a result of this subsection, |
| 27 | then the court shall award actual damages and costs, including a |
| 28 | reasonable attorney's fee. |
| 29 | Section 3. Section 634.3205, Florida Statutes, is created |
| 30 | to read: |
| 31 | 634.3205 Rebating; when allowed.-- |
| 32 | (1) No sales representative shall rebate any portion of |
| 33 | his or her commission except as follows: |
| 34 | (a) The rebate shall be available to all consumers in the |
| 35 | same actuarial class. |
| 36 | (b) The rebate shall be in accordance with a rebating |
| 37 | schedule filed by the sales representative with the home |
| 38 | warranty association issuing the home warranty to which the |
| 39 | rebate applies. The home warranty association shall maintain a |
| 40 | copy of all rebating schedules for a period of 3 years. |
| 41 | (c) The rebating schedule shall be uniformly applied in |
| 42 | that all consumers who purchase the same home warranty through |
| 43 | the sales representative for the same coverage receive the same |
| 44 | percentage rebate. |
| 45 | (d) The rebate schedule is prominently displayed in public |
| 46 | view in the sales representative's place of doing business and a |
| 47 | copy is available to consumers on request at no charge. |
| 48 | (e) The age, sex, place of residence, race, nationality, |
| 49 | ethnic origin, marital status, or occupation of the consumer is |
| 50 | not used in determining the percentage of the rebate or whether |
| 51 | a rebate is available. |
| 52 | (2) No rebate shall be withheld or limited in amount based |
| 53 | on factors that are unfairly discriminatory. |
| 54 | (3) No rebate shall be given which is not reflected on the |
| 55 | rebate schedule. |
| 56 | (4) No rebate shall be refused or granted based upon the |
| 57 | purchase or failure to purchase collateral business. |
| 58 | Section 4. Subsection (8) is added to section 634.406, |
| 59 | Florida Statutes, to read: |
| 60 | 634.406 Financial requirements.-- |
| 61 | (8) An association licensed under this part, and holding |
| 62 | no other license under part I or part II of chapter 634, is not |
| 63 | required to establish an unearned premium reserve or maintain |
| 64 | contractual liability insurance and may allow its premiums to |
| 65 | exceed the ratio to net assets limitation of this section if the |
| 66 | association complies with the following: |
| 67 | (a) The association or, if the association is a direct or |
| 68 | indirect wholly owned subsidiary of a parent corporation, its |
| 69 | parent corporation has, and maintains at all times, a minimum |
| 70 | net worth of at least $100 million and provides the office with |
| 71 | the following: |
| 72 | 1. A copy of the association's annual audited financial |
| 73 | statements or the audited consolidated financial statements of |
| 74 | the association's parent, prepared by an independent certified |
| 75 | public accountant in accordance with generally accepted |
| 76 | accounting principles, which clearly demonstrate the net worth |
| 77 | of the association or its parent corporation to be $100 million |
| 78 | and a quarterly written certification to the office that such |
| 79 | entity continues to maintain the net worth required under this |
| 80 | paragraph; and |
| 81 | 2. The association's or its parent corporation's Form 10- |
| 82 | K, Form 10-Q, or Form 20-F as filed with the United States |
| 83 | Securities and Exchange Commission or such other documents as |
| 84 | are required to be filed with a recognized stock exchange, which |
| 85 | shall be provided on a quarterly and annual basis within 10 days |
| 86 | after the last date each such report must be filed with the |
| 87 | Securities and Exchange Commission, the National Association of |
| 88 | Security Dealers Automated Quotation system, or other recognized |
| 89 | stock exchange. |
| 90 |
|
| 91 | Failure to timely file the documents required under this |
| 92 | paragraph may, at the discretion of the office, subject the |
| 93 | association to suspension or revocation of its license under |
| 94 | this part. An association or parent corporation demonstrating |
| 95 | compliance with subparagraph 1. and subparagraph 2. must |
| 96 | maintain outstanding debt obligations, if any, rated in the top |
| 97 | four rating categories by a recognized rating service. |
| 98 | (b) If the net worth of a parent corporation is used to |
| 99 | satisfy the net worth provisions of paragraph (a), the following |
| 100 | provisions must be met: |
| 101 | 1. The parent corporation must guarantee all service |
| 102 | warranty obligations of the association, wherever written, on a |
| 103 | form approved in advance by the office. No cancellation, |
| 104 | termination, or modification of the guarantee shall become |
| 105 | effective unless the parent corporation provides the office |
| 106 | written notice at least 90 days before the effective date of the |
| 107 | cancellation, termination, or modification and the office |
| 108 | approves the request in writing. Prior to the effective date of |
| 109 | cancellation, termination, or modification of the guarantee, the |
| 110 | association must demonstrate to the satisfaction of the office |
| 111 | compliance with all applicable provisions of this part, |
| 112 | including whether the association will meet the requirements of |
| 113 | this section by the purchase of contractual liability insurance, |
| 114 | establishing required reserves, or other method allowed under |
| 115 | this section. If the association or parent corporation does not |
| 116 | demonstrate to the satisfaction of the office compliance with |
| 117 | all applicable provisions of this part, it shall immediately |
| 118 | cease writing new and renewal business upon the effective date |
| 119 | of the cancellation, termination, or modification. |
| 120 | 2. The service warranty association must maintain at all |
| 121 | times net assets of at least $750,000. |
| 122 | Section 5. Section 634.4225, Florida Statutes, is created |
| 123 | to read: |
| 124 | 634.4225 Rebating; when allowed.-- |
| 125 | (1) No sales representative shall rebate any portion of |
| 126 | his or her commission except as follows: |
| 127 | (a) The rebate shall be available to all consumers in the |
| 128 | same actuarial class. |
| 129 | (b) The rebate shall be in accordance with a rebating |
| 130 | schedule filed by the sales representative with the association |
| 131 | issuing the service warranty to which the rebate applies. The |
| 132 | association shall maintain a copy of all rebating schedules for |
| 133 | a period of 3 years. |
| 134 | (c) The rebating schedule shall be uniformly applied in |
| 135 | that all consumers who purchase the same service warranty |
| 136 | through the sales representative for the same coverage receive |
| 137 | the same percentage rebate. |
| 138 | (d) The rebate schedule is prominently displayed in public |
| 139 | view in the sales representative's place of doing business and a |
| 140 | copy is available to consumers on request at no charge. |
| 141 | (e) The age, sex, place of residence, race, nationality, |
| 142 | ethnic origin, marital status, or occupation of the consumer is |
| 143 | not used in determining the percentage of the rebate or whether |
| 144 | a rebate is available. |
| 145 | (2) No rebate shall be withheld or limited in amount on |
| 146 | factors that are unfairly discriminatory. |
| 147 | (3) No rebate shall be given which is not reflected on the |
| 148 | rebate schedule. |
| 149 | (4) No rebate shall be refused or granted based upon the |
| 150 | purchase or failure to purchase collateral business. |
| 151 | Section 6. If any provision of this act or its application |
| 152 | to any person or circumstances is held invalid, the invalidity |
| 153 | shall not affect other provisions or applications of this act |
| 154 | which can be given effect without the invalid provision or |
| 155 | application, and to this end the provisions of this act are |
| 156 | declared severable. |
| 157 |
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| 158 | ================= T I T L E A M E N D M E N T ================= |
| 159 | On page 6, line 28, |
| 160 | remove: all of said line |
| 161 |
|
| 162 | and insert: providing retroactive applicability; providing |
| 163 | severability; providing |