HB 1433

1	A bill to be entitled
2	An act relating to service warranty associations; amending
3	s. 634.406, F.S.; providing certain circumstances under
4	which a service warranty association is not required to
5	establish unearned premium reserve or maintain contractual
6	liability insurance and may allow its premiums to exceed a
7	certain limit; providing criteria; providing an effective
8	date.
9
10	Be It Enacted by the Legislature of the State of Florida:
11
12	Section 1.  Subsection (8) is added to section 634.406,
13	Florida Statutes, to read:
14	634.406  Financial requirements.--
15	(8)  An association licensed under this part is not
16	required to establish an unearned premium reserve or maintain
17	contractual liability insurance and may allow its premiums to
18	exceed the ratio to net assets limitation of this section if the
19	association is a wholly owned subsidiary of a parent corporation
20	which satisfies the following or the association satisfies the
21	following:
22	(a)  Is listed and traded on a recognized stock exchange,
23	is listed in the National Association of Security Dealers
24	Automated Quotation system and publicly traded in the over-the-
25	counter securities markets, is required to file Form 10-K, Form
26	10-Q, or Form 20-G with the United States Securities and
27	Exchange Commission, or whose American Depository Receipts are
28	listed on a recognized stock exchange and are publicly traded;
29	(b)  Maintains outstanding debt obligations, if any, rated
30	in the top four rating categories by a recognized rating
31	service;
32	(c)  Has, and maintains at all times, a minimum net worth
33	of at least $100,000,000 as evidenced by certified financial
34	statements prepared by an independent certified public
35	accountant in accordance with generally accepted accounting
36	principles; and
37	(d)  Is authorized to do business in this state.
38	Section 2.  This act shall take effect upon becoming a law.

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