Senate Bill sb2366

    Florida Senate - 2004                                  SB 2366

    By Senator Dockery





    15-1896A-04                                             See HB

  1                      A bill to be entitled

  2         An act relating to service warranty

  3         associations; amending s. 634.406, F.S.;

  4         providing certain circumstances under which a

  5         service warranty association is not required to

  6         establish unearned premium reserve or maintain

  7         contractual liability insurance; providing

  8         criteria; providing an effective date.

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

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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 limitation provided in this section for a 7-to-1

19  ratio to net if the association is a wholly owned subsidiary

20  of a parent corporation which satisfies the following or the

21  association satisfies the following:

22         (a)  Is listed and traded on a recognized stock

23  exchange, is listed in the National Association of Security

24  Dealers Automated Quotation system and publicly traded in the

25  over-the-counter securities markets, is required to file Form

26  10-K, Form 10-Q, or Form 20-G with the United States

27  Securities and Exchange Commission, or whose American

28  Depository Receipts are listed on a recognized stock exchange

29  and are publicly traded;

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    Florida Senate - 2004                                  SB 2366
    15-1896A-04                                             See HB




 1         (b)  Maintains outstanding debt obligations, if any,

 2  rated in the top four rating categories by a recognized rating

 3  service;

 4         (c)  Has, and maintains at all times, a minimum net

 5  worth of at least $100 million as evidenced by certified

 6  financial statements prepared by an independent certified

 7  public accountant in accordance with generally accepted

 8  accounting principles; and

 9         (d)  Is authorized to do business in this state.

10         Section 2.  This act shall take effect upon becoming a

11  law.

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