Florida Senate - 2005                        SENATOR AMENDMENT
    Bill No. CS for SB 2006
                        Barcode 243070
                            CHAMBER ACTION
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       04/27/2005 02:18 PM         .                    
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11  Senator Peaden moved the following amendment:
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13         Senate Amendment 
14         On page 4, lines 23-30, delete those lines
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16  and insert:  
17         (b)  A service agreement company that maintains net
18  assets of at least $10 million and that annually files with
19  the office a financial statement audited in accordance with
20  generally accepted accounting principles may use either the
21  50-percent reserve or the contractual liability coverage for
22  specific blocks of new service agreements.  For purposes of
23  this subsection, the term "specific blocks of new service
24  agreements" means the service agreements sold by a single
25  designated licensed salesperson.  A service agreement company
26  must be able to distinguish how each individual service
27  agreement is covered. A service agreement company using the
28  50-percent premium reserve, as permitted under this
29  subsection, must obtain contractual liability insurance
30  coverage for any future deficits in the premium reserve
31  account directly attributable to the specific blocks of new
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    6:34 PM   04/26/05                             s2006c1b-02-e0a


    Florida Senate - 2005                        SENATOR AMENDMENT
    Bill No. CS for SB 2006
                        Barcode 243070
 1  agreements written. Such a contractual liability insurance
 2  policy must be filed with the office. Such policies or
 3  endorsements to an existing policy must contain language
 4  evidencing that the contractual liability insurance policy
 5  shall pay claims arising out of such specific blocks of
 6  agreements if the service agreement company cannot or will not
 7  pay such claims. All contractual liability insurance policies
 8  issued to a service agreement company under this part must
 9  cover all agreements issued during the term of the policy and,
10  for purposes of this section, the company must obtain and file
11  with the office endorsements to that policy identifying the
12  specific blocks of agreements not covered thereunder.
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    6:34 PM   04/26/05                             s2006c1b-02-e0a