Florida Senate - 2005 COMMITTEE AMENDMENT
Bill No. SB 2006
Barcode 310372
CHAMBER ACTION
Senate House
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11 The Committee on Banking and Insurance (Atwater) recommended
12 the following amendment:
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14 Senate Amendment (with title amendment)
15 On page 3, between lines 26 and 27,
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17 insert:
18 Section 2. Subsection (9) of section 634.041, Florida
19 Statutes, is amended to read:
20 634.041 Qualifications for license.--To qualify for
21 and hold a license to issue service agreements in this state,
22 a service agreement company must be in compliance with this
23 part, with applicable rules of the commission, with related
24 sections of the Florida Insurance Code, and with its charter
25 powers and must comply with the following:
26 (9)(a) In meeting the requirements of this part,
27 except as provided in paragraph (b), a service agreement
28 company may not utilize both the 50-percent reserve and
29 contractual liability insurance simultaneously. However, a
30 company may have contractual liability coverage on service
31 agreements previously sold and sell new service agreements
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Florida Senate - 2005 COMMITTEE AMENDMENT
Bill No. SB 2006
Barcode 310372
1 covered by the 50-percent reserve, and the converse of this is
2 also allowed. A service agreement company must be able to
3 distinguish how each individual service agreement is covered.
4 (b) A service agreement company that maintains net
5 assets of at least $7.5 million may use the 50-percent reserve
6 or the contractual liability coverage for specific blocks of
7 new service agreements. For purposes of this paragraph, the
8 term "specific blocks of new service agreements" means the
9 service agreements sold by a single designated licensed
10 salesperson. A service agreement must distinguish how each
11 individual service agreement is covered.
12 Section 3. Subsection (4) of section 634.136, Florida
13 Statutes, is amended to read:
14 634.136 Office records required.--Each licensed motor
15 vehicle service contract company, as a minimum requirement for
16 permanent office records, shall maintain:
17 (4) A detailed service agreement register, in
18 numerical order by service agreement number, of agreements in
19 force, which register shall include the following information:
20 service agreement number, date of issue, issuing dealer, name
21 of agreement holder, whether the agreement is covered by
22 contractual liability insurance or the unearned premium
23 reserve account, description of motor vehicle, service
24 agreement period and mileage, gross premium, commission to
25 salespersons, commission to dealer, and net premium.
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27 (Redesignate subsequent sections.)
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30 ================ T I T L E A M E N D M E N T ===============
31 And the title is amended as follows:
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Florida Senate - 2005 COMMITTEE AMENDMENT
Bill No. SB 2006
Barcode 310372
1 On page 1, lines 5-6, delete those lines
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3 and insert:
4 services that may be covered by a motor vehicle
5 service agreement; amending s. 634.041, F.S.;
6 revising requirements governing qualifications
7 for a license to issue such agreements;
8 providing for use of a 50-percent reserve or
9 contractual liability coverage by certain
10 service agreement companies; amending s.
11 634.136, F.S.; requiring a motor vehicle
12 service contract company to maintain additional
13 information relating to motor vehicle service
14 agreements; providing an effective date.
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