Florida Senate - 2005                        SENATOR AMENDMENT
    Bill No. CS for SB 2006, 1st Eng.
                        Barcode 731216
                            CHAMBER ACTION
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       04/28/2005 04:09 PM         .                    
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11  Senator Peaden moved the following amendment:
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13         Senate Amendment 
14         On page 4, line 26, through
15            page 5, line 2, delete those lines
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17  and insert:  
18         (b)  A service agreement company that maintains net
19  assets of at least $10 million and that annually files with
20  the office a financial statement audited in accordance with
21  generally accepted accounting principles may use either the
22  50-percent reserve or the contractual liability coverage for
23  specific blocks of new service agreements. For purposes of
24  this subsection, the term "specific blocks of new service
25  agreements" means the service agreements sold by a single
26  designated licensed salesperson. A service agreement company
27  must be able to distinguish how each individual service
28  agreement is covered. A service agreement company using the
29  50-percent premium reserve, as permitted under this
30  subsection, must obtain contractual liability insurance
31  coverage for any future deficits in the premium reserve
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    3:43 PM   04/27/05                             s2006e1b-02-1ab


    Florida Senate - 2005                        SENATOR AMENDMENT
    Bill No. CS for SB 2006, 1st Eng.
                        Barcode 731216
 1  account directly attributable to the specific blocks of new
 2  agreements written. Such a contractual liability insurance
 3  policy must be filed with the office. Such policies or
 4  endorsements to an existing policy must contain language
 5  evidencing that the contractual liability insurance policy
 6  shall pay claims arising out of such specific blocks of
 7  agreements if the service agreement company cannot or will not
 8  pay such claims. All contractual liability insurance policies
 9  issued to a service agreement company under this part must
10  cover all agreements issued during the term of the policy and,
11  for purposes of this section, the company must obtain and file
12  with the office endorsements to that policy identifying the
13  specific blocks of agreements not covered thereunder.
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    3:43 PM   04/27/05                             s2006e1b-02-1ab