1 | A bill to be entitled |
2 | An act relating to motor vehicle warranty associations; |
3 | amending s. 628.4615, F.S.; conforming a cross-reference; |
4 | amending s. 634.011, F.S.; defining the term "motor |
5 | vehicle manufacturer"; amending s. 634.023, F.S.; |
6 | exempting certain motor vehicle manufacturer service |
7 | agreements from certain provisions of law relating to |
8 | motor vehicle service agreement companies; deleting a |
9 | provision relating to legislative intent; creating s. |
10 | 634.092, F.S.; authorizing the office to prohibit motor |
11 | vehicle manufacturers from issuing, selling, or |
12 | administering motor vehicle service agreements under |
13 | certain circumstances; authorizing the office to issue an |
14 | order suspending the authority of a motor vehicle |
15 | manufacture from issuing, selling, or administering motor |
16 | vehicle service agreements under certain circumstances; |
17 | amending s. 634.137, F.S.; authorizing the Office of |
18 | Insurance Regulation to develop an abbreviated form for |
19 | statistical reporting of sales of service agreements by |
20 | motor vehicle manufacturers in lieu of certain other |
21 | financial reports; amending s. 634.271, F.S.; conforming a |
22 | cross-reference; amending s. 634.4165, F.S.; revising |
23 | criteria for a required detailed warranty register of |
24 | warranties in force; providing an effective date. |
25 |
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26 | Be It Enacted by the Legislature of the State of Florida: |
27 |
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28 | Section 1. Paragraph (a) of subsection (1) of section |
29 | 628.4615, Florida Statutes, is amended to read: |
30 | 628.4615 Specialty insurers; acquisition of controlling |
31 | stock, ownership interest, assets, or control; merger or |
32 | consolidation.-- |
33 | (1) For the purposes of this section, the term "specialty |
34 | insurer" means any person holding a license or certificate of |
35 | authority as: |
36 | (a) A motor vehicle service agreement company authorized |
37 | to issue motor vehicle service agreements as those terms are |
38 | defined in s. 634.011(7) and (8); |
39 | Section 2. Subsections (7) through (16) of section |
40 | 634.011, Florida Statutes, are renumbered as subsections (8) |
41 | through (17), respectively, and a new subsection (7) is added to |
42 | that section to read: |
43 | 634.011 Definitions.--As used in this part, the term: |
44 | (7) "Motor vehicle manufacturer" means an entity that: |
45 | (a) Manufactures or produces motor vehicles and sells |
46 | motor vehicles under its own name or label; |
47 | (b) Is a majority owned subsidiary of an entity that |
48 | manufactures or produces motor vehicles; |
49 | (c) Is a corporation which owns 100 percent of an entity |
50 | that manufactures or produces motor vehicles; |
51 | (d) Does not manufacture or produce motor vehicles but |
52 | sells motor vehicles under the trade name or label of another |
53 | entity that manufactures or produces motor vehicles; |
54 | (e) Manufactures or produces motor vehicles and sells such |
55 | motor vehicles under the trade name or label of another entity |
56 | that manufactures or produces motor vehicles; or |
57 | (f) Does not manufacture or produce motor vehicles but, |
58 | pursuant to a written contract, licenses the use of its trade |
59 | name or label to another entity that manufactures or produces |
60 | motor vehicles that sells motor vehicles under the licensor's |
61 | trade name or label. |
62 | Section 3. Section 634.023, Florida Statutes, is amended |
63 | to read: |
64 | 634.023 Part exclusive; applicability of other laws.-- |
65 | (1) Except as provided in this part, motor vehicle service |
66 | agreement companies shall be governed by the provisions of this |
67 | part and shall be exempt from all other provisions of the |
68 | Florida Insurance Code. |
69 | (2) A motor vehicle manufacturer's service agreements on |
70 | the motor vehicle manufacturer's products need not comply with |
71 | s. 634.031, s. 634.041, s. 634.044, s. 634.052, s. 634.053, s. |
72 | 634.061, s. 634.071, or s. 634.081. The provisions of chapter |
73 | 85-321, Laws of Florida, which amended provisions of this part |
74 | shall be construed as clarifying legislative intent as to the |
75 | status of persons regulated by the part as insurers. |
76 | Section 4. Section 634.092, Florida Statutes, is created |
77 | to read: |
78 | 634.092 Suspension or revocation; motor vehicle |
79 | manufacturer.-- |
80 | (1) The office, in its discretion, may prohibit a motor |
81 | vehicle manufacturer from engaging in the business of issuing, |
82 | selling, or administering motor vehicle service agreements in |
83 | this state if the office finds the company has violated any |
84 | lawful order of the office or any provision of this part. |
85 | (2) The office may issue an order prohibiting or |
86 | suspending the authority of a motor vehicle manufacturer to |
87 | issue, administer, or sell service agreements if the office |
88 | finds the company in violation of s. 634.081(2)(b)-(e), (g), or |
89 | (h) or (3). |
90 | Section 5. Subsection (6) is added to section 634.137, |
91 | Florida Statutes, to read: |
92 | 634.137 Financial and statistical reporting |
93 | requirements.-- |
94 | (6) The office may develop by rule an abbreviated form for |
95 | statistical reporting sales of service agreements in this state |
96 | by motor vehicle manufacturers to submit in lieu of the |
97 | financial reports required in subsections (1) and (2). |
98 | Section 6. Subsection (5) of section 634.271, Florida |
99 | Statutes, is amended to read: |
100 | 634.271 Civil remedy.-- |
101 | (5) The penalty provisions in ss. 520.12 and 521.006, as |
102 | well as the statutory penalty in subsection (1), do not apply to |
103 | any violation of this part or chapters 520 and 521 relating to |
104 | or in connection with the sale or failure to disclose in a |
105 | retail installment contract or lease, prior to April 23, 2002, |
106 | of a vehicle protection product, or contract or agreement that |
107 | provides for payment of vehicle protection expenses, as defined |
108 | in s. 634.011(8)(7)(b)1., so long as the sale of such product, |
109 | contract, or agreement was otherwise disclosed to the consumer |
110 | in writing at the time of the purchase or lease. However, in the |
111 | event of a violation for which such statutory penalties do not |
112 | apply, the court shall award actual damages and costs, including |
113 | reasonable attorney's fees. Nothing in this subsection shall be |
114 | construed to require the application of the referenced statutory |
115 | penalty provisions where this subsection is not applicable. |
116 | Section 7. Subsection (2) of section 634.4165, Florida |
117 | Statutes, is amended to read: |
118 | 634.4165 Office records required.--As a minimum |
119 | requirement for permanent office records, each licensed service |
120 | warranty association shall maintain: |
121 | (2) A detailed warranty register of warranties in force, |
122 | by unique identifier. The register shall include the unique |
123 | identifier, date of issue, issuing sales representative, name of |
124 | warranty holder and the, location of the property to the extent |
125 | the name and address have been furnished by the warranty holder, |
126 | warranty period, gross premium, commission to sales |
127 | representative, and net premium. |
128 | Section 8. This act shall take effect July 1, 2008. |