Florida Senate - 2025                        COMMITTEE AMENDMENT
       Bill No. CS for SB 282
       
       
       
       
       
       
                                Ì103856<Î103856                         
       
                              LEGISLATIVE ACTION                        
                    Senate             .             House              
                  Comm: RCS            .                                
                  03/19/2025           .                                
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       The Committee on Rules (Truenow) recommended the following:
       
    1         Senate Amendment (with title amendment)
    2  
    3         Delete lines 51 - 102
    4  and insert:
    5         (e) The contractual liability insurance policy must either
    6  pay 100 percent of claims as they are incurred or pay 100
    7  percent of claims due in the event of the association’s failure
    8  to pay claims when due.
    9         Section 2. Subsections (3) and (4), paragraphs (b) and (c)
   10  of subsection (6), and paragraph (a) of subsection (7) of
   11  section 634.406, Florida Statutes, are amended to read:
   12         634.406 Financial requirements.—
   13         (3) An association will not be required to establish an
   14  unearned premium reserve if it has purchased contractual
   15  liability insurance which demonstrates to the satisfaction of
   16  the office that 100 percent of its claim exposure is covered by
   17  such policy or policies. The contractual liability insurance
   18  must shall be obtained from an insurer or insurers that hold
   19  holds a certificate of authority to do business within the
   20  state. For the purposes of this subsection, the contractual
   21  liability policy or policies must shall contain the following
   22  provisions:
   23         (a) In the event that the service warranty association does
   24  not fulfill its obligation under contracts issued in this state
   25  for any reason, including insolvency, bankruptcy, or
   26  dissolution, the contractual liability insurer or insurers will
   27  pay losses and unearned premium refunds under such plans
   28  directly to the person making a claim under the contract.
   29         (b) The insurer or insurers issuing the contractual
   30  liability policy or policies shall assume full responsibility
   31  for the administration of claims in the event of the inability
   32  of the association to do so.
   33         (c) The policy or policies may not be canceled or not
   34  renewed by either the insurer or insurers or the association
   35  unless 60 days’ written notice thereof has been given to the
   36  office by the insurer or insurers before the date of such
   37  cancellation or nonrenewal.
   38         (d) The contractual liability insurance policy or policies
   39  must shall insure all service warranty contracts which were
   40  issued while the policy or policies were was in effect
   41  regardless of whether or not the premium has been remitted to
   42  the insurer or insurers.
   43         (e) In the event the issuer or issuers of the contractual
   44  liability policy or policies are is fulfilling the service
   45  warranty covered by policy or policies and in the event the
   46  service warranty holder cancels the service warranty, it is the
   47  responsibility of the contractual liability policy issuer or
   48  issuers to effectuate a full refund of unearned premium to the
   49  consumer. This refund is shall be subject to the cancellation
   50  fee provisions of s. 634.414. The salesperson or agent shall
   51  refund to the contractual liability policy issuer or issuers the
   52  unearned pro rata commission.
   53         (f) An association may not use utilize both the unearned
   54  premium reserve and contractual liability insurance
   55  simultaneously. However, an association is shall be allowed to
   56  have contractual liability coverage on service warranties
   57  previously sold and sell new service warranties covered by the
   58  unearned premium reserve, and the converse of this is shall also
   59  be allowed. An association must be able to distinguish how each
   60  individual service warranty is covered.
   61         (g) The contractual liability insurance policy must either
   62  pay 100 percent of claims as they are incurred or pay 100
   63  percent of claims due in the event of the association’s failure
   64  to pay claims when due.
   65  
   66  ================= T I T L E  A M E N D M E N T ================
   67  And the title is amended as follows:
   68         Delete lines 3 - 4
   69  and insert:
   70         634.3077, F.S.; revising the requirements of
   71         contractual liability policies; amending s. 634.406,
   72         F.S.; revising the requirements of contractual
   73         liability policies; revising the circumstances under
   74         which