HB 0721 2003
1	CHAMBER ACTION
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6	The Committee on Insurance recommends the following:
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8	Committee Substitute
9	Remove the entire bill and insert:
10	A bill to be entitled
11	An act relating to warranty association regulation;
12	amending ss. 634.031, 634.303, and 634.403, F.S.;
13	exempting affiliates of insurers from provisions
14	regulating certain warranty associations, under certain
15	circumstances; requiring certain insurers to be the direct
16	obligor on certain agreements or warranties or issue a
17	contractual liability insurance policy meeting certain
18	requirements; providing for nonapplication of the
19	exemptions under certain circumstances; providing an
20	effective date.
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22	Be It Enacted by the Legislature of the State of Florida:
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24	Section 1. Subsection (5) is added to section 634.031,
25	Florida Statutes, to read:
26	634.031 License required.--
27	(5) Any person that is an affiliate of a domestic insurer
28	as defined in chapter 624 is exempt from application of this
29	part if the person does not issue, or market or cause to be
30	marketed, motor vehicle service agreements to residents of this
31	state and does not administer motor vehicle service agreements
32	that were originally issued to residents of this state. The
33	domestic insurer or its wholly owned Florida licensed insurer
34	must be the direct obligor of all motor vehicle service
35	agreements issued by such affiliate or must issue a contractual
36	liability insurance policy to such affiliate that meets the
37	conditions described in s. 634.041(8)(b). If the Office of
38	Insurance Regulation determines, after notice and opportunity
39	for a hearing, that a person’s intentional business practices do
40	not comply with any of the exemption requirements of this
41	subsection, the person shall be subject to this part.
42	Section 2. Subsection (3) is added to section 634.303,
43	Florida Statutes, to read:
44	634.303 License required.--
45	(3) Any person that is an affiliate of a domestic insurer
46	as defined in chapter 624 is exempt from application of this
47	part if the person does not issue, or market or cause to be
48	marketed, home warranties to residents of this state and does
49	not administer home warranties that were originally issued to
50	residents of this state. The domestic insurer or its wholly
51	owned Florida licensed insurer must be the direct obligor of all
52	home warranties issued by such affiliate or must issue a
53	contractual liability insurance policy to such affiliate that
54	meets the conditions described in s. 634.3077(3). If the Office
55	of Insurance Regulation determines, after notice and opportunity
56	for a hearing, that a person’s intentional business practices do
57	not comply with any of the exemption requirements of this
58	subsection, the person shall be subject to this part.
59	Section 3. Subsection (4) is added to section 634.403,
60	Florida Statutes, to read:
61	634.403 License required.--
62	(4) Any person that is an affiliate of a domestic insurer
63	as defined in chapter 624 is exempt from application of this
64	part if the person does not issue, or market or cause to be
65	marketed, service warranties to residents of this state and does
66	not administer service warranties that were originally issued to
67	residents of this state. The domestic insurer or its wholly
68	owned Florida licensed insurer must be the direct obligor of all
69	service warranties issued by such affiliate or must issue a
70	contractual liability insurance policy to such affiliate that
71	meets the conditions described in s. 634.406(3). If the Office
72	of Insurance Regulation determines, after notice and opportunity
73	for a hearing, that a person’s intentional business practices do
74	not comply with any of the exemption requirements of this
75	subsection, the person shall be subject to this part.
76	Section 4. This act shall take effect upon becoming a law.