Amendment
Bill No. 0825

Amendment No. 133209

CHAMBER ACTION
Senate		House
.
.
.

---

---

1	Representative(s) Evers offered the following:
2
3	Amendment (with title amendment)
4	Remove everything after the enacting clause and insert:
5	Section 1.  Subsection (7) of section 634.011, Florida
6	Statutes, is amended to read:
7	634.011  Definitions.--As used in this part, the term:
8	(7)  "Motor vehicle service agreement" or "service
9	agreement" means any contract or agreement indemnifying the
10	service agreement holder for the motor vehicle listed on the
11	service agreement and arising out of the ownership, operation,
12	and use of the motor vehicle against loss caused by failure of
13	any mechanical or other component part, or any mechanical or
14	other component part that does not function as it was originally
15	intended; however, nothing in this part shall prohibit or affect
16	the giving, free of charge, of the usual performance guarantees
17	by manufacturers or dealers in connection with the sale of motor
18	vehicles. Transactions exempt under s. 624.125 are expressly
19	excluded from this definition and are exempt from the provisions
20	of this part. The term "motor vehicle service agreement"
21	includes any contract or agreement that provides:
22	(a)  For the coverage or protection defined in this
23	subsection and which is issued or provided in conjunction with
24	an additive product applied to the motor vehicle that is the
25	subject of such contract or agreement; or
26	(b)  For payment of vehicle protection expenses.
27	1.a.  "Vehicle protection expenses" means a preestablished
28	flat amount payable for the loss of or damage to a vehicle or
29	expenses incurred by the service agreement holder for loss or
30	damage to a covered vehicle, including, but not limited to,
31	applicable deductibles under a motor vehicle insurance policy;
32	temporary vehicle rental expenses; expenses for a replacement
33	vehicle that is at least the same year, make, and model of the
34	stolen motor vehicle; sales taxes or registration fees for a
35	replacement vehicle that is at least the same year, make, and
36	model of the stolen vehicle; or other incidental expenses
37	specified in the agreement.
38	b.  "Vehicle protection product" means a product or system
39	installed or applied to a motor vehicle or designed to prevent
40	the theft of the motor vehicle or assist in the recovery of the
41	stolen motor vehicle.
42	2.  Vehicle protection expenses shall be payable in the
43	event of loss or damage to the vehicle as a result of the
44	failure of the vehicle protection product to prevent the theft
45	of the motor vehicle or to assist in the recovery of the stolen
46	motor vehicle. Vehicle protection expenses covered under the
47	agreement shall be clearly stated in the service agreement form,
48	unless the agreement provides for the payment of a
49	preestablished flat amount, in which case the service agreement
50	form shall clearly identify such amount.
51	3.  Motor vehicle service agreements providing for the
52	payment of vehicle protection expenses shall either:
53	a.  Reimburse a service agreement holder for the following
54	expenses, at a minimum: deductibles applicable to comprehensive
55	coverage under the service agreement holder's motor vehicle
56	insurance policy; temporary vehicle rental expenses; sales taxes
57	and registration fees on a replacement vehicle that is at least
58	the same year, make, and model of the stolen motor vehicle; and
59	the difference between the benefits paid to the service
60	agreement holder for the stolen vehicle under the service
61	agreement holder's comprehensive coverage and the actual cost of
62	a replacement vehicle that is at least the same year, make, and
63	model of the stolen motor vehicle; or
64	b.  Pay a preestablished flat amount to the service
65	agreement holder.
66
67	Payments shall not duplicate any benefits or expenses paid to
68	the service agreement holder by the insurer providing
69	comprehensive coverage under a motor vehicle insurance policy
70	covering the stolen motor vehicle; however, the payment of
71	vehicle protection expenses at a preestablished flat amount of
72	$5,000 or less does not duplicate any benefits or expenses
73	payable under any comprehensive motor vehicle insurance policy;
74	or
75	(c)1.  For the payment for paintless dent-removal services
76	provided by a company whose primary business is providing such
77	services.
78	2.  The term "paintless dent-removal" means the process of
79	removing dents, dings, and creases, including hail damage, from
80	a vehicle without affecting the existing paint finish but does
81	not include services that involve the replacement of vehicle
82	body panels or sanding, bonding, or painting.
83	Section 2.  Subsection (9) of section 634.041, Florida
84	Statutes, is amended to read:
85	634.041  Qualifications for license.--To qualify for and
86	hold a license to issue service agreements in this state, a
87	service agreement company must be in compliance with this part,
88	with applicable rules of the commission, with related sections
89	of the Florida Insurance Code, and with its charter powers and
90	must comply with the following:
91	(9)(a)  In meeting the requirements of this part, except as
92	provided in paragraph (b), a service agreement company may not
93	utilize both the 50-percent reserve and contractual liability
94	insurance simultaneously. However, a company may have
95	contractual liability coverage on service agreements previously
96	sold and sell new service agreements covered by the 50-percent
97	reserve, and the converse of this is also allowed. A service
98	agreement company must be able to distinguish how each
99	individual service agreement is covered.
100	(b)  A service agreement company that maintains net assets
101	of at least $7.5 million may use the 50-percent reserve or the
102	contractual liability coverage for specific blocks of new
103	service agreements. For purposes of this paragraph, the term
104	"specific blocks of new service agreements" means the service
105	agreements sold by a single designated licensed salesperson. A
106	service agreement must distinguish how each individual service
107	agreement is covered.
108	Section 3.  Subsection (4) of section 634.136, Florida
109	Statutes, is amended to read:
110	634.136  Office records required.--Each licensed motor
111	vehicle service contract company, as a minimum requirement for
112	permanent office records, shall maintain:
113	(4)  A detailed service agreement register, in numerical
114	order by service agreement number, of agreements in force, which
115	register shall include the following information: service
116	agreement number, date of issue, issuing dealer, name of
117	agreement holder, whether the agreement is covered by
118	contractual liability insurance or the unearned premium reserve
119	account, description of motor vehicle, service agreement period
120	and mileage, gross premium, commission to salespersons,
121	commission to dealer, and net premium.
122	Section 4.  This act shall take effect July 1, 2005.
123
124	================= T I T L E  A M E N D M E N T =================
125	Remove the entire title and insert:
126	A bill to be entitled
127	An act relating to motor vehicle service agreements;
128	amending s. 634.011, F.S.; including paintless dent-
129	removal in the services that may be covered by a motor
130	vehicle service agreement; amending s. 634.041, F.S.;
131	revising requirements governing qualifications for a
132	license to issue such agreements; providing for use of a
133	50-percent reserve or contractual liability coverage by
134	certain service agreement companies; amending s. 634.136,
135	F.S.; requiring a motor vehicle service contract company
136	to maintain additional information relating to motor
137	vehicle service agreements; providing an effective date.

CODING: Words stricken are deletions; words underlined are additions.