This bill amends several sections of Florida Statutes related to warranty associations, specifically focusing on the requirements for contractual liability insurance policies. It allows associations to avoid establishing unearned premium reserves if they purchase contractual liability insurance that covers 100% of their claim exposure. The bill specifies that such insurance must be obtained from authorized insurers and includes provisions for the insurer's responsibilities in case the association cannot fulfill its obligations. Notably, the language in the bill changes "shall" to "must" in several instances, emphasizing the mandatory nature of these requirements. Additionally, it introduces new provisions that require the insurance policy to either pay 100% of claims as they are incurred or ensure payment in the event of the association's failure to pay claims when due.

Furthermore, the bill outlines circumstances under which certain service warranty associations can exceed specified premium-to-net asset ratios and establishes requirements for associations that do not need to maintain unearned premium reserves or contractual liability insurance. It mandates that all contracts covering accidental damage from handling must be backed by the specified insurance policy unless the association is exempt from these requirements. The bill is set to take effect on July 1, 2025.

Statutes affected:
S 282 Filed: 634.3077
S 282 c1: 634.3077
S 282 c2: 634.3077