The 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 this insurance must be obtained from authorized insurers and includes provisions for claims administration, cancellation notices, and coverage for all home warranty contracts issued while the policy is in effect. Additionally, it introduces new requirements for the insurance policies, such as ensuring they either pay 100% of claims as they are incurred or pay 100% of claims due if the association fails to pay.

Furthermore, the bill establishes that all contracts providing coverage for accidental damage from handling must be covered by the specified contractual liability insurance, with an exception for certain associations. It also revises the financial requirements for warranty associations, including the conditions under which they can exceed the ratio of gross written premiums to net assets. The effective date for these changes is set for July 1, 2025.

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