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 do so.

Furthermore, the bill outlines circumstances under which certain service warranty associations can exceed specified premium-to-net asset ratios without needing to maintain unearned premium reserves or contractual liability insurance. It mandates that contracts covering accidental damage from handling must be backed by the specified insurance policies unless the association is exempt from these requirements. The effective date for the bill 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