The bill amends several sections of Florida Statutes related to financial requirements for home and service warranty associations. It revises the conditions under which these associations are exempt from establishing unearned premium reserves, specifically when they have purchased contractual liability insurance that covers 100% of their claim exposure. The bill introduces new provisions that require the contractual liability policies to ensure that claims and unearned premiums are paid directly to claimants in the event of the association's insolvency. Additionally, it allows for the premiums of service warranty associations to exceed specified ratios under certain conditions, including maintaining a minimum net worth and obtaining insurance from financially capable insurers.

Furthermore, the bill mandates that service warranty contracts covering accidental damage must be backed by a contractual liability policy, with exceptions for associations not required to maintain unearned premium reserves. The amendments also clarify the responsibilities of insurers regarding claims administration and the cancellation of policies. The effective date for these changes is set for July 1, 2025.

Statutes affected:
H 367 Filed: 634.3077
H 367 c1: 634.3077
H 367 c2: 634.3077