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 these insurance policies to ensure that in the event of the association's insolvency, the insurer will directly pay claims and unearned premiums to consumers. 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 appropriate insurance coverage.

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 such 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