FL S0496

Authorizes electronic transmission of service agreements, home warranties, and service warranty contracts as an alternative to mailing or physical delivery, with electronic transmission constituting valid delivery.

Requires electronic transmission notices to inform warranty holders of their right to receive paper copies via United States mail and mandates paper copies be provided if holders opt out of electronic transmission.

Allows service warranty associations holding only a license under this part to exceed net assets premium ratios if they maintain at least $750,000 in net assets and use approved contractual liability insurance with either 100 percent claims coverage from an insurer with $100 million policyholder surplus or coverage complying with subsection (3) from an insurer with $200 million surplus.

Eliminates previous requirements for contractual liability policies to insure 100 percent of claims exposure, allowing partial coverage under specified conditions including direct beneficiary status to contract holders and insurer financial thresholds.

Sets July 1, 2014 as the effective date.