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FL H0605
Bill
Status
Introduced
11/21/2023
Primary Sponsor
Commerce Committee
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AI Summary
- Revises the definition of "guaranteed asset protection product" to allow it to also provide a benefit that waives a portion of, or credits toward, the purchase of a replacement motor vehicle, and caps administrative fee deductions from refunds at $75
- Creates the "Florida Vehicle Value Protection Agreements Act" (ss. 520.151–520.156), establishing a regulatory framework for agreements that provide benefits toward reducing a finance agreement deficiency balance or purchasing/leasing a replacement vehicle upon adverse events such as loss, theft, damage, or depreciation
- Requires vehicle value protection agreement providers to meet one of three financial security options: insure all agreements under a reimbursement policy, maintain a funded reserve account of at least 40% of gross consideration received (with a minimum $25,000 security deposit), or maintain a net worth or stockholders' equity of at least $100 million
- Mandates written disclosures in clear language for vehicle value protection agreements, including purchase price, eligibility requirements, exclusions, cancellation terms, a free-look period of at least 30 days for full refund, and a statement that credit terms may not be conditioned on purchasing the agreement
- Creates provisions for "excess wear and use waivers" on motor vehicle leases, allowing lessors to waive amounts due for excess wear, use, or mileage, with required disclosures and a maximum $75 administrative cancellation fee; classifies both vehicle value protection agreements and excess wear waivers as non-insurance products effective October 1, 2024
Legislative Description
Asset Protection Products
Last Action
Laid on Table
3/4/2024
Committee Referrals
Commerce Committee2/6/2024
State Administration & Technology Appropriations Subcommittee1/22/2024
Insurance And Banking Subcommittee11/30/2023
Full Bill Text
No bill text available