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FL S0282
Bill
AI Summary
- Amends Florida law (ss. 634.3077, 634.406, 634.414) to allow home warranty and service warranty associations to obtain contractual liability insurance from multiple insurers rather than a single insurer, updating references throughout to "insurer or insurers" and "policy or policies"
- Adds a new requirement that contractual liability insurance policies must either pay 100 percent of claims as they are incurred or pay 100 percent of claims due in the event the association fails to pay claims when due
- Requires that all service warranty contracts including coverage for accidental damage from handling be covered by a contractual liability insurance policy, unless issued by an association exempt from unearned premium reserve and contractual liability insurance requirements under s. 634.406(7)
- Maintains existing financial thresholds for associations seeking to exceed the 7-to-1 gross written premiums-to-net-assets ratio, including minimum net assets of $2.5 million for the association and $100 million policyholder surplus with an "A" or higher A.M. Best rating for the insurer(s)
- Takes effect July 1, 2025
Legislative Description
Warranty Associations
Last Action
Chapter No. 2025-160
6/23/2025
Committee Referrals
Rules3/11/2025
Commerce And Tourism3/5/2025
Full Bill Text
No bill text available