Bill > S0282

This bill modifies regulations for warranty associations in Florida, specifically focusing on contractual liability insurance policies and financial requirements. The bill updates existing statutes to clarify that warranty associations may not be required to establish unearned premium reserves if they purchase comprehensive contractual liability insurance that covers 100 percent of their claim exposure. The insurance policies must now explicitly state that they will either pay all claims as they are incurred or pay all claims if the association fails to do so. The bill also allows warranty associations more flexibility in their premium-to-net-assets ratio under certain conditions, such as maintaining specific net worth levels, using approved contractual liability insurance, and meeting insurer rating requirements. Additionally, the bill mandates that contracts including coverage for accidental damage from handling must be covered by specific contractual liability insurance policies, with an exception for certain associations not required to maintain such insurance. These changes aim to provide clearer guidelines for warranty associations' financial obligations and insurance requirements, potentially offering more protection for consumers and more operational flexibility for warranty associations. The bill is set to take effect on July 1, 2025.

Business and Industry

Banking and Insurance (Senate), Rules (Senate)

https://www.flsenate.gov/Session/Bill/2025/282