Financial Requirements Regarding the Funded, Unearned Premium Reserve Account, General Eligibility Requirements, Annual Statement
DEPARTMENT OF FINANCIAL SERVICES
RULE NOS.:RULE TITLES:
69O-199.005Financial Requirements Regarding the Funded, Unearned Premium Reserve Account
69O-199.008General Eligibility Requirements
69O-199.012Annual Statement
NOTICE OF CHANGE
Notice is hereby given that the following changes have been made to the proposed rule in accordance with subparagraph 120.54(3)(d)1., F.S., published in Vol. 47 No. 24, February 5, 2021 issue of the Florida Administrative Register.
69O-199.005 Financial Requirements Regarding the Funded, Unearned Premium Reserve Account.
(1)(a) No change.
(b) “Gross Written Premiums” means the total amount of premiums paid by the consumer, paid for the entire period of the home warranty, inclusive of commissions, for which the association is obligated under home warranties issued.
(c) No change.
(2) No change.
(3) Each home warranty association shall maintain a warranty register, which shall include at least the following items:
(a) Contract number;
(b) Date issued;
(c) Issuing sales representative;
(d) Name and street address of warranty holder;
(e) Warranty period;
(f) Net Premium;
(g) Commission to sales representative; and,
(h) Gross Premium.
(3)(4) The unearned premium reserve account is calculated as follows: the minimum reserve for all home warranty associations shall be 25 percent of the gross written premium for which the association is obligated on all contracts, issued in this any state.
(4)(5) The unearned premium reserve account shall be totally funded and identified at all times by unencumbered assets. Those prescribed assets funding the unearned premium reserve shall be clearly designated for this purpose and such reserve account must be a separate auditable account for contracts in force in this state.
(5)(6) The ratios required by section 634.3077(2), F.S., are net assets to gross written premiums for which the association is obligated, wherever written, in any state, except that the ratio of net assets to gross written premiums may be less if the association has net assets of not less than $500,000 and maintains a funded, unearned premium reserve account equal to a minimum of 40 percent of the gross written premiums received by it from all warranty contracts in force in this state.
Rulemaking Authority 634.302 FS. Law Implemented 634.3077, 634.3135 FS. History–New 7-16-92, Formerly 4-199.005, Amended _________.
69O-199.008 Application for License and License Renewal.
(1) Application for License as a Home Warranty Association
(a) An application for a person applying for a license as a home warranty association consists of the following:
1. Form OIR-C1-490, “Application for License Home Warranty Association,” effective 3/21 12/18, hereby incorporated by reference and available at www.flrules.org/XXXXX;
2. through 5. No change.
6. Form OIR-C1-969, “Contractual Liability Policy,” effective 6/20, hereby incorporated by reference and available at www.flrules.org/XXXXX;
67. Form OIR-C1-995, “List of Proposed Sales Representatives,” effective 10/05, hereby incorporated by reference and available at www.flrules.org/XXXXX;
78. Form OIR-C1-1423, “Biographical Affidavit,” effective 6/20, hereby incorporated by reference and available at www.flrules.org/XXXXX; and
89. Form OIR-C1-2221, “Management Information Form,” effective 6/20, hereby incorporated by reference and available at www.flrules.org/XXXXX.
(b) No change.
(2) No change.
Rulemaking Authority 634.302 FS. Law Implemented 624.424, 634.304, 634.305, 634.306, 624.307, 634.3073, 634.315 FS. History–New 7-16-92, Amended 4-3-94, Formerly 4-199.008, Amended 7-30-17, _________.
69O-199.012 Annual Statement.
(1)(a) An Annual Statement shall be filed with the Office, on or before March 1 of each year, on Form OIR-A3-491, “Annual Statement for Home Warranty Association,” effective 6/20, hereby incorporated by reference and available at www.flrules.org/XXXXX. The filings shall be submitted electronically via the Office’s system at https://www.floir.com/iportal.
(b) If the Annual Statement does not include all information requested in the format provided, it will not be deemed filed until all deficiencies are corrected.
(2) A late filing fee will be assessed in accordance with rule chapter 69O-207, F.A.C., for each company that has not filed a complete Annual Statement in accordance with this rule.
(3)(a) Any request for an extension of filing the Annual Statement shall be in writing and the reason(s) for the extension explained in detail.
(b) All requests for extension must be filed with the Office fifteen (15) days prior to the deadline date for filing the annual report.
(c) Any request for extension received less than fifteen (15) days prior to due date will be denied except for unavoidable circumstances, which include
1. Death of key personnel; or
2. Destruction of records by fire, hurricane, or other natural disasters.
Rulemaking Authority 634.302 FS. Law Implemented 624.307(1), 624.424, 634.313 FS. History–New 7-16-92, Amended 4-3-94, Formerly 4-199.012, Amended 7-30-17, _________.
