DEPARTMENT OF FINANCIAL SERVICES
RULE NOS.:RULE TITLES:
69O-198.005Financial Requirements
69O-198.011Application for and Issuance of License
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.
The changes are in response to written comments received from the Joint Administrative Procedures Committee.
69O-198.005 Financial Requirements.
Requirements regarding the funded, unearned premium reserve account.
(1) “Gross Written Premiums” means the total amount of premiums paid, paid or to be paid by the consumer for the entire period of the service warranty , inclusive of commissions, for which the association is obligated under service warranties issued. Obligated means outstanding warranties in force which have not expired or been canceled and a refund made to the consumer.
(2) through (6) No change.
(7) No warranty seller may allow its gross written premiums in force for contracts written in this state to exceed a 7-to-1 ratio to net assets. unless it meets the requirement of section 634.406(4), Florida Statutes.
(8) No change.
(9) Requirements Regarding the Contractual Liability Policy. Contractual liability insurance may be purchased only from an admitted property and casualty insurer whose certificate of authority indicates that it may issue this type of policy and which has been approved by the Office. All insurers issuing contractual liability policies to service warranty associations must, at a minimum, use policy provisions providing policyholder protection substantially equivalent to and not materially in conflict with that provided in the sample Form OIR-C1-969, incorporated by reference in Rule 69O-198.011 F.A.C. A policy is in violation of this subsection only if it is in violation of a statute or rule.
Rulemaking Authority 634.402 FS. Law Implemented 634.406(1), (3), (4), 634.4165 FS. History–New 12-26-88, Formerly 4-67.005, Amended 4-26-90, 3-28-93, 4-3-94, Formerly 4-198.005, Amended ________________.
69O-198.011 Application for and Issuance of License and License Continuance.
(1) Application for License as a Service Warranty Association
(a) An application for a person applying for a license as a service warranty association consists of the following:
1. Form OIR-C1-997, “Application for License Service 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 5/20, 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.
(3) Application for License as a Service Warranty Association Manufacturer or Affiliate
(a) An application for a person applying for a license as a service warranty association manufacturer or affiliate consists of the following:
1. Form OIR-C1-989, “Application for License Service Warranty Association Manufacturer or Affiliate,” effective 3/21 12/18, hereby incorporated by reference and available at www.flrules.org/XXXXX;
2. Form OIR-C1-144, incorporated by reference in paragraph (1)(a); and
3. Form OIR-C1-969, incorporated by reference in paragraph (1)(a); and
34. Form OIR-C1-2221, incorporated by reference in paragraph (1)(a).
(b) No change.
(4) No change.
Rulemaking Authority 634.402 FS. Law Implemented 624.424, 634.407, 634.408, 634.404 FS. History–New 3-28-93, Formerly 4-198.011, Amended ________________.
