Warranty Associations, complete (Parts I motor vehicle service agreement companies, II home warranty associations, III service warranty associations)

What this document is

Florida Statutes ch. 634 - Warranty Associations, complete (Parts I motor vehicle service agreement companies, II home warranty associations, III service warranty associations) (ss. 634.011-634.444) is a state statute published by The Florida Senate / Florida Legislature (flsenate.gov), official Florida Statutes. It is one of the Florida documents that insurance license exam questions are written from, including florida claims adjuster practice questions. This page summarizes it and points to the official version, which is the text to rely on.

Sections cited in practice questions

Each practice answer shows the exact passage it comes from. These are sections of this document that questions cite, with a short excerpt from the source text.

• Fla. Stat. § 634.011(14) (Definitions; Road Hazard)

  “The term does not include any damage caused by collision with another vehicle, vandalism, or other causes usually covered under the comprehensive or collision coverages provided by an automobile physical damage policy.”

• Fla. Stat. § 634.011(6)(a)3. (Definitions; Motor Vehicle)

  “Is used in the transportation of materials found to be hazardous for the purposes of the Hazardous Materials Transportation Act, as amended, 49 U.S.C. ss. 1801 et seq.; or”

• Fla. Stat. § 634.011(8) (Definitions; Motor Vehicle Service Agreement, Usual Performance Guarantees)

  “however, nothing in this part shall prohibit or affect the giving, free of charge, of the usual performance guarantees by manufacturers or dealers in connection with the sale of motor vehicles.”

• Fla. Stat. § 634.1213(7) (Noncompliant Forms; Depreciation of Parts)

  “Contains any provision for reducing claim payments due to depreciation of parts, except for marine engines.”

• Fla. Stat. § 634.095(4) (Prohibited Acts; Denial for Lack of Maintenance)

  “Denying claims for lack of service or maintenance on component parts that do not require servicing or routine maintenance or are unrelated to servicing.”

• Fla. Stat. § 634.011(8)(b)3.a. (Definitions; Vehicle Protection Expenses, Minimum Reimbursement)

  “Reimburse a service agreement holder for the following expenses, at a minimum: deductibles applicable to comprehensive coverage under the service agreement holder’s motor vehicle insurance policy; temporary vehicle rental expenses; sales taxes and registration fees on a replacement vehicle that is...”

• Fla. Stat. § 634.041(11)(a) (Qualifications for License; Vehicle Protection Expenses)

  “Service agreements providing vehicle protection expenses may be sold only to a service agreement holder that has in-force comprehensive motor vehicle insurance coverage for the vehicle to be covered by the service agreement.”

• Fla. Stat. § 634.031(2) (License Required; Sales From Florida Into Another State)

  “No person shall, from offices or by personnel or facilities in this state, solicit applications or otherwise transact service agreement sales in another state or country unless it holds a subsisting license issued to it by the office authorizing it to transact the same kind or kinds of service...”

• Fla. Stat. § 634.041(8)(a)1. (Qualifications for License; Unearned Premium Reserve)

  “It must consist of unencumbered assets equal to a minimum of 50 percent of the unearned gross written premium on each service agreement and must amortize this reserve pro rata over the duration of the service agreement.”

• Fla. Stat. § 634.011(16) (Definitions; Unearned Premium)

  ““Unearned premium” means that portion of the gross written premium which has not been earned on a straight pro rata basis.”

• Fla. Stat. § 634.121(2) (Forms; Assignment Period)

  “The assignment must occur within a period of time specified in the agreement, which period may not expire earlier than 15 days after the date of the sale or transfer of the motor vehicle.”

• Fla. Stat. § 634.121(3)(a) (Forms; Cancellation by the Purchaser in the Initial Period)

  “Each service agreement must contain a cancellation provision. Any service agreement is cancelable by the purchaser within 60 days after purchase. The refund must be 100 percent of the gross premium paid, less any claims paid on the agreement. A reasonable administrative fee may be charged not to...”

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More Florida sources

• Florida Administrative Code, Division 69O: chs. 69O-123 (Civil Remedy), 69O-124 (Anti-Coercion), 69O-125 (Unfair Discrimination), 69O-142 (Insurer Conduct), 69O-153 (Deceptive Insurance Practices), 69O-189 (Workers' Compensation), 69O-196 (Premium Finance Companies), 69O-215 (Agents), 69O-220 (Adjusters), 69O-228 (Continuing Education), 69O-230 (General Ethics and Disclosure Requirements) and 69O-231 (Penalty Guidelines for Insurance Representatives) (98 rules, 69O-123.001-69O-231.160)Regulation
• Florida Administrative Code, Division 69O (Office of Insurance Regulation): chs. 69O-166 (Property and Casualty Insurer Practices), 69O-167 (Property and Casualty Insurance Contracts), 69O-170 (Property and Casualty Insurance Rating), 69O-175 (Motor Vehicle Insurance) and 69O-176 (Motor Vehicle Insurance Requirements), 87 of the 89 rules the publisher lists (the two omitted are 69O-170.021 and 69O-170.022, transferred stubs whose .doc file holds a title and nothing else) (87 rules, 69O-166.021-69O-176.022)Regulation
• Florida Statutes s. 626.112 - License and appointment requiredState statute
• Florida Statutes s. 626.2815 - Continuing education requirementsState statute
• Florida Statutes s. 626.611 - Grounds for compulsory refusal, suspension, or revocation of licenseState statute
• Florida Statutes s. 626.621 - Grounds for discretionary refusal, suspension, or revocation of licenseState statute
• Florida Statutes s. 626.641 - Duration of suspension or revocation of licenseState statute
• Florida Statutes s. 626.7451 - Managing general agents; required contract provisionsState statute