Florida Statutes 634.095 – Prohibited acts
Current as of: 2023 | Check for updates
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Any service agreement company or salesperson that engages in one or more of the following acts is, in addition to any applicable denial, suspension, revocation, or refusal to renew or continue any appointment or license, guilty of a misdemeanor of the second degree, punishable as provided in s. 775.082 or s. 775.083:
(1) No salesperson or agent who participates in or influences the processing, administration, or adjustment of claims shall enter into any agreement or understanding in which the effect is to make the amount of any salesperson’s or agent’s commission contingent upon savings effected in the adjustment, settlement, and payment of losses covered by the service agreement company‘s or insurer‘s service agreement. Any agreement or understanding now existing is declared unlawful and shall be terminated immediately.
(2) Offering or attempting to offer the service agreement holder a return of all or a portion of the premium paid if the service agreement holder does not file any claims or files a limited number of claims or files claims the dollar amount of which does not exceed a set amount or percentage.
(3) Issuing or causing to be issued any advertisement that:
For details, see Fla. Stat. § 775.082(4)(b)
(a) Does not fully disclose in a written advertisement, in at least 12-point, boldfaced type, the name, address, and Florida Company Code of the service agreement company.
Attorney's Note
Under the Florida Statutes, punishments for crimes depend on the classification. In the case of this section:| Class | Prison | Fine |
|---|---|---|
| misdemeanor of the second degree | up to 60 days | up to $500 |
Terms Used In Florida Statutes 634.095
- Insurer: means any property or casualty insurer duly authorized to transact such business in this state. See Florida Statutes 634.011
- Motor vehicle: means :(a) A self-propelled device operated solely or primarily upon roadways to transport people or property, or the component part of such a self-propelled device, except such term does not include any self-propelled vehicle, or component part of such vehicle, which:1. See Florida Statutes 634.011
- Motor vehicle manufacturer: means an entity that:
(a) Manufactures or produces motor vehicles and sells motor vehicles under its own name or label;(b) Is a subsidiary of an entity that manufactures or produces motor vehicles; or(c) Is a corporation that owns 100 percent of an entity that manufactures or produces motor vehicles. See Florida Statutes 634.011- motor vehicle service agreement: includes any contract or agreement that provides:
(a) For the coverage or protection defined in this subsection and which is issued or provided in conjunction with an additive product applied to the motor vehicle that is the subject of such contract or agreement;(b) For payment of vehicle protection expenses. See Florida Statutes 634.011- person: includes individuals, children, firms, associations, joint adventures, partnerships, estates, trusts, business trusts, syndicates, fiduciaries, corporations, and all other groups or combinations. See Florida Statutes 1.01
- Premium: means the total amount paid by the agreement holder. See Florida Statutes 634.011
- Salesperson: means any dealership, corporation, partnership, or sole proprietorship employed or otherwise retained by an insurer or motor vehicle service agreement company for the purpose of selling or issuing motor vehicle service agreements or for the purpose of soliciting or retaining other salespersons. See Florida Statutes 634.011
- service agreement: means any contract or agreement indemnifying the service agreement holder for the motor vehicle listed on the service agreement and arising out of the ownership, operation, and use of the motor vehicle against loss caused by failure of any mechanical or other component part, or any mechanical or other component part that does not function as it was originally intended; 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. See Florida Statutes 634.011
- service agreement company: means any corporation, sole proprietorship, or partnership (other than an authorized insurer) issuing motor vehicle service agreements. See Florida Statutes 634.011
- Settlement: Parties to a lawsuit resolve their difference without having a trial. Settlements often involve the payment of compensation by one party in satisfaction of the other party's claims.
(b) Does not fully disclose in a radio or television advertisement the full legal name of the licensed salesperson or the service agreement company.(c) Does not fully identify the soliciting licensed salesperson’s full legal name and license number when the salesperson begins, and the soliciting salesperson’s telephone number when the salesperson concludes, each outbound telephone solicitation. For the purposes of this paragraph, the actual telephone number of the salesperson may be the number on file with the department or the number at which the salesperson may be contacted.(d) In any respect is in violation of or does not comply with this part, applicable provisions of the Florida Insurance Code, or applicable rule of the commission.(e) Is ambiguous, misleading, or deceptive.(f) Is false, deceptive, or misleading with respect to:1. The service agreement company’s affiliation with a motor vehicle manufacturer;2. The service agreement company’s possession of information regarding a motor vehicle owner’s current motor vehicle manufacturer‘s original equipment warranty;3. The expiration of a motor vehicle owner’s current motor vehicle manufacturer’s original equipment warranty; or4. Any requirement that the motor vehicle owner register for a new motor vehicle service agreement with the company in order to maintain coverage under the current motor vehicle service agreement or manufacturer’s original equipment warranty.(4) Denying claims for lack of service or maintenance on component parts that do not require servicing or routine maintenance or are unrelated to servicing.(5) Requiring that the purchaser or insured agree to purchase noninsurance services, commodities, or other insurance including automobile services as specified in s. 624.124 or exempt motor vehicle service agreements specified in s. 624.125.(6) The practice, known as sliding, by any person whereby the person:(a) Represents to the applicant that a specific ancillary coverage or product is required by law in conjunction with the purchase of a service agreement, when in fact the specific ancillary coverage or product is not required;(b) Represents to the applicant that a specific ancillary coverage or product is included in the service agreement applied for without an additional charge, when in fact an additional charge is applied; or(c) Charges an applicant for a specific ancillary coverage or product, over and above the cost of the service coverage applied for, without the informed consent of the applicant.(7) Remitting premiums received on motor vehicle service agreements sold to any person other than the licensed service agreement company that is obligated to perform under such agreement, if the agreement between such company and the salesperson requires that premiums be submitted directly to the service agreement company.