Florida Statutes 634.308 – Grounds for suspension or revocation of license
Current as of: 2023 | Check for updates
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(1) The license of any home warranty association may be revoked or suspended, or the office may refuse to renew any such license, if it is determined that:
(a) The association has violated any lawful rule or order of the commission or office or any provision of this part.
Terms Used In Florida Statutes 634.308
- Assets: (1) The property comprising the estate of a deceased person, or (2) the property in a trust account.
- Home warranty association: means any corporation or any other organization, other than an authorized insurer, issuing home warranties. See Florida Statutes 634.301
- Impaired: means having liabilities in excess of assets. See Florida Statutes 634.301
- Insolvent: means the inability of a corporation to pay its debts as they become due in the usual course of its business. See Florida Statutes 634.301
- Insurer: means any property or casualty insurer duly authorized to transact such business in this state. See Florida Statutes 634.301
- Obligation: An order placed, contract awarded, service received, or similar transaction during a given period that will require payments during the same or a future period.
- Premium: means the total consideration received, or to be received, by an insurer or home warranty association for or related to the issuance and delivery of any binder or warranty, including any charges designated as assessments or fees for policies, surveys, inspections, or service or any other charges. See Florida Statutes 634.301
- 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.
- warranty: means any contract or agreement whereby a person undertakes to indemnify the warranty holder against the cost of repair or replacement, or actually furnishes repair or replacement, of any structural component or appliance of a home, necessitated by wear and tear or an inherent defect of any such structural component or appliance or necessitated by the failure of an inspection to detect the likelihood of any such loss. See Florida Statutes 634.301
(b) The association has not maintained a funded, unearned premium reserve account as required by s. 634.3077(1).
(c) The association has not maintained, at a minimum, net assets as required by s. 634.3077(2).
(2) The license of any home warranty association shall be suspended, revoked, or not renewed if it is determined that such association:
(a) Is in unsound financial condition or is in such condition or is using such methods and practices in the conduct of its business as to render its further transaction of warranties in this state hazardous or injurious to its warranty holders or to the public.
(b) Has refused to be examined or to produce its accounts, records, and files for examination, or if any of its officers have refused to give information with respect to its affairs or have refused to perform any other legal obligation as to such examination, when required by the office.
(c) Has failed to pay any final judgment rendered against it in this state within 60 days after the judgment became final.
(d) Has, without just cause, refused to pay proper claims arising under its warranties or, without just cause, has compelled warranty holders to accept less than the amount due them or to employ attorneys, or to bring suit against the association, to secure full payment or settlement of such claims.
(e) Is affiliated with, and under the same general management, interlocking directorate, or ownership as, another home warranty association which transacts direct warranties in this state without having a license therefor.
(f) Has issued warranty contracts which renewal contracts provide that the cost of renewal exceeds the then-current cost for new warranty contracts, unless the increase is supported by the claims history or claims cost data, or impose a fee for inspection of the premises.
(3) The office may, pursuant to s. 120.60, in its discretion and without advance notice or hearing thereon, immediately suspend the license of any home warranty association if it finds that one or more of the following circumstances exist:
(a) The association is insolvent or impaired.
(b) The reserve account or net asset ratio requirement of s. 634.3077 is not being maintained.
(c) A proceeding for receivership, conservatorship or rehabilitation or any other delinquency proceeding regarding the association has been commenced in any state.
(d) The financial condition or business practices of the association otherwise pose an imminent threat to the public health, safety, or welfare of the residents of this state.
(4) A violation of this part by an insurer is grounds for suspension or revocation of the insurer’s certificate of authority in this state.