The office may not issue or allow a service warranty association to maintain a license unless the association:

(1) Is a warrantor with minimum net assets of $25,000 or a warranty seller with minimum net assets of $300,000.
(2) Furnishes the office with evidence satisfactory to it that the management of the association is competent and trustworthy and can successfully manage the affairs of the association in compliance with law.
(3) Proposes to use and uses in its business a name, together with a trademark or emblem, if any, which is distinctive and not so similar to the name or trademark of any other person already doing business in this state as will tend to mislead or confuse the public.
(4) Makes the deposit or files the bond required under s. 634.405.
(5) Is formed under the laws of this state or another state, district, territory, or possession of the United States, if the association is other than a natural person.
(6) In lieu of the provisions of subsections (1)-(5) of this section and s. 634.407, a manufacturer or affiliate as defined in this part is eligible for licensure as a service warranty association under the provisions of this part and shall complete an application evidencing its qualifications as set forth in this section. The application for license as a service warranty association from a manufacturer or affiliate shall be made to, and filed with, the office on printed forms as promulgated by the commission to be specifically and exclusively applicable to qualifying manufacturers.

(a) The commission may require that the applicant show:

1. The state of the applicant’s incorporation;
2. The location of the applicant’s home office; and
3. The names and business addresses of the applicant’s board of directors and managing executive officer.

Terms Used In Florida Statutes 634.404

  • Affiliate: means any entity which exercises control over or is controlled by, the service warranty association or insurer, directly or indirectly, through:
    (a) Equity ownership of voting securities;
    (b) Common managerial control; or
    (c) Collusive participation by the management of the service warranty association or insurer or the affiliate. See Florida Statutes 634.401
  • Assets: (1) The property comprising the estate of a deceased person, or (2) the property in a trust account.
  • association: means any person, other than an authorized insurer, issuing service warranties. See Florida Statutes 634.401
  • Evidence: Information presented in testimony or in documents that is used to persuade the fact finder (judge or jury) to decide the case for one side or the other.
  • Manufacturer: means any entity or its affiliate which:
    (a) Derives a majority of its revenues from products manufactured, built, assembled, constructed, or produced under a product name wholly controlled by the applicant or an affiliate thereof;
    (b) Issues service warranties only for consumer products manufactured, built, assembled, constructed, or produced under a product name wholly controlled by the applicant or an affiliate thereof;
    (c) Is listed and traded on a recognized stock exchange, is listed in NASDAQ (National Association of Security Dealers Automated Quotation system) and publicly traded in the over-the-counter securities markets, is required to file either of Form 10-K, Form 10-Q, or Form 20-G with the United States Securities and Exchange Commission, or whose American Depository Receipts are listed on a recognized stock exchange and publicly traded;
    (d) Has and maintains at all times, a minimum net worth of at least $100 million as evidenced by certified financial statements prepared by an independent certified public accountant in accordance with generally accepted accounting principles; and
    (e) Is authorized to do business in this state. See Florida Statutes 634.401
  • Net assets: means total statutory assets in excess of liabilities, except that assets pledged to secure debts not reflected on the books of the service warranty association shall not be included in net assets. See Florida Statutes 634.401
  • Person: includes an individual, company, corporation, association, insurer, agent, and any other legal entity. See Florida Statutes 634.401
  • Service warranty: means any warranty, guaranty, extended warranty or extended guaranty, maintenance service contract equal to or greater than 1 year in length or which does not meet the exemption in paragraph (a), 1contract agreement, or other written promise for a specific duration to perform the repair, replacement, or maintenance of a consumer product, or for indemnification for repair, replacement, or maintenance, for operational or structural failure due to a defect in materials or workmanship, normal wear and tear, power surge, or accidental damage from handling in return for the payment of a segregated charge by the consumer; however:
    (a) Maintenance service contracts written for less than 1 year which do not contain provisions for indemnification and which do not provide a discount to the consumer for any combination of parts and labor in excess of 20 percent during the effective period of such contract, motor vehicle service agreements, transactions exempt under…. See Florida Statutes 634.401
  • Warrantor: means any person engaged in the sale of service warranties and deriving not more than 50 percent of its gross income from the sale of service warranties. See Florida Statutes 634.401
  • Warranty seller: means any person engaged in the sale of service warranties and deriving more than 50 percent of its gross income from the sale of service warranties. See Florida Statutes 634.401
(b) The application, when filed, must be accompanied by:

1. A copy of the applicant’s articles of incorporation, certified by the public official having custody of the original, and a copy of the applicant’s bylaws, certified by the applicant’s corporate secretary;
2. Evidence that the applicant has complied with all applicable statutory requirements regarding registering to do business in this state; and
3. A license fee in the amount of $500.
(c) Upon submission of the application for license, the office shall examine the application to determine its compliance with applicable sections of this part. Applicants shall be advised of any inadequate responses or missing information.
(d) Information as required in this section shall be updated as to changes thereto no less than two times annually, once at the time of the submission of the service warranty association’s submission of its annual report, and the second time, no later than September 30 of each year.
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