Florida

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Summary

For typical home service contracts, a provider needed to be dual licensed prior to 2011. For contracts sold in conjunction with real estate transactions, under the “Home Warranty Associations Act” at FS 634.301 et seq. For contracts sold directly or at retail, under the “Service Warranty Associations Act” at FS 634.401 et seq. This all changed effective January 1, 2011 due to passage of SB 2176 in 2010. 634.4 was not repealed, but the bill removed the limitation in 634.3 that said contracts had to be "connected with the sale of residential real property." So a license under 634.4 is no longer required to make direct or "resales." The use of the term “warranty association” remains interesting. One is pressed to identify an entity selling home service contracts in the form of an association or can offer a reason why one would. The origin of this odd definition remains unknown. The entire law is extensive and complex and should be reviewed carefully before offering such contracts for sale. One caution is the requirements for licensing of sales representatives under parts 634.317 and 634.401(13). Despite what the distinct language might suggest, the Department has taken the view under 634.317 a single license is required for each physical location whether such location or office is receiving any remuneration or not, just as it does under 634.401. An individual may be licensed at each location or, each location may obtain a single “firm” license. [Cite: Fl DOI Counsel letter dated October 30, 2003, obtainable from the NHCSA] Also of note is that while a real estate agent, (or anyone else) would require both a sales representative license and an appointment, a Florida licensed Section 220 (property) insurance agent would not also require a sales representative license under 301 or 401, only an appointment. The theory is that a licensed 220 insurance agent already holds a superior license and is subject to greater education, licensure and scrutiny. [Cite: Deputy Florida Commissioner letter dated March 7, 2002 obtainable from the NHSCA]. In 2019, NHSCA passed HB 925 "Warranty Associations" by Rep. Jennifer Webb which amended the law to allow reserve calculations to only be based upon business written in Florida, and not based upon business in other states.