Fla. Stat. 634.095
Prohibited acts
(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: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.Does not fully disclose in a radio or television advertisement the full legal name of the licensed salesperson or the service agreement company.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.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.Is ambiguous, misleading, or deceptive.Is false, deceptive, or misleading with respect to:The service agreement company’s affiliation with a motor vehicle manufacturer;
The service agreement company’s possession of information regarding a motor vehicle owner’s current motor vehicle manufacturer’s original equipment warranty;
The expiration of a motor vehicle owner’s current motor vehicle manufacturer’s original equipment warranty; or
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.
(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.(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:The service agreement company’s affiliation with a motor vehicle manufacturer;The service agreement company’s possession of information regarding a motor vehicle owner’s current motor vehicle manufacturer’s original equipment warranty;The expiration of a motor vehicle owner’s current motor vehicle manufacturer’s original equipment warranty; orAny 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: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;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; orCharges 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.(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.
Source:
Section 634.095 — Prohibited acts, https://www.flsenate.gov/Laws/Statutes/2024/0634.095 (accessed Aug. 7, 2025).