Section 634.011, Florida Statutes 2001
634.011 Definitions.--As used in this part, the term:
(1) "Acquisition cost" means all costs specifically associated with acquiring new business, including, but not limited to, underwriting costs, commissions, contingent fees, and cost of sales material.
(2) "Additive product" means any fuel supplement, oil supplement, or any other supplement product added to a motor vehicle for the purpose of increasing or enhancing the performance or improving the longevity of such motor vehicle.
(3) "Affiliate" means any entity which exercises control over or is controlled by the motor vehicle service agreement company 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 motor vehicle service agreement company or insurer and affiliate in the management of the motor vehicle service agreement company or insurer or the affiliate.
(4) "Department" means the Department of Insurance.
(5) "Gross premium written" means the total amount of premiums paid by the agreement holder, inclusive of commissions, for those agreements which are in force.
(6) "Insurer" means any property or casualty insurer duly authorized to transact such business in this state.
(7) "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. Has a gross vehicle weight rating of 10,000 pounds or more, and is not a recreational vehicle as defined by s. 320.01(1)(b);
2. Is designed to transport more than 10 passengers, including the driver; or
3. Is used in the transportation of materials found to be hazardous for the purposes of the Hazardous Materials Transportation Act, as amended, 49 U.S.C. ss. 1801 et seq.; or
(b) A self-propelled device operated solely or primarily upon water for noncommercial, personal use, the engine of such a vehicle, or a trailer or other device used to transport such vehicle or device.
(8) "Motor vehicle service agreement" or "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; and provided further, however, transactions exempt under s. 624.125 shall be expressly excluded from this definition and are exempt from the provisions of this part. The term "motor vehicle service agreement" includes any contract or agreement which provides the coverage or protection defined in this subsection and is issued or provided in conjunction with an additive product applied to the motor vehicle which is the subject of such contract or agreement.
(9) "Motor vehicle service agreement company" or "service agreement company" means any corporation, sole proprietorship, or partnership (other than an authorized insurer) issuing motor vehicle service agreements.
(10) "Net assets" means the amount by which the total statutory assets exceed total liability, except that assets pledged to secure debts not reflected on the books of the service agreement company shall not be included in net assets.
(11) "Person" shall have the same meaning as defined in s. 624.04.
(12) "Premium" means the total amount paid by the agreement holder. No "assessment" or any "membership fee," "policy fee," "survey fee," "inspection fee," "service fee," "finance fee," or similar fee shall be charged by the service agreement company.
(13) "Rate" means the unit charge by which the measure of exposure in a service agreement is multiplied to determine the premium.
(14) "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.
(15) "Unearned premium" means that portion of the gross written premium which has not been earned on a straight pro rata basis.
(16) "Unearned premium reserve" means unencumbered assets equal to 50 percent of the unearned premium.
(17) "Unearned gross written premium" means that portion of the gross written premium which has not been amortized or earned on a pro rata basis.
History.--s. 1, ch. 59-110; ss. 13, 35, ch. 69-106; s. 268, ch. 71-377; s. 3, ch. 76-168; s. 1, ch. 77-457; s. 1, ch. 78-231; ss. 2, 3, ch. 81-318; ss. 1, 32, 33, ch. 82-234; s. 5, ch. 85-321; s. 1, ch. 88-46; s. 1, ch. 89-125; ss. 9, 68, ch. 91-106; ss. 1, 20, ch. 93-195; s. 1, ch. 94-280; s. 1, ch. 97-74; s. 452, ch. 97-102; s. 1, ch. 2001-281.