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Service Warranty Overview


A "Service Warranty" is a warranty, guaranty, extended warranty or extended guaranty, maintenance service contract equal or greater than 1 year in length that provides protection against the cost of repair, replacement or maintenance of a consumer product, in return for the payment of a premium. The complete definition of a Service Warranty is located in Section 634.401, Florida Statutes.

A service warranty contract can be written by a Service Warranty Association who is licensed pursuant to Section 634.403, Florida Statutes, or by an authorized insurance company who is authorized to write this line of business.

Service Warranty rates are not filed with nor approved by the Office of Insurance Regulation (OIR). According to Section 634.414, Florida Statutes, each service agreement sold in this state must be accompanied by a written disclosure to the consumer that the rate charged for the service agreement is not subject to regulation by the Office of Insurance Regulation. A service agreement company may comply with this requirement by including the disclosure in its service agreement form or in a separate written notice provided to the consumer at the time of sale.

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