As used in this part, the term:

(1) "Department" means the Department of Insurance.

(2) "Gross written premiums" means the total amount of premiums, paid for the entire period of the home warranty, inclusive of commissions, for which the association is obligated under home warranties issued.

(3) "Home improvement" means major remodeling, enclosure of a garage, addition of a room, addition of a pool, and other like items that add value to the residential property. The term does not include normal maintenance for items such as painting, reroofing, and other like items subject to normal wear and tear.

(4) "Home warranty" or "warranty" means any contract or agreement:

(a) Offered in connection with the sale of residential property;

(b) Offered in connection with a loan of $5,000 or more which is secured by residential property that is the subject of the warranty, but not in connection with the sale of such property; or

(c) Offered in connection with a home improvement of $7,500 or more for residential property that is the subject of the warranty, but not in connection with the sale of such property; whereby a person undertakes to indemnify the warranty holder against the cost of repair or replacement, or actually furnishes repair or replacement, of any structural component or appliance of a home, necessitated by wear and tear or an inherent defect of any such structural component or appliance or necessitated by the failure of an inspection to detect the likelihood of any such loss. However, this part does not prohibit the giving of usual performance guarantees by either the builder of a home or the manufacturer or seller of an appliance, as long as no identifiable charge is made for such guarantee. This part does not permit the provision of indemnification against consequential damages arising from the failure of any structural component or appliance of a home, which practice constitutes the transaction of insurance subject to all requirements of the insurance code. This part does not apply to service contracts entered into between consumers and nonprofit organizations or cooperatives the members of which consist of condominium associations and condominium owners and which perform repairs and maintenance for appliances or maintenance of the residential property.

(5) "Home warranty association" means any corporation or any other organization, other than an authorized insurer, issuing home warranties.

(6) "Impaired" means having liabilities in excess of assets.

(7) "Insolvent" means the inability of a corporation to pay its debts as they become due in the usual course of its business.

(8) "Insurance code" means the Florida Insurance Code.

(9) "Insurer" means any property or casualty insurer duly authorized to transact such business in this state.

(10) "Net assets" means the amount by which the total statutory assets of an association exceed the total liabilities of the association.

(11) "Person" includes an individual, company, corporation, association, insurer, agent, and every other legal entity.

(12) "Premium" means the total consideration received, or to be received, by an insurer or home warranty association for or related to the issuance and delivery of any binder or warranty, including any charges designated as assessments or fees for policies, surveys, inspections, or service or any other charges.

(13) "Sales representative" means any person with whom an insurer or home inspection or warranty association has a contract and who is utilized by such insurer or association for the purpose of selling or issuing home warranties. The term includes all employees of an insurer or association engaged directly in the sale or issuance of home warranties.