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House Bill 0363




    Florida House of Representatives - 1997                 HB 363

        By Representative Melvin






  1                      A bill to be entitled

  2         An act relating to premium finance agreements;

  3         amending s. 627.841, F.S.; revising the default

  4         period for purposes of certain delinquency and

  5         collection charges; providing an effective

  6         date.

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  8  Be It Enacted by the Legislature of the State of Florida:

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10         Section 1.  Subsection (1) of section 627.841, Florida

11  Statutes, is amended to read:

12         627.841  Delinquency, collection, cancellation, and

13  check return charges; attorney's fees.--

14         (1)  A premium finance agreement may provide for the

15  payment by the insured of a delinquency and collection charge

16  on each installment which is postmarked after the date on

17  which the installment is due.  The charge may not in default

18  for a period of not less than 5 days in an amount not to

19  exceed $10 or 5 percent of the delinquent installment,

20  whichever is greater; provided that if the premium finance

21  agreement is primarily for personal, family, or household

22  purposes, the delinquency and collection charge shall not

23  exceed $10.  Only one such delinquency and collection charge

24  may be collected on any such installment regardless of the

25  period during which it remains in default.

26         Section 2.  This act shall take effect October 1, 1997,

27  and shall apply to premium finance agreements entered into on

28  or after that date.

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CODING: Words stricken are deletions; words underlined are additions.






    Florida House of Representatives - 1997                 HB 363

    556-132A-97






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  2                          HOUSE SUMMARY

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      Authorizes imposition of a delinquency and collection
  4    charge under a premium finance agreement if an
      installment is postmarked after the date the installment
  5    is due.

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