CODING: Words stricken are deletions; words underlined are additions.House Bill 0487
Florida House of Representatives - 1997 HB 487
By Representative Dennis
1 A bill to be entitled
2 An act relating to premium finance companies;
3 amending s. 627.828, F.S.; revising certain net
4 worth requirements for applicants for a premium
5 finance company license; providing for a surety
6 bond under certain circumstances; requiring
7 certain insurance coverage; amending s.
8 627.848, F.S.; requiring insurers to return
9 certain amounts to premium finance companies on
10 cancelled policies; requiring such companies to
11 refund certain unearned premium; providing an
12 effective date.
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14 Be It Enacted by the Legislature of the State of Florida:
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16 Section 1. Section 627.828, Florida Statutes, is
17 amended to read:
18 627.828 License required.--
19 (1) Except as provided in ss. 627.901 and 627.902, no
20 person shall engage in the business of a premium finance
21 company unless licensed by the department. Every premium
22 finance company licensed under the provisions of this part
23 shall maintain at all times a net worth of $35,000. However,
24 in lieu of having a net worth of $35,000, a premium finance
25 company which has a net worth of at least $10,000 may file a
26 surety bond or other acceptable collateral with the department
27 as approved by it in the amount of $35,000, which bond or
28 collateral shall be maintained.
29 (2) The application for a license shall be in writing
30 and in the form prescribed by the department. Every applicant
31 shall provide evidence proof of a net worth of $35,000,
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Florida House of Representatives - 1997 HB 487
511-132-97
1 attested to by two officers of the company, or a $35,000
2 surety bond and evidence of a net worth of $10,000, attested
3 to by two officers of the company. Assets to be used in
4 computing the required net worth shall be determined by rules
5 adopted by the department.
6 (3) Each premium finance company licensed under this
7 part shall maintain at all times an errors and omissions
8 insurance policy of no less than $500,000 per claim.
9 (4)(3) A single license shall entitle the holder to
10 operate more than one office.
11 (5)(4) At the time of filing an application for a
12 license, the applicant shall pay to the department the license
13 fee and, upon original application or upon application
14 subsequent to denial of application, or revocation, suspension
15 or surrender of a license, an investigation fee.
16 (6)(5) Such license shall state the name and address
17 of the licensee, and a copy shall be kept conspicuously posted
18 in each office of the licensee and shall not be transferable
19 or assignable.
20 (7)(6) Prior to moving an existing office to another
21 location, a licensee shall notify the department in writing of
22 its intention to do so.
23 Section 2. Paragraph (e) of subsection (1) of section
24 627.848, Florida Statutes, 1996 Supplement, is amended to
25 read:
26 627.848 Cancellation of insurance contract upon
27 default.--
28 (1) When a premium finance agreement contains a power
29 of attorney or other authority enabling the premium finance
30 company to cancel any insurance contract listed in the
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Florida House of Representatives - 1997 HB 487
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1 agreement, the insurance contract shall not be canceled unless
2 cancellation is in accordance with the following provisions:
3 (e) Whenever an insurance contract is canceled in
4 accordance with this section, the insurer shall promptly
5 return the unpaid balance due under the finance contract, up
6 to the gross amount available, which shall include unearned
7 premiums, upon the cancellation of the policy, to the premium
8 finance company, which shall, after satisfaction of the
9 premium finance contract, return and any remaining unearned
10 premium to the agent or the insured in the case of personal
11 lines insurance, or to the agent in the case of commercial
12 insurance both, for the benefit of the insured or insureds.
13 Section 3. This act shall take effect upon becoming a
14 law.
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17 HOUSE SUMMARY
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Revises net worth requirements for licensing premium
19 finance companies. Revises refund requirements on
cancelled policies. See bill for details.
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