Senate Bill 2480
CODING: Words stricken are deletions; words underlined are additions.
Florida Senate - 1999 SB 2480
By Senator Dawson-White
30-1283-99
1 A bill to be entitled
2 An act relating to insurance; creating s.
3 627.4045, F.S.; authorizing insurers to collect
4 premium security deposits and establishing
5 guidelines for their use; defining the term
6 "premium security deposit"; providing an
7 effective date.
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9 Be It Enacted by the Legislature of the State of Florida:
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11 Section 1. Section 627.4045, Florida Statutes, is
12 created to read:
13 627.4045 Premium security deposits.--
14 (1) Notwithstanding any provision of law to the
15 contrary, an insurer may accept and hold premium security
16 deposits made by the insured.
17 (2) The insurer may pay interest to the insured on a
18 premium security deposit. Interest may be a fixed or variable
19 amount, or it may be expressed as a fixed or variable rate.
20 (3) For purposes of s. 624.509, a premium security
21 deposit is not premium until the security deposit is used by
22 the insurer to pay earned premium obligations of the insured.
23 (4) Any premium security deposit given by the insured
24 under this section shall be included in the definition of the
25 term "covered claim" for the purposes of chapter 631.
26 (5) As used in this section, the term "premium
27 security deposit" means moneys that are deposited with an
28 insurer to secure payment of premium under an insurance
29 contract or agreement.
30 Section 2. This act shall take effect July 1, 1999.
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CODING: Words stricken are deletions; words underlined are additions.
Florida Senate - 1999 SB 2480
30-1283-99
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2 SENATE SUMMARY
3 Authorizes insurers to collect premium security deposits.
Establishes guidelines for the handling of such deposits.
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