House Bill 0789

    Florida House of Representatives - 1999                 HB 789

        By Representative Dockery






  1                      A bill to be entitled

  2         An act relating to collateral protection

  3         insurance; creating s. 624.6085, F.S.; defining

  4         collateral protection insurance; providing for

  5         initiation of coverage; excluding residential

  6         coverage; providing an effective date.

  7

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

  9

10         Section 1.  Section 624.6085, Florida Statutes, is

11  created to read:

12         624.6085  "Collateral protection insurance"

13  defined.--For purposes of the insurance code, "collateral

14  protection insurance" means commercial insurance under which a

15  creditor is the primary beneficiary and policyholder and which

16  protects or covers an interest of the creditor arising out of

17  a credit transaction secured by real or personal property.

18  Initiation of such coverage is triggered by the mortgagor's

19  failure to maintain insurance coverage as required by the

20  mortgage or other lending document.  Collateral protection

21  insurance is not residential coverage.

22         Section 2.  This act shall take effect upon becoming a

23  law.

24

25            *****************************************

26                          HOUSE SUMMARY

27
      Defines collateral protection insurance for purposes of
28    the insurance code and provides for initiation of
      coverage.
29

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