House Bill 0791

    Florida House of Representatives - 1999                 HB 791

        By Representative Dockery






  1                      A bill to be entitled

  2         An act relating to premium security deposits;

  3         creating s. 627.4045, F.S.; authorizing

  4         insurers to accept and hold premium security

  5         deposits for certain purposes; providing a

  6         definition; authorizing an insurer to pay

  7         interest on such deposits; specifying

  8         conditions under which such deposits are

  9         considered premium; including such deposits

10         within the definition of covered claim for

11         certain purposes; providing an effective date.

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

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15         Section 1.  Section 627.4045, Florida Statutes, is

16  created to read:

17         627.4045  Premium security deposits.--

18         (1)  Notwithstanding any other provision of law, an

19  insurer may accept and hold any premium security deposit made

20  by an insured. For purposes of this section, "premium security

21  deposit" means moneys which are deposited with an insurer to

22  secure payment of premium under an insurance contract or

23  agreement.

24         (2)  An insurer may pay interest to the insured on a

25  premium security deposit, which interest may be a fixed or

26  variable amount or may be expressed as a fixed or variable

27  rate or rates.

28         (3)  For purposes of s. 624.509, a premium security

29  deposit shall not be considered as premium until the deposit

30  is used by the insurer to pay any earned premium obligation of

31  the insured.

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






    Florida House of Representatives - 1999                 HB 791

    578-121-99






  1         (4)  Any premium security deposit given to an insurer

  2  by an insured under this section shall be included in the

  3  definition of "covered claim" for purposes of chapter 631.

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

  5  law.

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  8                          HOUSE SUMMARY

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      Authorizes insurers to accept and hold premium security
10    deposits made by insureds to secure payment of premium
      under an insurance contract. Authorizes insurers to pay
11    interest on such deposits. Specifies such deposits to be
      considered premium when used to pay earned premium
12    obligations of an insured.

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