House Bill 0791e1

                                           HB 791, First Engrossed



  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 a limitation;

12         providing an 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 627.4045, Florida Statutes, is

17  created to read:

18         627.4045  Premium security deposits.--

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

20  insurer may accept and hold any premium security deposit made

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

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

23  secure payment of premium under an insurance contract or

24  agreement to provide commercial property and casualty lines,

25  including workers' compensation and employers' liability,

26  coverage.

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

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

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

30  rate or rates.

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






                                           HB 791, First Engrossed



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

  2  deposit shall not be considered as premium received until the

  3  deposit is used by the insurer to pay any earned premium

  4  obligation of the insured.

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

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

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

  8         (5)  This section does not apply to Parts XV and XVI of

  9  chapter 627, F.S.

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

11  law.

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