House Bill 0841
CODING: Words stricken are deletions; words underlined are additions.
Florida House of Representatives - 1999 HB 841
By Representative Lawson
1 A bill to be entitled
2 An act relating to insurance; creating s.
3 627.5015, F.S.; prohibiting delivery or
4 issuance of industrial life insurance policies
5 after a certain date; providing application;
6 requiring disclosure of certain information to
7 policyholders or premium payors; amending ss.
8 627.4555 and 627.5045, F.S.; deleting an
9 application exception from certain secondary
10 notice requirements; providing an effective
11 date.
12
13 Be It Enacted by the Legislature of the State of Florida:
14
15 Section 1. Section 627.5015, Florida Statutes, is
16 created to read:
17 627.5015 Industrial life insurance prohibited;
18 application; disclosure.--
19 (1) No policy of industrial life insurance shall be
20 delivered or issued in this state on or after October 1, 1999.
21 (2) Each policy of industrial life insurance that has
22 been issued or delivered in this state prior to October 1,
23 1999, shall be subject to all applicable provisions of the
24 Florida Insurance Code and rules adopted under the code.
25 (3) Each insurer which has in force in this state a
26 policy of industrial life insurance shall annually disclose to
27 the policyholder or premium payor the total amount of premiums
28 paid, the cash value, and the amount of the death benefits
29 payable under such policy.
30 Section 2. Section 627.4555, Florida Statutes, is
31 amended to read:
1
CODING: Words stricken are deletions; words underlined are additions.
Florida House of Representatives - 1999 HB 841
113-271B-99
1 627.4555 Secondary notice.--Except as provided in this
2 section, A contract for life insurance issued or issued for
3 delivery in this state on or after October 1, 1997, covering a
4 natural person 64 years of age or older, which has been in
5 force for at least 1 year, may not be lapsed for nonpayment of
6 premium unless, after expiration of the grace period, and at
7 least 21 days before the effective date of any such lapse, the
8 insurer has mailed a notification of the impending lapse in
9 coverage to the policyowner and to a specified secondary
10 addressee if such addressee has been designated in writing by
11 name and address by the policyowner. An insurer issuing a
12 life insurance contract on or after October 1, 1997, shall
13 notify the applicant of the right to designate a secondary
14 addressee at the time of application for the policy, on a form
15 provided by the insurer, and at any time the policy is in
16 force, by submitting a written notice to the insurer
17 containing the name and address of the secondary addressee.
18 For purposes of any life insurance policy that provides a
19 grace period of more than 51 days for nonpayment of premiums,
20 the notice of impending lapse in coverage required by this
21 section must be mailed to the policyowner and the secondary
22 addressee at least 21 days before the expiration of the grace
23 period provided in the policy. This section does not apply to
24 any life insurance contract under which premiums are payable
25 monthly or more frequently and are regularly collected by a
26 licensed agent or are paid by credit card or any preauthorized
27 check processing or automatic debit service of a financial
28 institution.
29 Section 3. Section 627.5045, Florida Statutes, is
30 amended to read:
31
2
CODING: Words stricken are deletions; words underlined are additions.
Florida House of Representatives - 1999 HB 841
113-271B-99
1 627.5045 Secondary notice.--Except as provided in this
2 section, A contract for an industrial life insurance policy
3 issued or issued for delivery in this state on or after
4 October 1, 1997, for which premiums are paid monthly or more
5 frequently, covering a natural person 64 years of age or older
6 or owned by a natural person 64 years of age or older, which
7 has been in force for at least 1 year, may not be lapsed for
8 nonpayment of premium unless, after expiration of the grace
9 period, and at least 21 days before the effective date of such
10 lapse, the insurer has mailed a notification of the impending
11 lapse in coverage to the policyowner and to a specified
12 secondary addressee if such addressee has been designated in
13 writing by name and address by the policyowner. An insurer
14 issuing an industrial life insurance contract on or after
15 October 1, 1997, shall notify the applicant of the right to
16 designate a secondary addressee at the time of application for
17 the policy on a form provided by the insurer and at any time
18 the policy is in force by submitting a written notice to the
19 insurer containing the name and address of the secondary
20 addressee. This section does not apply to any life insurance
21 contract under which premiums are payable monthly or more
22 frequently and are regularly collected by a licensed agent.
23 Section 4. This act shall take effect October 1, 1999.
24
25 *****************************************
26 HOUSE SUMMARY
27
Prohibits delivery or issuance of industrial life
28 insurance policies in this state after October 1, 1999.
Requires disclosure to policyholders or premium payors of
29 premiums paid, cash value, and amount of death benefits
payable under existing industrial life insurance
30 policies. Provides uniform application of secondary
notice requirements by deleting an exception to such
31 requirements. See bill for details.
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