House Bill 0021c1

    Florida House of Representatives - 2000               CS/HB 21

        By the Committee on Insurance and Representative Ogles






  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 to provide commercial property and casualty lines

24  coverage, including workers' compensation and employers'

25  liability coverage.

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

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

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

29  rate or rates.

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

31  deposit shall not be considered as premium received until the

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






    Florida House of Representatives - 2000               CS/HB 21

    200-531-00






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

  2  obligation of the insured.

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

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

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

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

  7  law.

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