Senate Bill 0252

    Florida Senate - 2000                                   SB 252

    By Senator Mitchell





    4-244-00

  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 s.

  8         627.5045, F.S.; deleting an application

  9         exception from certain secondary notice

10         requirements; providing an effective date.

11

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

13

14         Section 1.  Section 627.5015, Florida Statutes, is

15  created to read:

16         627.5015  Industrial life insurance prohibited;

17  application; disclosure.--

18         (1)  A policy of industrial life insurance may not be

19  delivered or issued in this state on or after October 1, 2000.

20         (2)  Each policy of industrial life insurance in effect

21  before October 1, 2000, is subject to all applicable

22  provisions of the Florida Insurance Code and rules adopted

23  under the code.

24         (3)  Each insurer that collects premiums in this state

25  for a policy of industrial life insurance must annually

26  disclose to the policyholder or premium payor the total amount

27  of premiums paid, the cash value, and the amount of the death

28  benefits payable under the policy.

29         Section 2.  Section 627.5045, Florida Statutes, is

30  amended to read:

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






    Florida Senate - 2000                                   SB 252
    4-244-00




  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, covering

  5  a natural person 64 years of age or older or owned by a

  6  natural person 64 years of age or older, which has been in

  7  force for at least 1 year, may not be lapsed for nonpayment of

  8  premium unless, after expiration of the grace period, and at

  9  least 21 days before the effective date of such lapse, the

10  insurer has mailed a notification of the impending lapse in

11  coverage to the policyowner and to a specified secondary

12  addressee if such addressee has been designated in writing by

13  name and address by the policyowner. An insurer issuing an

14  industrial life insurance contract on or after October 1,

15  1997, shall notify the applicant of the right to designate a

16  secondary addressee at the time of application for the policy

17  on a form provided by the insurer and at any time the policy

18  is in force by submitting a written notice to the insurer

19  containing the name and address of the secondary addressee.

20  This section does not apply to any life insurance contract

21  under which premiums are payable monthly or more frequently

22  and are regularly collected by a licensed agent.

23         Section 3.  This act shall take effect October 1, 2000.

24

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

26                          SENATE SUMMARY

27    Prohibits the sale of industrial life insurance. Requires
      certain notice before canceling existing policies.
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