House Bill hb1247c2

    Florida House of Representatives - 2002          CS/CS/HB 1247

        By the Council for Competitive Commerce and Committee on
    Insurance and Representatives Ross and Melvin





  1                      A bill to be entitled

  2         An act relating to premium financing; amending

  3         s. 627.901, F.S.; providing for calculation of

  4         certain interest charges; authorizing billing

  5         interest in installments; amending s. 627.902,

  6         F.S.; authorizing insurers, subsidiaries,

  7         corporations, or groups of insurers to impose

  8         certain additional service charges and fees;

  9         providing an effective date.

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

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13         Section 1.  Subsection (1) of section 627.901, Florida

14  Statutes, is amended to read:

15         627.901  Premium financing by an insurance agent or

16  agency.--

17         (1)  A general lines agent may make reasonable service

18  charges for financing insurance premiums on policies issued or

19  business produced by such an agent or agency, s. 626.9541

20  notwithstanding.  The service charge shall not exceed $1 per

21  installment, or a $6 total service charge per year, for any

22  premium balance of $120 or less.  For any premium balance

23  greater than $120 but not more than $220, the service charge

24  shall not exceed $9 per year.  The maximum service charge for

25  any premium balance greater than $220 shall not exceed $12 per

26  year.  In lieu of such service charges, an insurance agent or

27  agency, at the sole discretion of such agent or agency, may

28  charge a rate of interest not to exceed 18 percent simple

29  interest per year on:

30         (a)  The unpaid balance; or

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    Florida House of Representatives - 2002          CS/CS/HB 1247

    402-147-02






  1         (b)  The average unpaid balance as billed over the term

  2  of the policy and subject to endorsement changes. The interest

  3  authorized by this paragraph may be billed in equal

  4  installments.

  5         Section 2.  Section 627.902, Florida Statutes, is

  6  amended to read:

  7         627.902  Premium financing by an insurer or

  8  subsidiary.--An insurer, a subsidiary of an insurer, or a

  9  corporation under substantially the same management or control

10  as an authorized insurer or group of authorized insurers may

11  finance property, casualty, surety, and marine insurance

12  premiums on policies issued or business produced by such

13  insurer or insurers; however, any such insurer, subsidiary, or

14  corporation or group of insurers that charges a the total

15  service charge per year or rate of interest of which is

16  substantially more than that provided in s. 627.901 shall be

17  subject to part XV of this chapter. Notwithstanding any other

18  provision of law, an insurer, a subsidiary of an insurer, or a

19  corporation under substantially the same management or control

20  as an authorized insurer or group of authorized insurers may

21  charge one-half of the additional charge provided in s.

22  627.840, and the charges provided in s. 627.841.

23         Section 3.  This act shall take effect upon becoming a

24  law.

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