Senate Bill sb2428

CODING: Words stricken are deletions; words underlined are additions.
    Florida Senate - 2003                                  SB 2428

    By Senator Atwater





    25-1346-03                                          See HB 513

  1                      A bill to be entitled

  2         An act relating to insurance claims and premium

  3         payments; amending s. 627.4035, F.S.; providing

  4         for the payment of insurance premiums by a

  5         debit or credit card, automatic electronic

  6         funds transfer, or payroll deduction plan;

  7         amending s. 627.7015, F.S.; defining "claim"

  8         for purposes of alternative procedures for

  9         resolution of disputed property insurance

10         claims; amending s. 627.901, F.S.; authorizing

11         certain agents and insurers to provide periodic

12         payment plans, including stated administrative

13         charges under certain circumstances; providing

14         an effective date.

15  

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

17  

18         Section 1.  Subsection (1) of section 627.4035, Florida

19  Statutes, is amended to read:

20         627.4035  Cash payment of premiums; claims.--

21         (1)  The premiums for insurance contracts issued in

22  this state or covering risk located in this state shall be

23  paid in cash consisting of coins, currency, checks, or money

24  orders or by using a debit card, credit card, automatic

25  electronic funds transfer, or payroll deduction plan.

26         Section 2.  Subsection (9) is added to section

27  627.7015, Florida Statutes, to read:

28         627.7015  Alternative procedure for resolution of

29  disputed property insurance claims.--

30  

31  

                                  1

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






    Florida Senate - 2003                                  SB 2428
    25-1346-03                                          See HB 513




 1         (9)  For purposes of this section, the term "claim"

 2  refers to any dispute between an insurer and an insured

 3  relating to a material issue of fact other than a dispute:

 4         (a)  With respect to which the insurer has a reasonable

 5  basis to suspect fraud;

 6         (b)  Where, based on agreed-upon facts as to the cause

 7  of loss, there is no coverage under the policy;

 8         (c)  With respect to which the insurer has a reasonable

 9  basis to believe that the claimant has intentionally made a

10  material misrepresentation of fact which is relevant to the

11  claim, and the entire request for payment of a loss has been

12  denied on the basis of the material misrepresentation; or

13         (d)  With respect to which the amount in controversy is

14  less than $500, unless the parties agree to mediate a dispute

15  involving a lesser amount.

16         Section 3.  Subsection (3) is added to section 627.901,

17  Florida Statutes, to read:

18         627.901  Premium financing by an insurance agent or

19  agency.--

20         (3)  Notwithstanding any other provision of law, a

21  general lines agent or insurer may make available to

22  policyholders a periodic payment plan that includes stated

23  administrative charges if:

24         (a)  The charges for such plan are clearly disclosed to

25  the policyholder.

26         (b)  There is no debtor-creditor relationship between

27  the insurer or the agent and the policyholder.

28         (c)  There is no coercion by the agent or insurer to

29  use the periodic payment plan as a method of payment of

30  premiums.

31  

                                  2

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






    Florida Senate - 2003                                  SB 2428
    25-1346-03                                          See HB 513




 1         (d)  Participation in the periodic payment plan is

 2  optional and is not a precondition to the insurer's acceptance

 3  for the risk.

 4         Section 4.  This act shall take effect upon becoming a

 5  law.

 6  

 7  

 8  

 9  

10  

11  

12  

13  

14  

15  

16  

17  

18  

19  

20  

21  

22  

23  

24  

25  

26  

27  

28  

29  

30  

31  

                                  3

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