HB 0513 2003
1	A bill to be entitled
2	An act relating to insurance claims and premium payments;
3	amending s. 627.4035, F.S.; providing for the payment of
4	insurance premiums by a debit or credit card, automatic
5	electronic funds transfer, or payroll deduction plan;
6	amending s. 627.7015, F.S.; defining "claim" for purposes
7	of alternative procedures for resolution of disputed
8	property insurance claims; amending s. 627.901, F.S.;
9	authorizing certain agents and insurers to provide
10	periodic payment plans, including stated administrative
11	charges under certain circumstances; providing an
12	effective date.
13
14	Be It Enacted by the Legislature of the State of Florida:
15
16	Section 1. Subsection (1) of section 627.4035, Florida
17	Statutes, is amended to read:
18	627.4035 Cash payment of premiums; claims.--
19	(1) The premiums for insurance contracts issued in this
20	state or covering risk located in this state shall be paid in
21	cash consisting of coins, currency, checks, or money orders or
22	by using a debit card, credit card, automatic electronic funds
23	transfer, or payroll deduction plan.
24	Section 2. Subsection (9) is added to section 627.7015,
25	Florida Statutes, to read:
26	627.7015 Alternative procedure for resolution of disputed
27	property insurance claims.--
28	(9) For purposes of this section, the term "claim" refers
29	to any dispute between an insurer and an insured relating to a
30	material issue of fact other than a dispute:
31	(a) With respect to which the insurer has a reasonable
32	basis to suspect fraud;
33	(b) Where, based on agreed-upon facts as to the cause of
34	loss, there is no coverage under the policy;
35	(c) With respect to which the insurer has a reasonable
36	basis to believe that the claimant has intentionally made a
37	material misrepresentation of fact which is relevant to the
38	claim, and the entire request for payment of a loss has been
39	denied on the basis of the material misrepresentation; or
40	(d) With respect to which the amount in controversy is
41	less than $500, unless the parties agree to mediate a dispute
42	involving a lesser amount.
43	Section 3. Subsection (3) is added to section 627.901,
44	Florida Statutes, to read:
45	627.901 Premium financing by an insurance agent or
46	agency.--
47	(3) Notwithstanding any other provision of law, a general
48	lines agent or insurer may make available to policyholders a
49	periodic payment plan that includes stated administrative
50	charges if:
51	(a) The charges for such plan are clearly disclosed to the
52	policyholder.
53	(b) There is no debtor-creditor relationship between the
54	insurer or the agent and the policyholder.
55	(c) There is no coercion by the agent or insurer to use
56	the periodic payment plan as a method of payment of premiums.
57	(d) Participation in the periodic payment plan is optional
58	and is not a precondition to the insurer’s acceptance for the
59	risk.
60	Section 4. This act shall take effect upon becoming a law.