HB 0513, Engrossed 1 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	revising limits on service charges for premium financing;
10	providing an effective date.
11
12	Be It Enacted by the Legislature of the State of Florida:
13
14	Section 1. Subsection (1) of section 627.4035, Florida
15	Statutes, is amended to read:
16	627.4035 Cash payment of premiums; claims.--
17	(1) The premiums for insurance contracts issued in this
18	state or covering risk located in this state shall be paid in
19	cash consisting of coins, currency, checks, or money orders or
20	by using a debit card, credit card, automatic electronic funds
21	transfer, or payroll deduction plan.
22	Section 2. Subsection (9) is added to section 627.7015,
23	Florida Statutes, to read:
24	627.7015 Alternative procedure for resolution of disputed
25	property insurance claims.--
26	(9) For purposes of this section, the term "claim" refers
27	to any dispute between an insurer and an insured relating to a
28	material issue of fact other than a dispute:
29	(a) With respect to which the insurer has a reasonable
30	basis to suspect fraud;
31	(b) Where, based on agreed-upon facts as to the cause of
32	loss, there is no coverage under the policy;
33	(c) With respect to which the insurer has a reasonable
34	basis to believe that the claimant has intentionally made a
35	material misrepresentation of fact which is relevant to the
36	claim, and the entire request for payment of a loss has been
37	denied on the basis of the material misrepresentation; or
38	(d) With respect to which the amount in controversy is
39	less than $500, unless the parties agree to mediate a dispute
40	involving a lesser amount.
41	Section 3. Subsection (1) of section 627.901, Florida
42	Statutes, is amended to read:
43	627.901 Premium financing by an insurance agent or
44	agency.--
45	(1) A general lines agent may make reasonable service
46	charges for financing insurance premiums on policies issued or
47	business produced by such an agent or agency, s. 626.9541
48	notwithstanding. The service charge shall not exceed $3$1per
49	installment, or a $6 total service charge per year, for any
50	premium balance of $120 or less. For any premium balance greater
51	than $120 but not more than $220, the service charge shall not
52	exceed $9 per year. The maximum service charge for any premium
53	balance greater than $220 shall not exceed $36$12per year. In
54	lieu of such service charges, an insurance agent or agency, at
55	the sole discretion of such agent or agency, may charge a rate
56	of interest not to exceed 18 percent simple interest per year
57	on:
58	(a) The unpaid balance; or
59	(b) The average unpaid balance as billed over the term of
60	the policy and subject to endorsement changes. The interest
61	authorized by this paragraph may be billed in equal
62	installments.
63	Section 4. This act shall take effect upon becoming a law.