Senate Bill sb0594

    Florida Senate - 2003                                   SB 594

    By Senator Fasano





    11-382-03

  1                      A bill to be entitled

  2         An act relating to motor vehicle insurance;

  3         amending s. 627.7283, F.S.; requiring an

  4         insurer to refund the entire unearned premium

  5         to any member of the armed services who cancels

  6         a policy under certain circumstances; providing

  7         an effective date.

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

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11         Section 1.  Subsection (4) of section 627.7283, Florida

12  Statutes, is amended to read:

13         627.7283  Cancellation; return of premium.--

14         (4)  If the insured cancels, the insurer may retain up

15  to 10 percent of the unearned premium and must refund at least

16  90 percent of the unearned premium.  However, the insurer must

17  refund 100 percent of the unearned premium if the insured is a

18  member of any branch of the United States Armed Services,

19  whether an active or a reserve member, who cancels because he

20  or she has been called to active duty or transferred by the

21  armed services to a location where the insurance is not

22  required. If the insurer cancels, the insurer must refund 100

23  percent of the unearned premium. Cancellation is without

24  prejudice to any claim originating prior to the effective date

25  of the cancellation.  For purposes of this section, unearned

26  premiums must be computed on a pro rata basis.

27         Section 2.  This act shall take effect upon becoming a

28  law.

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






    Florida Senate - 2003                                   SB 594
    11-382-03




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 2                          SENATE SUMMARY

 3    Requires the insurer to refund the entire amount of the
      unearned premium to an insured who cancels a policy of
 4    motor vehicle insurance if the insured is a member of the
      armed forces who is being called to active duty or
 5    transferred to a location where the insurance is not
      required.
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CODING: Words stricken are deletions; words underlined are additions.