Senate Bill sb2172

    Florida Senate - 2004                                  SB 2172

    By Senator Peaden





    2-1279-04                                           See HB 639

  1                      A bill to be entitled

  2         An act relating to interest payable on death

  3         claim payments; amending s. 627.4615, F.S.;

  4         specifying alternative interest rates for

  5         proceeds payable on death claims; deleting a

  6         minimum rate requirement; providing an

  7         effective date.

  8  

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

10  

11         Section 1.  Section 627.4615, Florida Statutes, is

12  amended to read:

13         627.4615  Interest payable on death claim

14  payments.--When a policy provides for payment of its proceeds

15  in a lump sum upon the death of the insured, the payment must

16  include interest, at an annual rate equal to the or greater

17  of:

18         (1)  The rate for funds left on deposit or the

19  settlement option rate applicable to the policy; or

20         (2)  The current, short-term rate of interest under s.

21  1274(d) of the Internal Revenue Code of 1986, as amended, than

22  the Moody's Corporate Bond Yield Average-Monthly Average

23  Corporate as of the day the claim was received, from the date

24  the insurer receives written due proof of death of the

25  insured. If the method of calculating such index is

26  substantially changed from the method of calculation in use on

27  January 1, 1993, the rate must not be less than 8 percent.

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

29  law.

30  

31  

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