| 1 | Representative(s) Brown offered the following: |
| 2 |
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| 3 | Substitute Amendment for Amendment (775501) (with directory |
| 4 | and title amendments) |
| 5 | Remove lines 20-77 and insert: |
| 6 | Section 1. Paragraph (r) is added to subsection (1) of |
| 7 | section 624.605, Florida Statutes, to read: |
| 8 | 624.605 "Casualty insurance" defined.-- |
| 9 | (1) "Casualty insurance" includes: |
| 10 | (r) Insurance for debt cancellation products.--Insurance |
| 11 | that a creditor may purchase against the risk of financial loss |
| 12 | from the use of debt cancellation products with consumer loans |
| 13 | or leases or retail installment contracts. |
| 14 | 1. For purposes of this paragraph, debt cancellation |
| 15 | products, including, but not limited to, debt cancellation |
| 16 | contracts, debt suspension agreements, and guaranteed asset |
| 17 | protection contracts, are loan or lease or retail installment |
| 18 | contract terms, or modifications to loan, lease, or retail |
| 19 | installment contracts, under which a creditor agrees to cancel |
| 20 | or suspend all or part of a customer's obligation to make |
| 21 | payments upon the occurrence of specified events. |
| 22 | 2. Debt cancellation products may be offered by financial |
| 23 | institutions, as defined in s. 655.005(1)(h), and including |
| 24 | insured depository institutions, as defined in 12 U.S.C. s. |
| 25 | 1813(c), and subsidiaries thereof, as provided in the Financial |
| 26 | Institution Codes, or Motor Vehicle Retail Installment Sellers, |
| 27 | as defined in s. 520.02(15) or Retail Lessors, as defined in s. |
| 28 | 521.003(8), Florida Statutes, and such products shall not |
| 29 | constitute insurance for purposes of the Florida Insurance Code. |
| 30 | Section 2. Subsection (3) of section 627.553, Florida |
| 31 | Statutes, is amended to read: |
| 32 | 627.553 Debtor groups.--The lives of a group of |
| 33 | individuals may be insured under a policy issued to a creditor |
| 34 | or its parent holding company, or to a trustee or trustees or |
| 35 | agent designated by two or more creditors, which creditor, |
| 36 | holding company, affiliate, trustee or trustees, or agent shall |
| 37 | be deemed the policyholder, to insure debtors of the creditor or |
| 38 | creditors, subject to the following requirements: |
| 39 | (3) The amount of insurance on the life of any debtor |
| 40 | shall at no time exceed the amount owed by her or him which is |
| 41 | repayable in installments to the creditor or $50,000, whichever |
| 42 | is less, except that loans not exceeding 1 year's duration shall |
| 43 | not be subject to such limits. However, on such loans not |
| 44 | exceeding 1 year's duration, the limit of coverage shall not |
| 45 | exceed $50,000 with any one insurer. |
| 46 | Section 3. Paragraph (b) of subsection (1) of section |
| 47 | 627.679, Florida Statutes, is amended to read: |
| 48 | 627.679 Amount of insurance; disclosure.-- |
| 49 | (1) |
| 50 | (b) The total amount of credit life insurance on the life |
| 51 | of any debtor with respect to any loan or loans covered in one |
| 52 | or more insurance policies shall at no time exceed the amount of |
| 53 | the indebtedness $50,000 with any one creditor, except that |
| 54 | loans not exceeding 1 year's duration shall not be subject to |
| 55 | such limits, and on such loans not exceeding 1 year's duration, |
| 56 | the limits of coverage shall not exceed $50,000 with any one |
| 57 | insurer. |
| 58 | Section 4. Subsection (2) of section 627.681, Florida |
| 59 | Statutes, is amended to read: |
| 60 | 627.681 Term and evidence of insurance.-- |
| 61 | (2) The term of credit disability insurance on any debtor |
| 62 | insured under this section shall not exceed the term of |
| 63 | indebtedness 10 years, and for credit transactions that exceed |
| 64 | 60 months, coverage shall not exceed 60 monthly indemnities. |
| 65 | Section 5. Section 627.902, Florida Statutes, is amended |
| 66 | to read: |
| 67 | 627.902 Premium financing by an insurer or subsidiary.-- |
| 68 | (1) An insurer, a subsidiary of an insurer, or a |
| 69 | corporation under substantially the same management or control |
| 70 | as an authorized insurer or group of authorized insurers may |
| 71 | finance property, casualty, surety, and marine insurance |
| 72 | premiums on policies issued or business produced by such insurer |
| 73 | or insurers; however, any such insurer, subsidiary, or |
| 74 | corporation or group of insurers that charges a total service |
| 75 | charge per year or rate of interest which is substantially more |
| 76 | than that provided in s. 627.901 shall be subject to part XV of |
| 77 | this chapter. Notwithstanding any other provision of law, an |
| 78 | insurer, a subsidiary of an insurer, or a corporation under |
| 79 | substantially the same management or control as an authorized |
| 80 | insurer or group of authorized insurers may charge one-half of |
| 81 | the additional charge provided in s. 627.840, and the charges |
| 82 | provided in s. 627.841. |
| 83 | (2) Nothing in this part or in part XV shall disallow or |
| 84 | otherwise apply to a discount for those who pay the entire |
| 85 | premium for the entire policy term at the inception of the term |
| 86 | if the discount is found to be actuarially justified by the |
| 87 | office and approved by the office pursuant to the provisions of |
| 88 | part I of this chapter. Such actuarially justified and approved |
| 89 | discount shall not be deemed a component of or related to |
| 90 | premium financing. |
| 91 | Section 6. Section 628.511, Florida Statutes, is amended |
| 92 | to read: |
| 93 | 628.511 Clearing corporations Book entry accounting |
| 94 | system.-- |
| 95 | (1) The purpose of this section is to authorize domestic |
| 96 | insurers to utilize modern systems for holding and transferring |
| 97 | securities without physical delivery of securities certificates, |
| 98 | subject to appropriate rules of the commission. |
| 99 | (2) The following terms are defined for use in this |
| 100 | section: |
| 101 | (a) "Securities" means instruments as defined in s. |
| 102 | 678.1021. |
| 103 | (b) "Clearing corporation" means a clearing corporation as |
| 104 | defined in s. 678.1021. The term "clearing corporation" also |
| 105 | includes "treasury/reserve automated debt entry securities |