Florida Senate - 2006                        SENATOR AMENDMENT
    Bill No. CS for CS for SB 1980
                        Barcode 150954
                            CHAMBER ACTION
              Senate                               House
                                   .                    
                                   .                    
 1                                 .                    
                                   .                    
 2                                 .                    
                                   .                    
 3         Floor: 1bb/AD/2R        .                    
       05/05/2006 12:49 PM         .                    
 4  ______________________________________________________________
 5  
 6  
 7  
 8  
 9  
10  ______________________________________________________________
11  Senator Posey moved the following amendment to amendment
12  (021596):
13  
14         Senate Amendment (with title amendment) 
15         On page 128, between lines 18 and 19,
16  
17  insert:  
18         Section 42.  Subsection (1) and paragraph (b) of
19  subsection (2) of section 627.4133, Florida Statutes, are
20  amended to read:
21         627.4133  Notice of cancellation, nonrenewal, or
22  renewal premium.--
23         (1)  Except as provided in subsection (2):
24         (a)  An insurer issuing a policy providing coverage for
25  workers' compensation and employer's liability insurance,
26  property, casualty, except mortgage guaranty, surety, or
27  marine insurance, other than motor vehicle insurance subject
28  to s. 627.728, shall give the named insured at least 45 days'
29  advance written notice of nonrenewal or of the renewal
30  premium. If the policy is not to be renewed, the written
31  notice shall state the reason or reasons as to why the policy
                                  1
    2:55 PM   05/04/06                             s1980c2c-24-tlk

Florida Senate - 2006 SENATOR AMENDMENT Bill No. CS for CS for SB 1980 Barcode 150954 1 is not to be renewed. This requirement applies only if the 2 insured has furnished all of the necessary information so as 3 to enable the insurer to develop the renewal premium prior to 4 the expiration date of the policy to be renewed. 5 (b) An insurer issuing a policy providing coverage for 6 property, casualty, except mortgage guaranty, surety, or 7 marine insurance, other than motor vehicle insurance subject 8 to s. 627.728 or s. 627.7281, shall give the named insured 9 written notice of cancellation or termination other than 10 nonrenewal at least 45 days prior to the effective date of the 11 cancellation or termination, including in the written notice 12 the reason or reasons for the cancellation or termination, 13 except that: 14 1. When cancellation is for nonpayment of premium, at 15 least 10 days' written notice of cancellation accompanied by 16 the reason therefor shall be given. As used in this 17 subparagraph, the term "nonpayment of premium" means failure 18 of the named insured to discharge when due any of her or his 19 obligations in connection with the payment of premiums on a 20 policy or any installment of such premium, whether the premium 21 is payable directly to the insurer or its agent or indirectly 22 under any premium finance plan or extension of credit, or 23 failure to maintain membership in an organization if such 24 membership is a condition precedent to insurance coverage. 25 "Nonpayment of premium" also means the failure of a financial 26 institution to honor an insurance applicant's check after 27 delivery to a licensed agent for payment of a premium, even if 28 the agent has previously delivered or transferred the premium 29 to the insurer. If a dishonored check represents the initial 30 premium payment, the contract and all contractual obligations 31 shall be void ab initio unless the nonpayment is cured within 2 2:55 PM 05/04/06 s1980c2c-24-tlk
Florida Senate - 2006 SENATOR AMENDMENT Bill No. CS for CS for SB 1980 Barcode 150954 1 the earlier of 5 days after actual notice by certified mail is 2 received by the applicant or 15 days after notice is sent to 3 the applicant by certified mail or registered mail, and if the 4 contract is void, any premium received by the insurer from a 5 third party shall be refunded to that party in full; and 6 2. When such cancellation or termination occurs during 7 the first 90 days during which the insurance is in force and 8 the insurance is canceled or terminated for reasons other than 9 nonpayment of premium, at least 20 days' written notice of 10 cancellation or termination accompanied by the reason therefor 11 shall be given except where there has been a material 12 misstatement or misrepresentation or failure to comply with 13 the underwriting requirements established by the insurer. 14 15 After the policy has been in effect for 90 days, no such 16 policy shall be canceled by the insurer except when there has 17 been a material misstatement, a nonpayment of premium, a 18 failure to comply with underwriting requirements established 19 by the insurer within 90 days of the date of effectuation of 20 coverage, or a substantial change in the risk covered by the 21 policy or when the cancellation is for all insureds under such 22 policies for a given class of insureds. The provisions of This 23 subsection does shall not apply to individually rated risks 24 having a policy term of less than 90 days. 25 (c) If an insurer fails to provide the 45-day or 26 20-day written notice required under this section, the 27 coverage provided to the named insured shall remain in effect 28 until 45 days after the notice is given or until the effective 29 date of replacement coverage obtained by the named insured, 30 whichever occurs first. The premium for the coverage shall 31 remain the same during any such extension period except that, 3 2:55 PM 05/04/06 s1980c2c-24-tlk
Florida Senate - 2006 SENATOR AMENDMENT Bill No. CS for CS for SB 1980 Barcode 150954 1 in the event of failure to provide notice of nonrenewal, if 2 the rate filing then in effect would have resulted in a 3 premium reduction, the premium during such extension of 4 coverage shall be calculated based upon the later rate filing. 5 (2) With respect to any personal lines or commercial 6 residential property insurance policy, including, but not 7 limited to, any homeowner's, mobile home owner's, farmowner's, 8 condominium association, condominium unit owner's, apartment 9 building, or other policy covering a residential structure or 10 its contents: 11 (b) The insurer shall give the named insured written 12 notice of nonrenewal, cancellation, or termination at least 90 13 days prior to the effective date of the nonrenewal, 14 cancellation, or termination. The notice must include the 15 reason or reasons for the nonrenewal, cancellation, or 16 termination, except that: 17 1. When cancellation is for nonpayment of premium, at 18 least 10 days' written notice of cancellation accompanied by 19 the reason therefor shall be given. As used in this 20 subparagraph, the term "nonpayment of premium" means failure 21 of the named insured to discharge when due any of her or his 22 obligations in connection with the payment of premiums on a 23 policy or any installment of such premium, whether the premium 24 is payable directly to the insurer or its agent or indirectly 25 under any premium finance plan or extension of credit, or 26 failure to maintain membership in an organization if such 27 membership is a condition precedent to insurance coverage. 28 "Nonpayment of premium" also means the failure of a financial 29 institution to honor an insurance applicant's check after 30 delivery to a licensed agent for payment of a premium, even if 31 the agent has previously delivered or transferred the premium 4 2:55 PM 05/04/06 s1980c2c-24-tlk
Florida Senate - 2006 SENATOR AMENDMENT Bill No. CS for CS for SB 1980 Barcode 150954 1 to the insurer. If a dishonored check represents the initial 2 premium payment, the contract and all contractual obligations 3 shall be void ab initio unless the nonpayment is cured within 4 the earlier of 5 days after actual notice by certified mail is 5 received by the applicant or 15 days after notice is sent to 6 the applicant by certified mail or registered mail, and if the 7 contract is void, any premium received by the insurer from a 8 third party shall be refunded to that party in full. 9 2. When such cancellation or termination occurs during 10 the first 90 days during which the insurance is in force and 11 the insurance is canceled or terminated for reasons other than 12 nonpayment of premium, at least 20 days' written notice of 13 cancellation or termination accompanied by the reason therefor 14 shall be given except where there has been a material 15 misstatement or misrepresentation or failure to comply with 16 the underwriting requirements established by the insurer. 17 18 After the policy has been in effect for 90 days, the policy 19 shall not be canceled by the insurer except when there has 20 been a material misstatement, a nonpayment of premium, a 21 failure to comply with underwriting requirements established 22 by the insurer within 90 days of the date of effectuation of 23 coverage, or a substantial change in the risk covered by the 24 policy or when the cancellation is for all insureds under such 25 policies for a given class of insureds. This paragraph does 26 not apply to individually rated risks having a policy term of 27 less than 90 days. 28 29 (Redesignate subsequent sections.) 30 31 5 2:55 PM 05/04/06 s1980c2c-24-tlk
Florida Senate - 2006 SENATOR AMENDMENT Bill No. CS for CS for SB 1980 Barcode 150954 1 ================ T I T L E A M E N D M E N T =============== 2 And the title is amended as follows: 3 On page 140, line 25, after the semicolon, 4 5 insert: 6 amending s. 627.4133, F.S.; defining the term 7 "nonpayment of premium" for purposes of 8 insurance contracts; 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 25 26 27 28 29 30 31 6 2:55 PM 05/04/06 s1980c2c-24-tlk