Florida Senate - 2006 SENATOR AMENDMENT
Bill No. CS for SB 2522
Barcode 421392
CHAMBER ACTION
Senate House
.
.
1 .
.
2 .
.
3 Floor: WD/2R .
05/02/2006 02:16 PM .
4 ______________________________________________________________
5
6
7
8
9
10 ______________________________________________________________
11 Senator Posey moved the following amendment:
12
13 Senate Amendment (with title amendment)
14 Delete everything after the enacting clause
15
16 and insert:
17 Section 1. Paragraph (r) is added to subsection (1) of
18 section 624.605, Florida Statutes, to read:
19 624.605 "Casualty insurance" defined.--
20 (1) "Casualty insurance" includes:
21 (r) Insurance for debt cancellation
22 products.--Insurance that a creditor may purchase against the
23 risk of financial loss from the use of debt cancellation
24 products with consumer loans or leases or retail installment
25 contracts.
26 1. For purposes of this paragraph, debt cancellation
27 products, including, but not limited to, debt cancellation
28 contracts, debt suspension agreements, and guaranteed asset
29 protection contracts, are loan or lease or retail installment
30 contract terms, or modifications to loan, lease, or retail
31 installment contracts, under which a creditor agrees to cancel
1
6:42 PM 04/27/06 s2522c1d-24-t01
Florida Senate - 2006 SENATOR AMENDMENT
Bill No. CS for SB 2522
Barcode 421392
1 or suspend all or part of a customer's obligation to make
2 payments upon the occurrence of specified events.
3 2. Debt cancellation products may be offered by
4 financial institutions, as defined in s. 655.005(1)(h), and
5 including insured depository institutions, as defined in 12
6 U.S.C. s. 1813(c), and subsidiaries thereof, as provided in
7 the Financial Institution Codes, or Motor Vehicle Retail
8 Installment Sellers, as defined in s. 520.02(15) or Retail
9 Lessors, as defined in s. 521.003(8), Florida Statutes, and
10 such products shall not constitute insurance for purposes of
11 the Florida Insurance Code.
12 Section 2. Subsection (3) of section 627.553, Florida
13 Statutes, is amended to read:
14 627.553 Debtor groups.--The lives of a group of
15 individuals may be insured under a policy issued to a creditor
16 or its parent holding company, or to a trustee or trustees or
17 agent designated by two or more creditors, which creditor,
18 holding company, affiliate, trustee or trustees, or agent
19 shall be deemed the policyholder, to insure debtors of the
20 creditor or creditors, subject to the following requirements:
21 (3) The amount of insurance on the life of any debtor
22 shall at no time exceed the amount owed by her or him which is
23 repayable in installments to the creditor or $50,000,
24 whichever is less, except that loans not exceeding 1 year's
25 duration shall not be subject to such limits. However, on such
26 loans not exceeding 1 year's duration, the limit of coverage
27 shall not exceed $50,000 with any one insurer.
28 Section 3. Paragraph (b) of subsection (1) of section
29 627.679, Florida Statutes, is amended to read:
30 627.679 Amount of insurance; disclosure.--
31 (1)
2
6:42 PM 04/27/06 s2522c1d-24-t01
Florida Senate - 2006 SENATOR AMENDMENT
Bill No. CS for SB 2522
Barcode 421392
1 (b) The total amount of credit life insurance on the
2 life of any debtor with respect to any loan or loans covered
3 in one or more insurance policies shall at no time exceed the
4 amount of the indebtedness $50,000 with any one creditor,
5 except that loans not exceeding 1 year's duration shall not be
6 subject to such limits, and on such loans not exceeding 1
7 year's duration, the limits of coverage shall not exceed
8 $50,000 with any one insurer.
9 Section 4. Subsection (2) of section 627.681, Florida
10 Statutes, is amended to read:
11 627.681 Term and evidence of insurance.--
12 (2) The term of credit disability insurance on any
13 debtor insured under this section shall not exceed the term of
14 indebtedness 10 years, and for credit transactions that exceed
15 60 months, coverage shall not exceed 60 monthly indemnities.
16 Section 5. Section 627.902, Florida Statutes, is
17 amended to read:
18 627.902 Premium financing by an insurer or
19 subsidiary.--
20 (1) An insurer, a subsidiary of an insurer, or a
21 corporation under substantially the same management or control
22 as an authorized insurer or group of authorized insurers may
23 finance property, casualty, surety, and marine insurance
24 premiums on policies issued or business produced by such
25 insurer or insurers; however, any such insurer, subsidiary, or
26 corporation or group of insurers that charges a total service
27 charge per year or rate of interest which is substantially
28 more than that provided in s. 627.901 shall be subject to part
29 XV of this chapter. Notwithstanding any other provision of
30 law, an insurer, a subsidiary of an insurer, or a corporation
31 under substantially the same management or control as an
3
6:42 PM 04/27/06 s2522c1d-24-t01
Florida Senate - 2006 SENATOR AMENDMENT
Bill No. CS for SB 2522
Barcode 421392
1 authorized insurer or group of authorized insurers may charge
2 one-half of the additional charge provided in s. 627.840, and
3 the charges provided in s. 627.841.
4 (2) Nothing in this part or in part XV shall disallow
5 or otherwise apply to a discount for those who pay the entire
6 premium for the entire policy term at the inception of the
7 term if the discount is found to be actuarially justified by
8 the office and approved by the office pursuant to the
9 provisions of part I of this chapter. Such actuarially
10 justified and approved discount shall not be deemed a
11 component of or related to premium financing.
12 Section 6. Section 628.511, Florida Statutes, is
13 amended to read:
14 628.511 Clearing corporations Book entry accounting
15 system.--
16 (1) The purpose of this section is to authorize
17 domestic insurers to utilize modern systems for holding and
18 transferring securities without physical delivery of
19 securities certificates, subject to appropriate rules of the
20 commission.
21 (2) The following terms are defined for use in this
22 section:
23 (a) "Securities" means instruments as defined in s.
24 678.1021.
25 (b) "Clearing corporation" means a clearing
26 corporation as defined in s. 678.1021. The term "clearing
27 corporation" also includes "treasury/reserve automated debt
28 entry securities system" and "treasury direct" book-entry
29 securities systems as established pursuant to 31 U.S.C. ss.
30 3100 et seq., 12 U.S.C. 391 and 5 U.S.C. 301.
31 (c) "Custodian" "Direct participant" means a national
4
6:42 PM 04/27/06 s2522c1d-24-t01
Florida Senate - 2006 SENATOR AMENDMENT
Bill No. CS for SB 2522
Barcode 421392
1 bank, state bank or trust company, or broker or dealer that
2 which maintains an account in its name in a clearing
3 corporation and through which an insurance company
4 participates in a clearing corporation.
5 (d) "Federal Reserve book-entry system" means the
6 computerized systems sponsored by the United States Department
7 of the Treasury and agencies and instrumentalities of the
8 United States for holding and transferring securities of the
9 United States Government and such agencies and
10 instrumentalities, respectively, in Federal Reserve banks
11 through banks which are members of the Federal Reserve System
12 or which otherwise have access to such computerized systems.
13 (e) "Member bank" means a national bank, state bank or
14 trust company which is a member of the Federal Reserve System
15 and through which an insurer participates in the Federal
16 Reserve book-entry system.
17 (3) Notwithstanding any other provision of law, a
18 domestic insurer may deposit or arrange for the deposit of
19 securities held in or purchased for its general account and
20 its separate accounts in a clearing corporation or in the
21 Federal Reserve book-entry system. When securities are
22 deposited with a clearing corporation, certificates
23 representing securities of the same class of the same issuer
24 may be merged and held in bulk in the name of the nominee of
25 such clearing corporation with any other securities deposited
26 with such clearing corporation by any person, regardless of
27 the ownership of such securities, and certificates
28 representing securities of small denominations may be merged
29 into one or more certificates of larger denominations. The
30 records of any custodian bank through which an insurer holds
31 securities in the Federal Reserve book-entry system, and the
5
6:42 PM 04/27/06 s2522c1d-24-t01
Florida Senate - 2006 SENATOR AMENDMENT
Bill No. CS for SB 2522
Barcode 421392
1 records of any custodian banks through which an insurer holds
2 securities in a clearing corporation, shall at all times show
3 that such securities are held for such insurer and for which
4 accounts thereof. Ownership of, and other interests in, such
5 securities may be transferred by bookkeeping entry on the
6 books of such clearing corporation or in the Federal Reserve
7 book-entry system without, in either case, physical delivery
8 of certificates representing such securities.
9 (4) The commission may adopt rules governing the
10 deposit by insurers of securities with clearing corporations
11 and in the Federal Reserve book-entry system.
12 Section 7. Section 655.947, Florida Statutes, is
13 created to read:
14 655.947 Debt cancellation products.--
15 (1) Debt cancellation products, including, but not
16 limited to, debt cancellation contracts, debt suspension
17 agreements, and guaranteed asset protection contracts, are
18 loan or lease contract terms, or modifications to loan or
19 lease contracts, under which a creditor agrees to cancel or
20 suspend all or part of a customer's obligation to make
21 payments upon the occurrence of specified events. Debt
22 cancellation products may be offered, and a fee charged, by
23 financial institutions and their subsidiaries subject to the
24 provisions of this section. As used in this section, the term
25 "financial institutions" includes those as defined in s.
26 655.005(1)(h) and insured depository institutions as defined
27 in 12 U.S.C. s. 1813.
28 (2) The commission shall adopt rules to administer
29 this section, such rules shall be consistent with 12 C.F.R.
30 part 37, as amended.
31
6
6:42 PM 04/27/06 s2522c1d-24-t01
Florida Senate - 2006 SENATOR AMENDMENT
Bill No. CS for SB 2522
Barcode 421392
1 ================ T I T L E A M E N D M E N T ===============
2 And the title is amended as follows:
3 Delete everything before the enacting clause
4
5 and insert:
6 A bill to be entitled
7 An act relating to insurance; amending 627.681,
8 F.S.; revising a provision relating to the term
9 and evidence of insurance; amending s. 627.902,
10 F.S.; exempting certain lump-sum premium
11 payments from provisions relating to premium
12 financing; amending s. 628.511, F.S.; revising
13 the definitions of the terms "clearing
14 corporation" and "custodian"; deleting
15 definitions of the terms "book entry system"
16 and "member bank"; conforming changes; amending
17 s. 655.947, F.S.; providing what constitutes a
18 debt cancellation product; providing a
19 definition; providing an effective date.
20
21
22
23
24
25
26
27
28
29
30
31
7
6:42 PM 04/27/06 s2522c1d-24-t01