Florida Senate - 2006 SENATOR AMENDMENT
Bill No. CS for SB 2522
Barcode 641586
CHAMBER ACTION
Senate House
.
.
1 .
.
2 .
.
3 Floor: WD/2R .
04/27/2006 08:09 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 and leases.
25 1. For purposes of this paragraph, debt cancellation
26 products, including, but not limited to, debt cancellation
27 contracts, debt suspension agreements, and guaranteed asset
28 protection contracts, are loan and lease contract terms, or
29 modifications to loan or lease contracts, under which a
30 creditor agrees to cancel or suspend all or part of a
31 customer's obligation to make payments upon the occurrence of
1
2:44 PM 04/27/06 s2522c1d-24-tm6
Florida Senate - 2006 SENATOR AMENDMENT
Bill No. CS for SB 2522
Barcode 641586
1 specified adverse events.
2 2. Debt cancellation products may be offered by
3 financial institutions, as defined in s. 655.005(1)(h),
4 pursuant to the same terms and conditions as products offered
5 by depository institutions, as defined in 12 U.S.C. s.
6 1813(c), or federal credit unions, as defined in 12 U.S.C. s.
7 1752(1), and such products shall not constitute insurance for
8 purposes of the Florida Insurance Code.
9 Section 2. Subsection (3) of section 627.553, Florida
10 Statutes, is amended to read:
11 627.553 Debtor groups.--The lives of a group of
12 individuals may be insured under a policy issued to a creditor
13 or its parent holding company, or to a trustee or trustees or
14 agent designated by two or more creditors, which creditor,
15 holding company, affiliate, trustee or trustees, or agent
16 shall be deemed the policyholder, to insure debtors of the
17 creditor or creditors, subject to the following requirements:
18 (3) The amount of insurance on the life of any debtor
19 shall at no time exceed the amount owed by her or him which is
20 repayable in installments to the creditor or $50,000,
21 whichever is less, except that loans not exceeding 1 year's
22 duration shall not be subject to such limits. However, on such
23 loans not exceeding 1 year's duration, the limit of coverage
24 shall not exceed $50,000 with any one insurer.
25 Section 3. Paragraph (b) of subsection (1) of section
26 627.679, Florida Statutes, is amended to read:
27 627.679 Amount of insurance; disclosure.--
28 (1)
29 (b) The total amount of credit life insurance on the
30 life of any debtor with respect to any loan or loans covered
31 in one or more insurance policies shall at no time exceed the
2
2:44 PM 04/27/06 s2522c1d-24-tm6
Florida Senate - 2006 SENATOR AMENDMENT
Bill No. CS for SB 2522
Barcode 641586
1 amount of the indebtedness $50,000 with any one creditor,
2 except that loans not exceeding 1 year's duration shall not be
3 subject to such limits, and on such loans not exceeding 1
4 year's duration, the limits of coverage shall not exceed
5 $50,000 with any one insurer.
6 Section 4. Subsection (2) of section 627.681, Florida
7 Statutes, is amended to read:
8 627.681 Term and evidence of insurance.--
9 (2) The term of credit disability insurance on any
10 debtor insured under this section shall not exceed the term of
11 indebtedness 10 years, and for credit transactions that exceed
12 60 months, coverage shall not exceed 60 monthly indemnities.
13 Section 5. This act shall take effect upon becoming a
14 law.
15
16
17 ================ T I T L E A M E N D M E N T ===============
18 And the title is amended as follows:
19 Delete everything before the enacting clause
20
21 and insert:
22 A bill to be entitled
23 An act relating to insurance; amending s.
24 624.605, F.S.; including debt cancellation
25 products within the definition of the term
26 "casualty insurance"; describing debt
27 cancellation products; authorizing certain
28 entities to offer debt cancellation products
29 under certain circumstances; specifying such
30 products as not constituting insurance;
31 amending ss. 627.553 and 627.679, F.S.;
3
2:44 PM 04/27/06 s2522c1d-24-tm6
Florida Senate - 2006 SENATOR AMENDMENT
Bill No. CS for SB 2522
Barcode 641586
1 revising certain limitations on certain amounts
2 of life insurance on a debtor; amending s.
3 627.681, F.S.; revising a limitation on the
4 term of credit disability insurance; providing
5 an effective date.
6
7
8
9
10
11
12
13
14
15
16
17
18
19
20
21
22
23
24
25
26
27
28
29
30
31
4
2:44 PM 04/27/06 s2522c1d-24-tm6