Senate Bill sb2522
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Florida Senate - 2006 SB 2522
By Senator Posey
24-1421-06
1 A bill to be entitled
2 An act relating to insurance; amending s.
3 624.605, F.S.; including insurance against the
4 risk of loss which is assumed by a creditor
5 under a debt-cancellation agreement or
6 debt-suspension agreement within the definition
7 of the term "casualty insurance"; amending s.
8 627.553, F.S.; revising the limitation on the
9 amount of debtor life insurance which may be
10 placed on a debtor in a debtor group; amending
11 s. 627.679, F.S.; revising the limitation on
12 the amount of credit life insurance which may
13 be placed on a debtor; amending ss. 627.351 and
14 766.314, F.S., relating to insurance risk
15 apportionment plans and assessments; conforming
16 cross-references; providing an effective date.
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18 Be It Enacted by the Legislature of the State of Florida:
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20 Section 1. Present paragraph (q) of subsection (1) of
21 section 624.605, Florida Statutes, is redesignated as
22 paragraph (r), and a new paragraph (q) is added to that
23 subsection, to read:
24 624.605 "Casualty insurance" defined.--
25 (1) "Casualty insurance" includes:
26 (q) Debt-cancellation agreement and debt-suspension
27 agreement; contractual liability insurance.--Insurance against
28 the risk of financial loss from specified contractual events
29 which are assumed by a creditor under a debt-cancellation
30 agreement or debt-suspension agreement.
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CODING: Words stricken are deletions; words underlined are additions.
Florida Senate - 2006 SB 2522
24-1421-06
1 Section 2. Subsection (3) of section 627.553, Florida
2 Statutes, is amended to read:
3 627.553 Debtor groups.--The lives of a group of
4 individuals may be insured under a policy issued to a creditor
5 or its parent holding company, or to a trustee or trustees or
6 agent designated by two or more creditors, which creditor,
7 holding company, affiliate, trustee or trustees, or agent
8 shall be deemed the policyholder, to insure debtors of the
9 creditor or creditors, subject to the following requirements:
10 (3) The amount of insurance on the life of any debtor
11 shall at no time exceed the amount owed by her or him which is
12 repayable in installments to the creditor or $50,000,
13 whichever is less, except that loans not exceeding 1 year's
14 duration shall not be subject to such limits. However, on such
15 loans not exceeding 1 year's duration, the limit of coverage
16 shall not exceed $50,000 with any one insurer.
17 Section 3. Paragraph (b) of subsection (1) of section
18 627.679, Florida Statutes, is amended to read:
19 627.679 Amount of insurance; disclosure.--
20 (1)
21 (b) The total amount of credit life insurance on the
22 life of any debtor with respect to any loan or loans covered
23 in one or more insurance policies shall at no time exceed the
24 amount of the indebtedness. $50,000 with any one creditor,
25 except that loans not exceeding 1 year's duration shall not be
26 subject to such limits, and on such loans not exceeding 1
27 year's duration, the limits of coverage shall not exceed
28 $50,000 with any one insurer.
29 Section 4. Paragraph (b) of subsection (4) of section
30 627.351, Florida Statutes, is amended to read:
31 627.351 Insurance risk apportionment plans.--
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CODING: Words stricken are deletions; words underlined are additions.
Florida Senate - 2006 SB 2522
24-1421-06
1 (4) MEDICAL MALPRACTICE RISK APPORTIONMENT.--
2 (b) Entities licensed to issue casualty insurance as
3 defined in s. 624.605(1)(b), (k), and (r) (q) and
4 self-insurers authorized to issue medical malpractice
5 insurance under s. 627.357 shall participate in the plan and
6 shall be members of the Joint Underwriting Association.
7 Section 5. Paragraph (c) of subsection (5) of section
8 766.314, Florida Statutes, is amended to read:
9 766.314 Assessments; plan of operation.--
10 (5)
11 (c)1. Taking into account the assessments collected
12 pursuant to subsection (4) and appropriations from the
13 Insurance Regulatory Trust Fund, if required to maintain the
14 plan on an actuarially sound basis, the Office of Insurance
15 Regulation shall require each entity licensed to issue
16 casualty insurance as defined in s. 624.605(1)(b), (k), and
17 (r) (q) to pay into the association an annual assessment in an
18 amount determined by the office pursuant to paragraph (7)(a),
19 in the manner required by the plan of operation.
20 2. All annual assessments shall be made on the basis
21 of net direct premiums written for the business activity which
22 forms the basis for each such entity's inclusion as a funding
23 source for the plan in the state during the prior year ending
24 December 31, as reported to the Office of Insurance
25 Regulation, and shall be in the proportion that the net direct
26 premiums written by each carrier on account of the business
27 activity forming the basis for its inclusion in the plan bears
28 to the aggregate net direct premiums for all such business
29 activity written in this state by all such entities.
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Florida Senate - 2006 SB 2522
24-1421-06
1 3. No entity listed in this paragraph shall be
2 individually liable for an annual assessment in excess of 0.25
3 percent of that entity's net direct premiums written.
4 4. Casualty insurance carriers shall be entitled to
5 recover their initial and annual assessments through a
6 surcharge on future policies, a rate increase applicable
7 prospectively, or a combination of the two.
8 Section 6. This act shall take effect effect July 1,
9 2006.
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12 SENATE SUMMARY
13 Limits the amount of debtor insurance that may be placed
on a debtor in a debtor group and limits the amount of
14 credit life insurance that may be placed on a debtor.
Provides a definition. (See bill for details.)
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