| 1 | Representative(s) Reagan offered the following: |
| 2 |
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| 3 | Amendment (with title amendment) |
| 4 | On page 3, between lines 5 and 6, insert: |
| 5 | Section 3. Paragraph (c) of subsection (1) of section |
| 6 | 627.728, Florida Statutes, is amended to read: |
| 7 | 627.728 Cancellations; nonrenewals.-- |
| 8 | (1) As used in this section, the term: |
| 9 | (c) "Nonpayment of premium" means failure of the named |
| 10 | insured to discharge when due any of her or his obligations in |
| 11 | connection with the payment of premiums on a policy or any |
| 12 | installment of such premium, whether the premium is payable |
| 13 | directly to the insurer or its agent or indirectly under any |
| 14 | premium finance plan or extension of credit, or failure to |
| 15 | maintain membership in an organization if such membership is a |
| 16 | condition precedent to insurance coverage. "Nonpayment of |
| 17 | premium" also means the failure of a financial institution to |
| 18 | honor an insurance applicant's check after delivery to a |
| 19 | licensed agent for payment of a premium, even if the agent has |
| 20 | previously delivered or transferred the premium to the insurer.; |
| 21 | further, If the dishonored check represents the initial premium |
| 22 | payment, the contract and all contractual obligations shall be |
| 23 | void ab initio unless the nonpayment is cured within the earlier |
| 24 | of 5 days after actual notice by certified mail is received by |
| 25 | the applicant or 15 days after notice is sent to the applicant |
| 26 | by certified mail or registered mail, and if the contract is |
| 27 | void, any premium received by the insurer from a third party |
| 28 | shall be refunded to that party in full. If a dishonored check |
| 29 | is made payable to the insurer, the insurer may cancel the |
| 30 | policy in accordance with paragraph (3)(a). |
| 31 |
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| 32 | ========= T I T L E A M E N D M E N T ========= |
| 33 | On page 1, line 19, |
| 34 | remove: all of said line, |
| 35 |
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| 36 | and insert: Law as provided for in that section; amending s. |
| 37 | 627.728, F.S.; revising the definition of the term "nonpayment |
| 38 | of premium"; reenacting |