Florida Senate - 2007 COMMITTEE AMENDMENT
Bill No. SB 2222
Barcode 212880
CHAMBER ACTION
Senate House
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04/09/2007 06:06 PM .
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11 The Committee on Banking and Insurance (Posey) recommended the
12 following amendment:
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14 Senate Amendment (with title amendment)
15 Delete everything after the enacting clause
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17 and insert:
18 Section 1. Subsections (4), (5), and (6) are added to
19 section 627.6043, Florida Statutes, to read:
20 627.6043 Notification of cancellation, nonrenewal, or
21 change in rates.--
22 (4) Each policyholder or applicant has the right to
23 designate at least one person, in addition to the insured, who
24 is to receive notice of cancellation or nonrenewal for
25 nonpayment of premium. For policies issued or renewed on or
26 after October 1, 2007, the insurer shall notify the
27 policyholder at least once every 2 years of the policyholder's
28 right to designate a secondary addressee. Designation does not
29 constitute acceptance by the insurer of any liability for the
30 additional parties. The form used for the written designation
31 must provide space clearly designated for listing at least one
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Florida Senate - 2007 COMMITTEE AMENDMENT
Bill No. SB 2222
Barcode 212880
1 person. The designation shall include each person's full name
2 and home address. Each policyholder or applicant who elects
3 not to designate a secondary addressee shall execute a waiver.
4 The waiver remains effective until the policyholder designates
5 a secondary addressee on an executed form. The waiver must
6 state: "Protection against unintended lapse.--I understand
7 that I have the right to designate at least one person other
8 than myself to receive notice of cancellation or nonrenewal of
9 this policy due to nonpayment of premium. I understand that
10 notice will not be given until (...grace period...) days after
11 a premium is due and unpaid. I elect NOT to designate any
12 person to receive such notice."
13 (5) Notice of cancellation or nonrenewal due to
14 nonpayment of premium shall be given by first-class United
15 States mail, postage prepaid, and notice may not be given
16 until the end of the grace period for late payment of premium,
17 as required by s. 627.608. Notice shall be deemed given on the
18 5th day after the date on which it is mailed.
19 (6) If a policy is canceled or nonrenewed due to
20 nonpayment of premium, the policyholder is entitled to have
21 the policy reinstated if the policyholder or any secondary
22 addressee designated pursuant to subsection (4) demonstrates
23 within not less than 150 days after the date of cancellation
24 or nonrenewal that the failure to pay the premium when due was
25 unintentional and due to the cognitive impairment or loss of
26 functional capacity of the policyholder. Under these
27 circumstances, reinstatement of the policy is subject to
28 payment of overdue premiums. As used in this subsection, the
29 term "cognitive impairment" means a deficiency in a person's
30 short-term or long-term memory; orientation as to person,
31 place, and time; deductive or abstract reasoning; or judgment
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Florida Senate - 2007 COMMITTEE AMENDMENT
Bill No. SB 2222
Barcode 212880
1 as it relates to safety awareness. The insurer may require
2 payment of an interest charge of not more than 8 percent per
3 year for the number of days elapsing before the payment of the
4 premium. During this period, the policy remains in effect if
5 the claimant or the claimant's representative makes a
6 sufficient demonstration of cognitive impairment. If a claim
7 is made under the policy during the grace period for late
8 payment or the 150-day period after the date of cancellation
9 or nonrenewal and before the overdue premium is paid, the
10 amount of the premium or premiums plus any applicable interest
11 as described in this subsection may be deducted from any
12 settlement under the policy.
13 Section 2. This act shall take effect October 1, 2007.
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16 ================ T I T L E A M E N D M E N T ===============
17 And the title is amended as follows:
18 Delete everything before the enacting clause
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20 and insert:
21 A bill to be entitled
22 An act relating to health insurance policies;
23 amending s. 627.6043, F.S.; providing
24 policyholders with the right to designate at
25 least one secondary addressee to receive a
26 notice of cancellation or nonrenewal for
27 nonpayment of premium; requiring insurers to
28 notify the policyholder of his or her right at
29 least once every 2 years; providing for a
30 designation form; providing for a waiver of the
31 right; requiring the inclusion of specific
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Florida Senate - 2007 COMMITTEE AMENDMENT
Bill No. SB 2222
Barcode 212880
1 language in each waiver; providing requirements
2 for the delivery of a notice of cancellation or
3 nonrenewal; providing for policy reinstatement
4 upon a sufficient demonstration of cognitive
5 impairment or loss of functional capacity;
6 defining the term "cognitive impairment";
7 authorizing insurers to require payment of an
8 interest charge on the overdue unpaid premium;
9 providing for the deduction of unpaid premium
10 plus interest from claim settlements under
11 certain circumstances; providing an effective
12 date.
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