Senate Bill 0982c1

    Florida Senate - 1999                            CS for SB 982

    By the Committee on Banking and Insurance; and Senator Lee





    311-1724-99

  1                      A bill to be entitled

  2         An act relating to motor vehicle insurance

  3         policies; creating s. 627.7277, F.S.; requiring

  4         insurers to give the policyholder notice of the

  5         renewal premium; providing methods of

  6         sufficiency of notice; providing for

  7         continuation of policy coverage at existing

  8         rates if the insurer fails to comply; providing

  9         an effective date.

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11  Be It Enacted by the Legislature of the State of Florida:

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13         Section 1.  Section 627.7277, Florida Statutes, is

14  created to read:

15         627.7277  Notice of renewal premium.--

16         (1)  As used in this section, the terms "policy" and

17  "renewal" have the meaning ascribed in s. 627.728.

18         (2)  An insurer shall mail or deliver to its

19  policyholder at least 30 days' advance written notice of the

20  renewal premium for the policy. United States postal proof of

21  mailing or certified or registered mailing of notice of the

22  renewal premium to the named insured at the address shown in

23  the policy shall be sufficient proof of notice.

24         (3)  If the insurer fails to provide the 30 days'

25  notice of a renewal premium that results in a premium

26  increase, the coverage under the policy remains in effect at

27  the existing rates until 30 days after the notice is given or

28  until the effective date of replacement coverage obtained by

29  the insured, whichever occurs first.

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CODING: Words stricken are deletions; words underlined are additions.






    Florida Senate - 1999                            CS for SB 982
    311-1724-99




  1         Section 2.  This act applies to the renewal of a policy

  2  having an effective date of renewal on or after August 15,

  3  2000.

  4         Section 3.  This act shall take effect upon becoming a

  5  law.

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  7          STATEMENT OF SUBSTANTIAL CHANGES CONTAINED IN
                       COMMITTEE SUBSTITUTE FOR
  8                         Senate Bill 982

  9

10  Requires an insurer to provide its policyholder 30 days'
    advance written notice of a renewal premium, rather than 45
11  days' notice as in SB 982.

12  The requirement that the insurer continue coverage at the old
    rate, if the insurer fails to provide 30 days' advance notice
13  of the renewal premium, applies only if the renewal premium
    results in a premium increase.
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    Provides methods for sufficiency of notice of the renewal
15  premium.

16  The act applies to policies having a renewal date on or after
    August 15, 2000, rather than November 15, 1999.
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