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CHAMBER ACTION |
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The Committee on Insurance recommends the following: |
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Committee Substitute |
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Remove the entire bill and insert: |
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A bill to be entitled |
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An act relating to waivers of customer liability and motor |
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vehicle insurance premium refunds; creating s. 624.105, |
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F.S.; authorizing certain entities to charge for and |
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include an optional waiver of liability provision in |
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certain contracts under certain circumstances; providing |
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limitations; amending s. 627.7283, F.S.; requiring an |
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insurer to refund the entire unearned premium to any |
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member of the armed services who cancels a policy under |
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certain circumstances; providing an effective date. |
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Be It Enacted by the Legislature of the State of Florida: |
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Section 1. Section 624.105, Florida Statutes, is created |
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to read: |
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624.105 Waiver of customer liability.—Any regulated |
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company as defined in s. 350.111, any electric utility as |
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defined in s. 366.02(2), any utility as defined in s. |
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367.021(12) or provided in s. 367.022(2) and (7), and any |
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provider of communications services as defined in s. 202.11(3) |
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may charge for and include an optional waiver of liability |
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provision in its customer contracts under which the entity |
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agrees to waive all or a portion of the customer’s liability for |
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service from the entity for a defined period in the event of the |
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customer’s call to active military service, death, disability, |
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involuntary unemployment, qualification for family leave, or |
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similar qualifying event or condition. Such provision may not be |
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effective in the customer’s contract with the entity unless |
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affirmatively elected by the customer. No such provision shall |
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constitute insurance so long as the provision is a contract |
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between the entity and its customer. |
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Section 2. Subsection (4) of section 627.7283, Florida |
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Statutes, is amended to read: |
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627.7283 Cancellation; return of premium.-- |
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(4) If the insured cancels, the insurer may retain up to |
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10 percent of the unearned premium and must refund at least 90 |
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percent of the unearned premium. However, the insurer must |
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refund 100 percent of the unearned premium if the insured is a |
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member of any branch of the United States Armed Services, |
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whether an active or a reserve member, who cancels because he or |
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she has been called to active duty or transferred by the armed |
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services to a location where the insurance is not required.If |
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the insurer cancels, the insurer must refund 100 percent of the |
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unearned premium. Cancellation is without prejudice to any claim |
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originating prior to the effective date of the cancellation. |
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For purposes of this section, unearned premiums must be computed |
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on a pro rata basis. |
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Section 3. This act shall take effect upon becoming a law. |