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| 1 | CHAMBER ACTION | ||
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| 6 | The Committee on Insurance recommends the following: | ||
| 7 | |||
| 8 | Committee Substitute | ||
| 9 | Remove the entire bill and insert: | ||
| 10 | A bill to be entitled | ||
| 11 | An act relating to waivers of customer liability and motor | ||
| 12 | vehicle insurance premium refunds; creating s. 624.105, | ||
| 13 | F.S.; authorizing certain entities to charge for and | ||
| 14 | include an optional waiver of liability provision in | ||
| 15 | certain contracts under certain circumstances; providing | ||
| 16 | limitations; amending s. 627.7283, F.S.; requiring an | ||
| 17 | insurer to refund the entire unearned premium to any | ||
| 18 | member of the armed services who cancels a policy under | ||
| 19 | certain circumstances; providing an effective date. | ||
| 20 | |||
| 21 | Be It Enacted by the Legislature of the State of Florida: | ||
| 22 | |||
| 23 | Section 1. Section 624.105, Florida Statutes, is created | ||
| 24 | to read: | ||
| 25 | 624.105 Waiver of customer liability.—Any regulated | ||
| 26 | company as defined in s. 350.111, any electric utility as | ||
| 27 | defined in s. 366.02(2), any utility as defined in s. | ||
| 28 | 367.021(12) or provided in s. 367.022(2) and (7), and any | ||
| 29 | provider of communications services as defined in s. 202.11(3) | ||
| 30 | may charge for and include an optional waiver of liability | ||
| 31 | provision in its customer contracts under which the entity | ||
| 32 | agrees to waive all or a portion of the customer’s liability for | ||
| 33 | service from the entity for a defined period in the event of the | ||
| 34 | customer’s call to active military service, death, disability, | ||
| 35 | involuntary unemployment, qualification for family leave, or | ||
| 36 | similar qualifying event or condition. Such provision may not be | ||
| 37 | effective in the customer’s contract with the entity unless | ||
| 38 | affirmatively elected by the customer. No such provision shall | ||
| 39 | constitute insurance so long as the provision is a contract | ||
| 40 | between the entity and its customer. | ||
| 41 | Section 2. Subsection (4) of section 627.7283, Florida | ||
| 42 | Statutes, is amended to read: | ||
| 43 | 627.7283 Cancellation; return of premium.-- | ||
| 44 | (4) If the insured cancels, the insurer may retain up to | ||
| 45 | 10 percent of the unearned premium and must refund at least 90 | ||
| 46 | percent of the unearned premium. However, the insurer must | ||
| 47 | refund 100 percent of the unearned premium if the insured is a | ||
| 48 | member of any branch of the United States Armed Services, | ||
| 49 | whether an active or a reserve member, who cancels because he or | ||
| 50 | she has been called to active duty or transferred by the armed | ||
| 51 | services to a location where the insurance is not required.If | ||
| 52 | the insurer cancels, the insurer must refund 100 percent of the | ||
| 53 | unearned premium. Cancellation is without prejudice to any claim | ||
| 54 | originating prior to the effective date of the cancellation. | ||
| 55 | For purposes of this section, unearned premiums must be computed | ||
| 56 | on a pro rata basis. | ||
| 57 | Section 3. This act shall take effect upon becoming a law. | ||