HB 0513 2003
1	CHAMBER ACTION
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6	The Committee on Insurance recommends the following:
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8	Committee Substitute
9	Remove the entire bill and insert:
10	A bill to be entitled
11	An act relating to insurance claims and premium payments;
12	amending s. 627.4035, F.S.; providing for the payment of
13	insurance premiums by a debit or credit card, automatic
14	electronic funds transfer, or payroll deduction plan;
15	amending s. 627.7015, F.S.; defining "claim" for purposes
16	of alternative procedures for resolution of disputed
17	property insurance claims; amending s. 627.901, F.S.;
18	revising limits on service charges for premium financing;
19	providing an effective date.
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21	Be It Enacted by the Legislature of the State of Florida:
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23	Section 1. Subsection (1) of section 627.4035, Florida
24	Statutes, is amended to read:
25	627.4035 Cash payment of premiums; claims.--
26	(1) The premiums for insurance contracts issued in this
27	state or covering risk located in this state shall be paid in
28	cash consisting of coins, currency, checks, or money orders or
29	by using a debit card, credit card, automatic electronic funds
30	transfer, or payroll deduction plan.
31	Section 2. Subsection (9) is added to section 627.7015,
32	Florida Statutes, to read:
33	627.7015 Alternative procedure for resolution of disputed
34	property insurance claims.--
35	(9) For purposes of this section, the term "claim" refers
36	to any dispute between an insurer and an insured relating to a
37	material issue of fact other than a dispute:
38	(a) With respect to which the insurer has a reasonable
39	basis to suspect fraud;
40	(b) Where, based on agreed-upon facts as to the cause of
41	loss, there is no coverage under the policy;
42	(c) With respect to which the insurer has a reasonable
43	basis to believe that the claimant has intentionally made a
44	material misrepresentation of fact which is relevant to the
45	claim, and the entire request for payment of a loss has been
46	denied on the basis of the material misrepresentation; or
47	(d) With respect to which the amount in controversy is
48	less than $500, unless the parties agree to mediate a dispute
49	involving a lesser amount.
50	Section 3. Subsection (1) of section 627.901, Florida
51	Statutes, is amended to read:
52	627.901 Premium financing by an insurance agent or
53	agency.--
54	(1) A general lines agent may make reasonable service
55	charges for financing insurance premiums on policies issued or
56	business produced by such an agent or agency, s. 626.9541
57	notwithstanding. The service charge shall not exceed $3$1per
58	installment, or a $6 total service charge per year, for any
59	premium balance of $120 or less. For any premium balance greater
60	than $120 but not more than $220, the service charge shall not
61	exceed $9 per year. The maximum service charge for any premium
62	balance greater than $220 shall not exceed $36$12per year. In
63	lieu of such service charges, an insurance agent or agency, at
64	the sole discretion of such agent or agency, may charge a rate
65	of interest not to exceed 18 percent simple interest per year
66	on:
67	(a) The unpaid balance; or
68	(b) The average unpaid balance as billed over the term of
69	the policy and subject to endorsement changes. The interest
70	authorized by this paragraph may be billed in equal
71	installments.
72	Section 4. This act shall take effect upon becoming a law.