| 1 | A bill to be entitled |
| 2 | An act relating to insurance; creating s. 624.6086, F.S.; |
| 3 | defining the term "debt cancellation agreement and debt |
| 4 | suspension agreement contractual liability insurance"; |
| 5 | amending ss. 627.553 and 627.679, F.S.; revising certain |
| 6 | limitations on certain amounts of life insurance on a |
| 7 | debtor; providing an effective date. |
| 8 |
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| 9 | Be It Enacted by the Legislature of the State of Florida: |
| 10 |
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| 11 | Section 1. Section 624.6086, Florida Statutes, is created |
| 12 | to read: |
| 13 | 624.6086 "Debt cancellation agreement and debt suspension |
| 14 | agreement contractual liability insurance" defined.--Debt |
| 15 | cancellation agreement and debt suspension agreement contractual |
| 16 | liability insurance means insurance against the risk of |
| 17 | financial loss from specified contractual events assumed by a |
| 18 | creditor under debt cancellation and debt suspension agreements. |
| 19 | Section 2. Subsection (3) of section 627.553, Florida |
| 20 | Statutes, is amended to read: |
| 21 | 627.553 Debtor groups.--The lives of a group of |
| 22 | individuals may be insured under a policy issued to a creditor |
| 23 | or its parent holding company, or to a trustee or trustees or |
| 24 | agent designated by two or more creditors, which creditor, |
| 25 | holding company, affiliate, trustee or trustees, or agent shall |
| 26 | be deemed the policyholder, to insure debtors of the creditor or |
| 27 | creditors, subject to the following requirements: |
| 28 | (3) The amount of insurance on the life of any debtor |
| 29 | shall at no time exceed the amount owed by her or him which is |
| 30 | repayable in installments to the creditor or $50,000, whichever |
| 31 | is less, except that loans not exceeding 1 year's duration shall |
| 32 | not be subject to such limits. However, on such loans not |
| 33 | exceeding 1 year's duration, the limit of coverage shall not |
| 34 | exceed $50,000 with any one insurer. |
| 35 | Section 3. Paragraph (b) of subsection (1) of section |
| 36 | 627.679, Florida Statutes, is amended to read: |
| 37 | 627.679 Amount of insurance; disclosure.-- |
| 38 | (1) |
| 39 | (b) The total amount of credit life insurance on the life |
| 40 | of any debtor with respect to any loan or loans covered in one |
| 41 | or more insurance policies shall at no time exceed the amount of |
| 42 | the indebtedness $50,000 with any one creditor, except that |
| 43 | loans not exceeding 1 year's duration shall not be subject to |
| 44 | such limits, and on such loans not exceeding 1 year's duration, |
| 45 | the limits of coverage shall not exceed $50,000 with any one |
| 46 | insurer. |
| 47 | Section 4. This act shall take effect upon becoming a law. |