Senate Bill sb1754
CODING: Words stricken are deletions; words underlined are additions.
Florida Senate - 2007 SB 1754
By Senator Posey
24-1037-07 See HB 441
1 A bill to be entitled
2 An act relating to debt cancellation products;
3 amending s. 624.605, F.S.; including debt
4 cancellation products under casualty insurance;
5 describing debt cancellation products;
6 authorizing certain entities to offer debt
7 cancellation products under certain
8 circumstances; specifying such products as not
9 constituting insurance; amending s. 626.9541,
10 F.S.; providing an additional exclusion from a
11 prohibition against free insurance for certain
12 property insurance; creating s. 655.947, F.S.;
13 defining debt cancellation products;
14 authorizing financial institutions to offer
15 such products; authorizing a fee; requiring the
16 Financial Services Commission to adopt rules;
17 amending s. 520.07, F.S.; requiring the
18 commission to adopt rules for the sale of such
19 products by motor vehicle retail installment
20 sellers; providing an effective date.
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22 Be It Enacted by the Legislature of the State of Florida:
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24 Section 1. Paragraph (r) is added to subsection (1) of
25 section 624.605, Florida Statutes, to read:
26 624.605 "Casualty insurance" defined.--
27 (1) "Casualty insurance" includes:
28 (r) Debt cancellation products.--Insurance that a
29 creditor may purchase against the risk of financial loss from
30 the use of debt cancellation products with consumer loans or
31 leases or retail installment contracts.
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CODING: Words stricken are deletions; words underlined are additions.
Florida Senate - 2007 SB 1754
24-1037-07 See HB 441
1 1. For purposes of this paragraph, debt cancellation
2 products, including, but not limited to, debt cancellation
3 contracts, debt suspension agreements, and guaranteed asset
4 protection contracts, are loan, lease, or retail installment
5 contract terms, or modifications to loan, lease, or retail
6 installment contracts, under which a creditor agrees to cancel
7 or suspend all or part of a customer's obligation to make
8 payments upon the occurrence of specified events.
9 2. Debt cancellation products may be offered by
10 financial institutions, as defined in s. 655.005(1)(h), and
11 including insured depository institutions, as defined in 12
12 U.S.C. s. 1813(c), and subsidiaries of such institutions, as
13 provided in the financial institution codes, or motor vehicle
14 retail installment sellers, as defined in s. 520.02(15) or
15 retail lessors, as defined in s. 521.003(8), and such products
16 shall not constitute insurance for purposes of the Florida
17 Insurance Code.
18 Section 2. Paragraph (n) of subsection (1) of section
19 626.9541, Florida Statutes, is amended to read:
20 626.9541 Unfair methods of competition and unfair or
21 deceptive acts or practices defined.--
22 (1) UNFAIR METHODS OF COMPETITION AND UNFAIR OR
23 DECEPTIVE ACTS.--The following are defined as unfair methods
24 of competition and unfair or deceptive acts or practices:
25 (n) Free insurance prohibited.--
26 1. Advertising, offering, or providing free insurance
27 as an inducement to the purchase or sale of real or personal
28 property or of services directly or indirectly connected with
29 such real or personal property.
30 2. For the purposes of this paragraph, "free"
31 insurance is:
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CODING: Words stricken are deletions; words underlined are additions.
Florida Senate - 2007 SB 1754
24-1037-07 See HB 441
1 a. Insurance for which no identifiable and additional
2 charge is made to the purchaser of such real property,
3 personal property, or services.
4 b. Insurance for which an identifiable or additional
5 charge is made in an amount less than the cost of such
6 insurance as to the seller or other person, other than the
7 insurer, providing the same.
8 3. Subparagraphs 1. and 2. do not apply to:
9 a. Insurance of, loss of, or damage to the real or
10 personal property involved in any such sale or services, under
11 a policy covering the interests therein of the seller or
12 vendor.
13 b. Blanket disability insurance as defined in s.
14 627.659.
15 c. Credit life insurance or credit disability
16 insurance.
17 d. Any individual, isolated, nonrecurring unadvertised
18 transaction not in the regular course of business.
19 e. Title insurance.
20 f. Any purchase agreement involving the purchase of a
21 cemetery lot or lots in which, under stated conditions, any
22 balance due is forgiven upon the death of the purchaser.
23 g. Life insurance, trip cancellation insurance, or
24 lost baggage insurance offered by a travel agency as part of a
25 travel package offered by and booked through the agency.
26 h. Insurance covering property, other than real
27 property or motor vehicles, if the person paying for the
28 insurance:
29 (I) Has an ongoing contractual interest or other
30 economic interest in the property; or
31 (II) Requires the property to deliver its services.
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CODING: Words stricken are deletions; words underlined are additions.
Florida Senate - 2007 SB 1754
24-1037-07 See HB 441
1 4. Using the word "free" or words which imply the
2 provision of insurance without a cost to describe life or
3 disability insurance, in connection with the advertising or
4 offering for sale of any kind of goods, merchandise, or
5 services.
6 Section 3. Section 655.947, Florida Statutes, is
7 created to read:
8 655.947 Debt cancellation products.--
9 (1) Debt cancellation products, including, but not
10 limited to, debt cancellation contracts, debt suspension
11 agreements, and guaranteed asset protection contracts, are
12 loan or lease contract provisions, or modifications to loan or
13 lease contracts, under which a creditor agrees to cancel or
14 suspend all or part of a customer's obligation to make
15 payments upon the occurrence of specified events. Debt
16 cancellation products may be offered, and a fee charged, by
17 financial institutions and their subsidiaries subject to the
18 provisions of this section. As used in this section, the term
19 "financial institutions" includes those as defined in s.
20 655.005(1)(h) and insured depository institutions as defined
21 in 12 U.S.C. s. 1813(c).
22 (2) The commission shall adopt rules pursuant to ss.
23 120.536(1) and 120.54 to administer this section, which rules
24 must be consistent with 12 C.F.R. part 37, as amended.
25 Section 4. Subsection (11) is added to section 520.07,
26 Florida Statutes, to read:
27 520.07 Requirements and prohibitions as to retail
28 installment contracts.--
29 (11) The commission shall adopt rules to administer
30 the sale of debt cancellation products as defined in s.
31 624.605(1)(r) by motor vehicle retail installment sellers.
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CODING: Words stricken are deletions; words underlined are additions.
Florida Senate - 2007 SB 1754
24-1037-07 See HB 441
1 Section 5. This act shall take effect July 1, 2007.
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