Florida Senate - 2009                                    SB 1432
       
       
       
       By Senator Storms
       
       
       
       
       10-01070A-09                                          20091432__
    1                        A bill to be entitled                      
    2         An act relating to insurance premiums; amending s.
    3         627.902, F.S.; providing that certain provisions of
    4         state law do not apply to discounts when the premium
    5         for the entire policy term is paid at the inception of
    6         the term, as long as such discounts meet specified
    7         criteria; prohibiting such discounts from being
    8         considered related to or components of premium
    9         financing; providing an effective date.
   10         
   11  Be It Enacted by the Legislature of the State of Florida:
   12         
   13         Section 1. Section 627.902, Florida Statutes, is amended to
   14  read:
   15         627.902 Premium financing by an insurer or subsidiary.—
   16         (1) An insurer, a subsidiary of an insurer, or a
   17  corporation under substantially the same management or control
   18  as an authorized insurer or group of authorized insurers may
   19  finance property, casualty, surety, and marine insurance
   20  premiums on policies issued or business produced by such insurer
   21  or insurers; however, any such insurer, subsidiary, or
   22  corporation or group of insurers that charges a total service
   23  charge per year or rate of interest which is substantially more
   24  than that provided in s. 627.901 shall be subject to part XV of
   25  this chapter. Notwithstanding any other provision of law, an
   26  insurer, a subsidiary of an insurer, or a corporation under
   27  substantially the same management or control as an authorized
   28  insurer or group of authorized insurers may charge one-half of
   29  the additional charge provided in s. 627.840, and the charges
   30  provided in s. 627.841.
   31         (2) Nothing in this part or in part XV disallows or
   32  otherwise applies to a discount for those who pay the entire
   33  premium for the entire term of a policy at the inception of the
   34  term if the discount is found to be actuarially justified by the
   35  office and is approved by the office pursuant to the provisions
   36  of part I. Such actuarially justified and approved discount
   37  shall not be considered a component of or related to premium
   38  financing.
   39         Section 2. This act shall take effect July 1, 2009.