Fla. Stat. 627.4035
Payment of premiums; claims
(1)(a)
The premiums for insurance contracts issued in this state or covering risk located in this state must be paid in cash consisting of coins, currency, checks, electronic checks, drafts, or money orders or by using a debit card, credit card, automatic electronic funds transfer, or payroll deduction plan. Insurers issuing personal lines residential and commercial property policies shall provide a premium payment plan option to their policyholders which allows for a minimum of quarterly and semiannual payment of premiums. Insurers may, but are not required to, offer monthly payment plans. Insurers issuing such policies must submit their premium payment plan option to the office for approval before use.If, due to insufficient funds, a payment of premium under this subsection by debit card, credit card, electronic funds transfer, or electronic check is returned, is declined, or cannot be processed, the insurer may impose an insufficient funds fee of up to $15 per occurrence pursuant to the policy terms. However, the insurer may not charge the policyholder an insufficient funds fee if the failure in payment resulted from fraud or misuse on the policyholder’s account from which the payment was made and such fraud or misuse was not attributed to the policyholder.(1)(a)
The premiums for insurance contracts issued in this state or covering risk located in this state must be paid in cash consisting of coins, currency, checks, electronic checks, drafts, or money orders or by using a debit card, credit card, automatic electronic funds transfer, or payroll deduction plan. Insurers issuing personal lines residential and commercial property policies shall provide a premium payment plan option to their policyholders which allows for a minimum of quarterly and semiannual payment of premiums. Insurers may, but are not required to, offer monthly payment plans. Insurers issuing such policies must submit their premium payment plan option to the office for approval before use.(b)
If, due to insufficient funds, a payment of premium under this subsection by debit card, credit card, electronic funds transfer, or electronic check is returned, is declined, or cannot be processed, the insurer may impose an insufficient funds fee of up to $15 per occurrence pursuant to the policy terms. However, the insurer may not charge the policyholder an insufficient funds fee if the failure in payment resulted from fraud or misuse on the policyholder’s account from which the payment was made and such fraud or misuse was not attributed to the policyholder.(2)
Subsection (1) is not applicable to:Reinsurance agreements;Pension plans;Premium loans, whether or not subject to an automatic provision;Dividends, whether to purchase additional paid-up insurance or to shorten the dividend payment period;Salary deduction plans;Preauthorized check plans;Waivers of premiums on disability;Nonforfeiture provisions affording benefits under supplementary contracts; orSuch other methods of paying for life insurance as may be permitted by the commission pursuant to rule or regulation.(a)
Reinsurance agreements;(b)
Pension plans;(c)
Premium loans, whether or not subject to an automatic provision;(d)
Dividends, whether to purchase additional paid-up insurance or to shorten the dividend payment period;(e)
Salary deduction plans;(f)
Preauthorized check plans;(g)
Waivers of premiums on disability;(h)
Nonforfeiture provisions affording benefits under supplementary contracts; or(i)
Such other methods of paying for life insurance as may be permitted by the commission pursuant to rule or regulation.(3)
All payments of claims made in this state under any contract of insurance shall be paid:In cash consisting of coins, currency, checks, drafts, or money orders and, if by check or draft, shall be in such form as will comply with the standards for cash items adopted by the Federal Reserve System to facilitate the sorting, routing, and mechanized processing of such items; orIf authorized in writing by the recipient or the recipient’s representative, by debit card or any other form of electronic transfer. Any fees or costs to be charged against the recipient must be disclosed in writing to the recipient or the recipient’s representative at the time of written authorization. However, the written authorization requirement may be waived by the recipient or the recipient’s representative if the insurer verifies the identity of the insured or the insured’s recipient and does not charge a fee for the transaction. If the funds are misdirected, the insurer remains liable for the payment of the claim.(a)
In cash consisting of coins, currency, checks, drafts, or money orders and, if by check or draft, shall be in such form as will comply with the standards for cash items adopted by the Federal Reserve System to facilitate the sorting, routing, and mechanized processing of such items; or(b)
If authorized in writing by the recipient or the recipient’s representative, by debit card or any other form of electronic transfer. Any fees or costs to be charged against the recipient must be disclosed in writing to the recipient or the recipient’s representative at the time of written authorization. However, the written authorization requirement may be waived by the recipient or the recipient’s representative if the insurer verifies the identity of the insured or the insured’s recipient and does not charge a fee for the transaction. If the funds are misdirected, the insurer remains liable for the payment of the claim.
Source:
Section 627.4035 — Payment of premiums; claims, https://www.flsenate.gov/Laws/Statutes/2024/0627.4035 (accessed Aug. 7, 2025).