69O-196.030. Definitions

As used in Chapter 627, Part XV, F.S., and these rules, the term:

(1) “Default” means nonpayment of an installment payment due under a premium finance agreement.

(2) “Gross Amount Available” means the gross amount of unearned premium on the cancelled policy, including unearned commission.

(3) “Impaired” means that the premium finance company is not in compliance with the financial requirement of Section 627.828, F.S.

(4) An “Inducement” is an incentive which motivates an insurance purchaser to finance the premium payment or which motivates any person to lead or influence an insured into financing the insurance coverage being purchased; or any compensation or consideration presented to a person based upon specific business performance whether under written agreement or otherwise. (See also examples under the definition of “rebates” below which could also constitute an inducement.)

(5) “Insolvent” or “insolvency” means that all the statutory assets of the premium finance company, if made immediately available, would not be sufficient to discharge all of its liabilities, or that the premium finance company is unable to pay its debts as they become due in the usual course of business.

(6) “Person” has the same meaning as in Section 1.01, F.S.

(7) “Statutory net worth” means the net worth of the company calculated in accordance with generally accepted accounting principles, as modified by Sections 625.012 and 625.031, F.S.

Specific Authority 624.308 FS. Law Implemented 624.307(1), 627.828, 627.829, 627.832, 627.839, 627.840, 627.841, 627.842, 627.848 FS. History–New 7-27-95, Formerly 4-196.030.