Florida Statutes, Rules, and Regulations Pertinent to Life and Annuity Insurance, Including Variable Products

A Florida policyowner pays a premium late but within the grace period. What may the insurer charge on the overdue amount?

Answer and explanation
Answer: C. Section 627.453 allows the insurer to charge interest of up to 8 percent annually on the premium that remains overdue during the grace period, while the policy stays in force. The section does not bar all charges, does not authorise a flat fee in place of interest, and does not tie the charge to the policy loan rate.Source: Fla. Stat. § 627.453 — 627.453, Interest on the overdue premium

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