Bill Text: FL H0885 | 2010 | Regular Session | Engrossed

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Bill Title: Life Insurance [CPSC]

Spectrum: Partisan Bill (Republican 3-0)

Status: (Passed) 2010-05-11 - Approved by Governor; Chapter No. 2010-61; companion bill(s) passed, see CS/CS/SB 2176 (Ch. 2010-175) [H0885 Detail]

Download: Florida-2010-H0885-Engrossed.html

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CS/CS/HB 885

1	A bill to be entitled
2	An act relating to life insurance; amending s. 626.2815,
3	F.S.; exempting certain life insurance agents from certain
4	continuing education requirements under certain
5	circumstances; providing an attestation requirement;
6	creating s. 627.4605, F.S.; specifying nonapplication of a
7	required notice to a current insurer of a policy
8	replacement under certain circumstances; amending s.
9	627.464, F.S.; providing a limitation on the resale of
10	certain annuities to third parties; amending s. 627.552,
11	F.S.; prohibiting the creating or permitting of certain
12	classes of employees for group health insurance policy
13	purposes; preserving an employer's authority to require
14	certain plan participation as a condition of employment;
15	amending s. 627.5575, F.S.; revising the limitation on the
16	amount of insurance for spouses of dependent children of
17	employees of members under a group life insurance policy;
18	providing an effective date.
19
20	Be It Enacted by the Legislature of the State of Florida:
21
22	Section 1. Paragraph (k) of subsection (3) of section
23	626.2815, Florida Statutes, is amended to read:
24	626.2815 Continuing education required; application;
25	exceptions; requirements; penalties.-
26	(3)
27	(k)1. Any person who holds a license to solicit or sell
28	life insurance in this state must complete a minimum of 3 hours
29	in continuing education, approved by the department, on the
30	subject of suitability in annuity and life insurance
31	transactions. A licensee may use the hours obtained under this
32	subparagraph paragraph to satisfy the requirement for continuing
33	education in ethics under paragraph (a).
34	2. An agent who has not sold individual life insurance
35	policies or annuity contracts during the continuing education
36	compliance cycle in question and does not have any active
37	individual life insurance policies or annuity contracts is
38	exempt from the requirements of subparagraph 1. In order to
39	apply the exemption, the department may require the filing of a
40	certification attesting that the agent has not sold individual
41	life insurance policies or annuity contracts during the
42	continuing education compliance cycle in question and does not
43	have any active individual life insurance policies or annuity
44	contracts.
45	Section 2. Section 627.4605, Florida Statutes, is created
46	to read:
47	627.4605 Replacement notice.-A notice to a current insurer
48	of a replacement of a current life insurance policy is not
49	required in a transaction involving:
50	(1) An application to the current insurer that issued the
51	current policy or contract when a contractual change or
52	conversion privilege is being exercised;
53	(2) A current policy or contract is being replaced by the
54	same insurer pursuant to a program filed with and approved by
55	the office; or
56	(3) A term conversion privilege is being exercised among
57	corporate affiliates.
58	Section 3. Subsection (2) of section 627.464, Florida
59	Statutes, is renumbered as subsection (3), and a new subsection
60	(2) is added to that section to read:
61	627.464 Annuity contracts, pure endowment contracts;
62	standard provisions.-
63	(2) An annuity purchased, dedicated, or otherwise allocated
64	as part of a settlement to satisfy the requirements of 42 U.S.C. s.
65	1395y(b)(2) may not be sold to, or commuted by or for, a third
66	party unconnected to the settlement.
67	Section 4. Paragraph (a) of subsection (1) of section
68	627.552, Florida Statutes, is amended to read:
69	627.552 Employee groups.-Subject to all of the
70	requirements of this section, the lives of a group of individual
71	employees of an employer may be insured, for the benefit of
72	persons other than the employer, under a policy issued to the
73	employer or to the trustees of a fund established by an
74	employer, which employer or board of trustees is deemed to be
75	the policyholder.
76	(1)(a) The employees eligible for insurance under the
77	policy shall be all of the employees of the employer, or all of
78	any class or classes of employees determined by conditions
79	pertaining to their employment; however, a class of employees
80	may not be created or permitted that consists solely of
81	employees covered under the employer's group health plan. This
82	section does not prohibit an employer from requiring
83	participation in its group health plan as a condition of
84	employment.
85
86	This section does not affect the provisions of ss. 112.08-
87	112.14.
88	Section 5. Subsection (3) of section 627.5575, Florida
89	Statutes, is amended to read:
90	627.5575 Group life insurance for dependents.-Except for a
91	policy issued under s. 627.553, a group life insurance policy
92	may be extended to insure the employees or members against loss
93	due to the deaths of their spouses and dependent children or any
94	class or classes thereof, subject to the following:
95	(3) The amounts of insurance for any covered spouse or
96	dependent child under the policy may not exceed 50 percent of
97	the amount of insurance for which the employee or member is
98	insured.
99	Section 6. This act shall take effect upon becoming a law.

CODING: Words stricken are deletions; words underlined are additions.