Bill Text: FL S0312 | 2023 | Regular Session | Comm Sub

NOTE: There are more recent revisions of this legislation. Read Latest Draft

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Bill Title: Insurance

Spectrum: Slight Partisan Bill (? 2-1)

Status: (Passed) 2023-06-16 - Chapter No. 2023-216 [S0312 Detail]

Download: Florida-2023-S0312-Comm_Sub.html

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       Florida Senate - 2023                              CS for SB 312
       
       
        
       By the Committee on Banking and Insurance; and Senator Collins
       
       
       
       
       
       597-03291-23                                           2023312c1
    1                        A bill to be entitled                      
    2         An act relating to insurance; amending s. 626.7851,
    3         F.S.; revising a minimum coursework qualification for
    4         licensure as a life agent; amending s. 626.9541, F.S.;
    5         providing that certain restrictions against unfair
    6         discrimination or unlawful rebates do not include
    7         value-added products or services offered or provided
    8         by insurers or their agents if certain conditions are
    9         met; providing requirements for and restrictions on
   10         insurers or agents offering or providing such products
   11         or services; authorizing insurers or agents to provide
   12         such products or services as part of a pilot or
   13         testing program under certain circumstances;
   14         authorizing the Financial Services Commission to adopt
   15         rules; providing an effective date.
   16          
   17  Be It Enacted by the Legislature of the State of Florida:
   18  
   19         Section 1. Section 626.7851, Florida Statutes, is amended
   20  to read:
   21         626.7851 Requirement as to knowledge, experience, or
   22  instruction.—An applicant for a license as a life agent, except
   23  for a chartered life underwriter (CLU), shall not be qualified
   24  or licensed unless within the 4 years immediately preceding the
   25  date the application for a license is filed with the department
   26  he or she has:
   27         (1) Successfully completed 30 40 hours of coursework in
   28  life insurance, annuities, and variable contracts approved by
   29  the department, 3 hours of which shall be on the subject matter
   30  of ethics. Courses must include instruction on the subject
   31  matter of unauthorized entities engaging in the business of
   32  insurance;
   33         (2) Successfully completed a minimum of 60 hours of
   34  coursework in multiple areas of insurance, which included life
   35  insurance, annuities, and variable contracts, approved by the
   36  department, 3 hours of which shall be on the subject matter of
   37  ethics. Courses must include instruction on the subject matter
   38  of unauthorized entities engaging in the business of insurance;
   39         (3) Earned or maintained an active designation as Chartered
   40  Financial Consultant (ChFC) from the American College of
   41  Financial Services; or Fellow, Life Management Institute (FLMI)
   42  from the Life Management Institute;
   43         (4) Held an active license in life insurance in another
   44  state. This provision may not be used unless the other state
   45  grants reciprocal treatment to licensees formerly licensed in
   46  the state; or
   47         (5) Been employed by the department or office for at least
   48  1 year, full time in life insurance regulatory matters and who
   49  was not terminated for cause, and application for examination is
   50  made within 4 years after the date of termination of his or her
   51  employment with the department or office.
   52  
   53  Prelicensure coursework is not required for an applicant who is
   54  a member or veteran of the United States Armed Forces or the
   55  spouse of such a member or veteran. A qualified individual must
   56  provide a copy of a military identification card, military
   57  dependent identification card, military service record, military
   58  personnel file, veteran record, discharge paper, or separation
   59  document that indicates such member is currently in good
   60  standing or such veteran is honorably discharged.
   61         Section 2. Paragraph (h) of subsection (1) of section
   62  626.9541, Florida Statutes, is amended to read:
   63         626.9541 Unfair methods of competition and unfair or
   64  deceptive acts or practices defined.—
   65         (1) UNFAIR METHODS OF COMPETITION AND UNFAIR OR DECEPTIVE
   66  ACTS.—The following are defined as unfair methods of competition
   67  and unfair or deceptive acts or practices:
   68         (h) Unlawful rebates.—
   69         1. Except as otherwise expressly provided by law, or in an
   70  applicable filing with the office, knowingly:
   71         a. Permitting, or offering to make, or making, any contract
   72  or agreement as to such contract other than as plainly expressed
   73  in the insurance contract issued thereon;
   74         b. Paying, allowing, or giving, or offering to pay, allow,
   75  or give, directly or indirectly, as inducement to such insurance
   76  contract, any unlawful rebate of premiums payable on the
   77  contract, any special favor or advantage in the dividends or
   78  other benefits thereon, or any valuable consideration or
   79  inducement whatever not specified in the contract;
   80         c. Giving, selling, or purchasing, or offering to give,
   81  sell, or purchase, as inducement to such insurance contract or
   82  in connection therewith, any stocks, bonds, or other securities
   83  of any insurance company or other corporation, association, or
   84  partnership, or any dividends or profits accrued thereon, or
   85  anything of value whatsoever not specified in the insurance
   86  contract.
   87         2. Nothing in paragraph (g) or subparagraph 1. of this
   88  paragraph shall be construed as including within the definition
   89  of discrimination or unlawful rebates:
   90         a. In the case of any contract of life insurance or life
   91  annuity, paying bonuses to all policyholders or otherwise
   92  abating their premiums in whole or in part out of surplus
   93  accumulated from nonparticipating insurance; provided that any
   94  such bonuses or abatement of premiums is fair and equitable to
   95  all policyholders and for the best interests of the company and
   96  its policyholders.
   97         b. In the case of life insurance policies issued on the
   98  industrial debit plan, making allowance to policyholders who
   99  have continuously for a specified period made premium payments
  100  directly to an office of the insurer in an amount which fairly
  101  represents the saving in collection expenses.
  102         c. Readjustment of the rate of premium for a group
  103  insurance policy based on the loss or expense thereunder, at the
  104  end of the first or any subsequent policy year of insurance
  105  thereunder, which may be made retroactive only for such policy
  106  year.
  107         d. Issuance of life insurance policies or annuity contracts
  108  at rates less than the usual rates of premiums for such policies
  109  or contracts, as group insurance or employee insurance as
  110  defined in this code.
  111         e. Issuing life or disability insurance policies on a
  112  salary savings, bank draft, preauthorized check, payroll
  113  deduction, or other similar plan at a reduced rate reasonably
  114  related to the savings made by the use of such plan.
  115         3.a. No title insurer, or any member, employee, attorney,
  116  agent, or agency thereof, shall pay, allow, or give, or offer to
  117  pay, allow, or give, directly or indirectly, as inducement to
  118  title insurance, or after such insurance has been effected, any
  119  rebate or abatement of the premium or any other charge or fee,
  120  or provide any special favor or advantage, or any monetary
  121  consideration or inducement whatever.
  122         b. Nothing in this subparagraph shall be construed as
  123  prohibiting the payment of fees to attorneys at law duly
  124  licensed to practice law in the courts of this state, for
  125  professional services, or as prohibiting the payment of earned
  126  portions of the premium to duly appointed agents or agencies who
  127  actually perform services for the title insurer. Nothing in this
  128  subparagraph shall be construed as prohibiting a rebate or
  129  abatement of an attorney fee charged for professional services,
  130  or that portion of the premium that is not required to be
  131  retained by the insurer pursuant to s. 627.782(1), or any other
  132  agent charge or fee to the person responsible for paying the
  133  premium, charge, or fee.
  134         c. No insured named in a policy, or any other person
  135  directly or indirectly connected with the transaction involving
  136  the issuance of such policy, including, but not limited to, any
  137  mortgage broker, real estate broker, builder, or attorney, any
  138  employee, agent, agency, or representative thereof, or any other
  139  person whatsoever, shall knowingly receive or accept, directly
  140  or indirectly, any rebate or abatement of any portion of the
  141  title insurance premium or of any other charge or fee or any
  142  monetary consideration or inducement whatsoever, except as set
  143  forth in sub-subparagraph b.; provided, in no event shall any
  144  portion of the attorney fee, any portion of the premium that is
  145  not required to be retained by the insurer pursuant to s.
  146  627.782(1), any agent charge or fee, or any other monetary
  147  consideration or inducement be paid directly or indirectly for
  148  the referral of title insurance business.
  149         4.a. Paragraph (g) or subparagraph 1. may not be construed
  150  as including within the definition of discrimination or unlawful
  151  rebates the offer or provision by an insurer or an agent of the
  152  insurer, including by or through employees, affiliates, or
  153  third-party representatives, of value-added products or services
  154  at no or reduced cost when such products or services are not
  155  specified in the insurance policy, if the product or service
  156  relates to the insurance coverage and is primarily designed to
  157  do one or more of the following:
  158         (I) Provide loss mitigation or loss control;
  159         (II) Reduce claim costs or claim settlement costs;
  160         (III) Provide education about liability risks or risk of
  161  loss to persons or property;
  162         (IV) Monitor or assess risk, identify sources of risk, or
  163  develop strategies for eliminating or reducing risk;
  164         (V) Enhance health;
  165         (VI) Enhance financial wellness through items such as
  166  education or financial planning services;
  167         (VII) Provide post-loss services;
  168         (VIII) Incentivize behavioral changes to improve the health
  169  or reduce the risk of death or disability of a policyholder,
  170  potential policyholder, certificateholder, potential
  171  certificateholder, insured, potential insured, or applicant; or
  172         (IX) Assist in the administration of employee or retiree
  173  benefit insurance coverage.
  174         b. The cost to the insurer or agent offering the product or
  175  service to a customer must be reasonable in comparison to the
  176  customer’s premiums or insurance coverage for the policy class.
  177         c. If the insurer or agent is providing the product or
  178  service, the insurer or agent must ensure that the customer is
  179  provided with contact information to assist the customer with
  180  questions regarding the product or service.
  181         d. The availability of the product or service must be based
  182  on documented objective evidence, and the product or service
  183  must be offered in a manner that is not unfairly discriminatory.
  184  The documented evidence must be maintained by the insurer or
  185  agent and produced upon request by the office or the department.
  186         e. If an insurer or agent has a good faith belief, but does
  187  not have sufficient evidence to demonstrate, that the product or
  188  service meets any of the criteria in sub-sub-subparagraphs
  189  a.(I)-(IX), the insurer or agent may provide the product or
  190  service in a manner that is not unfairly discriminatory as part
  191  of a pilot or testing program for up to 1 year. An insurer or
  192  agent must notify the office or department, as applicable, of
  193  such pilot or testing program offered to consumers in this state
  194  before commencing the program. The insurer or agent may commence
  195  the program unless the office or department, as applicable,
  196  objects to the program within 21 days after receiving the
  197  notice.
  198         f. An insurer, agent, or representative thereof may not
  199  offer or provide insurance as an inducement to the purchase of
  200  another policy or otherwise use the words “free,” “no cost,” or
  201  similar words in an advertisement.
  202         g. The commission may adopt rules to administer this
  203  subparagraph to ensure consumer protection. Such rules,
  204  consistent with applicable law, may address, among other issues,
  205  consumer data protections and privacy, consumer disclosure, and
  206  unfair discrimination.
  207         Section 3. This act shall take effect July 1, 2023.