Florida Senate - 2022                        COMMITTEE AMENDMENT
       Bill No. SB 1292
       
       
       
       
       
       
                                Ì745764EÎ745764                         
       
                              LEGISLATIVE ACTION                        
                    Senate             .             House              
                  Comm: RCS            .                                
                  01/19/2022           .                                
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       The Committee on Banking and Insurance (Gruters) recommended the
       following:
       
    1         Senate Amendment (with title amendment)
    2  
    3         Delete everything after the enacting clause
    4  and insert:
    5         Section 1. Section 324.252, Florida Statutes, is created to
    6  read:
    7         324.252 Electronic insurance verification.—
    8         (1)In order to empower drivers in this state and reduce
    9  the incidence of automobile insurance fraud within this state,
   10  by July 1, 2023, the electronic credentialing system, as defined
   11  in s. 322.032(1), must display driver vehicle registration and
   12  insurance information, provide a driver with notification of any
   13  lapse in his or her insurance coverage needed for compliance
   14  with the financial responsibility requirements of this chapter,
   15  and allow the driver to update his or her policy information via
   16  the system.
   17         (2)By October 1, 2023, the department shall provide the
   18  Legislature with recommendations on the means by which the
   19  department, law enforcement agencies, and other entities
   20  authorized by the department may electronically verify a
   21  driver’s compliance with the financial responsibility
   22  requirements of this chapter.
   23         Section 2. Subsection (2) of section 501.165, Florida
   24  Statutes, is amended to read:
   25         501.165 Automatic renewal of service contracts.—
   26         (2) SERVICE CONTRACTS WITH AUTOMATIC RENEWAL PROVISIONS.—
   27         (a) A Any seller that sells, leases, or offers to sell or
   28  lease any service to a consumer pursuant to a service contract
   29  that has an automatic renewal provision, unless the consumer
   30  cancels that contract, shall disclose the automatic renewal
   31  provision clearly and conspicuously in the contract or contract
   32  offer.
   33         (b) A Any seller that sells or offers to sell any service
   34  to a consumer pursuant to a service contract the term of which
   35  is a specified period of 12 months or more and that
   36  automatically renews for a specified period of more than 1
   37  month, unless the consumer cancels the contract, shall provide
   38  the consumer with written or electronic notification of the
   39  automatic renewal provision. Notification shall be provided to
   40  the consumer no less than 30 days or no more than 60 days before
   41  the cancellation deadline pursuant to the automatic renewal
   42  provision. Such notification shall disclose clearly and
   43  conspicuously:
   44         1. That unless the consumer cancels the contract the
   45  contract will automatically renew.
   46         2. Methods by which the consumer may obtain details of the
   47  automatic renewal provision and cancellation procedure, whether
   48  by contacting the seller at a specified telephone number or
   49  address, by referring to the contract, or by any other method.
   50         (c) A seller that fails to comply with the requirements of
   51  this subsection violates is in violation of this subsection
   52  unless the seller demonstrates that:
   53         1. As part of the seller’s routine business practice, the
   54  seller has established and implemented written procedures to
   55  comply with this section and enforces compliance with the
   56  procedures;
   57         2. Any failure to comply with this subsection is the result
   58  of error; and
   59         3. As part of the seller’s routine business practice, where
   60  an error has caused the failure to comply with this subsection,
   61  the unearned portion of the contract subject to the automatic
   62  renewal provision is refunded as of the date on which the seller
   63  is notified of the error.
   64         (d) A seller shall allow a consumer to cancel a service
   65  contract that has an automatic renewal provision in the same
   66  manner, and by the same means, as the service contract was
   67  entered into.
   68         (e) This subsection does not apply to:
   69         1. A financial institution as defined in s. 655.005 or any
   70  depository institution as defined in 12 U.S.C. s. 1813(c)(2).
   71         2. A foreign bank maintaining a branch or agency licensed
   72  under the laws of any state of the United States.
   73         3. Any subsidiary or affiliate of an entity described in
   74  subparagraph 1. or subparagraph 2.
   75         4. A health studio as defined in s. 501.0125.
   76         5. Any entity licensed under chapter 624, chapter 627,
   77  chapter 634, chapter 636, or chapter 641.
   78         6. Any electric utility as defined in s. 366.02.
   79         7. Any private company as defined in s. 180.05 providing
   80  services described in chapter 180 which is competing against a
   81  governmental entity or has a governmental entity providing
   82  billing services on its behalf.
   83         (f)(e) A violation of this subsection renders the automatic
   84  renewal provision void and unenforceable.
   85         Section 3. Paragraphs (b) and (c) of subsection (22) of
   86  section 626.854, Florida Statutes, are amended, and paragraph
   87  (a) of that subsection is republished, to read:
   88         626.854 “Public adjuster” defined; prohibitions.—The
   89  Legislature finds that it is necessary for the protection of the
   90  public to regulate public insurance adjusters and to prevent the
   91  unauthorized practice of law.
   92         (22)(a) Any following act by a public adjuster, a public
   93  adjuster apprentice, or a person acting on behalf of a public
   94  adjuster or public adjuster apprentice is prohibited and shall
   95  result in discipline as applicable under this part:
   96         1. Offering to a residential property owner a rebate, gift,
   97  gift card, cash, coupon, waiver of any insurance deductible, or
   98  any other thing of value in exchange for:
   99         a. Allowing a contractor, a public adjuster, a public
  100  adjuster apprentice, or a person acting on behalf of a public
  101  adjuster or public adjuster apprentice to conduct an inspection
  102  of the residential property owner’s roof; or
  103         b. Making an insurance claim for damage to the residential
  104  property owner’s roof.
  105         2. Offering, delivering, receiving, or accepting any
  106  compensation, inducement, or reward for the referral of any
  107  services for which property insurance proceeds would be used for
  108  roofing repairs or replacement.
  109         (b) Notwithstanding the fine set forth in s. 626.8698, a
  110  public adjuster or public adjuster apprentice may be subject to
  111  a fine not to exceed $10,000 per act for a violation of this
  112  subsection and a fine not to exceed $20,000 per act for a
  113  violation of this subsection that occurs during a state of
  114  emergency declared by executive order or proclamation of the
  115  Governor pursuant to s. 252.36.
  116         (c) A person who engages in an act prohibited by this
  117  subsection and who is not a public adjuster or a public adjuster
  118  apprentice, or is not otherwise exempt from licensure, is guilty
  119  of the unlicensed practice of public adjusting and may be:
  120         1. Subject to all applicable penalties set forth in this
  121  part.
  122         2. Notwithstanding subparagraph 1., subject to a fine not
  123  to exceed $10,000 per act for a violation of this subsection and
  124  a fine not to exceed $20,000 per act for a violation of this
  125  subsection that occurs during a state of emergency declared by
  126  executive order or proclamation of the Governor pursuant to s.
  127  252.36.
  128         Section 4. Present subsections (7), (8), and (9) of section
  129  626.989, Florida Statutes, are redesignated as subsections (9),
  130  (10), and (11), respectively, new subsections (7) and (8) and
  131  subsection (12) are added to that section, and subsection (6) of
  132  that section is amended, to read:
  133         626.989 Investigation by department or Division of
  134  Investigative and Forensic Services; compliance; immunity;
  135  confidential information; reports to division; division
  136  investigator’s power of arrest.—
  137         (6) Any person, other than an insurer, agent, or other
  138  person licensed under the code, or an employee thereof, having
  139  knowledge or who believes that a fraudulent insurance act or any
  140  other act or practice which, upon conviction, constitutes a
  141  felony or a misdemeanor under the code, or under s. 817.234, is
  142  being or has been committed may send to the Division of
  143  Investigative and Forensic Services a report or information
  144  pertinent to such knowledge or belief and such additional
  145  information relative thereto as the department may request. Any
  146  professional practitioner licensed or regulated by the
  147  Department of Business and Professional Regulation, except as
  148  otherwise provided by law, any medical review committee as
  149  defined in s. 766.101, any private medical review committee, and
  150  any insurer, agent, or other person licensed under the code, or
  151  an employee thereof, having knowledge or who believes that a
  152  fraudulent insurance act or any other act or practice which,
  153  upon conviction, constitutes a felony or a misdemeanor under the
  154  code, or under s. 817.234, is being or has been committed shall
  155  send to the Division of Investigative and Forensic Services a
  156  report or information pertinent to such knowledge or belief and
  157  such additional information relative thereto as the department
  158  may require.
  159         (7)If an insurer fails or otherwise refuses to comply with
  160  this section, the department may impose an administrative fine
  161  of not more than $2,000 per day for such failure until the
  162  department deems the insurer to be in compliance.
  163         (8) The Division of Investigative and Forensic Services
  164  shall review such information or reports and select such
  165  information or reports as, in its judgment, may require further
  166  investigation. It shall then cause an independent examination of
  167  the facts surrounding such information or report to be made to
  168  determine the extent, if any, to which a fraudulent insurance
  169  act or any other act or practice which, upon conviction,
  170  constitutes a felony or a misdemeanor under the code, or under
  171  s. 817.234, is being committed. The Division of Investigative
  172  and Forensic Services shall report any alleged violations of law
  173  which its investigations disclose to the appropriate licensing
  174  agency and state attorney or other prosecuting agency having
  175  jurisdiction with respect to any such violation, as provided in
  176  s. 624.310. If prosecution by the state attorney or other
  177  prosecuting agency having jurisdiction with respect to such
  178  violation is not begun within 60 days of the division’s report,
  179  the state attorney or other prosecuting agency having
  180  jurisdiction with respect to such violation shall inform the
  181  division of the reasons for the lack of prosecution.
  182         (12)The Division of Investigative and Forensic Services
  183  may adopt reasonable rules as are necessary to administer this
  184  section. Such rules must meet all of the following requirements:
  185         (a)They may not enlarge upon or extend the provisions of
  186  this section.
  187         (b)They must identify specific factors that determine the
  188  grades of penalty.
  189         (c)They must specify mitigating and aggravating factors
  190  for a violation of this section.
  191         Section 5. Subsection (9) of section 633.126, Florida
  192  Statutes, is amended, subsection (10) is added to that section,
  193  and subsection (2) of that section is republished, to read:
  194         633.126 Investigation of fraudulent insurance claims and
  195  crimes; immunity of insurance companies supplying information.—
  196         (2) If an insurance company has reason to suspect that a
  197  fire or explosion loss to its insured’s real or personal
  198  property was caused by intentional means, the company shall
  199  notify the State Fire Marshal and shall furnish her or him with
  200  all material acquired by the company during its investigation.
  201  The State Fire Marshal may adopt rules to implement this
  202  subsection.
  203         (9) If an insurance company fails or otherwise refuses to
  204  comply with this section, the department may impose an
  205  administrative fine of not more than $2,000 per day for such
  206  failure until the department deems the insurance company to be
  207  in compliance A person who willfully violates this section
  208  commits a misdemeanor of the first degree, punishable as
  209  provided in s. 775.082 or s. 775.083.
  210         (10)The Division of Investigative and Forensic Services
  211  may adopt reasonable rules as are necessary to administer this
  212  section. Such rules must meet all of the following requirements:
  213         (a)They may not enlarge upon or extend the provisions of
  214  this section.
  215         (b)They must identify specific factors that determine the
  216  grades of penalty.
  217         (c)They must specify mitigating and aggravating factors
  218  for a violation of this section.
  219         Section 6. Effective January 1, 2023, present paragraphs
  220  (b), (c), and (d) of subsection (3) of section 634.095, Florida
  221  Statutes, are redesignated as paragraphs (d), (e), and (f),
  222  respectively, new paragraphs (b) and (c) are added to that
  223  subsection, and paragraph (a) of that subsection is amended, to
  224  read:
  225         634.095 Prohibited acts.—Any service agreement company or
  226  salesperson that engages in one or more of the following acts
  227  is, in addition to any applicable denial, suspension,
  228  revocation, or refusal to renew or continue any appointment or
  229  license, guilty of a misdemeanor of the second degree,
  230  punishable as provided in s. 775.082 or s. 775.083:
  231         (3) Issuing or causing to be issued any advertisement that
  232  which:
  233         (a) Does not fully disclose in a written advertisement, in
  234  at least 12-point, boldface boldfaced type, the name, address,
  235  and Florida Company Code license number of the service agreement
  236  company.
  237         (b)Does not fully disclose in a radio or television
  238  advertisement the full legal name of the licensed salesperson or
  239  the service agreement company.
  240         (c)Does not fully identify the soliciting licensed
  241  salesperson’s full legal name and license number when the
  242  salesperson begins, and the soliciting salesperson’s telephone
  243  number when the salesperson concludes, each outbound telephone
  244  solicitation. For the purposes of this paragraph, the actual
  245  telephone number of the salesperson may be the number on file
  246  with the department or the number at which the salesperson may
  247  be contacted.
  248         Section 7. Subsection (11) of section 775.15, Florida
  249  Statutes, is amended to read:
  250         775.15 Time limitations; general time limitations;
  251  exceptions.—
  252         (11) A prosecution for a felony violation of s. 440.105 or
  253  s. 817.234 ss. 440.105 and 817.234 must be commenced within 5
  254  years after the violation is committed.
  255         Section 8. Subsection (5) of section 817.234, Florida
  256  Statutes, is amended to read:
  257         817.234 False and fraudulent insurance claims.—
  258         (5)(a) Any insurer damaged as a result of a violation of
  259  any provision of this section when there has been a criminal
  260  adjudication of guilt shall have a cause of action to recover
  261  compensatory damages, plus all reasonable investigation and
  262  litigation expenses, including attorney attorneys’ fees, at the
  263  trial and appellate courts.
  264         (b)If an insurer damaged as a result of a violation of any
  265  provision of this section has reported the possible fraudulent
  266  insurance act to the Division of Investigative and Forensic
  267  Services pursuant to s. 626.9891 and if there has been a
  268  criminal adjudication of guilt, the insurer is entitled to
  269  recover reasonable investigation and litigation expenses,
  270  including attorney fees, at the trial and appellate courts.
  271         Section 9. Except as otherwise expressly provided in this
  272  act, this act shall take effect upon becoming a law.
  273  
  274  ================= T I T L E  A M E N D M E N T ================
  275  And the title is amended as follows:
  276         Delete everything before the enacting clause
  277  and insert:
  278                        A bill to be entitled                      
  279         An act relating to fraud prevention; creating s.
  280         324.252, F.S.; requiring that the electronic
  281         credentialing system display certain vehicle
  282         information for specified purposes by a specified
  283         date; requiring the Department of Highway Safety and
  284         Motor Vehicles to provide the Legislature with
  285         recommendations for compliance verification with
  286         certain financial responsibility requirements by a
  287         specified date; amending s. 501.165, F.S.; requiring
  288         sellers to allow consumers to cancel in a specified
  289         manner and by specified means service contracts that
  290         have automatic renewal provisions; amending s.
  291         626.854, F.S.; revising maximum fines for public
  292         adjusters and public adjuster apprentices for certain
  293         violations under a specified circumstance; revising
  294         maximum fines for certain violations by certain
  295         persons under a specified circumstance; amending s.
  296         626.989, F.S.; authorizing the Department of Financial
  297         Services to impose an administrative fine on insurers
  298         under certain circumstances; authorizing the Division
  299         of Investigative and Forensic Services to adopt
  300         certain rules; amending s. 633.126, F.S.; authorizing
  301         the department to impose an administrative fine on
  302         insurance companies under certain circumstances;
  303         deleting criminal penalties; authorizing the division
  304         to adopt certain rules; amending s. 634.095, F.S.;
  305         revising requirements for advertisements issued or
  306         caused to be issued by service agreement companies or
  307         salespersons; amending s. 775.15, F.S.; revising
  308         felony violations for which prosecutions must be
  309         commenced within a specified timeframe; amending s.
  310         817.234, F.S.; providing that certain insurers are
  311         entitled to recover specified expenses at the trial
  312         and appellate courts under certain circumstances;
  313         providing effective dates.