Senate Bill 0106e1

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    CS for SB 106                                  First Engrossed



  1                      A bill to be entitled

  2         An act relating to insurance policy sales and

  3         delivery procedures; amending s. 627.426, F.S.;

  4         relating to countersignature of certain

  5         insurance policies; creating an exception to

  6         the countersignature law; amending s. 626.9541,

  7         F.S.; relating to sales of insurance by credit

  8         card; amending s. 627.7295, F.S.; relating to

  9         insurance policy down payments; providing an

10         effective date.

11

12  Be It Enacted by the Legislature of the State of Florida:

13

14         Section 1.  Subsection (5) is added to section 624.426,

15  Florida Statutes, to read:

16         624.426  Exceptions to resident agent and

17  countersignature law.--Section 624.425 does not apply to:

18         (5)  Policies of insurance issued by insurers whose

19  agents represent, as to property, casualty, and surety

20  insurance, only one company or group of companies under common

21  ownership and for which a Florida resident agent is the agent

22  of record and the application has been lawfully submitted to

23  the insurer.

24         Section 2.  Paragraph (q) of subsection (1) of section

25  626.9541, Florida Statutes, is amended to read:

26         626.9541  Unfair methods of competition and unfair or

27  deceptive acts or practices defined.--

28         (1)  UNFAIR METHODS OF COMPETITION AND UNFAIR OR

29  DECEPTIVE ACTS.--The following are defined as unfair methods

30  of competition and unfair or deceptive acts or practices:

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    CS for SB 106                                  First Engrossed



  1         (q)  Certain insurance transactions through credit card

  2  facilities prohibited.--

  3         1.  Except as provided in subparagraph 3., no person

  4  shall knowingly solicit or negotiate any insurance; seek or

  5  accept applications for insurance; issue or deliver any

  6  policy; receive, collect, or transmit premiums, to or for any

  7  insurer; or otherwise transact insurance in this state, or

  8  relative to a subject of insurance resident, located, or to be

  9  performed in this state, through the arrangement or facilities

10  of a credit card facility or organization, for the purpose of

11  insuring credit card holders or prospective credit card

12  holders. The term "credit card holder" as used in this

13  paragraph means any person who may pay the charge for

14  purchases or other transactions through the credit card

15  facility or organization, whose credit with such facility or

16  organization is evidenced by a credit card identifying such

17  person as being one whose charges the credit card facility or

18  organization will pay, and who is identified as such upon the

19  credit card either by name, account number, symbol, insignia,

20  or any other method or device of identification.  This

21  subparagraph does not apply as to health insurance or to

22  credit life, credit disability, or credit property insurance.

23         2.  Whenever any person does or performs in this state

24  any of the acts in violation of subparagraph 1. for or on

25  behalf of any insurer or credit card facility, such insurer or

26  credit card facility shall be held to be doing business in

27  this state and, if an insurer, shall be subject to the same

28  state, county, and municipal taxes as insurers that have been

29  legally qualified and admitted to do business in this state by

30  agents or otherwise are subject, the same to be assessed and

31  collected against such insurers; and such person so doing or


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    CS for SB 106                                  First Engrossed



  1  performing any of such acts shall be personally liable for all

  2  such taxes.

  3         3.  A licensed agent or insurer may solicit or

  4  negotiate any insurance; seek or accept applications for

  5  insurance; issue or deliver any policy; receive, collect, or

  6  transmit premiums, to or for any insurer; or otherwise

  7  transact insurance in this state, or relative to a subject of

  8  insurance resident, located, or to be performed in this state,

  9  through the arrangement or facilities of a credit card

10  facility or organization, for the purpose of insuring credit

11  card holders or prospective credit card holders if:

12         a.  The insurance or policy which is the subject of the

13  transaction is noncancelable by any person other than the

14  named insured, the policyholder, or the insurer;

15         b.  Any refund of unearned premium is made directly to

16  the credit card holder; and

17         c.  The credit card transaction is authorized by the

18  signature of the credit card holder or other person authorized

19  to sign on the credit card account.

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21  The conditions enumerated in sub-subparagraphs a. through c.

22  do not apply to health insurance or to credit life, credit

23  disability, or credit property insurance; and sub-subparagraph

24  c. does not apply to property and casualty insurance so long

25  as the transaction is authorized by the insured.

26         4.  No person may use or disclose information resulting

27  from the use of a credit card in conjunction with the purchase

28  of insurance, when such information is to the advantage of

29  such credit card facility or an insurance agent, or is to the

30  detriment of the insured or any other insurance agent; except

31  that this provision does not prohibit a credit card facility


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    CS for SB 106                                  First Engrossed



  1  from using or disclosing such information in any judicial

  2  proceeding or consistent with applicable law on credit

  3  reporting.

  4         5.  No such insurance shall be sold through a credit

  5  card facility in conjunction with membership in any automobile

  6  club. The term "automobile club" means a legal entity which,

  7  in consideration of dues, assessments, or periodic payments of

  8  money, promises its members or subscribers to assist them in

  9  matters relating to the ownership, operation, use, or

10  maintenance of a motor vehicle; however, the definition of

11  automobile clubs does not include persons, associations, or

12  corporations which are organized and operated solely for the

13  purpose of conducting, sponsoring, or sanctioning motor

14  vehicle races, exhibitions, or contests upon race tracks, or

15  upon race courses established and marked as such for the

16  duration of such particular event.  The words "motor vehicle"

17  used herein shall be the same as defined in chapter 320.

18         Section 3.  Subsection (8) is added to section

19  627.7295, Florida Statutes, to read:

20         627.7295  Motor vehicle insurance contracts.--

21         (8)  Subsection (7) of this section does not apply if

22  an insured or family member has previously purchased and has

23  in effect a policy of private passenger motor vehicle

24  insurance and is purchasing additional coverage or adding

25  coverage for an additional vehicle, with such coverage being

26  written by the same insurer or a member of the same insurer

27  group.

28         Section 4.  This act shall take effect upon becoming a

29  law.

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