House Bill 2221
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Florida House of Representatives - 2000 HB 2221
By Representative Gottlieb
1 A bill to be entitled
2 An act relating to rulemaking authority of
3 state agencies (RAB); amending s. 386.205,
4 F.S.; authorizing state agencies to adopt rules
5 to designate smoking areas; amending s.
6 554.115, F.S.; providing additional
7 circumstances under which the Department of
8 Insurance may suspend or revoke a certificate
9 of compliance to operate a boiler; requiring
10 that certain violations be reported to the
11 state attorney; providing for administrative
12 actions; amending s. 624.3161, F.S.; requiring
13 the Department of Insurance to adopt rules for
14 market conduct examinations; creating s.
15 624.4135, F.S.; requiring that the department
16 adopt rules governing applications by foreign
17 insurers for a certificate of authority as a
18 domestic insurer; amending s. 624.424, F.S.;
19 requiring health insurers to provide
20 information pertaining to the training and
21 instruction provided to agents; requiring the
22 Department of Insurance to adopt rules;
23 amending s. 625.305, F.S.; requiring that the
24 department adopt rules governing certain
25 investments by domestic life insurers; creating
26 s. 625.765, F.S.; exempting specified
27 transactions from requirements that a domestic
28 stock insurer file statements and recover
29 certain profits; amending s. 626.171, F.S.;
30 requiring the Department of Insurance to adopt
31 rules governing the license application process
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1 for insurance representatives; creating s.
2 626.2817, F.S.; providing for the regulation of
3 course providers, instructors, and other groups
4 involved in prelicensure education for
5 insurance agents and other licensees; amending
6 s. 626.7353, F.S.; requiring that the
7 Department of Insurance adopt rules governing
8 the appointment of customer representatives;
9 amending s. 626.748, F.S.; providing
10 requirements for agents in maintaining records
11 of policies; amending s. 626.9541, F.S.;
12 prohibiting certain discrimination with respect
13 to motor vehicle insurance premiums; providing
14 that failure to make certain disclosures
15 regarding a self-insured plan constitute an
16 unfair method of competition and an unfair or
17 deceptive act; requiring that the department
18 adopt rules governing such disclosures;
19 amending s. 626.9551, F.S.; providing
20 additional requirements for insurance sold in
21 connection with an extension of credit or the
22 sale or lease of goods or services; requiring
23 the Department of Insurance to adopt rules
24 governing such sales and rules to prevent the
25 coercion of borrowers; creating s. 626.9881,
26 F.S.; requiring that the department adopt rules
27 governing the marketing of insurance in
28 connection with persons not licensed as
29 insurance agents; amending s. 627.062, F.S.;
30 providing for the availability of water
31 supplies to be considered by insurers or rating
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1 organizations in establishing rates; amending
2 s. 627.0625, F.S.; authorizing the Department
3 of Insurance to adopt rules governing claims
4 under commercial motor vehicle policies;
5 creating s. 627.385, F.S.; requiring each
6 residual market board to adopt rules to prevent
7 conflicts of interest and inappropriate
8 behavior; specifying prohibited activities on
9 the part of board members; creating s.
10 627.4065, F.S.; providing for a right to return
11 a health insurance policy within a specified
12 period; providing notice requirements;
13 providing certain exceptions; creating s.
14 627.4086, F.S.; providing notice requirements
15 for policies of disability insurance; creating
16 s. 627.41335, F.S.; requiring that an applicant
17 for health insurance sign certain
18 acknowledgements with respect to the
19 termination of the insurance; creating s.
20 627.41337, F.S.; providing certain limitations
21 on the use of the terms "noncancelable" or
22 "noncancelable and guaranteed renewable" by
23 insurers; amending s. 627.429, F.S.; providing
24 that certain limitations on the use of medical
25 tests for human immunodeficiency virus
26 infection and acquired immune deficiency
27 syndrome apply to insurance provided by prepaid
28 limited health organizations; creating s.
29 627.4305, F.S.; authorizing the Department of
30 Insurance to make certain distinctions between
31 various insurance policies in adopting rules
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1 governing insurance contracts; amending s.
2 627.481, F.S.; requiring that the department
3 adopt rules governing certain annuity
4 agreements; creating s. 627.7276, F.S.;
5 providing notice requirements for motor vehicle
6 policies that do not provide coverage for
7 bodily injury and property damage liability or
8 that do not comply with the Florida Motor
9 Vehicle No-Fault Law; amending s. 627.7282,
10 F.S.; authorizing the Department of Insurance
11 to adopt rules governing the format of the
12 notice of additional premiums; creating s.
13 627.795, F.S.; requiring that title insurance
14 commitments be issued on certain real estate
15 transactions; creating s. 627.796, F.S.;
16 requiring that a title insurer obtain a minimum
17 amount of errors and omissions coverage for
18 persons performing title searches; creating s.
19 627.797, F.S.; requiring that insurers file
20 with the department a list of agents who are
21 exempt from licensure; creating s. 627.798,
22 F.S.; requiring that the Department of
23 Insurance adopt forms for notifying the
24 mortgagor of certain provisions in a title
25 policy; amending ss. 627.8405, 627.848, F.S.;
26 requiring that the Department of Insurance
27 adopt forms for disclosing coverages financed
28 with personal injury protection and for
29 cancelling certain policies; amending s.
30 627.918, F.S.; requiring that the department
31 adopt rules for approving certain forms;
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1 creating s. 627.955, F.S.; prohibiting certain
2 deductibles that are applicable to the insured
3 group as a whole; amending s. 635.071, F.S.;
4 prohibiting insurance on mortgages that are
5 offered for sale based on certain
6 advertisements; creating s. 636.0225, F.S.;
7 requiring that a group prepaid limited health
8 service contract provide for conversion of the
9 contract on termination of eligibility;
10 specifying certain exceptions; amending s.
11 636.0226, F.S.; providing requirements for
12 conversion contracts; providing certain time
13 limits; requiring issuance without evidence of
14 insurability; providing for a conversion
15 premium; providing for scope of coverage;
16 providing requirements for optional coverage;
17 providing certain limitations on termination;
18 limiting certain exclusions for preexisting
19 conditions; providing notice requirements;
20 amending s. 648.4425, F.S.; requiring the
21 Department of Insurance to prescribe forms for
22 use by bail bond agents in issuing bonds;
23 amending s. 651.033, F.S.; requiring that the
24 Department of Insurance sign certain escrow
25 agreements, letters of credit, and amendments
26 thereto; amending s. 791.015, F.S.; authorizing
27 the State Fire Marshal to adopt by rule
28 registration forms for manufacturers,
29 distributors, wholesalers, and retailers of
30 sparklers; providing an effective date.
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1 Be It Enacted by the Legislature of the State of Florida:
2
3 Section 1. Subsection (6) is added to section 386.205,
4 Florida Statutes, to read:
5 386.205 Designation of smoking areas.--
6 (6) Each state agency may adopt rules for
7 administering this section which take into consideration the
8 provisions of this part.
9 Section 2. Section 554.115, Florida Statutes, is
10 amended to read:
11 554.115 Disciplinary proceedings.--
12 (1) The department may suspend or revoke a certificate
13 of compliance upon proof that:
14 (a) The certificate has been obtained by fraud or
15 misrepresentation;
16 (b) The boiler for which the certificate was issued
17 cannot be operated safely; or
18 (c) The person who received the certificate willfully
19 or deliberately violated the State Boiler Code or ss.
20 554.1011-554.115 or any rule adopted pursuant to ss.
21 554.1011-554.115.
22 (2) The department may suspend or revoke a certificate
23 of competency upon proof that:
24 (a) The certificate was obtained by fraud or
25 misrepresentation; or
26 (b) The inspector to whom the certificate was issued
27 is no longer qualified under ss. 554.1011-554.115 to inspect
28 boilers; or.
29 (c) The inspector:
30 1. Operated a boiler at a public assembly location
31 without a valid certificate of compliance for that boiler;
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1 2. Gave false or forged information to the department
2 or to another boiler inspector for the purpose of obtaining a
3 certificate of compliance;
4 3. Used a certificate of compliance for any boiler
5 other than the boiler for which it was issued;
6 4. Operated a boiler for which the certificate of
7 compliance has been suspended or revoked or has expired;
8 5. Inspected any boiler regulated under ss.
9 554.1011-554.115 without having obtained a valid certificate
10 of competency;
11 6. Operated a boiler that is in an unsafe condition;
12 or
13 7. Operated a boiler in a manner that is contrary to
14 the requirements of this chapter or any rule adopted under
15 this chapter.
16 (3) Each suspension of a certificate of compliance or
17 certificate of competency shall continue in effect until all
18 violations have been corrected and, for boiler safety
19 violations, until the boiler has been inspected and shown to
20 be in a safe condition.
21 (4) A person in violation of this section who does not
22 have a valid certificate of competency shall be reported by
23 the chief inspector to the appropriate state attorney.
24 (5) A person in violation of this section who has a
25 valid certificate of competency is subject to administrative
26 action by the chief inspector.
27 (6) A revocation of a certificate of competency is
28 permanent and a revoked certificate of competency may not be
29 reinstated or a new certificate of competency issued to the
30 same person. A suspension of a certificate of competency
31 continues in effect until all violations have been corrected.
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1 A suspension of a certificate of compliance for any boiler
2 safety violation continues in effect until the boiler has been
3 inspected by an authorized inspector and shown to be in safe
4 working condition.
5 Section 3. Subsection (6) is added to section
6 624.3161, Florida Statutes, to read:
7 624.3161 Market conduct examinations.--
8 (6) The department shall adopt rules to administer
9 market conduct examinations, including, but not limited to,
10 rules that enable the department to ascertain compliance by
11 the person examined with the applicable provisions of this
12 chapter and chapters 626, 627, and 635.
13 Section 4. Section 624.4135, Florida Statutes, is
14 created to read:
15 624.4135 Redomestication.--The department shall adopt
16 rules establishing procedures and forms for a foreign insurer
17 to apply for a certificate of authority as a domestic insurer.
18 Section 5. Subsection (11) is added to section
19 624.424, Florida Statutes, to read:
20 624.424 Annual statement and other information.--
21 (11) Each insurer writing health insurance in this
22 state must complete and file with its annual statement a
23 response to a questionnaire concerning the course of training
24 and instruction that is provided to the agents of the insurer.
25 The department shall adopt by rule the questionnaire form.
26 Section 6. Subsection (11) is added to section
27 625.305, Florida Statutes, to read:
28 625.305 Diversification.--
29 (11) The department shall adopt rules to administer
30 this section, including rules pertaining to the use of money
31 by domestic life insurers which is received from variable
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1 annuity contracts for the purpose of investing and reinvesting
2 in common stocks.
3 Section 7. Section 625.765, Florida Statutes, is
4 created to read:
5 625.765 Exemptions from ss. 625.75 and 625.76.--The
6 department may adopt by rule exemptions from ss. 625.75 and
7 625.76 for transactions that are not subject to s. 628.461 and
8 that are the result of proceedings in probate, incompetency,
9 or bankruptcy; sales of securities by odd-lot securities
10 dealers; small transactions by gift which do not exceed $3,000
11 over any 6-month period; transactions that are effected in
12 connection with the distribution of a substantial block of
13 securities; acquisitions of shares of stock and stock options
14 under a stock bonus plan, stock option plan, or similar plan;
15 securities acquired by redeeming other securities by an
16 insurer; consolidations or mergers of insurers that hold over
17 85 percent of the companies being merged or consolidated;
18 acquisitions or dispositions of an equity security involved in
19 the deposit of the security under, or the withdrawal of the
20 security from, a voting trust or deposit agreement; and
21 conversions of an insurer's equity securities into another
22 equity security of the same insurer. The department may limit
23 the scope of exemptions and provide conditions for exemptions
24 as necessary to maintain the purpose and intent of ss. 625.75
25 and 625.76 and prevent the circumvention of ss. 625.75 and
26 625.76.
27 Section 8. Subsection (8) is added to section 626.171,
28 Florida Statutes, to read:
29 626.171 Application for license.--
30 (8) The department shall adopt rules to administer the
31 license application process, including requirements for photo
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1 identification, character and credit reports, and prelicensing
2 courses for an applicant; the impact of an applicant's
3 criminal history check; and any other information that is
4 relevant in determining an applicant's fitness and
5 trustworthiness to engage in the business of insurance.
6 Section 9. Section 626.2817, Florida Statutes, is
7 created to read:
8 626.2817 Regulation of course providers, instructors,
9 school officials, and monitor groups involved in prelicensure
10 education for insurance agents and other licensees.--
11 (1) Any course provider, instructor, school official,
12 or monitor group must be approved by and registered with the
13 department before offering prelicensure education courses for
14 insurance agents and other licensees.
15 (2) The department shall adopt rules establishing
16 standards for the approval, registration, discipline, or
17 removal from registration of course providers, instructors,
18 school officials, and monitor groups. The standards must be
19 designed to ensure that course providers, instructors, school
20 officials, and monitor groups have the knowledge, competence,
21 and integrity to fulfill the educational objectives of the
22 prelicensure requirements of this chapter and chapter 648 and
23 to assure that insurance agents and licensees are competent to
24 engage in the activities authorized under the license.
25 (3) The department shall adopt rules to establish a
26 process for determining compliance with the prelicensure
27 requirements of this chapter and chapter 648 and shall
28 establish a prelicensure cycle for insurance agents and other
29 licensees. The department shall adopt rules prescribing the
30 forms necessary to administer the prelicensure requirements.
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1 Section 10. Subsection (3) is added to section
2 626.7353, Florida Statutes, to read:
3 626.7353 Appointment of customer representatives.--
4 (3) The department shall prescribe by rule forms to
5 administer this section.
6 Section 11. Section 626.748, Florida Statutes, is
7 amended to read:
8 626.748 Agent's records.--
9 (1) Every agent transacting any insurance policy must
10 maintain in his or her office, or have readily accessible by
11 electronic or photographic means, such records of policies
12 transacted by him or her as to enable the policyholders and
13 department to obtain all necessary information, including
14 daily reports, applications, change endorsements, or documents
15 signed or initialed by the insured concerning such policies.
16 (2) The transacting agent shall maintain at all times
17 complete records of all policies issued, including the name
18 and address of all insureds and beneficiaries and the type or
19 scope of coverage provided. The transacting agent shall report
20 and promptly send to the insurer and issuing or countersigning
21 agent all applications for insurance. If the policies are
22 issued in the home office or regional office of the company, a
23 copy of the policy must be sent to the countersigning agent
24 for his or her file. If a policy covering personal property is
25 issued by a mutual insurer or a participating stock insurer,
26 the policyholder is entitled to the benefit of any dividend
27 paid under an individual policy or certificate.
28 Section 12. Paragraph (o) of subsection (1) of section
29 626.9541, Florida Statutes, is amended, and paragraph (bb) is
30 added to that subsection, to read:
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1 626.9541 Unfair methods of competition and unfair or
2 deceptive acts or practices defined.--
3 (1) UNFAIR METHODS OF COMPETITION AND UNFAIR OR
4 DECEPTIVE ACTS.--The following are defined as unfair methods
5 of competition and unfair or deceptive acts or practices:
6 (o) Illegal dealings in premiums; excess or reduced
7 charges for insurance.--
8 1. Knowingly collecting any sum as a premium or charge
9 for insurance, which is not then provided, or is not in due
10 course to be provided, subject to acceptance of the risk by
11 the insurer, by an insurance policy issued by an insurer as
12 permitted by this code.
13 2. Knowingly collecting as a premium or charge for
14 insurance any sum in excess of or less than the premium or
15 charge applicable to such insurance, in accordance with the
16 applicable classifications and rates as filed with and
17 approved by the department, and as specified in the policy;
18 or, in cases when classifications, premiums, or rates are not
19 required by this code to be so filed and approved, premiums
20 and charges in excess of or less than those specified in the
21 policy and as fixed by the insurer. This provision shall not
22 be deemed to prohibit the charging and collection, by surplus
23 lines agents licensed under part VIII of this chapter, of the
24 amount of applicable state and federal taxes, or fees as
25 authorized by s. 626.916(4), in addition to the premium
26 required by the insurer or the charging and collection, by
27 licensed agents, of the exact amount of any discount or other
28 such fee charged by a credit card facility in connection with
29 the use of a credit card, as authorized by subparagraph (q)3.,
30 in addition to the premium required by the insurer. This
31 subparagraph shall not be construed to prohibit collection of
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1 a premium for a universal life or a variable or indeterminate
2 value insurance policy made in accordance with the terms of
3 the contract.
4 3.a. Imposing or requesting an additional premium for
5 a policy of motor vehicle liability, personal injury
6 protection, medical payment, or collision insurance or any
7 combination thereof or refusing to renew the policy solely
8 because the insured was involved in a motor vehicle accident
9 unless the insurer's file contains information from which the
10 insurer in good faith determines that the insured was
11 substantially at fault in the accident.
12 b. An insurer which imposes and collects such a
13 surcharge or which refuses to renew such policy shall, in
14 conjunction with the notice of premium due or notice of
15 nonrenewal, notify the named insured that he or she is
16 entitled to reimbursement of such amount or renewal of the
17 policy under the conditions listed below and will subsequently
18 reimburse him or her or renew the policy, if the named insured
19 demonstrates that the operator involved in the accident was:
20 (I) Lawfully parked;
21 (II) Reimbursed by, or on behalf of, a person
22 responsible for the accident or has a judgment against such
23 person;
24 (III) Struck in the rear by another vehicle headed in
25 the same direction and was not convicted of a moving traffic
26 violation in connection with the accident;
27 (IV) Hit by a "hit-and-run" driver, if the accident
28 was reported to the proper authorities within 24 hours after
29 discovering the accident;
30 (V) Not convicted of a moving traffic violation in
31 connection with the accident, but the operator of the other
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1 automobile involved in such accident was convicted of a moving
2 traffic violation;
3 (VI) Finally adjudicated not to be liable by a court
4 of competent jurisdiction;
5 (VII) In receipt of a traffic citation which was
6 dismissed or nolle prossed; or
7 (VIII) Not at fault as evidenced by a written
8 statement from the insured establishing facts demonstrating
9 lack of fault which are not rebutted by information in the
10 insurer's file from which the insurer in good faith determines
11 that the insured was substantially at fault.
12 c. In addition to the other provisions of this
13 subparagraph, an insurer may not fail to renew a policy if the
14 insured has had only one accident in which he or she was at
15 fault within the current 3-year period. However, an insurer
16 may nonrenew a policy for reasons other than accidents in
17 accordance with s. 627.728. This subparagraph does not
18 prohibit nonrenewal of a policy under which the insured has
19 had three or more accidents, regardless of fault, during the
20 most recent 3-year period.
21 4. Imposing or requesting an additional premium for,
22 or refusing to renew, a policy for motor vehicle insurance
23 solely because the insured committed a noncriminal traffic
24 infraction as described in s. 318.14 unless the infraction is:
25 a. A second infraction committed within an 18-month
26 period, or a third or subsequent infraction committed within a
27 36-month period.
28 b. A violation of s. 316.183, when such violation is a
29 result of exceeding the lawful speed limit by more than 15
30 miles per hour.
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1 5. Upon the request of the insured, the insurer and
2 licensed agent shall supply to the insured the complete proof
3 of fault or other criteria which justifies the additional
4 charge or cancellation.
5 6. No insurer shall impose or request an additional
6 premium for motor vehicle insurance, cancel or refuse to issue
7 a policy, or refuse to renew a policy because the insured or
8 the applicant is a handicapped or physically disabled person,
9 so long as such handicap or physical disability does not
10 substantially impair such person's mechanically assisted
11 driving ability.
12 7. No insurer may cancel or otherwise terminate any
13 insurance contract or coverage, or require execution of a
14 consent to rate endorsement, during the stated policy term for
15 the purpose of offering to issue, or issuing, a similar or
16 identical contract or coverage to the same insured with the
17 same exposure at a higher premium rate or continuing an
18 existing contract or coverage with the same exposure at an
19 increased premium.
20 8. No insurer may issue a nonrenewal notice on any
21 insurance contract or coverage, or require execution of a
22 consent to rate endorsement, for the purpose of offering to
23 issue, or issuing, a similar or identical contract or coverage
24 to the same insured at a higher premium rate or continuing an
25 existing contract or coverage at an increased premium without
26 meeting any applicable notice requirements.
27 9. No insurer shall, with respect to premiums charged
28 for motor vehicle insurance, unfairly discriminate solely on
29 the basis of age, sex, marital status, type of vehicle,
30 location of the risk, number of accidents that occurred more
31 than 3 years ago, or scholastic achievement.
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1 10. Imposing or requesting an additional premium for
2 motor vehicle comprehensive or uninsured motorist coverage
3 solely because the insured was involved in a motor vehicle
4 accident or was convicted of a moving traffic violation.
5 11. No insurer shall cancel or issue a nonrenewal
6 notice on any insurance policy or contract without complying
7 with any applicable cancellation or nonrenewal provision
8 required under the Florida Insurance Code.
9 12. No insurer shall impose or request an additional
10 premium, cancel a policy, or issue a nonrenewal notice on any
11 insurance policy or contract because of any traffic infraction
12 when adjudication has been withheld and no points have been
13 assessed pursuant to s. 318.14(9) and (10). However, this
14 subparagraph does not apply to traffic infractions involving
15 accidents in which the insurer has incurred a loss due to the
16 fault of the insured.
17 (bb) Failure to make full disclosure.--Failure of an
18 agent, administrator, or insurer issuing a self insured plan
19 not covered by the guaranty fund established under s. 631.715
20 to disclose to a covered individual in writing that the plan
21 is not regulated by the department and that the plan does not
22 qualify under the guaranty fund. The department shall
23 prescribe forms and adopt rules to administer this paragraph.
24 Section 13. Paragraph (c) of subsection (2) of section
25 626.9551, Florida Statutes, is amended, and subsections (6),
26 (7), and (8) are added to that section, to read:
27 626.9551 Favored agent or insurer; coercion of
28 debtors.--
29 (2)
30 (c)1. All documents constituting policies of insurance
31 shall be separate and shall not be combined with or be a part
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1 of other documents. A person may not include the expense of
2 insurance premiums in a primary credit transaction without the
3 express written consent of the customer. If arrangements are
4 available to have the premium related to a mortgage or loan
5 added to the monthly mortgage or loan payment, any promotional
6 material may be worded to indicate that the insured may add
7 his premium to his payment if he so desires. The material may
8 not state that the premium must or will be added to the
9 payment. If the lender is to benefit from the proceeds of the
10 insurance policy, the insured shall execute, where applicable,
11 the routine assignment form normally used by the lender. The
12 execution of any assignment form must be done as a separate
13 transaction and not as part of the application form.
14 2. All claims filed by the insured with the financial
15 institution that holds a security interest in the insured risk
16 shall be promptly transmitted to the insurer or its designated
17 claim agent or representative.
18 (6) The department shall adopt rules necessary to
19 carry out the provisions of this section. All insurers or
20 agents doing business in this state must comply with such
21 rules and with any other applicable rules adopted by the
22 department. An insurer or agent may not issue any policy of
23 insurance that is not in conformity with applicable provisions
24 of the Florida Insurance Code or rules adopted thereunder.
25 (7) Any person who requires a purchaser or borrower to
26 maintain insurance in connection with the sale of property may
27 not purchase, at the expense of the purchaser or borrower,
28 insurance that is solely for the benefit of the seller or
29 lender, except in accordance with rules adopted by the
30 department. The rules must provide for fair disclosure to the
31 purchaser or borrower; reasonable opportunity for the
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1 purchaser or borrower to obtain dual coverage; contents of
2 certificates of insurance; and procedures for the placement,
3 cancellation, and reinstatement of single-interest insurance
4 by the seller or lender which gives the purchaser or borrower
5 a reasonable opportunity to obtain coverage independently so
6 as to avoid charges for single-interest insurance.
7 (8) The department shall adopt rules to prevent
8 coercion of borrowers. Such rules must prescribe the rights of
9 borrowers and lenders and establish policies, standards, and
10 procedures to protect borrowers from coercion by lenders.
11 Section 14. Section 626.9881, Florida Statutes, is
12 created to read:
13 626.9881 Rulemaking authority regarding the marketing
14 of insurance in conjunction with persons not licensed as
15 insurance agents.--The department shall adopt rules
16 establishing requirements for relationships between insurance
17 agents and persons who are not licensed as insurance agents in
18 the marketing and servicing of insurance and annuity
19 contracts. The department shall adopt rules establishing
20 requirements to implement chapter 624 and this chapter with
21 respect to the marketing and servicing of such contracts. The
22 rules must establish affirmative requirements necessary to
23 enable an individual to understand that insurance is being
24 sold when insurance solicitations occur in cooperation with a
25 third party that engages in activities other than the
26 transaction of insurance.
27 Section 15. Paragraph (c) of subsection (2) of section
28 627.062, Florida Statutes, is amended to read:
29 627.062 Rate standards.--
30 (2) As to all such classes of insurance:
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1 (c) In the case of fire insurance rates, consideration
2 shall be given to the availability of water supplies and the
3 experience of the fire insurance business during a period of
4 not less than the most recent 5-year period for which such
5 experience is available.
6
7 The provisions of this subsection shall not apply to workers'
8 compensation and employer's liability insurance and to motor
9 vehicle insurance.
10 Section 16. Subsection (4) is added to section
11 627.0625, Florida Statutes, to read:
12 627.0625 Commercial property and casualty risk
13 management plans.--
14 (4) Any commercial motor vehicle policy that is issued
15 to satisfy mandatory financial responsibility requirements of
16 a state or local government must provide first-dollar coverage
17 to third-party claimants without a deductible. The department
18 may adopt rules necessary to assure the proper administration
19 of claims and protection of third-party claimants from unfair
20 policy defenses not attributable to the third-party claimant.
21 Section 17. Section 627.385, Florida Statutes, is
22 created to read:
23 627.385 Conduct of residual market board members.--
24 (1)(a) For various insurance coverages, a residual
25 market has been created by the Legislature to provide a market
26 of last resort for individuals who are unable to secure
27 coverage in the voluntary market. As such, the coverage
28 provided is not subject to competitive market forces and must
29 be provided and administered in a manner that fairly balances
30 the needs of the consumer and the member insurers obligated to
31 provide coverage for the residual market.
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1 (b) Each residual market's enabling legislation
2 requires the establishment of a board of governors or
3 directors that operates subject to a plan of operation. The
4 board, in carrying out its obligations, must engage in
5 business transactions in order to provide and administer the
6 required coverage and maintain adequate funds to support the
7 plan. In order for the board to fully execute its
8 responsibilities required by law, conflict of interest or
9 inappropriate activity by board members, or the appearance
10 thereof, with regard to member insurers or policyholders of
11 the residual market mechanism must be avoided. The Legislature
12 has determined that the provisions set forth in subsection (2)
13 are necessary to protect the public by ensuring fair,
14 reasonable, and beneficial board practice and activity.
15 (c) This section applies to the Florida Medical
16 Malpractice Joint Underwriting Association, the Florida Joint
17 Underwriting Association, the Florida Comprehensive Health
18 Association, the Florida Windstorm Underwriting Association,
19 the Florida Property and Casualty Joint Underwriting
20 Association, the Florida Residential Property and Casualty
21 Joint Underwriting Association, and the board members thereof.
22 (2) To ensure that the board is free from potential
23 conflict or inappropriate behavior, the following shall be
24 adopted in the plan of operation for each residual market in
25 this state.
26 (a) A board member may not act as a servicing carrier
27 or administering entity for the plan, except with respect to a
28 claim adjustment contract that is open to all members of the
29 plan.
30 (b) A board member or representative of a board member
31 may not use his or her position to foster or facilitate any
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1 pecuniary gain for himself or herself, the member's or
2 representative's company, or any other entity in which the
3 board member, representative, or company has a substantial
4 financial interest, except as otherwise provided in paragraph
5 (a).
6 (c) A board member or representative of a board member
7 may not use his or her position on the board to secure or
8 promote any business relation from which he or she may derive
9 a financial gain.
10 (d) A board member or designee may not receive any
11 gift or gratuity, other than meals, in his or her capacity as
12 a board member.
13 (3) A board member or representative of a board member
14 is entitled to reimbursement for reasonable expenses incurred
15 in the performance of his or her duties in accordance with s.
16 112.061. The board shall develop a detailed policy regarding
17 travel expenses for board members which is subject to approval
18 by the department.
19 Section 18. Section 627.4065, Florida Statutes, is
20 created to read:
21 627.4065 Insured's right to return policy; notice.--A
22 health insurance policy delivered or issued for delivery in
23 this state must have printed or stamped thereon or attached
24 thereto a notice in a prominent place stating in substance
25 that the policyholder may return the policy within 10 days
26 after its delivery to the insurer and to have the premium paid
27 refunded if, after examination of the policy or contract, the
28 policyholder is not satisfied with it for any reason. The
29 notice must provide that if the policyholder pursuant to such
30 notice returns the policy or contract to the insurer at its
31 home office or branch office or to the agent through whom it
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1 was purchased, the policy or contract is void from the
2 beginning and the parties are in the same position as if the
3 policy or contract had not been issued. This section does not
4 apply to a single premium nonrenewable policy or a travel
5 accident policy.
6 Section 19. Section 627.4086, Florida Statutes, is
7 created to read:
8 627.4086 Statement that application has been read.--
9 (1) A policy of disability insurance may not be
10 delivered to any person in this state unless it contains a
11 notice stating in substance the following:
12
13 IMPORTANT NOTICE
14
15 Please read the copy of the application
16 attached to this policy. Carefully check the
17 application and write to the company
18 .......(address)....... within 10 days if any
19 information shown on it is not correct and
20 complete, or if any past medical history has
21 been left out of the application. This
22 application is a part of the policy and the
23 policy was issued on the basis that the answers
24 to all questions and the information shown on
25 the application are correct and complete.
26
27 This statement must be printed on or affixed by sticker to the
28 policy in a prominent manner in ink of a contrasting color.
29 Any wording of similar import or any procedure whereby the
30 equal results are obtained may be used upon approval by the
31 department.
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1 (2) This section does not apply if the application for
2 insurance is not attached to and made a part of the policy.
3 Section 20. Section 627.41335, Florida Statutes, is
4 created to read:
5 627.41335 Statement of terms; acknowledgment by
6 insured required.--An agent, in handling an application for
7 health insurance, must obtain from the applicant a signed
8 statement acknowledging that the applicant understands that
9 upon proper notice the company may terminate the insurance at
10 the end of any period for which the premium has been paid or
11 may cancel the policy if it contains a cancellation provision.
12 The statement may be a part of the application itself or may
13 be separate. The statement may be obtained at the time of the
14 application, before the policy is delivered, or when the
15 policy is delivered. The wording of the statement must be as
16 follows: "I am aware that the company may terminate this
17 insurance at the end of any period for which the premium has
18 been paid." Different wording of similar import may be
19 approved by the department so as to accurately describe
20 different renewal conditions or provisions in line with the
21 terms of the contract. If this statement is on the
22 application, it must be isolated or separated, and a separate
23 signature is required at the end of the statement. The signed
24 statement must be kept on file by the insurer.
25 Section 21. Section 627.41337, Florida Statutes, is
26 created to read:
27 627.41337 Noncancelable or noncancelable and
28 guaranteed renewable policies; use of terms.--The terms
29 "noncancelable" or "noncancelable and guaranteed renewable"
30 may be used only in a policy that the insured has the right to
31 continue in force by the timely payment of premiums set forth
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1 in the policy until at least age 50, or, in the case of a
2 policy issued after age 44, the insurer may not unilaterally
3 make any change in any provision of the policy for at least 5
4 years while the policy is in force. Except as provided in this
5 section, the term "guaranteed renewable" may be used only in a
6 policy that the insured has the right to continue in force by
7 the timely payment of premiums until at least age 50, or, in
8 the case of a policy issued after age 44, for at least 5 years
9 after its date of issue the insurer may not unilaterally make
10 any change in any provision of the policy while the policy is
11 in force, except that the insurer may make changes in premium
12 rates by classes. This limitation on the use of the term
13 "noncancelable" also applies to any synonymous term such as
14 "not cancelable" and the limitation on the use of the term
15 "guaranteed renewable" also applies to any synonymous term
16 such as "guaranteed continuable." This section does not
17 restrict the development of a policy that has other guarantees
18 of renewability, and does not prevent the accurate description
19 of the terms of renewability or the classification of any such
20 policy as guaranteed renewable or noncancelable for any period
21 during which the policy may actually be guaranteed renewable
22 or noncancelable, if the terms used to describe guarantees of
23 renewability in policy contracts and advertising are not terms
24 that are readily confused with the terms "noncancelable" or
25 "noncancelable and guaranteed renewable."
26 Section 22. Paragraph (a) of subsection (2) of section
27 627.429, Florida Statutes, is amended to read:
28 627.429 Medical tests for human immunodeficiency virus
29 infection and acquired immune deficiency syndrome for
30 insurance purposes.--
31 (2) SCOPE.--
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1 (a) This section applies to all insurance policies,
2 and the underwriting thereof, which are issued in this state
3 or are issued outside this state pursuant to s. 627.5515 or s.
4 627.6515 covering residents of this state; to prepaid limited
5 health organizations; and to multiple-employer welfare
6 arrangements defined in s. 624.437. For the purposes of this
7 section, "insurer" includes authorized multiple-employer
8 welfare arrangements.
9 Section 23. Section 627.4305, Florida Statutes, is
10 created to read:
11 627.4305 Rulemaking.--In exercising its authority to
12 adopt rules interpreting or implementing this part as provided
13 in s. 624.308, the department may make distinctions between
14 individual insurance policies and group, franchise, or blanket
15 insurance policies, and between various types or lines of
16 insurance. Such distinctions in the rules shall be based on
17 the varying degrees of consumer protection that the department
18 finds necessary.
19 Section 24. Subsection (11) is added to section
20 627.481, Florida Statutes, to read:
21 627.481 Requirements for certain annuity agreements.--
22 (11) The department shall adopt rules and forms for
23 the filing of annual statements and agreements pertaining to
24 donor annuity organizations.
25 Section 25. Section 627.7276, Florida Statutes, is
26 created to read:
27 627.7276 Notice of limited coverage.--
28 (1) Any insurance agent that undertakes to place only
29 insurance for property damage liability coverage on a motor
30 vehicle as defined by the Florida Motor Vehicle No-Fault Law
31 shall personally obtain from the prospective insured or
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1 applicant a signed form acknowledging the requirement that
2 security be maintained pursuant to the Florida Motor Vehicle
3 No-Fault Law. The signed form must be maintained by the
4 insurance agent in his files and must contain the following
5 text:
6
7 The undersigned prospective insured hereby
8 acknowledges that the Florida Motor Vehicle
9 No-Fault Law requires an owner of a motor
10 vehicle, as defined by the law, to maintain
11 security to comply with said law, and further
12 understands that any motor vehicle policy not
13 providing personal injury protection benefits
14 does not comply with said law.
15
16 Failure to maintain security required by the
17 Florida Motor Vehicle No-Fault Law will result
18 in the owner's being personally liable for all
19 benefits provided by law in addition to
20 revocation of the owner's registration and
21 operator's license.
22
23 .......(Signed).......
24 .......Licensed Agent.......
25
26 .......(Signed).......
27 .......Prospective Insured.......
28
29 (2) An automobile policy that does not contain
30 coverage for bodily injury and property damage must be clearly
31
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1 stamped or printed to the effect that such coverage is not
2 included in the policy in the following manner:
3
4 "THIS POLICY DOES NOT PROVIDE BODILY INJURY AND
5 PROPERTY DAMAGE LIABILITY INSURANCE OR ANY
6 OTHER COVERAGE FOR WHICH A SPECIFIC PREMIUM
7 CHARGE IS NOT MADE, AND DOES NOT COMPLY WITH
8 ANY FINANCIAL RESPONSIBILITY LAW."
9
10 This legend must appear on the policy declaration page and on
11 the filing back of the policy and shall be printed in a
12 contrasting color from that used on the policy and in type
13 larger than the largest type used in the text thereof, either
14 as an overprint or by a rubber-stamp impression.
15 Section 26. Subsection (5) is added to section
16 627.7282, Florida Statutes, to read:
17 627.7282 Notice of additional premium; cancellation
18 upon nonpayment.--
19 (5) The department may adopt rules prescribing the
20 format of the notice and the required time period for
21 providing the notice.
22 Section 27. Section 627.795, Florida Statutes, is
23 created to read:
24 627.795 Policy exceptions.--
25 (1) A title insurance commitment shall be issued on
26 all real estate closing transactions when a title insurance
27 policy is to be issued, except multiple conveyances on the
28 same property, such as timesharing conveyances.
29 (2) A "gap" exception may not be deleted on a title
30 insurance commitment until the time of closing.
31
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1 Section 28. Section 627.796, Florida Statutes, is
2 created to read:
3 627.796 Errors and omissions policy requirements.--A
4 title insurance policy may not be issued from a search
5 performed by any person other than a title insurance agent, or
6 an employee of a title insurer or title insurance agency,
7 unless that person has in effect an errors and omissions
8 policy that has minimum coverage limits of $250,000 and a
9 deductible that does not exceed $10,000.
10 Section 29. Section 627.797, Florida Statutes, is
11 created to read:
12 627.797 Exempt agent list.--
13 (1) Every insurer shall file with the department a
14 list containing the name and address of each appointed agent
15 who is exempt from licensure under s. 626.8417(4) and who
16 issues or countersigns binders, commitments, title insurance
17 policies, or guarantees of title.
18 (2) Each month thereafter, the insurer shall report to
19 the department the name and address of any nonlicensed agent
20 whose appointment is granted or terminated.
21 Section 30. Section 627.798, Florida Statutes, is
22 created to read:
23 627.798 Rulemaking authority.--The department shall by
24 rule adopt a form to be used to provide notice to a
25 purchaser-mortgagor that the purchaser-mortgagor is not
26 protected by the title policy of the mortgagee.
27 Section 31. Section 627.8405, Florida Statutes, is
28 amended to read:
29 627.8405 Prohibited acts; financing companies.--No
30 premium finance company shall, in a premium finance agreement
31 or other agreement, finance the cost of or otherwise provide
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1 for the collection or remittance of dues, assessments, fees,
2 or other periodic payments of money for the cost of:
3 (1) A membership in an automobile club. The term
4 "automobile club" means a legal entity which, in consideration
5 of dues, assessments, or periodic payments of money, promises
6 its members or subscribers to assist them in matters relating
7 to the ownership, operation, use, or maintenance of a motor
8 vehicle; however, this definition of "automobile club" does
9 not include persons, associations, or corporations which are
10 organized and operated solely for the purpose of conducting,
11 sponsoring, or sanctioning motor vehicle races, exhibitions,
12 or contests upon racetracks, or upon racecourses established
13 and marked as such for the duration of such particular events.
14 The words "motor vehicle" used herein have the same meaning as
15 defined in chapter 320.
16 (2) An accidental death and dismemberment policy sold
17 in combination with a personal injury protection and property
18 damage only policy.
19 (3) Any product not regulated under the provisions of
20 this insurance code.
21
22 This section also applies to premium financing by any
23 insurance agent or insurance company under part XVI. The
24 department shall adopt promulgate rules to assure disclosure,
25 at the time of sale, of coverages financed with personal
26 injury protection and shall prescribe the form of such
27 disclosure.
28 Section 32. Subsection (3) is added to section
29 627.848, Florida Statutes, to read:
30 627.848 Cancellation of insurance contract upon
31 default.--
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1 (3) The department shall adopt a standard cancellation
2 notice for use by premium finance companies in canceling
3 insurance policies. The department shall specify the color of
4 the notice so as to promote usability and standardization.
5 Section 33. Subsection (1) of section 627.918, Florida
6 Statutes, is amended to read:
7 627.918 Reporting formats.--
8 (1) The department shall require that the reporting
9 provided for in this part be made on forms approved
10 established by the department or in a format compatible with
11 its electronic data processing equipment. The department shall
12 establish by rule standards for approving the forms.
13 Section 34. Section 627.955, Florida Statutes, is
14 created to read:
15 627.955 Limitation on deductibles.--A purchasing group
16 may not purchase insurance that provides for a deductible or
17 self-insured retention that is applicable to the group as a
18 whole. However, coverage may provide for a deductible or
19 self-insured retention that is applicable to individual
20 members.
21 Section 35. Subsection (3) is added to section
22 635.071, Florida Statutes, to read:
23 635.071 Filings, approval of forms; rate filings.--
24 (3) An insurer may not insure mortgages that are
25 offered for sale to the public by advertisement, whether in
26 newspapers, brochures, direct mailings, or similar media, if
27 the advertisement expressly or impliedly represents or
28 stresses that the worth, value, or safety of the mortgage
29 investment arises by virtue of the proposed mortgage guaranty
30 insurance rather than by virtue of the safety inherent in the
31 value of the underlying security as it relates to the face
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1 value of the mortgage debt, or if the advertisement stresses
2 the fact that the mortgage guaranty insurance is regulated by
3 an agency of the state or Federal Government.
4 Section 36. Section 636.0225, Florida Statutes, is
5 created to read:
6 636.0225 Conversion on termination of eligibility.--A
7 group prepaid limited health service contract delivered or
8 issued for delivery in this state by a prepaid limited health
9 service organization must provide that a subscriber or covered
10 dependent whose coverage under the group prepaid limited
11 health service contract has been terminated for any reason,
12 including discontinuance of the group prepaid limited health
13 service contract in its entirety or with respect to a covered
14 class, and who has been continuously covered under the group
15 prepaid limited health service contract or under any group
16 prepaid limited health service contract that provides similar
17 benefits which it replaces, for at least 3 months immediately
18 prior to termination, is entitled to have issued to him or her
19 by the prepaid limited health service organization a prepaid
20 limited health service contract, referred to in this section
21 as a "converted contract." A subscriber or covered dependent
22 is not entitled to have a converted contract issued to him or
23 her if termination of his or her coverage under the group
24 prepaid limited health service contract occurred for any of
25 the following reasons:
26 (1) Failure to pay any required premium or
27 contribution, unless such nonpayment was due to acts of an
28 employer or person other than the individual;
29 (2) Replacement of any discontinued group coverage by
30 similar group coverage within 31 days;
31
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1 (3) Fraud or material misrepresentation in applying
2 for any benefits under the prepaid limited health service
3 contract;
4 (4) Willful and knowing misuse of the prepaid limited
5 health service organization identification membership card by
6 the subscriber;
7 (5) Willfully and knowingly furnishing incorrect or
8 incomplete information to the organization for the purpose of
9 fraudulently obtaining coverage or benefits from the
10 organization;
11 (6) The subscriber has left the geographic area of the
12 prepaid limited health service organization with the intent to
13 relocate or establish a new residence outside the
14 organization's geographic area; or
15 (7) The subscriber or covered dependent was
16 disenrolled for cause. A prepaid limited health service
17 organization may disenroll a subscriber for cause only if the
18 subscriber's behavior is disruptive, unruly, abusive, or
19 uncooperative to the extent that his or her continuing
20 membership in the organization seriously impairs the
21 organization's ability to furnish services to the subscriber
22 or other subscribers, and if the organization has:
23 (a) Made a serious effort to resolve the problem
24 presented by the subscriber, including the use or attempted
25 use of grievance procedures;
26 (b) Ascertained that the subscriber's behavior does
27 not directly result from an existing medical condition; and
28 (c) Documented the problems, efforts, and medical
29 conditions, as described in this subsection.
30 Section 37. Section 636.0226, Florida Statutes, is
31 created to read:
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1 636.0226 Conversion contracts; conditions.--Issuance
2 of a converted prepaid limited health services contract is
3 subject to the following conditions:
4 (1) TIME LIMIT.--Written application for a converted
5 prepaid limited health services contract must be made and the
6 first premium paid to the prepaid limited health service
7 organization not later than 63 days after such termination.
8 However, if termination was the result of failure to pay any
9 required premium or contribution and such nonpayment of
10 premium was due to acts of an employer, group contract holder,
11 or person other than the subscriber, written application for
12 the contract must be made and the first premium must be paid
13 not later than 63 days after notice of termination is mailed
14 by the organization, the employer, or person, whichever is
15 earlier, to the subscriber's last address as shown by the
16 record of the organization, whichever is applicable. In the
17 case of termination due to nonpayment of premium by the group
18 contract holder, the premium for the converted contract may
19 not exceed the rate for the prior group coverage for the
20 period of coverage under the converted contract prior to the
21 date notice of termination is mailed to the employee or
22 individual subscriber. For the period of coverage after such
23 date, the premium for the converted contract is subject to the
24 requirements of subsection (3).
25 (2) EVIDENCE OF INSURABILITY.--The converted contract
26 shall be issued without evidence of insurability.
27 (3) CONVERSION PREMIUM.--The premium for the converted
28 contract shall be determined in accordance with premium rates
29 applicable to the age and class of risk of each person to be
30 covered under the converted contract and to the type and
31 amount of coverage provided. However, the premium for the
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1 converted contract may not exceed 200 percent of the prior
2 premium. The mode of payment for the converted contract shall
3 be quarterly or more frequently at the option of the
4 organization, unless otherwise mutually agreed upon between
5 the subscriber and the organization.
6 (4) EFFECTIVE DATE OF COVERAGE.--The effective date of
7 the converted contract shall be the day following the
8 termination of coverage under the group prepaid limited health
9 service contract. However, until application is made and the
10 first premium is paid, the prepaid limited health service
11 organization may charge the subscriber, on a fee-for-service
12 basis, for any services rendered to the subscriber after the
13 date on which the subscriber ceases to be eligible under the
14 group prepaid limited health service contract. When
15 application is made and the first premium is paid, the
16 organization shall reimburse the subscriber for any payment
17 made by the subscriber for covered services under the
18 converted contract.
19 (5) SCOPE OF COVERAGE.--The converted contract shall
20 cover the subscriber or dependents who were covered by the
21 group prepaid limited health service contract on the date of
22 termination of coverage. At the option of the prepaid limited
23 health service organization, a separate converted contract may
24 be issued to cover any dependent.
25 (6) OPTIONAL COVERAGE.--
26 (a) The prepaid limited health service organization is
27 not required to issue a converted prepaid limited health
28 service contract covering any person if:
29 1. The person is covered for similar benefits by
30 another policy or plan;
31
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1 2. The person is eligible for similar benefits,
2 whether or not covered therefor, under any arrangement of
3 coverage for individuals in a group, whether on an insured or
4 uninsured basis; or
5 3. Similar benefits are provided for or are available
6 to the person pursuant to or in accordance with the
7 requirements of any state or federal law.
8 (b) A converted prepaid limited health service
9 contract may include a provision whereby the prepaid limited
10 health service organization may request information, in
11 advance of any premium due date of a prepaid limited health
12 service contract, of any person covered thereunder as to
13 whether:
14 1. She or he is covered for similar benefits by
15 another policy or plan;
16 2. She or he is covered for similar benefits under any
17 arrangement of coverage for individuals in a group, whether on
18 an insured or uninsured basis; or
19 3. Similar benefits are provided for or are available
20 to the person pursuant to or in accordance with the
21 requirements of any state or federal law.
22 (7) REASONS FOR CANCELLATION; TERMINATION.--The
23 converted prepaid limited health service contract must contain
24 a cancellation or nonrenewability clause that provides that
25 the prepaid limited health service organization may refuse to
26 renew the contract of any person covered under the contract,
27 but cancellation or nonrenewal must be limited to one or more
28 of the following reasons:
29 (a) Fraud or intentional misrepresentation in applying
30 for any benefits under the converted prepaid limited health
31 service contract.
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1 (b) Disenrollment for cause, after following the
2 procedures outlined by the prepaid limited health services
3 organization.
4 (c) Willful and knowing misuse of the prepaid limited
5 health service organization identification membership card by
6 the subscriber or the willful and knowing furnishing to the
7 organization by the subscriber of incorrect or incomplete
8 information for the purpose of fraudulently obtaining coverage
9 or benefits from the organization.
10 (d) Failure, after notice, to pay required premiums.
11 (e) The subscriber has left the geographic area of the
12 prepaid limited health service organization with the intent to
13 relocate or establish a new residence outside the
14 organization's geographic area.
15 (f) A dependent of the subscriber has reached the
16 limiting age under the converted contract, subject to
17 subsection (12); however the refusal to renew coverage applies
18 only to coverage of the dependent, except in the case of
19 handicapped children.
20 (g) A change in marital status which makes a person
21 ineligible under the original terms of the converted contract,
22 subject to subsection (12).
23 (8) BENEFITS OFFERED.--A prepaid limited health
24 service organization is not required to issue a converted
25 contract that provides benefits in excess of those provided
26 under the group prepaid limited health service contract from
27 which conversion is made. The converted prepaid limited health
28 service contract must meet the requirements of law pertaining
29 to prepaid limited health service contracts and must include a
30 level of benefits for minimum services which is substantially
31 similar to the level of benefits for these services included
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1 in the group prepaid limited health service organization
2 contract from which the termination is made.
3 (9) PREEXISTING-CONDITION PROVISION.--The converted
4 prepaid limited health service contract may not exclude a
5 preexisting condition that is not excluded by the group
6 contract. However, the converted prepaid limited health
7 service contract may provide that any coverage benefits may be
8 reduced by the amount of any coverage or benefits under the
9 group prepaid limited health service contract after the
10 termination of the person's coverage or benefits under the
11 contract. The converted prepaid limited health service
12 contract may also include provisions so that during the first
13 coverage year the coverage or benefits under the converted
14 contract, together with the coverage or benefits under the
15 group prepaid limited health service contract, may not exceed
16 those that would have been provided if the individual's
17 coverage or benefits under the group contract had remained in
18 force and effect.
19 (10) CONVERSION PRIVILEGE ALLOWED.--Subject to the
20 conditions set forth in this section, the conversion privilege
21 shall also be available to:
22 (a) The surviving spouse, if any, at the death of the
23 subscriber, with respect to the spouse and such children whose
24 coverages under the group prepaid limited health service
25 contract terminate by reason of such death, otherwise to each
26 surviving child whose coverage under the group prepaid limited
27 health service contract terminates by reason of such death or,
28 if the group contract provides for continuation of dependents'
29 coverages following the subscriber's death, at the end of such
30 continuation;
31
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1 (b) The former spouse whose coverage would otherwise
2 terminate because of annulment or dissolution of marriage, if
3 the former spouse is dependent for financial support;
4 (c) The spouse of the subscriber upon termination of
5 coverage of the spouse, while the subscriber remains covered
6 under the group prepaid limited health service contract, by
7 reason of ceasing to be a qualified family member under the
8 group prepaid limited health service contract, with respect to
9 the spouse and such children whose coverages under the group
10 prepaid limited health service contract terminate at the same
11 time; or
12 (d) A child solely with respect to herself or himself
13 upon termination of the child's coverage by reason of ceasing
14 to be a qualified family member under the group prepaid
15 limited health service contract or under any converted
16 contract, if a conversion privilege is not otherwise provided
17 under this subsection with respect to such termination.
18 (11) GROUP COVERAGE IN LIEU OF INDIVIDUAL
19 COVERAGE.--The prepaid limited health service organization may
20 elect to provide group prepaid limited health service
21 organization coverage through a group converted contract in
22 lieu of the issuance of an individual converted contract.
23 (12) NOTIFICATION.--A notification of the conversion
24 privilege must be included in each prepaid limited health
25 service contract and in any certificate or member's handbook.
26 The organization shall mail an election and premium notice
27 form, including an outline of coverage, on a form approved by
28 the department, within 14 days after any individual who is
29 eligible for a converted prepaid limited health service
30 contract gives notice to the organization that the individual
31 is considering applying for the converted contract or
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1 otherwise requests such information. The outline of coverage
2 must contain a description of the principal benefits and
3 coverage provided by the contract and its principal exclusions
4 and limitations, including, but not limited to, deductibles
5 and coinsurance.
6 Section 38. Section 648.4425, Florida Statutes, is
7 amended to read:
8 648.4425 Notice.--Upon issuing a bond, the bail bond
9 agent shall provide to the principal and, if applicable, to
10 the party rendering collateral or indemnifying the principal
11 an informational notice which shall include:
12 (1) A statement noting with particularity the
13 restrictions, if any, placed on the principal as a condition
14 of the bond;
15 (2) A statement of the bail bond agent's powers
16 relating to the cancellation of the bond and recommitment of
17 the principal; and
18 (3) The name, address, and telephone number of the
19 department for complaints or inquiries.
20
21 The department shall prescribe forms to administer this
22 section.
23 Section 39. Subsection (6) is added to section
24 651.033, Florida Statutes, to read:
25 651.033 Escrow accounts.--
26 (6) The department is a party in interest and a
27 required signator to any escrow agreement or letter of credit
28 and to any amendment to an escrow agreement or letter of
29 credit.
30 Section 40. Subsection (4) is added to section
31 791.015, Florida Statutes, to read:
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1 791.015 Registration of manufacturers, distributors,
2 wholesalers, and retailers of sparklers.--
3 (4) RULES.--The State Fire Marshal may adopt rules
4 establishing a form to be used by entities wishing to do
5 business in this state pursuant to this section.
6 Section 41. This act shall take effect upon becoming a
7 law.
8
9 *****************************************
10 SENATE SUMMARY
11 Revises various provisions pertaining to the regulatory
authority of the Department of Insurance. Revises
12 requirements for regulating the operation of boilers.
Provides for rules governing market conduct examinations.
13 Provides for rules governing certain applications by
foreign insurers. Requires that health insurers provide
14 information to the department pertaining to the training
and instruction of agents. Provides for rules governing
15 certain investments by domestic life insurers. Provides
for rules governing the license application process for
16 insurance representatives. Revises requirements for
course providers, instructors, and other groups that
17 provide prelicensure education for insurance agents and
other licensees. Provides for rules governing the
18 appointment of customer representatives. Prohibits
certain discriminatory practices with respect to motor
19 vehicle insurance. Provides additional requirements for
insurance sold in connection with an extension of credit
20 or the sale or lease of goods or services. Revises
requirements for insurers and rating organizations in
21 establishing rates. Provides for rules governing claims
under commercial motor vehicle policies. Requires that
22 the residual market boards adopt rules to prevent
conflicts of interest and inappropriate behavior. Revises
23 provisions governing the issuance of health insurance.
Limits the use of the terms "noncancelable" or
24 "noncancelable and guaranteed renewable" by insurers.
Requires that motor vehicle policies that do not provide
25 coverage for bodily injury and property damage liability
or that do not comply with the Florida Motor Vehicle
26 No-Fault Law contain certain notice provisions. Provides
additional requirements for title insurance commitments
27 and persons performing title searches. Requires that
group prepaid limited health service contracts provide
28 for conversion upon termination of eligibility. Provides
requirements for such conversion contracts. Authorizes
29 the State Fire Marshal to adopt registration forms for
use by sparkler manufacturers and distributors. (See bill
30 for details.)
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