House Bill hb0603

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    Florida House of Representatives - 2001                 HB 603

        By Representative Mahon






  1                      A bill to be entitled

  2         An act relating to unfair insurance trade

  3         practices; amending s. 626.9541, F.S.;

  4         expanding the exemption to the prohibited

  5         advertising, offering, or providing of

  6         specified forms of free insurance to include

  7         motor vehicle service agreements offered by the

  8         manufacturer at the time of sale of a new motor

  9         vehicle; providing an effective date.

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

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13         Section 1.  Paragraph (n) of subsection (1) of section

14  626.9541, Florida Statutes, is amended to read:

15         626.9541  Unfair methods of competition and unfair or

16  deceptive acts or practices defined.--

17         (1)  UNFAIR METHODS OF COMPETITION AND UNFAIR OR

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

19  of competition and unfair or deceptive acts or practices:

20         (n)  Free insurance prohibited.--

21         1.  Advertising, offering, or providing free insurance

22  as an inducement to the purchase or sale of real or personal

23  property or of services directly or indirectly connected with

24  such real or personal property.

25         2.  For the purposes of this paragraph, "free"

26  insurance is:

27         a.  Insurance for which no identifiable and additional

28  charge is made to the purchaser of such real property,

29  personal property, or services.

30         b.  Insurance for which an identifiable or additional

31  charge is made in an amount less than the cost of such

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    Florida House of Representatives - 2001                 HB 603

    781-101-01






  1  insurance as to the seller or other person, other than the

  2  insurer, providing the same.

  3         3.  Subparagraphs 1. and 2. do not apply to:

  4         a.  Insurance of, loss of, or damage to the real or

  5  personal property involved in any such sale or services, under

  6  a policy covering the interests therein of the seller or

  7  vendor.

  8         b.  Blanket disability insurance as defined in s.

  9  627.659.

10         c.  Credit life insurance or credit disability

11  insurance.

12         d.  Any individual, isolated, nonrecurring unadvertised

13  transaction not in the regular course of business.

14         e.  Title insurance.

15         f.  Any purchase agreement involving the purchase of a

16  cemetery lot or lots in which, under stated conditions, any

17  balance due is forgiven upon the death of the purchaser.

18         g.  Life insurance, trip cancellation insurance, or

19  lost baggage insurance offered by a travel agency as part of a

20  travel package offered by and booked through the agency.

21         h.  Motor vehicle service agreements offered by the

22  manufacturer at the time of sale of a new motor vehicle.

23         4.  Using the word "free" or words which imply the

24  provision of insurance without a cost to describe life or

25  disability insurance, in connection with the advertising or

26  offering for sale of any kind of goods, merchandise, or

27  services.

28         Section 2.  This act shall take effect upon becoming a

29  law.

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    Florida House of Representatives - 2001                 HB 603

    781-101-01






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  2                          HOUSE SUMMARY

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      Expands the exemption to the prohibited advertising,
  4    offering, or providing of specified forms of free
      insurance which constitute an unfair method of
  5    competition and unfair or deceptive act or practice to
      include motor vehicle service agreements offered by the
  6    manufacturer at the time of sale of a new motor vehicle.

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