CODING: Words stricken are deletions; words underlined are additions.



                                                   HOUSE AMENDMENT

    hbd-22                                 Bill No. CS for SB 1362

    Amendment No. ___ (for drafter's use only)

                            CHAMBER ACTION
              Senate                               House
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  4  ______________________________________________________________

  5                                           ORIGINAL STAMP BELOW

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10  ______________________________________________________________

11  Representative(s) Brown offered the following:

12

13         Substitute Amendment to Amendment (434325) (with title

14  amendment) 

15         On page 8, between lines 4 and 5,

16

17  insert:

18         Section 5.  Paragraph (o) of subsection (1) of section

19  626.9541, Florida Statutes, is amended to read:

20         626.9541  Unfair methods of competition and unfair or

21  deceptive acts or practices defined.--

22         (1)  UNFAIR METHODS OF COMPETITION AND UNFAIR OR

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

24  of competition and unfair or deceptive acts or practices:

25         (o)  Illegal dealings in premiums; excess or reduced

26  charges for insurance.--

27         1.  Knowingly collecting any sum as a premium or charge

28  for insurance, which is not then provided, or is not in due

29  course to be provided, subject to acceptance of the risk by

30  the insurer, by an insurance policy issued by an insurer as

31  permitted by this code.

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    File original & 9 copies    03/20/02
    hbd0016                     10:49 am         01362-0005-293031




                                                   HOUSE AMENDMENT

    hbd-22                                 Bill No. CS for SB 1362

    Amendment No. ___ (for drafter's use only)





  1         2.  Knowingly collecting as a premium or charge for

  2  insurance any sum in excess of or less than the premium or

  3  charge applicable to such insurance, in accordance with the

  4  applicable classifications and rates as filed with and

  5  approved by the department, and as specified in the policy;

  6  or, in cases when classifications, premiums, or rates are not

  7  required by this code to be so filed and approved, premiums

  8  and charges in excess of or less than those specified in the

  9  policy and as fixed by the insurer.  This provision shall not

10  be deemed to prohibit the charging and collection, by surplus

11  lines agents licensed under part VIII of this chapter, of the

12  amount of applicable state and federal taxes, or fees as

13  authorized by s. 626.916(4), in addition to the premium

14  required by the insurer or the charging and collection, by

15  licensed agents, of the exact amount of any discount or other

16  such fee charged by a credit card facility in connection with

17  the use of a credit card, as authorized by subparagraph (q)3.,

18  in addition to the premium required by the insurer. In

19  addition, a licensed insurance agent may charge a new or

20  initial per-policy processing fee not to exceed $25 for small

21  group health, homeowners', and automobile insurance policies.

22  This subparagraph shall not be construed to prohibit

23  collection of a premium for a universal life or a variable or

24  indeterminate value insurance policy made in accordance with

25  the terms of the contract.

26         3.a.  Imposing or requesting an additional premium for

27  a policy of motor vehicle liability, personal injury

28  protection, medical payment, or collision insurance or any

29  combination thereof or refusing to renew the policy solely

30  because the insured was involved in a motor vehicle accident

31  unless the insurer's file contains information from which the

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    File original & 9 copies    03/20/02
    hbd0016                     10:49 am         01362-0005-293031




                                                   HOUSE AMENDMENT

    hbd-22                                 Bill No. CS for SB 1362

    Amendment No. ___ (for drafter's use only)





  1  insurer in good faith determines that the insured was

  2  substantially at fault in the accident.

  3         b.  An insurer which imposes and collects such a

  4  surcharge or which refuses to renew such policy shall, in

  5  conjunction with the notice of premium due or notice of

  6  nonrenewal, notify the named insured that he or she is

  7  entitled to reimbursement of such amount or renewal of the

  8  policy under the conditions listed below and will subsequently

  9  reimburse him or her or renew the policy, if the named insured

10  demonstrates that the operator involved in the accident was:

11         (I)  Lawfully parked;

12         (II)  Reimbursed by, or on behalf of, a person

13  responsible for the accident or has a judgment against such

14  person;

15         (III)  Struck in the rear by another vehicle headed in

16  the same direction and was not convicted of a moving traffic

17  violation in connection with the accident;

18         (IV)  Hit by a "hit-and-run" driver, if the accident

19  was reported to the proper authorities within 24 hours after

20  discovering the accident;

21         (V)  Not convicted of a moving traffic violation in

22  connection with the accident, but the operator of the other

23  automobile involved in such accident was convicted of a moving

24  traffic violation;

25         (VI)  Finally adjudicated not to be liable by a court

26  of competent jurisdiction;

27         (VII)  In receipt of a traffic citation which was

28  dismissed or nolle prossed; or

29         (VIII)  Not at fault as evidenced by a written

30  statement from the insured establishing facts demonstrating

31  lack of fault which are not rebutted by information in the

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    File original & 9 copies    03/20/02
    hbd0016                     10:49 am         01362-0005-293031




                                                   HOUSE AMENDMENT

    hbd-22                                 Bill No. CS for SB 1362

    Amendment No. ___ (for drafter's use only)





  1  insurer's file from which the insurer in good faith determines

  2  that the insured was substantially at fault.

  3         c.  In addition to the other provisions of this

  4  subparagraph, an insurer may not fail to renew a policy if the

  5  insured has had only one accident in which he or she was at

  6  fault within the current 3-year period. However, an insurer

  7  may nonrenew a policy for reasons other than accidents in

  8  accordance with s. 627.728.  This subparagraph does not

  9  prohibit nonrenewal of a policy under which the insured has

10  had three or more accidents, regardless of fault, during the

11  most recent 3-year period.

12         4.  Imposing or requesting an additional premium for,

13  or refusing to renew, a policy for motor vehicle insurance

14  solely because the insured committed a noncriminal traffic

15  infraction as described in s. 318.14 unless the infraction is:

16         a.  A second infraction committed within an 18-month

17  period, or a third or subsequent infraction committed within a

18  36-month period.

19         b.  A violation of s. 316.183, when such violation is a

20  result of exceeding the lawful speed limit by more than 15

21  miles per hour.

22         5.  Upon the request of the insured, the insurer and

23  licensed agent shall supply to the insured the complete proof

24  of fault or other criteria which justifies the additional

25  charge or cancellation.

26         6.  No insurer shall impose or request an additional

27  premium for motor vehicle insurance, cancel or refuse to issue

28  a policy, or refuse to renew a policy because the insured or

29  the applicant is a handicapped or physically disabled person,

30  so long as such handicap or physical disability does not

31  substantially impair such person's mechanically assisted

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    File original & 9 copies    03/20/02
    hbd0016                     10:49 am         01362-0005-293031




                                                   HOUSE AMENDMENT

    hbd-22                                 Bill No. CS for SB 1362

    Amendment No. ___ (for drafter's use only)





  1  driving ability.

  2         7.  No insurer may cancel or otherwise terminate any

  3  insurance contract or coverage, or require execution of a

  4  consent to rate endorsement, during the stated policy term for

  5  the purpose of offering to issue, or issuing, a similar or

  6  identical contract or coverage to the same insured with the

  7  same exposure at a higher premium rate or continuing an

  8  existing contract or coverage with the same exposure at an

  9  increased premium.

10         8.  No insurer may issue a nonrenewal notice on any

11  insurance contract or coverage, or require execution of a

12  consent to rate endorsement, for the purpose of offering to

13  issue, or issuing, a similar or identical contract or coverage

14  to the same insured at a higher premium rate or continuing an

15  existing contract or coverage at an increased premium without

16  meeting any applicable notice requirements.

17         9.  No insurer shall, with respect to premiums charged

18  for motor vehicle insurance, unfairly discriminate solely on

19  the basis of age, sex, marital status, or scholastic

20  achievement.

21         10.  Imposing or requesting an additional premium for

22  motor vehicle comprehensive or uninsured motorist coverage

23  solely because the insured was involved in a motor vehicle

24  accident or was convicted of a moving traffic violation.

25         11.  No insurer shall cancel or issue a nonrenewal

26  notice on any insurance policy or contract without complying

27  with any applicable cancellation or nonrenewal provision

28  required under the Florida Insurance Code.

29         12.  No insurer shall impose or request an additional

30  premium, cancel a policy, or issue a nonrenewal notice on any

31  insurance policy or contract because of any traffic infraction

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    File original & 9 copies    03/20/02
    hbd0016                     10:49 am         01362-0005-293031




                                                   HOUSE AMENDMENT

    hbd-22                                 Bill No. CS for SB 1362

    Amendment No. ___ (for drafter's use only)





  1  when adjudication has been withheld and no points have been

  2  assessed pursuant to s. 318.14(9) and (10).  However, this

  3  subparagraph does not apply to traffic infractions involving

  4  accidents in which the insurer has incurred a loss due to the

  5  fault of the insured.

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  7

  8  ================ T I T L E   A M E N D M E N T ===============

  9  And the title is amended as follows:

10         On page 8, line 28, after the semicolon,

11

12  insert:

13         amending s. 626.9541, F.S.; permitting licensed

14         insurance agents to charge certain processing

15         fees; limiting the amount of such fees;

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    File original & 9 copies    03/20/02
    hbd0016                     10:49 am         01362-0005-293031