| 1 | Representative Ross offered the following: |
| 2 |
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| 3 | Amendment (with title amendment) |
| 4 | Between lines 216 and 217 insert: |
| 5 | Section 4. Section 627.4141, Florida Statutes, is created |
| 6 | to read: |
| 7 | 627.4141 Mandatory arbitration clauses in certain life |
| 8 | policies.-- |
| 9 | (l) In order to facilitate the fair, prompt, economical, |
| 10 | and efficient resolution of disputes, an insurer may deliver or |
| 11 | issue for delivery to residents of this state a life insurance |
| 12 | policy, including group life and certificates of coverage, with |
| 13 | a death benefit of $50,000 or less that contains a provision |
| 14 | requiring the resolution of claims or disputes involving the |
| 15 | insurance policy through the use of mandatory binding |
| 16 | arbitration, provided that such provision complies with the |
| 17 | requirements of this section. |
| 18 | (2) The arbitration provision shall be set forth in the |
| 19 | policy or a separate endorsement and shall provide: |
| 20 | (a) A description of the arbitration process. |
| 21 | (b) A reasonable method for the selection of an impartial |
| 22 | arbitrator and, if the parties cannot agree upon an arbitrator |
| 23 | within 30 days of the demand for arbitration, the appointment of |
| 24 | an impartial arbitrator by the American Arbitration Association |
| 25 | or a similar organization. |
| 26 | (c) For payment by the insurer of the fees and expenses of |
| 27 | the arbitrator and administrative expenses of the arbitration. |
| 28 | (d) For commencement of the arbitration hearing within 90 |
| 29 | days after the commencement of the arbitration process and for |
| 30 | the rendering of the decision within a 30 days thereafter unless |
| 31 | waived by the person initiating the arbitration. |
| 32 | (e) The arbitration hearing will be conducted in the |
| 33 | county of residence of the person demanding arbitration unless |
| 34 | the parties agree to a different location. |
| 35 | (f) That the arbitrator apply the arbitration rules, |
| 36 | applicable policy provisions, and applicable law. |
| 37 | (g) The insurer provide a method of obtaining the rules |
| 38 | governing the arbitration without cost to the insured. |
| 39 | (3) The arbitration provision may contain other reasonable |
| 40 | provisions consistent with the fair, prompt, economical, and |
| 41 | efficient resolution of disputes. |
| 42 | (4) At the time of the application for a policy or |
| 43 | endorsement containing a mandatory arbitration clause, the |
| 44 | applicant must be provided with and sign a separate disclosure |
| 45 | statement that in clear and prominent language, displayed in 12 |
| 46 | point type, capitalized, and in bold print discloses the |
| 47 | following, where applicable that: |
| 48 | (a) The policy contains a binding arbitration agreement |
| 49 | that requires that all disputes related to the policy be |
| 50 | resolved through binding arbitration rather in a court of law. |
| 51 | (b) The results of the arbitration are binding on the |
| 52 | insured and the insurer. |
| 53 | (c) The arbitrator, who is independent and neutral, will |
| 54 | render a decision after listening to the positions of the |
| 55 | parties. |
| 56 | (d) Generally, courts are unwilling to review and change |
| 57 | decisions arising from binding arbitration. |
| 58 | (e) By accepting the insurance policy containing the |
| 59 | mandatory arbitration provision, the insured agrees to resolve |
| 60 | all disputes related to the policy through arbitration rather |
| 61 | than a court and that the insured waives all rights to a trial |
| 62 | by jury. |
| 63 | ================ T I T L E A M E N D M E N T ============= |
| 64 | Remove line 17 and insert: |
| 65 | plans; providing a definition; creating s. 627.4141, F.S.; |
| 66 | providing for mandatory arbitration clauses in certain life |
| 67 | insurance policies; providing requirements for such arbitration; |
| 68 | providing for disclosures to consumers of such provisions; |
| 69 | amending s. 636.044, F.S.; |