Senate Bill sb0450

    Florida Senate - 2005                                   SB 450

    By Senator Geller





    31-46-05

  1                      A bill to be entitled

  2         An act relating to unfair insurance practices;

  3         amending s. 626.9541, F.S.; providing that

  4         certain rate increases for motor vehicle

  5         insurance for insureds on active military

  6         service constitute unfair practices; providing

  7         penalties; providing an effective date.

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

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11         Section 1.  Paragraph (cc) is added to subsection (1)

12  of section 626.9541, Florida Statutes, to read:

13         626.9541  Unfair methods of competition and unfair or

14  deceptive acts or practices defined.--

15         (1)  UNFAIR METHODS OF COMPETITION AND UNFAIR OR

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

17  of competition and unfair or deceptive acts or practices:

18         (cc)  Unfair rate increases for persons in military

19  service.--Charging an increased premium for reinstating a

20  motor vehicle insurance policy that was canceled or suspended

21  by the insured solely for the reason that he or she was

22  transferred out of this state while serving in the United

23  States Armed Forces or on active duty in the National Guard or

24  United States Armed Forces Reserve. It is also an unfair

25  practice for an insurer to charge an increased premium for a

26  new motor vehicle insurance policy if the applicant for

27  coverage was previously insured with a different insurer and

28  canceled that policy solely for the reason that he or she was

29  transferred out of this state while serving in the United

30  States Armed Forces or on active duty in the National Guard or

31  United States Armed Forces Reserve. For purposes of

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    Florida Senate - 2005                                   SB 450
    31-46-05




 1  determining premiums, an insurer shall consider such persons

 2  as having maintained continuous coverage.

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

 4  law.

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 7                          SENATE SUMMARY

 8    Declares it to be an unfair insurance practice for an
      insurer to charge an increased premium to reinstate motor
 9    vehicle insurance that has been canceled or suspended, or
      for a new policy that replaces a canceled policy issued
10    by a different insurer, when the sole reason that the
      policy was canceled or suspended by the insured was
11    service outside this state as part of the United States
      Armed Forces or on active duty with the Armed Forces
12    Reserve or the National Guard.

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