| 1 | The Insurance Committee recommends the following: |
| 2 |
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| 3 | Council/Committee Substitute |
| 4 | Remove the entire bill and insert: |
| 5 |
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| 6 | A bill to be entitled |
| 7 | An act relating to unfair insurance practices; amending s. |
| 8 | 626.9541, F.S.; providing that certain rate increases for |
| 9 | motor vehicle insurance for insureds on active military |
| 10 | service and their covered dependents constitute unfair |
| 11 | practices; providing penalties; providing an effective |
| 12 | date. |
| 13 |
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| 14 | Be It Enacted by the Legislature of the State of Florida: |
| 15 |
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| 16 | Section 1. Paragraph (cc) is added to subsection (1) of |
| 17 | section 626.9541, Florida Statutes, to read: |
| 18 | 626.9541 Unfair methods of competition and unfair or |
| 19 | deceptive acts or practices defined.-- |
| 20 | (1) UNFAIR METHODS OF COMPETITION AND UNFAIR OR DECEPTIVE |
| 21 | ACTS.--The following are defined as unfair methods of |
| 22 | competition and unfair or deceptive acts or practices: |
| 23 | (cc) Unfair rate increases for persons in military |
| 24 | service.--Charging an increased premium for reinstating a motor |
| 25 | vehicle insurance policy that was canceled or suspended by the |
| 26 | insured solely for the reason that he or she was transferred out |
| 27 | of this state while serving in the United States Armed Forces or |
| 28 | on active duty in the National Guard or United States Armed |
| 29 | Forces Reserve. It is also an unfair practice for an insurer to |
| 30 | charge an increased premium for a new motor vehicle insurance |
| 31 | policy if the applicant for coverage or his or her covered |
| 32 | dependents were previously insured with a different insurer and |
| 33 | canceled that policy solely for the reason that the applicant |
| 34 | was transferred out of this state while serving in the United |
| 35 | States Armed Forces or on active duty in the National Guard or |
| 36 | United States Armed Forces Reserve. For purposes of determining |
| 37 | premiums, an insurer shall consider such persons or their |
| 38 | covered dependents as having maintained continuous coverage. |
| 39 | Section 2. This act shall take effect upon becoming a law. |