HB 299

1	A bill to be entitled
2	An act relating to travel-limited life insurance coverage;
3	providing a short title; amending s. 626.9541, F.S.;
4	specifying prohibited activities by insurers for life
5	insurance coverage relating to lawful travel experiences
6	or plans; authorizing the Financial Services Commission to
7	adopt rules and provide certain limited exceptions based
8	on emergency conditions and public policy; requiring
9	market conduct examinations of life insurers to include a
10	review of certain applications; providing for trebling
11	certain administrative fines for certain violations;
12	requiring the Office of Insurance Regulation to report
13	annually to the Legislature; providing report
14	requirements; providing an effective date.
15
16	Be It Enacted by the Legislature of the State of Florida:
17
18	Section 1.  This act may be cited as the "Freedom to Travel
19	Act."
20	Section 2.  Paragraph (dd) is added to subsection (1) of
21	section 626.9541, Florida Statutes, to read:
22	626.9541  Unfair methods of competition and unfair or
23	deceptive acts or practices defined.--
24	(1)  UNFAIR METHODS OF COMPETITION AND UNFAIR OR DECEPTIVE
25	ACTS.--The following are defined as unfair methods of
26	competition and unfair or deceptive acts or practices:
27	(dd)  Life insurance limitations based on past foreign
28	travel experiences or future foreign travel plans.--
29	1.  An insurer may not refuse life insurance to, refuse to
30	continue the life insurance of, or limit the amount, extent, or
31	kind of life insurance coverage available to an individual based
32	solely on the individual's past lawful foreign travel
33	experiences.
34	2.  An insurer may not refuse life insurance to, refuse to
35	continue the life insurance of, or limit the amount, extent, or
36	kind of life insurance coverage available to an individual based
37	solely on the individual's future lawful travel plans unless the
38	insurer can demonstrate and the Office of Insurance Regulation
39	determines that:
40	a.  Individuals who travel are a separate actuarially
41	supportable class whose risk of loss is different from those
42	individuals who do not travel; and
43	b.  Such risk classification is based upon sound actuarial
44	principles and actual or reasonably anticipated experience that
45	correlates to the risk of travel to a specific destination.
46	3.  The commission may adopt rules pursuant to ss.
47	120.536(1) and 120.54 necessary to implement this paragraph and
48	may provide for limited exceptions that are based upon national
49	or international emergency conditions that affect the public
50	health, safety, and welfare and that are consistent with public
51	policy.
52	4.  Each market conduct examination of a life insurer
53	conducted pursuant to s. 624.3161 shall include a review of
54	every application under which such insurer refused to issue life
55	insurance, refused to continue life insurance, or limited the
56	amount, extent, or kind of life insurance issued, based upon
57	future lawful travel plans.
58	5.  The administrative fines provided in s. 624.4211(2) and
59	(3) shall be trebled for violations of this paragraph.
60	6.  The Office of Insurance Regulation shall report to the
61	President of the Senate and the Speaker of the House of
62	Representatives by March 1, 2007, and on the same date annually
63	thereafter, on the implementation of this paragraph. The report
64	shall include, but not be limited to, the number of applications
65	under which life insurance was denied, continuance was refused,
66	or coverage was limited based on future travel plans, the number
67	of insurers taking such action, and the reason for taking each
68	such action.
69	Section 3.  This act shall take effect July 1, 2006.

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