Senate Bill sb0764e1

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    CS for SB 764                                  First Engrossed



  1                      A bill to be entitled

  2         An act relating to travel-limited life

  3         insurance coverage; providing a short title;

  4         amending s. 626.9541, F.S.; specifying

  5         prohibited activities by insurers for life

  6         insurance coverage relating to lawful travel

  7         experiences or plans; authorizing the Financial

  8         Services Commission to adopt rules and provide

  9         certain limited exceptions based on emergency

10         conditions and public policy; requiring market

11         conduct examinations of life insurers to

12         include a review of certain applications;

13         providing for trebling certain administrative

14         fines for certain violations; requiring the

15         Office of Insurance Regulation to report

16         annually to the Legislature; providing report

17         requirements; providing an effective date.

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

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21         Section 1.  This act may be cited as the "Freedom to

22  Travel Act."

23         Section 2.  Paragraph (dd) is added to subsection (1)

24  of section 626.9541, Florida Statutes, to read:

25         626.9541  Unfair methods of competition and unfair or

26  deceptive acts or practices defined.--

27         (1)  UNFAIR METHODS OF COMPETITION AND UNFAIR OR

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

29  of competition and unfair or deceptive acts or practices:

30         (dd)  Life insurance limitations based on past foreign

31  travel experiences or future foreign travel plans.--


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    CS for SB 764                                  First Engrossed



 1         1.  An insurer may not refuse life insurance to, refuse

 2  to continue the life insurance of, or limit the amount,

 3  extent, or kind of life insurance coverage available to an

 4  individual based solely on the individual's past lawful

 5  foreign travel experiences.

 6         2.  An insurer may not refuse life insurance to, refuse

 7  to continue the life insurance of, or limit the amount,

 8  extent, or kind of life insurance coverage available to an

 9  individual based solely on the individual's future lawful

10  travel plans unless the insurer can demonstrate and the Office

11  of Insurance Regulation determines that:

12         a.  Individuals who travel are a separate actuarially

13  supportable class whose risk of loss is different from those

14  individuals who do not travel; and

15         b.  Such risk classification is based upon sound

16  actuarial principles and actual or reasonably anticipated

17  experience that correlates to the risk of travel to a specific

18  destination.

19         3.  The commission may adopt rules pursuant to ss.

20  120.536(1) and 120.54 necessary to implement this paragraph

21  and may provide for limited exceptions that are based upon

22  national or international emergency conditions that affect the

23  public health, safety, and welfare and that are consistent

24  with public policy.

25         4.  Each market conduct examination of a life insurer

26  conducted pursuant to s. 624.3161 shall include a review of

27  every application under which such insurer refused to issue

28  life insurance, refused to continue life insurance, or limited

29  the amount, extent, or kind of life insurance issued, based

30  upon future lawful travel plans.

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    CS for SB 764                                  First Engrossed



 1         5.  The administrative fines provided in s. 624.4211(2)

 2  and (3) shall be trebled for violations of this paragraph.

 3         6.  The Office of Insurance Regulation shall report to

 4  the President of the Senate and the Speaker of the House of

 5  Representatives by March 1, 2007, and on the same date

 6  annually thereafter, on the implementation of this paragraph.

 7  The report shall include, but not be limited to, the number of

 8  applications under which life insurance was denied,

 9  continuance was refused, or coverage was limited based on

10  future travel plans, the number of insurers taking such

11  action, and the reason for taking each such action.

12         Section 3.  This act shall take effect July 1, 2006.

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