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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