CS/CS/HB 885

1	A bill to be entitled
2	An act relating to life insurance; creating s. 627.4605,
3	F.S.; specifying nonapplication of a required notice to a
4	current insurer of a policy replacement under certain
5	circumstances; amending s. 627.464, F.S.; providing a
6	limitation on the resale of certain annuities to third
7	parties; amending s. 627.552, F.S.; prohibiting the
8	creating or permitting of certain classes of employees for
9	group health insurance policy purposes; preserving an
10	employer's authority to require certain plan participation
11	as a condition of employment; amending s. 627.5575, F.S.;
12	revising the limitation on the amount of insurance for
13	spouses of dependent children of employees of members
14	under a group life insurance policy; providing an
15	effective date.
16
17	Be It Enacted by the Legislature of the State of Florida:
18
19	Section 1.  Section 627.4605, Florida Statutes, is created
20	to read:
21	627.4605  Replacement notice.-A notice to a current insurer
22	of a replacement of a current life insurance policy is not
23	required in a transaction involving:
24	(1)  An application to the current insurer that issued the
25	current policy or contract when a contractual change or
26	conversion privilege is being exercised;
27	(2)  A current policy or contract is being replaced by the
28	same insurer pursuant to a program filed with and approved by
29	the office; or
30	(3)  A term conversion privilege is being exercised among
31	corporate affiliates.
32	Section 2.  Subsection (2) of section 627.464, Florida
33	Statutes, is renumbered as subsection (3), and a new subsection
34	(2) is added to that section to read:
35	627.464  Annuity contracts, pure endowment contracts;
36	standard provisions.-
37	(2)  An annuity purchased, dedicated, or otherwise allocated
38	as part of a settlement to satisfy the requirements of 42 U.S.C. s.
39	1395y(b)(2) may not be sold to, or commuted by or for, a third
40	party unconnected to the settlement.
41	Section 3.  Paragraph (a) of subsection (1) of section
42	627.552, Florida Statutes, is amended to read:
43	627.552  Employee groups.-Subject to all of the
44	requirements of this section, the lives of a group of individual
45	employees of an employer may be insured, for the benefit of
46	persons other than the employer, under a policy issued to the
47	employer or to the trustees of a fund established by an
48	employer, which employer or board of trustees is deemed to be
49	the policyholder.
50	(1)(a)  The employees eligible for insurance under the
51	policy shall be all of the employees of the employer, or all of
52	any class or classes of employees determined by conditions
53	pertaining to their employment; however, a class of employees
54	may not be created or permitted that consists solely of
55	employees covered under the employer's group health plan. This
56	section does not prohibit an employer from requiring
57	participation in its group health plan as a condition of
58	employment.
59
60	This section does not affect the provisions of ss. 112.08-
61	112.14.
62	Section 4.  Subsection (3) of section 627.5575, Florida
63	Statutes, is amended to read:
64	627.5575  Group life insurance for dependents.-Except for a
65	policy issued under s. 627.553, a group life insurance policy
66	may be extended to insure the employees or members against loss
67	due to the deaths of their spouses and dependent children or any
68	class or classes thereof, subject to the following:
69	(3)  The amounts of insurance for any covered spouse or
70	dependent child under the policy may not exceed 50 percent of
71	the amount of insurance for which the employee or member is
72	insured.
73	Section 5.  This act shall take effect upon becoming a law.

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