| 1 | A bill to be entitled |
| 2 | An act relating to life insurance; amending s. 626.2815, |
| 3 | F.S.; exempting certain life insurance agents from certain |
| 4 | continuing education requirements under certain |
| 5 | circumstances; providing an attestation requirement; |
| 6 | creating s. 627.4605, F.S.; specifying nonapplication of a |
| 7 | required notice to a current insurer of a policy |
| 8 | replacement under certain circumstances; amending s. |
| 9 | 627.464, F.S.; providing a limitation on the resale of |
| 10 | certain annuities to third parties; amending s. 627.552, |
| 11 | F.S.; prohibiting the creating or permitting of certain |
| 12 | classes of employees for group health insurance policy |
| 13 | purposes; preserving an employer's authority to require |
| 14 | certain plan participation as a condition of employment; |
| 15 | amending s. 627.5575, F.S.; revising the limitation on the |
| 16 | amount of insurance for spouses of dependent children of |
| 17 | employees of members under a group life insurance policy; |
| 18 | providing an effective date. |
| 19 |
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| 20 | Be It Enacted by the Legislature of the State of Florida: |
| 21 |
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| 22 | Section 1. Paragraph (k) of subsection (3) of section |
| 23 | 626.2815, Florida Statutes, is amended to read: |
| 24 | 626.2815 Continuing education required; application; |
| 25 | exceptions; requirements; penalties.- |
| 26 | (3) |
| 27 | (k)1. Any person who holds a license to solicit or sell |
| 28 | life insurance in this state must complete a minimum of 3 hours |
| 29 | in continuing education, approved by the department, on the |
| 30 | subject of suitability in annuity and life insurance |
| 31 | transactions. A licensee may use the hours obtained under this |
| 32 | subparagraph paragraph to satisfy the requirement for continuing |
| 33 | education in ethics under paragraph (a). |
| 34 | 2. An agent who has not sold individual life insurance |
| 35 | policies or annuity contracts during the continuing education |
| 36 | compliance cycle in question and does not have any active |
| 37 | individual life insurance policies or annuity contracts is |
| 38 | exempt from the requirements of subparagraph 1. In order to |
| 39 | apply the exemption, the department may require the filing of a |
| 40 | certification attesting that the agent has not sold individual |
| 41 | life insurance policies or annuity contracts during the |
| 42 | continuing education compliance cycle in question and does not |
| 43 | have any active individual life insurance policies or annuity |
| 44 | contracts. |
| 45 | Section 2. Section 627.4605, Florida Statutes, is created |
| 46 | to read: |
| 47 | 627.4605 Replacement notice.-A notice to a current insurer |
| 48 | of a replacement of a current life insurance policy is not |
| 49 | required in a transaction involving: |
| 50 | (1) An application to the current insurer that issued the |
| 51 | current policy or contract when a contractual change or |
| 52 | conversion privilege is being exercised; |
| 53 | (2) A current policy or contract is being replaced by the |
| 54 | same insurer pursuant to a program filed with and approved by |
| 55 | the office; or |
| 56 | (3) A term conversion privilege is being exercised among |
| 57 | corporate affiliates. |
| 58 | Section 3. Subsection (2) of section 627.464, Florida |
| 59 | Statutes, is renumbered as subsection (3), and a new subsection |
| 60 | (2) is added to that section to read: |
| 61 | 627.464 Annuity contracts, pure endowment contracts; |
| 62 | standard provisions.- |
| 63 | (2) An annuity purchased, dedicated, or otherwise allocated |
| 64 | as part of a settlement to satisfy the requirements of 42 U.S.C. s. |
| 65 | 1395y(b)(2) may not be sold to, or commuted by or for, a third |
| 66 | party unconnected to the settlement. |
| 67 | Section 4. Paragraph (a) of subsection (1) of section |
| 68 | 627.552, Florida Statutes, is amended to read: |
| 69 | 627.552 Employee groups.-Subject to all of the |
| 70 | requirements of this section, the lives of a group of individual |
| 71 | employees of an employer may be insured, for the benefit of |
| 72 | persons other than the employer, under a policy issued to the |
| 73 | employer or to the trustees of a fund established by an |
| 74 | employer, which employer or board of trustees is deemed to be |
| 75 | the policyholder. |
| 76 | (1)(a) The employees eligible for insurance under the |
| 77 | policy shall be all of the employees of the employer, or all of |
| 78 | any class or classes of employees determined by conditions |
| 79 | pertaining to their employment; however, a class of employees |
| 80 | may not be created or permitted that consists solely of |
| 81 | employees covered under the employer's group health plan. This |
| 82 | section does not prohibit an employer from requiring |
| 83 | participation in its group health plan as a condition of |
| 84 | employment. |
| 85 |
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| 86 | This section does not affect the provisions of ss. 112.08- |
| 87 | 112.14. |
| 88 | Section 5. Subsection (3) of section 627.5575, Florida |
| 89 | Statutes, is amended to read: |
| 90 | 627.5575 Group life insurance for dependents.-Except for a |
| 91 | policy issued under s. 627.553, a group life insurance policy |
| 92 | may be extended to insure the employees or members against loss |
| 93 | due to the deaths of their spouses and dependent children or any |
| 94 | class or classes thereof, subject to the following: |
| 95 | (3) The amounts of insurance for any covered spouse or |
| 96 | dependent child under the policy may not exceed 50 percent of |
| 97 | the amount of insurance for which the employee or member is |
| 98 | insured. |
| 99 | Section 6. This act shall take effect upon becoming a law. |