CS for CS for SB 1860                            First Engrossed
       
       
       
       
       
       
       
       
       20121860e1
       
    1                        A bill to be entitled                      
    2         An act relating to motor vehicle personal injury
    3         protection insurance; amending s. 316.066, F.S.;
    4         revising the conditions for completing the long-form
    5         traffic crash report; revising the information
    6         contained in the short-form report; revising the
    7         requirements relating to the driver’s responsibility
    8         for submitting a report for crashes not requiring a
    9         law enforcement report; amending s. 400.9905, F.S.;
   10         providing that certain entities exempt from licensure
   11         as a health care clinic must nonetheless be licensed
   12         in order to receive reimbursement for the provision of
   13         personal injury protection benefits; amending s.
   14         400.991, F.S.; requiring that an application for
   15         licensure, or exemption from licensure, as a health
   16         care clinic include a statement regarding insurance
   17         fraud; amending s. 626.989, F.S.; providing that
   18         knowingly submitting false, misleading, or fraudulent
   19         documents relating to licensure as a health care
   20         clinic, or submitting a claim for personal injury
   21         protection relating to clinic licensure documents, is
   22         a fraudulent insurance act under certain conditions;
   23         amending s. 626.9581, F.S.; requiring the Department
   24         of Financial Services or the Office of Insurance
   25         Regulation to revoke the certificate of authority of
   26         an insurer that engages in unfair trade practices
   27         while providing motor vehicle personal injury
   28         protection insurance; amending s. 626.9894, F.S.;
   29         conforming provisions to changes made by act; creating
   30         s. 626.9895, F.S.; providing definitions; authorizing
   31         the Division of Insurance Fraud of the Department of
   32         Financial Services to establish a direct-support
   33         organization for the purpose of prosecuting,
   34         investigating, and preventing motor vehicle insurance
   35         fraud; providing requirements for, and duties of, the
   36         organization; requiring that the organization operate
   37         pursuant to a contract with the division; providing
   38         for the requirements of the contract; providing for a
   39         board of directors; authorizing the organization to
   40         use the division’s property and facilities subject to
   41         certain requirements; requiring that the department
   42         adopt rules relating to procedures for the
   43         organization’s governance and relating to conditions
   44         for the use of the division’s property or facilities;
   45         authorizing contributions from insurers; authorizing
   46         any moneys received by the organization to be held in
   47         a separate depository account in the name of the
   48         organization; requiring that the division deposit
   49         certain proceeds into the Insurance Regulatory Trust
   50         Fund; amending s. 627.736, F.S.; revising the cap on
   51         benefits to provide that death benefits are in
   52         addition to medical and disability benefits; revising
   53         medical benefits; distinguishing between initial and
   54         followup services; excluding massage and acupuncture
   55         from medical benefits that may be reimbursed under the
   56         Florida Motor Vehicle No-Fault Law; adding physical
   57         therapists to the list of providers that may provide
   58         services; requiring that an insurer repay any benefits
   59         covered by the Medicaid program; requiring that an
   60         insurer provide a claimant an opportunity to revise
   61         claims that contain errors; authorizing an insurer to
   62         provide notice to the claimant and conduct an
   63         investigation if fraud is suspected; requiring that an
   64         insurer create and maintain a log of personal injury
   65         protection benefits paid and that the insurer provide
   66         to the insured or an assignee of the insured, upon
   67         request, a copy of the log if litigation is commenced;
   68         revising the Medicare fee schedules that an insurer
   69         may use as a basis for limiting reimbursement of
   70         personal injury protection benefits; providing that
   71         the Medicare fee schedule in effect on a specific date
   72         applies for purposes of limiting reimbursement;
   73         requiring that an insurer that limits payments based
   74         on the statutory fee schedule include a notice in
   75         insurance policies at the time of issuance or renewal;
   76         deleting obsolete provisions; providing that certain
   77         entities exempt from licensure as a clinic must
   78         nonetheless be licensed to receive reimbursement for
   79         the provision of personal injury protection benefits;
   80         providing exceptions; requiring that an insurer notify
   81         parties in disputes over personal injury protection
   82         claims when policy limits are reached; providing
   83         criteria for the award of attorney fees; providing a
   84         presumption regarding the use of a contingency risk
   85         multiplier; consolidating provisions relating to
   86         unfair or deceptive practices under certain
   87         conditions; providing for demand notices to be
   88         submitted electronically; requiring that a person,
   89         entity, or licensee that makes a referral for medical
   90         benefits disclose referral fees in writing to the
   91         insured and insurer; eliminating a requirement that
   92         all parties mutually and expressly agree to the use of
   93         electronic transmission of data; amending s. 627.7405,
   94         F.S.; providing an exception from an insurer’s right
   95         of reimbursement for certain owners or registrants;
   96         amending s. 817.234, F.S.; providing that it is
   97         insurance fraud to present a claim for personal injury
   98         protection benefits payable to a person or entity that
   99         knowingly submitted false, misleading, or fraudulent
  100         documents relating to licensure as a health care
  101         clinic; providing that a licensed health care
  102         practitioner guilty of certain insurance fraud loses
  103         his or her license and may not receive reimbursement
  104         for personal injury protection benefits for a
  105         specified period; defining the term “insurer”;
  106         amending s. 316.065, F.S.; conforming a cross
  107         reference; requiring personal injury protection motor
  108         vehicle insurers to file rates with the Office of
  109         Insurance Regulation for review under certain
  110         circumstances; specifying a presumption with regard to
  111         rates for personal injury protection motor vehicle
  112         insurance; requiring that the Office of Insurance
  113         Regulation perform a data call relating to personal
  114         injury protection; prescribing required elements of
  115         the data call; providing for severability; providing
  116         effective dates.
  117  
  118  Be It Enacted by the Legislature of the State of Florida:
  119  
  120         Section 1. Subsection (1) of section 316.066, Florida
  121  Statutes, is amended to read:
  122         316.066 Written reports of crashes.—
  123         (1)(a) A Florida Traffic Crash Report, Long Form must is
  124  required to be completed and submitted to the department within
  125  10 days after completing an investigation is completed by the
  126  every law enforcement officer who in the regular course of duty
  127  investigates a motor vehicle crash that:
  128         1. Resulted in death or personal injury;.
  129         2. Involved a violation of s. 316.061(1) or s. 316.193;.
  130         3. Rendered a vehicle inoperable to a degree that required
  131  a wrecker to remove it from the scene of the crash; or
  132         4. Involved a commercial motor vehicle.
  133         (b) In any every crash for which a Florida Traffic Crash
  134  Report, Long Form is not required by this section and which
  135  occurs on the public roadways of this state, the law enforcement
  136  officer shall may complete a short-form crash report or provide
  137  a driver exchange-of-information form, to be completed by all
  138  drivers and passengers each party involved in the crash, which
  139  requires the identification of each vehicle that the drivers and
  140  passengers were in. The short-form report must include:
  141         1. The date, time, and location of the crash.
  142         2. A description of the vehicles involved.
  143         3. The names and addresses of the parties involved,
  144  including all drivers and passengers, and the identification of
  145  the vehicle in which each was a passenger.
  146         4. The names and addresses of witnesses.
  147         5. The name, badge number, and law enforcement agency of
  148  the officer investigating the crash.
  149         6. The names of the insurance companies for the respective
  150  parties involved in the crash.
  151         (c) Each party to the crash must provide the law
  152  enforcement officer with proof of insurance, which must be
  153  documented in the crash report. If a law enforcement officer
  154  submits a report on the crash, proof of insurance must be
  155  provided to the officer by each party involved in the crash. Any
  156  party who fails to provide the required information commits a
  157  noncriminal traffic infraction, punishable as a nonmoving
  158  violation as provided in chapter 318, unless the officer
  159  determines that due to injuries or other special circumstances
  160  such insurance information cannot be provided immediately. If
  161  the person provides the law enforcement agency, within 24 hours
  162  after the crash, proof of insurance that was valid at the time
  163  of the crash, the law enforcement agency may void the citation.
  164         (d) The driver of a vehicle that was in any manner involved
  165  in a crash resulting in damage to a any vehicle or other
  166  property which does not require a law enforcement report in an
  167  amount of $500 or more which was not investigated by a law
  168  enforcement agency, shall, within 10 days after the crash,
  169  submit a written report of the crash to the department. The
  170  report shall be submitted on a form approved by the department.
  171  The entity receiving the report may require witnesses of the
  172  crash to render reports and may require any driver of a vehicle
  173  involved in a crash of which a written report must be made to
  174  file supplemental written reports if the original report is
  175  deemed insufficient by the receiving entity.
  176         (e) Long-form and short-form crash reports prepared by law
  177  enforcement must be submitted to the department and may shall be
  178  maintained by the law enforcement officer’s agency.
  179         Section 2. Subsection (4) of section 400.9905, Florida
  180  Statutes, is amended to read:
  181         400.9905 Definitions.—
  182         (4) “Clinic” means an entity where at which health care
  183  services are provided to individuals and which tenders charges
  184  for reimbursement for such services, including a mobile clinic
  185  and a portable equipment provider. As used in For purposes of
  186  this part, the term does not include and the licensure
  187  requirements of this part do not apply to:
  188         (a) Entities licensed or registered by the state under
  189  chapter 395; or entities licensed or registered by the state and
  190  providing only health care services within the scope of services
  191  authorized under their respective licenses granted under ss.
  192  383.30-383.335, chapter 390, chapter 394, chapter 397, this
  193  chapter except part X, chapter 429, chapter 463, chapter 465,
  194  chapter 466, chapter 478, part I of chapter 483, chapter 484, or
  195  chapter 651; end-stage renal disease providers authorized under
  196  42 C.F.R. part 405, subpart U; or providers certified under 42
  197  C.F.R. part 485, subpart B or subpart H; or any entity that
  198  provides neonatal or pediatric hospital-based health care
  199  services or other health care services by licensed practitioners
  200  solely within a hospital licensed under chapter 395.
  201         (b) Entities that own, directly or indirectly, entities
  202  licensed or registered by the state pursuant to chapter 395; or
  203  entities that own, directly or indirectly, entities licensed or
  204  registered by the state and providing only health care services
  205  within the scope of services authorized pursuant to their
  206  respective licenses granted under ss. 383.30-383.335, chapter
  207  390, chapter 394, chapter 397, this chapter except part X,
  208  chapter 429, chapter 463, chapter 465, chapter 466, chapter 478,
  209  part I of chapter 483, chapter 484, chapter 651; end-stage renal
  210  disease providers authorized under 42 C.F.R. part 405, subpart
  211  U; or providers certified under 42 C.F.R. part 485, subpart B or
  212  subpart H; or any entity that provides neonatal or pediatric
  213  hospital-based health care services by licensed practitioners
  214  solely within a hospital licensed under chapter 395.
  215         (c) Entities that are owned, directly or indirectly, by an
  216  entity licensed or registered by the state pursuant to chapter
  217  395; or entities that are owned, directly or indirectly, by an
  218  entity licensed or registered by the state and providing only
  219  health care services within the scope of services authorized
  220  pursuant to their respective licenses granted under ss. 383.30
  221  383.335, chapter 390, chapter 394, chapter 397, this chapter
  222  except part X, chapter 429, chapter 463, chapter 465, chapter
  223  466, chapter 478, part I of chapter 483, chapter 484, or chapter
  224  651; end-stage renal disease providers authorized under 42
  225  C.F.R. part 405, subpart U; or providers certified under 42
  226  C.F.R. part 485, subpart B or subpart H; or any entity that
  227  provides neonatal or pediatric hospital-based health care
  228  services by licensed practitioners solely within a hospital
  229  under chapter 395.
  230         (d) Entities that are under common ownership, directly or
  231  indirectly, with an entity licensed or registered by the state
  232  pursuant to chapter 395; or entities that are under common
  233  ownership, directly or indirectly, with an entity licensed or
  234  registered by the state and providing only health care services
  235  within the scope of services authorized pursuant to their
  236  respective licenses granted under ss. 383.30-383.335, chapter
  237  390, chapter 394, chapter 397, this chapter except part X,
  238  chapter 429, chapter 463, chapter 465, chapter 466, chapter 478,
  239  part I of chapter 483, chapter 484, or chapter 651; end-stage
  240  renal disease providers authorized under 42 C.F.R. part 405,
  241  subpart U; or providers certified under 42 C.F.R. part 485,
  242  subpart B or subpart H; or any entity that provides neonatal or
  243  pediatric hospital-based health care services by licensed
  244  practitioners solely within a hospital licensed under chapter
  245  395.
  246         (e) An entity that is exempt from federal taxation under 26
  247  U.S.C. s. 501(c)(3) or (4), an employee stock ownership plan
  248  under 26 U.S.C. s. 409 that has a board of trustees at least not
  249  less than two-thirds of which are Florida-licensed health care
  250  practitioners and provides only physical therapy services under
  251  physician orders, any community college or university clinic,
  252  and any entity owned or operated by the federal or state
  253  government, including agencies, subdivisions, or municipalities
  254  thereof.
  255         (f) A sole proprietorship, group practice, partnership, or
  256  corporation that provides health care services by physicians
  257  covered by s. 627.419, that is directly supervised by one or
  258  more of such physicians, and that is wholly owned by one or more
  259  of those physicians or by a physician and the spouse, parent,
  260  child, or sibling of that physician.
  261         (g) A sole proprietorship, group practice, partnership, or
  262  corporation that provides health care services by licensed
  263  health care practitioners under chapter 457, chapter 458,
  264  chapter 459, chapter 460, chapter 461, chapter 462, chapter 463,
  265  chapter 466, chapter 467, chapter 480, chapter 484, chapter 486,
  266  chapter 490, chapter 491, or part I, part III, part X, part
  267  XIII, or part XIV of chapter 468, or s. 464.012, and that is
  268  which are wholly owned by one or more licensed health care
  269  practitioners, or the licensed health care practitioners set
  270  forth in this paragraph and the spouse, parent, child, or
  271  sibling of a licensed health care practitioner if, so long as
  272  one of the owners who is a licensed health care practitioner is
  273  supervising the business activities and is legally responsible
  274  for the entity’s compliance with all federal and state laws.
  275  However, a health care practitioner may not supervise services
  276  beyond the scope of the practitioner’s license, except that, for
  277  the purposes of this part, a clinic owned by a licensee in s.
  278  456.053(3)(b) which that provides only services authorized
  279  pursuant to s. 456.053(3)(b) may be supervised by a licensee
  280  specified in s. 456.053(3)(b).
  281         (h) Clinical facilities affiliated with an accredited
  282  medical school at which training is provided for medical
  283  students, residents, or fellows.
  284         (i) Entities that provide only oncology or radiation
  285  therapy services by physicians licensed under chapter 458 or
  286  chapter 459 or entities that provide oncology or radiation
  287  therapy services by physicians licensed under chapter 458 or
  288  chapter 459 which are owned by a corporation whose shares are
  289  publicly traded on a recognized stock exchange.
  290         (j) Clinical facilities affiliated with a college of
  291  chiropractic accredited by the Council on Chiropractic Education
  292  at which training is provided for chiropractic students.
  293         (k) Entities that provide licensed practitioners to staff
  294  emergency departments or to deliver anesthesia services in
  295  facilities licensed under chapter 395 and that derive at least
  296  90 percent of their gross annual revenues from the provision of
  297  such services. Entities claiming an exemption from licensure
  298  under this paragraph must provide documentation demonstrating
  299  compliance.
  300         (l) Orthotic or prosthetic clinical facilities that are a
  301  publicly traded corporation or that are wholly owned, directly
  302  or indirectly, by a publicly traded corporation. As used in this
  303  paragraph, a publicly traded corporation is a corporation that
  304  issues securities traded on an exchange registered with the
  305  United States Securities and Exchange Commission as a national
  306  securities exchange.
  307  
  308  Notwithstanding this subsection, an entity shall be deemed a
  309  clinic and must be licensed under this part in order to receive
  310  reimbursement under the Florida Motor Vehicle No-Fault Law, ss.
  311  627.730-627.7405, unless exempted under s. 627.736(5)(h). An
  312  entity required to be licensed in order to receive reimbursement
  313  under the Florida Motor Vehicle No-Fault Law is exempt from all
  314  license fees under this part.
  315         Section 3. Subsection (6) is added to section 400.991,
  316  Florida Statutes, to read:
  317         400.991 License requirements; background screenings;
  318  prohibitions.—
  319         (6) All agency forms for licensure application or exemption
  320  from licensure under this part must contain the following
  321  statement:
  322  
  323         INSURANCE FRAUD NOTICE.—A person who knowingly submits
  324         a false, misleading, or fraudulent application or
  325         other document when applying for licensure as a health
  326         care clinic, seeking an exemption from licensure as a
  327         health care clinic, or demonstrating compliance with
  328         part X of chapter 400, Florida Statutes, with the
  329         intent to use the license, exemption from licensure,
  330         or demonstration of compliance to provide services or
  331         seek reimbursement under the Florida Motor Vehicle No
  332         Fault Law, commits a fraudulent insurance act, as
  333         defined in s. 626.989, Florida Statutes. A person who
  334         presents a claim for personal injury protection
  335         benefits knowing that the payee knowingly submitted
  336         such health care clinic application or document,
  337         commits insurance fraud, as defined in s. 817.234,
  338         Florida Statutes.
  339         Section 4. Subsection (1) of section 626.989, Florida
  340  Statutes, is amended to read:
  341         626.989 Investigation by department or Division of
  342  Insurance Fraud; compliance; immunity; confidential information;
  343  reports to division; division investigator’s power of arrest.—
  344         (1) For the purposes of this section:,
  345         (a) A person commits a “fraudulent insurance act” if the
  346  person:
  347         1. Knowingly and with intent to defraud presents, causes to
  348  be presented, or prepares with knowledge or belief that it will
  349  be presented, to or by an insurer, self-insurer, self-insurance
  350  fund, servicing corporation, purported insurer, broker, or any
  351  agent thereof, any written statement as part of, or in support
  352  of, an application for the issuance of, or the rating of, any
  353  insurance policy, or a claim for payment or other benefit
  354  pursuant to any insurance policy, which the person knows to
  355  contain materially false information concerning any fact
  356  material thereto or if the person conceals, for the purpose of
  357  misleading another, information concerning any fact material
  358  thereto.
  359         2. Knowingly submits:
  360         a. A false, misleading, or fraudulent application or other
  361  document when applying for licensure as a health care clinic,
  362  seeking an exemption from licensure as a health care clinic, or
  363  demonstrating compliance with part X of chapter 400 with an
  364  intent to use the license, exemption from licensure, or
  365  demonstration of compliance to provide services or seek
  366  reimbursement under the Florida Motor Vehicle No-Fault Law.
  367         b. A claim for payment or other benefit pursuant to a
  368  personal injury protection insurance policy under the Florida
  369  Motor Vehicle No-Fault Law if the person knows that the payee
  370  knowingly submitted a false, misleading, or fraudulent
  371  application or other document when applying for licensure as a
  372  health care clinic, seeking an exemption from licensure as a
  373  health care clinic, or demonstrating compliance with part X of
  374  chapter 400. For the purposes of this section,
  375         (b) The term “insurer” also includes a any health
  376  maintenance organization, and the term “insurance policy” also
  377  includes a health maintenance organization subscriber contract.
  378         Section 5. Section 626.9581, Florida Statutes, is amended
  379  to read:
  380         626.9581 Cease and desist and penalty orders.—After the
  381  hearing provided in s. 626.9571, the department or office shall
  382  enter a final order in accordance with s. 120.569. If it is
  383  determined that the person charged has engaged in an unfair or
  384  deceptive act or practice or the unlawful transaction of
  385  insurance, the department or office shall also issue an order
  386  requiring the violator to cease and desist from engaging in such
  387  method of competition, act, or practice or the unlawful
  388  transaction of insurance. Further, if the act or practice is a
  389  violation of s. 626.9541, or s. 626.9551, or s. 627.736(11), the
  390  department or office may, at its discretion, order any one or
  391  more of the following:
  392         (1) Suspension or revocation of the person’s certificate of
  393  authority, license, or eligibility for any certificate of
  394  authority or license, if he or she knew, or reasonably should
  395  have known, he or she was in violation of this act. However, the
  396  office must revoke the certificate of authority of an insurer
  397  that violates s. 627.736(11) for at least 5 years, and all board
  398  members of such insurer are prohibited from serving on the board
  399  of another insurer for 5 years.
  400         (2) Such other relief as may be provided under in the
  401  insurance code.
  402         Section 6. Subsection (5) of section 626.9894, Florida
  403  Statutes, is amended to read:
  404         626.9894 Gifts and grants.—
  405         (5) Notwithstanding the provisions of s. 216.301 and
  406  pursuant to s. 216.351, any balance of moneys deposited into the
  407  Insurance Regulatory Trust Fund pursuant to this section or s.
  408  626.9895 remaining at the end of any fiscal year is shall be
  409  available for carrying out the duties and responsibilities of
  410  the division. The department may request annual appropriations
  411  from the grants and donations received pursuant to this section
  412  or s. 626.9895 and cash balances in the Insurance Regulatory
  413  Trust Fund for the purpose of carrying out its duties and
  414  responsibilities related to the division’s anti-fraud efforts,
  415  including the funding of dedicated prosecutors and related
  416  personnel.
  417         Section 7. Section 626.9895, Florida Statutes, is created
  418  to read:
  419         626.9895Motor vehicle insurance fraud direct-support
  420  organization.—
  421         (1) DEFINITIONS.—As used in this section, the term:
  422         (a) “Division” means the Division of Insurance Fraud of the
  423  Department of Financial Services.
  424         (b) “Motor vehicle insurance fraud” means any act defined
  425  as a “fraudulent insurance act” under s. 626.989, which relates
  426  to the coverage of motor vehicle insurance as described in part
  427  XI of chapter 627.
  428         (c) “Organization” means the direct-support organization
  429  established under this section.
  430         (2) ORGANIZATION ESTABLISHED.—The division may establish a
  431  direct-support organization, to be known as the “Automobile
  432  Insurance Fraud Strike Force,” whose sole purpose is to support
  433  the prosecution, investigation, and prevention of motor vehicle
  434  insurance fraud. The organization shall:
  435         (a) Be a not-for-profit corporation incorporated under
  436  chapter 617 and approved by the Department of State.
  437         (b) Be organized and operated to conduct programs and
  438  activities; raise funds; request and receive grants, gifts, and
  439  bequests of money; acquire, receive, hold, invest, and
  440  administer, in its own name, securities, funds, objects of
  441  value, or other property, real or personal; and make grants and
  442  expenditures to or for the direct or indirect benefit of the
  443  division, state attorneys’ offices, the statewide prosecutor,
  444  the Agency for Health Care Administration, and the Department of
  445  Health to the extent that such grants and expenditures are used
  446  exclusively to advance the prosecution, investigation, or
  447  prevention of motor vehicle insurance fraud. Grants and
  448  expenditures may include the cost of salaries or benefits of
  449  motor vehicle insurance fraud investigators, prosecutors, or
  450  support personnel if such grants and expenditures do not
  451  interfere with prosecutorial independence or otherwise create
  452  conflicts of interest which threaten the success of
  453  prosecutions.
  454         (c) Be determined by the division to operate in a manner
  455  that promotes the goals of laws relating to motor vehicle
  456  insurance fraud, that is in the best interest of the state, and
  457  that is in accordance with the adopted goals and mission of the
  458  division.
  459         (d) Use all of its grants and expenditures solely for the
  460  purpose of preventing and decreasing motor vehicle insurance
  461  fraud, and not for the purpose of lobbying as defined in s.
  462  11.045.
  463         (e) Be subject to an annual financial audit in accordance
  464  with s. 215.981.
  465         (3) CONTRACT.—The organization shall operate under written
  466  contract with the division. The contract must provide for:
  467         (a) Approval of the articles of incorporation and bylaws of
  468  the organization by the division.
  469         (b) Submission of an annual budget for approval of the
  470  division. The budget must require the organization to minimize
  471  costs to the division and its members at all times by using
  472  existing personnel and property and allowing for telephonic
  473  meetings if appropriate.
  474         (c) Certification by the division that the organization is
  475  complying with the terms of the contract and in a manner
  476  consistent with the goals and purposes of the department and in
  477  the best interest of the state. Such certification must be made
  478  annually and reported in the official minutes of a meeting of
  479  the organization.
  480         (d) Allocation of funds to address motor vehicle insurance
  481  fraud.
  482         (e) Reversion of moneys and property held in trust by the
  483  organization for motor vehicle insurance fraud prosecution,
  484  investigation, and prevention to the division if the
  485  organization is no longer approved to operate for the department
  486  or if the organization ceases to exist, or to the state if the
  487  division ceases to exist.
  488         (f) Specific criteria to be used by the organization’s
  489  board of directors to evaluate the effectiveness of funding used
  490  to combat motor vehicle insurance fraud.
  491         (g) The fiscal year of the organization, which begins July
  492  1 of each year and ends June 30 of the following year.
  493         (h) Disclosure of the material provisions of the contract,
  494  and distinguishing between the department and the organization
  495  to donors of gifts, contributions, or bequests, including
  496  providing such disclosure on all promotional and fundraising
  497  publications.
  498         (4) BOARD OF DIRECTORS.—
  499         (a) The board of directors of the organization shall
  500  consist of the following eleven members:
  501         1. The Chief Financial Officer, or designee, who shall
  502  serve as chair.
  503         2. Two state attorneys, one of whom shall be appointed by
  504  the Chief Financial Officer and one of whom shall be appointed
  505  by the Attorney General.
  506         3. Two representatives of motor vehicle insurers appointed
  507  by the Chief Financial Officer.
  508         4. Two representatives of local law enforcement agencies,
  509  one of whom shall be appointed by the Chief Financial Officer
  510  and one of whom shall be appointed by the Attorney General.
  511         5. Two representatives of the types of health care
  512  providers who regularly make claims for benefits under ss.
  513  627.730-627.7405, one of whom shall be appointed by the
  514  President of the Senate and one of whom shall be appointed by
  515  the Speaker of the House of Representatives. The appointees may
  516  not represent the same type of health care provider.
  517         6. A private attorney that has experience in representing
  518  claimants in actions for benefits under ss. 627.730-627.7405,
  519  who shall be appointed by the President of the Senate.
  520         7. A private attorney who has experience in representing
  521  insurers in actions for benefits under ss. 627.730-627.7405, who
  522  shall be appointed by the Speaker of the House of
  523  Representatives.
  524         (b) The officer who appointed a member of the board may
  525  remove that member for cause. The term of office of an appointed
  526  member expires at the same time as the term of the officer who
  527  appointed him or her or at such earlier time as the person
  528  ceases to be qualified.
  529         (5) USE OF PROPERTY.—The department may authorize, without
  530  charge, appropriate use of fixed property and facilities of the
  531  division by the organization, subject to this subsection.
  532         (a) The department may prescribe any condition with which
  533  the organization must comply in order to use the division’s
  534  property or facilities.
  535         (b) The department may not authorize the use of the
  536  division’s property or facilities if the organization does not
  537  provide equal membership and employment opportunities to all
  538  persons regardless of race, religion, sex, age, or national
  539  origin.
  540         (c) The department shall adopt rules prescribing the
  541  procedures by which the organization is governed and any
  542  conditions with which the organization must comply to use the
  543  division’s property or facilities.
  544         (6) CONTRIBUTIONS FROM INSURERS.—Contributions from an
  545  insurer to the organization shall be allowed as an appropriate
  546  business expense of the insurer for all regulatory purposes.
  547         (7) DEPOSITORY ACCOUNT.—Any moneys received by the
  548  organization may be held in a separate depository account in the
  549  name of the organization and subject to the contract with the
  550  division.
  551         (8) DIVISION’S RECEIPT OF PROCEEDS.—Proceeds received by
  552  the division from the organization shall be deposited into the
  553  Insurance Regulatory Trust Fund.
  554         Section 8. Subsections (1), (4), (5), (6), (8), (9), (10),
  555  and (11) of section 627.736, Florida Statutes, are amended, and
  556  subsection (17) is added to that section, to read:
  557         627.736 Required personal injury protection benefits;
  558  exclusions; priority; claims.—
  559         (1) REQUIRED BENEFITS.—An Every insurance policy complying
  560  with the security requirements of s. 627.733 must shall provide
  561  personal injury protection to the named insured, relatives
  562  residing in the same household, persons operating the insured
  563  motor vehicle, passengers in the such motor vehicle, and other
  564  persons struck by the such motor vehicle and suffering bodily
  565  injury while not an occupant of a self-propelled vehicle,
  566  subject to the provisions of subsection (2) and paragraph
  567  (4)(e), to a limit of $10,000 in medical and disability benefits
  568  and $5,000 in death benefits resulting from for loss sustained
  569  by any such person as a result of bodily injury, sickness,
  570  disease, or death arising out of the ownership, maintenance, or
  571  use of a motor vehicle as follows:
  572         (a) Medical benefits.—Eighty percent of all reasonable
  573  expenses for medically necessary medical, surgical, X-ray,
  574  dental, and rehabilitative services, including prosthetic
  575  devices, and medically necessary ambulance, hospital, and
  576  nursing services if the individual receives initial services and
  577  care pursuant to subparagraph 1. within 14 days after the motor
  578  vehicle accident. However, The medical benefits shall provide
  579  reimbursement only for: such
  580         1. Initial services and care that are lawfully provided,
  581  supervised, ordered, or prescribed by a physician licensed under
  582  chapter 458 or chapter 459, a dentist licensed under chapter
  583  466, or a chiropractic physician licensed under chapter 460 or
  584  that are provided in a hospital or in a facility that owns, or
  585  is wholly owned by, a hospital. Initial services and care may
  586  also be provided by a person or entity licensed under part III
  587  of chapter 401 which provides emergency transportation and
  588  treatment.
  589         2. Followup services and care consistent with the
  590  underlying medical diagnosis rendered pursuant to subparagraph
  591  1. which may be provided, supervised, ordered, or prescribed
  592  only by a physician licensed under chapter 458 or chapter 459, a
  593  chiropractic physician licensed under chapter 460, a dentist
  594  licensed under chapter 466, or, to the extent permitted by
  595  applicable law and under the supervision of such physician,
  596  osteopathic physician, chiropractic physician, or dentist, by a
  597  physician assistant licensed under chapter 458 or chapter 459 or
  598  an advanced registered nurse practitioner licensed under chapter
  599  464. Followup services and care may also be provided by any of
  600  the following persons or entities:
  601         a.1. A hospital or ambulatory surgical center licensed
  602  under chapter 395.
  603         2. A person or entity licensed under ss. 401.2101-401.45
  604  that provides emergency transportation and treatment.
  605         b.3. An entity wholly owned by one or more physicians
  606  licensed under chapter 458 or chapter 459, chiropractic
  607  physicians licensed under chapter 460, or dentists licensed
  608  under chapter 466 or by such practitioner or practitioners and
  609  the spouse, parent, child, or sibling of such that practitioner
  610  or those practitioners.
  611         c.4. An entity that owns or is wholly owned, directly or
  612  indirectly, by a hospital or hospitals.
  613         d. A physical therapist licensed under chapter 486.
  614         e.5. A health care clinic licensed under part X of chapter
  615  400 which ss. 400.990-400.995 that is:
  616         a. accredited by the Joint Commission on Accreditation of
  617  Healthcare Organizations, the American Osteopathic Association,
  618  the Commission on Accreditation of Rehabilitation Facilities, or
  619  the Accreditation Association for Ambulatory Health Care, Inc.;
  620  or
  621         b. A health care clinic that:
  622         (I) Has a medical director licensed under chapter 458,
  623  chapter 459, or chapter 460;
  624         (II) Has been continuously licensed for more than 3 years
  625  or is a publicly traded corporation that issues securities
  626  traded on an exchange registered with the United States
  627  Securities and Exchange Commission as a national securities
  628  exchange; and
  629         (III) Provides at least four of the following medical
  630  specialties:
  631         (A) General medicine.
  632         (B) Radiography.
  633         (C) Orthopedic medicine.
  634         (D) Physical medicine.
  635         (E) Physical therapy.
  636         (F) Physical rehabilitation.
  637         (G) Prescribing or dispensing outpatient prescription
  638  medication.
  639         (H) Laboratory services.
  640         3. Reimbursement for services and care provided by each
  641  type of licensed medical provider authorized to render such
  642  services and care is limited to the lesser of 24 visits or to
  643  services or care rendered within 12 weeks after the date of the
  644  initial treatment, whichever comes first, unless the insurer
  645  authorizes additional services or care.
  646         4. Medical benefits do not include massage as defined in s.
  647  480.033 or acupuncture as defined in s. 457.102, regardless of
  648  the person, entity, or licensee providing massage or
  649  acupuncture, and a licensed massage therapist or licensed
  650  acupuncturist may not be reimbursed for medical benefits under
  651  this section.
  652         5. The Financial Services Commission shall adopt by rule
  653  the form that must be used by an insurer and a health care
  654  provider specified in sub-subparagraph 2.b., sub-subparagraph
  655  2.c., or sub-subparagraph 2.e. subparagraph 3., subparagraph 4.,
  656  or subparagraph 5. to document that the health care provider
  657  meets the criteria of this paragraph, which rule must include a
  658  requirement for a sworn statement or affidavit.
  659         (b) Disability benefits.—Sixty percent of any loss of gross
  660  income and loss of earning capacity per individual from
  661  inability to work proximately caused by the injury sustained by
  662  the injured person, plus all expenses reasonably incurred in
  663  obtaining from others ordinary and necessary services in lieu of
  664  those that, but for the injury, the injured person would have
  665  performed without income for the benefit of his or her
  666  household. All disability benefits payable under this provision
  667  must shall be paid at least not less than every 2 weeks.
  668         (c) Death benefits.—Death benefits equal to the lesser of
  669  $5,000 or the remainder of unused personal injury protection
  670  benefits per individual. Death benefits are in addition to the
  671  medical and disability benefits provided under the insurance
  672  policy. The insurer may pay death such benefits to the executor
  673  or administrator of the deceased, to any of the deceased’s
  674  relatives by blood, or legal adoption, or connection by
  675  marriage, or to any person appearing to the insurer to be
  676  equitably entitled to such benefits thereto.
  677  
  678  Only insurers writing motor vehicle liability insurance in this
  679  state may provide the required benefits of this section, and no
  680  such insurer may not shall require the purchase of any other
  681  motor vehicle coverage other than the purchase of property
  682  damage liability coverage as required by s. 627.7275 as a
  683  condition for providing such required benefits. Insurers may not
  684  require that property damage liability insurance in an amount
  685  greater than $10,000 be purchased in conjunction with personal
  686  injury protection. Such insurers shall make benefits and
  687  required property damage liability insurance coverage available
  688  through normal marketing channels. An Any insurer writing motor
  689  vehicle liability insurance in this state who fails to comply
  690  with such availability requirement as a general business
  691  practice violates shall be deemed to have violated part IX of
  692  chapter 626, and such violation constitutes shall constitute an
  693  unfair method of competition or an unfair or deceptive act or
  694  practice involving the business of insurance. An; and any such
  695  insurer committing such violation is shall be subject to the
  696  penalties provided under that afforded in such part, as well as
  697  those provided which may be afforded elsewhere in the insurance
  698  code.
  699         (4) PAYMENT OF BENEFITS; WHEN DUE.—Benefits due from an
  700  insurer under ss. 627.730-627.7405 are shall be primary, except
  701  that benefits received under any workers’ compensation law must
  702  shall be credited against the benefits provided by subsection
  703  (1) and are shall be due and payable as loss accrues, upon
  704  receipt of reasonable proof of such loss and the amount of
  705  expenses and loss incurred which are covered by the policy
  706  issued under ss. 627.730-627.7405. If When the Agency for Health
  707  Care Administration provides, pays, or becomes liable for
  708  medical assistance under the Medicaid program related to injury,
  709  sickness, disease, or death arising out of the ownership,
  710  maintenance, or use of a motor vehicle, the benefits under ss.
  711  627.730-627.7405 are shall be subject to the provisions of the
  712  Medicaid program. However, within 30 days after receiving notice
  713  that the Medicaid program paid such benefits, the insurer shall
  714  repay the full amount of the benefits to the Medicaid program.
  715         (a) An insurer may require written notice to be given as
  716  soon as practicable after an accident involving a motor vehicle
  717  with respect to which the policy affords the security required
  718  by ss. 627.730-627.7405.
  719         (b) Personal injury protection insurance benefits paid
  720  pursuant to this section are shall be overdue if not paid within
  721  30 days after the insurer is furnished written notice of the
  722  fact of a covered loss and of the amount of same. However:
  723         1. If such written notice of the entire claim is not
  724  furnished to the insurer as to the entire claim, any partial
  725  amount supported by written notice is overdue if not paid within
  726  30 days after such written notice is furnished to the insurer.
  727  Any part or all of the remainder of the claim that is
  728  subsequently supported by written notice is overdue if not paid
  729  within 30 days after such written notice is furnished to the
  730  insurer.
  731         2. If When an insurer pays only a portion of a claim or
  732  rejects a claim, the insurer shall provide at the time of the
  733  partial payment or rejection an itemized specification of each
  734  item that the insurer had reduced, omitted, or declined to pay
  735  and any information that the insurer desires the claimant to
  736  consider related to the medical necessity of the denied
  737  treatment or to explain the reasonableness of the reduced charge
  738  if, provided that this does shall not limit the introduction of
  739  evidence at trial.; and The insurer must also shall include the
  740  name and address of the person to whom the claimant should
  741  respond and a claim number to be referenced in future
  742  correspondence.
  743         3. If an insurer pays only a portion of a claim or rejects
  744  a claim due to an alleged error in the claim, the insurer, at
  745  the time of the partial payment or rejection, shall provide an
  746  itemized specification or explanation of benefits due to the
  747  specified error. Upon receiving the specification or
  748  explanation, the person making the claim, at the person’s option
  749  and without waiving any other legal remedy for payment, has 15
  750  days to submit a revised claim, which shall be considered a
  751  timely submission of written notice of a claim.
  752         4.However, Notwithstanding the fact that written notice
  753  has been furnished to the insurer, any payment is shall not be
  754  deemed overdue if when the insurer has reasonable proof to
  755  establish that the insurer is not responsible for the payment.
  756         5. For the purpose of calculating the extent to which any
  757  benefits are overdue, payment shall be treated as being made on
  758  the date a draft or other valid instrument that which is
  759  equivalent to payment was placed in the United States mail in a
  760  properly addressed, postpaid envelope or, if not so posted, on
  761  the date of delivery.
  762         6. This paragraph does not preclude or limit the ability of
  763  the insurer to assert that the claim was unrelated, was not
  764  medically necessary, or was unreasonable or that the amount of
  765  the charge was in excess of that permitted under, or in
  766  violation of, subsection (5). Such assertion by the insurer may
  767  be made at any time, including after payment of the claim or
  768  after the 30-day time period for payment set forth in this
  769  paragraph.
  770         (c) Upon receiving notice of an accident that is
  771  potentially covered by personal injury protection benefits, the
  772  insurer must reserve $5,000 of personal injury protection
  773  benefits for payment to physicians licensed under chapter 458 or
  774  chapter 459 or dentists licensed under chapter 466 who provide
  775  emergency services and care, as defined in s. 395.002(9), or who
  776  provide hospital inpatient care. The amount required to be held
  777  in reserve may be used only to pay claims from such physicians
  778  or dentists until 30 days after the date the insurer receives
  779  notice of the accident. After the 30-day period, any amount of
  780  the reserve for which the insurer has not received notice of
  781  such claims a claim from a physician or dentist who provided
  782  emergency services and care or who provided hospital inpatient
  783  care may then be used by the insurer to pay other claims. The
  784  time periods specified in paragraph (b) for required payment of
  785  personal injury protection benefits are shall be tolled for the
  786  period of time that an insurer is required by this paragraph to
  787  hold payment of a claim that is not from such a physician or
  788  dentist who provided emergency services and care or who provided
  789  hospital inpatient care to the extent that the personal injury
  790  protection benefits not held in reserve are insufficient to pay
  791  the claim. This paragraph does not require an insurer to
  792  establish a claim reserve for insurance accounting purposes.
  793         (d) All overdue payments shall bear simple interest at the
  794  rate established under s. 55.03 or the rate established in the
  795  insurance contract, whichever is greater, for the year in which
  796  the payment became overdue, calculated from the date the insurer
  797  was furnished with written notice of the amount of covered loss.
  798  Interest is shall be due at the time payment of the overdue
  799  claim is made.
  800         (e) The insurer of the owner of a motor vehicle shall pay
  801  personal injury protection benefits for:
  802         1. Accidental bodily injury sustained in this state by the
  803  owner while occupying a motor vehicle, or while not an occupant
  804  of a self-propelled vehicle if the injury is caused by physical
  805  contact with a motor vehicle.
  806         2. Accidental bodily injury sustained outside this state,
  807  but within the United States of America or its territories or
  808  possessions or Canada, by the owner while occupying the owner’s
  809  motor vehicle.
  810         3. Accidental bodily injury sustained by a relative of the
  811  owner residing in the same household, under the circumstances
  812  described in subparagraph 1. or subparagraph 2., if provided the
  813  relative at the time of the accident is domiciled in the owner’s
  814  household and is not himself or herself the owner of a motor
  815  vehicle with respect to which security is required under ss.
  816  627.730-627.7405.
  817         4. Accidental bodily injury sustained in this state by any
  818  other person while occupying the owner’s motor vehicle or, if a
  819  resident of this state, while not an occupant of a self
  820  propelled vehicle, if the injury is caused by physical contact
  821  with such motor vehicle, if provided the injured person is not
  822  himself or herself:
  823         a. The owner of a motor vehicle with respect to which
  824  security is required under ss. 627.730-627.7405; or
  825         b. Entitled to personal injury benefits from the insurer of
  826  the owner or owners of such a motor vehicle.
  827         (f) If two or more insurers are liable for paying to pay
  828  personal injury protection benefits for the same injury to any
  829  one person, the maximum payable is shall be as specified in
  830  subsection (1), and the any insurer paying the benefits is shall
  831  be entitled to recover from each of the other insurers an
  832  equitable pro rata share of the benefits paid and expenses
  833  incurred in processing the claim.
  834         (g) It is a violation of the insurance code for an insurer
  835  to fail to timely provide benefits as required by this section
  836  with such frequency as to constitute a general business
  837  practice.
  838         (h) Benefits are shall not be due or payable to or on the
  839  behalf of an insured person if that person has committed, by a
  840  material act or omission, any insurance fraud relating to
  841  personal injury protection coverage under his or her policy, if
  842  the fraud is admitted to in a sworn statement by the insured or
  843  if it is established in a court of competent jurisdiction. Any
  844  insurance fraud voids shall void all coverage arising from the
  845  claim related to such fraud under the personal injury protection
  846  coverage of the insured person who committed the fraud,
  847  irrespective of whether a portion of the insured person’s claim
  848  may be legitimate, and any benefits paid before prior to the
  849  discovery of the insured person’s insurance fraud is shall be
  850  recoverable by the insurer in its entirety from the person who
  851  committed insurance fraud in their entirety. The prevailing
  852  party is entitled to its costs and attorney attorney’s fees in
  853  any action in which it prevails in an insurer’s action to
  854  enforce its right of recovery under this paragraph.
  855         (i) If an insurer has a reasonable belief that a fraudulent
  856  insurance act, as defined in s. 626.989 or s. 817.234, has been
  857  committed, the insurer shall notify the claimant in writing
  858  within 30 days after submission of the claim that the claim is
  859  being investigated for suspected fraud and execute and provide
  860  to the insured and the office an affidavit under oath stating
  861  that there is a factual basis that there is a probability of
  862  fraud. The insurer has an additional 60 days, beginning at the
  863  end of the initial 30-day period, to conduct its fraud
  864  investigation. Notwithstanding subsection (10), no later than
  865  the 90th day after the submission of the claim, the insurer must
  866  deny the claim or pay the claim along with simple interest as
  867  provided in paragraph (d). All claims denied for suspected
  868  fraudulent insurance acts shall be reported to the Division of
  869  Insurance Fraud.
  870         (j) An insurer shall create and maintain for each insured a
  871  log of personal injury protection benefits paid by the insurer
  872  on behalf of the insured. If litigation is commenced, the
  873  insurer shall provide to the insured, or an assignee of the
  874  insured, a copy of the log within 30 days after receiving a
  875  request for the log from the insured or the assignee.
  876         (5) CHARGES FOR TREATMENT OF INJURED PERSONS.—
  877         (a)1.A Any physician, hospital, clinic, or other person or
  878  institution lawfully rendering treatment to an injured person
  879  for a bodily injury covered by personal injury protection
  880  insurance may charge the insurer and injured party only a
  881  reasonable amount pursuant to this section for the services and
  882  supplies rendered, and the insurer providing such coverage may
  883  pay for such charges directly to such person or institution
  884  lawfully rendering such treatment, if the insured receiving such
  885  treatment or his or her guardian has countersigned the properly
  886  completed invoice, bill, or claim form approved by the office
  887  upon which such charges are to be paid for as having actually
  888  been rendered, to the best knowledge of the insured or his or
  889  her guardian. In no event, However, may such a charge may not
  890  exceed be in excess of the amount the person or institution
  891  customarily charges for like services or supplies. In
  892  determining With respect to a determination of whether a charge
  893  for a particular service, treatment, or otherwise is reasonable,
  894  consideration may be given to evidence of usual and customary
  895  charges and payments accepted by the provider involved in the
  896  dispute, and reimbursement levels in the community and various
  897  federal and state medical fee schedules applicable to motor
  898  vehicle automobile and other insurance coverages, and other
  899  information relevant to the reasonableness of the reimbursement
  900  for the service, treatment, or supply.
  901         1.2. The insurer may limit reimbursement to 80 percent of
  902  the following schedule of maximum charges:
  903         a. For emergency transport and treatment by providers
  904  licensed under chapter 401, 200 percent of Medicare.
  905         b. For emergency services and care provided by a hospital
  906  licensed under chapter 395, 75 percent of the hospital’s usual
  907  and customary charges.
  908         c. For emergency services and care as defined by s.
  909  395.002(9) provided in a facility licensed under chapter 395
  910  rendered by a physician or dentist, and related hospital
  911  inpatient services rendered by a physician or dentist, the usual
  912  and customary charges in the community.
  913         d. For hospital inpatient services, other than emergency
  914  services and care, 200 percent of the Medicare Part A
  915  prospective payment applicable to the specific hospital
  916  providing the inpatient services.
  917         e. For hospital outpatient services, other than emergency
  918  services and care, 200 percent of the Medicare Part A Ambulatory
  919  Payment Classification for the specific hospital providing the
  920  outpatient services.
  921         f. For all other medical services, supplies, and care, 200
  922  percent of the allowable amount under:
  923         (I) The participating physicians fee schedule of Medicare
  924  Part B, except as provided in sub-sub-subparagraphs (II) and
  925  (III).
  926         (II) Medicare Part B, in the case of services, supplies,
  927  and care provided by ambulatory surgical centers and clinical
  928  laboratories.
  929         (III) The Durable Medical Equipment Prosthetics/Orthotics
  930  and Supplies fee schedule of Medicare Part B, in the case of
  931  durable medical equipment.
  932  
  933  However, if such services, supplies, or care is not reimbursable
  934  under Medicare Part B, as provided in this sub-subparagraph, the
  935  insurer may limit reimbursement to 80 percent of the maximum
  936  reimbursable allowance under workers’ compensation, as
  937  determined under s. 440.13 and rules adopted thereunder which
  938  are in effect at the time such services, supplies, or care is
  939  provided. Services, supplies, or care that is not reimbursable
  940  under Medicare or workers’ compensation is not required to be
  941  reimbursed by the insurer.
  942         2.3. For purposes of subparagraph 1. 2., the applicable fee
  943  schedule or payment limitation under Medicare is the fee
  944  schedule or payment limitation in effect on January 1 of the
  945  year in which at the time the services, supplies, or care is was
  946  rendered and for the area in which such services, supplies, or
  947  care is were rendered, and the applicable fee schedule or
  948  payment limitation applies throughout the remainder of that
  949  year, notwithstanding any subsequent change made to the fee
  950  schedule or payment limitation, except that it may not be less
  951  than the allowable amount under the applicable participating
  952  physicians schedule of Medicare Part B for 2007 for medical
  953  services, supplies, and care subject to Medicare Part B.
  954         3.4. Subparagraph 1. 2. does not allow the insurer to apply
  955  any limitation on the number of treatments or other utilization
  956  limits that apply under Medicare or workers’ compensation. An
  957  insurer that applies the allowable payment limitations of
  958  subparagraph 1. 2. must reimburse a provider who lawfully
  959  provided care or treatment under the scope of his or her
  960  license, regardless of whether such provider is would be
  961  entitled to reimbursement under Medicare due to restrictions or
  962  limitations on the types or discipline of health care providers
  963  who may be reimbursed for particular procedures or procedure
  964  codes.
  965         4.5. If an insurer limits payment as authorized by
  966  subparagraph 1. 2., the person providing such services,
  967  supplies, or care may not bill or attempt to collect from the
  968  insured any amount in excess of such limits, except for amounts
  969  that are not covered by the insured’s personal injury protection
  970  coverage due to the coinsurance amount or maximum policy limits.
  971         5. Effective July 1, 2012, an insurer may limit payment as
  972  authorized by this paragraph only if the insurance policy
  973  includes a notice at the time of issuance or renewal that the
  974  insurer may limit payment pursuant to the schedule of charges
  975  specified in this paragraph. A policy form approved by the
  976  office satisfies this requirement. If a provider submits a
  977  charge for an amount less than the amount allowed under
  978  subparagraph 1., the insurer may pay the amount of the charge
  979  submitted.
  980         (b)1. An insurer or insured is not required to pay a claim
  981  or charges:
  982         a. Made by a broker or by a person making a claim on behalf
  983  of a broker;
  984         b. For any service or treatment that was not lawful at the
  985  time rendered;
  986         c. To any person who knowingly submits a false or
  987  misleading statement relating to the claim or charges;
  988         d. With respect to a bill or statement that does not
  989  substantially meet the applicable requirements of paragraph (d);
  990         e. For any treatment or service that is upcoded, or that is
  991  unbundled when such treatment or services should be bundled, in
  992  accordance with paragraph (d). To facilitate prompt payment of
  993  lawful services, an insurer may change codes that it determines
  994  to have been improperly or incorrectly upcoded or unbundled, and
  995  may make payment based on the changed codes, without affecting
  996  the right of the provider to dispute the change by the insurer,
  997  if, provided that before doing so, the insurer contacts must
  998  contact the health care provider and discusses discuss the
  999  reasons for the insurer’s change and the health care provider’s
 1000  reason for the coding, or makes make a reasonable good faith
 1001  effort to do so, as documented in the insurer’s file; and
 1002         f. For medical services or treatment billed by a physician
 1003  and not provided in a hospital unless such services are rendered
 1004  by the physician or are incident to his or her professional
 1005  services and are included on the physician’s bill, including
 1006  documentation verifying that the physician is responsible for
 1007  the medical services that were rendered and billed.
 1008         2. The Department of Health, in consultation with the
 1009  appropriate professional licensing boards, shall adopt, by rule,
 1010  a list of diagnostic tests deemed not to be medically necessary
 1011  for use in the treatment of persons sustaining bodily injury
 1012  covered by personal injury protection benefits under this
 1013  section. The initial list shall be adopted by January 1, 2004,
 1014  and shall be revised from time to time as determined by the
 1015  Department of Health, in consultation with the respective
 1016  professional licensing boards. Inclusion of a test on the list
 1017  of invalid diagnostic tests shall be based on lack of
 1018  demonstrated medical value and a level of general acceptance by
 1019  the relevant provider community and may shall not be dependent
 1020  for results entirely upon subjective patient response.
 1021  Notwithstanding its inclusion on a fee schedule in this
 1022  subsection, an insurer or insured is not required to pay any
 1023  charges or reimburse claims for an any invalid diagnostic test
 1024  as determined by the Department of Health.
 1025         (c)1. With respect to any treatment or service, other than
 1026  medical services billed by a hospital or other provider for
 1027  emergency services and care as defined in s. 395.002 or
 1028  inpatient services rendered at a hospital-owned facility, the
 1029  statement of charges must be furnished to the insurer by the
 1030  provider and may not include, and the insurer is not required to
 1031  pay, charges for treatment or services rendered more than 35
 1032  days before the postmark date or electronic transmission date of
 1033  the statement, except for past due amounts previously billed on
 1034  a timely basis under this paragraph, and except that, if the
 1035  provider submits to the insurer a notice of initiation of
 1036  treatment within 21 days after its first examination or
 1037  treatment of the claimant, the statement may include charges for
 1038  treatment or services rendered up to, but not more than, 75 days
 1039  before the postmark date of the statement. The injured party is
 1040  not liable for, and the provider may shall not bill the injured
 1041  party for, charges that are unpaid because of the provider’s
 1042  failure to comply with this paragraph. Any agreement requiring
 1043  the injured person or insured to pay for such charges is
 1044  unenforceable.
 1045         1.2. If, however, the insured fails to furnish the provider
 1046  with the correct name and address of the insured’s personal
 1047  injury protection insurer, the provider has 35 days from the
 1048  date the provider obtains the correct information to furnish the
 1049  insurer with a statement of the charges. The insurer is not
 1050  required to pay for such charges unless the provider includes
 1051  with the statement documentary evidence that was provided by the
 1052  insured during the 35-day period demonstrating that the provider
 1053  reasonably relied on erroneous information from the insured and
 1054  either:
 1055         a. A denial letter from the incorrect insurer; or
 1056         b. Proof of mailing, which may include an affidavit under
 1057  penalty of perjury, reflecting timely mailing to the incorrect
 1058  address or insurer.
 1059         2.3. For emergency services and care as defined in s.
 1060  395.002 rendered in a hospital emergency department or for
 1061  transport and treatment rendered by an ambulance provider
 1062  licensed pursuant to part III of chapter 401, the provider is
 1063  not required to furnish the statement of charges within the time
 1064  periods established by this paragraph,; and the insurer is shall
 1065  not be considered to have been furnished with notice of the
 1066  amount of covered loss for purposes of paragraph (4)(b) until it
 1067  receives a statement complying with paragraph (d), or copy
 1068  thereof, which specifically identifies the place of service to
 1069  be a hospital emergency department or an ambulance in accordance
 1070  with billing standards recognized by the federal Centers for
 1071  Medicare and Medicaid Services Health Care Finance
 1072  Administration.
 1073         3.4. Each notice of the insured’s rights under s. 627.7401
 1074  must include the following statement in at least 12-point type
 1075  in type no smaller than 12 points:
 1076  
 1077         BILLING REQUIREMENTS.—Florida law provides
 1078         Statutes provide that with respect to any treatment or
 1079         services, other than certain hospital and emergency
 1080         services, the statement of charges furnished to the
 1081         insurer by the provider may not include, and the
 1082         insurer and the injured party are not required to pay,
 1083         charges for treatment or services rendered more than
 1084         35 days before the postmark date of the statement,
 1085         except for past due amounts previously billed on a
 1086         timely basis, and except that, if the provider submits
 1087         to the insurer a notice of initiation of treatment
 1088         within 21 days after its first examination or
 1089         treatment of the claimant, the statement may include
 1090         charges for treatment or services rendered up to, but
 1091         not more than, 75 days before the postmark date of the
 1092         statement.
 1093  
 1094         (d) All statements and bills for medical services rendered
 1095  by a any physician, hospital, clinic, or other person or
 1096  institution shall be submitted to the insurer on a properly
 1097  completed Centers for Medicare and Medicaid Services (CMS) 1500
 1098  form, UB 92 forms, or any other standard form approved by the
 1099  office or adopted by the commission for purposes of this
 1100  paragraph. All billings for such services rendered by providers
 1101  must shall, to the extent applicable, follow the Physicians’
 1102  Current Procedural Terminology (CPT) or Healthcare Correct
 1103  Procedural Coding System (HCPCS), or ICD-9 in effect for the
 1104  year in which services are rendered and comply with the Centers
 1105  for Medicare and Medicaid Services (CMS) 1500 form instructions,
 1106  and the American Medical Association Current Procedural
 1107  Terminology (CPT) Editorial Panel, and the Healthcare Correct
 1108  Procedural Coding System (HCPCS). All providers, other than
 1109  hospitals, must shall include on the applicable claim form the
 1110  professional license number of the provider in the line or space
 1111  provided for “Signature of Physician or Supplier, Including
 1112  Degrees or Credentials.” In determining compliance with
 1113  applicable CPT and HCPCS coding, guidance shall be provided by
 1114  the Physicians’ Current Procedural Terminology (CPT) or the
 1115  Healthcare Correct Procedural Coding System (HCPCS) in effect
 1116  for the year in which services were rendered, the Office of the
 1117  Inspector General (OIG), Physicians Compliance Guidelines, and
 1118  other authoritative treatises designated by rule by the Agency
 1119  for Health Care Administration. A No statement of medical
 1120  services may not include charges for medical services of a
 1121  person or entity that performed such services without possessing
 1122  the valid licenses required to perform such services. For
 1123  purposes of paragraph (4)(b), an insurer is shall not be
 1124  considered to have been furnished with notice of the amount of
 1125  covered loss or medical bills due unless the statements or bills
 1126  comply with this paragraph, and unless the statements or bills
 1127  are properly completed in their entirety as to all material
 1128  provisions, with all relevant information being provided
 1129  therein.
 1130         (e)1. At the initial treatment or service provided, each
 1131  physician, other licensed professional, clinic, or other medical
 1132  institution providing medical services upon which a claim for
 1133  personal injury protection benefits is based shall require an
 1134  insured person, or his or her guardian, to execute a disclosure
 1135  and acknowledgment form, which reflects at a minimum that:
 1136         a. The insured, or his or her guardian, must countersign
 1137  the form attesting to the fact that the services set forth
 1138  therein were actually rendered;
 1139         b. The insured, or his or her guardian, has both the right
 1140  and affirmative duty to confirm that the services were actually
 1141  rendered;
 1142         c. The insured, or his or her guardian, was not solicited
 1143  by any person to seek any services from the medical provider;
 1144         d. The physician, other licensed professional, clinic, or
 1145  other medical institution rendering services for which payment
 1146  is being claimed explained the services to the insured or his or
 1147  her guardian; and
 1148         e. If the insured notifies the insurer in writing of a
 1149  billing error, the insured may be entitled to a certain
 1150  percentage of a reduction in the amounts paid by the insured’s
 1151  motor vehicle insurer.
 1152         2. The physician, other licensed professional, clinic, or
 1153  other medical institution rendering services for which payment
 1154  is being claimed has the affirmative duty to explain the
 1155  services rendered to the insured, or his or her guardian, so
 1156  that the insured, or his or her guardian, countersigns the form
 1157  with informed consent.
 1158         3. Countersignature by the insured, or his or her guardian,
 1159  is not required for the reading of diagnostic tests or other
 1160  services that are of such a nature that they are not required to
 1161  be performed in the presence of the insured.
 1162         4. The licensed medical professional rendering treatment
 1163  for which payment is being claimed must sign, by his or her own
 1164  hand, the form complying with this paragraph.
 1165         5. The original completed disclosure and acknowledgment
 1166  form shall be furnished to the insurer pursuant to paragraph
 1167  (4)(b) and may not be electronically furnished.
 1168         6. The This disclosure and acknowledgment form is not
 1169  required for services billed by a provider for emergency
 1170  services as defined in s. 395.002, for emergency services and
 1171  care as defined in s. 395.002 rendered in a hospital emergency
 1172  department, or for transport and treatment rendered by an
 1173  ambulance provider licensed pursuant to part III of chapter 401.
 1174         7. The Financial Services Commission shall adopt, by rule,
 1175  a standard disclosure and acknowledgment form to that shall be
 1176  used to fulfill the requirements of this paragraph, effective 90
 1177  days after such form is adopted and becomes final. The
 1178  commission shall adopt a proposed rule by October 1, 2003. Until
 1179  the rule is final, the provider may use a form of its own which
 1180  otherwise complies with the requirements of this paragraph.
 1181         8. As used in this paragraph, the term “countersign” or
 1182  “countersignature” “countersigned” means a second or verifying
 1183  signature, as on a previously signed document, and is not
 1184  satisfied by the statement “signature on file” or any similar
 1185  statement.
 1186         9. The requirements of this paragraph apply only with
 1187  respect to the initial treatment or service of the insured by a
 1188  provider. For subsequent treatments or service, the provider
 1189  must maintain a patient log signed by the patient, in
 1190  chronological order by date of service, which that is consistent
 1191  with the services being rendered to the patient as claimed. The
 1192  requirement to maintain requirements of this subparagraph for
 1193  maintaining a patient log signed by the patient may be met by a
 1194  hospital that maintains medical records as required by s.
 1195  395.3025 and applicable rules and makes such records available
 1196  to the insurer upon request.
 1197         (f) Upon written notification by any person, an insurer
 1198  shall investigate any claim of improper billing by a physician
 1199  or other medical provider. The insurer shall determine if the
 1200  insured was properly billed for only those services and
 1201  treatments that the insured actually received. If the insurer
 1202  determines that the insured has been improperly billed, the
 1203  insurer shall notify the insured, the person making the written
 1204  notification, and the provider of its findings and shall reduce
 1205  the amount of payment to the provider by the amount determined
 1206  to be improperly billed. If a reduction is made due to a such
 1207  written notification by any person, the insurer shall pay to the
 1208  person 20 percent of the amount of the reduction, up to $500. If
 1209  the provider is arrested due to the improper billing, then the
 1210  insurer shall pay to the person 40 percent of the amount of the
 1211  reduction, up to $500.
 1212         (g) An insurer may not systematically downcode with the
 1213  intent to deny reimbursement otherwise due. Such action
 1214  constitutes a material misrepresentation under s.
 1215  626.9541(1)(i)2.
 1216         (h) As provided in s. 400.9905, an entity excluded from the
 1217  definition of a clinic shall be deemed a clinic and must be
 1218  licensed under part X of chapter 400 in order to receive
 1219  reimbursement under ss. 627.730-627.7405. However, this
 1220  licensing requirement does not apply to:
 1221         1. An entity wholly owned by a physician licensed under
 1222  chapter 458 or chapter 459, or by the physician and the spouse,
 1223  parent, child, or sibling of the physician;
 1224         2. An entity wholly owned by a dentist licensed under
 1225  chapter 466, or by the dentist and the spouse, parent, child, or
 1226  sibling of the dentist;
 1227         3. An entity wholly owned by a chiropractic physician
 1228  licensed under chapter 460, or by the chiropractic physician and
 1229  the spouse, parent, child, or sibling of the chiropractic
 1230  physician;
 1231         4. A hospital or ambulatory surgical center licensed under
 1232  chapter 395;
 1233         5. An entity that wholly owns or is wholly owned, directly
 1234  or indirectly, by a hospital or hospitals licensed under chapter
 1235  395; or
 1236         6. An entity that is a clinical facility affiliated with an
 1237  accredited medical school at which training is provided for
 1238  medical students, residents, or fellows.
 1239         (6) DISCOVERY OF FACTS ABOUT AN INJURED PERSON; DISPUTES.—
 1240         (a) Every employer shall, If a request is made by an
 1241  insurer providing personal injury protection benefits under ss.
 1242  627.730-627.7405 against whom a claim has been made, an employer
 1243  must furnish forthwith, in a form approved by the office, a
 1244  sworn statement of the earnings, since the time of the bodily
 1245  injury and for a reasonable period before the injury, of the
 1246  person upon whose injury the claim is based.
 1247         (b) Every physician, hospital, clinic, or other medical
 1248  institution providing, before or after bodily injury upon which
 1249  a claim for personal injury protection insurance benefits is
 1250  based, any products, services, or accommodations in relation to
 1251  that or any other injury, or in relation to a condition claimed
 1252  to be connected with that or any other injury, shall, if
 1253  requested to do so by the insurer against whom the claim has
 1254  been made, furnish forthwith a written report of the history,
 1255  condition, treatment, dates, and costs of such treatment of the
 1256  injured person and why the items identified by the insurer were
 1257  reasonable in amount and medically necessary, together with a
 1258  sworn statement that the treatment or services rendered were
 1259  reasonable and necessary with respect to the bodily injury
 1260  sustained and identifying which portion of the expenses for such
 1261  treatment or services was incurred as a result of such bodily
 1262  injury, and produce forthwith, and allow permit the inspection
 1263  and copying of, his or her or its records regarding such
 1264  history, condition, treatment, dates, and costs of treatment if;
 1265  provided that this does shall not limit the introduction of
 1266  evidence at trial. Such sworn statement must shall read as
 1267  follows: “Under penalty of perjury, I declare that I have read
 1268  the foregoing, and the facts alleged are true, to the best of my
 1269  knowledge and belief.” A No cause of action for violation of the
 1270  physician-patient privilege or invasion of the right of privacy
 1271  may not be brought shall be permitted against any physician,
 1272  hospital, clinic, or other medical institution complying with
 1273  the provisions of this section. The person requesting such
 1274  records and such sworn statement shall pay all reasonable costs
 1275  connected therewith. If an insurer makes a written request for
 1276  documentation or information under this paragraph within 30 days
 1277  after having received notice of the amount of a covered loss
 1278  under paragraph (4)(a), the amount or the partial amount that
 1279  which is the subject of the insurer’s inquiry is shall become
 1280  overdue if the insurer does not pay in accordance with paragraph
 1281  (4)(b) or within 10 days after the insurer’s receipt of the
 1282  requested documentation or information, whichever occurs later.
 1283  As used in For purposes of this paragraph, the term “receipt”
 1284  includes, but is not limited to, inspection and copying pursuant
 1285  to this paragraph. An Any insurer that requests documentation or
 1286  information pertaining to reasonableness of charges or medical
 1287  necessity under this paragraph without a reasonable basis for
 1288  such requests as a general business practice is engaging in an
 1289  unfair trade practice under the insurance code.
 1290         (c) In the event of a any dispute regarding an insurer’s
 1291  right to discovery of facts under this section, the insurer may
 1292  petition a court of competent jurisdiction to enter an order
 1293  permitting such discovery. The order may be made only on motion
 1294  for good cause shown and upon notice to all persons having an
 1295  interest, and must it shall specify the time, place, manner,
 1296  conditions, and scope of the discovery. Such court may, In order
 1297  to protect against annoyance, embarrassment, or oppression, as
 1298  justice requires, the court may enter an order refusing
 1299  discovery or specifying conditions of discovery and may order
 1300  payments of costs and expenses of the proceeding, including
 1301  reasonable fees for the appearance of attorneys at the
 1302  proceedings, as justice requires.
 1303         (d) The injured person shall be furnished, upon request, a
 1304  copy of all information obtained by the insurer under the
 1305  provisions of this section, and shall pay a reasonable charge,
 1306  if required by the insurer.
 1307         (e) Notice to an insurer of the existence of a claim may
 1308  shall not be unreasonably withheld by an insured.
 1309         (f) In a dispute between the insured and the insurer, or
 1310  between an assignee of the insured’s rights and the insurer, the
 1311  insurer must notify the insured or the assignee that the policy
 1312  limits under this section have been reached within 15 days after
 1313  the limits have been reached.
 1314         (8) APPLICABILITY OF PROVISION REGULATING ATTORNEY
 1315  ATTORNEY’S FEES.—
 1316         (a) With respect to any dispute under the provisions of ss.
 1317  627.730-627.7405 between the insured and the insurer, or between
 1318  an assignee of an insured’s rights and the insurer, the
 1319  provisions of ss. s. 627.428 and 768.79 shall apply, except as
 1320  provided in subsections (10) and (15), and except that any
 1321  attorney fees recovered must:
 1322         1. Comply with prevailing professional standards;
 1323         2. Ensure that the attorney fees for work performed by an
 1324  attorney does not duplicate work performed by a paralegal or
 1325  legal assistant; and
 1326         3. Not overstate or inflate the number of hours reasonably
 1327  necessary for a case of comparable skill or complexity.
 1328         (b) Notwithstanding s. 627.428 and this subsection, it
 1329  shall be presumed that any attorney fees awarded under ss.
 1330  627.730-627.7405 are calculated without regard to a contingency
 1331  risk multiplier. This presumption may be overcome only if the
 1332  court makes findings of fact based upon competent evidence in
 1333  the record which establishes that:
 1334         1. The party requesting the multiplier would have faced
 1335  substantial difficulties finding competent counsel to pursue the
 1336  case in the relevant market but for the consideration of a fee
 1337  multiplier;
 1338         2. Consideration of a fee multiplier was a necessary
 1339  incentive to obtain competent counsel to pursue the case;
 1340         3. The claim would not be economically feasible to hire an
 1341  attorney on a noncontingent, fixed-fee basis;
 1342         4. The attorney was unable to mitigate the risk of
 1343  nonpayment of attorney fees in any other way; and
 1344         5. The use of a multiplier is justified based on factors
 1345  such as the amount of risk undertaken by the attorney at the
 1346  outset of the case, the results obtained, and the type of fee
 1347  arrangement between the attorney and client.
 1348         (c) Paragraph (b) does not apply to a case where class
 1349  action status has been sought or granted, and a contingency risk
 1350  multiplier may be applied in such cases notwithstanding
 1351  paragraph (b).
 1352         (d) Upon the request of either party, a judge must make
 1353  written findings, substantiated by evidence presented at trial
 1354  or any hearings associated with the trial, that an award of
 1355  attorney fees complies with this subsection.
 1356         (9) PREFERRED PROVIDERS.—An insurer may negotiate and
 1357  contract enter into contracts with preferred licensed health
 1358  care providers for the benefits described in this section,
 1359  referred to in this section as “preferred providers,” which
 1360  shall include health care providers licensed under chapter
 1361  chapters 458, chapter 459, chapter 460, chapter 461, or chapter
 1362  and 463. The insurer may provide an option to an insured to use
 1363  a preferred provider at the time of purchasing purchase of the
 1364  policy for personal injury protection benefits, if the
 1365  requirements of this subsection are met. If the insured elects
 1366  to use a provider who is not a preferred provider, whether the
 1367  insured purchased a preferred provider policy or a nonpreferred
 1368  provider policy, the medical benefits provided by the insurer
 1369  shall be as required by this section. If the insured elects to
 1370  use a provider who is a preferred provider, the insurer may pay
 1371  medical benefits in excess of the benefits required by this
 1372  section and may waive or lower the amount of any deductible that
 1373  applies to such medical benefits. If the insurer offers a
 1374  preferred provider policy to a policyholder or applicant, it
 1375  must also offer a nonpreferred provider policy. The insurer
 1376  shall provide each insured policyholder with a current roster of
 1377  preferred providers in the county in which the insured resides
 1378  at the time of purchase of such policy, and shall make such list
 1379  available for public inspection during regular business hours at
 1380  the insurer’s principal office of the insurer within the state.
 1381         (10) DEMAND LETTER.—
 1382         (a) As a condition precedent to filing any action for
 1383  benefits under this section, the insurer must be provided with
 1384  written notice of an intent to initiate litigation must be
 1385  provided to the insurer. Such notice may not be sent until the
 1386  claim is overdue, including any additional time the insurer has
 1387  to pay the claim pursuant to paragraph (4)(b).
 1388         (b) The notice must required shall state that it is a
 1389  “demand letter under s. 627.736(10)” and shall state with
 1390  specificity:
 1391         1. The name of the insured upon which such benefits are
 1392  being sought, including a copy of the assignment giving rights
 1393  to the claimant if the claimant is not the insured.
 1394         2. The claim number or policy number upon which such claim
 1395  was originally submitted to the insurer.
 1396         3. To the extent applicable, the name of any medical
 1397  provider who rendered to an insured the treatment, services,
 1398  accommodations, or supplies that form the basis of such claim;
 1399  and an itemized statement specifying each exact amount, the date
 1400  of treatment, service, or accommodation, and the type of benefit
 1401  claimed to be due. A completed form satisfying the requirements
 1402  of paragraph (5)(d) or the lost-wage statement previously
 1403  submitted may be used as the itemized statement. To the extent
 1404  that the demand involves an insurer’s withdrawal of payment
 1405  under paragraph (7)(a) for future treatment not yet rendered,
 1406  the claimant shall attach a copy of the insurer’s notice
 1407  withdrawing such payment and an itemized statement of the type,
 1408  frequency, and duration of future treatment claimed to be
 1409  reasonable and medically necessary.
 1410         (c) Each notice required by this subsection must be
 1411  delivered to the insurer by United States certified or
 1412  registered mail, return receipt requested, or by electronic
 1413  mail. Such postal costs shall be reimbursed by the insurer if so
 1414  requested by the claimant in the notice, when the insurer pays
 1415  the claim. Such notice must be sent to the person and address
 1416  specified by the insurer for the purposes of receiving notices
 1417  under this subsection. Each licensed insurer, whether domestic,
 1418  foreign, or alien, shall file with the office designation of the
 1419  name and physical and e-mail address of the designated person to
 1420  whom notices must pursuant to this subsection shall be sent
 1421  which the office shall make available on its Internet website.
 1422  The name and address on file with the office pursuant to s.
 1423  624.422 are shall be deemed the authorized representative to
 1424  accept notice pursuant to this subsection if in the event no
 1425  other designation has been made.
 1426         (d) If, within 30 days after receipt of notice by the
 1427  insurer, the overdue claim specified in the notice is paid by
 1428  the insurer together with applicable interest and a penalty of
 1429  10 percent of the overdue amount paid by the insurer, subject to
 1430  a maximum penalty of $250, no action may be brought against the
 1431  insurer. If the demand involves an insurer’s withdrawal of
 1432  payment under paragraph (7)(a) for future treatment not yet
 1433  rendered, no action may be brought against the insurer if,
 1434  within 30 days after its receipt of the notice, the insurer
 1435  mails to the person filing the notice a written statement of the
 1436  insurer’s agreement to pay for such treatment in accordance with
 1437  the notice and to pay a penalty of 10 percent, subject to a
 1438  maximum penalty of $250, when it pays for such future treatment
 1439  in accordance with the requirements of this section. To the
 1440  extent the insurer determines not to pay any amount demanded,
 1441  the penalty is shall not be payable in any subsequent action.
 1442  For purposes of this subsection, payment or the insurer’s
 1443  agreement shall be treated as being made on the date a draft or
 1444  other valid instrument that is equivalent to payment, or the
 1445  insurer’s written statement of agreement, is placed in the
 1446  United States mail in a properly addressed, postpaid envelope,
 1447  or if not so posted, on the date of delivery. The insurer is not
 1448  obligated to pay any attorney attorney’s fees if the insurer
 1449  pays the claim or mails its agreement to pay for future
 1450  treatment within the time prescribed by this subsection.
 1451         (e) The applicable statute of limitation for an action
 1452  under this section shall be tolled for a period of 30 business
 1453  days by the mailing of the notice required by this subsection.
 1454         (f) Any insurer making a general business practice of not
 1455  paying valid claims until receipt of the notice required by this
 1456  subsection is engaging in an unfair trade practice under the
 1457  insurance code.
 1458         (11) FAILURE TO PAY VALID CLAIMS; UNFAIR OR DECEPTIVE
 1459  PRACTICE.—
 1460         (a) If An insurer fails to pay valid claims for personal
 1461  injury protection with such frequency so as to indicate a
 1462  general business practice, the insurer is engaging in a
 1463  prohibited unfair or deceptive practice that is subject to the
 1464  penalties provided in s. 626.9521 and the office has the powers
 1465  and duties specified in ss. 626.9561-626.9601 if the insurer,
 1466  with such frequency so as to indicate a general business
 1467  practice: with respect thereto
 1468         1. Fails to pay valid claims for personal injury
 1469  protection; or
 1470         2. Fails to pay valid claims until receipt of the notice
 1471  required by subsection (10).
 1472         (b) Notwithstanding s. 501.212, the Department of Legal
 1473  Affairs may investigate and initiate actions for a violation of
 1474  this subsection, including, but not limited to, the powers and
 1475  duties specified in part II of chapter 501.
 1476         (17) REFERRAL FEES.—A person, entity, or licensee may not
 1477  accept a fee for the referral of the insured to a person,
 1478  entity, or licensee for medical benefits under paragraph (1)(a)
 1479  unless the person, entity, or licensee making the referral
 1480  discloses in writing to the insured and the insurer that he or
 1481  she has received a referral fee, the amount of the referral fee,
 1482  and the name and business address of the person or entity that
 1483  provided the referral fee. Reimbursement under the Florida Motor
 1484  Vehicle No-Fault Law to a person, entity, or licensee who
 1485  receives and fails to disclose a referral fee to the insured and
 1486  insurer as required by this subsection must be reduced by the
 1487  amount of the undisclosed referral fee.
 1488         Section 9. Effective December 1, 2012, subsection (16) of
 1489  section 627.736, Florida Statutes, is amended to read:
 1490         627.736 Required personal injury protection benefits;
 1491  exclusions; priority; claims.—
 1492         (16) SECURE ELECTRONIC DATA TRANSFER.—If all parties
 1493  mutually and expressly agree, A notice, documentation,
 1494  transmission, or communication of any kind required or
 1495  authorized under ss. 627.730-627.7405 may be transmitted
 1496  electronically if it is transmitted by secure electronic data
 1497  transfer that is consistent with state and federal privacy and
 1498  security laws.
 1499         Section 10. Section 627.7405, Florida Statutes, is amended
 1500  to read:
 1501         627.7405 Insurers’ right of reimbursement.—
 1502         (1) Notwithstanding any other provisions of ss. 627.730
 1503  627.7405, an any insurer providing personal injury protection
 1504  benefits on a private passenger motor vehicle shall have, to the
 1505  extent of any personal injury protection benefits paid to any
 1506  person as a benefit arising out of such private passenger motor
 1507  vehicle insurance, a right of reimbursement against the owner or
 1508  the insurer of the owner of a commercial motor vehicle, if the
 1509  benefits paid result from such person having been an occupant of
 1510  the commercial motor vehicle or having been struck by the
 1511  commercial motor vehicle while not an occupant of any self
 1512  propelled vehicle.
 1513         (2) The insurer’s right of reimbursement under this section
 1514  does not apply to an owner or registrant as identified in s.
 1515  627.733(1)(b).
 1516         Section 11. Subsections (1), (10), and (13) of section
 1517  817.234, Florida Statutes, are amended to read:
 1518         817.234 False and fraudulent insurance claims.—
 1519         (1)(a) A person commits insurance fraud punishable as
 1520  provided in subsection (11) if that person, with the intent to
 1521  injure, defraud, or deceive any insurer:
 1522         1. Presents or causes to be presented any written or oral
 1523  statement as part of, or in support of, a claim for payment or
 1524  other benefit pursuant to an insurance policy or a health
 1525  maintenance organization subscriber or provider contract,
 1526  knowing that such statement contains any false, incomplete, or
 1527  misleading information concerning any fact or thing material to
 1528  such claim;
 1529         2. Prepares or makes any written or oral statement that is
 1530  intended to be presented to any insurer in connection with, or
 1531  in support of, any claim for payment or other benefit pursuant
 1532  to an insurance policy or a health maintenance organization
 1533  subscriber or provider contract, knowing that such statement
 1534  contains any false, incomplete, or misleading information
 1535  concerning any fact or thing material to such claim; or
 1536         3.a. Knowingly presents, causes to be presented, or
 1537  prepares or makes with knowledge or belief that it will be
 1538  presented to any insurer, purported insurer, servicing
 1539  corporation, insurance broker, or insurance agent, or any
 1540  employee or agent thereof, any false, incomplete, or misleading
 1541  information or written or oral statement as part of, or in
 1542  support of, an application for the issuance of, or the rating
 1543  of, any insurance policy, or a health maintenance organization
 1544  subscriber or provider contract; or
 1545         b. Who Knowingly conceals information concerning any fact
 1546  material to such application; or.
 1547         4. Knowingly presents, causes to be presented, or prepares
 1548  or makes with knowledge or belief that it will be presented to
 1549  any insurer a claim for payment or other benefit under a
 1550  personal injury protection insurance policy if the person knows
 1551  that the payee knowingly submitted a false, misleading, or
 1552  fraudulent application or other document when applying for
 1553  licensure as a health care clinic, seeking an exemption from
 1554  licensure as a health care clinic, or demonstrating compliance
 1555  with part X of chapter 400.
 1556         (b) All claims and application forms must shall contain a
 1557  statement that is approved by the Office of Insurance Regulation
 1558  of the Financial Services Commission which clearly states in
 1559  substance the following: “Any person who knowingly and with
 1560  intent to injure, defraud, or deceive any insurer files a
 1561  statement of claim or an application containing any false,
 1562  incomplete, or misleading information is guilty of a felony of
 1563  the third degree.” This paragraph does shall not apply to
 1564  reinsurance contracts, reinsurance agreements, or reinsurance
 1565  claims transactions.
 1566         (10) A licensed health care practitioner who is found
 1567  guilty of insurance fraud under this section for an act relating
 1568  to a personal injury protection insurance policy loses his or
 1569  her license to practice for 5 years and may not receive
 1570  reimbursement for personal injury protection benefits for 10
 1571  years. As used in this section, the term “insurer” means any
 1572  insurer, health maintenance organization, self-insurer, self
 1573  insurance fund, or other similar entity or person regulated
 1574  under chapter 440 or chapter 641 or by the Office of Insurance
 1575  Regulation under the Florida Insurance Code.
 1576         (13) As used in this section, the term:
 1577         (a) “Insurer” means any insurer, health maintenance
 1578  organization, self-insurer, self-insurance fund, or similar
 1579  entity or person regulated under chapter 440 or chapter 641 or
 1580  by the Office of Insurance Regulation under the Florida
 1581  Insurance Code.
 1582         (b)(a) “Property” means property as defined in s. 812.012.
 1583         (c)(b) “Value” means value as defined in s. 812.012.
 1584         Section 12. Subsection (4) of section 316.065, Florida
 1585  Statutes, is amended to read:
 1586         316.065 Crashes; reports; penalties.—
 1587         (4) Any person who knowingly repairs a motor vehicle
 1588  without having made a report as required by subsection (3) is
 1589  guilty of a misdemeanor of the first degree, punishable as
 1590  provided in s. 775.082 or s. 775.083. The owner and driver of a
 1591  vehicle involved in a crash who makes a report thereof in
 1592  accordance with subsection (1) or s. 316.066(1) is not liable
 1593  under this section.
 1594         Section 13. Motor vehicle insurance rate rollback.—
 1595         (1) The Office of Insurance Regulation shall order insurers
 1596  writing personal injury protection insurance in this state to
 1597  make a rate filing before October 1, 2012, and effective January
 1598  1, 2013, which reduces rates for such insurance by a factor that
 1599  reflects the expected effect of the changes contained in this
 1600  act. In the absence of clear and convincing evidence to the
 1601  contrary, it shall be presumed that the expected impact of the
 1602  act will result in at least a 25 percent reduction in the rates
 1603  in effect for such insurance on December 31, 2012. In lieu of
 1604  making the rate filing required in this subsection, an insurer
 1605  may, upon notification to the office, implement a 25 percent
 1606  reduction of its rates, effective January 1, 2013.
 1607         (2) An insurer or rating organization that contends in the
 1608  January 1, 2013, rate filing or any subsequent rate filing made
 1609  on or before December 31, 2018, that the presumed reduced rate
 1610  provided for in subsection (1) is excessive, inadequate, or
 1611  unfairly discriminatory shall separately state in its filing the
 1612  rate it contends is appropriate and shall state with specificity
 1613  the factors or data that it contends should be considered in
 1614  order to produce such appropriate rate. The insurer or rating
 1615  organization shall be permitted to use all of the generally
 1616  accepted actuarial techniques, as provided in s. 627.062,
 1617  Florida Statutes, in making any filing pursuant to this
 1618  subsection. The Office of Insurance Regulation shall review each
 1619  exception and approve or disapprove it prior to use. It shall be
 1620  the insurer’s burden to actuarially justify by clear and
 1621  convincing evidence any deviation that results in a rate that is
 1622  higher than the presumed reduced rate as provided in subsection
 1623  (1).
 1624         (3) If any provision of this act is held invalid by a court
 1625  of competent jurisdiction, the Office of Insurance Regulation
 1626  shall permit an adjustment of all rates filed under this section
 1627  to reflect the impact of such holding on such rates so as to
 1628  ensure that the rates are not excessive, inadequate, or unfairly
 1629  discriminatory.
 1630         Section 14. The Office of Insurance Regulation shall
 1631  perform a comprehensive personal injury protection data call and
 1632  publish the results by January 1, 2015. It is the intent of the
 1633  Legislature that the office design the data call with the
 1634  expectation that the Legislature will use the data to help
 1635  evaluate market conditions relating to the Florida Motor Vehicle
 1636  No-Fault Law and the impact on the market of reforms to the law
 1637  made by this act. The elements of the data call must address,
 1638  but need not be limited to, the following components of the
 1639  Florida Motor Vehicle No-Fault Law:
 1640         (1) Quantity of personal injury protection claims.
 1641         (2) Type or nature of claimants.
 1642         (3) Amount and type of personal injury protection benefits
 1643  paid and expenses incurred.
 1644         (4) Type and quantity of, and charges for, medical
 1645  benefits.
 1646         (5)Attorney fees related to bringing and defending actions
 1647  for benefits.
 1648         (6) Direct earned premiums for personal injury protection
 1649  coverage, pure loss ratios, pure premiums, and other information
 1650  related to premiums and losses.
 1651         (7) Licensed drivers and accidents.
 1652         (8) Fraud and enforcement.
 1653         Section 15. If any provision of this act or its application
 1654  to any person or circumstance is held invalid, the invalidity
 1655  does not affect other provisions or applications of the act
 1656  which can be given effect without the invalid provision or
 1657  application, and to this end the provisions of this act are
 1658  severable.
 1659         Section 16. Except as otherwise expressly provided in this
 1660  act, this act shall take effect July 1, 2012.