Florida Senate - 2018                                    SB 1860
       By Senator Broxson
       1-01215B-18                                           20181860__
    1                        A bill to be entitled                      
    2         An act relating to the Interstate Insurance Product
    3         Regulation Compact; amending s. 626.9933, F.S.;
    4         providing that the state prospectively opts out of all
    5         uniform standards adopted by the Interstate Insurance
    6         Product Regulation Commission involving annuity and
    7         disability income insurance products; amending s.
    8         626.9934, F.S.; revising the effective date of compact
    9         standards adopted by the state; revising applicability
   10         of a prospective opt-out provision; deleting a
   11         provision construing certain opt-out authority under
   12         the compact; deleting a provision specifying the
   13         state’s opting out of certain standards; deleting a
   14         provision relating to applicability and construction
   15         of a certain exclusivity provision in the compact;
   16         providing an effective date.
   18  Be It Enacted by the Legislature of the State of Florida:
   20         Section 1. Section 626.9933, Florida Statutes, is amended
   21  to read:
   22         626.9933 Opt out from annuity, disability income, and long
   23  term care products standards.—Pursuant to Article VII of the
   24  Interstate Insurance Product Regulation Compact, adopted by this
   25  act, this state prospectively opts out of all uniform standards
   26  adopted by the Interstate Insurance Product Regulation
   27  Commission involving annuity, disability income, and long-term
   28  care insurance products, and such opt out may not be treated as
   29  a material variance in the offer or acceptance of this state to
   30  participate in the compact.
   31         Section 2. Section 626.9934, Florida Statutes, is amended
   32  to read:
   33         626.9934 Effective date of compact standards; opt out of
   34  certain amendments opt out procedures; state law exemptions;
   35  legislative notice.—
   36         (1) Except as provided in s. 626.9933 and this section, all
   37  uniform standards adopted by the Interstate Insurance Product
   38  Regulation Commission as of March 9, 2018 March 1, 2013, are
   39  adopted by this state.
   40         (2) Notwithstanding subsections (3), (4), (5), and (6) of
   41  Article VII of the Interstate Insurance Product Regulation
   42  Compact as adopted by this act, This state prospectively opts
   43  out of any new uniform standard, or amendments to existing
   44  uniform standards, adopted by the Interstate Insurance Product
   45  Regulation Commission after March 9, 2018 March 1, 2013, if such
   46  amendments substantially alter or add to existing uniform
   47  standards adopted by this state pursuant to subsection (1),
   48  until such time as this state enacts legislation to adopt new
   49  uniform standards or amendments to existing standards adopted by
   50  the commission after March 9, 2018 March 1, 2013.
   51         (3) The authority under Article VII of the Interstate
   52  Insurance Product Regulation Compact to opt out of a uniform
   53  standard includes an order issued under chapter 120, the
   54  Administrative Procedure Act.
   55         (4) In addition to the uniform standards and amendments to
   56  uniform standards that the state opts out of pursuant to
   57  subsection (2), pursuant to subsections (4) and (5) of Article
   58  VII of the Interstate Insurance Product Regulation Compact, this
   59  state opts out of the following uniform standards adopted by the
   60  Interstate Insurance Product Regulation Commission:
   61         (a) The 10-day period for the unconditional refund of
   62  premiums, plus any fees or charges under s. 626.99.
   63         (b) Underwriting criteria limiting the amount, extent, or
   64  kind of life insurance based on past or future travel in a
   65  manner that is inconsistent with s. 626.9541(1)(dd) as
   66  implemented by the Office of Insurance Regulation.
   67         (c) Any other uniform standard that conflicts with statutes
   68  or rules of this state providing consumer protections for
   69  products covered by the compact.
   70         (5) The exclusivity provision of paragraph (2)(b) of
   71  Article XVI of the Interstate Insurance Product Regulation
   72  Compact applies only to those uniform standards adopted by the
   73  Interstate Insurance Product Regulation Commission in accordance
   74  with the terms of the compact and does not apply to those
   75  standards that this state has opted out of pursuant to this act
   76  or the compact. In addition, the exclusivity provision does not
   77  limit or render inapplicable standards adopted by this state in
   78  the absence of a standard adopted by the commission.
   79  Notwithstanding paragraph (2)(b) of Article XVI of the compact,
   80  standards adopted by this state continue to apply to the
   81  content, approval, and certification of products in this state,
   82  including, but not limited to:
   83         (a) The prohibition against a surrender or deferred sales
   84  charge of more than 10 percent pursuant to s. 627.4554.
   85         (b) Notification to an applicant of the right to designate
   86  a secondary addressee at the time of application under s.
   87  627.4555.
   88         (c) Notification of secondary addressees at least 21 days
   89  before the impending lapse of a policy under s. 627.4555.
   90         (d) The inclusion of a clear statement pursuant to s.
   91  627.803 that the benefits, values, or premiums under a variable
   92  annuity are indeterminate and may vary.
   93         (e) Interest on surrender proceeds pursuant to s. 627.482.
   94         (3)(6) After enactment of this section, if the Interstate
   95  Insurance Product Regulation Commission adopts any new uniform
   96  standard or amendment to the existing uniform standard as
   97  specified in subsection (2), the Office of Insurance Regulation
   98  shall immediately notify the Legislature of such new standard or
   99  amendment.
  100         Section 3. This act shall take effect upon becoming a law.