Florida Senate - 2019                                     SB 714
       By Senator Brandes
       24-00756B-19                                           2019714__
    1                        A bill to be entitled                      
    2         An act relating to insurance; providing a short title;
    3         amending s. 624.155, F.S.; revising circumstances
    4         under which a person may not bring a civil action
    5         against an insurer; amending s. 626.9541, F.S.;
    6         providing that provisions relating to unfair methods
    7         of competition and unfair or deceptive insurance acts
    8         or practices do not prohibit insurers or agents from
    9         offering or giving to insureds certain free or
   10         discounted services or offerings relating to loss
   11         control or loss mitigation; amending s. 627.0655,
   12         F.S.; revising circumstances under which insurers or
   13         certain authorized persons may provide certain premium
   14         discounts to insureds; amending s. 627.4555, F.S.;
   15         requiring life insurers that are required to provide a
   16         specified notice to policyowners of an impending lapse
   17         in coverage to also notify the policyowner’s agent of
   18         record within a certain timeframe; providing that the
   19         agent is not responsible for any lapse in coverage;
   20         exempting the insurer from the requirement under
   21         certain circumstances; amending s. 627.7015, F.S.;
   22         adding circumstances under which certain property
   23         insurers may provide required notice to policyholders
   24         of their right to participate in a certain mediation
   25         program; providing an effective date.
   27  Be It Enacted by the Legislature of the State of Florida:
   29         Section 1. This act may be cited as “Omnibus Prime.”
   30         Section 2. Paragraph (d) of subsection (3) of section
   31  624.155, Florida Statutes, is amended to read:
   32         624.155 Civil remedy.—
   33         (3)
   34         (d) An No action may not be brought shall lie if, within 60
   35  days after filing the notice, the damages are paid; the
   36  appraisal is in process and a payment, if required, is timely
   37  made; or the circumstances giving rise to the violation are
   38  corrected.
   39         Section 3. Subsection (5) is added to section 626.9541,
   40  Florida Statutes, to read:
   41         626.9541 Unfair methods of competition and unfair or
   42  deceptive acts or practices defined.—
   44  CONSTRUCTION.—This section does not prohibit an insurer or agent
   45  from offering or giving to an insured, for free or at a
   46  discounted price, services or other offerings relating to loss
   47  control or loss mitigation with respect to the risks covered
   48  under the policy.
   49         Section 4. Section 627.0655, Florida Statutes, is amended
   50  to read:
   51         627.0655 Policyholder loss or expense-related premium
   52  discounts.—An insurer or person authorized to engage in the
   53  business of insurance in this state may include, in the premium
   54  charged an insured for any policy, contract, or certificate of
   55  insurance, a discount based on the fact that another policy,
   56  contract, or certificate of any type has been purchased by the
   57  insured from:
   58         (1) The same insurer or insurer group, or another insurer
   59  under a joint marketing agreement;
   60         (2) The Citizens Property Insurance Corporation created
   61  under s. 627.351(6), if the same insurance agent is servicing
   62  both policies;, or
   63         (3) An insurer that has removed the policy from the
   64  Citizens Property Insurance Corporation or issued a policy
   65  pursuant to the clearinghouse program under s. 627.3518, if the
   66  same insurance agent is servicing both policies.
   67         Section 5. Section 627.4555, Florida Statutes, is amended
   68  to read:
   69         627.4555 Secondary notice.—
   70         (1) Except as provided in this section, a contract for life
   71  insurance issued or issued for delivery in this state on or
   72  after October 1, 1997, covering a natural person 64 years of age
   73  or older, which has been in force for at least 1 year, may not
   74  be lapsed for nonpayment of premium unless, after expiration of
   75  the grace period, and at least 21 days before the effective date
   76  of any such lapse, the insurer has mailed a notification of the
   77  impending lapse in coverage to the policyowner and to a
   78  specified secondary addressee if such addressee has been
   79  designated in writing by name and address by the policyowner. An
   80  insurer issuing a life insurance contract on or after October 1,
   81  1997, shall notify the applicant of the right to designate a
   82  secondary addressee at the time of application for the policy,
   83  on a form provided by the insurer, and at any time the policy is
   84  in force, by submitting a written notice to the insurer
   85  containing the name and address of the secondary addressee. For
   86  purposes of any life insurance policy that provides a grace
   87  period of more than 51 days for nonpayment of premiums, the
   88  notice of impending lapse in coverage required by this section
   89  must be mailed to the policyowner and the secondary addressee at
   90  least 21 days before the expiration of the grace period provided
   91  in the policy. This section does not apply to any life insurance
   92  contract under which premiums are payable monthly or more
   93  frequently and are regularly collected by a licensed agent or
   94  are paid by credit card or any preauthorized check processing or
   95  automatic debit service of a financial institution.
   96         (2) If the policyowner has a life agent of record or any
   97  agent of record, the insurer must also notify the agent of the
   98  impending lapse in coverage or mail or send electronically a
   99  copy of the notification of the impending lapse in coverage
  100  under subsection (1) to the agent at least 21 days before the
  101  effective date of such lapse. Receipt of such notice does not
  102  make the agent responsible for any lapse in coverage. An insurer
  103  is not required to notify the agent under this subsection if any
  104  of the following applies:
  105         (a) The insurer maintains an online system that allows an
  106  agent to independently determine if a policy has lapsed.
  107         (b) The insurer has no record of the current agent of
  108  record.
  109         (c) The agent is employed by the insurer or an affiliate of
  110  the insurer.
  111         Section 6. Subsection (2) of section 627.7015, Florida
  112  Statutes, is amended to read:
  113         627.7015 Alternative procedure for resolution of disputed
  114  property insurance claims.—
  115         (2) Either at the time a first-party claim within the scope
  116  of this section is filed by the policyholder or at the time
  117  coverage is applied and payment is determined, the insurer shall
  118  notify the policyholder of its right to participate in the
  119  mediation program under this section. The department shall
  120  prepare a consumer information pamphlet for distribution to
  121  persons participating in mediation.
  122         Section 7. This act shall take effect July 1, 2019.