Florida Senate - 2023 SB 312
By Senator Collins
14-00841-23 2023312__
1 A bill to be entitled
2 An act relating to insurance; amending s. 627.4301,
3 F.S.; revising restrictions on the use of genetic
4 information for insurance purposes by life insurers
5 and long-term care insurers; specifying a restriction
6 on and an authorized use of genetic information for
7 insurance purposes by disability income insurers;
8 deleting a provision construing certain actions by
9 life insurers and long-term care insurers; amending s.
10 626.9541, F.S.; providing that certain restrictions
11 against unfair discrimination or unlawful rebates do
12 not include value-added products or services offered
13 or provided by insurers or their agents if certain
14 conditions are met; providing requirements for and
15 restrictions on insurers or agents offering or
16 providing such products or services; authorizing
17 insurers or agents to provide such products or
18 services as part of a pilot or testing program under
19 certain circumstances; specifying authorized value
20 added products and services; authorizing the Financial
21 Services Commission to adopt rules; providing an
22 effective date.
23
24 Be It Enacted by the Legislature of the State of Florida:
25
26 Section 1. Subsection (2) of section 627.4301, Florida
27 Statutes, is amended to read:
28 627.4301 Genetic information for insurance purposes.—
29 (2) USE OF GENETIC INFORMATION.—
30 (a) In the absence of a diagnosis of a condition related to
31 genetic information, health insurers, life insurers, and long
32 term care insurers authorized to transact insurance in this
33 state may not cancel, limit, or deny coverage, or establish
34 differentials in premium rates, based on such information.
35 (b) Health insurers, life insurers, and long-term care
36 insurers may not require or solicit genetic information, use
37 genetic test results, or consider a person’s decisions or
38 actions relating to genetic testing in any manner for any
39 insurance purpose.
40 (c) A life insurer, long-term care insurer, or disability
41 income insurer authorized to transact insurance in this state:
42 1. May not cancel coverage based on genetic information;
43 require an applicant to take a genetic test as a condition of
44 insurability; or obtain, request, or otherwise require the
45 complete genome sequence of an applicant’s DNA.
46 2. May use genetic information for underwriting purposes
47 only if the genetic information is contained in the applicant’s
48 medical record.
49 (d) This section does not apply to the underwriting or
50 issuance of an accident-only policy, hospital indemnity or fixed
51 indemnity policy, dental policy, or vision policy or any other
52 actions of an insurer directly related to an accident-only
53 policy, hospital indemnity or fixed indemnity policy, dental
54 policy, or vision policy.
55 (d) Nothing in this section shall be construed as
56 preventing a life insurer or long-term care insurer from
57 accessing an individual’s medical record as part of an
58 application exam. Nothing in this section prohibits a life
59 insurer or long-term care insurer from considering a medical
60 diagnosis included in an individual’s medical record, even if a
61 diagnosis was made based on the results of a genetic test.
62 Section 2. Paragraph (h) of subsection (1) of section
63 626.9541, Florida Statutes, is amended to read:
64 626.9541 Unfair methods of competition and unfair or
65 deceptive acts or practices defined.—
66 (1) UNFAIR METHODS OF COMPETITION AND UNFAIR OR DECEPTIVE
67 ACTS.—The following are defined as unfair methods of competition
68 and unfair or deceptive acts or practices:
69 (h) Unlawful rebates.—
70 1. Except as otherwise expressly provided by law, or in an
71 applicable filing with the office, knowingly:
72 a. Permitting, or offering to make, or making, any contract
73 or agreement as to such contract other than as plainly expressed
74 in the insurance contract issued thereon;
75 b. Paying, allowing, or giving, or offering to pay, allow,
76 or give, directly or indirectly, as inducement to such insurance
77 contract, any unlawful rebate of premiums payable on the
78 contract, any special favor or advantage in the dividends or
79 other benefits thereon, or any valuable consideration or
80 inducement whatever not specified in the contract;
81 c. Giving, selling, or purchasing, or offering to give,
82 sell, or purchase, as inducement to such insurance contract or
83 in connection therewith, any stocks, bonds, or other securities
84 of any insurance company or other corporation, association, or
85 partnership, or any dividends or profits accrued thereon, or
86 anything of value whatsoever not specified in the insurance
87 contract.
88 2. Nothing in paragraph (g) or subparagraph 1. of this
89 paragraph shall be construed as including within the definition
90 of discrimination or unlawful rebates:
91 a. In the case of any contract of life insurance or life
92 annuity, paying bonuses to all policyholders or otherwise
93 abating their premiums in whole or in part out of surplus
94 accumulated from nonparticipating insurance; provided that any
95 such bonuses or abatement of premiums is fair and equitable to
96 all policyholders and for the best interests of the company and
97 its policyholders.
98 b. In the case of life insurance policies issued on the
99 industrial debit plan, making allowance to policyholders who
100 have continuously for a specified period made premium payments
101 directly to an office of the insurer in an amount which fairly
102 represents the saving in collection expenses.
103 c. Readjustment of the rate of premium for a group
104 insurance policy based on the loss or expense thereunder, at the
105 end of the first or any subsequent policy year of insurance
106 thereunder, which may be made retroactive only for such policy
107 year.
108 d. Issuance of life insurance policies or annuity contracts
109 at rates less than the usual rates of premiums for such policies
110 or contracts, as group insurance or employee insurance as
111 defined in this code.
112 e. Issuing life or disability insurance policies on a
113 salary savings, bank draft, preauthorized check, payroll
114 deduction, or other similar plan at a reduced rate reasonably
115 related to the savings made by the use of such plan.
116 3.a. No title insurer, or any member, employee, attorney,
117 agent, or agency thereof, shall pay, allow, or give, or offer to
118 pay, allow, or give, directly or indirectly, as inducement to
119 title insurance, or after such insurance has been effected, any
120 rebate or abatement of the premium or any other charge or fee,
121 or provide any special favor or advantage, or any monetary
122 consideration or inducement whatever.
123 b. Nothing in this subparagraph shall be construed as
124 prohibiting the payment of fees to attorneys at law duly
125 licensed to practice law in the courts of this state, for
126 professional services, or as prohibiting the payment of earned
127 portions of the premium to duly appointed agents or agencies who
128 actually perform services for the title insurer. Nothing in this
129 subparagraph shall be construed as prohibiting a rebate or
130 abatement of an attorney fee charged for professional services,
131 or that portion of the premium that is not required to be
132 retained by the insurer pursuant to s. 627.782(1), or any other
133 agent charge or fee to the person responsible for paying the
134 premium, charge, or fee.
135 c. No insured named in a policy, or any other person
136 directly or indirectly connected with the transaction involving
137 the issuance of such policy, including, but not limited to, any
138 mortgage broker, real estate broker, builder, or attorney, any
139 employee, agent, agency, or representative thereof, or any other
140 person whatsoever, shall knowingly receive or accept, directly
141 or indirectly, any rebate or abatement of any portion of the
142 title insurance premium or of any other charge or fee or any
143 monetary consideration or inducement whatsoever, except as set
144 forth in sub-subparagraph b.; provided, in no event shall any
145 portion of the attorney fee, any portion of the premium that is
146 not required to be retained by the insurer pursuant to s.
147 627.782(1), any agent charge or fee, or any other monetary
148 consideration or inducement be paid directly or indirectly for
149 the referral of title insurance business.
150 4.a. Paragraph (g) or subparagraph 1. may not be construed
151 as including within the definition of discrimination or unlawful
152 rebates the offer or provision by an insurer or an agent of the
153 insurer, including by or through employees, affiliates, or
154 third-party representatives, of value-added products or services
155 at no or reduced cost when such products or services are not
156 specified in the insurance policy, if the product or service
157 relates to the insurance coverage and is primarily designed to
158 do one or more of the following:
159 (I) Provide loss mitigation or loss control;
160 (II) Reduce claim costs or claim settlement costs;
161 (III) Provide education about liability risks or risk of
162 loss to persons or property;
163 (IV) Monitor or assess risk, identify sources of risk, or
164 develop strategies for eliminating or reducing risk;
165 (V) Enhance health;
166 (VI) Enhance financial wellness through items such as
167 education or financial planning services;
168 (VII) Provide post-loss services;
169 (VIII) Incentivize behavioral changes to improve the health
170 or reduce the risk of death or disability of a policyholder,
171 potential policyholder, certificateholder, potential
172 certificateholder, insured, potential insured, or applicant; or
173 (IX) Assist in the administration of employee or retiree
174 benefit insurance coverage.
175 b. The cost to the insurer or agent offering the product or
176 service to a customer must be reasonable in comparison to the
177 customer’s premiums or insurance coverage for the policy class.
178 c. If the insurer or agent is providing the product or
179 service, the insurer or agent must ensure that the customer is
180 provided with contact information to assist the customer with
181 questions regarding the product or service.
182 d. The availability of the product or service must be based
183 on documented objective evidence, and the product or service
184 must be offered in a manner that is not unfairly discriminatory.
185 The documented evidence must be maintained by the insurer or
186 agent and produced upon request by the office or the department.
187 e. If an insurer or agent has a good faith belief, but does
188 not have sufficient evidence to demonstrate, that the product or
189 service meets any of the criteria in sub-sub-subparagraphs
190 a.(I)-(IX), the insurer or agent may provide the product or
191 service in a manner that is not unfairly discriminatory as part
192 of a pilot or testing program for up to 1 year. An insurer or
193 agent must notify the office or department, as applicable, of
194 such pilot or testing program offered to consumers in this state
195 before commencing the program. The insurer or agent may commence
196 the program unless the office or department, as applicable,
197 objects to the program within 21 days after receiving the
198 notice.
199 f. An insurer, agent, or representative thereof may not
200 offer or provide insurance as an inducement to the purchase of
201 another policy or otherwise use the words “free,” “no cost,” or
202 similar words in an advertisement.
203 g. For purposes of this subparagraph, value-added products
204 and services may include:
205 (I) Offering or giving noncash gifts, items, or services,
206 including meals to or charitable donations on behalf of a
207 customer, in connection with the marketing, sale, purchase, or
208 retention of contracts of insurance, provided the cost does not
209 exceed an amount determined to be reasonable by commission rule
210 per policy year per term. The offer must be made in a manner
211 that is not unfairly discriminatory. The customer may not be
212 required to purchase, continue to purchase, or renew a policy in
213 exchange for the gift, item, or service.
214 (II) Offering or giving noncash gifts, items, or services,
215 including meals to or charitable donations on behalf of a
216 customer, to commercial or institutional customers in connection
217 with the marketing, sale, purchase, or retention of contracts of
218 insurance, provided the cost is reasonable in comparison to the
219 premium or proposed premium and the cost of the gift or service
220 is not included in any amounts charged to another person or
221 entity. The offer must be made in a manner that is not unfairly
222 discriminatory. The customer may not be required to purchase,
223 continue to purchase, or renew a policy in exchange for the
224 gift, item, or service.
225 (III) Conducting raffles or drawings permitted by state
226 law, provided there is no financial cost to entrants for
227 participating, the raffle or drawing does not obligate entrants
228 to purchase insurance, the prizes are not valued in excess of a
229 reasonable amount as determined by commission rule, and the
230 raffle or drawing is open to the public. The raffle or drawing
231 must be offered in a manner that is not unfairly discriminatory.
232 The entrant may not be required to purchase, continue to
233 purchase, or renew a policy in exchange for the gift, item, or
234 service.
235 h. The commission may adopt rules to administer this
236 subparagraph to ensure consumer protection. Such rules,
237 consistent with applicable law, may address, among other issues,
238 consumer data protections and privacy, consumer disclosure, and
239 unfair discrimination.
240 Section 3. This act shall take effect July 1, 2023.