ENROLLED
       2023 Legislature                            CS for CS for SB 312
       
       
       
       
       
       
                                                              2023312er
    1  
    2         An act relating to insurance; amending s. 626.7851,
    3         F.S.; revising a minimum coursework qualification for
    4         licensure as a life agent; amending s. 626.9541, F.S.;
    5         providing that certain restrictions against unfair
    6         discrimination or unlawful rebates do not include
    7         value-added products or services offered or provided
    8         by life or health insurers or by life or health agents
    9         if certain conditions are met; providing requirements
   10         for and restrictions on such insurers or agents
   11         offering or providing such products or services;
   12         authorizing such insurers or agents to provide such
   13         products or services as part of a pilot or testing
   14         program under certain circumstances; authorizing the
   15         Financial Services Commission to adopt rules;
   16         providing an effective date.
   17          
   18  Be It Enacted by the Legislature of the State of Florida:
   19  
   20         Section 1. Section 626.7851, Florida Statutes, is amended
   21  to read:
   22         626.7851 Requirement as to knowledge, experience, or
   23  instruction.—An applicant for a license as a life agent, except
   24  for a chartered life underwriter (CLU), shall not be qualified
   25  or licensed unless within the 4 years immediately preceding the
   26  date the application for a license is filed with the department
   27  he or she has:
   28         (1) Successfully completed 30 40 hours of coursework in
   29  life insurance, annuities, and variable contracts approved by
   30  the department, 3 hours of which shall be on the subject matter
   31  of ethics. Courses must include instruction on the subject
   32  matter of unauthorized entities engaging in the business of
   33  insurance;
   34         (2) Successfully completed a minimum of 60 hours of
   35  coursework in multiple areas of insurance, which included life
   36  insurance, annuities, and variable contracts, approved by the
   37  department, 3 hours of which shall be on the subject matter of
   38  ethics. Courses must include instruction on the subject matter
   39  of unauthorized entities engaging in the business of insurance;
   40         (3) Earned or maintained an active designation as Chartered
   41  Financial Consultant (ChFC) from the American College of
   42  Financial Services; or Fellow, Life Management Institute (FLMI)
   43  from the Life Management Institute;
   44         (4) Held an active license in life insurance in another
   45  state. This provision may not be used unless the other state
   46  grants reciprocal treatment to licensees formerly licensed in
   47  the state; or
   48         (5) Been employed by the department or office for at least
   49  1 year, full time in life insurance regulatory matters and who
   50  was not terminated for cause, and application for examination is
   51  made within 4 years after the date of termination of his or her
   52  employment with the department or office.
   53  
   54  Prelicensure coursework is not required for an applicant who is
   55  a member or veteran of the United States Armed Forces or the
   56  spouse of such a member or veteran. A qualified individual must
   57  provide a copy of a military identification card, military
   58  dependent identification card, military service record, military
   59  personnel file, veteran record, discharge paper, or separation
   60  document that indicates such member is currently in good
   61  standing or such veteran is honorably discharged.
   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 unfair discrimination or
  152  unlawful rebates the offer or provision by a life or health
  153  insurer or a life or health agent of the life or health insurer,
  154  including by or through an employee, an affiliate, or a third
  155  party representative, of a value-added product or service at no
  156  or reduced cost when such product or service is not specified in
  157  the life or health insurance policy, if the product or service
  158  relates to the insurance coverage and is primarily designed to
  159  do one or more of the following:
  160         (I)Provide loss mitigation or loss control;
  161         (II)Reduce claim costs or claim settlement costs;
  162         (III)Provide education about liability risks or risk of
  163  loss to persons or property;
  164         (IV)Monitor or assess risk, identify sources of risk, or
  165  develop strategies for eliminating or reducing risk;
  166         (V)Enhance health;
  167         (VI)Enhance financial wellness through items such as
  168  education or financial planning services;
  169         (VII)Provide post-loss services;
  170         (VIII)Incentivize behavioral changes to improve the health
  171  or reduce the risk of death or disability of a policyholder,
  172  potential policyholder, certificateholder, potential
  173  certificateholder, insured, potential insured, or applicant; or
  174         (IX)Assist in the administration of employee or retiree
  175  benefit insurance coverage.
  176         b.The cost to the life or health insurer or life or health
  177  agent offering the product or service to a customer must be
  178  reasonable in comparison to the customer’s premiums or life or
  179  health insurance coverage for the policy class.
  180         c.If the life or health insurer or life or health agent is
  181  providing the product or service, the life or health insurer or
  182  life or health agent must ensure that the customer is provided
  183  with contact information to assist the customer with questions
  184  regarding the product or service.
  185         d.The availability of the product or service must be based
  186  on documented objective evidence, and the product or service
  187  must be offered in a manner that is not unfairly discriminatory.
  188  The documented evidence must be maintained by the life or health
  189  insurer or life or health agent and produced upon request by the
  190  office or the department.
  191         e.If a life or health insurer or life or health agent has
  192  a good faith belief, but does not have sufficient evidence to
  193  demonstrate, that the product or service meets any of the
  194  criteria in sub-sub-subparagraphs a.(I)-(IX), the life or health
  195  insurer or life or health agent may provide the product or
  196  service in a manner that is not unfairly discriminatory as part
  197  of a pilot or testing program for up to 1 year. The life or
  198  health insurer or life or health agent must notify the office or
  199  department, as applicable, of such pilot or testing program
  200  offered to consumers in this state before commencing the
  201  program. The life or health insurer or life or health agent may
  202  commence the program unless the office or department, as
  203  applicable, objects to the program within 21 days after
  204  receiving the notice.
  205         f.A life or health insurer, life or health agent, or
  206  representative thereof may not offer or provide life or health
  207  insurance as an inducement to the purchase of another policy or
  208  otherwise use the words “free,” “no cost,” or similar words in
  209  an advertisement.
  210         g.The commission may adopt rules to administer this
  211  subparagraph to ensure consumer protection. Such rules,
  212  consistent with applicable law, may address, among other issues,
  213  consumer data protections and privacy, consumer disclosure, and
  214  unfair discrimination.
  215         Section 3. This act shall take effect July 1, 2023.