Florida Senate - 2023 SB 670 By Senator Yarborough 4-00846A-23 2023670__ 1 A bill to be entitled 2 An act relating to paid family leave insurance; 3 providing a short title; amending s. 624.406, F.S.; 4 authorizing life insurers to transact paid family 5 leave insurance; amending s. 624.6011, F.S.; revising 6 the definition of the term “kinds of insurance” to 7 include paid family leave insurance; creating s. 8 624.6086, F.S.; defining terms; creating s. 627.445, 9 F.S.; providing a short title; providing legislative 10 findings and intent; defining terms; specifying 11 circumstances under which family leave benefits may be 12 provided; requiring paid family leave insurance 13 policies to specify details and requirements with 14 regard to covered family leave reasons; specifying 15 requirements for policies relating to benefit periods, 16 waiting periods, benefit amounts and certain offsets, 17 and the payment of benefits; providing that 18 eligibility for family leave benefits may be limited, 19 excluded, or reduced but must be specified in the 20 policy; specifying permissible limitations, 21 exclusions, and reductions; providing applicable 22 provisions for calculating rates; specifying the means 23 by which a policy may offer family leave benefits; 24 authorizing the Financial Services Commission to adopt 25 rules; providing an effective date. 26 27 Be It Enacted by the Legislature of the State of Florida: 28 29 Section 1. This act may be cited as the “Florida Paid 30 Family Leave Insurance Act.” 31 Section 2. Subsection (1) of section 624.406, Florida 32 Statutes, is amended to read: 33 624.406 Combinations of insuring powers, one insurer.—An 34 insurer which otherwise qualifies therefor may be authorized to 35 transact any one kind or combination of kinds of insurance as 36 defined in part V except: 37 (1) A life insurer may also grant annuities, but shall not 38 be authorized to transact any other kind of insurance except 39 health insurance, disability income insurance, paid family leave 40 insurance, excess coverage for health maintenance organizations, 41 or excess insurance, specific and aggregate, for self-insurers 42 of a plan of health insurance and multiple-employer welfare 43 arrangements. 44 Section 3. Subsection (8) is added to section 624.6011, 45 Florida Statutes, to read: 46 624.6011 “Kinds of insurance” defined.—Insurance shall be 47 classified into the following “kinds of insurance”: 48 (8) Paid family leave. 49 Section 4. Section 624.6086, Florida Statutes, is created 50 to read: 51 624.6086 “Paid family leave insurance” defined.— 52 (1) “Paid family leave insurance” is insurance issued to an 53 employer which is related to a benefit program provided to an 54 employee to pay for a percentage or portion of the employee’s 55 income loss due to: 56 (a) The birth of a child or adoption of a child by the 57 employee; 58 (b) Placement of a child with the employee for foster care; 59 (c) Care of the employee’s family member who has a serious 60 health condition; or 61 (d) Circumstances arising out of the fact that the 62 employee’s family member who is a servicemember is on active 63 duty or has been notified of an impending call or order to 64 active duty. 65 (2) Family leave insurance may be written as an amendment 66 or a rider to a group disability income policy, included in a 67 group disability income policy, or written as a separate group 68 insurance policy purchased by an employer. 69 (3) As used in this section, the terms “child,” “family 70 leave,” and “family member” have the same meanings as provided 71 in s. 627.445(3). 72 Section 5. Section 627.445, Florida Statutes, is created to 73 read: 74 627.445 Paid family leave insurance.— 75 (1) SHORT TITLE.—This section may be cited as the “Paid 76 Family Leave Income Replacement Benefits Act.” 77 (2) LEGISLATIVE FINDINGS AND INTENT.—The Legislature 78 intends to provide the workers of this family-friendly state 79 with access to paid family leave insurance to encourage an 80 entrepreneurial atmosphere, to encourage economic growth, and to 81 promote a healthy business climate. Many workers need to take 82 time off work for family reasons, including bonding with a new 83 child or caring for an ill family member. Increasingly, 84 employers in this state want to make paid leave benefits 85 available to workers who need time off for these reasons. 86 Employers recognize workers will be healthier and more 87 productive when able to take care of family responsibilities 88 without a complete loss of income, and employers believe that 89 offering paid family leave benefits to their employees will 90 improve recruitment opportunities and reduce turnover in the 91 workplace. Disability insurers currently offer income 92 replacement benefits to workers who need time off from work 93 because of their own disabling medical condition. Disability 94 insurers have extensive experience, claims staff, systems, and 95 expertise that can be used to provide fully insured paid family 96 leave benefits for employees, either through employer-sponsored 97 group insurance policies or voluntarily purchased employee 98 policies. It is in the best interests of this state’s workers 99 and employers to permit disability insurers to expand their 100 fully insured benefits in this state to include paid family 101 leave benefits. 102 (3) DEFINITIONS.—As used in this section, the term: 103 (a) “Armed Forces of the United States” includes members of 104 the National Guard and the reserves. 105 (b) “Child” means a person who is: 106 1. Under 18 years of age, or 18 years of age or older and 107 incapable of self-care because of a mental or physical 108 disability; and 109 2. A biological, adopted, or foster son or daughter; a 110 stepson or stepdaughter; a legal ward; or a son or daughter of a 111 person to whom the employee stands in loco parentis. 112 (c) “Family leave” is any leave taken by an employee from 113 work for any of the reasons specified in subsection (4). 114 (d) “Family member” includes a child, spouse, or parent, or 115 other person defined as a family member in the policy. 116 (e) “Health care provider” means any physician, hospital, 117 or other institution, organization, or person that furnishes 118 health care services and is licensed or otherwise authorized to 119 practice in this state. 120 (f) “Parent” means a biological, foster, or adoptive 121 parent; a stepparent; a legal guardian; or other person who 122 stood in loco parentis to the employee when the employee was a 123 child. 124 (g) “Serious health condition” means an illness, injury, 125 impairment, or physical or mental condition, including 126 transplantation preparation and recovery from surgery related to 127 organ or tissue donation, which involves inpatient care in a 128 hospital, hospice, or residential health care facility; 129 continuing treatment; or continuing supervision by a health care 130 provider as defined in the policy. Continuing supervision by a 131 health care provider includes a period of incapacity which is 132 permanent or long-term due to a condition for which treatment 133 may not be effective and where the family member need not be 134 receiving active treatment by a health care provider. 135 (4) FAMILY LEAVE BENEFITS.—Family leave benefits may be 136 provided for any leave taken by an employee from work to: 137 (a) Participate in providing care, including physical or 138 psychological care, for a family member of the employee made 139 necessary by a serious health condition of the family member; 140 (b) Bond with the employee’s child during the first 12 141 months after the child’s birth or the first 12 months after the 142 placement of the child for adoption by or foster care with the 143 employee; 144 (c) Address a qualifying exigency as interpreted under the 145 Family and Medical Leave Act of 1993, 29 U.S.C. s. 2612(a)(1)(E) 146 and 29 C.F.R. s. 825.126(a)(1)-(8), arising out of the fact that 147 the spouse, child, or parent of the employee is on active duty 148 or has been notified of an impending call or order to active 149 duty, in the Armed Forces of the United States; 150 (d) Care for a family servicemember injured in the line of 151 duty; or 152 (e) Take other leave to provide care for a family member or 153 other family leave as specified in the policy. 154 (5) EXPLANATION OF FAMILY LEAVE REASONS.—The policy must 155 specify details and requirements with regard to each of the 156 covered family leave reasons. 157 (6) BENEFIT PERIOD.—The policy must specify the length of 158 family leave benefits available for each covered family leave 159 reason, which may not be less than 2 weeks during a period of 52 160 consecutive calendar weeks. For purposes of this subsection, 52 161 consecutive calendar weeks may be calculated by: 162 (a) A calendar year; 163 (b) Any fixed period starting on a particular date, such as 164 the effective or anniversary date; 165 (c) The period measured forward from the employee’s first 166 day of family leave; 167 (d) A rolling period measured by looking back from the 168 employee’s first day of family leave; or 169 (e) Any other method specified in the policy. 170 (7) WAITING PERIOD.—The policy must specify whether there 171 is an unpaid waiting period, and if so, the terms and conditions 172 of the unpaid waiting period, which may include, but are not 173 limited to, whether: 174 (a) The waiting period runs over a consecutive calendar day 175 period; 176 (b) The waiting period is counted toward the annual 177 allotment of family leave benefits or is in addition to the 178 annual allotment of family leave benefits; 179 (c) The waiting period must be met only once per benefit 180 year or must be met for each separate claim for benefits; and 181 (d) The employee may work or receive paid time off or other 182 compensation by the employer during the waiting period. 183 (8) AMOUNT OF FAMILY LEAVE BENEFITS; OTHER INCOME.— 184 (a) The policy must specify: 185 1. The amount of benefits that will be paid for covered 186 family reasons; 187 2. The definition of the wages or other income upon which 188 the amount of family leave benefits will be issued; and 189 3. How such wages or other income will be calculated. 190 (b) If the family leave benefits are subject to offsets for 191 wages or other income received or for which the insured may be 192 eligible, the policy must specify all such wages or other income 193 that may be set off and the circumstances under which it may be 194 offset. 195 (9) PERMISSIBLE LIMITATIONS, EXCLUSIONS, OR REDUCTIONS. 196 Eligibility for family leave benefits under this section may be 197 limited, excluded, or reduced, but any limitation, exclusion, or 198 reduction must be specified in the policy. Permissible 199 limitations, exclusions, or reductions may include, but are not 200 limited to, any of the following reasons: 201 (a) For any period of family leave wherein the required 202 notice and medical certification as prescribed in the policy has 203 not been provided; 204 (b) For any family leave related to a serious health 205 condition or other harm to a family member brought about by the 206 willful intention of the employee; 207 (c) For any period of family leave during which the 208 employee performed work for remuneration or profit; 209 (d) For any period of family leave for which the employee 210 is eligible to receive from his or her employer, or from a fund 211 to which the employer has contributed, remuneration or 212 maintenance; 213 (e) For any period of family leave in which the employee is 214 eligible to receive benefits under any other statutory program 215 or employer-sponsored program, including, but not limited to, 216 unemployment insurance benefits, workers’ compensation benefits, 217 statutory disability benefits, statutory paid leave benefits, or 218 any paid time off or employer’s paid leave policy; 219 (f) For any period of family leave commencing before the 220 employee becomes eligible for family leave benefits under the 221 policy; or 222 (g) For periods of family leave where more than one person 223 seeks family leave for the same family member. 224 (10) PAYMENT OF FAMILY LEAVE BENEFITS.—Family leave 225 benefits provided under this section must be paid periodically 226 and promptly, except as to a contested period of family leave 227 and subject to any of the limitations, exclusions, or reductions 228 under subsection (9). 229 (11) INSURANCE POLICY.— 230 (a) Rates for policies or riders providing paid family 231 leave benefits must be calculated pursuant to s. 627.062. 232 (b) A policy issued pursuant to this section may offer 233 coverage for paid family leave benefits or may offer paid family 234 leave benefits as a rider to a policy of disability income 235 insurance. 236 (12) RULEMAKING.—The commission may adopt rules to 237 administer this section. 238 Section 6. This act shall take effect upon becoming a law.