Bill Amendment: FL S0312 | 2023 | Regular Session

NOTE: For additional amemendments please see the Bill Drafting List

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Bill Title: Insurance

Status: 2023-06-16 - Chapter No. 2023-216 [S0312 Detail]

Download: Florida-2023-S0312-Senate_Committee_Amendment_705828.html

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       Florida Senate - 2023                        COMMITTEE AMENDMENT
       Bill No. SB 312
       
       
       
       
       
       
                                Ì705828EÎ705828                         
       
                              LEGISLATIVE ACTION                        
                    Senate             .             House              
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       The Committee on Banking and Insurance (Collins) recommended the
       following:
       
    1         Senate Amendment (with title amendment)
    2  
    3         Delete everything after the enacting clause
    4  and insert:
    5         Section 1. Section 626.7851, Florida Statutes, is amended
    6  to read:
    7         626.7851 Requirement as to knowledge, experience, or
    8  instruction.—An applicant for a license as a life agent, except
    9  for a chartered life underwriter (CLU), shall not be qualified
   10  or licensed unless within the 4 years immediately preceding the
   11  date the application for a license is filed with the department
   12  he or she has:
   13         (1) Successfully completed 30 40 hours of coursework in
   14  life insurance, annuities, and variable contracts approved by
   15  the department, 3 hours of which shall be on the subject matter
   16  of ethics. Courses must include instruction on the subject
   17  matter of unauthorized entities engaging in the business of
   18  insurance;
   19         (2) Successfully completed a minimum of 60 hours of
   20  coursework in multiple areas of insurance, which included life
   21  insurance, annuities, and variable contracts, approved by the
   22  department, 3 hours of which shall be on the subject matter of
   23  ethics. Courses must include instruction on the subject matter
   24  of unauthorized entities engaging in the business of insurance;
   25         (3) Earned or maintained an active designation as Chartered
   26  Financial Consultant (ChFC) from the American College of
   27  Financial Services; or Fellow, Life Management Institute (FLMI)
   28  from the Life Management Institute;
   29         (4) Held an active license in life insurance in another
   30  state. This provision may not be used unless the other state
   31  grants reciprocal treatment to licensees formerly licensed in
   32  the state; or
   33         (5) Been employed by the department or office for at least
   34  1 year, full time in life insurance regulatory matters and who
   35  was not terminated for cause, and application for examination is
   36  made within 4 years after the date of termination of his or her
   37  employment with the department or office.
   38  
   39  Prelicensure coursework is not required for an applicant who is
   40  a member or veteran of the United States Armed Forces or the
   41  spouse of such a member or veteran. A qualified individual must
   42  provide a copy of a military identification card, military
   43  dependent identification card, military service record, military
   44  personnel file, veteran record, discharge paper, or separation
   45  document that indicates such member is currently in good
   46  standing or such veteran is honorably discharged.
   47         Section 2. Paragraph (h) of subsection (1) of section
   48  626.9541, Florida Statutes, is amended to read:
   49         626.9541 Unfair methods of competition and unfair or
   50  deceptive acts or practices defined.—
   51         (1) UNFAIR METHODS OF COMPETITION AND UNFAIR OR DECEPTIVE
   52  ACTS.—The following are defined as unfair methods of competition
   53  and unfair or deceptive acts or practices:
   54         (h) Unlawful rebates.—
   55         1. Except as otherwise expressly provided by law, or in an
   56  applicable filing with the office, knowingly:
   57         a. Permitting, or offering to make, or making, any contract
   58  or agreement as to such contract other than as plainly expressed
   59  in the insurance contract issued thereon;
   60         b. Paying, allowing, or giving, or offering to pay, allow,
   61  or give, directly or indirectly, as inducement to such insurance
   62  contract, any unlawful rebate of premiums payable on the
   63  contract, any special favor or advantage in the dividends or
   64  other benefits thereon, or any valuable consideration or
   65  inducement whatever not specified in the contract;
   66         c. Giving, selling, or purchasing, or offering to give,
   67  sell, or purchase, as inducement to such insurance contract or
   68  in connection therewith, any stocks, bonds, or other securities
   69  of any insurance company or other corporation, association, or
   70  partnership, or any dividends or profits accrued thereon, or
   71  anything of value whatsoever not specified in the insurance
   72  contract.
   73         2. Nothing in paragraph (g) or subparagraph 1. of this
   74  paragraph shall be construed as including within the definition
   75  of discrimination or unlawful rebates:
   76         a. In the case of any contract of life insurance or life
   77  annuity, paying bonuses to all policyholders or otherwise
   78  abating their premiums in whole or in part out of surplus
   79  accumulated from nonparticipating insurance; provided that any
   80  such bonuses or abatement of premiums is fair and equitable to
   81  all policyholders and for the best interests of the company and
   82  its policyholders.
   83         b. In the case of life insurance policies issued on the
   84  industrial debit plan, making allowance to policyholders who
   85  have continuously for a specified period made premium payments
   86  directly to an office of the insurer in an amount which fairly
   87  represents the saving in collection expenses.
   88         c. Readjustment of the rate of premium for a group
   89  insurance policy based on the loss or expense thereunder, at the
   90  end of the first or any subsequent policy year of insurance
   91  thereunder, which may be made retroactive only for such policy
   92  year.
   93         d. Issuance of life insurance policies or annuity contracts
   94  at rates less than the usual rates of premiums for such policies
   95  or contracts, as group insurance or employee insurance as
   96  defined in this code.
   97         e. Issuing life or disability insurance policies on a
   98  salary savings, bank draft, preauthorized check, payroll
   99  deduction, or other similar plan at a reduced rate reasonably
  100  related to the savings made by the use of such plan.
  101         3.a. No title insurer, or any member, employee, attorney,
  102  agent, or agency thereof, shall pay, allow, or give, or offer to
  103  pay, allow, or give, directly or indirectly, as inducement to
  104  title insurance, or after such insurance has been effected, any
  105  rebate or abatement of the premium or any other charge or fee,
  106  or provide any special favor or advantage, or any monetary
  107  consideration or inducement whatever.
  108         b. Nothing in this subparagraph shall be construed as
  109  prohibiting the payment of fees to attorneys at law duly
  110  licensed to practice law in the courts of this state, for
  111  professional services, or as prohibiting the payment of earned
  112  portions of the premium to duly appointed agents or agencies who
  113  actually perform services for the title insurer. Nothing in this
  114  subparagraph shall be construed as prohibiting a rebate or
  115  abatement of an attorney fee charged for professional services,
  116  or that portion of the premium that is not required to be
  117  retained by the insurer pursuant to s. 627.782(1), or any other
  118  agent charge or fee to the person responsible for paying the
  119  premium, charge, or fee.
  120         c. No insured named in a policy, or any other person
  121  directly or indirectly connected with the transaction involving
  122  the issuance of such policy, including, but not limited to, any
  123  mortgage broker, real estate broker, builder, or attorney, any
  124  employee, agent, agency, or representative thereof, or any other
  125  person whatsoever, shall knowingly receive or accept, directly
  126  or indirectly, any rebate or abatement of any portion of the
  127  title insurance premium or of any other charge or fee or any
  128  monetary consideration or inducement whatsoever, except as set
  129  forth in sub-subparagraph b.; provided, in no event shall any
  130  portion of the attorney fee, any portion of the premium that is
  131  not required to be retained by the insurer pursuant to s.
  132  627.782(1), any agent charge or fee, or any other monetary
  133  consideration or inducement be paid directly or indirectly for
  134  the referral of title insurance business.
  135         4.a. Paragraph (g) or subparagraph 1. may not be construed
  136  as including within the definition of discrimination or unlawful
  137  rebates the offer or provision by an insurer or an agent of the
  138  insurer, including by or through employees, affiliates, or
  139  third-party representatives, of value-added products or services
  140  at no or reduced cost when such products or services are not
  141  specified in the insurance policy, if the product or service
  142  relates to the insurance coverage and is primarily designed to
  143  do one or more of the following:
  144         (I) Provide loss mitigation or loss control;
  145         (II) Reduce claim costs or claim settlement costs;
  146         (III) Provide education about liability risks or risk of
  147  loss to persons or property;
  148         (IV) Monitor or assess risk, identify sources of risk, or
  149  develop strategies for eliminating or reducing risk;
  150         (V) Enhance health;
  151         (VI) Enhance financial wellness through items such as
  152  education or financial planning services;
  153         (VII) Provide post-loss services;
  154         (VIII) Incentivize behavioral changes to improve the health
  155  or reduce the risk of death or disability of a policyholder,
  156  potential policyholder, certificateholder, potential
  157  certificateholder, insured, potential insured, or applicant; or
  158         (IX) Assist in the administration of employee or retiree
  159  benefit insurance coverage.
  160         b. The cost to the insurer or agent offering the product or
  161  service to a customer must be reasonable in comparison to the
  162  customer’s premiums or insurance coverage for the policy class.
  163         c. If the insurer or agent is providing the product or
  164  service, the insurer or agent must ensure that the customer is
  165  provided with contact information to assist the customer with
  166  questions regarding the product or service.
  167         d. The availability of the product or service must be based
  168  on documented objective evidence, and the product or service
  169  must be offered in a manner that is not unfairly discriminatory.
  170  The documented evidence must be maintained by the insurer or
  171  agent and produced upon request by the office or the department.
  172         e. If an insurer or agent has a good faith belief, but does
  173  not have sufficient evidence to demonstrate, that the product or
  174  service meets any of the criteria in sub-sub-subparagraphs
  175  a.(I)-(IX), the insurer or agent may provide the product or
  176  service in a manner that is not unfairly discriminatory as part
  177  of a pilot or testing program for up to 1 year. An insurer or
  178  agent must notify the office or department, as applicable, of
  179  such pilot or testing program offered to consumers in this state
  180  before commencing the program. The insurer or agent may commence
  181  the program unless the office or department, as applicable,
  182  objects to the program within 21 days after receiving the
  183  notice.
  184         f. An insurer, agent, or representative thereof may not
  185  offer or provide insurance as an inducement to the purchase of
  186  another policy or otherwise use the words “free,” “no cost,” or
  187  similar words in an advertisement.
  188         g. The commission may adopt rules to administer this
  189  subparagraph to ensure consumer protection. Such rules,
  190  consistent with applicable law, may address, among other issues,
  191  consumer data protections and privacy, consumer disclosure, and
  192  unfair discrimination.
  193         Section 3. This act shall take effect July 1, 2023.
  194  
  195  ================= T I T L E  A M E N D M E N T ================
  196  And the title is amended as follows:
  197         Delete everything before the enacting clause
  198  and insert:
  199                        A bill to be entitled                      
  200         An act relating to insurance; amending s. 626.7851,
  201         F.S.; revising a minimum coursework qualification for
  202         licensure as a life agent; amending s. 626.9541, F.S.;
  203         providing that certain restrictions against unfair
  204         discrimination or unlawful rebates do not include
  205         value-added products or services offered or provided
  206         by insurers or their agents if certain conditions are
  207         met; providing requirements for and restrictions on
  208         insurers or agents offering or providing such products
  209         or services; authorizing insurers or agents to provide
  210         such products or services as part of a pilot or
  211         testing program under certain circumstances;
  212         authorizing the Financial Services Commission to adopt
  213         rules; providing an effective date.