CODING: Words stricken are deletions; words underlined are additions.
HOUSE AMENDMENT
hbd-032 Bill No. CS for SB 1362
Amendment No. ___ (for drafter's use only)
CHAMBER ACTION
Senate House
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5 ORIGINAL STAMP BELOW
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11 Representative(s) Brown offered the following:
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13 Amendment (with title amendment)
14 On page 8, between lines 4 and 5,
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16 insert:
17 Section 5. Paragraph (o) of subsection (1) of section
18 626.9541, Florida Statutes, is amended to read:
19 626.9541 Unfair methods of competition and unfair or
20 deceptive acts or practices defined.--
21 (1) UNFAIR METHODS OF COMPETITION AND UNFAIR OR
22 DECEPTIVE ACTS.--The following are defined as unfair methods
23 of competition and unfair or deceptive acts or practices:
24 (o) Illegal dealings in premiums; excess or reduced
25 charges for insurance.--
26 1. Knowingly collecting any sum as a premium or charge
27 for insurance, which is not then provided, or is not in due
28 course to be provided, subject to acceptance of the risk by
29 the insurer, by an insurance policy issued by an insurer as
30 permitted by this code.
31 2. Knowingly collecting as a premium or charge for
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hbd0022 03:03 pm 01362-0005-434325
HOUSE AMENDMENT
hbd-032 Bill No. CS for SB 1362
Amendment No. ___ (for drafter's use only)
1 insurance any sum in excess of or less than the premium or
2 charge applicable to such insurance, in accordance with the
3 applicable classifications and rates as filed with and
4 approved by the department, and as specified in the policy;
5 or, in cases when classifications, premiums, or rates are not
6 required by this code to be so filed and approved, premiums
7 and charges in excess of or less than those specified in the
8 policy and as fixed by the insurer. This provision shall not
9 be deemed to prohibit the charging and collection, by surplus
10 lines agents licensed under part VIII of this chapter, of the
11 amount of applicable state and federal taxes, or fees as
12 authorized by s. 626.916(4), in addition to the premium
13 required by the insurer or the charging and collection, by
14 licensed agents, of the exact amount of any discount or other
15 such fee charged by a credit card facility in connection with
16 the use of a credit card, as authorized by subparagraph (q)3.,
17 in addition to the premium required by the insurer. This
18 subparagraph shall not be construed to prohibit collection of
19 a premium for a universal life or a variable or indeterminate
20 value insurance policy made in accordance with the terms of
21 the contract. This subparagraph shall not be construed to
22 prohibit a licensed general lines agent from collecting a
23 nominal charge for the preparation, or subsequent servicing,
24 of motor vehicle insurance policies if those services are
25 provided by the licensed agent, at the request of the insured.
26 Such charge is not insurance and not a part of the premium
27 rates or charges filed with the Department of Insurance by the
28 insurer.
29 3.a. Imposing or requesting an additional premium for
30 a policy of motor vehicle liability, personal injury
31 protection, medical payment, or collision insurance or any
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HOUSE AMENDMENT
hbd-032 Bill No. CS for SB 1362
Amendment No. ___ (for drafter's use only)
1 combination thereof or refusing to renew the policy solely
2 because the insured was involved in a motor vehicle accident
3 unless the insurer's file contains information from which the
4 insurer in good faith determines that the insured was
5 substantially at fault in the accident.
6 b. An insurer which imposes and collects such a
7 surcharge or which refuses to renew such policy shall, in
8 conjunction with the notice of premium due or notice of
9 nonrenewal, notify the named insured that he or she is
10 entitled to reimbursement of such amount or renewal of the
11 policy under the conditions listed below and will subsequently
12 reimburse him or her or renew the policy, if the named insured
13 demonstrates that the operator involved in the accident was:
14 (I) Lawfully parked;
15 (II) Reimbursed by, or on behalf of, a person
16 responsible for the accident or has a judgment against such
17 person;
18 (III) Struck in the rear by another vehicle headed in
19 the same direction and was not convicted of a moving traffic
20 violation in connection with the accident;
21 (IV) Hit by a "hit-and-run" driver, if the accident
22 was reported to the proper authorities within 24 hours after
23 discovering the accident;
24 (V) Not convicted of a moving traffic violation in
25 connection with the accident, but the operator of the other
26 automobile involved in such accident was convicted of a moving
27 traffic violation;
28 (VI) Finally adjudicated not to be liable by a court
29 of competent jurisdiction;
30 (VII) In receipt of a traffic citation which was
31 dismissed or nolle prossed; or
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HOUSE AMENDMENT
hbd-032 Bill No. CS for SB 1362
Amendment No. ___ (for drafter's use only)
1 (VIII) Not at fault as evidenced by a written
2 statement from the insured establishing facts demonstrating
3 lack of fault which are not rebutted by information in the
4 insurer's file from which the insurer in good faith determines
5 that the insured was substantially at fault.
6 c. In addition to the other provisions of this
7 subparagraph, an insurer may not fail to renew a policy if the
8 insured has had only one accident in which he or she was at
9 fault within the current 3-year period. However, an insurer
10 may nonrenew a policy for reasons other than accidents in
11 accordance with s. 627.728. This subparagraph does not
12 prohibit nonrenewal of a policy under which the insured has
13 had three or more accidents, regardless of fault, during the
14 most recent 3-year period.
15 4. Imposing or requesting an additional premium for,
16 or refusing to renew, a policy for motor vehicle insurance
17 solely because the insured committed a noncriminal traffic
18 infraction as described in s. 318.14 unless the infraction is:
19 a. A second infraction committed within an 18-month
20 period, or a third or subsequent infraction committed within a
21 36-month period.
22 b. A violation of s. 316.183, when such violation is a
23 result of exceeding the lawful speed limit by more than 15
24 miles per hour.
25 5. Upon the request of the insured, the insurer and
26 licensed agent shall supply to the insured the complete proof
27 of fault or other criteria which justifies the additional
28 charge or cancellation.
29 6. No insurer shall impose or request an additional
30 premium for motor vehicle insurance, cancel or refuse to issue
31 a policy, or refuse to renew a policy because the insured or
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HOUSE AMENDMENT
hbd-032 Bill No. CS for SB 1362
Amendment No. ___ (for drafter's use only)
1 the applicant is a handicapped or physically disabled person,
2 so long as such handicap or physical disability does not
3 substantially impair such person's mechanically assisted
4 driving ability.
5 7. No insurer may cancel or otherwise terminate any
6 insurance contract or coverage, or require execution of a
7 consent to rate endorsement, during the stated policy term for
8 the purpose of offering to issue, or issuing, a similar or
9 identical contract or coverage to the same insured with the
10 same exposure at a higher premium rate or continuing an
11 existing contract or coverage with the same exposure at an
12 increased premium.
13 8. No insurer may issue a nonrenewal notice on any
14 insurance contract or coverage, or require execution of a
15 consent to rate endorsement, for the purpose of offering to
16 issue, or issuing, a similar or identical contract or coverage
17 to the same insured at a higher premium rate or continuing an
18 existing contract or coverage at an increased premium without
19 meeting any applicable notice requirements.
20 9. No insurer shall, with respect to premiums charged
21 for motor vehicle insurance, unfairly discriminate solely on
22 the basis of age, sex, marital status, or scholastic
23 achievement.
24 10. Imposing or requesting an additional premium for
25 motor vehicle comprehensive or uninsured motorist coverage
26 solely because the insured was involved in a motor vehicle
27 accident or was convicted of a moving traffic violation.
28 11. No insurer shall cancel or issue a nonrenewal
29 notice on any insurance policy or contract without complying
30 with any applicable cancellation or nonrenewal provision
31 required under the Florida Insurance Code.
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HOUSE AMENDMENT
hbd-032 Bill No. CS for SB 1362
Amendment No. ___ (for drafter's use only)
1 12. No insurer shall impose or request an additional
2 premium, cancel a policy, or issue a nonrenewal notice on any
3 insurance policy or contract because of any traffic infraction
4 when adjudication has been withheld and no points have been
5 assessed pursuant to s. 318.14(9) and (10). However, this
6 subparagraph does not apply to traffic infractions involving
7 accidents in which the insurer has incurred a loss due to the
8 fault of the insured.
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11 ================ T I T L E A M E N D M E N T ===============
12 And the title is amended as follows:
13 On page 8, line 28, after the semicolon,
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15 insert:
16 amending s. 626.9541, F.S.; specifying that
17 certain charges collected by an insurer
18 relating to motor vehicle insurance policies
19 are not prohibited under unfair methods of
20 competition and unfair or deceptive acts or
21 practices restrictions; specifying that such
22 charges are not insurance and not part of
23 certain premium rates or charges;
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File original & 9 copies 03/18/02
hbd0022 03:03 pm 01362-0005-434325