CODING: Words stricken are deletions; words underlined are additions.
SENATE AMENDMENT
Bill No. CS for CS for SB 1436
Amendment No. ___ Barcode 915270
CHAMBER ACTION
Senate House
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11 Senator Futch moved the following amendment:
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13 Senate Amendment (with title amendment)
14 On page 100, line 7, through
15 page 102, line 27, delete those lines
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17 and insert:
18 Section 64. Paragraphs (h), (n), and (u) of subsection
19 (1) of section 626.9541, Florida Statutes, are amended to
20 read:
21 626.9541 Unfair methods of competition and unfair or
22 deceptive acts or practices defined.--
23 (1) UNFAIR METHODS OF COMPETITION AND UNFAIR OR
24 DECEPTIVE ACTS.--The following are defined as unfair methods
25 of competition and unfair or deceptive acts or practices:
26 (h) Unlawful rebates.--
27 1. Except as otherwise expressly provided by law, or
28 in an applicable filing with the department, knowingly:
29 a. Permitting, or offering to make, or making, any
30 contract or agreement as to such contract other than as
31 plainly expressed in the insurance contract issued thereon;
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SENATE AMENDMENT
Bill No. CS for CS for SB 1436
Amendment No. ___ Barcode 915270
1 b. Paying, allowing, or giving, or offering to pay,
2 allow, or give, directly or indirectly, as inducement to such
3 insurance contract, any unlawful rebate of premiums payable on
4 the contract, any special favor or advantage in the dividends
5 or other benefits thereon, or any valuable consideration or
6 inducement whatever not specified in the contract;
7 c. Giving, selling, or purchasing, or offering to
8 give, sell, or purchase, as inducement to such insurance
9 contract or in connection therewith, any stocks, bonds, or
10 other securities of any insurance company or other
11 corporation, association, or partnership, or any dividends or
12 profits accrued thereon, or anything of value whatsoever not
13 specified in the insurance contract.
14 2. Nothing in paragraph (g) or subparagraph 1. of this
15 paragraph shall be construed as including within the
16 definition of discrimination or unlawful rebates:
17 a. In the case of any contract of life insurance or
18 life annuity, paying bonuses to all policyholders or otherwise
19 abating their premiums in whole or in part out of surplus
20 accumulated from nonparticipating insurance; provided that any
21 such bonuses or abatement of premiums is fair and equitable to
22 all policyholders and for the best interests of the company
23 and its policyholders.
24 b. In the case of life insurance policies issued on
25 the industrial debit plan, making allowance to policyholders
26 who have continuously for a specified period made premium
27 payments directly to an office of the insurer in an amount
28 which fairly represents the saving in collection expenses.
29 c. Readjustment of the rate of premium for a group
30 insurance policy based on the loss or expense thereunder, at
31 the end of the first or any subsequent policy year of
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SENATE AMENDMENT
Bill No. CS for CS for SB 1436
Amendment No. ___ Barcode 915270
1 insurance thereunder, which may be made retroactive only for
2 such policy year.
3 d. Issuance of life insurance policies or annuity
4 contracts at rates less than the usual rates of premiums for
5 such policies or contracts, as group insurance or employee
6 insurance as defined in this code.
7 e. Issuing life or disability insurance policies on a
8 salary savings, bank draft, preauthorized check, payroll
9 deduction, or other similar plan at a reduced rate reasonably
10 related to the savings made by the use of such plan.
11 3.a. No title insurer, or any member, employee,
12 attorney, agent, agency, or solicitor thereof, shall pay,
13 allow, or give, or offer to pay, allow, or give, directly or
14 indirectly, as inducement to title insurance, or after such
15 insurance has been effected, any rebate or abatement of the
16 agent's, agency's, or title insurer's share of the premium or
17 any charge for related title services below the cost for
18 providing such services, or provide any special favor or
19 advantage, or any monetary consideration or inducement
20 whatever. Nothing herein contained shall preclude an
21 abatement in an attorney's fee charged for legal services.
22 b. Nothing in this subparagraph shall be construed as
23 prohibiting the payment of fees to attorneys at law duly
24 licensed to practice law in the courts of this state, for
25 professional services, or as prohibiting the payment of earned
26 portions of the premium to duly appointed agents or agencies
27 who actually perform services for the title insurer.
28 c. No insured named in a policy, or any other person
29 directly or indirectly connected with the transaction
30 involving the issuance of such policy, including, but not
31 limited to, any mortgage broker, real estate broker, builder,
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SENATE AMENDMENT
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Amendment No. ___ Barcode 915270
1 or attorney, any employee, agent, agency, or representative,
2 or solicitor thereof, or any other person whatsoever, shall
3 knowingly receive or accept, directly or indirectly, any
4 rebate or abatement of said charge, or any monetary
5 consideration or inducement, other than as set forth in
6 sub-subparagraph b.
7 (n) Free insurance prohibited.--
8 1. Advertising, offering, or providing free insurance
9 as an inducement to the purchase or sale of real or personal
10 property or of services directly or indirectly connected with
11 such real or personal property.
12 2. For the purposes of this paragraph, "free"
13 insurance is:
14 a. Insurance for which no identifiable and additional
15 charge is made to the purchaser of such real property,
16 personal property, or services.
17 b. Insurance for which an identifiable or additional
18 charge is made in an amount less than the cost of such
19 insurance as to the seller or other person, other than the
20 insurer, providing the same.
21 3. Subparagraphs 1. and 2. do not apply to:
22 a. Insurance of, loss of, or damage to the real or
23 personal property involved in any such sale or services, under
24 a policy covering the interests therein of the seller or
25 vendor.
26 b. Blanket disability insurance as defined in s.
27 627.659.
28 c. Credit life insurance or credit disability
29 insurance.
30 d. Any individual, isolated, nonrecurring unadvertised
31 transaction not in the regular course of business.
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SENATE AMENDMENT
Bill No. CS for CS for SB 1436
Amendment No. ___ Barcode 915270
1 e. Title insurance.
2 f. Any purchase agreement involving the purchase of a
3 cemetery lot or lots in which, under stated conditions, any
4 balance due is forgiven upon the death of the purchaser.
5 g. Life insurance, trip cancellation insurance, or
6 lost baggage insurance offered by a travel agency as part of a
7 travel package offered by and booked through the agency.
8 h. Private passenger auto insurance provided and paid
9 for by an entity licensed under s. 320.61, which is approved
10 by the department and determined by the department to be in
11 the public interest.
12 4. Using the word "free" or words which imply the
13 provision of insurance without a cost to describe life or
14 disability insurance, in connection with the advertising or
15 offering for sale of any kind of goods, merchandise, or
16 services.
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20 And the title is amended as follows:
21 On page 4, line 2, after the semicolon,
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23 insert:
24 providing an exception to the prohibition on
25 providing free insurance as an unfair method of
26 competition;
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