| 1 | A bill to be entitled |
| 2 | An act relating to prohibited free insurance practices; |
| 3 | amending s. 626.9541, F.S.; providing an additional |
| 4 | exclusion from a prohibition against free insurance for |
| 5 | certain communications equipment; providing a definition; |
| 6 | providing an effective date. |
| 7 |
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| 8 | Be It Enacted by the Legislature of the State of Florida: |
| 9 |
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| 10 | Section 1. Paragraph (n) of subsection (1) of section |
| 11 | 626.9541, Florida Statutes, is amended to read: |
| 12 | 626.9541 Unfair methods of competition and unfair or |
| 13 | deceptive acts or practices defined.-- |
| 14 | (1) UNFAIR METHODS OF COMPETITION AND UNFAIR OR DECEPTIVE |
| 15 | ACTS.--The following are defined as unfair methods of |
| 16 | competition and unfair or deceptive acts or practices: |
| 17 | (n) Free insurance prohibited.-- |
| 18 | 1. Advertising, offering, or providing free insurance as |
| 19 | an inducement to the purchase or sale of real or personal |
| 20 | property or of services directly or indirectly connected with |
| 21 | such real or personal property. |
| 22 | 2. For the purposes of this paragraph, "free" insurance |
| 23 | is: |
| 24 | a. Insurance for which no identifiable and additional |
| 25 | charge is made to the purchaser of such real property, personal |
| 26 | property, or services. |
| 27 | b. Insurance for which an identifiable or additional |
| 28 | charge is made in an amount less than the cost of such insurance |
| 29 | as to the seller or other person, other than the insurer, |
| 30 | providing the same. |
| 31 | 3. Subparagraphs 1. and 2. do not apply to: |
| 32 | a. Insurance of, loss of, or damage to the real or |
| 33 | personal property involved in any such sale or services, under a |
| 34 | policy covering the interests therein of the seller or vendor. |
| 35 | b. Blanket disability insurance as defined in s. 627.659. |
| 36 | c. Credit life insurance or credit disability insurance. |
| 37 | d. Any individual, isolated, nonrecurring unadvertised |
| 38 | transaction not in the regular course of business. |
| 39 | e. Title insurance. |
| 40 | f. Any purchase agreement involving the purchase of a |
| 41 | cemetery lot or lots in which, under stated conditions, any |
| 42 | balance due is forgiven upon the death of the purchaser. |
| 43 | g. Life insurance, trip cancellation insurance, or lost |
| 44 | baggage insurance offered by a travel agency as part of a travel |
| 45 | package offered by and booked through the agency. |
| 46 | h. Insurance covering communications equipment if the |
| 47 | person paying for the insurance: |
| 48 | (I)(A) Has an ongoing contractual interest or other |
| 49 | economic interest in the communications equipment; or |
| 50 | (B) Requires the communications equipment to deliver its |
| 51 | services; and |
| 52 | (II) Discloses the cost of the insurance at the time the |
| 53 | communications equipment is sold. |
| 54 |
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| 55 | For purposes of this sub-subparagraph, the term "communications |
| 56 | equipment" means handsets, pagers, or personal digital |
| 57 | assistants used to originate or receive communications signals |
| 58 | or service. |
| 59 | 4. Using the word "free" or words which imply the |
| 60 | provision of insurance without a cost to describe life or |
| 61 | disability insurance, in connection with the advertising or |
| 62 | offering for sale of any kind of goods, merchandise, or |
| 63 | services. |
| 64 | Section 2. This act shall take effect upon becoming a law. |