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A bill to be entitled

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An act relating to insurance; amending s. 624.4211, F.S.;

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increasing the maximum amounts of administrative fines

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that may be imposed upon an insurer by the Office of

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Insurance Regulation for nonwillful and willful violations

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of an order or rule of the office or any provision of the

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Florida Insurance Code; authorizing the office to impose a

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fine for each day of noncompliance up to a maximum amount;

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providing factors to consider when determining the amount

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of the fine; amending s. 626.9521, F.S.; increasing that

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maximum amounts of fines that may be imposed by the office

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for nonwillful and willful violations of state law

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regarding unfair methods of competition and unfair or

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deceptive acts or practices related to insurance;

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providing an effective date.

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Be It Enacted by the Legislature of the State of Florida:

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     Section 1.  Subsections (2) and (3) of section 624.4211,

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Florida Statutes, are amended, and subsections (5) and (6) are

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added to that section, to read:

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     624.4211  Administrative fine in lieu of suspension or

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revocation.--

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     (2) With respect to any nonwillful violation, such fine may

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shall not exceed $25,000 $2,500 per violation. In no event shall

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such fine exceed an aggregate amount of $10,000 for all

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nonwillful violations arising out of the same action. If When an

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insurer discovers a nonwillful violation, the insurer shall

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correct the violation and, if restitution is due, make

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restitution to all affected persons. Such restitution shall

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include interest at 12 percent per year from either the date of

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the violation or the date of inception of the affected person's

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policy, at the insurer's option. The restitution may be a credit

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against future premiums due provided that the interest

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accumulates shall accumulate until the premiums are due. If the

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amount of restitution due to any person is $50 or more and the

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insurer wishes to credit it against future premiums, it shall

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notify such person that she or he may receive a check instead of

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a credit. If the credit is on a policy which is not renewed, the

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insurer shall pay the restitution to the person to whom it is

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due.

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     (3)  With respect to any knowing and willful violation of a

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lawful order or rule of the office or commission or a provision

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of this code, the office may impose a fine upon the insurer in an

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amount not to exceed $100,000 $20,000 for each such violation. In

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no event shall such fine exceed an aggregate amount of $100,000

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for all knowing and willful violations arising out of the same

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action. In addition to such fines, the such insurer shall make

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restitution when due in accordance with the provisions of

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subsection (2).

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     (5) The office may impose an administrative fine for each

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day the insurer is not in compliance with the Florida Insurance

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Code up to a maximum of $25,000 per violation per day.

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     (6) In determining the amount of the fine, the office shall

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consider:

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     (a) The degree of consumer harm caused or potentially

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caused by the violation;

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     (b) Whether the violation constitutes an immediate danger

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to the public;

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     (c) Whether the violation is a repeat violation or similar

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to past violations by the insurer;

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     (d) The impact on the solvency of the insurer;

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     (e) The premium volume of the company; and

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     (f) The affect fining the company will have on the

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insurer's compliance with the Florida Insurance Code.

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     Section 2.  Subsection (2) of section 626.9521, Florida

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Statutes, is amended to read:

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     626.9521  Unfair methods of competition and unfair or

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deceptive acts or practices prohibited; penalties.--

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     (2)  Any person who violates any provision of this part

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shall be subject to a fine in an amount not greater than $25,000

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$2,500 for each nonwillful violation and not greater than

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$100,000 $20,000 for each willful violation. Fines under this

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subsection may not exceed an aggregate amount of $10,000 for all

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nonwillful violations arising out of the same action or an

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aggregate amount of $100,000 for all willful violations arising

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out of the same action. The fines authorized by this subsection

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may be imposed in addition to any other applicable penalty.

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     Section 3.  This act shall take effect July 1, 2008.