Florida Senate - 2016 SB 1036
By Senator Brandes
22-00805D-16 20161036__
1 A bill to be entitled
2 An act relating to automobile insurance; amending s.
3 627.311, F.S.; authorizing the Florida Automobile
4 Joint Underwriting Association and a joint
5 underwriting plan approved by the Office of Insurance
6 Regulation to cancel personal lines or commercial
7 policies within a specified time for nonpayment of
8 premium due to certain reasons; prohibiting an insured
9 from cancelling a policy or binder within a specified
10 time except under certain conditions; amending s.
11 627.7283, F.S.; authorizing an insured who cancels a
12 policy to apply the unearned portion of any premium
13 paid to unpaid balances of other policies with the
14 same insurer or insurer group; amending s. 627.7295,
15 F.S.; updating applicability language to include a
16 reference to recurring credit card or debit card
17 payments; amending s. 627.736, F.S.; requiring that a
18 certain standard form be approved by the office and
19 adopted by the Financial Services Commission, rather
20 than approved by the office or adopted by the
21 commission; revising standards for compliance for
22 specified billings for medical services; amending s.
23 627.739, F.S.; revising applicability; providing a
24 limitation to an amount of expenses and losses
25 applicable to a deductible related to personal injury
26 protection benefits under a certain condition;
27 amending s. 627.744, F.S.; authorizing an insurer to
28 opt out of the preinsurance inspection of private
29 passenger motor vehicles and to establish its own
30 preinsurance inspection program if it files a certain
31 manual rule with the office; providing an effective
32 date.
33
34 Be It Enacted by the Legislature of the State of Florida:
35
36 Section 1. Paragraph (m) is added to subsection (3) of
37 section 627.311, Florida Statutes, to read:
38 627.311 Joint underwriters and joint reinsurers; public
39 records and public meetings exemptions.—
40 (3) The office may, after consultation with insurers
41 licensed to write automobile insurance in this state, approve a
42 joint underwriting plan for purposes of equitable apportionment
43 or sharing among insurers of automobile liability insurance and
44 other motor vehicle insurance, as an alternate to the plan
45 required in s. 627.351(1). All insurers authorized to write
46 automobile insurance in this state shall subscribe to the plan
47 and participate therein. The plan shall be subject to continuous
48 review by the office which may at any time disapprove the entire
49 plan or any part thereof if it determines that conditions have
50 changed since prior approval and that in view of the purposes of
51 the plan changes are warranted. Any disapproval by the office
52 shall be subject to the provisions of chapter 120. The Florida
53 Automobile Joint Underwriting Association is created under the
54 plan. The plan and the association:
55 (m) May cancel personal lines or commercial policies issued
56 by the plan within the first 60 days after the effective date of
57 the policy or binder for nonpayment of premium if the check
58 issued for payment of the premium is dishonored for any reason
59 or if any other form of payment is rejected or deemed invalid.
60 An insured may not cancel a policy or binder within the first 90
61 days after its effective date, or within a lesser period as
62 required by the plan, except:
63 1. Upon total destruction of the insured motor vehicle;
64 2. Upon transfer of ownership of the insured motor vehicle;
65 or
66 3. After purchase of another policy or binder covering the
67 motor vehicle that was covered under the policy being canceled.
68 Section 2. Section 627.7283, Florida Statutes, is amended
69 to read:
70 627.7283 Cancellation; return of unearned premium.—
71 (1) If the insured cancels a policy of motor vehicle
72 insurance, the insurer must mail or electronically transfer the
73 unearned portion of any premium paid within 30 days after the
74 effective date of the policy cancellation or receipt of notice
75 or request for cancellation, whichever is later. This
76 requirement applies to a cancellation initiated by an insured
77 for any reason. However, the insured may apply the unearned
78 portion of any premium paid to unpaid balances of other policies
79 with the same insurer or insurer group.
80 (2) If an insurer cancels a policy of motor vehicle
81 insurance, the insurer must mail or electronically transfer the
82 unearned premium portion of any premium within 15 days after the
83 effective date of the policy cancellation. However, the insured
84 may apply the unearned portion of any premium paid to unpaid
85 balances of other policies with the same insurer or insurer
86 group.
87 (3) If the unearned premium is not mailed, or
88 electronically transferred, or applied to the unpaid balance of
89 other policies within the applicable period, the insurer must
90 pay to the insured 8 percent interest on the amount due. If the
91 unearned premium is not mailed or electronically transferred
92 within 45 days after the applicable period, the insured may
93 bring an action against the insurer pursuant to s. 624.155.
94 (4) If the insured cancels, the insurer may retain up to 10
95 percent of the unearned premium and must refund at least 90
96 percent of the unearned premium. If the insurer cancels, the
97 insurer must refund 100 percent of the unearned premium.
98 Cancellation is without prejudice to any claim originating prior
99 to the effective date of the cancellation. For purposes of this
100 section, unearned premiums must be computed on a pro rata basis.
101 (5) The insurer must refund 100 percent of the unearned
102 premium if the insured is a servicemember, as defined in s.
103 250.01, who cancels because he or she is called to active duty
104 or transferred by the United States Armed Forces to a location
105 where the insurance is not required. The insurer may require a
106 servicemember to submit either a copy of the official military
107 orders or a written verification signed by the servicemember’s
108 commanding officer to support the refund authorized under this
109 subsection. If the insurer cancels, the insurer must refund 100
110 percent of the unearned premium. Cancellation is without
111 prejudice to any claim originating prior to the effective date
112 of the cancellation. For purposes of this section, unearned
113 premiums must be computed on a pro rata basis.
114 Section 3. Subsection (7) of section 627.7295, Florida
115 Statutes, is amended to read:
116 627.7295 Motor vehicle insurance contracts.—
117 (7) A policy of private passenger motor vehicle insurance
118 or a binder for such a policy may be initially issued in this
119 state only if, before the effective date of such binder or
120 policy, the insurer or agent has collected from the insured an
121 amount equal to 2 months’ premium. An insurer, agent, or premium
122 finance company may not, directly or indirectly, take any action
123 resulting in the insured having paid from the insured’s own
124 funds an amount less than the 2 months’ premium required by this
125 subsection. This subsection applies without regard to whether
126 the premium is financed by a premium finance company or is paid
127 pursuant to a periodic payment plan of an insurer or an
128 insurance agent. This subsection does not apply if an insured or
129 member of the insured’s family is renewing or replacing a policy
130 or a binder for such policy written by the same insurer or a
131 member of the same insurer group. This subsection does not apply
132 to an insurer that issues private passenger motor vehicle
133 coverage primarily to active duty or former military personnel
134 or their dependents. This subsection does not apply if all
135 policy payments are paid pursuant to a payroll deduction plan,
136 or an automatic electronic funds transfer payment plan from the
137 policyholder, or a recurring credit card or debit card agreement
138 with the insurer. This subsection and subsection (4) do not
139 apply if all policy payments to an insurer are paid pursuant to
140 an automatic electronic funds transfer payment plan from an
141 agent, a managing general agent, or a premium finance company
142 and if the policy includes, at a minimum, personal injury
143 protection pursuant to ss. 627.730-627.7405; motor vehicle
144 property damage liability pursuant to s. 627.7275; and bodily
145 injury liability in at least the amount of $10,000 because of
146 bodily injury to, or death of, one person in any one accident
147 and in the amount of $20,000 because of bodily injury to, or
148 death of, two or more persons in any one accident. This
149 subsection and subsection (4) do not apply if an insured has had
150 a policy in effect for at least 6 months, the insured’s agent is
151 terminated by the insurer that issued the policy, and the
152 insured obtains coverage on the policy’s renewal date with a new
153 company through the terminated agent.
154 Section 4. Paragraph (d) of subsection (5) of section
155 627.736, Florida Statutes, is amended to read:
156 627.736 Required personal injury protection benefits;
157 exclusions; priority; claims.—
158 (5) CHARGES FOR TREATMENT OF INJURED PERSONS.—
159 (d) All statements and bills for medical services rendered
160 by a physician, hospital, clinic, or other person or institution
161 shall be submitted to the insurer on a properly completed
162 Centers for Medicare and Medicaid Services (CMS) 1500 form, UB
163 92 forms, or any other standard form approved by the office and
164 or adopted by the commission for purposes of this paragraph. All
165 billings for such services rendered by providers must, to the
166 extent applicable, comply with the CMS 1500 form instructions,
167 the American Medical Association CPT Editorial Panel, and the
168 Healthcare Common Procedure Coding System (HCPCS); and must
169 follow the Physicians’ Current Procedural Terminology (CPT), the
170 HCPCS in effect for the year in which services are rendered, and
171 the International Classification of Diseases (ICD) adopted by
172 the United States Department of Health and Human Services for
173 the year in which services are rendered follow the Physicians’
174 Current Procedural Terminology (CPT) or Healthcare Correct
175 Procedural Coding System (HCPCS), or ICD-9 in effect for the
176 year in which services are rendered and comply with the CMS 1500
177 form instructions, the American Medical Association CPT
178 Editorial Panel, and the HCPCS. All providers, other than
179 hospitals, must include on the applicable claim form the
180 professional license number of the provider in the line or space
181 provided for “Signature of Physician or Supplier, Including
182 Degrees or Credentials.” In determining compliance with
183 applicable CPT and HCPCS coding, guidance shall be provided by
184 the Physicians’ Current Procedural Terminology (CPT) or the
185 Healthcare Correct Procedural Coding System (HCPCS) in effect
186 for the year in which services were rendered, the Office of the
187 Inspector General, Physicians Compliance Guidelines, and other
188 authoritative treatises designated by rule by the Agency for
189 Health Care Administration. A statement of medical services may
190 not include charges for medical services of a person or entity
191 that performed such services without possessing the valid
192 licenses required to perform such services. For purposes of
193 paragraph (4)(b), an insurer is not considered to have been
194 furnished with notice of the amount of covered loss or medical
195 bills due unless the statements or bills comply with this
196 paragraph and are properly completed in their entirety as to all
197 material provisions, with all relevant information being
198 provided therein.
199 Section 5. Subsection (2) of section 627.739, Florida
200 Statutes, is amended to read:
201 627.739 Personal injury protection; optional limitations;
202 deductibles.—
203 (2) Insurers shall offer to each applicant and to each
204 policyholder, upon the renewal of an existing policy,
205 deductibles, in amounts of $250, $500, and $1,000. The
206 deductible amount must be applied to 100 percent of the expenses
207 and losses covered under personal injury protection benefits
208 coverage issued pursuant to described in s. 627.736. If an
209 insurer has elected to apply the schedule of maximum charges
210 authorized under this chapter, the amount of expenses and losses
211 applicable to the deductible will be limited to 100 percent of
212 such authorized reimbursement limitations or fee schedules.
213 After the deductible is met, each insured is eligible to receive
214 up to $10,000 in total benefits described in s. 627.736(1).
215 However, this subsection shall not be applied to reduce the
216 amount of any benefits received in accordance with s.
217 627.736(1)(c).
218 Section 6. Section 627.744, Florida Statutes, is amended to
219 read:
220 627.744 Required Preinsurance inspection of private
221 passenger motor vehicles.—
222 (1) A private passenger motor vehicle insurance policy
223 providing physical damage coverage, including collision or
224 comprehensive coverage, may not be issued in this state unless
225 the insurer has inspected the motor vehicle in accordance with
226 this section or has opted out of the inspection under this
227 section. An insurer opting out of the inspection must file a
228 manual rule with the office indicating that the insurer will not
229 be participating in the inspection program under this section
230 and will not require the preinsurance inspection of its
231 insureds’ motor vehicles. An insurer that files such a manual
232 rule with the office may establish its own preinsurance
233 inspection program.
234 (2) This section does not apply:
235 (a) To a policy for a policyholder who has been insured for
236 2 years or longer, without interruption, under a private
237 passenger motor vehicle policy that provides physical damage
238 coverage for any vehicle if the agent of the insurer verifies
239 the previous coverage.
240 (b) To a new, unused motor vehicle purchased or leased from
241 a licensed motor vehicle dealer or leasing company. The insurer
242 may require:
243 1. A bill of sale, buyer’s order, or lease agreement that
244 contains a full description of the motor vehicle; or
245 2. A copy of the title or registration that establishes
246 transfer of ownership from the dealer or leasing company to the
247 customer and a copy of the window sticker.
248
249 For the purposes of this paragraph, the physical damage coverage
250 on the motor vehicle may not be suspended during the term of the
251 policy due to the applicant’s failure to provide or the
252 insurer’s option not to require the documents. However, if the
253 insurer requires a document under this paragraph at the time the
254 policy is issued, payment of a claim may be conditioned upon the
255 receipt by the insurer of the required documents, and no
256 physical damage loss occurring after the effective date of the
257 coverage may be payable until the documents are provided to the
258 insurer.
259 (c) To a temporary substitute motor vehicle.
260 (d) To a motor vehicle which is leased for less than 6
261 months, if the insurer receives the lease or rental agreement
262 containing a description of the leased motor vehicle, including
263 its condition. Payment of a physical damage claim is conditioned
264 upon receipt of the lease or rental agreement.
265 (e) To a vehicle that is 10 years old or older, as
266 determined by reference to the model year.
267 (f) To any renewal policy.
268 (g) To a motor vehicle policy issued in a county with a
269 1988 estimated population of less than 500,000.
270 (h) To any other vehicle or policy exempted by rule of the
271 commission. The commission may base a rule under this paragraph
272 only on a determination that the likelihood of a fraudulent
273 physical damage claim is remote or that the inspection would
274 cause a serious hardship to the insurer or the applicant.
275 (i) When the insurer’s authorized inspection service has no
276 inspection facility either in the municipality in which the
277 automobile is principally garaged or within 10 miles of such
278 municipality.
279 (j) When the insured vehicle is insured under a
280 commercially rated policy that insures five or more vehicles.
281 (k) When an insurance producer is transferring a book of
282 business from one insurer to another.
283 (l) When an individual insured’s coverage is being
284 transferred and initiated by a producer to a new insurer.
285 (3) This subsection does not prohibit an insurer from
286 requiring a preinsurance inspection of any motor vehicle as a
287 condition of issuance of physical damage coverage.
288 (4) The inspection required by this section shall be
289 provided by the insurer or by a person or organization
290 authorized by the insurer. The applicant may be required to pay
291 the cost of the inspection, not to exceed $5. The inspection
292 shall be recorded on a form prescribed by the commission, and
293 the form or a copy shall be retained by the insurer with its
294 policy records for the insured. The insurer shall provide a copy
295 of the form to the insured upon request. Any inspection fee paid
296 directly by the applicant may not be considered part of the
297 premium. However, an insurer that provides the inspection at no
298 cost to the applicant may include the expense of the inspection
299 within a rate filing.
300 (5) The inspection shall include at least the following:
301 (a) Taking a physical imprint of the vehicle identification
302 number of the vehicle or otherwise recording the vehicle
303 identification number in a manner prescribed by the commission.
304 (b) Recording the presence of accessories required by the
305 commission to be recorded.
306 (c) Recording the locations of and a description of
307 existing damage to the vehicle.
308 (6) An insurer may defer an inspection for 30 calendar days
309 following the effective date of coverage for a new policy, but
310 not for a renewal policy, and for additional or replacement
311 vehicles to an existing policy, if an inspection at the time of
312 the request for coverage would create a serious inconvenience
313 for the applicant and such hardship is documented in the
314 insured’s policy record.
315 (7) The commission may, by rule, establish such procedures
316 and notice requirements that it finds necessary to implement
317 this section.
318 Section 7. This act shall take effect July 1, 2016.