Florida Senate - 2019                                     SB 614
       By Senator Broxson
       1-01138-19                                             2019614__
    1                        A bill to be entitled                      
    2         An act relating to the Interstate Insurance Product
    3         Regulation Compact; amending s. 626.9933, F.S.;
    4         providing that this state prospectively opts out of
    5         all uniform standards adopted by the Interstate
    6         Insurance Product Regulation Commission involving
    7         annuity and disability income insurance products;
    8         amending s. 626.9934, F.S.; revising the compact
    9         standards adopted by this state; revising standards
   10         and amendments to standards that the state
   11         prospectively opts out of; deleting a provision
   12         construing certain opt-out authority under the
   13         compact; deleting a provision specifying uniform
   14         standards opted out of by this state; deleting a
   15         provision relating to applicability and construction
   16         of a certain exclusivity provision in the compact;
   17         providing an effective date.
   19  Be It Enacted by the Legislature of the State of Florida:
   21         Section 1. Section 626.9933, Florida Statutes, is amended
   22  to read:
   23         626.9933 Opt out from annuity, disability income, and long
   24  term care products standards.—Pursuant to Article VII of the
   25  Interstate Insurance Product Regulation Compact, adopted by s.
   26  626.9932 this act, this state prospectively opts out of all
   27  uniform standards adopted by the Interstate Insurance Product
   28  Regulation Commission involving annuity, disability income, and
   29  long-term care insurance products, and such opt out may not be
   30  treated as a material variance in the offer or acceptance of
   31  this state to participate in the compact.
   32         Section 2. Section 626.9934, Florida Statutes, is amended
   33  to read:
   34         626.9934 Effective date of compact standards; opt out of
   35  certain amendments opt out procedures; state law exemptions;
   36  legislative notice.—
   37         (1) Except as provided in s. 626.9933 and this section, all
   38  uniform standards adopted by the Interstate Insurance Product
   39  Regulation Commission as of March 9, 2019 March 1, 2013, are
   40  adopted by this state.
   41         (2) Notwithstanding subsections (3), (4), (5), and (6) of
   42  Article VII of the Interstate Insurance Product Regulation
   43  Compact as adopted by this act, This state prospectively opts
   44  out of any new uniform standard, or amendments to existing
   45  uniform standards, adopted by the Interstate Insurance Product
   46  Regulation Commission after March 9, 2019 March 1, 2013, if such
   47  amendments substantially alter or add to existing uniform
   48  standards adopted by this state pursuant to subsection (1),
   49  until such time as this state enacts legislation to adopt new
   50  uniform standards or amendments to existing standards adopted by
   51  the commission after March 9, 2019 March 1, 2013.
   52         (3) The authority under Article VII of the Interstate
   53  Insurance Product Regulation Compact to opt out of a uniform
   54  standard includes an order issued under chapter 120, the
   55  Administrative Procedure Act.
   56         (4) In addition to the uniform standards and amendments to
   57  uniform standards that the state opts out of pursuant to
   58  subsection (2), pursuant to subsections (4) and (5) of Article
   59  VII of the Interstate Insurance Product Regulation Compact, this
   60  state opts out of the following uniform standards adopted by the
   61  Interstate Insurance Product Regulation Commission:
   62         (a) The 10-day period for the unconditional refund of
   63  premiums, plus any fees or charges under s. 626.99.
   64         (b) Underwriting criteria limiting the amount, extent, or
   65  kind of life insurance based on past or future travel in a
   66  manner that is inconsistent with s. 626.9541(1)(dd) as
   67  implemented by the Office of Insurance Regulation.
   68         (c) Any other uniform standard that conflicts with statutes
   69  or rules of this state providing consumer protections for
   70  products covered by the compact.
   71         (5) The exclusivity provision of paragraph (2)(b) of
   72  Article XVI of the Interstate Insurance Product Regulation
   73  Compact applies only to those uniform standards adopted by the
   74  Interstate Insurance Product Regulation Commission in accordance
   75  with the terms of the compact and does not apply to those
   76  standards that this state has opted out of pursuant to this act
   77  or the compact. In addition, the exclusivity provision does not
   78  limit or render inapplicable standards adopted by this state in
   79  the absence of a standard adopted by the commission.
   80  Notwithstanding paragraph (2)(b) of Article XVI of the compact,
   81  standards adopted by this state continue to apply to the
   82  content, approval, and certification of products in this state,
   83  including, but not limited to:
   84         (a) The prohibition against a surrender or deferred sales
   85  charge of more than 10 percent pursuant to s. 627.4554.
   86         (b) Notification to an applicant of the right to designate
   87  a secondary addressee at the time of application under s.
   88  627.4555.
   89         (c) Notification of secondary addressees at least 21 days
   90  before the impending lapse of a policy under s. 627.4555.
   91         (d) The inclusion of a clear statement pursuant to s.
   92  627.803 that the benefits, values, or premiums under a variable
   93  annuity are indeterminate and may vary.
   94         (e) Interest on surrender proceeds pursuant to s. 627.482.
   95         (3)(6) After enactment of this section, if the Interstate
   96  Insurance Product Regulation Commission adopts any new uniform
   97  standard or amendment to the existing uniform standard as
   98  specified in subsection (2), the Office of Insurance Regulation
   99  shall immediately notify the Legislature of such new standard or
  100  amendment.
  101         Section 3. This act shall take effect upon becoming a law.