Florida Senate - 2020 COMMITTEE AMENDMENT
Bill No. SB 1334
Ì632742#Î632742
LEGISLATIVE ACTION
Senate . House
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The Committee on Banking and Insurance (Brandes) recommended the
following:
1 Senate Amendment (with title amendment)
2
3 Delete everything after the enacting clause
4 and insert:
5 Section 1. Paragraph (c) of subsection (2) of section
6 215.555, Florida Statutes, is amended to read:
7 215.555 Florida Hurricane Catastrophe Fund.—
8 (2) DEFINITIONS.—As used in this section:
9 (c) “Covered policy” means any insurance policy covering
10 residential property in this state, including, but not limited
11 to, any homeowner, mobile home owner, farm owner, condominium
12 association, condominium unit owner, tenant, or apartment
13 building policy, or any other policy covering a residential
14 structure or its contents issued by any authorized insurer,
15 including a commercial self-insurance fund holding a certificate
16 of authority issued by the Office of Insurance Regulation under
17 s. 624.462, the Citizens Property Insurance Corporation, and any
18 joint underwriting association or similar entity created under
19 law. The term “covered policy” includes any collateral
20 protection insurance policy covering personal residences which
21 protects both the borrower’s and the lender’s financial
22 interests, in an amount at least equal to the coverage amount
23 for the dwelling in place under the lapsed homeowner’s policy,
24 the most recent total market value of the dwelling as determined
25 by the county property appraiser, or the coverage amount the
26 homeowner requests from the insurer, if such collateral
27 protection insurance policy can be accurately reported as
28 required in subsection (5). Additionally, covered policies
29 include policies covering the peril of wind removed from the
30 Florida Residential Property and Casualty Joint Underwriting
31 Association or from the Citizens Property Insurance Corporation,
32 created under s. 627.351(6), or from the Florida Windstorm
33 Underwriting Association, created under s. 627.351(2), by an
34 authorized insurer under the terms and conditions of an executed
35 assumption agreement between the authorized insurer and such
36 association or Citizens Property Insurance Corporation. Each
37 assumption agreement between the association and such authorized
38 insurer or Citizens Property Insurance Corporation must be
39 approved by the Office of Insurance Regulation before the
40 effective date of the assumption, and the Office of Insurance
41 Regulation must provide written notification to the board within
42 15 working days after such approval. “Covered policy” does not
43 include any policy that excludes wind coverage or hurricane
44 coverage or any reinsurance agreement and does not include any
45 policy otherwise meeting this definition which is issued by a
46 surplus lines insurer or a reinsurer. All commercial residential
47 excess policies and all deductible buy-back policies that, based
48 on sound actuarial principles, require individual ratemaking
49 shall be excluded by rule if the actuarial soundness of the fund
50 is not jeopardized. For this purpose, the term “excess policy”
51 means a policy that provides insurance protection for large
52 commercial property risks and that provides a layer of coverage
53 above a primary layer insured by another insurer.
54 Section 2. Effective upon this act becoming a law,
55 paragraph (d) of subsection (3) of section 319.30, Florida
56 Statutes, is amended to read:
57 319.30 Definitions; dismantling, destruction, change of
58 identity of motor vehicle or mobile home; salvage.—
59 (3)
60 (d) An electronic signature that is consistent with chapter
61 668 satisfies any signature required under this subsection,
62 except that an electronic signature on an odometer disclosure
63 submitted through an insurance company must be executed using an
64 electronic signature, as defined in s. 668.003(4), which that
65 uses a system providing an Identity Assurance Level,
66 Authenticator Assurance Level, and Federation Assurance Level,
67 as described in the National Institute of Standards and
68 Technology Special Publication 800-63-3, as of December 1, 2017,
69 which that are equivalent to or greater than:
70 1. Level 2, for each level, for a certificate of
71 destruction or.
72 2. Level 3, for each level, for a salvage certificate of
73 title.
74 Section 3. Paragraph (a) of subsection (1) of section
75 440.12, Florida Statutes, is amended to read:
76 440.12 Time for commencement and limits on weekly rate of
77 compensation.—
78 (1) Compensation is not allowed for the first 7 days of the
79 disability, except for benefits provided under s. 440.13.
80 However, if the injury results in more than 21 days of
81 disability, compensation is allowed from the commencement of the
82 disability.
83 (a) All weekly compensation payments, except for the first
84 payment, must be paid by check or, if authorized by the
85 employee, paid on a prepaid card pursuant to paragraph (b), or
86 deposited directly into the employee’s account at a financial
87 institution as defined in s. 655.005, or transmitted to the
88 employee’s account with a money transmitter licensed under part
89 II of chapter 560.
90 Section 4. Paragraph (a) of subsection (1) and paragraph
91 (a) of subsection (6) of section 440.20, Florida Statutes, are
92 amended to read:
93 440.20 Time for payment of compensation and medical bills;
94 penalties for late payment.—
95 (1)(a) Unless the carrier denies compensability or
96 entitlement to benefits, the carrier shall pay compensation
97 directly to the employee as required by ss. 440.14, 440.15, and
98 440.16, in accordance with those sections. Upon receipt of the
99 employee’s authorization as provided for in s. 440.12(1)(a), the
100 carrier’s obligation to pay compensation directly to the
101 employee is satisfied when the carrier directly deposits, by
102 electronic transfer or other means, compensation into the
103 employee’s account at a financial institution as defined in s.
104 655.005 or onto a prepaid card in accordance with s. 440.12(1)
105 or transmits the employee’s compensation to the employee’s
106 account with a money transmitter licensed under part II of
107 chapter 560. Compensation by direct deposit, or through the use
108 of a prepaid card, or through transmission is considered paid on
109 the date the funds become available for withdrawal by the
110 employee.
111 (6)(a) If any installment of compensation for death or
112 dependency benefits, or compensation for disability benefits
113 payable without an award is not paid within 7 days after it
114 becomes due, as provided in subsection (2), subsection (3), or
115 subsection (4), there shall be added to such unpaid installment
116 a penalty of an amount equal to 20 percent of the unpaid
117 installment, which shall be paid at the same time as, but in
118 addition to, such installment of compensation. This penalty
119 shall not apply for late payments resulting from conditions over
120 which the employer or carrier had no control. When any
121 installment of compensation payable without an award has not
122 been paid within 7 days after it became due and the claimant
123 concludes the prosecution of the claim before a judge of
124 compensation claims without having specifically claimed
125 additional compensation in the nature of a penalty under this
126 section, the claimant will be deemed to have acknowledged that,
127 owing to conditions over which the employer or carrier had no
128 control, such installment could not be paid within the period
129 prescribed for payment and to have waived the right to claim
130 such penalty. However, during the course of a hearing, the judge
131 of compensation claims shall on her or his own motion raise the
132 question of whether such penalty should be awarded or excused.
133 The department may assess without a hearing the penalty against
134 either the employer or the carrier, depending upon who was at
135 fault in causing the delay. The insurance policy cannot provide
136 that this sum will be paid by the carrier if the department or
137 the judge of compensation claims determines that the penalty
138 should be paid by the employer rather than the carrier. Any
139 additional installment of compensation paid by the carrier
140 pursuant to this section shall be paid directly to the employee
141 by check or, if authorized by the employee, by direct deposit
142 into the employee’s account at a financial institution or by
143 transmission to the employee’s account with a money transmitter
144 licensed under part II of chapter 560.
145 Section 5. Subsection (3) of section 624.155, Florida
146 Statutes, is amended to read:
147 624.155 Civil remedy.—
148 (3)(a) As a condition precedent to bringing an action under
149 this section, the department and the authorized insurer must
150 have been given 60 days’ written notice of the violation. Notice
151 to the authorized insurer must be provided by the department to
152 the e-mail address designated by the insurer under s. 624.422.
153 (b) The notice shall be on a form provided by the
154 department and shall state with specificity the following
155 information, and such other information as the department may
156 require:
157 1. The statutory provision, including the specific language
158 of the statute, which the authorized insurer allegedly violated.
159 2. The facts and circumstances giving rise to the
160 violation.
161 3. The name of any individual involved in the violation.
162 4. Reference to specific policy language that is relevant
163 to the violation, if any. If the person bringing the civil
164 action is a third party claimant, she or he shall not be
165 required to reference the specific policy language if the
166 authorized insurer has not provided a copy of the policy to the
167 third party claimant pursuant to written request.
168 5. A statement that the notice is given in order to perfect
169 the right to pursue the civil remedy authorized by this section.
170 (c) No action shall lie if, within 60 days after the
171 insurer receives filing notice from the department in accordance
172 with this subsection, the damages are paid or the circumstances
173 giving rise to the violation are corrected.
174 (d) The authorized insurer that is the recipient of a
175 notice filed pursuant to this section shall report to the
176 department on the disposition of the alleged violation.
177 (e) The applicable statute of limitations for an action
178 under this section shall be tolled for a period of:
179 1. Sixty 65 days after the insurer receives from the
180 department by the mailing of the notice required by this
181 subsection.
182 2. Sixty days after the date appraisal is invoked pursuant
183 to paragraph (f) or the mailing of a subsequent notice required
184 by this subsection.
185 (f) A notice required under this subsection may not be
186 filed within 60 days after appraisal is invoked by any party in
187 a residential property insurance claim.
188 Section 6. Subsection (4) of section 624.307, Florida
189 Statutes, is amended, and subsection (11) is added to that
190 section, to read:
191 624.307 General powers; duties.—
192 (4) The department and office may each collect, propose,
193 publish, and disseminate information relating to the subject
194 matter of any duties imposed upon it by law. Aggregate
195 information may include information asserted as trade secret
196 information unless the trade secret information can be
197 individually extrapolated, in which case the trade secret
198 information remains protected as provided under s. 624.4213.
199 (11) The Commissioner of Insurance Regulation may not lobby
200 for compensation the Legislature, the Governor, the Executive
201 Office of the Governor, members of the Cabinet, a department
202 that is headed by a member of the Cabinet, or the office on
203 issues of policy, appropriations, or procurement for a period of
204 6 years after vacation of public position.
205 Section 7. Subsection (4) is added to section 624.315,
206 Florida Statutes, to read:
207 624.315 Department; annual report.—
208 (4) When aggregate information includes information
209 asserted as trade secret information, the office may include the
210 trade secret information in the report required under subsection
211 (1) or may make the trade secret information available under
212 subsection (2) unless the trade secret information can be
213 individually extrapolated, in which case the trade secret
214 information remains protected as provided under s. 624.4213.
215 Section 8. Subsection (2) of section 624.422, Florida
216 Statutes, is amended to read:
217 624.422 Service of process; appointment of Chief Financial
218 Officer as process agent.—
219 (2) Prior to its authorization to transact insurance in
220 this state, each insurer shall file with the department
221 designation of the name and address of the person to whom
222 process against it served upon the Chief Financial Officer is to
223 be forwarded. Each insurer shall also file with the department
224 designation of the name, mailing address, and e-mail address of
225 the person who shall receive presuit notices filed under s.
226 627.7152 and the name and e-mail address of the person to whom
227 the department shall forward civil remedy notices filed under
228 624.155. The department shall publish such names and addresses
229 on its website. The insurer may change a the designation at any
230 time by a new filing.
231 Section 9. Paragraph (c) of subsection (1) of section
232 626.321, Florida Statutes, is amended to read:
233 626.321 Limited licenses and registration.—
234 (1) The department shall issue to a qualified applicant a
235 license as agent authorized to transact a limited class of
236 business in any of the following categories of limited lines
237 insurance:
238 (c) Travel insurance.—License covering only policies and
239 certificates of travel insurance which are subject to review by
240 the office. Policies and certificates of travel insurance may
241 provide coverage for travel insurance, as defined in s. 647.02
242 risks incidental to travel, planned travel, or accommodations
243 while traveling, including, but not limited to, accidental death
244 and dismemberment of a traveler; trip or event cancellation,
245 interruption, or delay; loss of or damage to personal effects or
246 travel documents; damages to travel accommodations; baggage
247 delay; emergency medical travel or evacuation of a traveler; or
248 medical, surgical, and hospital expenses related to an illness
249 or emergency of a traveler. Such policy or certificate may be
250 issued for terms longer than 90 days, but, other than a policy
251 or certificate providing coverage for air ambulatory services
252 only, each policy or certificate must be limited to coverage for
253 travel or use of accommodations of no longer than 90 days. The
254 license may be issued only to an individual or business entity
255 that has filed with the department an application for a license
256 in a form and manner prescribed by the department.
257 1. A limited lines travel insurance producer, as defined in
258 s. 647.02, shall be licensed to sell, solicit, or negotiate
259 travel insurance through a licensed insurer.
260 2. A person may not act as a limited lines travel insurance
261 producer or travel retailer unless properly licensed or
262 registered, respectively. As used in this paragraph, the term
263 “travel retailer” means a business entity that:
264 a. Makes, arranges, or offers planned travel.
265 b. May, under subparagraph 3., offer and disseminate travel
266 insurance as a service to its customers on behalf of and under
267 the direction of a limited lines travel insurance producer.
268 3. A travel retailer may offer and disseminate travel
269 insurance under a limited lines travel insurance producer
270 business entity license only if all of the following
271 requirements are met:
272 a. The limited lines travel insurance producer or travel
273 retailer provides to purchasers of travel insurance:
274 (I) A description of the material terms or the actual
275 material terms of the insurance coverage.
276 (II) A description of the process for filing a claim.
277 (III) A description of the review or cancellation process
278 for the travel insurance policy.
279 (IV) The identity and contact information of the insurer
280 and limited lines travel insurance producer.
281 b. At the time of licensure, the limited lines travel
282 insurance producer establishes and maintains a register on the
283 department’s website and appoints each travel retailer that
284 offers travel insurance on behalf of the limited lines travel
285 insurance producer. The limited lines travel insurance producer
286 must maintain and update the register, which must include the
287 travel retailer’s federal tax identification number and the
288 name, address, and contact information of the travel retailer
289 and an officer or person who directs or controls the travel
290 retailer’s operations. The limited lines travel insurance
291 producer shall submit the register to the department upon
292 reasonable request. The limited lines travel insurance producer
293 shall also certify that the travel retailer register complies
294 with 18 U.S.C. s. 1033. The grounds for the suspension and
295 revocation and the penalties applicable to resident insurance
296 producers under this section apply to the limited lines travel
297 insurance producers and travel retailers.
298 c. The limited lines travel insurance producer has
299 designated one of its employees as the designated responsible
300 producer. The designated responsible producer, who must be a
301 licensed insurance producer, is responsible for compliance with
302 the travel insurance laws and regulations applicable to the
303 limited lines travel insurance producer and its registrants. The
304 designated responsible producer and the president, secretary,
305 treasurer, and any other officer or person who directs or
306 controls the limited lines travel insurance producer’s insurance
307 operations must comply with the fingerprinting requirements
308 applicable to insurance producers in the resident state of the
309 limited lines travel insurance producer.
310 d. The limited lines travel insurance producer has paid all
311 applicable licensing and appointment fees, as set forth in
312 applicable general law.
313 e. The limited lines travel insurance producer requires
314 each employee and each authorized representative of the travel
315 retailer whose duties include offering and disseminating travel
316 insurance to receive a program of instruction or training, which
317 is subject, at the discretion of the department, to review and
318 approval. The training material must, at a minimum, contain
319 adequate instructions on the types of insurance offered, ethical
320 sales practices, and required disclosures to prospective
321 purchasers.
322
323 As used in this paragraph, the term “offer and disseminate”
324 means to provide general information, including a description of
325 the coverage and price, as well as processing the application
326 and collecting premiums.
327 4. A travel retailer offering or disseminating travel
328 insurance shall make available to prospective purchasers
329 brochures or other written materials that have been approved by
330 the travel insurer. Such materials must include information
331 that, at a minimum:
332 a. Provides the identity and contact information of the
333 insurer and the limited lines travel insurance producer.
334 b. Explains that the purchase of travel insurance is not
335 required in order to purchase any other product or service from
336 the travel retailer.
337 c. Explains that a travel retailer is authorized to provide
338 only general information about the insurance offered by the
339 travel retailer, including a description of the coverage and
340 price, but is not qualified or authorized to answer technical
341 questions about the terms and conditions of the insurance
342 offered by the travel retailer or to evaluate the adequacy of
343 the customer’s existing insurance coverage.
344 5. A travel retailer employee or authorized representative
345 who is not licensed as an insurance producer may not:
346 a. Evaluate or interpret the technical terms, benefits, and
347 conditions of the offered travel insurance coverage;
348 b. Evaluate or provide advice concerning a prospective
349 purchaser’s existing insurance coverage; or
350 c. Hold himself or herself or the travel retailer out as a
351 licensed insurer, licensed producer, or insurance expert.
352
353 Notwithstanding any other law, a travel retailer whose
354 insurance-related activities, and those of its employees and
355 authorized representatives, are limited to offering and
356 disseminating travel insurance on behalf of and under the
357 direction of a limited lines travel insurance producer meeting
358 the conditions in this section may receive related compensation
359 upon registration by the limited lines travel insurance producer
360 as described in paragraph (2)(b).
361 6. As the insurer’s designee, the limited lines travel
362 insurance producer is responsible for the acts of the travel
363 retailer and shall use reasonable means to ensure compliance by
364 the travel retailer with this section.
365 7. Any person licensed as a general or personal lines agent
366 may sell, solicit, and negotiate travel insurance.:
367 1. To a full-time salaried employee of a common carrier or
368 a full-time salaried employee or owner of a transportation
369 ticket agency and may authorize the sale of such ticket policies
370 only in connection with the sale of transportation tickets, or
371 to the full-time salaried employee of such an agent. Such policy
372 may not be for more than 48 hours or more than the duration of a
373 specified one-way trip or round trip.
374 2. To an entity or individual that is:
375 a. The developer of a timeshare plan that is the subject of
376 an approved public offering statement under chapter 721;
377 b. An exchange company operating an exchange program
378 approved under chapter 721;
379 c. A managing entity operating a timeshare plan approved
380 under chapter 721;
381 d. A seller of travel as defined in chapter 559; or
382 e. A subsidiary or affiliate of any of the entities
383 described in sub-subparagraphs a.-d.
384 3. To a full-time salaried employee of a licensed general
385 lines agent or a business entity that offers travel planning
386 services if insurance sales activities authorized by the license
387 are in connection with, and incidental to, travel.
388 a. A license issued to a business entity that offers travel
389 planning services must encompass each office, branch office, or
390 place of business making use of the entity’s business name in
391 order to offer, solicit, and sell insurance pursuant to this
392 paragraph.
393 b. The application for licensure must list the name,
394 address, and phone number for each office, branch office, or
395 place of business that is to be covered by the license. The
396 licensee shall notify the department of the name, address, and
397 phone number of any new location that is to be covered by the
398 license before the new office, branch office, or place of
399 business engages in the sale of insurance pursuant to this
400 paragraph. The licensee shall notify the department within 30
401 days after the closing or terminating of an office, branch
402 office, or place of business. Upon receipt of the notice, the
403 department shall delete the office, branch office, or place of
404 business from the license.
405 c. A licensed and appointed entity is directly responsible
406 and accountable for all acts of the licensee’s employees and
407 parties with whom the licensee has entered into a contractual
408 agreement to offer travel insurance.
409
410 A licensee shall require each individual who offers policies or
411 certificates under subparagraph 2. or subparagraph 3. to receive
412 initial training from a general lines agent or an insurer
413 authorized under chapter 624 to transact insurance within this
414 state. For an entity applying for a license as a travel
415 insurance agent, the fingerprinting requirement of this section
416 applies only to the president, secretary, and treasurer and to
417 any other officer or person who directs or controls the travel
418 insurance operations of the entity.
419 Section 10. Subsection (13) of section 626.854, Florida
420 Statutes, is amended to read:
421 626.854 “Public adjuster” defined; prohibitions.—The
422 Legislature finds that it is necessary for the protection of the
423 public to regulate public insurance adjusters and to prevent the
424 unauthorized practice of law.
425 (13) A company employee adjuster, independent adjuster,
426 attorney, investigator, or other persons acting on behalf of an
427 insurer that needs access to an insured or claimant or to the
428 insured property that is the subject of a claim must provide at
429 least 48 hours’ notice to:
430 (a) The insured or claimant, public adjuster, or legal
431 representative before scheduling a meeting with the claimant.
432 (b) The insured or claimant before scheduling or an onsite
433 inspection of the insured property. During the inspection, an
434 attempt may not be made to conduct an unscheduled meeting with
435 the insured or claimant. The insured or claimant may deny access
436 to the property if the notice has not been provided. The insured
437 or claimant may waive the 48-hour notice.
438 Section 11. Section 626.931, Florida Statutes, is amended
439 to read:
440 626.931 Agent affidavit and Insurer reporting
441 requirements.—
442 (1) Each surplus lines agent that has transacted business
443 during a calendar quarter shall on or before the 45th day
444 following the calendar quarter file with the Florida Surplus
445 Lines Service Office an affidavit, on forms as prescribed and
446 furnished by the Florida Surplus Lines Service Office, stating
447 that all surplus lines insurance transacted by him or her during
448 such calendar quarter has been submitted to the Florida Surplus
449 Lines Service Office as required.
450 (2) The affidavit of the surplus lines agent shall include
451 efforts made to place coverages with authorized insurers and the
452 results thereof.
453 (3) Each foreign insurer accepting premiums shall, on or
454 before the end of the month following each calendar quarter,
455 file with the Florida Surplus Lines Service Office a verified
456 report of all surplus lines insurance transacted by such insurer
457 for insurance risks located in this state during such calendar
458 quarter.
459 (2)(4) Each alien insurer accepting premiums shall, on or
460 before June 30 of each year, file with the Florida Surplus Lines
461 Service Office a verified report of all surplus lines insurance
462 transacted by such insurer for insurance risks located in this
463 state during the preceding calendar year.
464 (3)(5) The department may waive the filing requirements
465 described in subsections (1) (3) and (2) (4).
466 (4)(6) Each insurer’s report and supporting information
467 shall be in a computer-readable format as determined by the
468 Florida Surplus Lines Service Office or shall be submitted on
469 forms prescribed by the Florida Surplus Lines Service Office and
470 shall show for each applicable agent:
471 (a) A listing of all policies, certificates, cover notes,
472 or other forms of confirmation of insurance coverage or any
473 substitutions thereof or endorsements thereto and the
474 identifying number; and
475 (b) Any additional information required by the department
476 or Florida Surplus Lines Service Office.
477 Section 12. Paragraph (a) of subsection (2) of section
478 626.932, Florida Statutes, is amended to read:
479 626.932 Surplus lines tax.—
480 (2)(a) The surplus lines agent shall make payable to the
481 department the tax related to each calendar quarter’s business
482 as reported to the Florida Surplus Lines Service Office, and
483 remit the tax to the Florida Surplus Lines Service Office at the
484 same time as the fee payment required provided for the filing of
485 the quarterly affidavit, under s. 626.9325 s. 626.931. The
486 Florida Surplus Lines Service Office shall forward to the
487 department the taxes and any interest collected pursuant to
488 paragraph (b), within 10 days of receipt.
489 Section 13. Paragraph (d) of subsection (1) of section
490 626.935, Florida Statutes, is amended to read:
491 626.935 Suspension, revocation, or refusal of surplus lines
492 agent’s license.—
493 (1) The department shall deny an application for, suspend,
494 revoke, or refuse to renew the appointment of a surplus lines
495 agent and all other licenses and appointments held by the
496 licensee under this code, on any of the following grounds:
497 (d) Failure to make and file his or her affidavit or
498 reports when due as required by s. 626.931.
499 Section 14. Paragraphs (a) and (j) of subsection (2) of
500 section 627.062, Florida Statutes, are amended to read:
501 627.062 Rate standards.—
502 (2) As to all such classes of insurance:
503 (a) Insurers or rating organizations shall establish and
504 use rates, rating schedules, or rating manuals that allow the
505 insurer a reasonable rate of return on the classes of insurance
506 written in this state. A copy of rates, rating schedules, rating
507 manuals, premium credits or discount schedules, and surcharge
508 schedules, and changes thereto, must be filed with the office
509 under one of the following procedures:
510 1. If the filing is made at least 90 days before the
511 proposed effective date and is not implemented during the
512 office’s review of the filing and any proceeding and judicial
513 review, such filing is considered a “file and use” filing. In
514 such case, the office shall finalize its review by issuance of a
515 notice of intent to approve or a notice of intent to disapprove
516 within 90 days after receipt of the filing. If the 90-day period
517 ends on a weekend or a holiday under s. 110.117(1)(a)-(i), it
518 must be extended until the conclusion of the next business day.
519 The notice of intent to approve and the notice of intent to
520 disapprove constitute agency action for purposes of the
521 Administrative Procedure Act. Requests for supporting
522 information, requests for mathematical or mechanical
523 corrections, or notification to the insurer by the office of its
524 preliminary findings does not toll the 90-day period during any
525 such proceedings and subsequent judicial review. The rate shall
526 be deemed approved if the office does not issue a notice of
527 intent to approve or a notice of intent to disapprove within 90
528 days after receipt of the filing.
529 2. If the filing is not made in accordance with
530 subparagraph 1., such filing must be made as soon as
531 practicable, but within 30 days after the effective date, and is
532 considered a “use and file” filing. An insurer making a “use and
533 file” filing is potentially subject to an order by the office to
534 return to policyholders those portions of rates found to be
535 excessive, as provided in paragraph (h).
536 3. For all property insurance filings made or submitted
537 after January 25, 2007, but before May 1, 2012, an insurer
538 seeking a rate that is greater than the rate most recently
539 approved by the office shall make a “file and use” filing. For
540 purposes of this subparagraph, motor vehicle collision and
541 comprehensive coverages are not considered property coverages.
542 (j) With respect to residential property insurance rate
543 filings:,
544 1. The rate filing must account for mitigation measures
545 undertaken by policyholders to reduce hurricane losses.
546 2. The office may not disapprove a rate for homeowners’
547 insurance solely because the rate filing uses a modeling
548 indication that is the weighted or straight average of two or
549 more models currently found to be accurate or reliable pursuant
550 to s. 627.0628.
551
552 The provisions of this subsection do not apply to workers’
553 compensation, employer’s liability insurance, and motor vehicle
554 insurance.
555 Section 15. Paragraph (b) of subsection (2) of section
556 627.0629, Florida Statutes, is amended to read:
557 627.0629 Residential property insurance; rate filings.—
558 (2)
559 (b) A rate filing for residential property insurance made
560 more than 150 days after approval by the office of a building
561 code rating factor plan submitted by a statewide rating
562 organization may shall include positive and negative rate
563 factors that reflect the manner in which building code
564 enforcement in a particular jurisdiction addresses risk of wind
565 damage. The rate filing shall include variations from standard
566 rate factors on an individual basis based on inspection of a
567 particular structure by a licensed home inspector. If an
568 inspection is requested by the insured, the insurer may require
569 the insured to pay the reasonable cost of the inspection. This
570 paragraph applies to structures constructed or renovated after
571 the implementation of this paragraph.
572 Section 16. Paragraph (a) of subsection (1) of section
573 627.0651, Florida Statutes, is amended to read:
574 627.0651 Making and use of rates for motor vehicle
575 insurance.—
576 (1) Insurers shall establish and use rates, rating
577 schedules, or rating manuals to allow the insurer a reasonable
578 rate of return on motor vehicle insurance written in this state.
579 A copy of rates, rating schedules, and rating manuals, and
580 changes therein, shall be filed with the office under one of the
581 following procedures:
582 (a) If the filing is made at least 60 days before the
583 proposed effective date and the filing is not implemented during
584 the office’s review of the filing and any proceeding and
585 judicial review, such filing shall be considered a “file and
586 use” filing. In such case, the office shall initiate proceedings
587 to disapprove the rate and so notify the insurer or shall
588 finalize its review within 60 days after receipt of the filing.
589 If the 60-day period ends on a weekend or a holiday under s.
590 110.117(1)(a)-(i), it must be extended until the conclusion of
591 the next business day. Notification to the insurer by the office
592 of its preliminary findings shall toll the 60-day period during
593 any such proceedings and subsequent judicial review. The rate
594 shall be deemed approved if the office does not issue notice to
595 the insurer of its preliminary findings within 60 days after the
596 filing.
597 Section 17. Subsection (2) of section 627.410, Florida
598 Statutes, is amended to read:
599 627.410 Filing, approval of forms.—
600 (2) Every such filing must be made at least 30 days in
601 advance of any such use or delivery. At the expiration of the 30
602 days, the form filed will be deemed approved unless prior
603 thereto it has been affirmatively approved or disapproved by
604 order of the office. The approval of such form by the office
605 constitutes a waiver of any unexpired portion of such waiting
606 period. The office may extend the period within which it may
607 affirmatively approve or disapprove such form by up to 15 days
608 by giving notice of such extension before expiration of the
609 initial 30-day period. If the initial 30-day period or the 15
610 day extension period ends on a weekend or a holiday under s.
611 110.117(1)(a)-(i), the review period must be extended until the
612 conclusion of the next business day. At the expiration of such
613 extended period, and in the absence of prior affirmative
614 approval or disapproval, such form shall be deemed approved.
615 Section 18. Paragraph (f) is added to subsection (5) of
616 section 627.7011, Florida Statutes, to read:
617 627.7011 Homeowners’ policies; offer of replacement cost
618 coverage and law and ordinance coverage.—
619 (5) This section does not:
620 (f) Prohibit an insurer from offering an HO-3 homeowner’s
621 insurance policy or endorsement providing that a loss to a roof
622 older than 10 years which is caused by a covered peril other
623 than a hurricane, tornado, fire, or lightning will be adjusted
624 on the basis of actual cash value unless a total loss to the
625 insured structure occurs. Such policy or endorsement may be
626 offered only if the roof of the insured structure is older than
627 10 years. A policy or endorsement is deemed to provide
628 replacement cost coverage unless before the issuance of the
629 policy or endorsement, the insured makes a written selection, on
630 a form adopted by commission rule, of such actual cash value
631 coverage by signing the form. The form must fully advise the
632 applicant of the nature of the coverage and the heading of the
633 form must state in 12-point bold type: “You are electing to
634 purchase actual cash value coverage on your roof. If your roof
635 is damaged by a covered peril other than hurricane, tornado,
636 fire, or lightning, or the insured structure is not a total
637 loss, you will only receive the depreciated value of your roof
638 and you may experience significant out-of-pocket costs to repair
639 or replace your roof.” The applicant may also make such
640 selection through a recorded statement if, contemporaneously but
641 before the selection of actual cash value coverage, the insurer
642 verbally communicates the contents of the form.
643 Section 19. Section 627.70132, Florida Statutes, is amended
644 to read:
645 627.70132 Notice of property insurance windstorm or
646 hurricane claim.—An initial claim not caused by the peril of
647 windstorm or hurricane under an insurance policy that provides
648 property insurance, as defined in s. 624.604, is barred unless
649 initial notice of the claim was given to the insurer in
650 accordance with the terms of the policy within 3 years after the
651 date of loss. Notice of all supplemental claims or reopened
652 claims not caused by the peril of windstorm or hurricane must be
653 made within the later of 3 years after the date of loss or 12
654 months after the last payment by the insurer on the loss. A
655 claim, supplemental claim, or reopened claim under an insurance
656 policy that provides property insurance, as defined in s.
657 624.604, for loss or damage caused by the peril of windstorm or
658 hurricane is barred unless notice of the claim, supplemental
659 claim, or reopened claim was given to the insurer in accordance
660 with the terms of the policy within 3 years after the hurricane
661 first made landfall or the windstorm caused the covered damage.
662 This section does not apply to sinkhole loss claims, which are
663 subject to the time limitation under s. 627.706(5). For purposes
664 of this section, the term “supplemental claim” or “reopened
665 claim” means any additional claim for recovery from the insurer
666 for losses from the same hurricane or windstorm which the
667 insurer has previously adjusted pursuant to the initial claim.
668 This section does not affect any applicable limitation on civil
669 actions provided in s. 95.11 for claims, supplemental claims, or
670 reopened claims timely filed under this section.
671 Section 20. Subsection (2) of section 627.714, Florida
672 Statutes, is amended to read:
673 627.714 Residential condominium unit owner coverage; loss
674 assessment coverage required.—
675 (2) The maximum amount of any unit owner’s loss assessment
676 coverage that can be assessed for any loss shall be an amount
677 equal to that unit owner’s loss assessment coverage limit in
678 effect 1 day before the date of the occurrence that gave rise to
679 the loss. Such coverage is applicable to any loss assessment
680 regardless of the date of the assessment by the association. Any
681 changes to the limits of a unit owner’s coverage for loss
682 assessments made on or after the day before the date of the
683 occurrence are not applicable to such loss.
684 Section 21. Notwithstanding the expiration of subsection
685 (4) of section 627.715, Florida Statutes, which occurred on July
686 1, 2019, that subsection is revived, reenacted, and amended to
687 read:
688 627.715 Flood insurance.—An authorized insurer may issue an
689 insurance policy, contract, or endorsement providing personal
690 lines residential coverage for the peril of flood or excess
691 coverage for the peril of flood on any structure or the contents
692 of personal property contained therein, subject to this section.
693 This section does not apply to commercial lines residential or
694 commercial lines nonresidential coverage for the peril of flood.
695 An insurer may issue flood insurance policies, contracts,
696 endorsements, or excess coverage on a standard, preferred,
697 customized, flexible, or supplemental basis.
698 (4) A surplus lines agent may export a contract or
699 endorsement providing flood coverage to an eligible surplus
700 lines insurer without making a diligent effort to seek such
701 coverage from three or more authorized insurers under s.
702 626.916(1)(a). This subsection expires July 1, 2025 2019, or on
703 the date on which the Commissioner of Insurance Regulation
704 determines in writing that there is an adequate admitted market
705 to provide coverage for the peril of flood consistent with this
706 section, whichever date occurs first. If there are fewer than
707 three admitted insurers on the date this subsection expires, the
708 number of declinations necessary to meet the diligent-effort
709 requirement shall be no fewer than the number of authorized
710 insurers providing flood coverage.
711 Section 22. Paragraph (a) of subsection (9) of section
712 627.7152, Florida Statutes, is amended to read:
713 627.7152 Assignment agreements.—
714 (9)(a) An assignee must provide the named insured, insurer,
715 and the assignor, if not the named insured, with a written
716 notice of intent to initiate litigation before filing suit under
717 the policy. Such notice must be served at least 10 business days
718 before filing suit by electronic or certified mail, return
719 receipt requested, to the name and address or e-mail address
720 designated by the insurer in the policy documents and pursuant
721 to s. 624.422 or electronic delivery at least 10 business days
722 before filing suit, but may not be served before the insurer has
723 made a determination of coverage under s. 627.70131. The notice
724 must specify the damages in dispute, the amount claimed, and a
725 presuit settlement demand. Concurrent with the notice, and as a
726 precondition to filing suit, the assignee must provide the named
727 insured, insurer, and the assignor, if not the named insured, a
728 detailed written invoice or estimate of services, including
729 itemized information on equipment, materials, and supplies; the
730 number of labor hours; and, in the case of work performed, proof
731 that the work has been performed in accordance with accepted
732 industry standards.
733 Section 23. Subsection (4) of section 627.7295, Florida
734 Statutes, is amended to read:
735 627.7295 Motor vehicle insurance contracts.—
736 (4) The insurer may cancel the policy in accordance with
737 this code except that, notwithstanding s. 627.728, an insurer
738 may not cancel a new policy or binder during the first 30 60
739 days immediately following the effective date of the policy or
740 binder for nonpayment of premium unless the reason for the
741 cancellation is the issuance of a check for the premium that is
742 dishonored for any reason or any other type of premium payment
743 that was subsequently determined to be rejected or invalid.
744 Section 24. Present subsection (4) of section 627.914,
745 Florida Statutes, is redesignated as subsection (5), a new
746 subsection (4) is added to that section, and subsections (2) and
747 (3) of that section are amended, to read:
748 627.914 Reports of information by workers’ compensation
749 insurers required.—
750 (2)(a) Each insurer and self-insurance fund authorized to
751 write a policy of workers’ compensation insurance shall report
752 transmit the following information annually on both Florida
753 experience and nationwide experience separately:
754 1.(a) Payrolls by classification.
755 2.(b) Manual premiums by classification.
756 3.(c) Standard premiums by classification.
757 4.(d) Losses by classification and injury type.
758 5.(e) Expenses.
759
760 An insurer or self-insurance fund that is placed in receivership
761 pursuant to part I of chapter 631 must continue to report the
762 information required under this paragraph. At the discretion of
763 the receiver, the insurer or self-insurance fund may outsource
764 the reporting of such information to a third-party reporting
765 vendor. The office shall approve a modified reporting plan that
766 is limited in terms of data elements.
767 (b) A report of the this information required under
768 paragraph (a) shall be filed no later than July 1 of each year.
769 All reports shall be filed in accordance with standard reporting
770 procedures for insurers, which procedures have received approval
771 by the office, and shall contain data for the most recent policy
772 period available. A statistical or rating organization may be
773 used by insurers and self-insurance funds to report the data
774 required by this section. The statistical or rating organization
775 shall report each data element in the aggregate only for
776 insurers and self-insurance funds required to report under this
777 section who elect to have the organization report on their
778 behalf. Such insurers and self-insurance funds shall be named in
779 the report.
780 (3) Individual self-insurers as defined in s. 440.02 shall
781 report only Florida data as prescribed in subparagraphs
782 (2)(a)1.-5. paragraphs (2)(a)-(e) to the office.
783 (a) The office shall publish the dates and forms necessary
784 to enable individual self-insurers to comply with this section.
785 (b) A statistical or rating organization may be used by
786 individual self-insurers for the purposes of reporting the data
787 required by this section and calculating experience ratings.
788 (4) The office may use the information it receives under
789 this section in its adoption of rates and experience ratings
790 modifications.
791 Section 25. Subsection (3) of section 628.801, Florida
792 Statutes, is amended to read:
793 628.801 Insurance holding companies; registration;
794 regulation.—
795 (3) Effective January 1, 2021 2015, pursuant to chapter 624
796 relating to the examination of insurers, the office may examine
797 any insurer registered under this section and its affiliates,
798 including a managing general agent or holding company, to
799 ascertain the financial condition of the insurer, including the
800 enterprise risk to the insurer by the ultimate controlling
801 party, or by any entity or combination of entities within the
802 insurance holding company system, or by the insurance holding
803 company system on a consolidated basis.
804 Section 26. Paragraph (a) of subsection (1) of section
805 629.401, Florida Statutes, is amended to read:
806 629.401 Insurance exchange.—
807 (1) There may be created one or more insurance exchanges,
808 with one or more offices each, subject to such rules as are
809 adopted by the commission. For the purposes of this section, the
810 term “exchange” applies to any such insurance exchange proposed
811 or created under this section. The purposes of the exchange are:
812 (a) To provide a facility for the underwriting of:
813 1. Reinsurance of all kinds of insurance.
814 2. Direct insurance of all kinds on risks located entirely
815 outside the United States.
816 3. Surplus lines insurance for risks located in this state
817 eligible for export under s. 626.916 or s. 626.917 and placed
818 through a licensed Florida surplus lines agent subject to
819 compliance with the provisions of ss. 626.921, 626.922, 626.923,
820 626.924, 626.929, 626.9295, and 626.930, and 626.931. With
821 respect to compliance with s. 626.924, the required legend may
822 refer to any coverage provided for by a security fund
823 established under paragraph (3)(d).
824 4. Surplus lines insurance in any other state subject to
825 the applicable surplus lines laws of such other state for risks
826 located entirely outside of this state.
827 Section 27. Section 634.171, Florida Statutes, is amended
828 to read:
829 634.171 Salesperson to be licensed and appointed;
830 exceptions.—Salespersons for motor vehicle service agreement
831 companies and insurers shall be licensed, appointed, renewed,
832 continued, reinstated, or terminated as prescribed in chapter
833 626 for insurance representatives in general. However, they
834 shall be exempt from all other provisions of chapter 626
835 including fingerprinting, photo identification, education, and
836 examination provisions. License, appointment, and other fees
837 shall be those prescribed in s. 624.501. A licensed and
838 appointed salesperson shall be directly responsible and
839 accountable for all acts of her or his employees and other
840 representatives. Each service agreement company or insurer
841 shall, on forms prescribed by the department, within 30 days
842 after termination of the appointment, notify the department of
843 such termination. No employee or salesperson of a motor vehicle
844 service agreement company or insurer may directly or indirectly
845 solicit or negotiate insurance contracts, or hold herself or
846 himself out in any manner to be an insurance agent, unless so
847 qualified, licensed, and appointed therefor under the Florida
848 Insurance Code. A licensed personal lines or general lines agent
849 may solicit, negotiate, advertise, or sell motor vehicle service
850 agreements and is not required to be licensed under this
851 section. A motor vehicle service agreement company is not
852 required to be licensed as a salesperson to solicit, sell,
853 issue, or otherwise transact the motor vehicle service
854 agreements issued by the motor vehicle service agreement
855 company.
856 Section 28. Section 634.317, Florida Statutes, is amended
857 to read:
858 634.317 License and appointment required; exception.—No
859 person may solicit, negotiate, or effectuate home warranty
860 contracts for remuneration in this state unless such person is
861 licensed and appointed as a sales representative. A licensed and
862 appointed sales representative shall be directly responsible and
863 accountable for all acts of the licensee’s employees. A licensed
864 personal lines or general lines agent may solicit, negotiate,
865 advertise, or sell home warranty contracts and is not required
866 to be licensed under this section.
867 Section 29. Section 634.419, Florida Statutes, is amended
868 to read:
869 634.419 License and appointment required; exception.—No
870 person or entity shall solicit, negotiate, advertise, or
871 effectuate service warranty contracts in this state unless such
872 person or entity is licensed and appointed as a sales
873 representative. Sales representatives shall be responsible for
874 the actions of persons under their supervision. However, a
875 service warranty association licensed as such under this part
876 shall not be required to be licensed and appointed as a sales
877 representative to solicit, negotiate, advertise, or effectuate
878 its products. A licensed personal lines or general lines agent
879 may solicit, negotiate, advertise, or sell service warranty
880 contracts and is not required to be licensed under this section.
881 Section 30. The Division of Law Revision is directed to
882 create chapter 647, Florida Statutes, consisting of ss. 647.01
883 647.08, Florida Statutes, to be entitled “Travel Insurance.”
884 Section 31. Section 647.01, Florida Statutes, is created to
885 read:
886 647.01 Purpose and scope.—
887 (1) The purpose of this chapter is to promote the public
888 welfare by creating a comprehensive legal framework within which
889 travel insurance may be sold in this state.
890 (2) This chapter applies to:
891 (a) Travel insurance that covers any resident of this state
892 and that is sold, solicited, negotiated, or offered in this
893 state.
894 (b) Policies and certificates that are delivered or issued
895 for delivery in this state.
896
897 This chapter does not apply to cancellation fee waivers or
898 travel assistance services, except as expressly provided in this
899 chapter.
900 (3) All other applicable provisions of the insurance laws
901 of this state continue to apply to travel insurance, except that
902 the specific provisions of this chapter shall supersede any
903 general provisions of law that would otherwise be applicable to
904 travel insurance.
905 Section 32. Section 647.02, Florida Statutes, is created to
906 read:
907 647.02 Definitions.—As used in this chapter, the term:
908 (1) “Aggregator site” means a website that provides access
909 to information regarding insurance products from more than one
910 insurer, including product and insurer information, for use in
911 comparison shopping.
912 (2) “Blanket travel insurance” means a policy of travel
913 insurance issued to an eligible group providing coverage to all
914 members of the eligible group without a separate charge to
915 individual members of the eligible group.
916 (3) “Cancellation fee waiver” means a contractual agreement
917 between a supplier of travel services and its customer to waive
918 some or all of the nonrefundable cancellation fee provisions of
919 the supplier’s underlying travel contract with or without regard
920 to the reason for the cancellation or form of reimbursement. A
921 cancellation fee waiver is not insurance.
922 (4) “Department” means the Department of Financial
923 Services.
924 (5) “Eligible group,” solely for the purposes of travel
925 insurance, means two or more persons who are engaged in a common
926 enterprise or who have an economic, educational, or social
927 affinity or relationship, including, but not limited to, any of
928 the following:
929 (a) An entity engaged in the business of providing travel
930 or travel services, including, but not limited to:
931 1. A tour operator, lodging provider, vacation property
932 owner, hotel, resort, travel club, travel agency, property
933 manager, and cultural exchange program.
934 2. An operator, owner, or lessor of a means of
935 transportation of passengers, including, but not limited to, a
936 common carrier, airline, cruise line, railroad, steamship
937 company, and public bus carrier.
938
939 With regard to any particular travel or type of travel or
940 travelers, all members or customers of the group must have a
941 common exposure to risk attendant to such travel.
942 (b) A university, college, school, or other institution of
943 learning, covering students, teachers, employees, or volunteers.
944 (c) An employer covering any group of employees,
945 volunteers, contractors, board of directors, dependents, or
946 guests.
947 (d) A sports team or camp, or a sponsor thereof, covering
948 participants, members, campers, employees, officials,
949 supervisors, or volunteers.
950 (e) A religious, charitable, recreational, educational, or
951 civic organization, or a branch thereof, covering any group of
952 members, participants, or volunteers.
953 (f) A financial institution or financial institution
954 vendor, or a parent holding company, trustee, or agent of or
955 designated by one or more financial institutions or financial
956 institution vendors, including account holders, credit card
957 holders, debtors, guarantors, or purchasers.
958 (g) An incorporated or unincorporated association,
959 including a labor union, having a common interest and
960 constitution and bylaws, which is organized and maintained in
961 good faith for purposes other than obtaining insurance coverage
962 for its members or participants.
963 (h) A trust or the trustees of a fund that covers its
964 members, employees, or customers and is established, created, or
965 maintained for the benefit of its members, employees, or
966 customers, subject to:
967 1. The department’s authorizing the use of a trust.
968 2. The premium tax provisions in s. 647.03 applicable to
969 incorporated or unincorporated associations that have a common
970 interest and constitution and bylaws and that are organized and
971 maintained in good faith for purposes other than obtaining
972 insurance coverage for their members, employees, or customers.
973 (i) An entertainment production company covering any group
974 of participants, volunteers, audience members, contestants, or
975 workers.
976 (j) A volunteer fire department, ambulance, rescue, police,
977 court, first-aid, civil defense, or other such volunteer group.
978 (k) A preschool, daycare institution for children or
979 adults, or senior citizen club.
980 (l) An automobile or truck rental or leasing company
981 covering a group of individuals who may become renters, lessees,
982 or passengers as defined by their travel status on the rented or
983 leased vehicles. The common carrier, the operator, owner, or
984 lessor of a means of transportation, or the motor vehicle or
985 truck rental or leasing company is the policyholder under a
986 policy to which this section applies.
987 (m) Any other group for which the department has made the
988 following determinations:
989 1. The group members are engaged in a common enterprise or
990 have an economic, educational, or social affinity or
991 relationship.
992 2. Issuance of the travel insurance policy is not contrary
993 to the public interest.
994 (6) “Fulfillment materials” means documentation sent to the
995 purchaser of a travel protection plan confirming the purchase
996 and providing the travel protection plan’s coverage and
997 assistance details.
998 (7) “Group travel insurance” means travel insurance issued
999 to an eligible group.
1000 (8) “Limited lines travel insurance producer” means:
1001 (a) A licensed or third-party administrator;
1002 (b) A licensed insurance producer, including a limited
1003 lines producer; or
1004 (c) A travel administrator.
1005 (9) “Travel administrator” means a person who directly or
1006 indirectly underwrites policies for; collects charges,
1007 collateral, or premiums from; or adjusts or settles claims made
1008 by residents of this state in connection with travel insurance,
1009 except that a person is not considered a travel administrator if
1010 the person is:
1011 (a) A person working for a travel administrator, to the
1012 extent that the person’s activities are subject to the
1013 supervision and control of the travel administrator;
1014 (b) An insurance producer selling insurance or engaged in
1015 administrative and claims-related activities within the scope of
1016 the producer’s license;
1017 (c) A travel retailer, as defined s. 626.321(1)(c)2.,
1018 offering and disseminating travel insurance and registered under
1019 the license of a limited lines travel insurance producer in
1020 accordance with s. 626.321(1)(c);
1021 (d) A person adjusting or settling claims in the normal
1022 course of the person’s practice or employment as an attorney at
1023 law, without collecting charges or premiums in connection with
1024 insurance coverage; or
1025 (e) A business entity that is affiliated with a licensed
1026 insurer while acting as a travel administrator for the direct
1027 and assumed insurance business of the affiliated insurer.
1028 (10) “Travel assistance services” means noninsurance
1029 services for which the consumer is not indemnified based on a
1030 fortuitous event, and the provision of which does not result in
1031 the transfer or shifting of risk which would constitute the
1032 business of insurance. The term includes, but is not limited to,
1033 security advisories, destination information, vaccination and
1034 immunization information services, travel reservation services,
1035 entertainment, activity and event planning, translation
1036 assistance, emergency messaging, international legal and medical
1037 referrals, medical case monitoring, coordination of
1038 transportation arrangements, emergency cash transfer assistance,
1039 medical prescription replacement assistance, passport and travel
1040 document replacement assistance, lost luggage assistance,
1041 concierge services, and any other service that is furnished in
1042 connection with planned travel. Travel assistance services are
1043 not insurance and are not related to insurance.
1044 (11) “Travel insurance” means insurance coverage for
1045 personal risks incidental to planned travel, including:
1046 (a) Interruption or cancellation of trip or event;
1047 (b) Loss of baggage or personal effects;
1048 (c) Damages to accommodations or rental vehicles;
1049 (d) Sickness, accident, disability, or death occurring
1050 during travel;
1051 (e) Emergency evacuation;
1052 (f) Repatriation of remains; or
1053 (g) Any other contractual obligations to indemnify or pay a
1054 specified amount to the traveler upon determinable contingencies
1055 related to travel, as determined by the office.
1056
1057 The term does not include major medical plans that provide
1058 comprehensive medical protection for travelers with trips
1059 lasting longer than 6 months, including major medical plans for
1060 those working or residing overseas as expatriates, or any other
1061 product that requires a specific insurance producer license.
1062 (12) “Travel protection plan” means a plan that provides
1063 one or more of the following: travel insurance, travel
1064 assistance services, and cancellation fee waivers.
1065 Section 33. Section 647.03, Florida Statutes, is created to
1066 read:
1067 647.03 Premium tax.—
1068 (1) As used in this section, the term:
1069 (a) “Primary certificateholder” means an individual who
1070 purchases travel insurance under a group policy.
1071 (b) “Primary policyholder” means an individual who
1072 purchases individual travel insurance.
1073 (2) A travel insurer shall pay the premium tax, as required
1074 under s. 624.509, on travel insurance premiums paid by any of
1075 the following:
1076 (a) A primary policyholder who is a resident of this state.
1077 (b) A primary certificateholder who is a resident of this
1078 state.
1079 (c) A blanket travel insurance policyholder:
1080 1. Who is a resident in this state;
1081 2. Who has his or her principal place of business in this
1082 state; or
1083 3. Whose affiliate or subsidiary who has purchased blanket
1084 travel insurance for eligible blanket group members has his or
1085 her principal place of business in this state.
1086
1087 The premium tax under this subsection is subject to any
1088 apportionment rules that apply to an insurer across multiple
1089 taxing jurisdictions or that authorize an insurer to allocate
1090 premium on an apportioned basis in a reasonable and equitable
1091 manner in those jurisdictions.
1092 (3) A travel insurer shall:
1093 (a) Document the state of residence or principal place of
1094 business of the policyholder or certificateholder, or an
1095 affiliate or subsidiary thereof, as required under subsection
1096 (2).
1097 (b) Report as premium only the amount allocable to travel
1098 insurance and not any amounts received for travel assistance
1099 services or cancellation fee waivers.
1100 Section 34. Section 647.04, Florida Statutes, is created to
1101 read:
1102 647.04 Travel protection plans.—A travel protection plan
1103 may be offered for one price for the combined features that the
1104 travel protection plan offers in this state if the travel
1105 protection plan meets all of the following requirements:
1106 (1) The travel protection plan clearly discloses to the
1107 consumer, at or before the time of purchase, that it includes
1108 travel insurance, travel assistance services, and cancellation
1109 fee waivers, as applicable, and provides information and an
1110 opportunity, at or before the time of purchase, for the consumer
1111 to obtain additional information regarding the features and
1112 pricing of each.
1113 (2) The fulfillment materials:
1114 (a) Describe and delineate the travel insurance, travel
1115 assistance services, and cancellation fee waivers in the travel
1116 protection plan.
1117 (b) Include the travel insurance disclosures required in
1118 this chapter, the contact information for persons providing
1119 travel assistance services, and cancellation fee waivers, as
1120 applicable.
1121 Section 35. Section 647.05, Florida Statutes, is created to
1122 read:
1123 647.05 Sales practices.—
1124 (1)(a) All documents provided to a consumer before the
1125 purchase of travel insurance, including, but not limited to,
1126 sales materials, advertising materials, and marketing materials,
1127 must be consistent with the travel insurance policy, including,
1128 but not limited to, forms, endorsements, policies, rate filings,
1129 and certificates of insurance.
1130 (b) For travel insurance policies or certificates that
1131 contain preexisting condition exclusions, information and an
1132 opportunity to learn more about the preexisting condition
1133 exclusions must be provided any time before the purchase.
1134 Information on the exclusions and the opportunity to learn more
1135 about these exclusions must be included in the coverage’s
1136 fulfillment materials.
1137 (c) The fulfillment materials and the information described
1138 in s. 626.321(1)(c)3.a. must be provided to a policyholder or
1139 certificateholder as soon as practicable after the purchase of a
1140 travel protection plan. Unless the insured has started a covered
1141 trip or filed a claim under the travel insurance coverage, the
1142 policyholder or certificateholder may cancel a policy or
1143 certificate for a full refund of the travel protection plan
1144 price from the date of purchase of a travel protection plan
1145 until at least:
1146 1. Fifteen days after the date of delivery of the travel
1147 protection plan’s fulfillment materials by postal mail; or
1148 2. Ten days after the date of delivery of the travel
1149 protection plan’s fulfillment materials by means other than
1150 postal mail.
1151
1152 For the purposes of this paragraph, the term “delivery” means
1153 handing fulfillment materials to the policyholder or
1154 certificateholder or sending fulfillment materials by postal
1155 mail or electronic means to the policyholder or
1156 certificateholder.
1157 (d) An insurer shall disclose in the policy documentation
1158 and fulfillment materials whether the travel insurance is
1159 primary or secondary to other applicable coverage.
1160 (e) If travel insurance is marketed directly to a consumer
1161 through an insurer’s website or by others through an aggregator
1162 site, it is not an unfair trade practice or other violation of
1163 law if the following requirements are met:
1164 1. The web page provides an accurate summary or short
1165 description of the coverage.
1166 2. The consumer has access to the full provisions of the
1167 policy through electronic means.
1168 (2) A person offering, soliciting, or negotiating travel
1169 insurance or travel protection plans on an individual or group
1170 basis may not do so by using a negative or opt-out option that
1171 would require a consumer to take an affirmative action to
1172 deselect coverage, such as unchecking a box on an electronic
1173 form, when the consumer purchases a trip.
1174 (3) If a consumer’s destination jurisdiction requires
1175 insurance coverage, it is not an unfair trade practice to
1176 require that the consumer choose between the following options
1177 as a condition of purchasing a trip or travel package:
1178 (a) Purchasing the coverage required by the destination
1179 jurisdiction through the travel retailer, as defined s.
1180 626.321(1)(c)2., or limited lines travel insurance producer
1181 supplying the trip or travel package; or
1182 (b) Agreeing to obtain and provide proof of coverage that
1183 meets the destination jurisdiction’s requirements before
1184 departure.
1185 (4)(a) A person offering travel insurance to residents of
1186 this state is subject to part IX of chapter 626, the Unfair
1187 Insurance Trade Practices Act, except as otherwise provided in
1188 this chapter. If a conflict arises between this chapter and the
1189 Unfair Insurance Trade Practices Act regarding the sale and
1190 marketing of travel insurance and travel protection plans, the
1191 provisions of this chapter shall control.
1192 (b) A person commits an unfair insurance trade practice
1193 under the Unfair Insurance Trade Practices Act if the person:
1194 1. Offers or sells a travel insurance policy that could
1195 never result in payment of any claims for any insured under the
1196 policy; or
1197 2. Markets blanket travel insurance coverage as free.
1198 Section 36. Section 647.06, Florida Statutes, is created to
1199 read:
1200 647.06 Travel administrators.—
1201 (1) Notwithstanding any other provision of the Florida
1202 Insurance Code, a person may not act or represent himself or
1203 herself as a travel administrator in this state unless the
1204 person:
1205 (a) Is a licensed and appointed property and casualty
1206 insurance producer in this state for activities authorized under
1207 that producer license;
1208 (b) Is a licensed insurance agency, appointed as a managing
1209 general agent in this state; or
1210 (c) Holds a valid third-party administrator license in this
1211 state.
1212 (2) A travel administrator and its employees are exempt
1213 from the licensing requirements of part VI of chapter 626 for
1214 the travel insurance it administers.
1215 (3) An insurer is responsible for ensuring that a travel
1216 administrator administering travel insurance underwritten by the
1217 insurer:
1218 (a) Acts in accordance with this chapter.
1219 (b) Maintains all books and records that are relevant to
1220 the insurer and makes these books and records available to the
1221 department upon request.
1222 Section 37. Section 647.07, Florida Statutes, is created to
1223 read:
1224 647.07 Travel insurance policy.—
1225 (1) Notwithstanding any other provision of the Florida
1226 Insurance Code, travel insurance shall be classified and filed
1227 for purposes of rates and forms under the inland marine line of
1228 insurance; however, travel insurance that provides coverage for
1229 sickness, accident, disability, or death occurring during
1230 travel, either exclusively or in conjunction with related
1231 coverages of emergency evacuation or repatriation of remains, or
1232 incidental limited property and casualty benefits, such as
1233 baggage or trip cancellation, may be classified and filed for
1234 purposes of rates and forms under either the accident and health
1235 line of insurance or the inland marine line of insurance.
1236 (2) Travel insurance may be in the form of an individual,
1237 group, or blanket policy. Group or blanket policies are
1238 classified as commercial inland marine insurance under s.
1239 627.021(2)(d). Travel insurance policies not issued to a
1240 commercial entity and primarily used for personal, family, or
1241 household purposes are considered personal inland marine
1242 insurance and shall not be subject to s. 627.062. Sections of
1243 policies or endorsements for travel insurance which are
1244 considered personal inland marine insurance consisting of travel
1245 assistance services or cancellation fee waivers are not subject
1246 to s. 627.410.
1247 (3) Travel insurance programs may be developed and provided
1248 based on travel protection plans designed for individual or
1249 identified marketing or distribution channels.
1250 Section 38. Section 647.08, Florida Statutes, is created to
1251 read:
1252 647.08 Rulemaking authority.—The department shall adopt
1253 rules to administer this chapter.
1254 Section 39. Except as otherwise expressly provided in this
1255 act and except for this section, which shall take effect upon
1256 this act becoming a law, this act shall take effect July 1,
1257 2020.
1258
1259 ================= T I T L E A M E N D M E N T ================
1260 And the title is amended as follows:
1261 Delete everything before the enacting clause
1262 and insert:
1263 A bill to be entitled
1264 An act relating to financial services; amending s.
1265 215.555, F.S.; redefining the term “covered policy”
1266 under the Florida Hurricane Catastrophe Fund in
1267 relation to certain collateral protection insurance
1268 policies; amending s. 319.30, F.S.; revising a certain
1269 electronic signature requirement for a motor vehicle
1270 salvage certificate of title; amending ss. 440.12 and
1271 440.20, F.S.; authorizing the payment of certain
1272 workers’ compensation benefits to be transmitted to
1273 the employee’s account with a licensed money
1274 transmitter; amending s. 624.155, F.S.; revising
1275 requirements and procedures for the civil remedy
1276 notice provided to insurers and the Department of
1277 Financial Services; revising the timeframe for an
1278 insurer to pay damages or for certain circumstances to
1279 be corrected; revising circumstances that toll the
1280 applicable statute of limitations and the period the
1281 statute of limitations is tolled; amending s. 624.307,
1282 F.S.; providing that certain aggregate information
1283 containing trade secret information may be publicly
1284 disclosed by the department or the Office of Insurance
1285 Regulation except under certain circumstances;
1286 prohibiting the Commissioner of Insurance Regulation
1287 from certain lobbying for compensation during a
1288 specified timeframe after vacation of public position;
1289 amending s. 624.315, F.S.; providing that certain
1290 aggregate information containing trade secret
1291 information may be publicly disclosed by the
1292 department or office, except under certain
1293 circumstances; amending s. 624.422, F.S., requiring
1294 insurers to file with the department certain contact
1295 information for service of process; requiring the
1296 department to publish such information on its website;
1297 amending s. 626.321, F.S.; providing that certain
1298 travel insurance licenses are subject to review by the
1299 department rather than by the office; revising persons
1300 who may be licensed to transact in travel insurance;
1301 specifying licensure and registration requirements for
1302 certain persons; defining the term “travel retailer”;
1303 specifying requirements for, restrictions on, and
1304 authorized acts by travel retailers and limited lines
1305 travel insurance producers; defining the term “offer
1306 and disseminate”; authorizing certain persons to sell,
1307 solicit, and negotiate travel insurance; amending s.
1308 626.854, F.S.; revising a notice requirement before
1309 certain persons acting on behalf of a residential
1310 property insurer may schedule an onsite inspection of
1311 the insured property; prohibiting a certain attempt to
1312 conduct an unscheduled meeting with the insured or
1313 claimant; amending s. 626.931, F.S.; deleting a
1314 requirement for certain surplus lines agents to file
1315 quarterly affidavits with the Florida Surplus Lines
1316 Service Office; conforming cross-references; amending
1317 s. 626.932, F.S.; revising the time when surplus lines
1318 agents must remit surplus lines taxes; amending s.
1319 626.935, F.S.; conforming a provision to changes made
1320 by the act; amending s. 627.062, F.S.; specifying that
1321 certain periods ending on a weekend or on certain
1322 holidays are extended until the conclusion of the next
1323 business day; prohibiting the office from disapproving
1324 a homeowners’ insurance rate in a rate filing solely
1325 on specified grounds; amending s. 627.0629, F.S.;
1326 authorizing, rather than requiring, rate filings for
1327 certain residential property insurance to include
1328 certain rate factors; amending ss. 627.0651 and
1329 627.410, F.S.; specifying that certain periods ending
1330 on a weekend or on certain holidays are extended until
1331 the conclusion of the next business day; amending s.
1332 627.7011, F.S.; authorizing an insurer to offer
1333 specified homeowner’s policies or endorsements that
1334 adjust certain losses on certain roofs on an actual
1335 cash value basis; providing that a policy or
1336 endorsement is deemed to provide replacement cost
1337 coverage unless the insured makes a selection of
1338 actual cash value coverage; requiring the selection
1339 form to contain a specified notice; specifying a
1340 method by which an applicant may make such selection;
1341 amending s. 627.70132, F.S.; adding property insurance
1342 coverages for which a notice of a claim must be given
1343 to the insurer within a specified timeframe or be
1344 barred; specifying a timeframe for such notice for
1345 supplemental or reopened claims; providing
1346 applicability; amending s. 627.714, F.S.; revising
1347 criteria for assessing a residential condominium unit
1348 owner’s loss assessment coverage; reviving,
1349 reenacting, and amending s. 627.715(4), F.S.;
1350 providing an exemption from a diligent effort
1351 requirement for surplus lines agents exporting
1352 contracts or endorsements providing flood coverage;
1353 providing for expiration; amending s. 627.7152, F.S.;
1354 specifying the manner in which an assignee of certain
1355 property insurance policy benefits must serve a notice
1356 of intent to initiate litigation; amending s.
1357 627.7295, F.S.; decreasing the timeframe during which
1358 an insurer may not cancel a new policy or binder of
1359 motor vehicle insurance for nonpayment of premium,
1360 except under certain circumstances; amending s.
1361 627.914, F.S.; requiring insurers or self-insurance
1362 funds that write workers’ compensation insurance and
1363 that are in receivership to continue to report certain
1364 information to the office; authorizing the outsourcing
1365 of reporting under certain circumstances; requiring
1366 the office to approve a certain reporting plan;
1367 authorizing the office to use the information for
1368 certain purposes; amending s. 628.801, F.S.;
1369 specifying that the office may examine an insurer’s
1370 managing general agent or insurance holding company;
1371 amending s. 629.401, F.S.; revising criteria for
1372 surplus lines insurance in insurance exchanges;
1373 amending ss. 634.171, 634.317, and 634.419, F.S.;
1374 authorizing licensed personal lines and general lines
1375 agents to solicit, negotiate, advertise, or sell motor
1376 vehicle service agreements, home warranty contracts,
1377 and service warranty contracts, respectively, without
1378 specified licenses; creating ch. 647, F.S., entitled
1379 “Travel Insurance”; creating s. 647.01, F.S.;
1380 providing legislative purpose; providing
1381 applicability; creating s. 647.02, F.S.; defining
1382 terms; creating s. 647.03, F.S.; defining the terms
1383 “primary certificateholder” and “primary
1384 policyholder”; requiring travel insurers to pay the
1385 insurance premium tax on specified travel insurance
1386 premiums; providing construction; specifying
1387 requirements for travel insurers; creating s. 647.04,
1388 F.S.; providing that a travel protection plan may be
1389 offered for one price if its meets specified
1390 requirements; creating s. 647.05, F.S.; specifying
1391 sales practice requirements, prohibited sales
1392 practices, and authorized sales practices relating to
1393 travel insurance; specifying a policyholder or
1394 certificateholder’s right to cancel a travel
1395 protection plan for a full refund; defining the term
1396 “delivery”; specifying unfair insurance trade
1397 practices; providing construction; creating s. 647.06,
1398 F.S.; specifying qualifications for travel
1399 administrators; providing an exemption from certain
1400 licensure; providing that insurers are responsible for
1401 ensuring certain acts by travel administrators;
1402 creating s. 647.07, F.S.; specifying the
1403 classification for travel insurance for rate filing
1404 purposes; specifying authorized forms of travel
1405 insurance; providing applicability of certain
1406 provisions of the Rating Law; authorizing the
1407 development and provision of travel insurance programs
1408 on certain bases; creating s. 647.08, F.S.; requiring
1409 the department to adopt rules; providing effective
1410 dates.