Florida Senate - 2025                       CS for CS for SB 480
       
       
        
       By the Committees on Rules; and Banking and Insurance; and
       Senator DiCeglie
       
       
       
       
       595-02886-25                                           2025480c2
    1                        A bill to be entitled                      
    2         An act relating to nonprofit agricultural organization
    3         medical benefit plans; creating s. 624.4032, F.S.;
    4         providing legislative purpose; defining the term
    5         “nonprofit agricultural organization”; authorizing
    6         nonprofit agricultural organizations to provide
    7         medical benefit plans; specifying that such plans are
    8         not insurance for purposes of the Florida Insurance
    9         Code; requiring a specified disclaimer; providing
   10         requirements for the disclaimer; prohibiting the
   11         nonprofit agricultural organization from marketing or
   12         selling a medical benefit plan through specified
   13         agents; requiring the nonprofit agricultural
   14         organization to conduct an annual financial audit and
   15         make such audit publicly available; providing an
   16         effective date.
   17          
   18  Be It Enacted by the Legislature of the State of Florida:
   19  
   20         Section 1. Section 624.4032, Florida Statutes, is created
   21  to read:
   22         624.4032 Nonprofit agricultural organization medical
   23  benefit plans.—
   24         (1) The purpose of this section is to authorize nonprofit
   25  agricultural organizations to offer medical benefit plans to
   26  their members.
   27         (2) For purposes of this section, the term “nonprofit
   28  agricultural organization” means an organization that meets all
   29  of the following criteria:
   30         (a) Is domiciled in this state.
   31         (b) Is exempt from federal income tax under s. 501(c)(3) of
   32  the Internal Revenue Code.
   33         (c) Was created primarily to promote programs for the
   34  development of rural communities and the economic stability and
   35  sustainability of farmers in this state.
   36         (d) Exists to serve its members beyond only offering
   37  medical expense plans.
   38         (e) Collects annual dues from its members.
   39         (f) Was in existence before 1945.
   40         (g) Is composed of members who, collectively, are residents
   41  of the majority of counties in this state.
   42         (3) A nonprofit agricultural organization:
   43         (a) May offer medical benefit plans to its members. Such
   44  plans are not insurance for purposes of the Florida Insurance
   45  Code.
   46         (b) Shall provide a written disclaimer on or accompanying
   47  all applications and marketing materials for a medical benefit
   48  plan, regardless of whether such applications and marketing
   49  materials are distributed by or on behalf of the nonprofit
   50  agricultural organization. The disclaimer must be in contrasting
   51  color and at least 12-point type. The disclaimer must be in
   52  substantially the following form:
   53  
   54         Notice: This medical benefit plan is not a health
   55         insurance policy or health maintenance organization
   56         contract and is not subject to the regulatory
   57         requirements and consumer protections that apply to
   58         health insurance policies or health maintenance
   59         organization contracts under the Florida Insurance
   60         Code. The nonprofit agricultural organization offering
   61         this medical benefit plan is not an authorized insurer
   62         or authorized health maintenance organization in
   63         Florida and the nonprofit agricultural organization is
   64         not subject to the regulatory requirements or consumer
   65         protections of the Florida Insurance Code.
   66  
   67         (c) May not market or sell medical benefit plans through
   68  agents licensed by the department.
   69         (d) Must conduct an annual financial audit that is
   70  performed by an independent certified public accountant in
   71  accordance with generally accepted auditing standards and make
   72  it publicly available either by providing a copy upon request or
   73  posting it on the nonprofit agricultural organization’s website.
   74         Section 2. This act shall take effect July 1, 2025.