November 12, 2019
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_h0885c1
CS/HB 885

1
A bill to be entitled
2An act relating to insurance; amending s. 626.9541, F.S.;
3prohibiting construction to prevent a Medicare supplement
4insurer from granting a premium credit to insureds under
5certain circumstances; creating s. 627.4605, F.S.;
6specifying nonapplication of a required notice to a
7current insurer of a policy replacement under certain
8circumstances; amending s. 627.464, F.S.; providing a
9limitation on the resale of certain annuities to third
10parties; amending s. 627.552, F.S.; prohibiting the
11creating or permitting of certain classes of employees for
12group health insurance policy purposes; preserving an
13employer's authority to require certain plan participation
14as a condition of employment; amending s. 627.5575, F.S.;
15revising the limitation on the amount of insurance for
16spouses of dependent children of employees of members
17under a group life insurance policy; creating s. 627.6011,
18F.S.; excluding certain mandatory health benefits from
19coverage in certain insurance policies or other
20supplemental or limited benefit policies; providing a
21definition; amending s. 627.6741, F.S.; specifying absence
22of a prohibition against certain Medicare supplement
23policy insurers from entering into agreements through a
24network with certain facilities; specifying absence of a
25requirement to file certain contracts with the Office of
26Insurance Regulation; amending s. 627.6745, F.S.;
27requiring certain insurers to factor certain deductibles
28and premium credits into loss-ratio calculation and policy
29premiums; amending s. 627.9403, F.S.; revising application
30of provisions to certain policies of insurance; providing
31a definition; amending s. 634.282, F.S.; revising
32provisions relating to refunds of excess premiums or
33charges; providing a declaration of state public policy
34protecting persons from government intrusion relating to
35securing health insurance coverage without penalty;
36prohibiting state residents from being required to obtain
37or maintain a policy of individual health insurance
38coverage; specifying absence of liability for penalty or
39fine for failing to obtain or maintain health insurance
40coverage; authorizing the Attorney General to initiate and
41pursue litigation in federal or state court or
42administrative forum on behalf of certain persons under
43certain circumstances; providing an effective date.
44
45Be It Enacted by the Legislature of the State of Florida:
46
47     Section 1.  Subsection (3) is added to section 626.9541,
48Florida Statutes, to read:
49     626.9541  Unfair methods of competition and unfair or
50deceptive acts or practices defined.-
51     (3)  INPATIENT FACILITY NETWORK.-This section may not be
52construed to prohibit a Medicare supplement insurer from
53granting a premium credit to insureds for using an in-network
54inpatient facility.
55     Section 2.  Section 627.4605, Florida Statutes, is created
56to read:
57     627.4605  Replacement notice.-A notice to a current insurer
58of a replacement of a current life insurance policy is not
59required in a transaction involving:
60     (1)  An application to the current insurer that issued the
61current policy or contract when a contractual change or
62conversion privilege is being exercised;
63     (2)  A current policy or contract is being replaced by the
64same insurer pursuant to a program filed with and approved by
65the office; or
66     (3)  A term conversion privilege is being exercised among
67corporate affiliates.
68     Section 3.  Subsection (3) is added to section 627.464,
69Florida Statutes, to read:
70     627.464  Annuity contracts, pure endowment contracts;
71standard provisions.-
72     (3)  An annuity purchased, dedicated, or otherwise allocated
73as part of a settlement to satisfy the requirements of 42 U.S.C. s.
741395y(b)(2) may not be sold to, or commuted by or for, a third
75party unconnected to the settlement.
76     Section 4.  Paragraph (a) of subsection (1) of section
77627.552, Florida Statutes, is amended to read:
78     627.552  Employee groups.-Subject to all of the
79requirements of this section, the lives of a group of individual
80employees of an employer may be insured, for the benefit of
81persons other than the employer, under a policy issued to the
82employer or to the trustees of a fund established by an
83employer, which employer or board of trustees is deemed to be
84the policyholder.
85     (1)(a)  The employees eligible for insurance under the
86policy shall be all of the employees of the employer, or all of
87any class or classes of employees determined by conditions
88pertaining to their employment; however, a class of employees
89may not be created or permitted that consists solely of
90employees covered under the employer's group health plan. This
91section does not prohibit an employer from requiring
92participation in its group health plan as a condition of
93employment.
94
95This section does not affect the provisions of ss. 112.08-
96112.14.
97     Section 5.  Subsection (3) of section 627.5575, Florida
98Statutes, is amended to read:
99     627.5575  Group life insurance for dependents.-Except for a
100policy issued under s. 627.553, a group life insurance policy
101may be extended to insure the employees or members against loss
102due to the deaths of their spouses and dependent children or any
103class or classes thereof, subject to the following:
104     (3)  The amounts of insurance for any covered spouse or
105dependent child under the policy may not exceed 50 percent of
106the amount of insurance for which the employee or member is
107insured.
108     Section 6.  Section 627.6011, Florida Statutes, is created
109to read:
110     627.6011  Mandated coverages exclusion.-Mandatory health
111benefits that must be covered by an insurer or health maintenance
112organization in any group or individual medical plans regulated by
113this chapter are not required to be covered in specified-accident,
114specified-disease, hospital indemnity, limited benefit, disability
115income, Medicare supplement, or long-term care insurance policies,
116or other supplemental or limited benefit policies as described in
117s. 627.6561(5)(b)-(d). For purposes of this section, the term
118"mandatory health benefits" means those benefits set forth in ss.
119627.6401-627.64193, s. 627.65626, ss. 627.65735-627.6579, ss.
120627.6612-627.6619, and ss. 627.668-627.66911, and any cross-
121references to such sections, or any other mandatory treatment or
122health coverages or benefits enacted after January 1, 2010.
123     Section 7.  Subsection (6) is added to section 627.6741,
124Florida Statutes, to read:
125     627.6741  Issuance, cancellation, nonrenewal, and
126replacement.-
127     (6)  An insurer offering a Medicare supplement policy under
128this part is not prohibited from entering into an agreement
129through a network with inpatient facilities that agree to waive
130the Medicare Part A deductible in whole or in part. An insurer
131is not required to file a copy of the network agreement with,
132and such network agreements are not subject to approval of, the
133office.
134     Section 8.  Subsection (8) is added to section 627.6745,
135Florida Statutes, to read:
136     627.6745  Loss ratio standards; public rate hearings.-
137     (8)  For an insurer that enters into a network agreement
138pursuant to s. 627.6741(6), the waiver of the Medicare Part A
139deductible and premium credit shall be factored into the
140insurer's loss-ratio calculation and policy premium.
141     Section 9.  Section 627.9403, Florida Statutes, is amended
142to read:
143     627.9403  Scope.-The provisions of this part shall apply to
144long-term care insurance policies delivered or issued for
145delivery in this state, and to policies delivered or issued for
146delivery outside this state to the extent provided in s.
147627.9406, by an insurer, a fraternal benefit society as defined
148in s. 632.601, a health maintenance organization as defined in
149s. 641.19, a prepaid health clinic as defined in s. 641.402, or
150a multiple-employer welfare arrangement as defined in s.
151624.437. A policy which is advertised, marketed, or offered as a
152long-term care policy and as a Medicare supplement policy shall
153meet the requirements of this part and the requirements of ss.
154627.671-627.675 and, to the extent of a conflict, be subject to
155the requirement that is more favorable to the policyholder or
156certificateholder. Except as provided with respect to the
157definition of the term "guaranteed renewable" in this section,
158the provisions of this part shall not apply to a continuing care
159contract issued pursuant to chapter 651 and shall not apply to
160guaranteed renewable policies issued prior to October 1, 1988.
161With respect to all policies of insurance covered under this part
162whenever issued, the term "guaranteed renewable" means the insured
163has the right to continue the policy in force by the timely payment
164of premiums and the insurer has no unilateral right to make any
165change in any provision of the policy while the insurance is in force
166and cannot decline to renew the policy, except that rates may be
167revised by the insurer on a class basis. The continuation or renewal
168of a guaranteed renewable policy of insurance by the timely payment
169of required premiums does not constitute making or issuing a new
170policy of insurance for any purpose, including, but not limited to,
171for purposes of incorporating into the policy changes in the rules
172or provisions of law governing insurance policies. Any limited
173benefit policy that limits coverage to care in a nursing home or
174to one or more lower levels of care required or authorized to be
175provided by this part or by commission rule is a type of long-
176term care insurance policy that must meet all requirements of
177this part that apply to long-term care insurance policies,
178except ss. 627.9407(3)(c), (9), (10)(f), and (12) and
179627.94073(2).
180     Section 10.  Paragraph (b) of subsection (13) of section
181634.282, Florida Statutes, is amended to read:
182     634.282  Unfair methods of competition and unfair or
183deceptive acts or practices defined.-The following methods,
184acts, or practices are defined as unfair methods of competition
185and unfair or deceptive acts or practices:
186     (13)  ILLEGAL DEALINGS IN PREMIUMS; EXCESS OR REDUCED
187CHARGES FOR MOTOR VEHICLE SERVICE AGREEMENTS.-
188     (b)  Knowingly collecting as a premium or charge for a
189motor vehicle service agreement any sum in excess of or less
190than the premium or charge applicable to such motor vehicle
191service agreement, in accordance with the applicable
192classifications and rates as filed with the office, and as
193specified in the motor vehicle service agreement. However, a
194violation of this paragraph does not occur if excess premiums or
195charges are refunded to the service agreement holder within 45 days
196after receipt of the agreement by the service agreement company or if
197the licensed sales representative's commission is reduced by the
198amount of any premium undercharge.
199
200No provision of this section shall be deemed to prohibit a
201service agreement company or a licensed insurer from giving to
202service agreement holders, prospective service agreement
203holders, and others for the purpose of advertising, any article
204of merchandise having a value of not more than $25.
205     Section 11.  (1)  It is hereby declared that the public
206policy of this state, consistent with our constitutionally
207recognized and inalienable rights of liberty, is that every
208person within this state is and shall be free from governmental
209intrusion in choosing or declining to choose any mode of
210securing health insurance coverage without penalty or threat of
211penalty.
212     (2)  A resident of this state, regardless of whether he or
213she has or is eligible for health insurance coverage under any
214policy or program provided by or through his or her employer, or
215a plan sponsored by the state or the Federal Government, may not
216be required to obtain or maintain a policy of individual health
217insurance coverage. A person in this state is not liable for any
218penalty or fine for failing to obtain or maintain health
219insurance coverage.
220     (3)  The Attorney General may initiate and shall have
221standing to pursue litigation in any federal or state court or
222any administrative forum on behalf of one or more persons within
223the state whose constitutional rights may be subject to
224infringement by an act of Congress, or the implementation of a
225federal legislative program, that relates to or has any impact
226upon the rights or interests of persons as described in this
227section.
228     Section 12.  This act shall take effect upon becoming a
229law.


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