March 20, 2019
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Amendment CaShTmL-064052.HTM
                                                  SENATE AMENDMENT
    Bill No. SB 594
    Amendment No. ___   Barcode 064052
                            CHAMBER ACTION
              Senate                               House
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       04/30/2003 04:18 PM         .                    
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11  Senator Peaden moved the following amendment:
12  
13         Senate Amendment (with title amendment) 
14         On page 1, line 10,
15  
16  insert:  
17         Section 1.  Paragraphs (o) and (x) of subsection (1) of
18  section 626.9541, Florida Statutes, are amended to read:
19         626.9541  Unfair methods of competition and unfair or
20  deceptive acts or practices defined.--
21         (1)  UNFAIR METHODS OF COMPETITION AND UNFAIR OR
22  DECEPTIVE ACTS.--The following are defined as unfair methods
23  of competition and unfair or deceptive acts or practices:
24         (o)  Illegal dealings in premiums; excess or reduced
25  charges for insurance.--
26         1.  Knowingly collecting any sum as a premium or charge
27  for insurance, which is not then provided, or is not in due
28  course to be provided, subject to acceptance of the risk by
29  the insurer, by an insurance policy issued by an insurer as
30  permitted by this code.
31         2.  Knowingly collecting as a premium or charge for
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    12:06 PM   04/29/03                               s0594c-02j03

SENATE AMENDMENT Bill No. SB 594 Amendment No. ___ Barcode 064052 1 insurance any sum in excess of or less than the premium or 2 charge applicable to such insurance, in accordance with the 3 applicable classifications and rates as filed with and 4 approved by the department, and as specified in the policy; 5 or, in cases when classifications, premiums, or rates are not 6 required by this code to be so filed and approved, premiums 7 and charges collected from a Florida resident in excess of or 8 less than those specified in the policy and as fixed by the 9 insurer. This provision shall not be deemed to prohibit the 10 charging and collection, by surplus lines agents licensed 11 under part VIII of this chapter, of the amount of applicable 12 state and federal taxes, or fees as authorized by s. 13 626.916(4), in addition to the premium required by the insurer 14 or the charging and collection, by licensed agents, of the 15 exact amount of any discount or other such fee charged by a 16 credit card facility in connection with the use of a credit 17 card, as authorized by subparagraph (q)3., in addition to the 18 premium required by the insurer. This subparagraph shall not 19 be construed to prohibit collection of a premium for a 20 universal life or a variable or indeterminate value insurance 21 policy made in accordance with the terms of the contract. 22 3.a. Imposing or requesting an additional premium for 23 a policy of motor vehicle liability, personal injury 24 protection, medical payment, or collision insurance or any 25 combination thereof or refusing to renew the policy solely 26 because the insured was involved in a motor vehicle accident 27 unless the insurer's file contains information from which the 28 insurer in good faith determines that the insured was 29 substantially at fault in the accident. 30 b. An insurer which imposes and collects such a 31 surcharge or which refuses to renew such policy shall, in 2 12:06 PM 04/29/03 s0594c-02j03
SENATE AMENDMENT Bill No. SB 594 Amendment No. ___ Barcode 064052 1 conjunction with the notice of premium due or notice of 2 nonrenewal, notify the named insured that he or she is 3 entitled to reimbursement of such amount or renewal of the 4 policy under the conditions listed below and will subsequently 5 reimburse him or her or renew the policy, if the named insured 6 demonstrates that the operator involved in the accident was: 7 (I) Lawfully parked; 8 (II) Reimbursed by, or on behalf of, a person 9 responsible for the accident or has a judgment against such 10 person; 11 (III) Struck in the rear by another vehicle headed in 12 the same direction and was not convicted of a moving traffic 13 violation in connection with the accident; 14 (IV) Hit by a "hit-and-run" driver, if the accident 15 was reported to the proper authorities within 24 hours after 16 discovering the accident; 17 (V) Not convicted of a moving traffic violation in 18 connection with the accident, but the operator of the other 19 automobile involved in such accident was convicted of a moving 20 traffic violation; 21 (VI) Finally adjudicated not to be liable by a court 22 of competent jurisdiction; 23 (VII) In receipt of a traffic citation which was 24 dismissed or nolle prossed; or 25 (VIII) Not at fault as evidenced by a written 26 statement from the insured establishing facts demonstrating 27 lack of fault which are not rebutted by information in the 28 insurer's file from which the insurer in good faith determines 29 that the insured was substantially at fault. 30 c. In addition to the other provisions of this 31 subparagraph, an insurer may not fail to renew a policy if the 3 12:06 PM 04/29/03 s0594c-02j03
SENATE AMENDMENT Bill No. SB 594 Amendment No. ___ Barcode 064052 1 insured has had only one accident in which he or she was at 2 fault within the current 3-year period. However, an insurer 3 may nonrenew a policy for reasons other than accidents in 4 accordance with s. 627.728. This subparagraph does not 5 prohibit nonrenewal of a policy under which the insured has 6 had three or more accidents, regardless of fault, during the 7 most recent 3-year period. 8 4. Imposing or requesting an additional premium for, 9 or refusing to renew, a policy for motor vehicle insurance 10 solely because the insured committed a noncriminal traffic 11 infraction as described in s. 318.14 unless the infraction is: 12 a. A second infraction committed within an 18-month 13 period, or a third or subsequent infraction committed within a 14 36-month period. 15 b. A violation of s. 316.183, when such violation is a 16 result of exceeding the lawful speed limit by more than 15 17 miles per hour. 18 5. Upon the request of the insured, the insurer and 19 licensed agent shall supply to the insured the complete proof 20 of fault or other criteria which justifies the additional 21 charge or cancellation. 22 6. No insurer shall impose or request an additional 23 premium for motor vehicle insurance, cancel or refuse to issue 24 a policy, or refuse to renew a policy because the insured or 25 the applicant is a handicapped or physically disabled person, 26 so long as such handicap or physical disability does not 27 substantially impair such person's mechanically assisted 28 driving ability. 29 7. No insurer may cancel or otherwise terminate any 30 insurance contract or coverage, or require execution of a 31 consent to rate endorsement, during the stated policy term for 4 12:06 PM 04/29/03 s0594c-02j03
SENATE AMENDMENT Bill No. SB 594 Amendment No. ___ Barcode 064052 1 the purpose of offering to issue, or issuing, a similar or 2 identical contract or coverage to the same insured with the 3 same exposure at a higher premium rate or continuing an 4 existing contract or coverage with the same exposure at an 5 increased premium. 6 8. No insurer may issue a nonrenewal notice on any 7 insurance contract or coverage, or require execution of a 8 consent to rate endorsement, for the purpose of offering to 9 issue, or issuing, a similar or identical contract or coverage 10 to the same insured at a higher premium rate or continuing an 11 existing contract or coverage at an increased premium without 12 meeting any applicable notice requirements. 13 9. No insurer shall, with respect to premiums charged 14 for motor vehicle insurance, unfairly discriminate solely on 15 the basis of age, sex, marital status, or scholastic 16 achievement. 17 10. Imposing or requesting an additional premium for 18 motor vehicle comprehensive or uninsured motorist coverage 19 solely because the insured was involved in a motor vehicle 20 accident or was convicted of a moving traffic violation. 21 11. No insurer shall cancel or issue a nonrenewal 22 notice on any insurance policy or contract without complying 23 with any applicable cancellation or nonrenewal provision 24 required under the Florida Insurance Code. 25 12. No insurer shall impose or request an additional 26 premium, cancel a policy, or issue a nonrenewal notice on any 27 insurance policy or contract because of any traffic infraction 28 when adjudication has been withheld and no points have been 29 assessed pursuant to s. 318.14(9) and (10). However, this 30 subparagraph does not apply to traffic infractions involving 31 accidents in which the insurer has incurred a loss due to the 5 12:06 PM 04/29/03 s0594c-02j03
SENATE AMENDMENT Bill No. SB 594 Amendment No. ___ Barcode 064052 1 fault of the insured. 2 (x) Refusal to insure.--In addition to other 3 provisions of this code, the refusal to insure, or continue to 4 insure, any individual or risk solely because of: 5 1. Race, color, creed, marital status, sex, or 6 national origin; 7 2. The residence, age, or lawful occupation of the 8 individual or the location of the risk, unless there is a 9 reasonable relationship between the residence, age, or lawful 10 occupation of the individual or the location of the risk and 11 the coverage issued or to be issued; 12 3. The insured's or applicant's failure to agree to 13 place collateral business with any insurer, unless the 14 coverage applied for would provide liability coverage which is 15 excess over that provided in policies maintained on property 16 or motor vehicles; 17 4. The insured's or applicant's failure to purchase 18 noninsurance services or commodities, including automobile 19 services as defined in s. 624.124; or 20 5. The fact that the insured or applicant is a public 21 official; or 22 6.5. The fact that the insured or applicant had been 23 previously refused insurance coverage by any insurer, when 24 such refusal to insure or continue to insure for this reason 25 occurs with such frequency as to indicate a general business 26 practice. 27 Section 2. Subsection (1) of section 631.913, Florida 28 Statutes, is amended to read: 29 631.913 Powers and duties of the corporation.-- 30 (1) The corporation is obligated to the extent of the 31 full amount of the covered claims: 6 12:06 PM 04/29/03 s0594c-02j03
SENATE AMENDMENT Bill No. SB 594 Amendment No. ___ Barcode 064052 1 (a) Existing before the adjudication of insolvency and 2 arising within 30 days after the determination of insolvency; 3 (b) Existing before the policy expiration date if less 4 than 30 days after the determination of insolvency; or 5 (c) Existing before the insured replaces the policy or 6 causes its cancellation, if the insured does so within 30 days 7 after the determination of insolvency. 8 9 Notwithstanding such criteria, the corporation's obligation 10 for a covered claim for the return of unearned premium shall 11 not exceed $50,000 per policy. In addition, the corporation is 12 not obligated to a policyholder or claimant in an amount in 13 excess of the obligation of the insolvent insurer under the 14 policy from which the claim arises. 15 Section 3. Paragraph (a) of subsection (1) of section 16 631.914, Florida Statutes, is amended to read: 17 631.914 Assessments.-- 18 (1)(a) To the extent necessary to secure the funds for 19 the payment of covered claims, and also to pay the reasonable 20 costs to administer the same, the department, upon 21 certification by the board, shall levy assessments on each 22 insurer in the proportion that the insurer's net direct 23 written premiums in this state bears to the total of said net 24 direct written premiums received in this state by all such 25 workers' compensation insurers for the preceding calendar 26 year. Assessments shall be remitted to and administered by 27 the board of directors in the manner specified by the approved 28 plan of operation. The board shall give each insurer so 29 assessed at least 30 days' written notice of the date the 30 assessment is due and payable. Each assessment shall be a 31 uniform percentage applicable to the net direct written 7 12:06 PM 04/29/03 s0594c-02j03
SENATE AMENDMENT Bill No. SB 594 Amendment No. ___ Barcode 064052 1 premiums of each insurer writing workers' compensation 2 insurance. 3 1. Beginning July 1, 1997, assessments levied against 4 insurers, other than self-insurance funds, shall not exceed in 5 any calendar year more than 2 percent of that insurer's net 6 direct written premiums in this state for workers' 7 compensation insurance during the calendar year next preceding 8 the date of such assessments. 9 2. Beginning July 1, 1997, assessments levied against 10 self-insurance funds shall not exceed in any calendar year 11 more than 1.50 percent of that self-insurance fund's net 12 direct written premiums in this state for workers' 13 compensation insurance during the calendar year next preceding 14 the date of such assessments. 15 3. Beginning July 1, 2003, assessments levied against 16 insurers and self-insurance funds pursuant to this paragraph 17 are computed and levied on the basis of the full policy 18 premium value on the net direct premiums written in the state 19 for workers' compensation insurance during the calendar year 20 next preceding the date of the assessment without taking into 21 account any applicable discount or credit for deductibles. 22 Insurers and self-insurance funds must report premiums in 23 compliance with this subparagraph. 24 Section 4. Section 631.924, Florida Statutes, is 25 amended to read: 26 631.924 Stay of proceedings; reopening of default 27 judgments.--All proceedings in which the insolvent insurer or 28 self-insurance fund is a party or is obligated to defend a 29 party in any court or before any quasi-judicial body or 30 administrative board in this state must be stayed for 6 31 months, or such additional period from the date the insolvency 8 12:06 PM 04/29/03 s0594c-02j03
SENATE AMENDMENT Bill No. SB 594 Amendment No. ___ Barcode 064052 1 is adjudicated, by a court of competent jurisdiction to allow 2 proper defense by the association of all pending causes of 3 action as to any covered claims. The stay may be extended for 4 a period of time greater than 6 months upon proper application 5 to a court of competent jurisdiction. The association, either 6 on its own behalf or on behalf of the insured, may apply to 7 have any judgment, order, decision, verdict, or finding based 8 on the default of the insolvent insurer or self-insurance fund 9 or its failure to defend an insured set aside by the same 10 court or administrator that made the judgment, order, 11 decision, verdict, or finding and may defend against the claim 12 on the merits. If the association so requests, the stay of 13 proceedings may be shortened or waived. 14 Section 5. Subsection (4) of section 624.406, Florida 15 Statutes, is amended to read: 16 624.406 Combinations of insuring powers, one 17 insurer.--An insurer which otherwise qualifies therefor may be 18 authorized to transact any one kind or combination of kinds of 19 insurance as defined in part V except: 20 (4) A health insurer may also transact excess 21 insurance, specific and aggregate, for self-insurers of a plan 22 of health insurance and multiple-employer welfare arrangements 23 and reinsurance for the medical and lost wages benefits 24 provided under a workers' compensation insurance policy. 25 Section 6. Section 624.603, Florida Statutes, is 26 amended to read: 27 624.603 "Health insurance" defined.--"Health 28 insurance," also known as "disability insurance," is insurance 29 of human beings against bodily injury, disablement, or death 30 by accident or accidental means, or the expense thereof, or 31 against disablement or expense resulting from sickness, and 9 12:06 PM 04/29/03 s0594c-02j03
SENATE AMENDMENT Bill No. SB 594 Amendment No. ___ Barcode 064052 1 every insurance appertaining thereto. Health insurance does 2 not include workers' compensation coverages, except as 3 provided in s. 624.406(4). 4 Section 7. Subsection (7) of section 631.141, Florida 5 Statutes, is amended to read: 6 631.141 Conduct of delinquency proceeding; domestic 7 and alien insurers.-- 8 (7)(a) In connection with a delinquency proceeding, 9 the department may appoint one or more special agents to act 10 for it, and it may employ such counsel, clerks, and assistants 11 as it deems necessary. The compensation of the special 12 agents, counsel, clerks, or assistants and all expenses of 13 taking possession of the insurer and of conducting the 14 proceeding shall be fixed by the receiver, subject to the 15 approval of the court, and shall be paid out of the funds or 16 assets of the insurer. Within the limits of duties imposed 17 upon them, special agents shall possess all the powers given 18 to and, in the exercise of those powers, shall be subject to 19 all duties imposed upon the receiver with respect to such 20 proceeding. 21 (b) In the event that initiation of delinquency 22 proceedings does not result in appointment of the department 23 as receiver, or in the event that the funds or assets of an 24 insurer for which the department is appointed as receiver are 25 insufficient to cover the cost of compensation to special 26 agents, counsel, clerks, or assistants and all expenses of 27 taking, or attempting to take, possession of the insurer, and 28 of conducting the proceeding, there is appropriated, upon 29 approval of the Chief Financial Officer, from the Insurance 30 Regulation Trust Fund to the Division of Rehabilitation and 31 Liquidation a sum that is sufficient to cover the unreimbursed 10 12:06 PM 04/29/03 s0594c-02j03
SENATE AMENDMENT Bill No. SB 594 Amendment No. ___ Barcode 064052 1 costs. 2 3 (Redesignate subsequent sections.) 4 5 6 ================ T I T L E A M E N D M E N T =============== 7 And the title is amended as follows: 8 On page 1, line 2, delete that line, 9 10 and insert: 11 An act relating to insurance; amending s. 12 626.9541, F.S.; clarifying certain activities 13 that constitute illegal dealings in premiums; 14 prohibiting insurers from refusing to insure 15 solely because the insured or applicant is a 16 public official; amending s. 631.913, F.S.; 17 limiting the obligation of the Florida Workers' 18 Compensation Insurance Guaranty Association, 19 Incorporated for a covered claim for return of 20 unearned premium; amending s. 631.914, F.S.; 21 revising requirements for reporting premium for 22 assessment calculations; amending s. 631.924, 23 F.S.; including insolvent insurers under 24 provisions for a stay of proceedings; amending 25 s. 624.406, F.S.; providing for reinsurance 26 under a workers' compensation insurance policy; 27 amending s. 624.603, F.S.; providing an 28 exception to include workers' compensation 29 coverages under health insurance; amending s. 30 631.141, F.S.; providing for trust funds to be 31 transferred to the receiver in delinquency 11 12:06 PM 04/29/03 s0594c-02j03
SENATE AMENDMENT Bill No. SB 594 Amendment No. ___ Barcode 064052 1 proceedings to pay for unreimbursed expenses; 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 25 26 27 28 29 30 31 12 12:06 PM 04/29/03 s0594c-02j03
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