HB 749 2022
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F L O R I D A H O U S E O F R E P R E S E N T A T I V E S
A bill to be entitled 1
An act relating to fraud prevention; amending s. 2
501.165, F.S.; requiring sellers to allow consumers to 3
cancel in specified manners and by specified means 4
service contracts that have automatic renewal 5
provisions; amending s. 626.854, F.S.; revising 6
maximum fines for public adjusters and public adjuster 7
apprentices for certain violations under a specified 8
circumstance; revising maximum fines for certain 9
violations by certain persons under a specified 10
circumstance; amending s. 626.989, F.S.; defining the 11
term "active"; deleting provisions relating to 12
circumstances under which investigations are 13
considered active; authorizing the Department of 14
Financial Services to impose an administrative fine on 15
insurers under certain circumstances; authorizing the 16
Division of Investigative and Forensic Services to 17
adopt rules; providing requirements for the rules; 18
amending s. 633.112, F.S.; defining the term "active"; 19
deleting provisions relating to circumstances under 20
which investigations are considered active; amending 21
s. 633.126, F.S.; authorizing the department to impose 22
an administrative fine on insurance companies under 23
certain circumstances; deleting criminal penalties; 24
authorizing the division to adopt rules; providing 25
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requirements for the rules; amending s. 634.095, F .S.; 26
revising requirements for advertisements issued or 27
caused to be issued by service agreement companies or 28
licensed salespersons; amending s. 775.15, F.S.; 29
revising felony violations for which prosecutions must 30
be commenced within a specified timeframe; amending s. 31
817.234, F.S.; providing that certain insurers are 32
entitled to specified expenses at trials and appellate 33
courts under certain circumstances; providing 34
effective dates. 35
36
Be It Enacted by the Legislature of the State of Florida: 37
38
Section 1. Subsection (2) of section 501.165, Florida 39
Statutes, is amended to read: 40
501.165 Automatic renewal of service contracts. — 41
(2) SERVICE CONTRACTS WITH AUTOMATIC RENEWAL PROVISIONS. — 42
(a) A Any seller that sells, leases, or offers to sell or 43
lease any service to a consumer pursuant to a service contract 44
that has an automatic renewal provision, unless the consumer 45
cancels that contract, shall disclose the automatic renewal 46
provision clearly and conspicuously in the contract or contract 47
offer. 48
(b) A Any seller that sells or offers to sell any service 49
to a consumer pursuant to a service contract the term of which 50
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F L O R I D A H O U S E O F R E P R E S E N T A T I V E S
is a specified period of 12 months or more and that 51
automatically renews for a specified period of more than 1 52
month, unless the consumer can cels the contract, shall provide 53
the consumer with written or electronic notification of the 54
automatic renewal provision. Notification shall be provided to 55
the consumer no less than 30 days or no more than 60 days before 56
the cancellation deadline pursuant to the automatic renewal 57
provision. Such notification shall disclose clearly and 58
conspicuously: 59
1. That unless the consumer cancels the contract the 60
contract will automatically renew. 61
2. Methods by which the consumer may obtain details of the 62
automatic renewal provision and cancellation procedure, whether 63
by contacting the seller at a specified telephone number or 64
address, by referring to the contract, or by any other method. 65
(c) A seller that fails to comply with the requirements of 66
this subsection violates is in violation of this subsection 67
unless the seller demonstrates that: 68
1. As part of the seller's routine business practice, the 69
seller has established and implemented written procedures to 70
comply with this section and enforces compliance with t he 71
procedures; 72
2. Any failure to comply with this subsection is the 73
result of error; and 74
3. As part of the seller's routine business practice, 75
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where an error has caused the failure to comply with this 76
subsection, the unearned portion of the contract su bject to the 77
automatic renewal provision is refunded as of the date on which 78
the seller is notified of the error. 79
(d) A seller shall allow a consumer to cancel a service 80
contract that has an automatic renewal provision in the same 81
manner, and by the same means, as the service contract was 82
entered into. 83
(e)(d) This subsection does not apply to: 84
1. A financial institution as defined in s. 655.005 or any 85
depository institution as defined in 12 U.S.C. s. 1813(c)(2). 86
2. A foreign bank maintaining a branch or agency licensed 87
under the laws of any state of the United States. 88
3. Any subsidiary or affiliate of an entity described in 89
subparagraph 1. or subparagraph 2. 90
4. A health studio as defined in s. 501.0125. 91
5. Any entity licensed under chapter 624, chapter 627, 92
chapter 634, chapter 636, or chapter 641. 93
6. Any electric utility as defined in s. 366.02. 94
7. Any private company as defined in s. 180.05 providing 95
services described in chapter 180 which is competing against a 96
governmental entity or has a governmental entity providing 97
billing services on its behalf. 98
(f)(e) A violation of this subsection renders the 99
automatic renewal provision void and unenforceable. 100
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Section 2. Paragraphs (b) and (c) of subsection (22) of 101
section 626.854, Florid a Statutes, are amended, and paragraph 102
(a) of that subsection is republished, to read: 103
626.854 "Public adjuster" defined; prohibitions. —The 104
Legislature finds that it is necessary for the protection of the 105
public to regulate public insurance adjusters and to prevent the 106
unauthorized practice of law. 107
(22)(a) Any following act by a public adjuster, a public 108
adjuster apprentice, or a person acting on behalf of a public 109
adjuster or public adjuster apprentice is prohibited and shall 110
result in discipline as ap plicable under this part: 111
1. Offering to a residential property owner a rebate, 112
gift, gift card, cash, coupon, waiver of any insurance 113
deductible, or any other thing of value in exchange for: 114
a. Allowing a contractor, a public adjuster, a public 115
adjuster apprentice, or a person acting on behalf of a public 116
adjuster or public adjuster apprentice to conduct an inspection 117
of the residential property owner's roof; or 118
b. Making an insurance claim for damage to the residential 119
property owner's roof. 120
2. Offering, delivering, receiving, or accepting any 121
compensation, inducement, or reward for the referral of any 122
services for which property insurance proceeds would be used for 123
roofing repairs or replacement. 124
(b) Notwithstanding the fine set forth in s. 626. 8698, a 125
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public adjuster or public adjuster apprentice may be subject to 126
a fine not to exceed $10,000 per act for a violation of this 127
subsection and a fine not to exceed $20,000 per act for a 128
violation of this subsection that occurs during a state of 129
emergency declared by executive order or proclamation of the 130
Governor pursuant to s. 252.36 . 131
(c) A person who engages in an act prohibited by this 132
subsection and who is not a public adjuster or a public adjuster 133
apprentice, or is not otherwise exempt from lice nsure, is guilty 134
of the unlicensed practice of public adjusting and may be: 135
1. Subject to all applicable penalties set forth in this 136
part. 137
2. Notwithstanding subparagraph 1., subject to a fine not 138
to exceed $10,000 per act for a violation of this subse ction and 139
a fine not to exceed $20,000 per act for a violation of this 140
subsection that occurs during a state of emergency declared by 141
executive order or proclamation of the Governor pursuant to s. 142
252.36. 143
Section 3. Subsections (7), (8), and (9) of sec tion 144
626.989, Florida Statutes, are renumbered as subsections (9), 145
(10), and (11), respectively, subsections (5) and (6) are 146
amended, and new subsections (7) and (8) and subsection (12) are 147
added to that section, to read: 148
626.989 Investigation by departm ent or Division of 149
Investigative and Forensic Services; compliance; immunity; 150
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confidential information; reports to division; division 151
investigator's power of arrest. — 152
(5) The office's and the department's papers, documents, 153
reports, or evidence relative to the subject of an investigation 154
under this section are confidential and exempt from the 155
provisions of s. 119.07(1) until such investigation is completed 156
or ceases to be active. For purposes of this subsection, the 157
term an investigation is considered "active" has the same 158
meaning as in s. 119.011(3)(d) while the investigation is being 159
conducted by the office or department with a reasonable, good 160
faith belief that it could lead to the filing of administrative, 161
civil, or criminal proceedings. An investigati on does not cease 162
to be active if the office or department is proceeding with 163
reasonable dispatch and has a good faith belief that action 164
could be initiated by the office or department or other 165
administrative or law enforcement agency . After an investigati on 166
is completed or ceases to be active, portions of records 167
relating to the investigation shall remain exempt from the 168
provisions of s. 119.07(1) if disclosure would: 169
(a) Jeopardize the integrity of another active 170
investigation; 171
(b) Impair the safety a nd soundness of an insurer; 172
(c) Reveal personal financial information; 173
(d) Reveal the identity of a confidential source; 174
(e) Defame or cause unwarranted damage to the good name or 175
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reputation of an individual or jeopardize the safety of an 176
individual; or 177
(f) Reveal investigative techniques or procedures. 178
Further, such papers, documents, reports, or evidence relative 179
to the subject of an investigation under this section shall not 180
be subject to discovery until the investigation is completed or 181
ceases to be active. Office, department, or division 182
investigators shall not be subject to subpoena in civil actions 183
by any court of this state to testify concerning any matter of 184
which they have knowledge pursuant to a pending insurance fraud 185
investigation by the division. 186
(6) Any person, other than an insurer, agent, or other 187
person licensed under the code, or an employee thereof, having 188
knowledge or who believes that a fraudulent insurance act or any 189
other act or practice which, upon conviction, constitutes a 190
felony or a misdemeanor under the code, or under s. 817.234, is 191
being or has been committed may send to the Division of 192
Investigative and Forensic Services a report or information 193
pertinent to such knowledge or belief and such additional 194
information relative thereto a s the department may request. Any 195
professional practitioner licensed or regulated by the 196
Department of Business and Professional Regulation, except as 197
otherwise provided by law, any medical review committee as 198
defined in s. 766.101, any private medical rev iew committee, and 199
any insurer, agent, or other person licensed under the code, or 200
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an employee thereof, having knowledge or who believes that a 201
fraudulent insurance act or any other act or practice which, 202
upon conviction, constitutes a felony or a misdemea nor under the 203
code, or under s. 817.234, is being or has been committed shall 204
send to the Division of Investigative and Forensic Services a 205
report or information pertinent to such knowledge or belief and 206
such additional information relative thereto as the department 207
may require. 208
(7) If an insurer fails or otherwise refuses to comply 209
with this section, the department may impose an administrative 210
fine of not more than $2,000 per day for such failure until the 211
department deems the insurer to be in compliance . 212
(8) The Division of Investigative and Forensic Services 213
shall review such information or reports and select such 214
information or reports as, in its judgment, may require further 215
investigation. It shall then cause an independent examination of 216
the facts surrounding such information or report to be made to 217
determine the extent, if any, to which a fraudulent insurance 218
act or any other act or practice which, upon conviction, 219
constitutes a felony or a misdemeanor under the code, or under 220
s. 817.234, is being committed. The Division of Investigative 221
and Forensic Services shall report any alleged violations of law 222
which its investigations disclose to the appropriate licensing 223
agency and state attorney or other prosecuting agency having 224
jurisdiction with respect to any such violation, as provided in 225
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s. 624.310. If prosecution by the state attorney or other 226
prosecuting agency having jurisdiction with respect to such 227
violation is not begun within 60 days of the division's report, 228
the state attorney or other prosecut ing agency having 229
jurisdiction with respect to such violation shall inform the 230
division of the reasons for the lack of prosecution. 231
(12) The Division of Investigative and Forensic Services 232
may adopt reasonable rules as are necessary to administer this 233
section. Such rules must meet all of the following requirements: 234
(a) They may not enlarge upon or extend the provisions of 235
this section. 236
(b) They must identify specific factors that determine the 237
grades of penalty. 238
(c) They must specify mitigating and aggravating factors 239
for a violation of this section. 240
Section 4. Subsection (7) of section 633.112, Florida 241
Statutes, is amended to read: 242
633.112 State Fire Marshal; hearings; investigations; 243
recordkeeping and reports; subpoenas of witnesses; orders o f 244
circuit court.— 245
(7) The State Fire Marshal shall keep a record of all 246
fires and explosions occurring in this state upon which she or 247
he had caused an investigation to be made and all facts 248
concerning the same. These records, obtained or prepared by the 249
State Fire Marshal pursuant to her or his investigation, include 250
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documents, papers, letters, maps, diagrams, tapes, photographs, 251
films, sound recordings, and evidence. These records are 252
confidential and exempt from the provisions of s. 119.07(1) 253
until the investigation is completed or ceases to be active. For 254
purposes of this section, the term an investigation is 255
considered "active" has the same meaning as in s. 119.011(3)(d) 256
while such investigation is being conducted by the department 257
with a reasonable, good faith belief that it may lead to the 258
filing of administrative, civil, or criminal proceedings. An 259
investigation does not cease to be active if the department is 260
proceeding with reasonable dispatch, and there is a good faith 261
belief that action may be i nitiated by the department or other 262
administrative or law enforcement agency . Further, these 263
documents, papers, letters, maps, diagrams, tapes, photographs, 264
films, sound recordings, and evidence relative to the subject of 265
an investigation are shall not be subject to subpoena until the 266
investigation is completed or ceases to be active, unless the 267
State Fire Marshal consents. These records shall be made daily 268
from the reports furnished the State Fire Marshal by her or his 269
agents or others. 270
Section 5. Subsection (9) of section 633.126, Florida 271
Statutes, is amended, subsection (10) is added to that section, 272
and subsection (2) of that section is republished, to read: 273
633.126 Investigation of fraudulent insurance claims and 274
crimes; immunity of insurance comp anies supplying information. — 275
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(2) If an insurance company has reason to suspect that a 276
fire or explosion loss to its insured's real or personal 277
property was caused by intentional means, the company shall 278
notify the State Fire Marshal and shall furnish he r or him with 279
all material acquired by the company during its investigation. 280
The State Fire Marshal may adopt rules to implement this 281
subsection. 282
(9) If an insurance company fails or otherwise refuses to 283
comply with this section, the department may impos e an 284
administrative fine of not more than $2,000 per day for such 285
failure until the department deems the insurance company to be 286
in compliance A person who willfully violates this section 287
commits a misdemeanor of the first degree, punishable as 288
provided in s. 775.082 or s. 775.083 . 289
(10) The Division of Investigative and Forensic Services 290
may adopt reasonable rules as are necessary to administer this 291
section. Such rules must meet all of the following requirements: 292
(a) They may not enlarge upon or extend the provisions of 293
this section. 294
(b) They must identify specific factors that determine the 295
grades of penalty. 296
(c) They must specify mitigating and aggravating factors 297
for a violation of this section. 298
Section 6. Effective January 1, 2023, paragraphs (b), (c), 299
and (d) of subsection (3) of section 634.095, Florida Statutes, 300
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are redesignated as paragraphs (d), (e), and (f), respectively, 301
paragraph (a) of that subsection is amended, and new paragraphs 302
(b) and (c) are added to that subsection, to read: 303
634.095 Prohibited acts. —Any service agreement company or 304
salesperson that engages in one or more of the following acts 305
is, in addition to any applicable denial, suspension, 306
revocation, or refusal to renew o r continue any appointment or 307
license, guilty of a misdemeanor of the second degree, 308
punishable as provided in s. 775.082 or s. 775.083: 309
(3) Issuing or causing to be issued any advertisement that 310
which: 311
(a) Does not fully disclose in a written advertis ement, in 312
at least 12-point, boldface boldfaced type, the name, address, 313
and Florida Company Code license number of the service agreement 314
company. 315
(b) Does not fully disclose in a radio or television 316
advertisement the full legal name of the licensed sale sperson or 317
the service agreement company. 318
(c) Does not fully identify the soliciting licensed 319
salesperson's full legal name and license number when the 320
salesperson begins, and the soliciting salesperson's telephone 321
number when the salesperson concludes, each telephone 322
solicitation. For the purposes of this paragraph, the actual 323
telephone number of the salesperson may be the number on file 324
with the department or the number at which the salesperson may 325
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be contacted. 326
Section 7. Subsection (11) of section 775.15, Florida 327
Statutes, is amended to read: 328
775.15 Time limitations; general time limitations; 329
exceptions.— 330
(11) A prosecution for a felony violation of s. 440.105 or 331
s. 817.234 ss. 440.105 and 817.234 must be commenced within 5 332
years after the viol ation is committed. 333
Section 8. Subsection (5) of section 817.234, Florida 334
Statutes, is amended to read: 335
817.234 False and fraudulent insurance claims. — 336
(5)(a) Any insurer damaged as a result of a violation of 337
any provision of this section when there has been a criminal 338
adjudication of guilt shall have a cause of action to recover 339
compensatory damages, plus all reasonable investigation and 340
litigation expenses, including attorney attorneys' fees, at the 341
trial and appellate courts. 342
(b) If an insurer damaged as a result of a violation of 343
any provision of this section has reported the possible 344
fraudulent insurance act to the Division of Investigative and 345
Forensic Services pursuant to s. 626.9891 and if there has been 346
a criminal adjudication of guilt, the insurer is entitled to 347
recover reasonable investigation and litigation expenses, 348
including attorney fees, at the trial and appellate courts. 349
Section 9. Except as otherwise provided in this act, this 350
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act shall take effect upon becoming a law. 351