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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; creating s. 2
324.252, F.S.; requiring that the electronic 3
credentialing system display certain vehicle 4
information, provide certain notification for a 5
specified purpose, and allow drivers to update certain 6
information by a specified date; requiring the 7
Department of Highway Safety and Motor Vehicles to 8
provide the Legislature with recommendations for 9
compliance verification with certain financial 10
responsibility requirements by a specified date; 11
amending s. 501.165, F.S.; requiring sellers to allow 12
consumers to cancel in a specified manner and by 13
specified means service contracts that have automatic 14
renewal provisions; amending s. 626.854, F.S.; 15
revising maximum fines for public adjusters and public 16
adjuster apprentices for certain violations under a 17
specified circumstance; revising maximum fines for 18
certain violations by certain persons under a 19
specified circumstance; amending s. 626.989, F.S.; 20
authorizing the Department of Financial Services to 21
impose an administrative fine on insurers under 22
certain circumstances; authorizing the Division of 23
Investigative and Forensic Services to adopt certain 24
rules; amending s. 633.126, F.S.; authorizing the 25
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department to impose an administrative fine on 26
insurance companies under certain circumstances; 27
deleting criminal penalties; authorizing the division 28
to adopt certain rules; amending s. 634.095, F.S.; 29
revising requirement s for advertisements issued or 30
caused to be issued by service agreement companies or 31
salespersons; amending s. 775.15, F.S.; revising 32
felony violations for which prosecutions must be 33
commenced within a specified timeframe; amending s. 34
817.234, F.S.; provid ing that certain insurers are 35
entitled to recover specified expenses at the trial 36
and appellate courts under certain circumstances; 37
providing a transfer of funds; providing an 38
appropriation; providing effective dates. 39
40
Be It Enacted by the Legislature of the State of Florida: 41
42
Section 1. Section 324.252, Florida Statutes, is created 43
to read: 44
324.252 Electronic insurance verification. — 45
(1) In order to empower drivers in this state and reduce 46
the incidence of automobile insurance fraud within this state, 47
by July 1, 2023, the electronic credentialing system, as defined 48
in s. 322.032(1), must display driver vehicle registration and 49
insurance information, provide a driver with notification of any 50
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lapse in his or her insurance coverage needed for compl iance 51
with the financial responsibility requirements of this chapter, 52
and allow the driver to update his or her policy information via 53
the system. 54
(2) By October 1, 2023, the department shall provide the 55
Legislature with recommendations on the means by w hich the 56
department, law enforcement agencies, and other entities 57
authorized by the department may electronically verify a 58
driver's compliance with the financial responsibility 59
requirements of this chapter. 60
Section 2. Subsection (2) of section 501.165, Florida 61
Statutes, is amended to read: 62
501.165 Automatic renewal of service contracts. — 63
(2) SERVICE CONTRACTS WITH AUTOMATIC RENEWAL PROVISIONS. — 64
(a) A Any seller that sells, leases, or offers to sell or 65
lease any service to a consumer pursuant to a service contract 66
that has an automatic renewal provision, unless the consumer 67
cancels that contract, shall disclose the automatic renewal 68
provision clearly and conspicuously in the contract or contract 69
offer. 70
(b) A Any seller that sells or offers to sell any service 71
to a consumer pursuant to a service contract the term of which 72
is a specified period of 12 months or more and that 73
automatically renews for a specified period of more than 1 74
month, unless the consumer cancels the contract, shall provide 75
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the consumer with written or electronic notification of the 76
automatic renewal provision. Notification shall be provided to 77
the consumer no less than 30 days or no more than 60 days before 78
the cancellation deadline pursuant to the automatic renewal 79
provision. Such notification shall disclose clearly and 80
conspicuously: 81
1. That unless the consumer cancels the contract the 82
contract will automatically renew. 83
2. Methods by which the consumer may obtain details of the 84
automatic renewal provision and cancellation pro cedure, whether 85
by contacting the seller at a specified telephone number or 86
address, by referring to the contract, or by any other method. 87
(c) A seller that fails to comply with the requirements of 88
this subsection violates is in violation of this subsection 89
unless the seller demonstrates that: 90
1. As part of the seller's routine business practice, the 91
seller has established and implemented written procedures to 92
comply with this section and enforces compliance with the 93
procedures; 94
2. Any failure to comply with this subsection is the 95
result of error; and 96
3. As part of the seller's routine business practice, 97
where an error has caused the failure to comply with this 98
subsection, the unearned portion of the contract subject to the 99
automatic renewal provision is refunded as of the date on which 100
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the seller is notified of the error. 101
(d) A seller shall allow a consumer to cancel a service 102
contract that has an automatic renewal provision in the same 103
manner, and by the same means, as the s ervice contract was 104
entered into. 105
(e) This subsection does not apply to: 106
1. A financial institution as defined in s. 655.005 or any 107
depository institution as defined in 12 U.S.C. s. 1813(c)(2). 108
2. A foreign bank maintaining a branch or agency license d 109
under the laws of any state of the United States. 110
3. Any subsidiary or affiliate of an entity described in 111
subparagraph 1. or subparagraph 2. 112
4. A health studio as defined in s. 501.0125. 113
5. Any entity licensed under chapter 624, chapter 627, 114
chapter 634, chapter 636, or chapter 641. 115
6. Any electric utility as defined in s. 366.02. 116
7. Any private company as defined in s. 180.05 providing 117
services described in chapter 180 which is competing against a 118
governmental entity or has a governmental enti ty providing 119
billing services on its behalf. 120
(f)(e) A violation of this subsection renders the 121
automatic renewal provision void and unenforceable. 122
Section 3. Paragraphs (b) and (c) of subsection (22) of 123
section 626.854, Florida Statutes, are amended, and paragraph 124
(a) of that subsection is republished, to read: 125
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626.854 "Public adjuster" defined; prohibitions. —The 126
Legislature finds that it is necessary for the protection of the 127
public to regulate public insurance adjusters and to prevent the 128
unauthorized practice of law. 129
(22)(a) Any following act by a public adjuster, a public 130
adjuster apprentice, or a person acting on behalf of a public 131
adjuster or public adjuster apprentice is prohibited and shall 132
result in discipline as applicable under this part : 133
1. Offering to a residential property owner a rebate, 134
gift, gift card, cash, coupon, waiver of any insurance 135
deductible, or any other thing of value in exchange for: 136
a. Allowing a contractor, a public adjuster, a public 137
adjuster apprentice, or a pers on acting on behalf of a public 138
adjuster or public adjuster apprentice to conduct an inspection 139
of the residential property owner's roof; or 140
b. Making an insurance claim for damage to the residential 141
property owner's roof. 142
2. Offering, delivering, rece iving, or accepting any 143
compensation, inducement, or reward for the referral of any 144
services for which property insurance proceeds would be used for 145
roofing repairs or replacement. 146
(b) Notwithstanding the fine set forth in s. 626.8698, a 147
public adjuster or public adjuster apprentice may be subject to 148
a fine not to exceed $10,000 per act for a violation of this 149
subsection and a fine not to exceed $20,000 per act for a 150
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violation of this subsection that occurs during a state of 151
emergency declared by executiv e order or proclamation of the 152
Governor pursuant to s. 252.36 . 153
(c) A person who engages in an act prohibited by this 154
subsection and who is not a public adjuster or a public adjuster 155
apprentice, or is not otherwise exempt from licensure, is guilty 156
of the unlicensed practice of public adjusting and may be: 157
1. Subject to all applicable penalties set forth in this 158
part. 159
2. Notwithstanding subparagraph 1., subject to a fine not 160
to exceed $10,000 per act for a violation of this subsection and 161
a fine not to exceed $20,000 per act for a violation of this 162
subsection that occurs during a state of emergency declared by 163
executive order or proclamation of the Governor pursuant to s. 164
252.36. 165
Section 4. Present subsections (7), (8), and (9) of 166
section 626.989, Florida Statutes, are redesignated as 167
subsections (9), (10), and (11), respectively, new subsections 168
(7) and (8) and subsection (12) are added to that section, and 169
subsection (6) of that section is amended, to read: 170
626.989 Investigation by department or D ivision of 171
Investigative and Forensic Services; compliance; immunity; 172
confidential information; reports to division; division 173
investigator's power of arrest. — 174
(6) Any person, other than an insurer, agent, or other 175
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person licensed under the code, or an em ployee thereof, having 176
knowledge or who believes that a fraudulent insurance act or any 177
other act or practice which, upon conviction, constitutes a 178
felony or a misdemeanor under the code, or under s. 817.234, is 179
being or has been committed may send to the Division of 180
Investigative and Forensic Services a report or information 181
pertinent to such knowledge or belief and such additional 182
information relative thereto as the department may request. Any 183
professional practitioner licensed or regulated by the 184
Department of Business and Professional Regulation, except as 185
otherwise provided by law, any medical review committee as 186
defined in s. 766.101, any private medical review committee, and 187
any insurer, agent, or other person licensed under the code, or 188
an employee thereof, having knowledge or who believes that a 189
fraudulent insurance act or any other act or practice which, 190
upon conviction, constitutes a felony or a misdemeanor under the 191
code, or under s. 817.234, is being or has been committed shall 192
send to the Division of Investigative and Forensic Services a 193
report or information pertinent to such knowledge or belief and 194
such additional information relative thereto as the department 195
may require. 196
(7) If an insurer fails or otherwise refuses to comply 197
with this section, the department may impose an administrative 198
fine of not more than $2,000 per day for such failure until the 199
department deems the insurer to be in compliance. 200
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(8) The Division of Investigative and Forensic Services 201
shall review such information or rep orts and select such 202
information or reports as, in its judgment, may require further 203
investigation. It shall then cause an independent examination of 204
the facts surrounding such information or report to be made to 205
determine the extent, if any, to which a fr audulent insurance 206
act or any other act or practice which, upon conviction, 207
constitutes a felony or a misdemeanor under the code, or under 208
s. 817.234, is being committed. The Division of Investigative 209
and Forensic Services shall report any alleged violatio ns of law 210
which its investigations disclose to the appropriate licensing 211
agency and state attorney or other prosecuting agency having 212
jurisdiction with respect to any such violation, as provided in 213
s. 624.310. If prosecution by the state attorney or other 214
prosecuting agency having jurisdiction with respect to such 215
violation is not begun within 60 days of the division's report, 216
the state attorney or other prosecuting agency having 217
jurisdiction with respect to such violation shall inform the 218
division of the reasons for the lack of prosecution. 219
(12) The Division of Investigative and Forensic Services 220
may adopt reasonable rules as are necessary to administer this 221
section. Such rules must meet all of the following requirements: 222
(a) They may not enlarge upon or extend the provisions of 223
this section. 224
(b) They must identify specific factors that determine the 225
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grades of penalty. 226
(c) They must specify mitigating and aggravating factors 227
for a violation of this section. 228
Section 5. Subsection (9) of section 633.126, Florida 229
Statutes, is amended, subsection (10) is added to that section, 230
and subsection (2) of that section is republished, to read: 231
633.126 Investigation of fraudulent insurance claims and 232
crimes; immunity of insura nce companies supplying information. — 233
(2) If an insurance company has reason to suspect that a 234
fire or explosion loss to its insured's real or personal 235
property was caused by intentional means, the company shall 236
notify the State Fire Marshal and shall fu rnish her or him with 237
all material acquired by the company during its investigation. 238
The State Fire Marshal may adopt rules to implement this 239
subsection. 240
(9) If an insurance company fails or otherwise refuses to 241
comply with this section, the department m ay impose an 242
administrative fine of not more than $2,000 per day for such 243
failure until the department deems the insurance company to be 244
in compliance A person who willfully violates this section 245
commits a misdemeanor of the first degree, punishable as 246
provided in s. 775.082 or s. 775.083 . 247
(10) The Division of Investigative and Forensic Services 248
may adopt reasonable rules as are necessary to administer this 249
section. Such rules must meet all of the following requirements: 250
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(a) They may not enlarge upon or extend the provisions of 251
this section. 252
(b) They must identify specific factors that determine the 253
grades of penalty. 254
(c) They must specify mitigating and aggravating factors 255
for a violation of this section. 256
Section 6. Effective January 1, 2023, pr esent paragraphs 257
(b), (c), and (d) of subsection (3) of section 634.095, Florida 258
Statutes, are redesignated as paragraphs (d), (e), and (f), 259
respectively, new paragraphs (b) and (c) are added to that 260
subsection, and paragraph (a) of that subsection is amen ded, to 261
read: 262
634.095 Prohibited acts. —Any service agreement company or 263
salesperson that engages in one or more of the following acts 264
is, in addition to any applicable denial, suspension, 265
revocation, or refusal to renew or continue any appointment or 266
license, guilty of a misdemeanor of the second degree, 267
punishable as provided in s. 775.082 or s. 775.083: 268
(3) Issuing or causing to be issued any advertisement that 269
which: 270
(a) Does not fully disclose in a written advertisement, in 271
at least 12-point, boldfaced type, the name, address, and 272
Florida Company Code license number of the service agreement 273
company. 274
(b) Does not fully disclose in a radio or television 275
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advertisement the full legal name of the licensed salesperson or 276
the service agreement company. 277
(c) Does not fully identify the soliciting licensed 278
salesperson's full legal name and license number when the 279
salesperson begins, and the soliciting salesperson's telephone 280
number when the salesperson concludes, each outbound telephone 281
solicitation. For the purposes of this paragraph, the actual 282
telephone number of the salesperson may be the number on file 283
with the department or the number at which the salesperson may 284
be contacted. 285
Section 7. Subsection (11) of section 775.15, Florid a 286
Statutes, is amended to read: 287
775.15 Time limitations; general time limitations; 288
exceptions.— 289
(11) A prosecution for a felony violation of s. 440.105 or 290
s. 817.234 ss. 440.105 and 817.234 must be commenced within 5 291
years after the violation is commit ted. 292
Section 8. Subsection (5) of section 817.234, Florida 293
Statutes, is amended to read: 294
817.234 False and fraudulent insurance claims. — 295
(5)(a) Any insurer damaged as a result of a violation of 296
any provision of this section when there has been a cr iminal 297
adjudication of guilt shall have a cause of action to recover 298
compensatory damages, plus all reasonable investigation and 299
litigation expenses, including attorney attorneys' fees, at the 300
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trial and appellate courts. 301
(b) If an insurer damaged as a re sult of a violation of 302
any provision of this section has reported the possible 303
fraudulent insurance act to the Division of Investigative and 304
Forensic Services pursuant to s. 626.9891 and if there has been 305
a criminal adjudication of guilt, the insurer is en titled to 306
recover reasonable investigation and litigation expenses, 307
including attorney fees, at the trial and appellate courts. 308
Section 9. The nonrecurring sum of $1,413,270 for Fiscal 309
Year 2022-2023 shall be transferred by nonoperating budget 310
authority from the Insurance Regulatory Trust Fund of the 311
Department of Financial Services to the Highway Safety Operating 312
Trust Fund of the Department of Highway Safety and Motor 313
Vehicles to implement the electronic insurance verification 314
provisions of s. 324.252 , Florida Statutes. 315
Section 10. For the 2022-2023 fiscal year, the 316
nonrecurring sum of $1,413,270 from the Highway Safety Operating 317
Trust Fund is appropriated to the Information Systems 318
Administration budget entity in the Department of Highway Safety 319
and Motor Vehicles to implement the electronic insurance 320
verification provisions required under s. 324.252, Florida 321
Statutes. 322
Section 11. Except as otherwise expressly provided in this 323
act, this act shall take effect upon becoming a law. 324