15 | 15 | | An act relating to fraud prevention; creating s. 2 |
---|
16 | 16 | | 324.252, F.S.; requiring that the electronic 3 |
---|
17 | 17 | | credentialing system display certain vehicle 4 |
---|
18 | 18 | | information, provide certain notification for a 5 |
---|
19 | 19 | | specified purpose, and allow drivers to update certain 6 |
---|
20 | 20 | | information by a specified date; requiring the 7 |
---|
21 | 21 | | Department of Highway Safety and Motor Vehicles to 8 |
---|
22 | 22 | | provide the Legislature with recommendations for 9 |
---|
23 | 23 | | compliance verification with certain financial 10 |
---|
24 | 24 | | responsibility requirements by a specified date; 11 |
---|
25 | 25 | | amending s. 501.165, F.S.; requiring certain sellers 12 |
---|
26 | 26 | | to allow consumers to cancel in a specified manner and 13 |
---|
27 | 27 | | by a specified means service contracts that include 14 |
---|
28 | 28 | | automatic renewal provisions; amending s. 626.854, 15 |
---|
29 | 29 | | F.S.; revising maximum fines for public adjusters and 16 |
---|
30 | 30 | | public adjuster apprentices for certain violations 17 |
---|
31 | 31 | | under a specified circumstance; revising maximum fines 18 |
---|
32 | 32 | | for certain violations by certain persons under a 19 |
---|
33 | 33 | | specified circumstance; amending s. 633.126, F.S.; 20 |
---|
34 | 34 | | authorizing the department to impose an administrative 21 |
---|
35 | 35 | | fine on insurance companies under certain 22 |
---|
36 | 36 | | circumstances; deleting criminal penalties; 23 |
---|
37 | 37 | | authorizing the division to adopt certain rules; 24 |
---|
38 | 38 | | amending s. 634.095, F.S.; revising requirements for 25 |
---|
46 | 46 | | Page 2 of 11 |
---|
47 | 47 | | 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 |
---|
48 | 48 | | |
---|
49 | 49 | | |
---|
50 | 50 | | |
---|
51 | 51 | | advertisements issued or caused to be issued by 26 |
---|
52 | 52 | | service agreement companies or s alespersons; amending 27 |
---|
53 | 53 | | s. 775.15, F.S.; revising felony violations for which 28 |
---|
54 | 54 | | prosecutions must be commenced within a specified 29 |
---|
55 | 55 | | timeframe; amending s. 817.234, F.S.; providing that 30 |
---|
56 | 56 | | certain insurers are entitled to recover specified 31 |
---|
57 | 57 | | expenses at the trial and appellate courts under 32 |
---|
58 | 58 | | certain circumstances; providing a transfer of funds; 33 |
---|
59 | 59 | | providing an appropriation; providing effective dates. 34 |
---|
60 | 60 | | 35 |
---|
61 | 61 | | Be It Enacted by the Legislature of the State of Florida: 36 |
---|
62 | 62 | | 37 |
---|
63 | 63 | | Section 1. Section 324.252, Florida Statutes, is created 38 |
---|
64 | 64 | | to read: 39 |
---|
65 | 65 | | 324.252 Electronic insurance verification. — 40 |
---|
66 | 66 | | (1) In order to empower drivers in this state and reduce 41 |
---|
67 | 67 | | the incidence of automobile insurance fraud within this state, 42 |
---|
68 | 68 | | by July 1, 2023, the electronic credentialing system, as defined 43 |
---|
69 | 69 | | in s. 322.032(1), must display driver vehicle registration and 44 |
---|
70 | 70 | | insurance information, provide a driver with notification of any 45 |
---|
71 | 71 | | lapse in his or her insurance coverage needed for compliance 46 |
---|
72 | 72 | | with the financial responsibility requirements of this chapter, 47 |
---|
73 | 73 | | and allow the driver to update his or her policy information via 48 |
---|
74 | 74 | | the system. 49 |
---|
75 | 75 | | (2) By October 1, 2023, the department shall provide the 50 |
---|
83 | 83 | | Page 3 of 11 |
---|
84 | 84 | | 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 |
---|
85 | 85 | | |
---|
86 | 86 | | |
---|
87 | 87 | | |
---|
88 | 88 | | Legislature with recommendations on the means by which the 51 |
---|
89 | 89 | | department, law enforcement agencies, and other entities 52 |
---|
90 | 90 | | authorized by the de partment may electronically verify a 53 |
---|
91 | 91 | | driver's compliance with the financial responsibility 54 |
---|
92 | 92 | | requirements of this chapter. 55 |
---|
93 | 93 | | Section 2. Subsection (2) of section 501.165, Florida 56 |
---|
94 | 94 | | Statutes, is amended to read: 57 |
---|
95 | 95 | | 501.165 Automatic renewal of service contract s.— 58 |
---|
96 | 96 | | (2) SERVICE CONTRACTS WITH AUTOMATIC RENEWAL PROVISIONS. — 59 |
---|
97 | 97 | | (a) A Any seller that sells, leases, or offers to sell or 60 |
---|
98 | 98 | | lease any service to a consumer pursuant to a service contract 61 |
---|
99 | 99 | | that has an automatic renewal provision, unless the consumer 62 |
---|
100 | 100 | | cancels that contract, shall disclose the automatic renewal 63 |
---|
101 | 101 | | provision clearly and conspicuously in the contract or contract 64 |
---|
102 | 102 | | offer. 65 |
---|
103 | 103 | | (b) A Any seller that sells or offers to sell any service 66 |
---|
104 | 104 | | to a consumer pursuant to a service contract the term of which 67 |
---|
105 | 105 | | is a specified period of 12 months or more and that 68 |
---|
106 | 106 | | automatically renews for a specified period of more than 1 69 |
---|
107 | 107 | | month, unless the consumer cancels the contract, shall provide 70 |
---|
108 | 108 | | the consumer with written or electronic notification of the 71 |
---|
109 | 109 | | automatic renewal provision. Not ification shall be provided to 72 |
---|
110 | 110 | | the consumer no less than 30 days or no more than 60 days before 73 |
---|
111 | 111 | | the cancellation deadline pursuant to the automatic renewal 74 |
---|
112 | 112 | | provision. Such notification shall disclose clearly and 75 |
---|
120 | 120 | | Page 4 of 11 |
---|
121 | 121 | | 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 |
---|
122 | 122 | | |
---|
123 | 123 | | |
---|
124 | 124 | | |
---|
125 | 125 | | conspicuously: 76 |
---|
126 | 126 | | 1. That unless the consumer cancels the contract the 77 |
---|
127 | 127 | | contract will automatically renew. 78 |
---|
128 | 128 | | 2. Methods by which the consumer may obtain details of the 79 |
---|
129 | 129 | | automatic renewal provision and cancellation procedure, whether 80 |
---|
130 | 130 | | by contacting the seller at a specified telephone number or 81 |
---|
131 | 131 | | address, by referring to the contract, or by any other method. 82 |
---|
132 | 132 | | (c) A seller that fails to comply with the requirements of 83 |
---|
133 | 133 | | this subsection violates is in violation of this subsection 84 |
---|
134 | 134 | | unless the seller demonstrates that: 85 |
---|
135 | 135 | | 1. As part of the seller's routine business practice, the 86 |
---|
136 | 136 | | seller has established and implemented written procedures to 87 |
---|
137 | 137 | | comply with this section and enforces compliance with the 88 |
---|
138 | 138 | | procedures; 89 |
---|
139 | 139 | | 2. Any failure to comply with this subsection is the 90 |
---|
140 | 140 | | result of error; and 91 |
---|
141 | 141 | | 3. As part of the seller's routi ne business practice, 92 |
---|
142 | 142 | | where an error has caused the failure to comply with this 93 |
---|
143 | 143 | | subsection, the unearned portion of the contract subject to the 94 |
---|
144 | 144 | | automatic renewal provision is refunded as of the date on which 95 |
---|
145 | 145 | | the seller is notified of the error. 96 |
---|
146 | 146 | | (d) A seller that enters into or renews any service 97 |
---|
147 | 147 | | contract with a consumer which includes an automatic renewal 98 |
---|
148 | 148 | | provision must allow the consumer to cancel the service contract 99 |
---|
149 | 149 | | in the same manner, and by the same means, as the consumer 100 |
---|
157 | 157 | | Page 5 of 11 |
---|
158 | 158 | | 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 |
---|
159 | 159 | | |
---|
160 | 160 | | |
---|
161 | 161 | | |
---|
162 | 162 | | manifested his or her accept ance of the service contract. 101 |
---|
163 | 163 | | (e) This subsection does not apply to: 102 |
---|
164 | 164 | | 1. A financial institution as defined in s. 655.005 or any 103 |
---|
165 | 165 | | depository institution as defined in 12 U.S.C. s. 1813(c)(2). 104 |
---|
166 | 166 | | 2. A foreign bank maintaining a branch or agency licensed 105 |
---|
167 | 167 | | under the laws of any state of the United States. 106 |
---|
168 | 168 | | 3. Any subsidiary or affiliate of an entity described in 107 |
---|
169 | 169 | | subparagraph 1. or subparagraph 2. 108 |
---|
170 | 170 | | 4. A health studio as defined in s. 501.0125. 109 |
---|
171 | 171 | | 5. Any entity licensed under chapter 624, chapter 627, 110 |
---|
172 | 172 | | chapter 634, chapter 636, or chapter 641. 111 |
---|
173 | 173 | | 6. Any electric utility as defined in s. 366.02. 112 |
---|
174 | 174 | | 7. Any private company as defined in s. 180.05 providing 113 |
---|
175 | 175 | | services described in chapter 180 which is competing against a 114 |
---|
176 | 176 | | governmental entity or has a governmental entity p roviding 115 |
---|
177 | 177 | | billing services on its behalf. 116 |
---|
178 | 178 | | (f)(e) A violation of this subsection renders the 117 |
---|
179 | 179 | | automatic renewal provision void and unenforceable. 118 |
---|
180 | 180 | | Section 3. Paragraphs (b) and (c) of subsection (22) of 119 |
---|
181 | 181 | | section 626.854, Florida Statutes, are amended, and paragraph 120 |
---|
182 | 182 | | (a) of that subsection is republished, to read: 121 |
---|
183 | 183 | | 626.854 "Public adjuster" defined; prohibitions. —The 122 |
---|
184 | 184 | | Legislature finds that it is necessary for the protection of the 123 |
---|
185 | 185 | | public to regulate public insurance adjusters and to prevent the 124 |
---|
186 | 186 | | unauthorized practice of law. 125 |
---|
194 | 194 | | Page 6 of 11 |
---|
195 | 195 | | 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 |
---|
196 | 196 | | |
---|
197 | 197 | | |
---|
198 | 198 | | |
---|
199 | 199 | | (22)(a) Any following act by a public adjuster, a public 126 |
---|
200 | 200 | | adjuster apprentice, or a person acting on behalf of a public 127 |
---|
201 | 201 | | adjuster or public adjuster apprentice is prohibited and shall 128 |
---|
202 | 202 | | result in discipline as applicable under this part: 129 |
---|
203 | 203 | | 1. Offering to a residential property owner a rebate, 130 |
---|
204 | 204 | | gift, gift card, cash, coupon, waiver of any insurance 131 |
---|
205 | 205 | | deductible, or any other thing of value in exchange for: 132 |
---|
206 | 206 | | a. Allowing a contractor, a public adjuster, a public 133 |
---|
207 | 207 | | adjuster apprentice, or a person a cting on behalf of a public 134 |
---|
208 | 208 | | adjuster or public adjuster apprentice to conduct an inspection 135 |
---|
209 | 209 | | of the residential property owner's roof; or 136 |
---|
210 | 210 | | b. Making an insurance claim for damage to the residential 137 |
---|
211 | 211 | | property owner's roof. 138 |
---|
212 | 212 | | 2. Offering, delivering, receivin g, or accepting any 139 |
---|
213 | 213 | | compensation, inducement, or reward for the referral of any 140 |
---|
214 | 214 | | services for which property insurance proceeds would be used for 141 |
---|
215 | 215 | | roofing repairs or replacement. 142 |
---|
216 | 216 | | (b) Notwithstanding the fine set forth in s. 626.8698, a 143 |
---|
217 | 217 | | public adjuster or p ublic adjuster apprentice may be subject to 144 |
---|
218 | 218 | | a fine not to exceed $10,000 per act for a violation of this 145 |
---|
219 | 219 | | subsection and a fine not to exceed $20,000 per act for a 146 |
---|
220 | 220 | | violation of this subsection that occurs during a state of 147 |
---|
221 | 221 | | emergency declared by executive or der or proclamation of the 148 |
---|
222 | 222 | | Governor pursuant to s. 252.36 . 149 |
---|
223 | 223 | | (c) A person who engages in an act prohibited by this 150 |
---|
231 | 231 | | Page 7 of 11 |
---|
232 | 232 | | 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 |
---|
233 | 233 | | |
---|
234 | 234 | | |
---|
235 | 235 | | |
---|
236 | 236 | | subsection and who is not a public adjuster or a public adjuster 151 |
---|
237 | 237 | | apprentice, or is not otherwise exempt from licensure, is guilty 152 |
---|
238 | 238 | | of the unlicensed practice of public adjusting and may be: 153 |
---|
239 | 239 | | 1. Subject to all applicable penalties set forth in this 154 |
---|
240 | 240 | | part. 155 |
---|
241 | 241 | | 2. Notwithstanding subparagraph 1., subject to a fine not 156 |
---|
242 | 242 | | to exceed $10,000 per act for a violation of this subsection and 157 |
---|
243 | 243 | | a fine not to exceed $20,000 per act for a violation of this 158 |
---|
244 | 244 | | subsection that occurs during a state of emergency declared by 159 |
---|
245 | 245 | | executive order or proclamation of the Governor pursuant to s. 160 |
---|
246 | 246 | | 252.36. 161 |
---|
247 | 247 | | Section 4. Subsection (9) of section 633.126, Florida 162 |
---|
248 | 248 | | Statutes, is amended, subsection (10) is added to that section, 163 |
---|
249 | 249 | | and subsection (2) of that section is republished, to read: 164 |
---|
250 | 250 | | 633.126 Investigation of fraudulent insurance claims and 165 |
---|
251 | 251 | | crimes; immunity of insurance companies supplying information. — 166 |
---|
252 | 252 | | (2) If an insurance company has reason to suspect that a 167 |
---|
253 | 253 | | fire or explosion loss to its insured's real or personal 168 |
---|
254 | 254 | | property was caused by intentional means, the company shall 169 |
---|
255 | 255 | | notify the State Fire Marshal and shall furnish her or him with 170 |
---|
256 | 256 | | all material acquired by the company during it s investigation. 171 |
---|
257 | 257 | | The State Fire Marshal may adopt rules to implement this 172 |
---|
258 | 258 | | subsection. 173 |
---|
259 | 259 | | (9) If an insurance company fails or otherwise refuses to 174 |
---|
260 | 260 | | comply with this section, the department may impose an 175 |
---|
268 | 268 | | Page 8 of 11 |
---|
269 | 269 | | 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 |
---|
270 | 270 | | |
---|
271 | 271 | | |
---|
272 | 272 | | |
---|
273 | 273 | | administrative fine of not more than $2,000 per day for such 176 |
---|
274 | 274 | | failure until the department deems the insurance company to be 177 |
---|
275 | 275 | | in compliance A person who willfully violates this section 178 |
---|
276 | 276 | | commits a misdemeanor of the first degree, punishable as 179 |
---|
277 | 277 | | provided in s. 775.082 or s. 775.083 . 180 |
---|
278 | 278 | | (10) The Division of Investigat ive and Forensic Services 181 |
---|
279 | 279 | | may adopt reasonable rules as are necessary to administer this 182 |
---|
280 | 280 | | section. Such rules must meet all of the following requirements: 183 |
---|
281 | 281 | | (a) They may not enlarge upon or extend the provisions of 184 |
---|
282 | 282 | | this section. 185 |
---|
283 | 283 | | (b) They must identify specific factors that determine the 186 |
---|
284 | 284 | | grades of penalty. 187 |
---|
285 | 285 | | (c) They must specify mitigating and aggravating factors 188 |
---|
286 | 286 | | for a violation of this section. 189 |
---|
287 | 287 | | Section 5. Effective March 1, 2023, present paragraphs 190 |
---|
288 | 288 | | (b), (c), and (d) of subsection (3) of section 634 .095, Florida 191 |
---|
289 | 289 | | Statutes, are redesignated as paragraphs (d), (e), and (f), 192 |
---|
290 | 290 | | respectively, new paragraphs (b) and (c) are added to that 193 |
---|
291 | 291 | | subsection, and paragraph (a) of that subsection is amended, to 194 |
---|
292 | 292 | | read: 195 |
---|
293 | 293 | | 634.095 Prohibited acts. —Any service agreement comp any or 196 |
---|
294 | 294 | | salesperson that engages in one or more of the following acts 197 |
---|
295 | 295 | | is, in addition to any applicable denial, suspension, 198 |
---|
296 | 296 | | revocation, or refusal to renew or continue any appointment or 199 |
---|
297 | 297 | | license, guilty of a misdemeanor of the second degree, 200 |
---|
305 | 305 | | Page 9 of 11 |
---|
306 | 306 | | 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 |
---|
307 | 307 | | |
---|
308 | 308 | | |
---|
309 | 309 | | |
---|
310 | 310 | | punishable as provided in s. 775.082 or s. 775.083: 201 |
---|
311 | 311 | | (3) Issuing or causing to be issued any advertisement that 202 |
---|
312 | 312 | | which: 203 |
---|
313 | 313 | | (a) Does not fully disclose in a written advertisement, in 204 |
---|
314 | 314 | | at least 12-point, boldfaced type, the name, address, and 205 |
---|
315 | 315 | | Florida Company Code license number of the service agreement 206 |
---|
316 | 316 | | company. 207 |
---|
317 | 317 | | (b) Does not fully disclose in a radio or television 208 |
---|
318 | 318 | | advertisement the full legal name of the licensed salesperson or 209 |
---|
319 | 319 | | the service agreement company. 210 |
---|
320 | 320 | | (c) Does not fully identify the soliciting licensed 211 |
---|
321 | 321 | | salesperson's full legal name and license number when the 212 |
---|
322 | 322 | | salesperson begins, and the soliciting salesperson's telephone 213 |
---|
323 | 323 | | number when the salesperson concludes, each outbound telephone 214 |
---|
324 | 324 | | solicitation. For the purposes of this paragraph, the actual 215 |
---|
325 | 325 | | telephone number of the salesperson may be the number on file 216 |
---|
326 | 326 | | with the department or the number at which the salesperson may 217 |
---|
327 | 327 | | be contacted. 218 |
---|
328 | 328 | | Section 6. Subsection (11) of section 775.15, Florida 219 |
---|
329 | 329 | | Statutes, is amended to read: 220 |
---|
330 | 330 | | 775.15 Time limitations; general time limitations; 221 |
---|
331 | 331 | | exceptions.— 222 |
---|
332 | 332 | | (11) A prosecution for a felony violation of s. 440.105 or 223 |
---|
333 | 333 | | s. 817.234 ss. 440.105 and 817.234 must be commenced within 5 224 |
---|
334 | 334 | | years after the violation is committed. 225 |
---|
342 | 342 | | Page 10 of 11 |
---|
343 | 343 | | 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 |
---|
344 | 344 | | |
---|
345 | 345 | | |
---|
346 | 346 | | |
---|
347 | 347 | | Section 7. Subsection (5) of section 817.234, Florida 226 |
---|
348 | 348 | | Statutes, is amended t o read: 227 |
---|
349 | 349 | | 817.234 False and fraudulent insurance claims. — 228 |
---|
350 | 350 | | (5)(a) Any insurer damaged as a result of a violation of 229 |
---|
351 | 351 | | any provision of this section when there has been a criminal 230 |
---|
352 | 352 | | adjudication of guilt shall have a cause of action to recover 231 |
---|
353 | 353 | | compensatory damages, plus all reasonable investigation and 232 |
---|
354 | 354 | | litigation expenses, including attorney attorneys' fees, at the 233 |
---|
355 | 355 | | trial and appellate courts. 234 |
---|
356 | 356 | | (b) If an insurer damaged as a result of a violation of 235 |
---|
357 | 357 | | any provision of this section has reported the possible 236 |
---|
358 | 358 | | fraudulent insurance act to the Division of Investigative and 237 |
---|
359 | 359 | | Forensic Services pursuant to s. 626.9891 and if there has been 238 |
---|
360 | 360 | | a criminal adjudication of guilt, the insurer is entitled to 239 |
---|
361 | 361 | | recover reasonable investigation and litigation expenses, 240 |
---|
362 | 362 | | including attorney fees, at the trial and appellate courts. 241 |
---|
363 | 363 | | Section 8. The nonrecurring sum of $1,413,270 for Fiscal 242 |
---|
364 | 364 | | Year 2022-2023 shall be transferred by nonoperating budget 243 |
---|
365 | 365 | | authority from the Insurance Regulatory Trust Fund of the 244 |
---|
366 | 366 | | Department of Financial Servi ces to the Highway Safety Operating 245 |
---|
367 | 367 | | Trust Fund of the Department of Highway Safety and Motor 246 |
---|
368 | 368 | | Vehicles to implement the electronic insurance verification 247 |
---|
369 | 369 | | provisions of s. 324.252, Florida Statutes. 248 |
---|
370 | 370 | | Section 9. For the 2022-2023 fiscal year, the nonrecurr ing 249 |
---|
371 | 371 | | sum of $1,413,270 from the Highway Safety Operating Trust Fund 250 |
---|
379 | 379 | | Page 11 of 11 |
---|
380 | 380 | | 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 |
---|
381 | 381 | | |
---|
382 | 382 | | |
---|
383 | 383 | | |
---|
384 | 384 | | is appropriated to the Information Systems Administration budget 251 |
---|
385 | 385 | | entity in the Department of Highway Safety and Motor Vehicles to 252 |
---|
386 | 386 | | implement the electronic insurance verification provisions 253 |
---|
387 | 387 | | required under s. 324.252, Florida Statutes. 254 |
---|
388 | 388 | | Section 10. Except as otherwise expressly provided in this 255 |
---|
389 | 389 | | act, this act shall take effect upon becoming a law. 256 |
---|