Florida Senate - 2023 SB 312 By Senator Collins 14-00841-23 2023312__ 1 A bill to be entitled 2 An act relating to insurance; amending s. 627.4301, 3 F.S.; revising restrictions on the use of genetic 4 information for insurance purposes by life insurers 5 and long-term care insurers; specifying a restriction 6 on and an authorized use of genetic information for 7 insurance purposes by disability income insurers; 8 deleting a provision construing certain actions by 9 life insurers and long-term care insurers; amending s. 10 626.9541, F.S.; providing that certain restrictions 11 against unfair discrimination or unlawful rebates do 12 not include value-added products or services offered 13 or provided by insurers or their agents if certain 14 conditions are met; providing requirements for and 15 restrictions on insurers or agents offering or 16 providing such products or services; authorizing 17 insurers or agents to provide such products or 18 services as part of a pilot or testing program under 19 certain circumstances; specifying authorized value 20 added products and services; authorizing the Financial 21 Services Commission to adopt rules; providing an 22 effective date. 23 24 Be It Enacted by the Legislature of the State of Florida: 25 26 Section 1.Subsection (2) of section 627.4301, Florida 27 Statutes, is amended to read: 28 627.4301Genetic information for insurance purposes. 29 (2)USE OF GENETIC INFORMATION. 30 (a)In the absence of a diagnosis of a condition related to 31 genetic information, health insurers, life insurers, and long 32 term care insurers authorized to transact insurance in this 33 state may not cancel, limit, or deny coverage, or establish 34 differentials in premium rates, based on such information. 35 (b)Health insurers, life insurers, and long-term care 36 insurers may not require or solicit genetic information, use 37 genetic test results, or consider a persons decisions or 38 actions relating to genetic testing in any manner for any 39 insurance purpose. 40 (c)A life insurer, long-term care insurer, or disability 41 income insurer authorized to transact insurance in this state: 42 1.May not cancel coverage based on genetic information; 43 require an applicant to take a genetic test as a condition of 44 insurability; or obtain, request, or otherwise require the 45 complete genome sequence of an applicants DNA. 46 2.May use genetic information for underwriting purposes 47 only if the genetic information is contained in the applicants 48 medical record. 49 (d)This section does not apply to the underwriting or 50 issuance of an accident-only policy, hospital indemnity or fixed 51 indemnity policy, dental policy, or vision policy or any other 52 actions of an insurer directly related to an accident-only 53 policy, hospital indemnity or fixed indemnity policy, dental 54 policy, or vision policy. 55 (d)Nothing in this section shall be construed as 56 preventing a life insurer or long-term care insurer from 57 accessing an individuals medical record as part of an 58 application exam. Nothing in this section prohibits a life 59 insurer or long-term care insurer from considering a medical 60 diagnosis included in an individuals medical record, even if a 61 diagnosis was made based on the results of a genetic test. 62 Section 2.Paragraph (h) of subsection (1) of section 63 626.9541, Florida Statutes, is amended to read: 64 626.9541Unfair methods of competition and unfair or 65 deceptive acts or practices defined. 66 (1)UNFAIR METHODS OF COMPETITION AND UNFAIR OR DECEPTIVE 67 ACTS.The following are defined as unfair methods of competition 68 and unfair or deceptive acts or practices: 69 (h)Unlawful rebates. 70 1.Except as otherwise expressly provided by law, or in an 71 applicable filing with the office, knowingly: 72 a.Permitting, or offering to make, or making, any contract 73 or agreement as to such contract other than as plainly expressed 74 in the insurance contract issued thereon; 75 b.Paying, allowing, or giving, or offering to pay, allow, 76 or give, directly or indirectly, as inducement to such insurance 77 contract, any unlawful rebate of premiums payable on the 78 contract, any special favor or advantage in the dividends or 79 other benefits thereon, or any valuable consideration or 80 inducement whatever not specified in the contract; 81 c.Giving, selling, or purchasing, or offering to give, 82 sell, or purchase, as inducement to such insurance contract or 83 in connection therewith, any stocks, bonds, or other securities 84 of any insurance company or other corporation, association, or 85 partnership, or any dividends or profits accrued thereon, or 86 anything of value whatsoever not specified in the insurance 87 contract. 88 2.Nothing in paragraph (g) or subparagraph 1. of this 89 paragraph shall be construed as including within the definition 90 of discrimination or unlawful rebates: 91 a.In the case of any contract of life insurance or life 92 annuity, paying bonuses to all policyholders or otherwise 93 abating their premiums in whole or in part out of surplus 94 accumulated from nonparticipating insurance; provided that any 95 such bonuses or abatement of premiums is fair and equitable to 96 all policyholders and for the best interests of the company and 97 its policyholders. 98 b.In the case of life insurance policies issued on the 99 industrial debit plan, making allowance to policyholders who 100 have continuously for a specified period made premium payments 101 directly to an office of the insurer in an amount which fairly 102 represents the saving in collection expenses. 103 c.Readjustment of the rate of premium for a group 104 insurance policy based on the loss or expense thereunder, at the 105 end of the first or any subsequent policy year of insurance 106 thereunder, which may be made retroactive only for such policy 107 year. 108 d.Issuance of life insurance policies or annuity contracts 109 at rates less than the usual rates of premiums for such policies 110 or contracts, as group insurance or employee insurance as 111 defined in this code. 112 e.Issuing life or disability insurance policies on a 113 salary savings, bank draft, preauthorized check, payroll 114 deduction, or other similar plan at a reduced rate reasonably 115 related to the savings made by the use of such plan. 116 3.a.No title insurer, or any member, employee, attorney, 117 agent, or agency thereof, shall pay, allow, or give, or offer to 118 pay, allow, or give, directly or indirectly, as inducement to 119 title insurance, or after such insurance has been effected, any 120 rebate or abatement of the premium or any other charge or fee, 121 or provide any special favor or advantage, or any monetary 122 consideration or inducement whatever. 123 b.Nothing in this subparagraph shall be construed as 124 prohibiting the payment of fees to attorneys at law duly 125 licensed to practice law in the courts of this state, for 126 professional services, or as prohibiting the payment of earned 127 portions of the premium to duly appointed agents or agencies who 128 actually perform services for the title insurer. Nothing in this 129 subparagraph shall be construed as prohibiting a rebate or 130 abatement of an attorney fee charged for professional services, 131 or that portion of the premium that is not required to be 132 retained by the insurer pursuant to s. 627.782(1), or any other 133 agent charge or fee to the person responsible for paying the 134 premium, charge, or fee. 135 c.No insured named in a policy, or any other person 136 directly or indirectly connected with the transaction involving 137 the issuance of such policy, including, but not limited to, any 138 mortgage broker, real estate broker, builder, or attorney, any 139 employee, agent, agency, or representative thereof, or any other 140 person whatsoever, shall knowingly receive or accept, directly 141 or indirectly, any rebate or abatement of any portion of the 142 title insurance premium or of any other charge or fee or any 143 monetary consideration or inducement whatsoever, except as set 144 forth in sub-subparagraph b.; provided, in no event shall any 145 portion of the attorney fee, any portion of the premium that is 146 not required to be retained by the insurer pursuant to s. 147 627.782(1), any agent charge or fee, or any other monetary 148 consideration or inducement be paid directly or indirectly for 149 the referral of title insurance business. 150 4.a.Paragraph (g) or subparagraph 1. may not be construed 151 as including within the definition of discrimination or unlawful 152 rebates the offer or provision by an insurer or an agent of the 153 insurer, including by or through employees, affiliates, or 154 third-party representatives, of value-added products or services 155 at no or reduced cost when such products or services are not 156 specified in the insurance policy, if the product or service 157 relates to the insurance coverage and is primarily designed to 158 do one or more of the following: 159 (I)Provide loss mitigation or loss control; 160 (II)Reduce claim costs or claim settlement costs; 161 (III)Provide education about liability risks or risk of 162 loss to persons or property; 163 (IV)Monitor or assess risk, identify sources of risk, or 164 develop strategies for eliminating or reducing risk; 165 (V)Enhance health; 166 (VI)Enhance financial wellness through items such as 167 education or financial planning services; 168 (VII)Provide post-loss services; 169 (VIII)Incentivize behavioral changes to improve the health 170 or reduce the risk of death or disability of a policyholder, 171 potential policyholder, certificateholder, potential 172 certificateholder, insured, potential insured, or applicant; or 173 (IX)Assist in the administration of employee or retiree 174 benefit insurance coverage. 175 b.The cost to the insurer or agent offering the product or 176 service to a customer must be reasonable in comparison to the 177 customers premiums or insurance coverage for the policy class. 178 c.If the insurer or agent is providing the product or 179 service, the insurer or agent must ensure that the customer is 180 provided with contact information to assist the customer with 181 questions regarding the product or service. 182 d.The availability of the product or service must be based 183 on documented objective evidence, and the product or service 184 must be offered in a manner that is not unfairly discriminatory. 185 The documented evidence must be maintained by the insurer or 186 agent and produced upon request by the office or the department. 187 e.If an insurer or agent has a good faith belief, but does 188 not have sufficient evidence to demonstrate, that the product or 189 service meets any of the criteria in sub-sub-subparagraphs 190 a.(I)-(IX), the insurer or agent may provide the product or 191 service in a manner that is not unfairly discriminatory as part 192 of a pilot or testing program for up to 1 year. An insurer or 193 agent must notify the office or department, as applicable, of 194 such pilot or testing program offered to consumers in this state 195 before commencing the program. The insurer or agent may commence 196 the program unless the office or department, as applicable, 197 objects to the program within 21 days after receiving the 198 notice. 199 f.An insurer, agent, or representative thereof may not 200 offer or provide insurance as an inducement to the purchase of 201 another policy or otherwise use the words free, no cost, or 202 similar words in an advertisement. 203 g.For purposes of this subparagraph, value-added products 204 and services may include: 205 (I)Offering or giving noncash gifts, items, or services, 206 including meals to or charitable donations on behalf of a 207 customer, in connection with the marketing, sale, purchase, or 208 retention of contracts of insurance, provided the cost does not 209 exceed an amount determined to be reasonable by commission rule 210 per policy year per term. The offer must be made in a manner 211 that is not unfairly discriminatory. The customer may not be 212 required to purchase, continue to purchase, or renew a policy in 213 exchange for the gift, item, or service. 214 (II)Offering or giving noncash gifts, items, or services, 215 including meals to or charitable donations on behalf of a 216 customer, to commercial or institutional customers in connection 217 with the marketing, sale, purchase, or retention of contracts of 218 insurance, provided the cost is reasonable in comparison to the 219 premium or proposed premium and the cost of the gift or service 220 is not included in any amounts charged to another person or 221 entity. The offer must be made in a manner that is not unfairly 222 discriminatory. The customer may not be required to purchase, 223 continue to purchase, or renew a policy in exchange for the 224 gift, item, or service. 225 (III)Conducting raffles or drawings permitted by state 226 law, provided there is no financial cost to entrants for 227 participating, the raffle or drawing does not obligate entrants 228 to purchase insurance, the prizes are not valued in excess of a 229 reasonable amount as determined by commission rule, and the 230 raffle or drawing is open to the public. The raffle or drawing 231 must be offered in a manner that is not unfairly discriminatory. 232 The entrant may not be required to purchase, continue to 233 purchase, or renew a policy in exchange for the gift, item, or 234 service. 235 h.The commission may adopt rules to administer this 236 subparagraph to ensure consumer protection. Such rules, 237 consistent with applicable law, may address, among other issues, 238 consumer data protections and privacy, consumer disclosure, and 239 unfair discrimination. 240 Section 3.This act shall take effect July 1, 2023.