Florida Senate - 2023 SB 312 By Senator Collins 14-00841-23 2023312__ Page 1 of 9 CODING: Words stricken are deletions; words underlined are additions. A bill to be entitled 1

An act relating to insurance; amending s. 627.4301, 2 F.S.; revising restrictions on the use of genetic 3 information for insurance purposes by life insurers 4 and long-term care insurers; specifying a restriction 5 on and an authorized use of genetic information for 6 insurance purposes by disability income insurers; 7 deleting a provision construing certain actions by 8 life insurers and long-term care insurers; amending s. 9 626.9541, F.S.; providing that certain restrictions 10 against unfair discrimination or unlawful rebates do 11 not include value-added products or services offered 12 or provided by insurers or their agents if certain 13 conditions are met; providing requirements for and 14 restrictions on insurers or agents offering or 15 providing such products or services; authorizing 16 insurers or agents to provide such products or 17 services as part of a pilot or testing program under 18 certain circumstances; specifying authorized value-19 added products and services; authorizing the Financial 20 Services Commission to adopt rules; providing an 21 effective date. 22 23 Be It Enacted by the Legislature of the State of Florida: 24 25

Section 1. Subsection (2) of

section 627.4301, Florida 26 Statutes, is amended to read: 27 627.4301 Genetic information for insurance purposes.— 28

(2) USE OF GENETIC INFORMATION.— 29

Florida Senate - 2023 SB 312 14-00841-23 2023312__ Page 2 of 9 CODING: Words stricken are deletions; words underlined are additions. (

a) In the absence of a diagnosis of a condition related to 30 genetic information, health insurers, life insurers, and long-31 term care insurers authorized to transact insurance in this 32 state may not cancel, limit, or deny coverage, or establish 33 differentials in premium rates, based on such information. 34 (

b) Health insurers, life insurers, and long-term care 35 insurers may not require or solicit genetic information, use 36 genetic test results, or consider a person’s decisions or 37 actions relating to genetic testing in any manner for any 38 insurance purpose. 39 (

c) A life insurer, long-term care insurer, or disability 40 income insurer authorized to transact insurance in this state: 41 1. May not cancel coverage based on genetic information; 42 require an applicant to take a genetic test as a condition of 43 insurability; or obtain, request, or otherwise require the 44 complete genome sequence of an applicant’s DNA. 45 2. May use genetic information for underwriting purposes 46 only if the genetic information is contained in the applicant’s 47 medical record. 48 (

d) This

section does not apply to the underwriting or 49 issuance of an accident-only policy, hospital indemnity or fixed 50 indemnity policy, dental policy, or vision policy or any other 51 actions of an insurer directly related to an accident-only 52 policy, hospital indemnity or fixed indemnity policy, dental 53 policy, or vision policy. 54 (

d) Nothing in this

section shall be construed as 55 preventing a life insurer or long-term care insurer from 56 accessing an individual’s medical record as part of an 57 application exam. Nothing in this

section prohibits a life 58

Florida Senate - 2023 SB 312 14-00841-23 2023312__ Page 3 of 9 CODING: Words stricken are deletions; words underlined are additions. insurer or long-term care insurer from considering a medical 59 diagnosis included in an individual’s medical record, even if a 60 diagnosis was made based on the results of a genetic test. 61

Section 2. Paragraph (

h) of subsection (1) of

section 62 626.9541, Florida Statutes, is amended to read: 63 626.9541 Unfair methods of competition and unfair or 64 deceptive acts or practices defined.— 65

(1) UNFAIR METHODS OF COMPETITION AND UNFAIR OR DECEPTIVE 66 ACTS.—The following are defined as unfair methods of competition 67 and unfair or deceptive acts or practices: 68 (

h) Unlawful rebates.— 69 1. Except as otherwise expressly provided by law, or in an 70 applicable filing with the office, knowingly: 71 a. Permitting, or offering to make, or making, any contract 72 or agreement as to such contract other than as plainly expressed 73 in the insurance contract issued thereon; 74 b.

Paying, allowing, or giving, or offering to pay, allow, 75 or give, directly or indirectly, as inducement to such insurance 76 contract, any unlawful rebate of premiums payable on the 77 contract, any special favor or advantage in the dividends or 78 other benefits thereon, or any valuable consideration or 79 inducement whatever not specified in the contract; 80 c.

Giving, selling, or purchasing, or offering to give, 81 sell, or purchase, as inducement to such insurance contract or 82 in connection therewith, any stocks, bonds, or other securities 83 of any insurance company or other corporation, association, or 84 partnership, or any dividends or profits accrued thereon, or 85 anything of value whatsoever not specified in the insurance 86 contract. 87

Florida Senate - 2023 SB 312 14-00841-23 2023312__ Page 4 of 9 CODING: Words stricken are deletions; words underlined are additions. 2. Nothing in paragraph (

g) or subparagraph 1. of this 88 paragraph shall be construed as including within the definition 89 of discrimination or unlawful rebates: 90 a. In the case of any contract of life insurance or life 91 annuity, paying bonuses to all policyholders or otherwise 92 abating their premiums in whole or in part out of surplus 93 accumulated from nonparticipating insurance; provided that any 94 such bonuses or abatement of premiums is fair and equitable to 95 all policyholders and for the best interests of the company and 96 its policyholders. 97 b.

In the case of life insurance policies issued on the 98 industrial debit plan, making allowance to policyholders who 99 have continuously for a specified period made premium payments 100 directly to an office of the insurer in an amount which fairly 101 represents the saving in collection expenses. 102 c. Readjustment of the rate of premium for a group 103 insurance policy based on the loss or expense thereunder, at the 104 end of the first or any subsequent policy year of insurance 105 thereunder, which may be made retroactive only for such policy 106 year. 107 d.

Issuance of life insurance policies or annuity contracts 108 at rates less than the usual rates of premiums for such policies 109 or contracts, as group insurance or employee insurance as 110 defined in this code. 111 e. Issuing life or disability insurance policies on a 112 salary savings, bank draft, preauthorized check, payroll 113 deduction, or other similar plan at a reduced rate reasonably 114 related to the savings made by the use of such plan. 115 3.a. No title insurer, or any member, employee, attorney, 116

Florida Senate - 2023 SB 312 14-00841-23 2023312__ Page 5 of 9 CODING: Words stricken are deletions; words underlined are additions. agent, or agency thereof, shall pay, allow, or give, or offer to 117 pay, allow, or give, directly or indirectly, as inducement to 118 title insurance, or after such insurance has been effected, any 119 rebate or abatement of the premium or any other charge or fee, 120 or provide any special favor or advantage, or any monetary 121 consideration or inducement whatever. 122 b.

Nothing in this subparagraph shall be construed as 123 prohibiting the payment of fees to attorneys at law duly 124 licensed to practice law in the courts of this state, for 125 professional services, or as prohibiting the payment of earned 126 portions of the premium to duly appointed agents or agencies who 127 actually perform services for the title insurer.

Nothing in this 128 subparagraph shall be construed as prohibiting a rebate or 129 abatement of an attorney fee charged for professional services, 130 or that portion of the premium that is not required to be 131 retained by the insurer pursuant to s. 627.782(1), or any other 132 agent charge or fee to the person responsible for paying the 133 premium, charge, or fee. 134 c.

No insured named in a policy, or any other person 135 directly or indirectly connected with the transaction involving 136 the issuance of such policy, including, but not limited to, any 137 mortgage broker, real estate broker, builder, or attorney, any 138 employee, agent, agency, or representative thereof, or any other 139 person whatsoever, shall knowingly receive or accept, directly 140 or indirectly, any rebate or abatement of any portion of the 141 title insurance premium or of any other charge or fee or any 142 monetary consideration or inducement whatsoever, except as set 143 forth in sub-subparagraph b.; provided, in no event shall any 144 portion of the attorney fee, any portion of the premium that is 145

Florida Senate - 2023 SB 312 14-00841-23 2023312__ Page 6 of 9 CODING: Words stricken are deletions; words underlined are additions. not required to be retained by the insurer pursuant to s. 146 627.782(1), any agent charge or fee, or any other monetary 147 consideration or inducement be paid directly or indirectly for 148 the referral of title insurance business. 149 4.a. Paragraph (

g) or subparagraph 1. may not be construed 150 as including within the definition of discrimination or unlawful 151 rebates the offer or provision by an insurer or an agent of the 152 insurer, including by or through employees, affiliates, or 153 third-party representatives, of value-added products or services 154 at no or reduced cost when such products or services are not 155 specified in the insurance policy, if the product or service 156 relates to the insurance coverage and is primarily designed to 157 do one or more of the following: 158 (

I) Provide loss mitigation or loss control; 159 (II) Reduce claim costs or claim settlement costs; 160 (III) Provide education about liability risks or risk of 161 loss to persons or property; 162 (IV) Monitor or assess risk, identify sources of risk, or 163 develop strategies for eliminating or reducing risk; 164 (

V) Enhance health; 165 (VI) Enhance financial wellness through items such as 166 education or financial planning services; 167 (VII) Provide post-loss services; 168 (VIII) Incentivize behavioral changes to improve the health 169 or reduce the risk of death or disability of a policyholder, 170 potential policyholder, certificateholder, potential 171 certificateholder, insured, potential insured, or applicant; or 172 (IX) Assist in the administration of employee or retiree 173 benefit insurance coverage. 174

Florida Senate - 2023 SB 312 14-00841-23 2023312__ Page 7 of 9 CODING: Words stricken are deletions; words underlined are additions. b. The cost to the insurer or agent offering the product or 175 service to a customer must be reasonable in comparison to the 176 customer’s premiums or insurance coverage for the policy class. 177 c. If the insurer or agent is providing the product or 178 service, the insurer or agent must ensure that the customer is 179 provided with contact information to assist the customer with 180 questions regarding the product or service. 181 d.

The availability of the product or service must be based 182 on documented objective evidence, and the product or service 183 must be offered in a manner that is not unfairly discriminatory. 184 The documented evidence must be maintained by the insurer or 185 agent and produced upon request by the office or the department. 186 e.

If an insurer or agent has a good faith belief, but does 187 not have sufficient evidence to demonstrate, that the product or 188 service meets any of the criteria in sub-sub-subparagraphs 189 a.(I)-(IX), the insurer or agent may provide the product or 190 service in a manner that is not unfairly discriminatory as

part 191 of a pilot or testing program for up to 1 year. An insurer or 192 agent must notify the office or department, as applicable, of 193 such pilot or testing program offered to consumers in this state 194 before commencing the program. The insurer or agent may commence 195 the program unless the office or department, as applicable, 196 objects to the program within 21 days after receiving the 197 notice. 198 f.

An insurer, agent, or representative thereof may not 199 offer or provide insurance as an inducement to the purchase of 200 another policy or otherwise use the words “free,” “no cost,” or 201 similar words in an advertisement. 202 g. For purposes of this subparagraph, value-added products 203

Florida Senate - 2023 SB 312 14-00841-23 2023312__ Page 8 of 9 CODING: Words stricken are deletions; words underlined are additions. and services may include: 204 (

I) Offering or giving noncash gifts, items, or services, 205 including meals to or charitable donations on behalf of a 206 customer, in connection with the marketing, sale, purchase, or 207 retention of contracts of insurance, provided the cost does not 208 exceed an amount determined to be reasonable by commission rule 209 per policy year per term. The offer must be made in a manner 210 that is not unfairly discriminatory.

The customer may not be 211 required to purchase, continue to purchase, or renew a policy in 212 exchange for the gift, item, or service. 213 (II) Offering or giving noncash gifts, items, or services, 214 including meals to or charitable donations on behalf of a 215 customer, to commercial or institutional customers in connection 216 with the marketing, sale, purchase, or retention of contracts of 217 insurance, provided the cost is reasonable in comparison to the 218 premium or proposed premium and the cost of the gift or service 219 is not included in any amounts charged to another person or 220 entity.

The offer must be made in a manner that is not unfairly 221 discriminatory. The customer may not be required to purchase, 222 continue to purchase, or renew a policy in exchange for the 223 gift, item, or service. 224 (III) Conducting raffles or drawings permitted by state 225 law, provided there is no financial cost to entrants for 226 participating, the raffle or drawing does not obligate entrants 227 to purchase insurance, the prizes are not valued in excess of a 228 reasonable amount as determined by commission rule, and the 229 raffle or drawing is open to the public.

The raffle or drawing 230 must be offered in a manner that is not unfairly discriminatory. 231 The entrant may not be required to purchase, continue to 232

Florida Senate - 2023 SB 312 14-00841-23 2023312__ Page 9 of 9 CODING: Words stricken are deletions; words underlined are additions. purchase, or renew a policy in exchange for the gift, item, or 233 service. 234 h. The commission may adopt rules to administer this 235 subparagraph to ensure consumer protection. Such rules, 236 consistent with applicable law, may address, among other issues, 237 consumer data protections and privacy, consumer disclosure, and 238 unfair discrimination. 239

Section 3. This act shall take effect July 1, 2023. 240