Title: Interstate Insurance Product Regulation Compact

Summary: Expands opt-out provision to exclude annuity & disability income insurance from uniform interstate standards for insurance products; revises effective date for applicability of uniform standards to other insurance products; provides that state prospectively opts out of future interstate standards; deletes authority to opt out of administrative order; deletes opt out of additional specified uniform standards.

Full Text:
An act relating to interstate insurance product regulation compact; amending s. 626.9933, F.S.; expanding opt out provision to include annuity and disability income insurance; amending s. 626.9934, F.S.; revising the effective date for applicability of uniform standards to certain insurance products; providing that the state prospectively opts out of specified future interstate standards; deleting authority to opt out of an administrative order; deleting opt out of additional specified uniform standards; de leting applicability; providing an effective date. Be It Enacted by the Legislature of the State of Florida: Section 1. Section 626.9933, Florida Statutes, is amended to read: 626.9933 Opt out from annuity, disability income, and long-term care products standards.-Pursuant to Article VII of the Interstate Insurance Product Regulation Compact, adopted pursuant to s. 626.9932 by this act,this state prospectively opts out of all uniform standards adopted by the Interstate Insurance Product Regulat ion Commission involving annuity, disability income, and long-term care insurance products, and HB 1425 2018 such opt out may not be treated as a material variance in the offer or acceptance of this state to participate in the compact. Section 2. Section 626.9934, Florida Statutes, is amended to read: 626.9934 Effective date of compact standards; opt out procedures; state law exemptions; legislative notice.-(1) Except as provided in s. 626.9933 and this section, all uniform standards adopted by the Interstate I nsurance Product Regulation Commission as of March 9, 2018 March 1, 2013,are adopted by this state. (2) Notwithstanding subsections (3), (4), (5), and (6) of Article VII of the Interstate Insurance Product Regulation Compact as adopted by this act, This state prospectively opts out of any new uniform standard, or amendments to existing uniform standards, adopted by the Interstate Insurance Product Regulation Commission after March 9, 2018 March 1, 2013,if such amendments substantially alter or add to ex isting uniform standards adopted by this state pursuant to subsection (1), until such time as this state enacts legislation to adopt new uniform standards or amendments to existing standards adopted by the commission after March 9, 2018 March 1, 2013.(3) The authority under Article VII of the Interstate Insurance Product Regulation Compact to opt out of a uniform standard includes an order issued under chapter 120, the Administrative Procedure Act. HB 1425 2018 (4) In addition to the uniform standards and amendment sto uniform standards that the state opts out of pursuant to subsection (2), pursuant to subsections (4) and (5) of Article VII of the Interstate Insurance Product Regulation Compact, this state opts out of the following uniform standards adopted by the Interstate Insurance Product Regulation Commission: (a) The-day period for the unconditional refund of premiums, plus any fees or charges under s. 626.99. (b) Underwriting criteria limiting the amount, extent, or kind of life insurance based on past or future travel in a manner that is inconsistent with s. 626.9541(1)(dd) as implemented by the Office of Insurance Regulation. (c) Any other uniform standard that conflicts with statutes or rules of this state providing consumer protections for products covered by the compact. (5) The exclusivity provision of paragraph (2)(b) of Article XVI of the Interstate Insurance Product Regulation Compact applies only to those uniform standards adopted by the Interstate Insurance Product Regulation Commission in accordance with the terms of the compact and does not apply to those standards that this state has opted out of pursuant to this act or the compact. In addition, the exclusivity provision does not limit or render inapplicable standards adopted by this stat ein the absence of a standard adopted by the commission. Notwithstanding paragraph (2)(b) of Article XVI of the compact, HB 1425 2018 standards adopted by this state continue to apply to the content, approval, and certification of products in this state, including, bu tnot limited to: (a) The prohibition against a surrender or deferred sales charge of more than percent pursuant to s. 627.4554. (b) Notification to an applicant of the right to designate a secondary addressee at the time of application under s. 627.4555. (c) Notification of secondary addressees at least days before the impending lapse of a policy under s. 627.4555. (d) The inclusion of a clear statement pursuant to s. 627.803 that the benefits, values, or premiums under a variable annuity are indeterminate and may vary. (e) Interest on surrender proceeds pursuant to s. 627.482. (3)(6) After enactment of this section, if the Interstate Insurance Product Regulation Commission adopts any new uniform standard or amendment to the existing uniform standard as specified in subsection (2), the Office of Insurance Regulation must shall immediately notify the Legislature of such new standard or amendment. Section 3. This act shall take effect upon becoming a law.