Florida Administrative Code › 69 - DEPARTMENT OF FINANCIAL SERVICES › 69O - OIR - Insurance Regulation › Chapter 69O-125 - UNFAIR DISCRIMINATION › Section 69O-125.003 - Unfair Discrimination Because of Travel Plans

Current through Reg. 50, No. 138; July 16, 2024
(1) No insurer nor person authorized to
				engage in the business of insurance in the State of Florida shall refuse to
				issue or refuse to continue any policy, contract or certificate of insurance of
				any individual, or limit the amount, extent or kind of insurance coverage
				offered to an individual, an accident, disability or health insurance policy or
				certificate, because of the intent of the applicant to engage in future lawful
				foreign travel or based upon past lawful foreign travel, unless the insurer can
				demonstrate that insureds who have traveled or intend to travel are a separate
				actuarially supportable class whose risk of loss is different from those
				insureds who have not traveled and do not intend to travel.
(2) No insurer nor person authorized to
				engage in the business of insurance in the State of Florida, shall, in
				determining the rates charged an applicant for coverage under any policy,
				contract or certificate of life insurance, annuity contract, accident,
				disability or health insurance, issued or to be issued to be delivered to any
				resident of this state, consider the intent of the applicant to engage in
				future lawful foreign travel or past lawful travel of the applicant, unless the
				insurer can demonstrate that insureds who have traveled or intend to travel are
				a separate actuarially supportable class whose risk of loss is different from
				those insureds who have not traveled and do not intend to travel.
(3) No insurer nor person authorized to
				engage in the business of insurance in the State of Florida shall refuse to
				issue any policy, contract or certificate of life insurance to or refuse to
				continue any policy, contract or certificate of life insurance of any
				individual or limit the amount, extent or kind of life insurance coverage
				offered to an individual based solely on the individual's past lawful foreign
				travel.
(4) No insurer nor person
				authorized to engage in the business of insurance in the State of Florida shall
				refuse to issue any policy, contract or certificate of life insurance to or
				refuse to continue any policy, contract or certificate of life insurance of an
				individual, or limit the amount, extent or kind of life insurance coverage
				offered an individual based solely on the individual's future lawful foreign
				travel plans unless the insurer can demonstrate that individuals who travel are
				a separate actuarially supportable class whose mortality risk is different from
				that of individuals who do not travel, and that such risk classification is
				based on sound actuarial principles and actual or reasonably anticipated
				experience that correlates to the risk of travel to a specific
				destination.
(5) An insurer shall
				file for approval information demonstrating that individuals who travel to a
				specific destination constitute a separate actuarially supportable class. The
				insurer shall not utilize such information within any underwriting decision
				resulting in a refusal to issue, refusal to continue, limitation on amount,
				extent or kind of life insurance coverage available to an individual until the
				Office has first approved the filing and determined that the insurer has
				demonstrated that the underwriting proposed meets compliance with the standards
				of section 626.9541(1)(dd),
				F.S. Nothing in this rule prevents an insurer from asking questions about
				foreign travel on an application in order to compile information provided such
				information is not used in any underwriting decision unless the insurer has
				received prior approval from the Office.
(6) In determining individuals who travel are
				a separate actuarially supportable class whose risk of loss is different from
				those individuals who do not travel based on sound actuarial principles and
				actual or reasonably anticipated experience that correlates to the risk of
				travel to a specific destination, insurers shall:
(a) Have performed a detailed actuarial
				analysis detailing the specific impact of the proposed risk;
(b) Demonstrate that all similar risks with
				similar risk exposure are similarly treated and that the risk is outside of the
				underwriting parameters that the insurer is accepting for its maximum rated
				risks;
(c) Use statistically
				credible data that is specific and relevant to the analysis and risk being
				evaluated, that is, using a country population death rate is not relevant to
				the analysis of the risk of short-term travel. In the absence of actual
				experience, an actuary may submit for the Office's consideration clear
				actuarial evidence, including clinical experience or expert opinion relied upon
				by the actuary that demonstrates to the Office that differences in risk are
				related to the travel;
(d) Disclose
				the range of underwriting and rating options and how each is supported by the
				analysis;
(e) Maintain a report
				prepared by the actuary providing the information used and relied upon by the
				actuary in preparing his conclusions, including but not limited to: summarizing
				the source, basis and relevancy of data used, the impact of the risk on
				expected loss, the range of expected loss within the underwriting class and how
				the proposed travel risk falls inside or outside of such underwriting range,
				the analysis performed and the basis of any conclusions reached. Such report
				shall disclose how compliance with all appropriate actuarial standards of
				practice is met and specifically detail any standards that are
				not.