Florida Office of Insurance Regulation Reminds Insurers that ‘Sliding’ Violates Unfair Insurance Trade Practices Act
Feb 9, 2015
In Bulletin OIR-15-01M dated February 3, 2015 (but published today, February 6), the Florida Office of Insurance Regulation (“OIR”) reminded Florida insurers to refrain from engaging in practices that violate Florida’s Unfair Insurance Trade Practices Act and its prohibition against unfair methods of competition, and unfair or deceptive acts or practices pursuant to section 626.9541(z), Florida Statutes (2014)–specifically the practice of “sliding.”
Although the Bulletin is addressed to “All Insurers,” the OIR explained that it has learned that some insurers offering travel insurance through retail travel agencies in conjunction with travel purchases made via Web sites require consumers to opt out of purchasing ancillary travel insurance by deselecting a “radio button” or check box. If a consumer does not deselect the insurance offering on the Web site, the cost of the coverage is automatically added to the consumer’s total purchase.
“Sliding” is defined in Florida law as “charging an applicant for a specific coverage or product, in addition to the cost of the insurance coverage applied for, without the informed consent of the applicant.”
The practice of automatically charging consumers for ancillary travel insurance (unless consumers take action to decline coverage) does not comply with the requirement of “informed consent.” Instead, consumers must be given the opportunity to affirmatively accept travel insurance or any other insurance coverage.
The OIR notes that insurers are liable for the actions of agents and others selling their products that engage in sliding, or otherwise fail to comply with the Unfair Insurance Trade Practices Act.
Bulletin OIR-15-01M is attached for review.
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