Florida OIR Submits 2009 Annual Report on Freedom to Travel Law
Mar 2, 2009
Today, the Florida Office of Insurance Regulation (“OIR”) submitted its third annual “Freedom to Travel” report, which documents instances during 2009 under which applicants were denied life insurance, refused continuance, or had coverage limited based on future travel plans. It also outlines the number of insurers taking such action and their rationale.
Subsection 626.9541(1)(dd), Florida Statutes, enacted in 2006, defines the conditions under which the refusal of life insurance, or the refusal to continue existing life insurance based on past or future lawful travel constitutes an unfair trade practice. The law also requires the OIR to report to Florida’s Senate President and House Speaker by March 1 of each year on the implementation of this law.
The OIR press release detailing the 2009 Freedom to Travel Report is reprinted below. To view the 2009 and 2008 Reports, click on the hyperlinks below.
Should you have any questions or comments, please contact Colodny Fass.
Florida Office of Insurance Regulation Submits Annual Report on Freedom to Travel Law
TALLAHASSEE, Fla. – Florida Insurance Commissioner Kevin McCarty has submitted the 2009 Freedom to Travel Report to legislative leaders detailing the Office of Insurance Regulation’s (Office) efforts to implement the “Freedom to Travel Act.” Passed in 2006 and codified into law at Section 626.9541(1)(dd), Florida Statutes, the legislation placed strict limitations on insurance companies’ ability to deny or increase premiums for life insurance based on foreign travel.
The 2009 report to the President of the Florida Senate and to the Speaker of the House of Representatives documents a decline in the number of instances and companies that have denied or limited coverage based on foreign travel plans. The report also outlines the Office’s enforcement efforts. Since the 2008 Freedom to Travel Report, the Office has fined two companies a total of $310,000 for noncompliance with the statute.
“This report shows that we continue to see progress on this very important issue,” remarked Commissioner McCarty. “The Florida Legislature’s action and the Office’s enforcement efforts have helped preserve Americans’ rights to unrestrained, lawful travel outside the United States.”
The law states that an insurer may not refuse to issue life insurance to; refuse to continue the life insurance of; or limit the amount, extent, or kind of life insurance coverage available to an individual based solely on the individual’s past lawful foreign travel experiences or future travel plans.
The report also names 93 insurance companies that ask travel-related questions on at least one of their life insurance applications. The data call, sent to 493 insurance entities authorized to write life insurance or annuities in Florida, allowed the Office to survey one million life insurance applications.
The Office found evidence that five companies had violated Section 626.9541(1)(dd) regarding the treatment of foreign travel. Pending the outcome of further investigation, it is likely that these companies could be fined under the statute.
This is the third report prepared by the Office on the Freedom to Travel issue.
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