The 2023 Florida Statutes (including Special Session C)

Title XXXVII
INSURANCE

Chapter 626
INSURANCE FIELD REPRESENTATIVES AND OPERATIONS

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F.S. 626.9521

¹626.9521 Unfair methods of competition and unfair or deceptive acts or practices prohibited; penalties.—

(1) No person shall engage in this state in any trade practice which is defined in this part as, or determined pursuant to s. 626.951 or s. 626.9561 to be, an unfair method of competition or an unfair or deceptive act or practice involving the business of insurance.

(2) Except as provided in subsection (3), any person who violates any provision of this part is subject to a fine in an amount not greater than $12,500 for each nonwillful violation and not greater than $100,000 for each willful violation. Fines under this subsection imposed against an insurer may not exceed an aggregate amount of $50,000 for all nonwillful violations arising out of the same action or an aggregate amount of $500,000 for all willful violations arising out of the same action. The fines may be imposed in addition to any other applicable penalty.

(3)(a) If a person violates s. 626.9541(1)(l), the offense known as “twisting,” or violates s. 626.9541(1)(aa), the offense known as “churning,” the person commits a misdemeanor of the first degree, punishable as provided in s. 775.082, and an administrative fine not greater than $12,500 shall be imposed for each nonwillful violation or an administrative fine not greater than $187,500 shall be imposed for each willful violation. To impose an administrative fine for a willful violation under this paragraph, the practice of “churning” or “twisting” must involve fraudulent conduct.

(b) If a person violates s. 626.9541(1)(ee) by willfully submitting fraudulent signatures on an application or policy-related document, the person commits a felony of the third degree, punishable as provided in s. 775.082, and an administrative fine not greater than $187,500 shall be imposed for each violation.

(c) If a person violates any provision of this part and such violation is related to a covered loss or covered claim caused by an emergency for which the Governor declared a state of emergency pursuant to s. 252.36, such person is subject to a fine in an amount not greater than $25,000 for each nonwillful violation and not greater than $200,000 for each willful violation. Fines imposed under this paragraph against an insurer may not exceed an aggregate amount of $100,000 for all nonwillful violations arising out of the same action or an aggregate amount of $1 million for all willful violations arising out of the same action.

(d) Administrative fines under paragraphs (a) and (b) may not exceed an aggregate amount of $125,000 for all nonwillful violations arising out of the same action or an aggregate amount of $625,000 for all willful violations arising out of the same action.

(4) A licensee must make all reasonable efforts to ascertain the consumer’s age at the time an insurance application is completed.

(5) If a consumer who is a senior citizen is a victim, a video deposition of the victim may be used for any purpose in any administrative proceeding conducted pursuant to chapter 120 if all parties are given proper notice of the deposition in accordance with the Florida Rules of Civil Procedure.

History.—s. 9, ch. 76-260; s. 807, ch. 82-243; ss. 206, 207, ch. 90-363; s. 4, ch. 91-429; s. 37, ch. 92-146; s. 7, ch. 2008-66; ss. 5, 6, ch. 2008-237; s. 50, ch. 2010-175; s. 13, ch. 2023-172.

¹Note.—Section 12, ch. 2008-237, provides in part that “[e]ffective [June 30, 2008,] the Department of Financial Services may adopt rules to implement this act.”

F.S. 626.9521 on Google Scholar

F.S. 626.9521 on Casetext

Amendments to 626.9521

Arrestable Offenses / Crimes under Fla. Stat. 626.9521

Level: Degree
Misdemeanor/Felony: First/Second/Third

S626.9521 3a - FRAUD - INSURANCE POLICY TWISTING OR CHURNING - M: F

S626.9521 3b - FRAUD-IMPERSON - FALSE SIGNATURE INSURANCE APP POLICY DOCUMENT - F: T

Annotations, Discussions, Cases:

Cases from cite.case.law:

DOLAN, v. JETBLUE AIRWAYS CORPORATION,, 385 F. Supp. 3d 1338 (S.D. Fla. 2019)

. . . says JetBlue, are regulated by various Florida insurance statutes: Florida Statutes sections 626.112, 626.9521 . . . JetBlue points to Florida Statutes sections 626.112, 626.9521, and 626.9531, under Florida's Unfair Insurance . . . Section 626.9521 prohibits a deceptive act or practice involving the business of insurance. . . . arguments that these particular activities, as alleged, are violative of Florida Statutes sections 626.112, 626.9521 . . .

BHASKER, v. KEMPER CASUALTY INSURANCE COMPANY, 284 F. Supp. 3d 1191 (D.N.M. 2018)

. . . . § 626.9521 ; Joseph v. . . .

BOWE, v. PUBLIC STORAGE,, 106 F. Supp. 3d 1252 (S.D. Fla. 2015)

. . . . §§ 626.9521, 626.9541. . . .

BUELL, v. DIRECT GENERAL INSURANCE AGENCY, INC. Of s,, 267 F. App'x 907 (11th Cir. 2008)

. . . . §§ 626.9521, 626.9541(l)(z). . . .

MACK, v. DEPARTMENT OF FINANCIAL SERVICES, STATE OF FLORIDA,, 914 So. 2d 986 (Fla. Dist. Ct. App. 2005)

. . . Mack violated sections 624.11(1), 626.611(5), (7), (8), (9) and (13), 626.621(2), (3) and (12), 626.9521 . . .

PRUDENTIAL PROPERTY AND CASUALTY INSURANCE COMPANY, v. GERBER,, 773 So. 2d 571 (Fla. Dist. Ct. App. 2000)

. . . During the pendency of this action, Gerber sued Prudential claiming that Prudential violated section 626.9521 . . .

BRISTOL HOTEL MANAGEMENT CORPORATION, v. AETNA CASUALTY SURETY COMPANY,, 20 F. Supp. 2d 1345 (S.D. Fla. 1998)

. . . section subjecting an insurer to specific monetary penalties by the Department of Insurance, see § 626.9521 . . .

THE FLORIDA BAR, v. L. BEACH,, 699 So. 2d 657 (Fla. 1997)

. . . The referee found that respondent’s actions violated section 626.9521, Florida Statutes (1995), proscribing . . . the AFBG and consequently Respondent, violated certain provisions of the insurance code, to wit: § 626.9521 . . .

K. WERNER, v. STATE DEPARTMENT OF INSURANCE AND TREASURER,, 689 So. 2d 1211 (Fla. Dist. Ct. App. 1997)

. . . Statutes (1989), which forbids wilful misrepresentation of any annuity or insurance contract, and section 626.9521 . . .

WHITAKER, v. DEPARTMENT OF INSURANCE AND TREASURER,, 680 So. 2d 528 (Fla. Dist. Ct. App. 1996)

. . . and 626.611(9) (fraudulent or dishonest practices under license) and fifteen violations of section 626.9521 . . .

W. GANTER, v. DEPARTMENT OF INSURANCE,, 620 So. 2d 202 (Fla. Dist. Ct. App. 1993)

. . . .-9541(l)(k)l [sic] and engaged in unfair and deceptive acts in the business of insurance (Sec. 626.9521 . . . [Section 626.9521, Florida Statutes] (j) Made false or fraudulent statements or representation on, or . . .

DYER, v. DEPARTMENT OF INSURANCE AND TREASURER, a, 585 So. 2d 1009 (Fla. Dist. Ct. App. 1991)

. . . Sections 626.9521 and 626.9541 are found in Part X of chapter 626, known as the “Unfair Insurance Trade . . . ” and, the Department argues, additional penalties by administrative fine are authorized by section 626.9521 . . . impose an additional penalty for each specific unfair trade practices violation pursuant to section 626.9521 . . . Section 626.9521 makes it unlawful for any person to engage in an unfair trade practice as defined by . . . Nevertheless, even after traversing from section 626.9541 to section 626.9521 to section 627.381, thence . . .

DEPARTMENT OF INSURANCE AND TREASURER v NATIONAL BENEFIT LIFE INSURANCE COMPANY, 32 Fla. Supp. 2d 179 (Fla. Div. Admin. Hearings 1988)

. . . Additional violations charged are: Section 626.9521 Unfair methods of competition and unfair or deceptive . . . Section 626.9521 prohibits any person from engaging in an unfair or deceptive act or practice involving . . . Therefore, it is concluded that National Benefit is guilty of violating Sections 626.9521 and 626.9541 . . . Find National Benefit Life Insurance Company guilty of violating Sections 626.9521 and 626.9541 and Rules . . .

AUSTIN v. SERVAC SHIPPING LINE, A. Co. Co., 794 F.2d 941 (5th Cir. 1986)

. . . . § 626.9521 (West 1984), and specifically provides that unfair claims practices are one type of unfair . . . The section prohibiting unfair practices, section 626.9521, provides that the violator shall be subject . . .