The Florida Senate
BILL ANALYSIS AND FISCAL IMPACT STATEMENT
(This document is based on the provisions contained in the legislation as of the latest date listed below.)
Prepared By: The Professional Staff of the Committee on Appropriations
BILL: CS/CS/SB 1292
INTRODUCER: Appropriations Committee (Recommended by Appropriations Subcommittee on
Agriculture, Environment, and General Government); Banking and Insurance
Committee; and Senators Gruters and Bradley
SUBJECT: Fraud Prevention
DATE: March 2, 2022 REVISED:
ANALYST STAFF DIRECTOR REFERENCE ACTION
1. Arnold Knudson BI Fav/CS
2. Sanders Betta AEG Recommend: Fav/CS
3. Sanders Sadberry AP Fav/CS
Please see Section IX. for Additional Information:
COMMITTEE SUBSTITUTE - Substantial Changes
I. Summary:
CS/CS/SB 1292 modifies provisions in several areas related to the prevention of various forms of
fraud. The bill:
 Requires the electronic credentialing system administered by the Department of Highway
Safety and Motor Vehicles (DHSMV) to display driver vehicle registration and insurance
information, provide the driver notice of any lapse in insurance coverage, and allow the
driver to use the system to update policy information;
 Requires the DHSMV to provide recommendations on the means by which the DHSMV, law
enforcement agencies, and other entities authorized by the DHSMV may electronically verify
a driver’s compliance with chapter 324, Florida Statutes, the Financial Responsibility Law
of 1955;
 Requires a seller of any service contract with an automatic renewal provision to allow a
consumer to cancel the contract in the same manner, and by the same means, as the contract
was executed;
 Subjects a public adjuster, public adjuster apprentice, or other person not otherwise exempt
from licensure as a public adjuster, to a fine not to exceed $20,000 per act for a violation of
prohibited acts under section 626.854, Florida Statutes, during a state of emergency;
 Authorizes the Department of Financial Services (DFS) to impose a $2,000 per day
administrative fine on an insurer that fails or refuses to comply with section 633.126, Florida
BILL: CS/CS/SB 1292 Page 2
Statutes, related to fraudulent insurance claims and crimes with respect to a fire and
explosion;
 Authorizes the DFS Division of Investigative and Forensic Services (DIFS) to adopt rules to
administer section 633.126, Florida Statutes, related to fraudulent insurance claims and
crimes with respect to a fire and explosion;
 Requires a motor vehicle service agreement company’s written advertisement to fully
disclose in at least 12-point, boldface font, the name, address, and Florida Company Code of
the motor vehicle service agreement company;
 Requires a motor vehicle service agreement company’s radio or television advertisement to
fully disclose the full legal name of the licensed salesperson or the motor vehicle agreement
company;
 Requires a motor vehicle service agreement company’s telephone solicitation fully identify
the soliciting licensed salesperson’s full legal name and license number at the beginning of
the telephone solicitation, and the salesperson’s telephone number when the telephone
solicitation ends;
 Clarifies a written advertisement does not include material prepared and presented to a
consumer at the point of sale of the product to be covered by warranty or service agreement.
 Provides a technical change under section 775.15, Florida Statutes, related to time limitations
for prosecuting criminal offenses, to allow separate prosecutions of workers’ compensation
fraud under section 440.105, Florida Statutes, and false and fraudulent insurance claims
under section 817.234, Florida Statutes, within five years of a violation of either section; and
 Authorizes an insurer damaged as a result of insurance fraud to recover reasonable
investigation and litigation expense, including attorney fees, at the trial and appellate court, if
the insurer had reported the possible fraudulent insurance act to the DIFS and the possible
fraudulent insurance act was criminally adjudicated as guilty.
The bill has an indeterminate, yet potentially negative impact on state revenues and expenditures.
The bill provides an appropriation of $1,413,270 to implement certain provisions of the bill. See
Section V. Fiscal Impact Statement below.
The bill takes effect upon becoming a law, except as otherwise provided.
II. Present Situation:
Electronic Credentialing System
The 2021 Legislature1 created the electronic credentialing system within the Department of
Highway Safety and Motor Vehicles (DHSMV) for purposes of establishing a secure and
uniform system for issuing an optional digital proof of driver license or identification card.2 The
electronic credentialing system may not retain internet protocol addresses, geolocation data, or
other information that describes the location, computer, computer system, or computer network
from which a customer accesses the system.3
1
Chapter 2021-235, L.O.F.
2
Section 322.032(2)(a), F.S.
3
Section 322.032(2)(b), F.S.
BILL: CS/CS/SB 1292 Page 3
Required Notification of New, Cancelled, Nonrenewed, and Lapsed Motor Vehicle
Insurance Coverages
Section 324.0221, F.S., requires insurers to report new, cancelled, or nonrenewed personal injury
protection or property damage insurance coverages to DHSMV within 10 days. Prior to notifying
the DHSMV, the insurer must provide the named insured, or the first-named insured in the case
of a commercial fleet policy, with written notice the cancellation or nonrenewal will be reported
to the DHSMV. The notice must also inform the named insured that failure to maintain personal
injury protection and property damage insurance coverages on a motor vehicle when required by
law may result in the loss of registration and driving privileges in Florida and inform the named
insured of the amount of any reinstatement fees.
Service Contracts with Automatic Renewal Provisions
Florida law governs the automatic renewal provisions of service contracts such that a service
contract may automatically renew at the end of its term without any additional action required by
either party under certain circumstances.
If the automatic renewal provision renews a service contract for more than one month and caused
the service contract to be in effect for more than six months after the service contract was
executed, the seller must clearly and conspicuously disclose the automatic renewal provision to
the consumer. Renewal is effective unless the consumer does not give notice to the seller of
intent to terminate the service contract.4 However, in the case of a service contract with a term of
12 months that automatically renews for more than one month, the seller must provide written or
electronic notification to consumers no more than 60 and no less than 30 days prior to the
cancellation deadline pursuant to the automatic renewal provision.5
Violations of the disclosure and notice requirements void an automatic renewal provision,
rendering it unenforceable,6 unless the seller demonstrates:
 It has established and implemented written procedures to comply with, and enforce, the
requirements as part of their routine business practice;
 The failure to comply was the result of error; and
 It has provided, as part of its routine business practice, a refund or credit for the unearned
portion of the renewed contract, starting from the date the seller is notified of the error. 7
State and federal financial institutions or any subsidiary or affiliate thereof, health studios,8
licensed insurers, warranty associations,9 health care service organizations10 and programs,11
4
Section 501.165(2)(a), F.S.
5
Section 501.165(2)(b), F.S.
6
Section 501.165(2)(e), F.S.
7
Section 501.165(2)(b), F.S.
8
Pursuant to s. 501.0125(1), F.S., any person who is engaged in the sale of services for instruction, training, or assistance in a
program of physical exercise or in the sale of services for the right or privilege to use equipment or facilities in furtherance of
a program of physical exercise. The term does not include an individual acting as a personal trainer.
9
Chapter 634, F.S., includes motor vehicle service agreement companies, home warranty associations, and service warranty
associations.
10
Chapter 641, F.S., includes health maintenance organizations, prepaid health clinics, and health care services.
11
Chapter 636, F.S., includes prepaid limited health service organizations and discount plan organizations.
BILL: CS/CS/SB 1292 Page 4
electric utilities,12 and private companies providing certain municipal services13 are expressly
exempt.
The Department of Financial Services
The Department of Financial Services (DFS) is statutorily responsible for:
 Carrying out the state’s accounting and auditing functions, including preparing the state’s
Comprehensive Annual Financial Report; monitoring state contracts; and making payment
for state expenditures;
 Implementing state fire prevention and control measures, including the investigation of arson
and other suspicious fires; training and certification of firefighter candidates; and regulation
of explosive storage and use;
 Operating the state’s risk management program and securing insurance and reinsurance for
covered state liabilities;
 Managing the state Treasury and directing safekeeping and the investment of all state funds;
 Managing the deferred compensation program for state employees;
 Investigating fraud, including insurance fraud, public assistance fraud, and false claims
against the state;
 Regulating cemeteries and funeral homes;
 Licensing and oversight of insurance agents and agencies;
 Ensuring Florida employers provide workers’ compensation coverage for their employees in
a cost effective manner;
 Assisting consumers in the resolution of issues pertaining to insurance and funeral services;
and
 Collecting and returning unclaimed property belonging to Florida residents.14
The DFS is composed of the following divisions and offices:
 Accounting and Auditing;
 Administration;
 Consumer Services;
 Funeral, Cemetery, and Consumer Services;
 Insurance Agent and Agency Services;
 Insurance Consumer Advocate;
 Investigative and Forensic Services;
 Public Assistance Fraud;
 Rehabilitation and Liquidation;
 Risk Management;
 State Fire Marshal;
 Treasury;
 Unclaimed Property; and
12
Pursuant to s. 366.02(2), F.S., any municipal electric utility, investor-owner electric utility, or rural electric cooperative
which owns, maintains, or operates an electric generation, transmission, or distribution system within the state.
13
Pursuant to s. 180.05, F.S., any company or corporation duly authorized under the laws of the state to construct or operate
water works systems, sewerage systems, sewage treatment works, garbage collection, and garbage disposal plants.
14
The Florida Department of Financial Services (DFS), Statement of Agency Organization and Operation,
https://www.myfloridacfo.com/sitePages/required/agencyorg.htm (last visited Jan. 10, 2022).
BILL: CS/CS/SB 1292 Page 5
 Workers’ Compensation.15
The DFS Division of Investigative and Forensic Services
The Division of Investigative and Forensic Services (DIFS) houses all law enforcement and
forensic components residing within the DFS. The DIFS has broad authority to investigate a
wide range of fraudulent and criminal acts within and outside the state including, but not limited
to, insurance fraud; workers’ compensation fraud investigations; fire, arson, and explosives
investigations; and fire and explosive sample analysis.16 The DIFS also refers any records
tending to show criminal violations to state or federal law enforcement or prosecutorial agencies,
and provides investigative to those agencies as required, when the DIFS believes that a criminal
law of the state has been violated.17
The DFIS is composed of the following bureaus and offices:
 Forensic Services;
 Fire, Arson, and Explosives Investigations;
 Fiscal Integrity;
 Insurance Fraud; and
 Workers’ Compensation Fraud.18
The DFS Division of State Fire Marshal
The Division of State Fire Marshal (State Fire Marshal) works to reduce the loss of life and
property to fire and other disasters statewide through internal and external leadership, standards
and training, and prevention and education. The State Fire Marshal has the expressed authority to
enforce all laws and adopted rules related to:
 The prevention of fire and explosion through the regulation of conditions which could cause
fire or explosion, the spread of fire, and panic resulting therefrom;
 Installation and maintenance of fire alarm systems and fire protection systems, including fire
suppression systems, fire-extinguishing equipment, and fire sprinkler systems;
 Servicing, repairing, recharging, testing, marking, inspecting, installing, maintaining, and
tagging of fire extinguishers, preengineered systems, and individually designed fire
protection systems;
 The training and licensing of persons engaged in the business of servicing, repairing,
recharging, testing, marking, inspecting, installing, maintaining, and tagging of fire
extinguishers, preengineered systems, and individually designed fire protection systems;
 The maintenance of fire cause and loss records; and
 Suppression of arson and the investigation of the cause, origin, and circumstances of fire.19
The State Fire Marshal is composed of the Bureau of Fire Prevention and the Bureau of Fire
Standards and Training.20
15
Section 20.121(2), F.S.
16
See supra note 11.
17
Section 20.121(2)(e), F.S.
18
Id.
19
Section 633.104(2), F.S.
20
See supra note 11.
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Authority of the DFS to Compel Production of Records Related to Insurance Fraud and
Arson Investigations
Under s. 633.126, F.S., the State Fire Marshal and DIFS investigators may request any insurance
company or its agent, adjuster, employee, or attorney, investigating a claim under an insurance
policy or contract with respect to a fire or explosion to release any information whatsoever in the
possession of the insurance company or its agent, adjuster, employee, or attorney relative to a
loss from that fire or explosion. A person who willfully refuses to release any information
requested by a State Fire Marshal or DISF investigator commits a first degree misdemeanor.21
Regulation of Insurance Adjusters
Florida law requires all insurance adjusters to be licensed by the DFS and appointed by the
appropriate entity or person22 in order to adjust claims. General requirements for licensure
include submitting an application; paying required fees; satisfying pre-licensing examination
requirements, when applicable; complying with requirements as to knowledge, experience, or
instruction; and submitting fingerprints.23
Under s. 626.864, F.S., there are both public adjusters and all-lines adjuster license types, with
all-lines appointments further divided into independent adjusters,24 company employee
adjusters,25 and public adjuster apprentices.26 The same adjuster may not be concurrently
licensed as a public adjuster and an all-lines adjuster.27 In the case of an all-lines adjuster, the
adjuster may be appointed as an independent adjuster, company employee adjuster, or public
adjuster apprentice, but not more than one concurrently.28
A public adjuster is any person, other than a licensed attorney, who, for compensation, prepares,
completes, or files an insurance claim form for an insu