eLaws of Florida

  SECTION 634.282. Unfair methods of competition and unfair or deceptive acts or practices defined.  


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  • 1The following methods, acts, or practices are defined as unfair methods of competition and unfair or deceptive acts or practices:
    21(1) 22MISREPRESENTATION AND FALSE ADVERTISING.26-27Knowingly making, issuing, circulating, or causing to be made, issued, or circulated, any estimate, illustration, circular, statement, sales presentation, omission, or comparison which:
    50(a) 51Misrepresents the benefits, advantages, conditions, or terms of any motor vehicle service agreement.
    64(b) 65Is misleading or is a misrepresentation as to the financial condition of any person.
    79(c) 80Uses any name or title of any contract misrepresenting the true nature thereof.
    93(d) 94Is a misrepresentation for the purpose of inducing, or tending to induce, the lapse, forfeiture, exchange, conversion, or surrender of any motor vehicle service agreement.
    119(e) 120Uses any advertisement that would mislead or otherwise cause a reasonable person to believe mistakenly that the state or federal government is responsible for the motor vehicle service agreement sales activity of any person or stands behind any person’s credit or that any person, the state, or the federal government guarantees any returns on motor vehicle service agreements or is a source of payment of any motor vehicle service agreement obligation of or sold by any person.
    197(2) 198FALSE INFORMATION AND ADVERTISING GENERALLY.203-204Knowingly making, publishing, disseminating, circulating, or placing before the public, or causing, directly or indirectly, to be made, published, disseminated, circulated, or placed before the public:
    230(a) 231In a newspaper, magazine, or other publication;
    238(b) 239In the form of a notice, circular, pamphlet, letter, or poster;
    250(c) 251Over any radio or television station; or
    258(d) 259Over the Internet, electronically, or in any other way,

    268an advertisement, announcement, or statement containing any assertion, representation, or statement with respect to the business of motor vehicle service agreements, which assertion, representation, or statement is untrue, deceptive, or misleading.

    299(3) 300DEFAMATION.301-302Knowingly making, publishing, disseminating, or circulating, directly or indirectly, or aiding, abetting, or encouraging the making, publishing, disseminating, or circulating of, any oral or written statement, or any pamphlet, circular, article, or literature, that is false or maliciously critical of, or derogatory to, any person and that is calculated to injure such person.
    355(4) 356BOYCOTT, COERCION, AND INTIMIDATION.360-361Entering into any agreement to commit, or by any concerted action committing, any act of boycott, coercion, or intimidation resulting in, or tending to result in, unreasonable restraint of, or monopoly in, the business of motor vehicle service agreements.
    400(5) 401FALSE STATEMENTS AND ENTRIES.405-
    406(a) 407Knowingly:
    4081. 409Filing with any supervisory or other public official;
    4172. 418Making, publishing, disseminating, or circulating;
    4233. 424Delivering to any person;
    4284. 429Placing before the public; or
    4345. 435Causing, directly or indirectly, to be made, published, disseminated, circulated, delivered to any person, or placed before the public,

    454any false statement.

    457(b) 458Knowingly making any false entry of a material fact in any book, report, or statement of any person, or knowingly failing to make a true entry of any material fact pertaining to the business of such person in any book, report, or statement of such person.
    504(6) 505UNFAIR DISCRIMINATION.507-508Knowingly making or permitting any unfair discrimination between individuals of the same actuarially supportable class and essentially the same hazard, in the amount of premium, policy fees, or rates charged for any motor vehicle service agreement, in any of the terms or conditions of such agreement, or in any other manner whatsoever.
    560(7) 561UNLAWFUL REBATES.563-564Except as otherwise expressly provided by law, or in an applicable filing with the office, knowingly:
    580(a) 581Permitting, or offering to make, or making, any contract or agreement as to such contract other than as plainly expressed in the motor vehicle service agreement issued thereon;
    609(b) 610Paying, allowing, or giving, or offering to pay, allow, or give, directly or indirectly, as inducement to such motor vehicle service agreement, any unlawful rebate of premiums payable on the agreement, any special favor or advantage in the benefits thereon, or any valuable consideration or inducement not specified in the agreement;
    661(c) 662Giving, selling, or purchasing, or offering to give, sell, or purchase, as an inducement to such motor vehicle service agreement or in connection therewith, any stocks, bonds, or other securities of any insurance company, service agreement company, or other corporation, association, or partnership, or any dividends or profits accrued thereon, or anything of value not specified in the motor vehicle service agreement.
    724(8) 725UNFAIR CLAIM SETTLEMENT PRACTICES.729-
    730(a) 731Attempting to settle claims on the basis of an application or any other material document that was altered without notice to, or knowledge or consent of, the service agreement holder;
    761(b) 762Making a material misrepresentation to the service agreement holder for the purpose and with the intent of effecting settlement of such claims, loss, or damage under such contract on less favorable terms than those provided in, and contemplated by, such contract; or
    804(c) 805Committing or performing with such frequency as to indicate a general business practice any of the following practices:
    8231. 824Failure to adopt and implement internal standards for the investigation of claims;
    8362. 837Misrepresentation of pertinent facts or contract provisions relating to coverages at issue;
    8493. 850Failure to acknowledge and act promptly upon communications with respect to claims;
    8624. 863Denial of claims without conducting reasonable investigations based upon available information;
    8745. 875Failure to affirm or deny full or partial coverage of claims and, as to partial coverage, the dollar amount or extent of coverage, or failure to provide a written statement that the claim is being investigated, upon written request of the service agreement holder within 30 days after proof-of-loss statements have been completed;
    9286. 929Failure to promptly provide a reasonable explanation to the service agreement holder of the basis in the contract in relation to the facts or applicable law for denial of a claim or for the offer of a compromise settlement;
    9687. 969Failure to promptly notify the service agreement holder of any additional information necessary for the processing of a claim; or
    9898. 990Failure to clearly explain the nature of the requested information and the reasons such information is necessary.
    1007(9) 1008FAILURE TO MAINTAIN PROCEDURES FOR HANDLING COMPLAINTS.1015-1016Failing to maintain a complete record of all complaints received since the date of the last examination. For purposes of this paragraph, “complaint” means any written communication primarily expressing a grievance.
    1047(10) 1048DISCRIMINATORY REFUSAL TO ISSUE A CONTRACT.1054-1055Refusing to issue a contract solely because of an individual’s race, color, creed, marital status, sex, or national origin.
    1074(11) 1075MISREPRESENTATION IN SERVICE AGREEMENT APPLICATIONS.1080-1081Knowingly making a false or fraudulent written or oral statement or representation on, or relative to, an application or negotiation for a motor vehicle service agreement for the purpose of obtaining a fee, commission, money, or other benefit from any insurer, service agreement company, agent, broker, salesperson, or individual.
    1130(12) 1131FREE SERVICE AGREEMENTS.1134-
    1135(a) 1136Advertising, offering, or providing a free motor vehicle service agreement as an inducement to the purchase or sale of real or personal property or of services directly or indirectly connected with such real or personal property.
    1172(b) 1173For the purposes of this subsection, a “free” motor vehicle service agreement is:
    11861. 1187A motor vehicle service agreement for which no identifiable and additional charge is made to the purchaser of such real property, personal property, or services.
    12122. 1213A motor vehicle service agreement for which an identifiable or additional charge is made in an amount less than the cost of such motor vehicle service agreement as to the seller or other person, other than the service agreement company, providing the same.
    12563. 1257Using the word “free” or words that imply the provision of a motor vehicle service agreement without a cost in connection with the advertising or offering for sale of any kind of goods, merchandise, or services.
    1293(13) 1294ILLEGAL DEALINGS IN PREMIUMS; EXCESS OR REDUCED CHARGES FOR MOTOR VEHICLE SERVICE AGREEMENTS.1307-
    1308(a) 1309Knowingly collecting any sum as a premium or charge for a motor vehicle service agreement, which is not then provided, or is not in due course to be provided, subject to acceptance of the risk by a service agreement company or an insurer, by a motor vehicle service agreement issued by a service agreement company or an insurer as permitted by this part.
    1372(b) 1373Knowingly collecting as a premium or charge for a motor vehicle service agreement any sum in excess of or less than the premium or charge applicable to such motor vehicle service agreement, as specified in the motor vehicle service agreement. However, there is no violation of this subsection if excess premiums or charges are refunded to the service agreement holder within 45 days after receipt of the agreement by the service agreement company or if the licensed sales representative’s commission is reduced by the amount of any premium undercharge.
    1462(14) 1463INTERLOCKING OWNERSHIP AND MANAGEMENT.1467-
    1468(a) 1469Any motor vehicle service agreement company may retain, invest in, or acquire the whole or any part of the capital of any other motor vehicle service agreement company, or have a common management with any other motor vehicle service agreement company, unless such retention, investment, acquisition, or common management is inconsistent with any other provision of this part, or unless by reason thereof the business of such insurers with the public is conducted in a manner that substantially lessens competition generally in the insurance business.
    1554(b) 1555Any person otherwise qualified may be a director of two or more motor vehicle service agreement companies that are competitors, unless the effect thereof is substantially to lessen competition between motor vehicle service agreement companies generally or materially tend to create a monopoly.
    1598(15) 1599FALSE CLAIMS; OBTAINING OR RETAINING MONEY DISHONESTLY.1606-
    1607(a) 1608Any salesperson who causes to be presented to any motor vehicle service agreement company a false claim for payment, knowing the same to be false; or
    1634(b) 1635Any salesperson who represents any motor vehicle service agreement company or collects or does business without the authority of the motor vehicle service agreement company, secures cash advances by false statements, or fails to turn over when required, or satisfactorily account for, all collections of such motor vehicle service agreement company,

    1686in addition to the other penalties provided in this act, commits a misdemeanor of the second degree, punishable as provided in s. 1708775.082 1709or s. 1711775.0831712.

    1713(16) 1714SLIDING.1715-1716Sliding is the act or practice of:
    1723(a) 1724Representing to the applicant that a specific ancillary coverage or product is required by law in conjunction with the purchase of a motor vehicle service agreement when such coverage or product is not required;
    1758(b) 1759Representing to the applicant that a specific ancillary coverage or product is included in the motor vehicle service agreement contract applied for without an additional charge when such charge is required; or
    1791(c) 1792Charging an applicant for a specific ancillary coverage or product, in addition to the cost of the motor vehicle service agreement coverage applied for, without the informed consent of the applicant.
    1823(17) 1824FAILURE TO PROVIDE TERMS AND CONDITIONS PRIOR TO SALE.1833-1834Failing to provide a consumer with a complete sample copy of the terms and conditions of the service agreement prior to the time of sale upon a request for the same by the consumer. A service agreement company may comply with this subsection by providing the consumer with a sample copy of the terms and conditions of the service agreement or by directing the consumer to a website that displays a complete sample of the terms and conditions of the service agreement.

    1916No provision of this section shall be deemed to prohibit a service agreement company or a licensed insurer from giving to service agreement holders, prospective service agreement holders, and others for the purpose of advertising, any article of merchandise having a value of not more than $25.

History.-s. 7, ch. 2001-281; s. 1443, ch. 2003-261; s. 19, ch. 2010-175.