Anti-Discrimination Law Relating to Gun Ownership Takes Effect July 1
A new law limiting the ability of personal lines property and personal lines auto insurers to use gun possession or ownership information in underwriting or rating takes effect July 1. The legislature passed SB 424 during the 2014 legislative session, and the bill was signed into law as Chapter Law 2014-180.
The new law amended Section 626.9541 relating to unfair trade practices in the business of insurance. The new law specifies that personal lines insurers cannot refuse to insure or renew, or otherwise terminate, policies based upon applicants’ or policyholders’ lawful possession or use of firearms or ammunition. The new law also prevents unfair rate discrimination based upon the lawful use or ownership of firearms. The new law, however, specifically allows rates that are not unfairly discriminatory relating to insuring firearms with values exceeding standard policy limits.
The new law also prohibits personal lines insurers from disclosing information relating to gun ownership or use to third parties unless expressly allowed by the applicants or insureds or unless necessary to facilitate quoting policies, binding coverage, or adjusting claims.
The Office of Insurance Regulation recently indicated that it does not anticipate issuing rules relating to the new law because the new law speaks for itself and does not contain rulemaking authority.