Florida Senate - 2014              PROPOSED COMMITTEE SUBSTITUTE
       Bill No. CS for SB 1260
       
       
       
       
       
                               Ì722116zÎ722116                          
       
       576-04120-14                                                    
       Proposed Committee Substitute by the Committee on Appropriations
       (Appropriations Subcommittee on General Government)
    1                        A bill to be entitled                      
    2         An act relating to insurance; amending s. 624.4625,
    3         F.S.; revising requirements for corporations not for
    4         profit to qualify to form a self-insurance fund;
    5         amending s. 624.501, F.S.; revising original
    6         appointment and renewal fees related to certain
    7         insurance representatives; amending s. 626.015, F.S.;
    8         defining the term “unaffiliated insurance agent”;
    9         amending s. 626.0428, F.S.; requiring a branch place
   10         of business to have an agent in charge; authorizing an
   11         agent to be in charge of more than one branch office
   12         under certain circumstances; providing requirements
   13         relating to the designation of an agent in charge;
   14         prohibiting an insurance agency from conducting
   15         insurance business at a location without a designated
   16         agent in charge; providing that the agent in charge is
   17         accountable for misconduct and violations committed by
   18         the licensee and any person under his or her
   19         supervision; amending s. 626.112, F.S.; prohibiting
   20         limited customer representative licenses from being
   21         issued after a specified date; providing licensure
   22         exemptions that allow specified individuals or
   23         entities to conduct insurance business at specified
   24         locations under certain circumstances; revising
   25         licensure requirements and penalties with respect to
   26         registered insurance agencies; providing that the
   27         registration of an approved registered insurance
   28         agency automatically converts to an insurance agency
   29         license on a specified date; amending s. 626.172,
   30         F.S.; revising requirements relating to applications
   31         for insurance agency licenses; conforming provisions
   32         to changes made by the act; amending s. 626.311, F.S.;
   33         limiting the types of business that may be transacted
   34         by certain agents; amending s. 626.321, F.S.;
   35         providing that a limited license to offer motor
   36         vehicle rental insurance issued to a business that
   37         rents or leases motor vehicles encompasses the
   38         employees of such business; amending s. 626.382, F.S.;
   39         providing that an insurance agency license continues
   40         in force until canceled, suspended, revoked,
   41         terminated, or expired; amending s. 626.601, F.S.;
   42         revising terminology relating to investigations
   43         conducted by the Department of Financial Services and
   44         the Office of Insurance Regulation with respect to
   45         individuals and entities involved in the insurance
   46         industry; revising a confidentiality provision;
   47         amending s. 626.621, F.S.; providing an additional
   48         ground for disciplinary action against the license or
   49         appointment of certain insurance-related personnel for
   50         accepting compensation for referring the owner of a
   51         property to an inspector or inspection company;
   52         repealing s. 626.747, F.S., relating to branch
   53         agencies, agents in charge, and the payment of
   54         additional county tax under certain circumstances;
   55         amending s. 626.8411, F.S.; conforming a cross
   56         reference; amending s. 626.854, F.S.; deleting the
   57         requirement that a 48 hours’ notice be provided before
   58         scheduling an onsite inspection of insured property;
   59         conforming a cross-reference; amending s. 626.8805,
   60         F.S.; revising insurance administrator application
   61         requirements; amending s. 626.8817, F.S.; authorizing
   62         an insurer’s designee to provide certain coverage
   63         information to an insurance administrator; authorizing
   64         an insurer to subcontract the review of an insurance
   65         administrator; amending s. 626.882, F.S.; prohibiting
   66         a person from acting as an insurance administrator
   67         without a specific written agreement; amending s.
   68         626.883, F.S.; requiring an insurance administrator to
   69         furnish fiduciary account records to an insurer;
   70         requiring administrator withdrawals from a fiduciary
   71         account to be made according to a specific written
   72         agreement; providing that an insurer’s designee may
   73         authorize payment of claims; amending s. 626.884,
   74         F.S.; revising an insurer’s right of access to certain
   75         administrator records; amending s. 626.89, F.S.;
   76         revising the deadline for filing certain financial
   77         statements; deleting provisions allowing an extension
   78         for administrator to submit certain financial
   79         statements; amending s. 626.931, F.S.; deleting
   80         provisions requiring a surplus lines agent to file a
   81         quarterly affidavit with the Florida Surplus Lines
   82         Service Office; amending s. 626.932, F.S.; revising
   83         the due date of surplus lines tax; amending ss.
   84         626.935 and 626.936, F.S.; conforming provisions to
   85         changes made by the act; amending s. 626.9541, F.S.;
   86         revising provisions for unfair methods of competition
   87         and unfair or deceptive acts relating to conducting
   88         certain insurance transactions through credit card
   89         facilities; amending s. 627.062, F.S.; authorizing the
   90         Office of Insurance Regulation to use a straight
   91         average of model results or output ranges to estimate
   92         hurricane losses when determining whether the rates in
   93         a rate filing are excessive, inadequate, or unfairly
   94         discriminatory; amending s. 627.0628, F.S.; increasing
   95         the length of time during which an insurer must adhere
   96         to certain findings made by the Commission on
   97         Hurricane Loss Projection Methodology with respect to
   98         certain methods, principles, standards, models, or
   99         output ranges used in a rate filing; providing that
  100         the requirement to adhere to such findings does not
  101         limit an insurer from using straight averages of model
  102         results or output ranges under specified
  103         circumstances; amending s. 627.0651, F.S.; revising
  104         provisions for making and use of rates for motor
  105         vehicle insurance; amending s. 627.0653, F.S.;
  106         authorizing the office to approve motor vehicle
  107         premium discounts for vehicles equipped with
  108         electronic crash avoidance technology; amending s.
  109         627.072, F.S.; authorizing retrospective rating plans
  110         relating to workers’ compensation and employer’s
  111         liability insurance to allow negotiations between
  112         certain employers and insurers with respect to rating
  113         factors used to calculate premiums; requiring the
  114         office to prepare and submit a report to the
  115         Legislature by a specified date that analyzes the use
  116         of negotiated workers compensation premium provisions
  117         within retrospective rating plans; amending s.
  118         627.281, F.S.; conforming a cross-reference; amending
  119         s. 627.311, F.S.; providing that certain dividends may
  120         be retained by the joint underwriting plan for future
  121         use; amending s. 627.3518, F.S.; conforming a cross
  122         reference; repealing s. 627.3519, F.S., relating to an
  123         annual report on the aggregate report of maximum
  124         losses of the Florida Hurricane Catastrophe Fund and
  125         Citizens Property Insurance Corporation; amending s.
  126         627.409, F.S.; providing that a claim for residential
  127         property insurance may not be denied based on certain
  128         credit information; amending s. 627.4133, F.S.;
  129         extending the period for prior notice required with
  130         respect to the nonrenewal, cancellation, or
  131         termination of certain insurance policies; deleting
  132         certain provisions that require extended periods of
  133         prior notice with respect to the nonrenewal,
  134         cancellation, or termination of certain insurance
  135         policies; prohibiting the cancellation of certain
  136         policies that have been in effect for a specified
  137         amount of time, except under certain circumstances;
  138         prohibiting the cancellation of a policy or contract
  139         that has been in effect for a specified amount of time
  140         based on certain credit information; amending s.
  141         627.4137, F.S.; adding licensed company adjusters to
  142         the list of persons who may respond to a claimant’s
  143         written request for information relating to liability
  144         insurance coverage; amending s. 627.421, F.S.;
  145         authorizing a policyholder of personal lines insurance
  146         to affirmatively elect delivery of policy documents by
  147         electronic means; amending s. 627.43141, F.S.;
  148         authorizing a notice of change in policy terms to be
  149         sent in a separate mailing to an insured under certain
  150         circumstances; requiring an insurer to provide such
  151         notice to the insured’s insurance agent; creating s.
  152         627.4553, F.S.; providing requirements for the
  153         recommendation to surrender an annuity or life
  154         insurance policy; amending s. 627.7015, F.S.; revising
  155         the rulemaking authority of the department with
  156         respect to qualifications and specified types of
  157         penalties covered under the property insurance
  158         mediation program; creating s. 627.70151, F.S.;
  159         providing criteria for an insurer or policyholder to
  160         challenge the impartiality of a loss appraisal umpire
  161         for purposes of disqualifying such umpire; amending s.
  162         627.706, F.S.; revising the definition of the term
  163         “neutral evaluator”; amending s. 627.7074, F.S.;
  164         revising notification requirements for participation
  165         in the neutral evaluation program; providing grounds
  166         for the department to deny an application, or suspend
  167         or revoke certification, of a neutral evaluator;
  168         requiring the department to adopt rules relating to
  169         certification of neutral evaluators; amending s.
  170         627.711, F.S.; revising verification requirements for
  171         uniform mitigation verification forms; amending s.
  172         627.7283, F.S.; providing for the electronic transfer
  173         of unearned premiums returned when a policy is
  174         canceled; amending s. 627.736, F.S.; revising the time
  175         period for applicability of certain Medicare fee
  176         schedules or payment limitations; amending s. 627.744,
  177         F.S.; revising preinsurance inspection requirements
  178         for private passenger motor vehicles; amending s.
  179         627.745, F.S.; revising qualifications for approval as
  180         a mediator by the department; providing grounds for
  181         the department to deny an application, or suspend or
  182         revoke approval of a mediator or certification of a
  183         neutral evaluator; authorizing the department to adopt
  184         rules; amending s. 627.782, F.S.; revising the date by
  185         which title insurance agencies and certain insurers
  186         must annually submit specified information to the
  187         Office of Insurance Regulation; amending s. 628.461,
  188         F.S.; revising filing requirements relating to the
  189         acquisition of controlling stock; revising the amount
  190         of outstanding voting securities of a domestic stock
  191         insurer or a controlling company that a person is
  192         prohibited from acquiring unless certain requirements
  193         have been met; prohibiting persons acquiring a certain
  194         percentage of voting securities from acquiring certain
  195         securities; providing that a presumption of control
  196         may be rebutted by filing a disclaimer of control;
  197         deleting a definition; amending ss. 631.717 and
  198         631.734, F.S.; transferring a provision relating to
  199         the obligations of the Florida Life and Health
  200         Insurance Guaranty Association; amending s. 634.406,
  201         F.S.; revising criteria authorizing premiums of
  202         certain service warranty associations to exceed their
  203         specified net assets limitations; revising
  204         requirements relating to contractual liability
  205         policies that insure warranty associations; providing
  206         effective dates.
  207          
  208  Be It Enacted by the Legislature of the State of Florida:
  209  
  210         Section 1. Paragraph (b) of subsection (1) of section
  211  624.4625, Florida Statutes, is amended to read:
  212         624.4625 Corporation not for profit self-insurance funds.—
  213         (1) Notwithstanding any other provision of law, any two or
  214  more corporations not for profit located in and organized under
  215  the laws of this state may form a self-insurance fund for the
  216  purpose of pooling and spreading liabilities of its group
  217  members in any one or combination of property or casualty risk,
  218  provided the corporation not for profit self-insurance fund that
  219  is created:
  220         (b) Requires for qualification that each participating
  221  member receive at least 75 percent of its revenues from local,
  222  state, or federal governmental sources or a combination of such
  223  sources, or qualify as a publicly supported organization that
  224  normally receives a substantial part of its support from a
  225  governmental unit or from the general public as evidenced on the
  226  organization’s most recently filed Internal Revenue Service Form
  227  990 or 990-EZ, Schedule A.
  228         Section 2. Paragraphs (a) and (c) of subsection (6) and
  229  subsections (7) and (8) of section 624.501, Florida Statutes,
  230  are amended to read:
  231         624.501 Filing, license, appointment, and miscellaneous
  232  fees.—The department, commission, or office, as appropriate,
  233  shall collect in advance, and persons so served shall pay to it
  234  in advance, fees, licenses, and miscellaneous charges as
  235  follows:
  236         (6) Insurance representatives, property, marine, casualty,
  237  and surety insurance.
  238         (a) Agent’s original appointment and biennial renewal or
  239  continuation thereof, each insurer or unaffiliated agent making
  240  an appointment:
  241  Appointment fee...........................................$42.00
  242  State tax..................................................12.00
  243  County tax..................................................6.00
  244  Total.....................................................$60.00
  245         (c) Nonresident agent’s original appointment and biennial
  246  renewal or continuation thereof, appointment fee, each insurer
  247  or unaffiliated agent making an appointment...............$60.00
  248         (7) Life insurance agents.
  249         (a) Agent’s original appointment and biennial renewal or
  250  continuation thereof, each insurer or unaffiliated agent making
  251  an appointment:
  252  Appointment fee...........................................$42.00
  253  State tax..................................................12.00
  254  County tax..................................................6.00
  255  Total.....................................................$60.00
  256         (b) Nonresident agent’s original appointment and biennial
  257  renewal or continuation thereof, appointment fee, each insurer
  258  or unaffiliated agent making an appointment...............$60.00
  259         (8) Health insurance agents.
  260         (a) Agent’s original appointment and biennial renewal or
  261  continuation thereof, each insurer or unaffiliated agent making
  262  an appointment:
  263  Appointment fee...........................................$42.00
  264  State tax..................................................12.00
  265  County tax..................................................6.00
  266  Total.....................................................$60.00
  267         (b) Nonresident agent’s original appointment and biennial
  268  renewal or continuation thereof, appointment fee, each insurer
  269  or unaffiliated agent making an appointment...............$60.00
  270         Section 3. Present subsection (18) of section 626.015,
  271  Florida Statutes, is renumbered as subsection (19), and a new
  272  subsection (18) is added to that section, to read:
  273         626.015 Definitions.—As used in this part:
  274         (18) “Unaffiliated insurance agent” means a licensed
  275  insurance agent, except a limited lines agent, who is self
  276  appointed and who practices as an independent consultant in the
  277  business of analyzing or abstracting insurance policies,
  278  providing insurance advice or counseling, or making specific
  279  recommendations or comparisons of insurance products for a fee
  280  established in advance by written contract signed by the
  281  parties. An unaffiliated insurance agent may not be affiliated
  282  with an insurer, insurer-appointed insurance agent, or insurance
  283  agency contracted with or employing insurer-appointed insurance
  284  agents.
  285         Section 4. Effective January 1, 2015, section 626.0428,
  286  Florida Statutes, is amended to read:
  287         626.0428 Agency personnel powers, duties, and limitations.—
  288         (1) An individual employed by an agent or agency on salary
  289  who devotes full time to clerical work, with incidental taking
  290  of insurance applications or quoting or receiving premiums on
  291  incoming inquiries in the office of the agent or agency, is not
  292  deemed to be an agent or customer representative if his or her
  293  compensation does not include in whole or in part any
  294  commissions on such business and is not related to the
  295  production of applications, insurance, or premiums.
  296         (2) An employee or authorized representative located at a
  297  designated branch of an agent or agency may not bind insurance
  298  coverage unless licensed and appointed as an agent or customer
  299  representative.
  300         (3) An employee or authorized representative of an agent or
  301  agency may not initiate contact with any person for the purpose
  302  of soliciting insurance unless licensed and appointed as an
  303  agent or customer representative. As to title insurance, an
  304  employee of an agent or agency may not initiate contact with any
  305  individual proposed insured for the purpose of soliciting title
  306  insurance unless licensed as a title insurance agent or exempt
  307  from such licensure pursuant to s. 626.8417(4).
  308         (4)(a) Each place of business established by an agent or
  309  agency, firm, corporation, or association must be in the active
  310  full-time charge of a licensed and appointed agent holding the
  311  required agent licenses to transact the lines of insurance being
  312  handled at the location.
  313         (b) Notwithstanding paragraph (a), the licensed agent in
  314  charge of an insurance agency may also be the agent in charge of
  315  additional branch office locations of the agency if insurance
  316  activities requiring licensure as an insurance agent do not
  317  occur at any location when an agent is not physically present
  318  and unlicensed employees at the location do not engage in
  319  insurance activities requiring licensure as an insurance agent
  320  or customer representative.
  321         (c) An insurance agency and each branch place of business
  322  of an insurance agency shall designate an agent in charge and
  323  file the name and license number of the agent in charge and the
  324  physical address of the insurance agency location with the
  325  department and the department’s website. The designation of the
  326  agent in charge may be changed at the option of the agency. A
  327  change of the designated agent in charge is effective upon
  328  notice to the department. Notice to the department must be
  329  provided within 30 days after such change.
  330         (d) An insurance agency location may not conduct the
  331  business of insurance unless an agent in charge is designated by
  332  and providing services to the agency at all times. If the agent
  333  in charge designated with the department ends his or her
  334  affiliation with the agency for any reason and the agency fails
  335  to designate another agent in charge within 30 days as provided
  336  in paragraph (c) and such failure continues for 90 days, the
  337  agency license automatically expires on the 91st day after the
  338  date the designated agent in charge ended his or her affiliation
  339  with the agency.
  340         (e) For purposes of this subsection, an “agent in charge”
  341  is the licensed and appointed agent responsible for the
  342  supervision of all individuals within an insurance agency
  343  location, regardless of whether the agent in charge handles a
  344  specific transaction or deals with the general public in the
  345  solicitation or negotiation of insurance contracts or the
  346  collection or accounting of money.
  347         (f) An agent in charge of an insurance agency is
  348  accountable for the wrongful acts, misconduct, or violations of
  349  this code committed by the licensee or by any person under his
  350  or her supervision while acting on behalf of the agency.
  351  However, an agent in charge is not criminally liable for any act
  352  unless the agent in charge personally committed the act or knew
  353  or should have known of the act and of the facts constituting a
  354  violation of this code.
  355         Section 5. Paragraph (b) of subsection (1) and subsection
  356  (7) of section 626.112, Florida Statutes, is amended to read:
  357         626.112 License and appointment required; agents, customer
  358  representatives, adjusters, insurance agencies, service
  359  representatives, managing general agents.—
  360         (1)
  361         (b) Except as provided in subsection (6) or in applicable
  362  department rules, and in addition to other conduct described in
  363  this chapter with respect to particular types of agents, a
  364  license as an insurance agent, service representative, customer
  365  representative, or limited customer representative is required
  366  in order to engage in the solicitation of insurance. Effective
  367  October 1, 2014, limited customer representative licenses may
  368  not be issued. For purposes of this requirement, as applicable
  369  to any of the license types described in this section, the
  370  solicitation of insurance is the attempt to persuade any person
  371  to purchase an insurance product by:
  372         1. Describing the benefits or terms of insurance coverage,
  373  including premiums or rates of return;
  374         2. Distributing an invitation to contract to prospective
  375  purchasers;
  376         3. Making general or specific recommendations as to
  377  insurance products;
  378         4. Completing orders or applications for insurance
  379  products;
  380         5. Comparing insurance products, advising as to insurance
  381  matters, or interpreting policies or coverages; or
  382         6. Offering or attempting to negotiate on behalf of another
  383  person a viatical settlement contract as defined in s. 626.9911.
  384  
  385  However, an employee leasing company licensed under pursuant to
  386  chapter 468 which is seeking to enter into a contract with an
  387  employer that identifies products and services offered to
  388  employees may deliver proposals for the purchase of employee
  389  leasing services to prospective clients of the employee leasing
  390  company setting forth the terms and conditions of doing
  391  business; classify employees as permitted by s. 468.529; collect
  392  information from prospective clients and other sources as
  393  necessary to perform due diligence on the prospective client and
  394  to prepare a proposal for services; provide and receive
  395  enrollment forms, plans, and other documents; and discuss or
  396  explain in general terms the conditions, limitations, options,
  397  or exclusions of insurance benefit plans available to the client
  398  or employees of the employee leasing company were the client to
  399  contract with the employee leasing company. Any advertising
  400  materials or other documents describing specific insurance
  401  coverages must identify and be from a licensed insurer or its
  402  licensed agent or a licensed and appointed agent employed by the
  403  employee leasing company. The employee leasing company may not
  404  advise or inform the prospective business client or individual
  405  employees of specific coverage provisions, exclusions, or
  406  limitations of particular plans. As to clients for which the
  407  employee leasing company is providing services pursuant to s.
  408  468.525(4), the employee leasing company may engage in
  409  activities permitted by ss. 626.7315, 626.7845, and 626.8305,
  410  subject to the restrictions specified in those sections. If a
  411  prospective client requests more specific information concerning
  412  the insurance provided by the employee leasing company, the
  413  employee leasing company must refer the prospective business
  414  client to the insurer or its licensed agent or to a licensed and
  415  appointed agent employed by the employee leasing company.
  416         Section 6. Effective January 1, 2015, subsection (7) of
  417  section 626.112, Florida Statutes, is amended to read:
  418         626.112 License and appointment required; agents, customer
  419  representatives, adjusters, insurance agencies, service
  420  representatives, managing general agents.—
  421         (7)(a) An Effective October 1, 2006, no individual, firm,
  422  partnership, corporation, association, or any other entity may
  423  not shall act in its own name or under a trade name, directly or
  424  indirectly, as an insurance agency, unless it possesses complies
  425  with s. 626.172 with respect to possessing an insurance agency
  426  license issued pursuant to s. 626.172 for each place of business
  427  at which it engages in any activity that which may be performed
  428  only by a licensed insurance agent. However, an insurance agency
  429  that is owned and operated by a single licensed agent conducting
  430  business in his or her individual name and not employing or
  431  otherwise using the services of or appointing other licensees is
  432  exempt from the agency licensing requirements of this
  433  subsection.
  434         (b) A branch place of business which is established by a
  435  licensed agency is considered a branch agency and is not
  436  required to be licensed if it transacts business under the same
  437  name and federal tax identification number as the licensed
  438  agency, has designated a licensed agent in charge of the
  439  location as required by s. 626.0428, and has submitted the
  440  address and telephone number of the location to the department
  441  for inclusion in the licensing record of the licensed agency
  442  within 30 days after insurance transactions begin at the
  443  location Each agency engaged in business in this state before
  444  January 1, 2003, which is wholly owned by insurance agents
  445  currently licensed and appointed under this chapter, each
  446  incorporated agency whose voting shares are traded on a
  447  securities exchange, each agency designated and subject to
  448  supervision and inspection as a branch office under the rules of
  449  the National Association of Securities Dealers, and each agency
  450  whose primary function is offering insurance as a service or
  451  member benefit to members of a nonprofit corporation may file an
  452  application for registration in lieu of licensure in accordance
  453  with s. 626.172(3). Each agency engaged in business before
  454  October 1, 2006, shall file an application for licensure or
  455  registration on or before October 1, 2006.
  456         (c)1. If an agency is required to be licensed but fails to
  457  file an application for licensure in accordance with this
  458  section, the department shall impose on the agency an
  459  administrative penalty in an amount of up to $10,000.
  460         2. If an agency is eligible for registration but fails to
  461  file an application for registration or an application for
  462  licensure in accordance with this section, the department shall
  463  impose on the agency an administrative penalty in an amount of
  464  up to $5,000.
  465         (d)(b)Effective October 1, 2015, the department must
  466  automatically convert the registration of an approved a
  467  registered insurance agency to shall, as a condition precedent
  468  to continuing business, obtain an insurance agency license if
  469  the department finds that, with respect to any majority owner,
  470  partner, manager, director, officer, or other person who manages
  471  or controls the agency, any person has:
  472         1. Been found guilty of, or has pleaded guilty or nolo
  473  contendere to, a felony in this state or any other state
  474  relating to the business of insurance or to an insurance agency,
  475  without regard to whether a judgment of conviction has been
  476  entered by the court having jurisdiction of the cases.
  477         2. Employed any individual in a managerial capacity or in a
  478  capacity dealing with the public who is under an order of
  479  revocation or suspension issued by the department. An insurance
  480  agency may request, on forms prescribed by the department,
  481  verification of any person’s license status. If a request is
  482  mailed within 5 working days after an employee is hired, and the
  483  employee’s license is currently suspended or revoked, the agency
  484  shall not be required to obtain a license, if the unlicensed
  485  person’s employment is immediately terminated.
  486         3. Operated the agency or permitted the agency to be
  487  operated in violation of s. 626.747.
  488         4. With such frequency as to have made the operation of the
  489  agency hazardous to the insurance-buying public or other
  490  persons:
  491         a. Solicited or handled controlled business. This
  492  subparagraph shall not prohibit the licensing of any lending or
  493  financing institution or creditor, with respect to insurance
  494  only, under credit life or disability insurance policies of
  495  borrowers from the institutions, which policies are subject to
  496  part IX of chapter 627.
  497         b. Misappropriated, converted, or unlawfully withheld
  498  moneys belonging to insurers, insureds, beneficiaries, or others
  499  and received in the conduct of business under the license.
  500         c. Unlawfully rebated, attempted to unlawfully rebate, or
  501  unlawfully divided or offered to divide commissions with
  502  another.
  503         d. Misrepresented any insurance policy or annuity contract,
  504  or used deception with regard to any policy or contract, done
  505  either in person or by any form of dissemination of information
  506  or advertising.
  507         e. Violated any provision of this code or any other law
  508  applicable to the business of insurance in the course of dealing
  509  under the license.
  510         f. Violated any lawful order or rule of the department.
  511         g. Failed or refused, upon demand, to pay over to any
  512  insurer he or she represents or has represented any money coming
  513  into his or her hands belonging to the insurer.
  514         h. Violated the provision against twisting as defined in s.
  515  626.9541(1)(l).
  516         i. In the conduct of business, engaged in unfair methods of
  517  competition or in unfair or deceptive acts or practices, as
  518  prohibited under part IX of this chapter.
  519         j. Willfully overinsured any property insurance risk.
  520         k. Engaged in fraudulent or dishonest practices in the
  521  conduct of business arising out of activities related to
  522  insurance or the insurance agency.
  523         l. Demonstrated lack of fitness or trustworthiness to
  524  engage in the business of insurance arising out of activities
  525  related to insurance or the insurance agency.
  526         m. Authorized or knowingly allowed individuals to transact
  527  insurance who were not then licensed as required by this code.
  528         5. Knowingly employed any person who within the preceding 3
  529  years has had his or her relationship with an agency terminated
  530  in accordance with paragraph (d).
  531         6. Willfully circumvented the requirements or prohibitions
  532  of this code.
  533         Section 7. Subsections (2), (3), and (4) of section
  534  626.172, Florida Statutes, are amended to read:
  535         626.172 Application for insurance agency license.—
  536         (2) An application for an insurance agency license must
  537  shall be signed by an individual required to be listed in the
  538  application under paragraph (a) the owner or owners of the
  539  agency. If the agency is incorporated, the application shall be
  540  signed by the president and secretary of the corporation. An
  541  insurance agency may allow a third party to complete, submit,
  542  and sign an application on the insurance agency’s behalf, but
  543  the insurance agency is responsible for ensuring that the
  544  information on the application is true and correct and is
  545  accountable for any misstatements or misrepresentations. The
  546  application for an insurance agency license must shall include:
  547         (a) The name of each majority owner, partner, officer, and
  548  director, president, senior vice president, secretary,
  549  treasurer, and limited liability company member, who directs or
  550  participates in the management or control of the insurance
  551  agency, whether through ownership of voting securities, by
  552  contract, by ownership of an agency bank account, or otherwise.
  553         (b) The residence address of each person required to be
  554  listed in the application under paragraph (a).
  555         (c) The name, principal business street address, and e-mail
  556  address of the insurance agency and the name, address, and e
  557  mail address of the agency’s registered agent or person or
  558  company authorized to accept service on behalf of the agency its
  559  principal business address.
  560         (d) The name, physical address, e-mail address, and
  561  telephone number location of each branch agency and the date
  562  that the branch location begins transacting insurance office and
  563  the name under which each agency office conducts or will conduct
  564  business.
  565         (e) The name of each agent to be in full-time charge of an
  566  agency office and specification of which office, including
  567  branch locations.
  568         (f) The fingerprints of each of the following:
  569         1. A sole proprietor;
  570         2. Each individual required to be listed in the application
  571  under paragraph (a) partner; and
  572         3. Each owner of an unincorporated agency;
  573         3.4. Each individual owner who directs or participates in
  574  the management or control of an incorporated agency whose shares
  575  are not traded on a securities exchange;
  576         5. The president, senior vice presidents, treasurer,
  577  secretary, and directors of the agency; and
  578         6. Any other person who directs or participates in the
  579  management or control of the agency, whether through the
  580  ownership of voting securities, by contract, or otherwise.
  581  
  582  Fingerprints must be taken by a law enforcement agency or other
  583  entity approved by the department and must be accompanied by the
  584  fingerprint processing fee specified in s. 624.501. Fingerprints
  585  must shall be processed in accordance with s. 624.34. However,
  586  fingerprints need not be filed for an any individual who is
  587  currently licensed and appointed under this chapter. This
  588  paragraph does not apply to corporations whose voting shares are
  589  traded on a securities exchange.
  590         (g) Such additional information as the department requires
  591  by rule to ascertain the trustworthiness and competence of
  592  persons required to be listed on the application and to
  593  ascertain that such persons meet the requirements of this code.
  594  However, the department may not require that credit or character
  595  reports be submitted for persons required to be listed on the
  596  application.
  597         (3)(h)Beginning October 1, 2005, The department must shall
  598  accept the uniform application for nonresident agency licensure.
  599  The department may adopt by rule revised versions of the uniform
  600  application.
  601         (3)The department shall issue a registration as an
  602  insurance agency to any agency that files a written application
  603  with the department and qualifies for registration. The
  604  application for registration shall require the agency to provide
  605  the same information required for an agency licensed under
  606  subsection (2), the agent identification number for each owner
  607  who is a licensed agent, proof that the agency qualifies for
  608  registration as provided in s. 626.112(7), and any other
  609  additional information that the department determines is
  610  necessary in order to demonstrate that the agency qualifies for
  611  registration. The application must be signed by the owner or
  612  owners of the agency. If the agency is incorporated, the
  613  application must be signed by the president and the secretary of
  614  the corporation. An agent who owns the agency need not file
  615  fingerprints with the department if the agent obtained a license
  616  under this chapter and the license is currently valid.
  617         (a) If an application for registration is denied, the
  618  agency must file an application for licensure no later than 30
  619  days after the date of the denial of registration.
  620         (b) A registered insurance agency must file an application
  621  for licensure no later than 30 days after the date that any
  622  person who is not a licensed and appointed agent in this state
  623  acquires any ownership interest in the agency. If an agency
  624  fails to file an application for licensure in compliance with
  625  this paragraph, the department shall impose an administrative
  626  penalty in an amount of up to $5,000 on the agency.
  627         (c) Sections 626.6115 and 626.6215 do not apply to agencies
  628  registered under this subsection.
  629         (4) The department must shall issue a license or
  630  registration to each agency upon approval of the application,
  631  and each agency location must shall display the license or
  632  registration prominently in a manner that makes it clearly
  633  visible to any customer or potential customer who enters the
  634  agency location.
  635         Section 8. Present subsection (6) of section 626.311,
  636  Florida Statutes, is redesignated as subsection (7), and a new
  637  subsection (6) is added to that section, to read:
  638         626.311 Scope of license.—
  639         (6) An agent who appoints his or her license as an
  640  unaffiliated insurance agent may not hold an appointment from an
  641  insurer for any license he or she holds; transact, solicit, or
  642  service an insurance contract on behalf of an insurer; interfere
  643  with commissions received or to be received by an insurer
  644  appointed insurance agent or an insurance agency contracted with
  645  or employing insurer-appointed insurance agents; or receive
  646  compensation or any other thing of value from an insurer, an
  647  insurer-appointed insurance agent, or an insurance agency
  648  contracted with or employing insurer-appointed insurance agents
  649  for any transaction or referral occurring after the date of
  650  appointment as an unaffiliated insurance agent. An unaffiliated
  651  insurance agent may continue to receive commissions on sales
  652  that occurred before the date of appointment as an unaffiliated
  653  insurance agent if the receipt of such commissions is disclosed
  654  when making recommendations or evaluating products for a client
  655  that involve products of the entity from which the commissions
  656  are received.
  657         Section 9. Paragraph (d) of subsection (1) of section
  658  626.321, Florida Statutes, is amended to read:
  659         626.321 Limited licenses.—
  660         (1) The department shall issue to a qualified applicant a
  661  license as agent authorized to transact a limited class of
  662  business in any of the following categories of limited lines
  663  insurance:
  664         (d) Motor vehicle rental insurance.—
  665         1. License covering only insurance of the risks set forth
  666  in this paragraph when offered, sold, or solicited with and
  667  incidental to the rental or lease of a motor vehicle and which
  668  applies only to the motor vehicle that is the subject of the
  669  lease or rental agreement and the occupants of the motor
  670  vehicle:
  671         a. Excess motor vehicle liability insurance providing
  672  coverage in excess of the standard liability limits provided by
  673  the lessor in the lessor’s lease to a person renting or leasing
  674  a motor vehicle from the licensee’s employer for liability
  675  arising in connection with the negligent operation of the leased
  676  or rented motor vehicle.
  677         b. Insurance covering the liability of the lessee to the
  678  lessor for damage to the leased or rented motor vehicle.
  679         c. Insurance covering the loss of or damage to baggage,
  680  personal effects, or travel documents of a person renting or
  681  leasing a motor vehicle.
  682         d. Insurance covering accidental personal injury or death
  683  of the lessee and any passenger who is riding or driving with
  684  the covered lessee in the leased or rented motor vehicle.
  685         2. Insurance under a motor vehicle rental insurance license
  686  may be issued only if the lease or rental agreement is for up to
  687  no more than 60 days, the lessee is not provided coverage for
  688  more than 60 consecutive days per lease period, and the lessee
  689  is given written notice that his or her personal insurance
  690  policy providing coverage on an owned motor vehicle may provide
  691  coverage of such risks and that the purchase of the insurance is
  692  not required in connection with the lease or rental of a motor
  693  vehicle. If the lease is extended beyond 60 days, the coverage
  694  may be extended one time only once for up to a period not to
  695  exceed an additional 60 days. Insurance may be provided to the
  696  lessee as an additional insured on a policy issued to the
  697  licensee’s employer.
  698         3. The license may be issued only to the full-time salaried
  699  employee of a licensed general lines agent or to a business
  700  entity that offers motor vehicles for rent or lease if insurance
  701  sales activities authorized by the license are in connection
  702  with and incidental to the rental or lease of a motor vehicle.
  703         a. A license issued to a business entity that offers motor
  704  vehicles for rent or lease encompasses each office, branch
  705  office, employee, authorized representative located at a
  706  designated branch, or place of business making use of the
  707  entity’s business name in order to offer, solicit, and sell
  708  insurance pursuant to this paragraph.
  709         b. The application for licensure must list the name,
  710  address, and phone number for each office, branch office, or
  711  place of business which that is to be covered by the license.
  712  The licensee shall notify the department of the name, address,
  713  and phone number of any new location that is to be covered by
  714  the license before the new office, branch office, or place of
  715  business engages in the sale of insurance pursuant to this
  716  paragraph. The licensee must notify the department within 30
  717  days after closing or terminating an office, branch office, or
  718  place of business. Upon receipt of the notice, the department
  719  shall delete the office, branch office, or place of business
  720  from the license.
  721         c. A licensed and appointed entity is directly responsible
  722  and accountable for all acts of the licensee’s employees.
  723         Section 10. Effective January, 1, 2015, section 626.382,
  724  Florida Statutes, is amended to read:
  725         626.382 Continuation, expiration of license; insurance
  726  agencies.—The license of an any insurance agency shall be issued
  727  for a period of 3 years and shall continue in force until
  728  canceled, suspended, or revoked, or until it is otherwise
  729  terminated or becomes expired by operation of law. A license may
  730  be renewed by submitting a renewal request to the department on
  731  a form adopted by department rule.
  732         Section 11. Section 626.601, Florida Statutes, is amended
  733  to read:
  734         626.601 Improper conduct; investigation inquiry;
  735  fingerprinting.—
  736         (1) The department or office may, upon its own motion or
  737  upon a written complaint signed by an any interested person and
  738  filed with the department or office, inquire into the any
  739  alleged improper conduct of any licensed, approved, or certified
  740  licensee, insurance agency, agent, adjuster, service
  741  representative, managing general agent, customer representative,
  742  title insurance agent, title insurance agency, mediator, neutral
  743  evaluator, navigator, continuing education course provider,
  744  instructor, school official, or monitor group under this code.
  745  The department or office may thereafter initiate an
  746  investigation of any such individual or entity licensee if it
  747  has reasonable cause to believe that the individual or entity
  748  licensee has violated any provision of the insurance code.
  749  During the course of its investigation, the department or office
  750  shall contact the individual or entity licensee being
  751  investigated unless it determines that contacting such
  752  individual or entity person could jeopardize the successful
  753  completion of the investigation or cause injury to the public.
  754         (2) In the investigation by the department or office of the
  755  alleged misconduct, the individual or entity licensee shall, if
  756  whenever so required by the department or office, open the
  757  individual’s or entity’s cause his or her books and records to
  758  be open for inspection for the purpose of such investigation
  759  inquiries.
  760         (3) The Complaints against an individual or entity any
  761  licensee may be informally alleged and are not required to
  762  include need not be in any such language as is necessary to
  763  charge a crime on an indictment or information.
  764         (4) The expense for any hearings or investigations
  765  conducted pursuant to this section under this law, as well as
  766  the fees and mileage of witnesses, may be paid out of the
  767  appropriate fund.
  768         (5) If the department or office, after investigation, has
  769  reason to believe that an individual a licensee may have been
  770  found guilty of or pleaded guilty or nolo contendere to a felony
  771  or a crime related to the business of insurance in this or any
  772  other state or jurisdiction, the department or office may
  773  require the individual licensee to file with the department or
  774  office a complete set of his or her fingerprints, which shall be
  775  accompanied by the fingerprint processing fee set forth in s.
  776  624.501. The fingerprints shall be taken by an authorized law
  777  enforcement agency or other department-approved entity.
  778         (6) The complaint and any information obtained pursuant to
  779  the investigation by the department or office are confidential
  780  and are exempt from the provisions of s. 119.07, unless the
  781  department or office files a formal administrative complaint,
  782  emergency order, or consent order against the individual or
  783  entity licensee. Nothing in This subsection does not shall be
  784  construed to prevent the department or office from disclosing
  785  the complaint or such information as it deems necessary to
  786  conduct the investigation, to update the complainant as to the
  787  status and outcome of the complaint, or to share such
  788  information with any law enforcement agency or other regulatory
  789  body.
  790         Section 12. Subsection (15) is added to section 626.621,
  791  Florida Statutes, to read:
  792         626.621 Grounds for discretionary refusal, suspension, or
  793  revocation of agent’s, adjuster’s, customer representative’s,
  794  service representative’s, or managing general agent’s license or
  795  appointment.—The department may, in its discretion, deny an
  796  application for, suspend, revoke, or refuse to renew or continue
  797  the license or appointment of any applicant, agent, adjuster,
  798  customer representative, service representative, or managing
  799  general agent, and it may suspend or revoke the eligibility to
  800  hold a license or appointment of any such person, if it finds
  801  that as to the applicant, licensee, or appointee any one or more
  802  of the following applicable grounds exist under circumstances
  803  for which such denial, suspension, revocation, or refusal is not
  804  mandatory under s. 626.611:
  805         (15) Directly or indirectly accepting any compensation,
  806  inducement, or reward from an inspector or inspection company
  807  for referring the owner of property requiring inspection to the
  808  inspector or inspection company. This prohibition applies to any
  809  inspection of property intended for submission to a carrier in
  810  order to obtain insurance coverage or to determine the
  811  appropriate amount of the insurance premium.
  812         Section 13. Effective January 1, 2015, section 626.747,
  813  Florida Statutes, is repealed.
  814         Section 14. Effective January 1, 2015, subsection (1) of
  815  section 626.8411, Florida Statutes, is amended to read:
  816         626.8411 Application of Florida Insurance Code provisions
  817  to title insurance agents or agencies.—
  818         (1) The following provisions of part II applicable to
  819  general lines agents or agencies also apply to title insurance
  820  agents or agencies:
  821         (a) Section 626.734, relating to liability of certain
  822  agents.
  823         (b) Section 626.0428(4)(a) and (b) 626.747, relating to
  824  branch agencies.
  825         (c) Section 626.749, relating to place of business in
  826  residence.
  827         (d) Section 626.753, relating to sharing of commissions.
  828         (e) Section 626.754, relating to rights of agent following
  829  termination of appointment.
  830         Section 15. Subsections (14) and (18) of section 626.854,
  831  Florida Statutes, are amended to read:
  832         626.854 “Public adjuster” defined; prohibitions.—The
  833  Legislature finds that it is necessary for the protection of the
  834  public to regulate public insurance adjusters and to prevent the
  835  unauthorized practice of law.
  836         (14) A company employee adjuster, independent adjuster,
  837  attorney, investigator, or other persons acting on behalf of an
  838  insurer that needs access to an insured or claimant or to the
  839  insured property that is the subject of a claim must provide at
  840  least 48 hours’ notice to the insured or claimant, public
  841  adjuster, or legal representative before scheduling a meeting
  842  with the claimant or an onsite inspection of the insured
  843  property. The insured or claimant may deny access to the
  844  property if the notice has not been provided. The insured or
  845  claimant may waive the 48-hour notice.
  846         (17)(18)The provisions of Subsections (5)-(16) (5)-(17)
  847  apply only to residential property insurance policies and
  848  condominium unit owner policies as defined in s. 718.111(11).
  849         Section 16. Paragraph (c) of subsection (2) and subsection
  850  (3) of section 626.8805, Florida Statutes, are amended to read:
  851         626.8805 Certificate of authority to act as administrator.—
  852         (2) The administrator shall file with the office an
  853  application for a certificate of authority upon a form to be
  854  adopted by the commission and furnished by the office, which
  855  application shall include or have attached the following
  856  information and documents:
  857         (c) The names, addresses, official positions, and
  858  professional qualifications of the individuals employed or
  859  retained by the administrator who are responsible for the
  860  conduct of the affairs of the administrator, including all
  861  members of the board of directors, board of trustees, executive
  862  committee, or other governing board or committee, and the
  863  principal officers in the case of a corporation or, the partners
  864  or members in the case of a partnership or association, and any
  865  other person who exercises control or influence over the affairs
  866  of the administrator.
  867         (3) The applicant shall make available for inspection by
  868  the office copies of all contracts relating to services provided
  869  by the administrator to with insurers or other persons using
  870  utilizing the services of the administrator.
  871         Section 17. Subsections (1) and (3) of section 626.8817,
  872  Florida Statutes, are amended to read:
  873         626.8817 Responsibilities of insurance company with respect
  874  to administration of coverage insured.—
  875         (1) If an insurer uses the services of an administrator,
  876  the insurer is responsible for determining the benefits, premium
  877  rates, underwriting criteria, and claims payment procedures
  878  applicable to the coverage and for securing reinsurance, if any.
  879  The rules pertaining to these matters shall be provided, in
  880  writing, by the insurer or its designee to the administrator.
  881  The responsibilities of the administrator as to any of these
  882  matters shall be set forth in a the written agreement binding
  883  upon between the administrator and the insurer.
  884         (3) If In cases in which an administrator administers
  885  benefits for more than 100 certificateholders on behalf of an
  886  insurer, the insurer shall, at least semiannually, conduct a
  887  review of the operations of the administrator. At least one such
  888  review must be an onsite audit of the operations of the
  889  administrator. The insurer may contract with a qualified third
  890  party to conduct such review.
  891         Section 18. Subsections (1) and (4) of section 626.882,
  892  Florida Statutes, are amended to read:
  893         626.882 Agreement between administrator and insurer;
  894  required provisions; maintenance of records.—
  895         (1) A No person may not act as an administrator without a
  896  written agreement, as required under s. 626.8817, which
  897  specifies the rights, duties, and obligations of the between
  898  such person as administrator and an insurer.
  899         (4) If a policy is issued to a trustee or trustees, a copy
  900  of the trust agreement and any amendments to that agreement
  901  shall be furnished to the insurer or its designee by the
  902  administrator and shall be retained as part of the official
  903  records of both the administrator and the insurer for the
  904  duration of the policy and for 5 years thereafter.
  905         Section 19. Subsections (3), (4), and (5) of section
  906  626.883, Florida Statutes, are amended to read:
  907         626.883 Administrator as intermediary; collections held in
  908  fiduciary capacity; establishment of account; disbursement;
  909  payments on behalf of insurer.—
  910         (3) If charges or premiums deposited in a fiduciary account
  911  have been collected on behalf of or for more than one insurer,
  912  the administrator shall keep records clearly recording the
  913  deposits in and withdrawals from such account on behalf of or
  914  for each insurer. The administrator shall, upon request of an
  915  insurer or its designee, furnish such insurer or designee with
  916  copies of records pertaining to deposits and withdrawals on
  917  behalf of or for such insurer.
  918         (4) The administrator may not pay any claim by withdrawals
  919  from a fiduciary account. Withdrawals from such account shall be
  920  made as provided in the written agreement required under ss.
  921  626.8817 and 626.882 between the administrator and the insurer
  922  for any of the following:
  923         (a) Remittance to an insurer entitled to such remittance.
  924         (b) Deposit in an account maintained in the name of such
  925  insurer.
  926         (c) Transfer to and deposit in a claims-paying account,
  927  with claims to be paid as provided by such insurer.
  928         (d) Payment to a group policyholder for remittance to the
  929  insurer entitled to such remittance.
  930         (e) Payment to the administrator of the commission, fees,
  931  or charges of the administrator.
  932         (f) Remittance of return premium to the person or persons
  933  entitled to such return premium.
  934         (5) All claims paid by the administrator from funds
  935  collected on behalf of the insurer shall be paid only on drafts
  936  of, and as authorized by, such insurer or its designee.
  937         Section 20. Subsection (3) of section 626.884, Florida
  938  Statutes, is amended to read:
  939         626.884 Maintenance of records by administrator; access;
  940  confidentiality.—
  941         (3) The insurer shall retain the right of continuing access
  942  to books and records maintained by the administrator sufficient
  943  to permit the insurer to fulfill all of its contractual
  944  obligations to insured persons, subject to any restrictions in
  945  the written agreement pertaining to between the insurer and the
  946  administrator on the proprietary rights of the parties in such
  947  books and records.
  948         Section 21. Subsections (1) and (2) of section 626.89,
  949  Florida Statutes, are amended to read:
  950         626.89 Annual financial statement and filing fee; notice of
  951  change of ownership.—
  952         (1) Each authorized administrator shall annually file with
  953  the office a full and true statement of its financial condition,
  954  transactions, and affairs within 3 months after the end of the
  955  administrator’s fiscal year. The statement shall be filed
  956  annually on or before March 1 or within such extension of time
  957  therefor as the office for good cause may have granted. The
  958  statement must and shall be for the preceding fiscal calendar
  959  year and must. The statement shall be in such form and contain
  960  such matters as the commission prescribes and must shall be
  961  verified by at least two officers of the such administrator. An
  962  administrator whose sole stockholder is an association
  963  representing health care providers which is not an affiliate of
  964  an insurer, an administrator of a pooled governmental self
  965  insurance program, or an administrator that is a university may
  966  submit the preceding fiscal year’s statement within 2 months
  967  after its fiscal year end.
  968         (2) Each authorized administrator shall also file an
  969  audited financial statement performed by an independent
  970  certified public accountant. The audited financial statement
  971  shall be filed with the office within 5 months after the end of
  972  the administrator’s fiscal year and be on or before June 1 for
  973  the preceding fiscal calendar year ending December 31. An
  974  administrator whose sole stockholder is an association
  975  representing health care providers which is not an affiliate of
  976  an insurer, an administrator of a pooled governmental self
  977  insurance program, or an administrator that is a university may
  978  submit the preceding fiscal year’s audited financial statement
  979  within 5 months after the end of its fiscal year. An audited
  980  financial statement prepared on a consolidated basis must
  981  include a columnar consolidating or combining worksheet that
  982  must be filed with the statement and must comply with the
  983  following:
  984         (a) Amounts shown on the consolidated audited financial
  985  statement must be shown on the worksheet;
  986         (b) Amounts for each entity must be stated separately; and
  987         (c) Explanations of consolidating and eliminating entries
  988  must be included.
  989         Section 22. Section 626.931, Florida Statutes, is amended
  990  to read:
  991         626.931 Agent affidavit and Insurer reporting
  992  requirements.—
  993         (1) Each surplus lines agent shall on or before the 45th
  994  day following each calendar quarter file with the Florida
  995  Surplus Lines Service Office an affidavit, on forms as
  996  prescribed and furnished by the Florida Surplus Lines Service
  997  Office, stating that all surplus lines insurance transacted by
  998  him or her during such calendar quarter has been submitted to
  999  the Florida Surplus Lines Service Office as required.
 1000         (2) The affidavit of the surplus lines agent shall include
 1001  efforts made to place coverages with authorized insurers and the
 1002  results thereof.
 1003         (1)(3) Each foreign insurer accepting premiums shall, on or
 1004  before the end of the month following each calendar quarter,
 1005  file with the Florida Surplus Lines Service Office a verified
 1006  report of all surplus lines insurance transacted by such insurer
 1007  for insurance risks located in this state during the such
 1008  calendar quarter.
 1009         (2)(4) Each alien insurer accepting premiums shall, on or
 1010  before June 30 of each year, file with the Florida Surplus Lines
 1011  Service Office a verified report of all surplus lines insurance
 1012  transacted by such insurer for insurance risks located in this
 1013  state during the preceding calendar year.
 1014         (3)(5) The department may waive the filing requirements
 1015  described in subsections (1) (3) and (2) (4).
 1016         (4)(6) Each insurer’s report and supporting information
 1017  shall be in a computer-readable format as determined by the
 1018  Florida Surplus Lines Service Office or shall be submitted on
 1019  forms prescribed by the Florida Surplus Lines Service Office and
 1020  shall show for each applicable agent:
 1021         (a) A listing of all policies, certificates, cover notes,
 1022  or other forms of confirmation of insurance coverage or any
 1023  substitutions thereof or endorsements thereto and the
 1024  identifying number; and
 1025         (b) Any additional information required by the department
 1026  or Florida Surplus Lines Service Office.
 1027         Section 23. Paragraph (a) of subsection (2) of section
 1028  626.932, Florida Statutes, is amended to read:
 1029         626.932 Surplus lines tax.—
 1030         (2)(a) The surplus lines agent shall make payable to the
 1031  department the tax related to each calendar quarter’s business
 1032  as reported to the Florida Surplus Lines Service Office, and
 1033  remit the tax to the Florida Surplus Lines Service Office on or
 1034  before the 45th day after each calendar quarter at the same time
 1035  as provided for the filing of the quarterly affidavit, under s.
 1036  626.931. The Florida Surplus Lines Service Office shall forward
 1037  to the department the taxes and any interest collected pursuant
 1038  to paragraph (b), within 10 days after of receipt.
 1039         Section 24. Subsection (1) of section 626.935, Florida
 1040  Statutes, is amended to read:
 1041         626.935 Suspension, revocation, or refusal of surplus lines
 1042  agent’s license.—
 1043         (1) The department shall deny an application for, suspend,
 1044  revoke, or refuse to renew the appointment of a surplus lines
 1045  agent and all other licenses and appointments held by the
 1046  licensee under this code, on any of the following grounds:
 1047         (a) Removal of the licensee’s office from the licensee’s
 1048  state of residence.
 1049         (b) Removal of the accounts and records of his or her
 1050  surplus lines business from this state or the licensee’s state
 1051  of residence during the period when such accounts and records
 1052  are required to be maintained under s. 626.930.
 1053         (c) Closure of the licensee’s office for more than 30
 1054  consecutive days.
 1055         (d) Failure to make and file his or her affidavit or
 1056  reports when due as required by s. 626.931.
 1057         (d)(e) Failure to pay the tax or service fee on surplus
 1058  lines premiums, as provided in the Surplus Lines Law.
 1059         (e)(f) Suspension, revocation, or refusal to renew or
 1060  continue the license or appointment as a general lines agent,
 1061  service representative, or managing general agent.
 1062         (f)(g) Lack of qualifications as for an original surplus
 1063  lines agent’s license.
 1064         (g)(h) Violation of this Surplus Lines Law.
 1065         (h)(i)For Any other applicable cause for which the license
 1066  of a general lines agent could be suspended, revoked, or refused
 1067  under s. 626.611 or s. 626.621.
 1068         Section 25. Subsection (1) of section 626.936, Florida
 1069  Statutes, is amended to read:
 1070         626.936 Failure to file reports or pay tax or service fee;
 1071  administrative penalty.—
 1072         (1) A Any licensed surplus lines agent who neglects to file
 1073  a report or an affidavit in the form and within the time
 1074  required under or provided for in the Surplus Lines Law may be
 1075  fined up to $50 per day for each day the neglect continues,
 1076  beginning the day after the report or affidavit was due until
 1077  the date the report or affidavit is received. All sums collected
 1078  under this section shall be deposited into the Insurance
 1079  Regulatory Trust Fund.
 1080         Section 26. Paragraph (q) of subsection (1) of section
 1081  626.9541, Florida Statutes, is amended to read:
 1082         626.9541 Unfair methods of competition and unfair or
 1083  deceptive acts or practices defined.—
 1084         (1) UNFAIR METHODS OF COMPETITION AND UNFAIR OR DECEPTIVE
 1085  ACTS.—The following are defined as unfair methods of competition
 1086  and unfair or deceptive acts or practices:
 1087         (q) Certain insurance transactions through credit card
 1088  facilities prohibited.—
 1089         1. Except as provided in subparagraph 3., no person shall
 1090  knowingly solicit or negotiate any insurance; seek or accept
 1091  applications for insurance; issue or deliver any policy;
 1092  receive, collect, or transmit premiums, to or for an any
 1093  insurer; or otherwise transact insurance in this state, or
 1094  relative to a subject of insurance resident, located, or to be
 1095  performed in this state, through the arrangement or facilities
 1096  of a credit card facility or organization, for the purpose of
 1097  insuring credit card holders or prospective credit card holders.
 1098  The term “credit card holder” as used in this paragraph means a
 1099  any person who may pay the charge for purchases or other
 1100  transactions through the credit card facility or organization,
 1101  whose credit with such facility or organization is evidenced by
 1102  a credit card identifying such person as being one whose charges
 1103  the credit card facility or organization will pay, and who is
 1104  identified as such upon the credit card either by name, account
 1105  number, symbol, insignia, or any other method or device of
 1106  identification. This subparagraph does not apply as to health
 1107  insurance or to credit life, credit disability, or credit
 1108  property insurance.
 1109         2. If Whenever any person does or performs in this state
 1110  any of the acts in violation of subparagraph 1. for or on behalf
 1111  of an any insurer or credit card facility, such insurer or
 1112  credit card facility shall be deemed held to be doing business
 1113  in this state and, if an insurer, shall be subject to the same
 1114  state, county, and municipal taxes as insurers that have been
 1115  legally qualified and admitted to do business in this state by
 1116  agents or otherwise are subject, the same to be assessed and
 1117  collected against such insurers; and such person so doing or
 1118  performing any of such acts is shall be personally liable for
 1119  all such taxes.
 1120         3. A licensed agent or insurer may solicit or negotiate any
 1121  insurance; seek or accept applications for insurance; issue or
 1122  deliver any policy; receive, collect, or transmit premiums, to
 1123  or for an any insurer; or otherwise transact insurance in this
 1124  state, or relative to a subject of insurance resident, located,
 1125  or to be performed in this state, through the arrangement or
 1126  facilities of a credit card facility or organization, for the
 1127  purpose of insuring credit card holders or prospective credit
 1128  card holders if:
 1129         a. The insurance or policy which is the subject of the
 1130  transaction is noncancelable by any person other than the named
 1131  insured, the policyholder, or the insurer;
 1132         b. Any refund of unearned premium is made directly to the
 1133  credit card holder by mail or electronic transfer; and
 1134         c. The credit card transaction is authorized by the
 1135  signature of the credit card holder or other person authorized
 1136  to sign on the credit card account.
 1137  
 1138  The conditions enumerated in sub-subparagraphs a.-c. do not
 1139  apply to health insurance or to credit life, credit disability,
 1140  or credit property insurance; and sub-subparagraph c. does not
 1141  apply to property and casualty insurance if so long as the
 1142  transaction is authorized by the insured.
 1143         4. No person may use or disclose information resulting from
 1144  the use of a credit card in conjunction with the purchase of
 1145  insurance if, when such information is to the advantage of the
 1146  such credit card facility or an insurance agent, or is to the
 1147  detriment of the insured or any other insurance agent; except
 1148  that this provision does not prohibit a credit card facility
 1149  from using or disclosing such information in a any judicial
 1150  proceeding or consistent with applicable law on credit
 1151  reporting.
 1152         5. No Such insurance may not shall be sold through a credit
 1153  card facility in conjunction with membership in any automobile
 1154  club. The term “automobile club” means a legal entity that
 1155  which, in consideration of dues, assessments, or periodic
 1156  payments of money, promises its members or subscribers to assist
 1157  them in matters relating to the ownership, operation, use, or
 1158  maintenance of a motor vehicle; however, the term definition of
 1159  automobile clubs does not include persons, associations, or
 1160  corporations that which are organized and operated solely for
 1161  the purpose of conducting, sponsoring, or sanctioning motor
 1162  vehicle races, exhibitions, or contests upon racetracks, or upon
 1163  race courses established and marked as such for the duration of
 1164  such particular event. The words “motor vehicle” used herein
 1165  shall be the same as defined in chapter 320.
 1166         Section 27. Paragraph (b) of subsection (2) of section
 1167  627.062, Florida Statutes, is amended to read:
 1168         627.062 Rate standards.—
 1169         (2) As to all such classes of insurance:
 1170         (b) Upon receiving a rate filing, the office shall review
 1171  the filing to determine whether the if a rate is excessive,
 1172  inadequate, or unfairly discriminatory. In making that
 1173  determination, the office shall, in accordance with generally
 1174  accepted and reasonable actuarial techniques, consider the
 1175  following factors:
 1176         1. Past and prospective loss experience within and without
 1177  this state.
 1178         2. Past and prospective expenses.
 1179         3. The degree of competition among insurers for the risk
 1180  insured.
 1181         4. Investment income reasonably expected by the insurer,
 1182  consistent with the insurer’s investment practices, from
 1183  investable premiums anticipated in the filing, plus any other
 1184  expected income from currently invested assets representing the
 1185  amount expected on unearned premium reserves and loss reserves.
 1186  The commission may adopt rules using reasonable techniques of
 1187  actuarial science and economics to specify the manner in which
 1188  insurers calculate investment income attributable to classes of
 1189  insurance written in this state and the manner in which
 1190  investment income is used to calculate insurance rates. Such
 1191  manner must contemplate allowances for an underwriting profit
 1192  factor and full consideration of investment income that which
 1193  produce a reasonable rate of return; however, investment income
 1194  from invested surplus may not be considered.
 1195         5. The reasonableness of the judgment reflected in the
 1196  filing.
 1197         6. Dividends, savings, or unabsorbed premium deposits
 1198  allowed or returned to Florida policyholders, members, or
 1199  subscribers.
 1200         7. The adequacy of loss reserves.
 1201         8. The cost of reinsurance. The office may not disapprove a
 1202  rate as excessive solely due to the insurer’s insurer having
 1203  obtained catastrophic reinsurance to cover the insurer’s
 1204  estimated 250-year probable maximum loss or any lower level of
 1205  loss.
 1206         9. Trend factors, including trends in actual losses per
 1207  insured unit for the insurer making the filing.
 1208         10. Conflagration and catastrophe hazards, if applicable.
 1209         11. Projected hurricane losses, if applicable, which must
 1210  be estimated using a model or method, or a straight average of
 1211  model results or output ranges, which are independently found to
 1212  be acceptable or reliable by the Florida Commission on Hurricane
 1213  Loss Projection Methodology, and as further provided in s.
 1214  627.0628.
 1215         12. A reasonable margin for underwriting profit and
 1216  contingencies.
 1217         13. The cost of medical services, if applicable.
 1218         14. Other relevant factors that affect the frequency or
 1219  severity of claims or expenses.
 1220         Section 28. Paragraph (d) of subsection (3) of section
 1221  627.0628, Florida Statutes, is amended to read:
 1222         627.0628 Florida Commission on Hurricane Loss Projection
 1223  Methodology; public records exemption; public meetings
 1224  exemption.—
 1225         (3) ADOPTION AND EFFECT OF STANDARDS AND GUIDELINES.—
 1226         (d) With respect to a rate filing under s. 627.062, an
 1227  insurer shall employ and may not modify or adjust actuarial
 1228  methods, principles, standards, models, or output ranges found
 1229  by the commission to be accurate or reliable in determining
 1230  hurricane loss factors for use in a rate filing under s.
 1231  627.062. An insurer shall employ and may not modify or adjust
 1232  models found by the commission to be accurate or reliable in
 1233  determining probable maximum loss levels pursuant to paragraph
 1234  (b) with respect to a rate filing under s. 627.062 made more
 1235  than 180 60 days after the commission has made such findings.
 1236  This paragraph does not prohibit an insurer from using a
 1237  straight average of model results or output ranges or using
 1238  straight averages for the purposes of a rate filing under s.
 1239  627.062.
 1240         Section 29. Subsection (8) of section 627.0651, Florida
 1241  Statutes, is amended to read:
 1242         627.0651 Making and use of rates for motor vehicle
 1243  insurance.—
 1244         (8) Rates are not unfairly discriminatory if averaged
 1245  broadly among members of a group; nor are rates unfairly
 1246  discriminatory even though they are lower than rates for
 1247  nonmembers of the group. However, such rates are unfairly
 1248  discriminatory if they are not actuarially measurable and
 1249  credible and sufficiently related to actual or expected loss and
 1250  expense experience of the group so as to ensure assure that
 1251  nonmembers of the group are not unfairly discriminated against.
 1252  Use of a single United States Postal Service zip code as a
 1253  rating territory shall be deemed unfairly discriminatory unless
 1254  filed pursuant to paragraph (1)(a) and such rating territory
 1255  incorporates sufficient actual or expected loss and loss
 1256  adjustment expense experience so as to be actuarially measurable
 1257  and credible.
 1258         Section 30. Subsection (6) is added to section 627.0653,
 1259  Florida Statutes, to read:
 1260         627.0653 Insurance discounts for specified motor vehicle
 1261  equipment.—
 1262         (6) The office may approve a premium discount applicable to
 1263  any rates, rating schedules, or rating manuals for liability,
 1264  personal injury protection, and collision coverages for motor
 1265  vehicle insurance policies filed with the office for vehicles
 1266  equipped with electronic vehicle crash avoidance technology that
 1267  is factory installed or with a retrofitted system that complies
 1268  with National Highway Traffic Safety Administration standards.
 1269         Section 31. Present subsections (2) through (4) of section
 1270  627.072, Florida Statutes, are redesignated as subsections (3)
 1271  through (5), respectively, and a new subsection (2) is added to
 1272  that section, to read:
 1273         627.072 Making and use of rates.—
 1274         (2) A retrospective rating plan may contain a provision
 1275  that allows for the negotiation of premium between the employer
 1276  and the insurer for employers having exposure in more than one
 1277  state and an estimated annual countrywide standard premium of
 1278  $750,000 or more for workers’ compensation.
 1279         Section 32. The Office of Insurance Regulation, in
 1280  consultation with the National Council on Compensation
 1281  Insurance, is directed to prepare a report that analyzes the use
 1282  of negotiated workers’ compensation premium provisions within
 1283  retrospective rating plans. The report must examine the use of
 1284  such provisions in neighboring and competitive states,
 1285  specifically as to any savings in the actual premium if a
 1286  retrospective rating deviation is applied, compared to the
 1287  standard workers’ compensation premium, and the potential
 1288  inequity for the state’s employers due to the lack of such
 1289  provisions in this state. The report must also examine the
 1290  potential savings to Florida employers which results from
 1291  implementing negotiated premiums for employers having exposure
 1292  in more than one state and an estimated annual countrywide
 1293  standard premium of at least $250,000, $500,000, and $750,000.
 1294  The report shall be delivered to the task force for approval by
 1295  September 1, 2014, and the approved report shall be delivered to
 1296  the President of the Senate and the Speaker of the House of
 1297  Representatives by November 1, 2014. This section is repealed
 1298  June 30, 2015.
 1299         Section 33. Subsection (2) of section 627.281, Florida
 1300  Statutes, is amended to read:
 1301         627.281 Appeal from rating organization; workers’
 1302  compensation and employer’s liability insurance filings.—
 1303         (2) If the such appeal is based on upon the failure of the
 1304  rating organization to make a filing on behalf of a such member
 1305  or subscriber which is based on a system of expense provisions
 1306  which differs, in accordance with the right granted in s.
 1307  627.072(3) 627.072(2), differs from the system of expense
 1308  provisions included in a filing made by the rating organization,
 1309  the office shall, if it grants the appeal, order the rating
 1310  organization to make the requested filing for use by the
 1311  appellant. In deciding such appeal, the office shall apply the
 1312  applicable standards set forth in ss. 627.062 and 627.072.
 1313         Section 34. Paragraph (h) of subsection (5) of section
 1314  627.311, Florida Statutes, is amended to read:
 1315         627.311 Joint underwriters and joint reinsurers; public
 1316  records and public meetings exemptions.—
 1317         (5)
 1318         (h) Any premium or assessments collected by the plan in
 1319  excess of the amount necessary to fund projected ultimate
 1320  incurred losses and expenses of the plan and not paid to
 1321  insureds of the plan in conjunction with loss prevention or
 1322  dividend programs shall be retained by the plan for future use.
 1323  Any state funds received by the plan in excess of the amount
 1324  necessary to fund deficits in subplan D or any tier shall be
 1325  returned to the state. Any dividend payable to a former insured
 1326  of the plan may be retained by the plan for future use upon such
 1327  terms as set forth in the declaration of dividend.
 1328         Section 35. Subsection (9) of section 627.3518, Florida
 1329  Statutes, is amended to read:
 1330         627.3518 Citizens Property Insurance Corporation
 1331  policyholder eligibility clearinghouse program.—The purpose of
 1332  this section is to provide a framework for the corporation to
 1333  implement a clearinghouse program by January 1, 2014.
 1334         (9) The 45-day notice of nonrenewal requirement set forth
 1335  in s. 627.4133(2)(b)5. 627.4133(2)(b)4.b. applies when a policy
 1336  is nonrenewed by the corporation because the risk has received
 1337  an offer of coverage pursuant to this section which renders the
 1338  risk ineligible for coverage by the corporation.
 1339         Section 36. Section 627.3519, Florida Statutes, is
 1340  repealed.
 1341         Section 37. Section 627.409, Florida Statutes, is amended
 1342  to read:
 1343         627.409 Representations in applications; warranties.—
 1344         (1) Any statement or description made by or on behalf of an
 1345  insured or annuitant in an application for an insurance policy
 1346  or annuity contract, or in negotiations for a policy or
 1347  contract, is a representation and is not a warranty. Except as
 1348  provided in subsection (3), a misrepresentation, omission,
 1349  concealment of fact, or incorrect statement may prevent recovery
 1350  under the contract or policy only if any of the following apply:
 1351         (a) The misrepresentation, omission, concealment, or
 1352  statement is fraudulent or is material either to the acceptance
 1353  of the risk or to the hazard assumed by the insurer.
 1354         (b) If the true facts had been known to the insurer
 1355  pursuant to a policy requirement or other requirement, the
 1356  insurer in good faith would not have issued the policy or
 1357  contract, would not have issued it at the same premium rate,
 1358  would not have issued a policy or contract in as large an
 1359  amount, or would not have provided coverage with respect to the
 1360  hazard resulting in the loss.
 1361         (2) A breach or violation by the insured of a any warranty,
 1362  condition, or provision of a any wet marine or transportation
 1363  insurance policy, contract of insurance, endorsement, or
 1364  application therefor does not void the policy or contract, or
 1365  constitute a defense to a loss thereon, unless such breach or
 1366  violation increased the hazard by any means within the control
 1367  of the insured.
 1368         (3) For residential property insurance, if a policy or
 1369  contract is in effect for more than 90 days, a claim filed by
 1370  the insured may not be denied based on credit information
 1371  available in public records.
 1372         Section 38. Paragraph (b) of subsection (2) of section
 1373  627.4133, Florida Statutes, is amended to read:
 1374         627.4133 Notice of cancellation, nonrenewal, or renewal
 1375  premium.—
 1376         (2) With respect to a any personal lines or commercial
 1377  residential property insurance policy, including a, but not
 1378  limited to, any homeowner’s, mobile home owner’s, farmowner’s,
 1379  condominium association, condominium unit owner’s, apartment
 1380  building, or other policy covering a residential structure or
 1381  its contents:
 1382         (b) The insurer shall give the first-named insured written
 1383  notice of nonrenewal, cancellation, or termination at least 120
 1384  100 days before the effective date of the nonrenewal,
 1385  cancellation, or termination. However, the insurer shall give at
 1386  least 100 days’ written notice, or written notice by June 1,
 1387  whichever is earlier, for any nonrenewal, cancellation, or
 1388  termination that would be effective between June 1 and November
 1389  30. The notice must include the reason or reasons for the
 1390  nonrenewal, cancellation, or termination, except that:
 1391         1. The insurer shall give the first-named insured written
 1392  notice of nonrenewal, cancellation, or termination at least 120
 1393  days prior to the effective date of the nonrenewal,
 1394  cancellation, or termination for a first-named insured whose
 1395  residential structure has been insured by that insurer or an
 1396  affiliated insurer for at least a 5-year period immediately
 1397  prior to the date of the written notice.
 1398         1.2. If cancellation is for nonpayment of premium, at least
 1399  10 days’ written notice of cancellation accompanied by the
 1400  reason therefor must be given. As used in this subparagraph, the
 1401  term “nonpayment of premium” means failure of the named insured
 1402  to discharge when due her or his obligations for paying the
 1403  premium in connection with the payment of premiums on a policy
 1404  or an any installment of such premium, whether the premium is
 1405  payable directly to the insurer or its agent or indirectly under
 1406  any premium finance plan or extension of credit, or failure to
 1407  maintain membership in an organization if such membership is a
 1408  condition precedent to insurance coverage. The term also means
 1409  the failure of a financial institution to honor an insurance
 1410  applicant’s check after delivery to a licensed agent for payment
 1411  of a premium, even if the agent has previously delivered or
 1412  transferred the premium to the insurer. If a dishonored check
 1413  represents the initial premium payment, the contract and all
 1414  contractual obligations are void ab initio unless the nonpayment
 1415  is cured within the earlier of 5 days after actual notice by
 1416  certified mail is received by the applicant or 15 days after
 1417  notice is sent to the applicant by certified mail or registered
 1418  mail., and If the contract is void, any premium received by the
 1419  insurer from a third party must be refunded to that party in
 1420  full.
 1421         2.3. If such cancellation or termination occurs during the
 1422  first 90 days the insurance is in force and the insurance is
 1423  canceled or terminated for reasons other than nonpayment of
 1424  premium, at least 20 days’ written notice of cancellation or
 1425  termination accompanied by the reason therefor must be given
 1426  unless there has been a material misstatement or
 1427  misrepresentation or failure to comply with the underwriting
 1428  requirements established by the insurer.
 1429         3. After the policy has been in effect for 90 days, the
 1430  insurer may not cancel the policy unless there has been a
 1431  material misstatement, a nonpayment of premium, a failure to
 1432  comply with underwriting requirements established by the insurer
 1433  within 90 days after the date of effectuation of coverage, or a
 1434  substantial change in the risk covered by the policy or the
 1435  cancellation is for all insureds under such policies for a class
 1436  of insureds. This subparagraph does not apply to individually
 1437  rated risks having a policy term of less than 90 days.
 1438         4. After a policy or contract has been in effect for 90
 1439  days, the insurer may not cancel or terminate the policy or
 1440  contract based on credit information available in public
 1441  records. The requirement for providing written notice by June 1
 1442  of any nonrenewal that would be effective between June 1 and
 1443  November 30 does not apply to the following situations, but the
 1444  insurer remains subject to the requirement to provide such
 1445  notice at least 100 days before the effective date of
 1446  nonrenewal:
 1447         a. A policy that is nonrenewed due to a revision in the
 1448  coverage for sinkhole losses and catastrophic ground cover
 1449  collapse pursuant to s. 627.706.
 1450         5.b. A policy that is nonrenewed by Citizens Property
 1451  Insurance Corporation, pursuant to s. 627.351(6), for a policy
 1452  that has been assumed by an authorized insurer offering
 1453  replacement coverage to the policyholder is exempt from the
 1454  notice requirements of paragraph (a) and this paragraph. In such
 1455  cases, the corporation must give the named insured written
 1456  notice of nonrenewal at least 45 days before the effective date
 1457  of the nonrenewal.
 1458  
 1459  After the policy has been in effect for 90 days, the policy may
 1460  not be canceled by the insurer unless there has been a material
 1461  misstatement, a nonpayment of premium, a failure to comply with
 1462  underwriting requirements established by the insurer within 90
 1463  days after the date of effectuation of coverage, or a
 1464  substantial change in the risk covered by the policy or if the
 1465  cancellation is for all insureds under such policies for a given
 1466  class of insureds. This paragraph does not apply to individually
 1467  rated risks having a policy term of less than 90 days.
 1468         6.5. Notwithstanding any other provision of law, an insurer
 1469  may cancel or nonrenew a property insurance policy after at
 1470  least 45 days’ notice if the office finds that the early
 1471  cancellation of some or all of the insurer’s policies is
 1472  necessary to protect the best interests of the public or
 1473  policyholders and the office approves the insurer’s plan for
 1474  early cancellation or nonrenewal of some or all of its policies.
 1475  The office may base such finding upon the financial condition of
 1476  the insurer, lack of adequate reinsurance coverage for hurricane
 1477  risk, or other relevant factors. The office may condition its
 1478  finding on the consent of the insurer to be placed under
 1479  administrative supervision pursuant to s. 624.81 or to the
 1480  appointment of a receiver under chapter 631.
 1481         7.6. A policy covering both a home and a motor vehicle may
 1482  be nonrenewed for any reason applicable to either the property
 1483  or motor vehicle insurance after providing 90 days’ notice.
 1484         Section 39. Subsection (1) of section 627.4137, Florida
 1485  Statutes, is amended to read:
 1486         627.4137 Disclosure of certain information required.—
 1487         (1) Each insurer that provides which does or may provide
 1488  liability insurance coverage to pay all or a portion of a any
 1489  claim that which might be made shall provide, within 30 days
 1490  after of the written request of the claimant, provide a
 1491  statement, under oath, of a corporate officer or the insurer’s
 1492  claims manager, or superintendent, or licensed company adjuster
 1493  setting forth the following information with regard to each
 1494  known policy of insurance, including excess or umbrella
 1495  insurance:
 1496         (a) The name of the insurer.
 1497         (b) The name of each insured.
 1498         (c) The limits of the liability coverage.
 1499         (d) A statement of any policy or coverage defense that the
 1500  which such insurer reasonably believes is available to the such
 1501  insurer at the time of filing such statement.
 1502         (e) A copy of the policy.
 1503  
 1504  In addition, The insured, or her or his insurance agent, upon
 1505  written request of the claimant or the claimant’s attorney,
 1506  shall also disclose the name and coverage of each known insurer
 1507  to the claimant and shall forward the such request for
 1508  information as required by this subsection to all affected
 1509  insurers. The insurer shall then supply the required information
 1510  required in this subsection to the claimant within 30 days after
 1511  of receipt of such request.
 1512         Section 40. Subsection (1) of section 627.421, Florida
 1513  Statutes, is amended to read:
 1514         627.421 Delivery of policy.—
 1515         (1) Subject to the insurer’s requirement as to payment of
 1516  premium, every policy shall be mailed, delivered, or
 1517  electronically transmitted to the insured or to the person
 1518  entitled thereto within not later than 60 days after the
 1519  effectuation of coverage. Notwithstanding any other provision of
 1520  law, an insurer may allow a policyholder of personal lines
 1521  insurance to affirmatively elect delivery of the policy
 1522  documents, including policies, endorsements, notices, or other
 1523  documents, by electronic means in lieu of delivery by mail.
 1524  Electronic transmission of a policy for commercial risks,
 1525  including, but not limited to, workers’ compensation and
 1526  employers’ liability, commercial automobile liability,
 1527  commercial automobile physical damage, commercial lines
 1528  residential property, commercial nonresidential property, farm
 1529  owners’ insurance, and the types of commercial lines risks set
 1530  forth in s. 627.062(3)(d), constitute shall constitute delivery
 1531  to the insured or to the person entitled to delivery, unless the
 1532  insured or the person entitled to delivery communicates to the
 1533  insurer in writing or electronically that he or she does not
 1534  agree to delivery by electronic means. Electronic transmission
 1535  must shall include a notice to the insured or to the person
 1536  entitled to delivery of a policy of his or her right to receive
 1537  the policy via United States mail rather than via electronic
 1538  transmission. A paper copy of the policy shall be provided to
 1539  the insured or to the person entitled to delivery at his or her
 1540  request.
 1541         Section 41. Subsection (2) of section 627.43141, Florida
 1542  Statutes, is amended to read:
 1543         627.43141 Notice of change in policy terms.—
 1544         (2) A renewal policy may contain a change in policy terms.
 1545  If a renewal policy contains does contain such change, the
 1546  insurer must give the named insured written notice of the
 1547  change, which may must be enclosed along with the written notice
 1548  of renewal premium required by ss. 627.4133 and 627.728 or be
 1549  sent in a separate notice that complies with the nonrenewal
 1550  mailing time requirement for that particular line of business.
 1551  The insurer must also provide a sample copy of the notice to the
 1552  insured’s insurance agent before or at the same time that notice
 1553  is given to the insured. Such notice shall be entitled “Notice
 1554  of Change in Policy Terms.”
 1555         Section 42. Section 627.4553, Florida Statutes, is created
 1556  to read:
 1557         627.4553 Recommendations to surrender.—If an insurance
 1558  agent recommends the surrender of an annuity or life insurance
 1559  policy containing a cash value and is not recommending that the
 1560  proceeds from the surrender be used to fund or purchase another
 1561  annuity or life insurance policy, before execution of the
 1562  surrender, the insurance agent, or the insurance company if no
 1563  agent is involved, shall provide, on a form adopted by rule by
 1564  the department, information concerning the annuity or policy to
 1565  be surrendered, including the amount of any surrender charge,
 1566  the loss of any minimum interest rate guarantees, the amount of
 1567  any tax consequences resulting from the surrender, the amount of
 1568  any forfeited death benefit, and the value of any other
 1569  investment performance guarantees being forfeited as a result of
 1570  the surrender. This section also applies to a person performing
 1571  insurance agent activities pursuant to an exemption from
 1572  licensure under this part.
 1573         Section 43. Paragraph (b) of subsection (4) of section
 1574  627.7015, Florida Statutes, is amended to read:
 1575         627.7015 Alternative procedure for resolution of disputed
 1576  property insurance claims.—
 1577         (4) The department shall adopt by rule a property insurance
 1578  mediation program to be administered by the department or its
 1579  designee. The department may also adopt special rules which are
 1580  applicable in cases of an emergency within the state. The rules
 1581  shall be modeled after practices and procedures set forth in
 1582  mediation rules of procedure adopted by the Supreme Court. The
 1583  rules must shall provide for:
 1584         (b) Qualifications, denial of application, suspension,
 1585  revocation of approval, and other penalties for of mediators as
 1586  provided in s. 627.745 and in the Florida Rules for of Certified
 1587  and Court-Appointed Court Appointed Mediators, and for such
 1588  other individuals as are qualified by education, training, or
 1589  experience as the department determines to be appropriate.
 1590         Section 44. Section 627.70151, Florida Statutes, is created
 1591  to read:
 1592         627.70151 Appraisal; conflicts of interest.—An insurer that
 1593  offers residential coverage, as defined in s. 627.4025, or a
 1594  policyholder that uses an appraisal clause in the property
 1595  insurance contract to establish a process for estimating or
 1596  evaluating the amount of the loss through the use of an
 1597  impartial umpire may challenge the umpire’s impartiality and
 1598  disqualify the proposed umpire only if:
 1599         (1) A familial relationship within the third degree exists
 1600  between the umpire and a party or a representative of a party;
 1601         (2) The umpire has previously represented a party or a
 1602  representative of a party in a professional capacity in the same
 1603  or a substantially related matter;
 1604         (3) The umpire has represented another person in a
 1605  professional capacity on the same or a substantially related
 1606  matter, which includes the claim, same property, or an adjacent
 1607  property and that other person’s interests are materially
 1608  adverse to the interests of any party; or
 1609         (4) The umpire has worked as an employer or employee of a
 1610  party within the preceding 5 years.
 1611         Section 45. Paragraph (c) of subsection (2) of section
 1612  627.706, Florida Statutes, is amended to read:
 1613         627.706 Sinkhole insurance; catastrophic ground cover
 1614  collapse; definitions.—
 1615         (2) As used in ss. 627.706-627.7074, and as used in
 1616  connection with any policy providing coverage for a catastrophic
 1617  ground cover collapse or for sinkhole losses, the term:
 1618         (c) “Neutral evaluator” means a professional engineer or a
 1619  professional geologist who has completed a course of study in
 1620  alternative dispute resolution designed or approved by the
 1621  department for use in the neutral evaluation process, and who is
 1622  determined by the department to be fair and impartial, and who
 1623  is not otherwise ineligible for certification as provided in s.
 1624  627.7074.
 1625         Section 46. Subsections (3), (7), and (18) of section
 1626  627.7074, Florida Statutes, are amended to read:
 1627         627.7074 Alternative procedure for resolution of disputed
 1628  sinkhole insurance claims.—
 1629         (3) Following the receipt of the report required provided
 1630  under s. 627.7073 or the denial of a claim for a sinkhole loss,
 1631  the insurer shall notify the policyholder of his or her right to
 1632  participate in the neutral evaluation program under this section
 1633  if coverage is available under the policy and the claim was
 1634  submitted within the timeframe provided in s. 627.706(5).
 1635  Neutral evaluation supersedes the alternative dispute resolution
 1636  process under s. 627.7015 but does not invalidate the appraisal
 1637  clause of the insurance policy. The insurer shall provide to the
 1638  policyholder the consumer information pamphlet prepared by the
 1639  department pursuant to subsection (1) electronically or by
 1640  United States mail.
 1641         (7) Upon receipt of a request for neutral evaluation, the
 1642  department shall provide the parties a list of certified neutral
 1643  evaluators. The department shall allow the parties to submit
 1644  requests for disqualifying to disqualify evaluators on the list
 1645  for cause.
 1646         (a) The department shall disqualify neutral evaluators for
 1647  cause based only on any of the following grounds:
 1648         1. A familial relationship exists between the neutral
 1649  evaluator and either party or a representative of either party
 1650  within the third degree.
 1651         2. The proposed neutral evaluator has, in a professional
 1652  capacity, previously represented either party or a
 1653  representative of either party, in the same or a substantially
 1654  related matter.
 1655         3. The proposed neutral evaluator has, in a professional
 1656  capacity, represented another person in the same or a
 1657  substantially related matter and that person’s interests are
 1658  materially adverse to the interests of the parties. The term
 1659  “substantially related matter” means participation by the
 1660  neutral evaluator on the same claim, property, or adjacent
 1661  property.
 1662         4. The proposed neutral evaluator has, within the preceding
 1663  5 years, worked as an employer or employee of a any party to the
 1664  case.
 1665         (b) The department shall deny an application, or suspend or
 1666  revoke the certification, of a neutral evaluator to serve in the
 1667  neutral evaluator capacity if the department finds that one or
 1668  more of the following grounds exist:
 1669         1. Lack of one or more of the qualifications for
 1670  certification specified in this section.
 1671         2. Material misstatement, misrepresentation, or fraud in
 1672  obtaining or attempting to obtain the certification.
 1673         3. Demonstrated lack of fitness or trustworthiness to act
 1674  as a neutral evaluator.
 1675         4. Fraudulent or dishonest practices in the conduct of an
 1676  evaluation or in the conduct of business in the financial
 1677  services industry.
 1678         5. Violation of any provision of this code or of a lawful
 1679  order or rule of the department or aiding, instructing, or
 1680  encouraging another party to commit such violation.
 1681         (c)(b) The parties shall appoint a neutral evaluator from
 1682  the department list and promptly inform the department. If the
 1683  parties cannot agree to a neutral evaluator within 14 business
 1684  days, the department shall appoint a neutral evaluator from the
 1685  list of certified neutral evaluators. The department shall allow
 1686  each party to disqualify two neutral evaluators without cause.
 1687  Upon selection or appointment, the department shall promptly
 1688  refer the request to the neutral evaluator.
 1689         (d)(c) Within 14 business days after the referral, the
 1690  neutral evaluator shall notify the policyholder and the insurer
 1691  of the date, time, and place of the neutral evaluation
 1692  conference. The conference may be held by telephone, if feasible
 1693  and desirable. The neutral evaluator shall make reasonable
 1694  efforts to hold the conference within 90 days after the receipt
 1695  of the request by the department. Failure of the neutral
 1696  evaluator to hold the conference within 90 days does not
 1697  invalidate either party’s right to neutral evaluation or to a
 1698  neutral evaluation conference held outside this timeframe.
 1699         (18) The department shall adopt rules of procedure for the
 1700  neutral evaluation process and for certifying, denying or
 1701  suspending the certification of, and revoking certification as,
 1702  a neutral evaluator.
 1703         Section 47. Subsection (8) of section 627.711, Florida
 1704  Statutes, is amended to read:
 1705         627.711 Notice of premium discounts for hurricane loss
 1706  mitigation; uniform mitigation verification inspection form.—
 1707         (8) At its expense, the insurer may require that a uniform
 1708  mitigation verification form provided by a policyholder, a
 1709  policyholder’s agent, or an authorized mitigation inspector or
 1710  inspection company be independently verified by an inspector, an
 1711  inspection company, or an independent third-party quality
 1712  assurance provider that which possesses a quality assurance
 1713  program before accepting the uniform mitigation verification
 1714  form as valid. The insurer may exempt from additional
 1715  independent verification any uniform mitigation verification
 1716  form provided by a policyholder, a policyholder’s agent, an
 1717  authorized mitigation inspector, or an inspection company that
 1718  possesses a quality assurance program that meets the standards
 1719  established by the insurer. A uniform mitigation verification
 1720  form provided by a policyholder, a policyholder’s agent, an
 1721  authorized mitigation inspector, or an inspection company to
 1722  Citizens Property Insurance Corporation is not subject to
 1723  additional verification, and the property is not subject to
 1724  reinspection by the corporation, absent material changes to the
 1725  structure for the term stated on the form if the form signed by
 1726  a qualified inspector was submitted to, reviewed, and verified
 1727  by a quality assurance program approved by the corporation
 1728  before submission to the corporation.
 1729         Section 48. Subsections (1), (2), and (3) of section
 1730  627.7283, Florida Statutes, are amended to read:
 1731         627.7283 Cancellation; return of premium.—
 1732         (1) If the insured cancels a policy of motor vehicle
 1733  insurance, the insurer must mail or electronically transfer the
 1734  unearned portion of any premium paid within 30 days after the
 1735  effective date of the policy cancellation or receipt of notice
 1736  or request for cancellation, whichever is later. This
 1737  requirement applies to a cancellation initiated by an insured
 1738  for any reason.
 1739         (2) If an insurer cancels a policy of motor vehicle
 1740  insurance, the insurer must mail or electronically transfer the
 1741  unearned premium portion of any premium within 15 days after the
 1742  effective date of the policy cancellation.
 1743         (3) If the unearned premium is not mailed or electronically
 1744  transferred within the applicable period, the insurer must pay
 1745  to the insured 8 percent interest on the amount due. If the
 1746  unearned premium is not mailed or electronically transferred
 1747  within 45 days after the applicable period, the insured may
 1748  bring an action against the insurer pursuant to s. 624.155.
 1749         Section 49. Paragraph (a) of subsection (5) of section
 1750  627.736, Florida Statutes, is amended to read:
 1751         627.736 Required personal injury protection benefits;
 1752  exclusions; priority; claims.—
 1753         (5) CHARGES FOR TREATMENT OF INJURED PERSONS.—
 1754         (a) A physician, hospital, clinic, or other person or
 1755  institution lawfully rendering treatment to an injured person
 1756  for a bodily injury covered by personal injury protection
 1757  insurance may charge the insurer and injured party only a
 1758  reasonable amount pursuant to this section for the services and
 1759  supplies rendered, and the insurer providing such coverage may
 1760  directly pay for such charges directly to the such person or
 1761  institution lawfully rendering such treatment if the insured
 1762  receiving such treatment or his or her guardian has
 1763  countersigned the properly completed invoice, bill, or claim
 1764  form approved by the office upon which such charges are to be
 1765  paid for as having actually been rendered, to the best knowledge
 1766  of the insured or his or her guardian. However, such a charge
 1767  may not exceed the amount the person or institution customarily
 1768  charges for like services or supplies. In determining whether a
 1769  charge for a particular service, treatment, or otherwise is
 1770  reasonable, consideration may be given to evidence of usual and
 1771  customary charges and payments accepted by the provider involved
 1772  in the dispute, reimbursement levels in the community and
 1773  various federal and state medical fee schedules applicable to
 1774  motor vehicle and other insurance coverages, and other
 1775  information relevant to the reasonableness of the reimbursement
 1776  for the service, treatment, or supply.
 1777         1. The insurer may limit reimbursement to 80 percent of the
 1778  following schedule of maximum charges:
 1779         a. For emergency transport and treatment by providers
 1780  licensed under chapter 401, 200 percent of Medicare.
 1781         b. For emergency services and care provided by a hospital
 1782  licensed under chapter 395, 75 percent of the hospital’s usual
 1783  and customary charges.
 1784         c. For emergency services and care as defined by s. 395.002
 1785  provided in a facility licensed under chapter 395 rendered by a
 1786  physician or dentist, and related hospital inpatient services
 1787  rendered by a physician or dentist, the usual and customary
 1788  charges in the community.
 1789         d. For hospital inpatient services, other than emergency
 1790  services and care, 200 percent of the Medicare Part A
 1791  prospective payment applicable to the specific hospital
 1792  providing the inpatient services.
 1793         e. For hospital outpatient services, other than emergency
 1794  services and care, 200 percent of the Medicare Part A Ambulatory
 1795  Payment Classification for the specific hospital providing the
 1796  outpatient services.
 1797         f. For all other medical services, supplies, and care, 200
 1798  percent of the allowable amount under:
 1799         (I) The participating physicians fee schedule of Medicare
 1800  Part B, except as provided in sub-sub-subparagraphs (II) and
 1801  (III).
 1802         (II) Medicare Part B, in the case of services, supplies,
 1803  and care provided by ambulatory surgical centers and clinical
 1804  laboratories.
 1805         (III) The Durable Medical Equipment Prosthetics/Orthotics
 1806  and Supplies fee schedule of Medicare Part B, in the case of
 1807  durable medical equipment.
 1808  
 1809  However, if such services, supplies, or care is not reimbursable
 1810  under Medicare Part B, as provided in this sub-subparagraph, the
 1811  insurer may limit reimbursement to 80 percent of the maximum
 1812  reimbursable allowance under workers’ compensation, as
 1813  determined under s. 440.13 and rules adopted thereunder which
 1814  are in effect at the time such services, supplies, or care is
 1815  provided. Services, supplies, or care that is not reimbursable
 1816  under Medicare or workers’ compensation is not required to be
 1817  reimbursed by the insurer.
 1818         2. For purposes of subparagraph 1., the applicable fee
 1819  schedule or payment limitation under Medicare is the fee
 1820  schedule or payment limitation in effect on March 1 of the year
 1821  in which the services, supplies, or care is rendered and for the
 1822  area in which such services, supplies, or care is rendered, and
 1823  the applicable fee schedule or payment limitation applies from
 1824  March 1 until the last day of February throughout the remainder
 1825  of the following that year, notwithstanding any subsequent
 1826  change made to the fee schedule or payment limitation, except
 1827  that it may not be less than the allowable amount under the
 1828  applicable schedule of Medicare Part B for 2007 for medical
 1829  services, supplies, and care subject to Medicare Part B.
 1830         3. Subparagraph 1. does not allow the insurer to apply a
 1831  any limitation on the number of treatments or other utilization
 1832  limits that apply under Medicare or workers’ compensation. An
 1833  insurer that applies the allowable payment limitations of
 1834  subparagraph 1. must reimburse a provider who lawfully provided
 1835  care or treatment under the scope of his or her license,
 1836  regardless of whether such provider is entitled to reimbursement
 1837  under Medicare due to restrictions or limitations on the types
 1838  or discipline of health care providers who may be reimbursed for
 1839  particular procedures or procedure codes. However, subparagraph
 1840  1. does not prohibit an insurer from using the Medicare coding
 1841  policies and payment methodologies of the federal Centers for
 1842  Medicare and Medicaid Services, including applicable modifiers,
 1843  to determine the appropriate amount of reimbursement for medical
 1844  services, supplies, or care if the coding policy or payment
 1845  methodology does not constitute a utilization limit.
 1846         4. If an insurer limits payment as authorized by
 1847  subparagraph 1., the person providing such services, supplies,
 1848  or care may not bill or attempt to collect from the insured any
 1849  amount in excess of such limits, except for amounts that are not
 1850  covered by the insured’s personal injury protection coverage due
 1851  to the coinsurance amount or maximum policy limits.
 1852         5. Effective July 1, 2012, An insurer may limit payment as
 1853  authorized by this paragraph only if the insurance policy
 1854  includes a notice at the time of issuance or renewal that the
 1855  insurer may limit payment pursuant to the schedule of charges
 1856  specified in this paragraph. A policy form approved by the
 1857  office satisfies this requirement. If a provider submits a
 1858  charge for an amount less than the amount allowed under
 1859  subparagraph 1., the insurer may pay the amount of the charge
 1860  submitted.
 1861         Section 50. Subsection (1) and paragraphs (a) and (b) of
 1862  subsection (2) of section 627.744, Florida Statutes, are amended
 1863  to read:
 1864         627.744 Required preinsurance inspection of private
 1865  passenger motor vehicles.—
 1866         (1) A private passenger motor vehicle insurance policy
 1867  providing physical damage coverage, including collision or
 1868  comprehensive coverage, may not be issued in this state unless
 1869  the insurer has inspected the motor vehicle in accordance with
 1870  this section. Physical damage coverage on a motor vehicle may
 1871  not be suspended during the term of the policy due to the
 1872  applicant’s failure to provide required documents. However,
 1873  payment of a claim may be conditioned upon the insurer’s receipt
 1874  of the required documents, and physical damage loss occurring
 1875  after the effective date of coverage is not payable until the
 1876  documents are provided to the insurer.
 1877         (2) This section does not apply:
 1878         (a) To a policy for a policyholder who has been insured for
 1879  2 years or longer, without interruption, under a private
 1880  passenger motor vehicle policy that which provides physical
 1881  damage coverage for any vehicle, if the agent of the insurer
 1882  verifies the previous coverage.
 1883         (b) To a new, unused motor vehicle purchased or leased from
 1884  a licensed motor vehicle dealer or leasing company, if the
 1885  insurer is provided with:
 1886         1. A bill of sale, or buyer’s order, or lease agreement
 1887  that which contains a full description of the motor vehicle,
 1888  including all options and accessories; or
 1889         2. A copy of the title or registration that which
 1890  establishes transfer of ownership from the dealer or leasing
 1891  company to the customer and a copy of the window sticker or the
 1892  dealer invoice showing the itemized options and equipment and
 1893  the total retail price of the vehicle.
 1894  
 1895  For the purposes of this paragraph, the physical damage coverage
 1896  on the motor vehicle may not be suspended during the term of the
 1897  policy due to the applicant’s failure to provide the required
 1898  documents. However, payment of a claim is conditioned upon the
 1899  receipt by the insurer of the required documents, and no
 1900  physical damage loss occurring after the effective date of the
 1901  coverage is payable until the documents are provided to the
 1902  insurer.
 1903         Section 51. Paragraph (b) of subsection (3) of section
 1904  627.745, Florida Statutes, is amended, present subsections (4)
 1905  and (5) of that section are redesignated as subsections (5) and
 1906  (6), respectively, and a new subsection (4) is added to that
 1907  section, to read:
 1908         627.745 Mediation of claims.—
 1909         (3)
 1910         (b) To qualify for approval as a mediator, an individual a
 1911  person must meet one of the following qualifications:
 1912         1. Possess an active certification as a Florida Supreme
 1913  Court certified circuit court mediator. A circuit court mediator
 1914  whose certification is in a lapsed, suspended, or decertified
 1915  status is not eligible to participate in the program a masters
 1916  or doctorate degree in psychology, counseling, business,
 1917  accounting, or economics, be a member of The Florida Bar, be
 1918  licensed as a certified public accountant, or demonstrate that
 1919  the applicant for approval has been actively engaged as a
 1920  qualified mediator for at least 4 years prior to July 1, 1990.
 1921         2. Be an approved department mediator as of July 1, 2014,
 1922  and have conducted at least one mediation on behalf of the
 1923  department within the 4 years immediately preceding that the
 1924  date the application for approval is filed with the department,
 1925  have completed a minimum of a 40-hour training program approved
 1926  by the department and successfully passed a final examination
 1927  included in the training program and approved by the department.
 1928  The training program shall include and address all of the
 1929  following:
 1930         a. Mediation theory.
 1931         b. Mediation process and techniques.
 1932         c. Standards of conduct for mediators.
 1933         d. Conflict management and intervention skills.
 1934         e. Insurance nomenclature.
 1935         (4) The department shall deny an application, or suspend or
 1936  revoke its approval of a mediator or certification of a neutral
 1937  evaluator to serve in such capacity, if the department finds
 1938  that any of the following grounds exist:
 1939         (a) Lack of one or more of the qualifications for approval
 1940  or certification specified in this section.
 1941         (b) Material misstatement, misrepresentation, or fraud in
 1942  obtaining, or attempting to obtain, the approval or
 1943  certification.
 1944         (c) Demonstrated lack of fitness or trustworthiness to act
 1945  as a mediator or neutral evaluator.
 1946         (d) Fraudulent or dishonest practices in the conduct of
 1947  mediation or neutral evaluation or in the conduct of business in
 1948  the financial services industry.
 1949         (e) Violation of any provision of this code or of a lawful
 1950  order or rule of the department, violation of the Florida Rules
 1951  of Certified and Court Appointed Mediators, or aiding,
 1952  instructing, or encouraging another party in committing such a
 1953  violation.
 1954  
 1955  The department may adopt rules to administer this subsection.
 1956         Section 52. Subsection (8) of section 627.782, Florida
 1957  Statutes, is amended to read:
 1958         627.782 Adoption of rates.—
 1959         (8) Each title insurance agency and insurer licensed to do
 1960  business in this state and each insurer’s direct or retail
 1961  business in this state shall maintain and submit information,
 1962  including revenue, loss, and expense data, as the office
 1963  determines necessary to assist in the analysis of title
 1964  insurance premium rates, title search costs, and the condition
 1965  of the title insurance industry in this state. This information
 1966  must be transmitted to the office annually by May March 31 of
 1967  the year after the reporting year. The commission shall adopt
 1968  rules regarding the collection and analysis of the data from the
 1969  title insurance industry.
 1970         Section 53. Subsections (1), (3), (10), and (12) of section
 1971  628.461, Florida Statutes, are amended to read:
 1972         628.461 Acquisition of controlling stock.—
 1973         (1) A person may not, individually or in conjunction with
 1974  an any affiliated person of such person, acquire directly or
 1975  indirectly, conclude a tender offer or exchange offer for, enter
 1976  into any agreement to exchange securities for, or otherwise
 1977  finally acquire 10 5 percent or more of the outstanding voting
 1978  securities of a domestic stock insurer or of a controlling
 1979  company, unless:
 1980         (a) The person or affiliated person has filed with the
 1981  office and sent to the insurer and controlling company a letter
 1982  of notification regarding the transaction or proposed
 1983  transaction within no later than 5 days after any form of tender
 1984  offer or exchange offer is proposed, or within no later than 5
 1985  days after the acquisition of the securities if no tender offer
 1986  or exchange offer is involved. The notification must be provided
 1987  on forms prescribed by the commission containing information
 1988  determined necessary to understand the transaction and identify
 1989  all purchasers and owners involved;
 1990         (b) The person or affiliated person has filed with the
 1991  office a statement as specified in subsection (3). The statement
 1992  must be completed and filed within 30 days after:
 1993         1. Any definitive acquisition agreement is entered;
 1994         2. Any form of tender offer or exchange offer is proposed;
 1995  or
 1996         3. The acquisition of the securities, if no definitive
 1997  acquisition agreement, tender offer, or exchange offer is
 1998  involved; and
 1999         (c) The office has approved the tender or exchange offer,
 2000  or acquisition if no tender offer or exchange offer is involved,
 2001  and approval is in effect.
 2002  
 2003  In lieu of a filing as required under this subsection, a party
 2004  acquiring less than 10 percent of the outstanding voting
 2005  securities of an insurer may file a disclaimer of affiliation
 2006  and control. The disclaimer shall fully disclose all material
 2007  relationships and basis for affiliation between the person and
 2008  the insurer as well as the basis for disclaiming the affiliation
 2009  and control. After a disclaimer has been filed, the insurer
 2010  shall be relieved of any duty to register or report under this
 2011  section which may arise out of the insurer’s relationship with
 2012  the person unless and until the office disallows the disclaimer.
 2013  The office shall disallow a disclaimer only after furnishing all
 2014  parties in interest with notice and opportunity to be heard and
 2015  after making specific findings of fact to support the
 2016  disallowance. A filing as required under this subsection must be
 2017  made as to any acquisition that equals or exceeds 10 percent of
 2018  the outstanding voting securities.
 2019         (3) The statement to be filed with the office under
 2020  subsection (1) and furnished to the insurer and controlling
 2021  company must shall contain the following information and any
 2022  additional information as the office deems necessary to
 2023  determine the character, experience, ability, and other
 2024  qualifications of the person or affiliated person of such person
 2025  for the protection of the policyholders and shareholders of the
 2026  insurer and the public:
 2027         (a) The identity of, and the background information
 2028  specified in subsection (4) on, each natural person by whom, or
 2029  on whose behalf, the acquisition is to be made; and, if the
 2030  acquisition is to be made by, or on behalf of, a corporation,
 2031  association, or trust, as to the corporation, association, or
 2032  trust and as to any person who controls either directly or
 2033  indirectly controls the corporation, association, or trust, the
 2034  identity of, and the background information specified in
 2035  subsection (4) on, each director, officer, trustee, or other
 2036  natural person performing duties similar to those of a director,
 2037  officer, or trustee for the corporation, association, or trust;
 2038         (b) The source and amount of the funds or other
 2039  consideration used, or to be used, in making the acquisition;
 2040         (c) Any plans or proposals that which such persons may have
 2041  made to liquidate such insurer, to sell any of its assets or
 2042  merge or consolidate it with any person, or to make any other
 2043  major change in its business or corporate structure or
 2044  management; and any plans or proposals that which such persons
 2045  may have made to liquidate any controlling company of such
 2046  insurer, to sell any of its assets or merge or consolidate it
 2047  with any person, or to make any other major change in its
 2048  business or corporate structure or management;
 2049         (d) The number of shares or other securities which the
 2050  person or affiliated person of such person proposes to acquire,
 2051  the terms of the proposed acquisition, and the manner in which
 2052  the securities are to be acquired; and
 2053         (e) Information as to any contract, arrangement, or
 2054  understanding with any party with respect to any of the
 2055  securities of the insurer or controlling company, including, but
 2056  not limited to, information relating to the transfer of any of
 2057  the securities, option arrangements, puts or calls, or the
 2058  giving or withholding of proxies, which information names the
 2059  party with whom the contract, arrangement, or understanding has
 2060  been entered into and gives the details thereof.
 2061         (10) Upon notification to the office by the domestic stock
 2062  insurer or a controlling company that any person or any
 2063  affiliated person of such person has acquired 10 5 percent or
 2064  more of the outstanding voting securities of the domestic stock
 2065  insurer or controlling company without complying with the
 2066  provisions of this section, the office shall order that the
 2067  person and any affiliated person of such person cease
 2068  acquisition of any further securities of the domestic stock
 2069  insurer or controlling company; however, the person or any
 2070  affiliated person of such person may request a proceeding, which
 2071  proceeding shall be convened within 7 days after the rendering
 2072  of the order for the sole purpose of determining whether the
 2073  person, individually or in connection with an any affiliated
 2074  person of such person, has acquired 10 5 percent or more of the
 2075  outstanding voting securities of a domestic stock insurer or
 2076  controlling company. Upon the failure of the person or
 2077  affiliated person to request a hearing within 7 days, or upon a
 2078  determination at a hearing convened pursuant to this subsection
 2079  that the person or affiliated person has acquired voting
 2080  securities of a domestic stock insurer or controlling company in
 2081  violation of this section, the office may order the person and
 2082  affiliated person to divest themselves of any voting securities
 2083  so acquired.
 2084         (12)(a)A presumption of control may be rebutted by filing
 2085  a disclaimer of control. A person may file a disclaimer of
 2086  control with the office. The disclaimer must fully disclose all
 2087  material relationships and bases for affiliation between the
 2088  person and the insurer as well as the basis for disclaiming the
 2089  affiliation. The disclaimer of control shall be filed on a form
 2090  prescribed by the office, or a person or acquiring party may
 2091  file with the office a copy of a Schedule 13G on file with the
 2092  Securities and Exchange Commission pursuant to Rule 13d-1(b) or
 2093  Rule 13d-1(c) under the Securities Exchange Act of 1934, as
 2094  amended. After a disclaimer is filed, the insurer is relieved of
 2095  any duty to register or report under this section which may
 2096  arise out of the insurer’s relationship with the person, unless
 2097  the office disallows the disclaimer. For the purpose of this
 2098  section, the term “affiliated person” of another person means:
 2099         1. The spouse of such other person;
 2100         2. The parents of such other person and their lineal
 2101  descendants and the parents of such other person’s spouse and
 2102  their lineal descendants;
 2103         3. Any person who directly or indirectly owns or controls,
 2104  or holds with power to vote, 5 percent or more of the
 2105  outstanding voting securities of such other person;
 2106         4. Any person 5 percent or more of the outstanding voting
 2107  securities of which are directly or indirectly owned or
 2108  controlled, or held with power to vote, by such other person;
 2109         5. Any person or group of persons who directly or
 2110  indirectly control, are controlled by, or are under common
 2111  control with such other person;
 2112         6. Any officer, director, partner, copartner, or employee
 2113  of such other person;
 2114         7. If such other person is an investment company, any
 2115  investment adviser of such company or any member of an advisory
 2116  board of such company;
 2117         8. If such other person is an unincorporated investment
 2118  company not having a board of directors, the depositor of such
 2119  company; or
 2120         9. Any person who has entered into an agreement, written or
 2121  unwritten, to act in concert with such other person in acquiring
 2122  or limiting the disposition of securities of a domestic stock
 2123  insurer or controlling company.
 2124         (b) For the purposes of this section, the term “controlling
 2125  company” means any corporation, trust, or association owning,
 2126  directly or indirectly, 25 percent or more of the voting
 2127  securities of one or more domestic stock insurance companies.
 2128         Section 54. Subsection (11) of section 631.717, Florida
 2129  Statutes, is amended to read:
 2130         631.717 Powers and duties of the association.—
 2131         (11) The association is shall not be liable for any civil
 2132  action under s. 624.155 arising from any acts alleged to have
 2133  been committed by a member insurer before prior to its
 2134  liquidation. This subsection does not affect the association’s
 2135  obligation to pay valid insurance policy or contract claims if
 2136  warranted after its independent de novo review of the policies,
 2137  contracts, and claims presented to it, whether domestic or
 2138  foreign, after a Florida domestic rehabilitation or a
 2139  liquidation.
 2140         Section 55. Section 631.737, Florida Statutes, is amended
 2141  to read:
 2142         631.737 Rescission and review generally.—The association
 2143  shall review claims and matters regarding covered policies based
 2144  upon the record available to it on and after the date of
 2145  liquidation. Notwithstanding any other provision of this part,
 2146  in order to allow for orderly claims administration by the
 2147  association, entry of a liquidation order by a court of
 2148  competent jurisdiction tolls shall be deemed to toll for 1 year
 2149  any rescission or noncontestable period allowed by the contract,
 2150  the policy, or by law. The association’s obligation is to pay
 2151  any valid insurance policy or contract claims, if warranted,
 2152  after its independent de novo review of the policies, contracts,
 2153  and claims presented to it, whether domestic or foreign, after a
 2154  rehabilitation or a liquidation.
 2155         Section 56. Subsections (6) and (7) of section 634.406,
 2156  Florida Statutes, are amended to read:
 2157         634.406 Financial requirements.—
 2158         (6) An association that which holds a license under this
 2159  part and which does not hold any other license under this
 2160  chapter may allow its premiums for service warranties written
 2161  under this part to exceed the ratio to net assets limitations of
 2162  this section if the association meets all of the following
 2163  conditions:
 2164         (a) Maintains net assets of at least $750,000.
 2165         (b) Uses Utilizes a contractual liability insurance policy
 2166  approved by the office that: which
 2167         1. Reimburses the service warranty association for 100
 2168  percent of its claims liability and is issued by an insurer that
 2169  maintains a policyholder surplus of at least $100 million; or
 2170         2. Complies with subsection (3) and is issued by an insurer
 2171  that maintains a policyholder surplus of at least $200 million.
 2172         (c) The insurer issuing the contractual liability insurance
 2173  policy:
 2174         1. Maintains a policyholder surplus of at least $100
 2175  million.
 2176         1.2. Is rated “A” or higher by A.M. Best Company or an
 2177  equivalent rating by another national rating service acceptable
 2178  to the office.
 2179         3. Is in no way affiliated with the warranty association.
 2180         2.4. In conjunction with the warranty association’s filing
 2181  of the quarterly and annual reports, provides, on a form
 2182  prescribed by the commission, a statement certifying the gross
 2183  written premiums in force reported by the warranty association
 2184  and a statement that all of the warranty association’s gross
 2185  written premium in force is covered under the contractual
 2186  liability policy, regardless of whether or not it has been
 2187  reported.
 2188         (7) A contractual liability policy must insure 100 percent
 2189  of an association’s claims exposure under all of the
 2190  association’s service warranty contracts, wherever written,
 2191  unless all of the following are satisfied:
 2192         (a) The contractual liability policy contains a clause that
 2193  specifically names the service warranty contract holders as sole
 2194  beneficiaries of the contractual liability policy and claims are
 2195  paid directly to the person making a claim under the contract;
 2196         (b) The contractual liability policy meets all other
 2197  requirements of this part, including subsection (3) of this
 2198  section, which are not inconsistent with this subsection;
 2199         (c) The association has been in existence for at least 5
 2200  years or the association is a wholly owned subsidiary of a
 2201  corporation that has been in existence and has been licensed as
 2202  a service warranty association in the state for at least 5
 2203  years, and:
 2204         1. Is listed and traded on a recognized stock exchange; is
 2205  listed in NASDAQ (National Association of Security Dealers
 2206  Automated Quotation system) and publicly traded in the over-the
 2207  counter securities market; is required to file either of Form
 2208  10-K, Form 100, or Form 20-G with the United States Securities
 2209  and Exchange Commission; or has American Depository Receipts
 2210  listed on a recognized stock exchange and publicly traded or is
 2211  the wholly owned subsidiary of a corporation that is listed and
 2212  traded on a recognized stock exchange; is listed in NASDAQ
 2213  (National Association of Security Dealers Automated Quotation
 2214  system) and publicly traded in the over-the-counter securities
 2215  market; is required to file Form 10-K, Form 100, or Form 20-G
 2216  with the United States Securities and Exchange Commission; or
 2217  has American Depository Receipts listed on a recognized stock
 2218  exchange and is publicly traded;
 2219         2. Maintains outstanding debt obligations, if any, rated in
 2220  the top four rating categories by a recognized rating service;
 2221         3. Has and maintains at all times a minimum net worth of
 2222  not less than $10 million as evidenced by audited financial
 2223  statements prepared by an independent certified public
 2224  accountant in accordance with generally accepted accounting
 2225  principles and submitted to the office annually; and
 2226         4. Is authorized to do business in this state; and
 2227         (d) The insurer issuing the contractual liability policy:
 2228         1. Maintains and has maintained for the preceding 5 years,
 2229  policyholder surplus of at least $100 million and is rated “A”
 2230  or higher by A.M. Best Company or has an equivalent rating by
 2231  another rating company acceptable to the office;
 2232         2. Holds a certificate of authority to do business in this
 2233  state and is approved to write this type of coverage; and
 2234         3. Acknowledges to the office quarterly that it insures all
 2235  of the association’s claims exposure under contracts delivered
 2236  in this state.
 2237  
 2238  If all the preceding conditions are satisfied, then the scope of
 2239  coverage under a contractual liability policy shall not be
 2240  required to exceed an association’s claims exposure under
 2241  service warranty contracts delivered in this state.
 2242         Section 57. Except as otherwise expressly provided in this
 2243  act, this act shall take effect July 1, 2014.