Florida Senate - 2016 CS for SB 336
By the Committee on Regulated Industries; and Senator Richter
580-03294-16 2016336c1
1 A bill to be entitled
2 An act relating to property insurance appraisers and
3 property insurance appraisal umpires; amending s.
4 624.04, F.S.; revising the definition of the term
5 “person”; amending s. 624.303, F.S.; exempting
6 certificates issued to property insurance appraisal
7 umpires from the requirement to bear a seal of the
8 Department of Financial Services; amending s. 624.311,
9 F.S.; providing a schedule for destruction of property
10 insurance appraisal umpire licensing files and
11 records; amending s. 624.317, F.S.; authorizing the
12 department to investigate property insurance appraisal
13 umpires for violations of the insurance code; amending
14 s. 624.501, F.S.; authorizing specified licensing fees
15 for property insurance appraisal umpires; amending s.
16 624.523, F.S.; requiring fees associated with property
17 insurance appraisal umpires’ appointments to be
18 deposited into the Insurance Regulatory Trust Fund;
19 amending s. 626.015, F.S.; providing a definition;
20 amending s. 626.016, F.S.; revising the scope of the
21 Chief Financial Officer’s powers and duties and the
22 department’s enforcement jurisdiction to include
23 umpires; amending s. 626.022, F.S.; including property
24 insurance appraisal umpire licensing in the scope of
25 part I of ch. 626, F.S., relating to licensing
26 procedures; amending s. 626.112, F.S.; requiring
27 umpires to be licensed and appointed; requiring
28 licensure as an adjuster when serving as an appraiser
29 under certain conditions; providing that only a self
30 appointed insurance appraiser may serve as an
31 adjuster; prohibiting convicted felons or certain
32 disqualified persons from engaging in certain
33 activities; amending s. 626.171, F.S.; requiring
34 applicants for licensure as an umpire to submit
35 fingerprints to the department; amending s. 626.207,
36 F.S.; excluding applicants for licensure as umpires
37 from application of s. 112.011, F.S., relating to
38 disqualification from license or public employment;
39 amending s. 626.2815, F.S.; requiring specified
40 continuing education for licensure as an umpire;
41 amending s. 626.451, F.S.; providing requirements
42 relating to the appointment of an umpire; amending s.
43 626.461, F.S.; providing that an umpire appointment
44 continues in effect, subject to renewal or earlier
45 written notice of termination, until the person’s
46 license is revoked or otherwise terminated; amending
47 s. 626.521, F.S.; authorizing the department to obtain
48 a credit and character report for certain umpire
49 applicants; amending s. 626.541, F.S.; requiring an
50 umpire to provide certain information to the
51 department when doing business under a different
52 business name or when information in the licensure
53 application changes; amending s. 626.601, F.S.;
54 authorizing the department or office to investigate
55 improper conduct of any licensed umpire; amending s.
56 626.611, F.S.; requiring the department to refuse,
57 suspend, or revoke an umpire’s license under certain
58 circumstances; amending s. 626.621, F.S.; authorizing
59 the department to refuse, suspend, or revoke an
60 umpire’s license under certain circumstances; amending
61 s. 626.641, F.S.; prohibiting an umpire from owning,
62 controlling, or being employed by other licensees
63 during the period the umpire’s license is suspended or
64 revoked; amending ss. 626.7845, 626.8305, and
65 626.8411, F.S.; conforming provisions to changes made
66 by the act; amending s. 626.8443, F.S.; prohibiting a
67 title insurance agent from owning, controlling, or
68 being employed by an umpire during the period the
69 agent’s license is suspended or revoked; amending s.
70 626.854, F.S.; providing limitations on fees charged
71 by a public adjuster during an appraisal; creating s.
72 626.8791, F.S.; establishing required notice in a
73 contract for appraisal services; amending s. 626.9957,
74 F.S.; conforming a cross-reference; creating part XIV
75 of ch. 626, F.S., relating to property insurance
76 appraisal umpires; creating s. 626.9961, F.S.;
77 providing a short title; creating s. 626.9962, F.S.;
78 providing legislative purpose; creating s. 626.9963,
79 F.S.; providing that the part supplements part I of
80 ch. 626, F.S., the “Licensing Procedure Law”; creating
81 s. 626.9964, F.S.; providing definitions; creating s.
82 626.9965, F.S.; providing qualifications for license
83 as an umpire; creating s. 626.9966, F.S.; authorizing
84 the department to refuse, suspend, or revoke an
85 umpire’s license under certain circumstances; creating
86 s. 626.9967, F.S.; providing ethical standards for
87 property insurance appraisal umpires; creating s.
88 626.9968, F.S.; providing for disqualification of an
89 umpire under certain circumstances; repealing s.
90 627.70151, F.S., relating to appraisal conflicts of
91 interest; providing an appropriation and authorizing
92 positions; providing applicability; providing an
93 effective date.
94
95 Be It Enacted by the Legislature of the State of Florida:
96
97 Section 1. Section 624.04, Florida Statutes, is amended to
98 read:
99 624.04 “Person” defined.—“Person” includes an individual,
100 insurer, company, association, organization, Lloyds, society,
101 reciprocal insurer or interinsurance exchange, partnership,
102 syndicate, business trust, corporation, agent, general agent,
103 broker, service representative, adjuster, property insurance
104 appraisal umpire, and every legal entity.
105 Section 2. Subsection (2) of section 624.303, Florida
106 Statutes, is amended to read:
107 624.303 Seal; certified copies as evidence.—
108 (2) All certificates executed by the department or office,
109 other than licenses of agents, property insurance appraisal
110 umpires, or adjusters, or similar licenses or permits, shall
111 bear its respective seal.
112 Section 3. Subsection (4) of section 624.311, Florida
113 Statutes, is amended to read:
114 624.311 Records; reproductions; destruction.—
115 (4) To facilitate the efficient use of floor space and
116 filing equipment in its offices, the department, commission, and
117 office may each destroy the following records and documents
118 pursuant to chapter 257:
119 (a) General closed correspondence files over 3 years old;
120 (b) Agent, adjuster, property insurance appraisal umpire,
121 and similar license files, including license files of the
122 Division of State Fire Marshal, over 2 years old; except that
123 the department or office shall preserve by reproduction or
124 otherwise a copy of the original records upon the basis of which
125 each such licensee qualified for her or his initial license,
126 except a competency examination, and of any disciplinary
127 proceeding affecting the licensee;
128 (c) All agent, adjuster, property insurance appraisal
129 umpire, and similar license files and records, including
130 original license qualification records and records of
131 disciplinary proceedings 5 years after a licensee has ceased to
132 be qualified for a license;
133 (d) Insurer certificate of authority files over 2 years
134 old, except that the office shall preserve by reproduction or
135 otherwise a copy of the initial certificate of authority of each
136 insurer;
137 (e) All documents and records which have been photographed
138 or otherwise reproduced as provided in subsection (3), if such
139 reproductions have been filed and an audit of the department or
140 office has been completed for the period embracing the dates of
141 such documents and records; and
142 (f) All other records, documents, and files not expressly
143 provided for in paragraphs (a)-(e).
144 Section 4. Section 624.317, Florida Statutes, is amended to
145 read:
146 624.317 Investigation of agents, adjusters, property
147 insurance appraisal umpires, administrators, service companies,
148 and others.—If it has reason to believe that any person has
149 violated or is violating any provision of this code, or upon the
150 written complaint signed by any interested person indicating
151 that any such violation may exist:
152 (1) The department shall conduct such investigation as it
153 deems necessary of the accounts, records, documents, and
154 transactions pertaining to or affecting the insurance affairs of
155 any general agent, surplus lines agent, adjuster, property
156 insurance appraisal umpire, managing general agent, insurance
157 agent, insurance agency, customer representative, service
158 representative, or other person subject to its jurisdiction,
159 subject to the requirements of s. 626.601.
160 (2) The office shall conduct such investigation as it deems
161 necessary of the accounts, records, documents, and transactions
162 pertaining to or affecting the insurance affairs of any:
163 (a) Administrator, service company, or other person subject
164 to its jurisdiction.
165 (b) Person having a contract or power of attorney under
166 which she or he enjoys in fact the exclusive or dominant right
167 to manage or control an insurer.
168 (c) Person engaged in or proposing to be engaged in the
169 promotion or formation of:
170 1. A domestic insurer;
171 2. An insurance holding corporation; or
172 3. A corporation to finance a domestic insurer or in the
173 production of the domestic insurer’s business.
174 Section 5. Paragraph (c) of subsection (19) and subsection
175 (28) of section 624.501, Florida Statutes, are amended, and
176 subsection (29) is added to that section, to read:
177 624.501 Filing, license, appointment, and miscellaneous
178 fees.—The department, commission, or office, as appropriate,
179 shall collect in advance, and persons so served shall pay to it
180 in advance, fees, licenses, and miscellaneous charges as
181 follows:
182 (19) Miscellaneous services:
183 (c) For preparing lists of agents, adjusters, property
184 insurance appraisal umpires, and other insurance
185 representatives, and for other miscellaneous services, such
186 reasonable charge as may be fixed by the office or department.
187 (28) Late filing of appointment renewals for agents,
188 adjusters, property insurance appraisal umpires, and other
189 insurance representatives, each appointment...............$20.00
190 (29) Property insurance appraisal umpires:
191 (a) Property insurance appraisal umpire’s appointment and
192 biennial renewal or continuation thereof, each appointment
193 ..........................................................$60.00
194 (b) Fee to cover the actual cost of a credit report when
195 the report must be secured by the department.
196 Section 6. Paragraph (e) of subsection (1) of section
197 624.523, Florida Statutes, is amended to read:
198 624.523 Insurance Regulatory Trust Fund.—
199 (1) There is created in the State Treasury a trust fund
200 designated “Insurance Regulatory Trust Fund” to which shall be
201 credited all payments received on account of the following
202 items:
203 (e) All payments received on account of items provided for
204 under respective provisions of s. 624.501, as follows:
205 1. Subsection (1) (certificate of authority of insurer).
206 2. Subsection (2) (charter documents of insurer).
207 3. Subsection (3) (annual license tax of insurer).
208 4. Subsection (4) (annual statement of insurer).
209 5. Subsection (5) (application fee for insurance
210 representatives).
211 6. The “appointment fee” portion of any appointment
212 provided for under paragraphs (6)(a) and (b) (insurance
213 representatives, property, marine, casualty and surety
214 insurance, and agents).
215 7. Paragraph (6)(c) (nonresident agents).
216 8. Paragraph (6)(d) (service representatives).
217 9. The “appointment fee” portion of any appointment
218 provided for under paragraph (7)(a) (life insurance agents,
219 original appointment, and renewal or continuation of
220 appointment).
221 10. Paragraph (7)(b) (nonresident agent license).
222 11. The “appointment fee” portion of any appointment
223 provided for under paragraph (8)(a) (health insurance agents,
224 agent’s appointment, and renewal or continuation fee).
225 12. Paragraph (8)(b) (nonresident agent appointment).
226 13. The “appointment fee” portion of any appointment
227 provided for under subsections (9) and (10) (limited licenses
228 and fraternal benefit society agents).
229 14. Subsection (11) (surplus lines agent).
230 15. Subsection (12) (adjusters’ appointment).
231 16. Subsection (13) (examination fee).
232 17. Subsection (14) (temporary license and appointment as
233 agent or adjuster).
234 18. Subsection (15) (reissuance, reinstatement, etc.).
235 19. Subsection (16) (additional license continuation fees).
236 20. Subsection (17) (filing application for permit to form
237 insurer).
238 21. Subsection (18) (license fee of rating organization).
239 22. Subsection (19) (miscellaneous services).
240 23. Subsection (20) (insurance agencies).
241 24. Subsection (29) (property insurance appraisal umpires’
242 appointment).
243 Section 7. Subsections (16) through (19) of section
244 626.015, Florida Statutes, are renumbered as subsections (17)
245 through (20), respectively, and a new subsection (16) is added
246 to that section, to read:
247 626.015 Definitions.—As used in this part:
248 (16) “Property insurance appraisal umpire” or “umpire”
249 means a property insurance appraisal umpire as defined in s.
250 626.9964.
251 Section 8. Subsection (1) of section 626.016, Florida
252 Statutes, is amended to read:
253 626.016 Powers and duties of department, commission, and
254 office.—
255 (1) The powers and duties of the Chief Financial Officer
256 and the department specified in this part apply only with
257 respect to insurance agents, insurance agencies, managing
258 general agents, insurance adjusters, umpires, reinsurance
259 intermediaries, viatical settlement brokers, customer
260 representatives, service representatives, and agencies.
261 Section 9. Subsection (1) of section 626.022, Florida
262 Statutes, is amended to read:
263 626.022 Scope of part.—
264 (1) This part applies as to insurance agents, service
265 representatives, adjusters, umpires, and insurance agencies; as
266 to any and all kinds of insurance; and as to stock insurers,
267 mutual insurers, reciprocal insurers, and all other types of
268 insurers, except that:
269 (a) It does not apply as to reinsurance, except that ss.
270 626.011-626.022, ss. 626.112-626.181, ss. 626.191-626.211, ss.
271 626.291-626.301, s. 626.331, ss. 626.342-626.521, ss. 626.541
272 626.591, and ss. 626.601-626.711 shall apply as to reinsurance
273 intermediaries as defined in s. 626.7492.
274 (b) The applicability of this chapter as to fraternal
275 benefit societies shall be as provided in chapter 632.
276 (c) It does not apply to a bail bond agent, as defined in
277 s. 648.25, except as provided in chapter 648 or chapter 903.
278 (d) This part does not apply to a certified public
279 accountant licensed under chapter 473 who is acting within the
280 scope of the practice of public accounting, as defined in s.
281 473.302, provided that the activities of the certified public
282 accountant are limited to advising a client of the necessity of
283 obtaining insurance, the amount of insurance needed, or the line
284 of coverage needed, and provided that the certified public
285 accountant does not directly or indirectly receive or share in
286 any commission or referral fee.
287 Section 10. Section 626.112, Florida Statutes, is amended
288 to read:
289 626.112 License and appointment required; agents, customer
290 representatives, adjusters, umpires, insurance agencies, service
291 representatives, managing general agents.—
292 (1)(a) No person may be, act as, or advertise or hold
293 himself or herself out to be an insurance agent, insurance
294 adjuster, or customer representative unless he or she is
295 currently licensed by the department and appointed by an
296 appropriate appointing entity or person.
297 (b) Except as provided in subsection (9) (6) or in
298 applicable department rules, and in addition to other conduct
299 described in this chapter with respect to particular types of
300 agents, a license as an insurance agent, service representative,
301 customer representative, or limited customer representative is
302 required in order to engage in the solicitation of insurance.
303 For purposes of this requirement, as applicable to any of the
304 license types described in this section, the solicitation of
305 insurance is the attempt to persuade any person to purchase an
306 insurance product by:
307 1. Describing the benefits or terms of insurance coverage,
308 including premiums or rates of return;
309 2. Distributing an invitation to contract to prospective
310 purchasers;
311 3. Making general or specific recommendations as to
312 insurance products;
313 4. Completing orders or applications for insurance
314 products;
315 5. Comparing insurance products, advising as to insurance
316 matters, or interpreting policies or coverages; or
317 6. Offering or attempting to negotiate on behalf of another
318 person a viatical settlement contract as defined in s. 626.9911.
319
320 However, an employee leasing company licensed pursuant to
321 chapter 468 which is seeking to enter into a contract with an
322 employer that identifies products and services offered to
323 employees may deliver proposals for the purchase of employee
324 leasing services to prospective clients of the employee leasing
325 company setting forth the terms and conditions of doing
326 business; classify employees as permitted by s. 468.529; collect
327 information from prospective clients and other sources as
328 necessary to perform due diligence on the prospective client and
329 to prepare a proposal for services; provide and receive
330 enrollment forms, plans, and other documents; and discuss or
331 explain in general terms the conditions, limitations, options,
332 or exclusions of insurance benefit plans available to the client
333 or employees of the employee leasing company were the client to
334 contract with the employee leasing company. Any advertising
335 materials or other documents describing specific insurance
336 coverages must identify and be from a licensed insurer or its
337 licensed agent or a licensed and appointed agent employed by the
338 employee leasing company. The employee leasing company may not
339 advise or inform the prospective business client or individual
340 employees of specific coverage provisions, exclusions, or
341 limitations of particular plans. As to clients for which the
342 employee leasing company is providing services pursuant to s.
343 468.525(4), the employee leasing company may engage in
344 activities permitted by ss. 626.7315, 626.7845, and 626.8305,
345 subject to the restrictions specified in those sections. If a
346 prospective client requests more specific information concerning
347 the insurance provided by the employee leasing company, the
348 employee leasing company must refer the prospective business
349 client to the insurer or its licensed agent or to a licensed and
350 appointed agent employed by the employee leasing company.
351 (2) No agent or customer representative shall solicit or
352 otherwise transact as agent or customer representative, or
353 represent or hold himself or herself out to be an agent or
354 customer representative as to, any kind or kinds of insurance as
355 to which he or she is not then licensed and appointed.
356 (3) No person shall act as an adjuster as to any class of
357 business for which he or she is not then licensed and appointed.
358 (4) No person shall be, act as, or represent or hold
359 himself or herself out to be a service representative unless he
360 or she then holds a currently effective service representative
361 license and appointment. This subsection does not apply as to
362 similar representatives or employees of casualty insurers whose
363 duties are restricted to health insurance.
364 (5) No person shall be, act as, or represent or hold
365 himself or herself out to be a managing general agent unless he
366 or she then holds a currently effective managing general agent
367 license and appointment.
368 (6) No person shall be, act as, or represent or hold
369 himself or herself out to be a property insurance appraisal
370 umpire unless he or she holds a currently effective license and
371 appointment as a property insurance appraisal umpire.
372 (7) No person shall be, act as, or represent or hold
373 himself or herself out to be a property insurance appraiser who
374 is eligible to represent an insured on a personal residential or
375 commercial residential property insurance claim unless he or she
376 holds a currently effective license as an adjuster or is exempt
377 from licensure under s. 626.860. Only a self-appointed insurance
378 appraiser may serve as an adjuster.
379 (8) No person who is a convicted felon or disqualified
380 under s. 626.207 may act or serve as a property insurance
381 appraisal umpire or property insurance appraiser.
382 (9)(6) An individual employed by a life or health insurer
383 as an officer or other salaried representative may solicit and
384 effect contracts of life insurance or annuities or of health
385 insurance, without being licensed as an agent, when and only
386 when he or she is accompanied by and solicits for and on the
387 behalf of a licensed and appointed agent.
388 (10)(a)(7)(a) An individual, firm, partnership,
389 corporation, association, or other entity shall not act in its
390 own name or under a trade name, directly or indirectly, as an
391 insurance agency unless it complies with s. 626.172 with respect
392 to possessing an insurance agency license for each place of
393 business at which it engages in an activity that may be
394 performed only by a licensed insurance agent. However, an
395 insurance agency that is owned and operated by a single licensed
396 agent conducting business in his or her individual name and not
397 employing or otherwise using the services of or appointing other
398 licensees shall be exempt from the agency licensing requirements
399 of this subsection.
400 (b) A branch place of business that is established by a
401 licensed agency is considered a branch agency and is not
402 required to be licensed so long as it transacts business under
403 the same name and federal tax identification number as the
404 licensed agency and has designated with the department a
405 licensed agent in charge of the branch location as required by
406 s. 626.0428 and the address and telephone number of the branch
407 location have been submitted to the department for inclusion in
408 the licensing record of the licensed agency within 30 days after
409 insurance transactions begin at the branch location.
410 (c) If an agency is required to be licensed but fails to
411 file an application for licensure in accordance with this
412 section, the department shall impose on the agency an
413 administrative penalty of up to $10,000.
414 (d) Effective October 1, 2015, the department must
415 automatically convert the registration of an approved registered
416 insurance agency to an insurance agency license.
417 (11)(8) No insurance agent, insurance agency, or other
418 person licensed under the Insurance Code may pay any fee or
419 other consideration to an unlicensed person other than an
420 insurance agency for the referral of prospective purchasers to
421 an insurance agent which is in any way dependent upon whether
422 the referral results in the purchase of an insurance product.
423 (12)(9) Any person who knowingly transacts insurance or
424 otherwise engages in insurance activities in this state without
425 a license in violation of this section commits a felony of the
426 third degree, punishable as provided in s. 775.082, s. 775.083,
427 or s. 775.084.
428 Section 11. Subsections (1) and (4) of section 626.171,
429 Florida Statutes, are amended to read:
430 626.171 Application for license as an agent, customer
431 representative, adjuster, umpire, service representative,
432 managing general agent, or reinsurance intermediary.—
433 (1) The department may not issue a license as agent,
434 customer representative, adjuster, umpire, service
435 representative, managing general agent, or reinsurance
436 intermediary to any person except upon written application filed
437 with the department, meeting the qualifications for the license
438 applied for as determined by the department, and payment in
439 advance of all applicable fees. The application must be made
440 under the oath of the applicant and be signed by the applicant.
441 An applicant may permit a third party to complete, submit, and
442 sign an application on the applicant’s behalf, but is
443 responsible for ensuring that the information on the application
444 is true and correct and is accountable for any misstatements or
445 misrepresentations. The department shall accept the uniform
446 application for nonresident agent licensing. The department may
447 adopt revised versions of the uniform application by rule.
448 (4) An applicant for a license as an agent, customer
449 representative, adjuster, umpire, service representative,
450 managing general agent, or reinsurance intermediary must submit
451 a set of the individual applicant’s fingerprints, or, if the
452 applicant is not an individual, a set of the fingerprints of the
453 sole proprietor, majority owner, partners, officers, and
454 directors, to the department and must pay the fingerprint
455 processing fee set forth in s. 624.501. Fingerprints shall be
456 used to investigate the applicant’s qualifications pursuant to
457 s. 626.201. The fingerprints shall be taken by a law enforcement
458 agency, designated examination center, or other department
459 approved entity. The department shall require all designated
460 examination centers to have fingerprinting equipment and to take
461 fingerprints from any applicant or prospective applicant who
462 pays the applicable fee. The department may not approve an
463 application for licensure as an agent, customer service
464 representative, adjuster, umpire, service representative,
465 managing general agent, or reinsurance intermediary if
466 fingerprints have not been submitted.
467 Section 12. Subsection (9) of section 626.207, Florida
468 Statutes, is amended to read:
469 626.207 Disqualification of applicants and licensees;
470 penalties against licensees; rulemaking authority.—
471 (9) Section 112.011 does not apply to any applicants for
472 licensure under the Florida Insurance Code, including, but not
473 limited to, agents, agencies, adjusters, adjusting firms,
474 umpires, customer representatives, or managing general agents.
475 Section 13. Subsections (1) and (2) of section 626.2815,
476 Florida Statutes, are amended to read:
477 626.2815 Continuing education requirements.—
478 (1) The purpose of this section is to establish
479 requirements and standards for continuing education courses for
480 individuals licensed to solicit, sell, or adjust insurance or to
481 serve as an umpire in the state.
482 (2) Except as otherwise provided in this section, this
483 section applies to individuals licensed to transact engage in
484 the sale of insurance or adjust adjustment of insurance claims
485 in this state for all lines of insurance for which an
486 examination is required for licensing and to individuals
487 licensed to serve as an umpire each insurer, employer, or
488 appointing entity, including, but not limited to, those created
489 or existing pursuant to s. 627.351. This section does not apply
490 to an individual who holds a license for the sale of any line of
491 insurance for which an examination is not required by the laws
492 of this state or who holds a limited license as a crop or hail
493 and multiple-peril crop insurance agent. Licensees who are
494 unable to comply with the continuing education requirements due
495 to active duty in the military may submit a written request for
496 a waiver to the department.
497 Section 14. Subsections (1), (3), (5), and (6) of section
498 626.451, Florida Statutes, are amended to read:
499 626.451 Appointment of agent or other representative.—
500 (1) Each appointing entity or person designated by the
501 department to administer the appointment process appointing an
502 agent, adjuster, umpire, service representative, customer
503 representative, or managing general agent in this state shall
504 file the appointment with the department or office and, at the
505 same time, pay the applicable appointment fee and taxes. Every
506 appointment shall be subject to the prior issuance of the
507 appropriate agent’s, adjuster’s, umpire’s, service
508 representative’s, customer representative’s, or managing general
509 agent’s license.
510 (3) By authorizing the effectuation of the appointment of
511 an agent, adjuster, umpire, service representative, customer
512 representative, or managing general agent the appointing entity
513 is thereby certifying to the department that it is willing to be
514 bound by the acts of the agent, adjuster, umpire, service
515 representative, customer representative, or managing general
516 agent, within the scope of the licensee’s employment or
517 appointment.
518 (5) Any law enforcement agency or state attorney’s office
519 that is aware that an agent, adjuster, umpire, service
520 representative, customer representative, or managing general
521 agent has pleaded guilty or nolo contendere to or has been found
522 guilty of a felony shall notify the department or office of such
523 fact.
524 (6) Upon the filing of an information or indictment against
525 an agent, adjuster, umpire, service representative, customer
526 representative, or managing general agent, the state attorney
527 shall immediately furnish the department or office a certified
528 copy of the information or indictment.
529 Section 15. Section 626.461, Florida Statutes, is amended
530 to read:
531 626.461 Continuation of appointment of agent or other
532 representative.—Subject to renewal or continuation by the
533 appointing entity, the appointment of the agent, adjuster,
534 umpire, service representative, customer representative, or
535 managing general agent shall continue in effect until the
536 person’s license is revoked or otherwise terminated, unless
537 written notice of earlier termination of the appointment is
538 filed with the department or person designated by the department
539 to administer the appointment process by either the appointing
540 entity or the appointee.
541 Section 16. Subsection (3) of section 626.521, Florida
542 Statutes, is amended to read:
543 626.521 Character, credit reports.—
544 (3) As to an applicant for an adjuster’s, umpire’s, or
545 reinsurance intermediary’s license who is to be self-employed,
546 the department may secure, at the cost of the applicant, a full
547 detailed credit and character report made by an established and
548 reputable independent reporting service relative to the
549 applicant.
550 Section 17. Subsection (1) of section 626.541, Florida
551 Statutes, is amended to read:
552 626.541 Firm, corporate, and business names; officers;
553 associates; notice of changes.—
554 (1) Any licensed agent, or adjuster, or umpire doing
555 business under a firm or corporate name or under any business
556 name other than his or her own individual name shall, within 30
557 days after initially transacting the initial transaction of
558 insurance or engaging in insurance activities under such
559 business name, file with the department, on forms adopted and
560 furnished by the department, a written statement of the firm,
561 corporate, or business name being so used, the address of any
562 office or offices or places of business making use of such name,
563 and the name and social security number of each officer and
564 director of the corporation and of each individual associated in
565 such firm or corporation as to the insurance transactions
566 thereof or in the use of such business name.
567 Section 18. Subsection (1) of section 626.601, Florida
568 Statutes, is amended to read:
569 626.601 Improper conduct; inquiry; fingerprinting.—
570 (1) The department or office may, upon its own motion or
571 upon a written complaint signed by any interested person and
572 filed with the department or office, inquire into any alleged
573 improper conduct of any licensed, approved, or certified
574 licensee, insurance agency, agent, adjuster, umpire, service
575 representative, managing general agent, customer representative,
576 title insurance agent, title insurance agency, mediator, neutral
577 evaluator, navigator, continuing education course provider,
578 instructor, school official, or monitor group under this code.
579 The department or office may thereafter initiate an
580 investigation of any such individual or entity if it has
581 reasonable cause to believe that the individual or entity has
582 violated any provision of the insurance code. During the course
583 of its investigation, the department or office shall contact the
584 individual or entity being investigated unless it determines
585 that contacting such individual or entity could jeopardize the
586 successful completion of the investigation or cause injury to
587 the public.
588 Section 19. Subsection (1) of section 626.611, Florida
589 Statutes, is amended to read:
590 626.611 Grounds for compulsory refusal, suspension, or
591 revocation of agent’s, title agency’s, adjuster’s, umpire’s,
592 customer representative’s, service representative’s, or managing
593 general agent’s license or appointment.—
594 (1) The department shall deny an application for, suspend,
595 revoke, or refuse to renew or continue the license or
596 appointment of any applicant, agent, title agency, adjuster,
597 umpire, customer representative, service representative, or
598 managing general agent, and it shall suspend or revoke the
599 eligibility to hold a license or appointment of any such person,
600 if it finds that as to the applicant, licensee, or appointee any
601 one or more of the following applicable grounds exist:
602 (a) Lack of one or more of the qualifications for the
603 license or appointment as specified in this code.
604 (b) Material misstatement, misrepresentation, or fraud in
605 obtaining the license or appointment or in attempting to obtain
606 the license or appointment.
607 (c) Failure to pass to the satisfaction of the department
608 any examination required under this code.
609 (d) If the license or appointment is willfully used, or to
610 be used, to circumvent any of the requirements or prohibitions
611 of this code.
612 (e) Willful misrepresentation of any insurance policy or
613 annuity contract or willful deception with regard to any such
614 policy or contract, done either in person or by any form of
615 dissemination of information or advertising.
616 (f) If, as an adjuster, or agent licensed and appointed to
617 adjust claims under this code, he or she has materially
618 misrepresented to an insured or other interested party the terms
619 and coverage of an insurance contract with intent and for the
620 purpose of effecting settlement of claim for loss or damage or
621 benefit under such contract on less favorable terms than those
622 provided in and contemplated by the contract.
623 (g) Demonstrated lack of fitness or trustworthiness to
624 engage in the business of insurance.
625 (h) Demonstrated lack of reasonably adequate knowledge and
626 technical competence to engage in the transactions authorized by
627 the license or appointment.
628 (i) Fraudulent or dishonest practices in the conduct of
629 business under the license or appointment.
630 (j) Misappropriation, conversion, or unlawful withholding
631 of moneys belonging to insurers or insureds or beneficiaries or
632 to others and received in conduct of business under the license
633 or appointment.
634 (k) Unlawfully rebating, attempting to unlawfully rebate,
635 or unlawfully dividing or offering to divide his or her
636 commission with another.
637 (l) Having obtained or attempted to obtain, or having used
638 or using, a license or appointment as agent or customer
639 representative for the purpose of soliciting or handling
640 “controlled business” as defined in s. 626.730 with respect to
641 general lines agents, s. 626.784 with respect to life agents,
642 and s. 626.830 with respect to health agents.
643 (m) Willful failure to comply with, or willful violation
644 of, any proper order or rule of the department or willful
645 violation of any provision of this code.
646 (n) Having been found guilty of or having pleaded guilty or
647 nolo contendere to a felony or a crime punishable by
648 imprisonment of 1 year or more under the law of the United
649 States of America or of any state thereof or under the law of
650 any other country which involves moral turpitude, without regard
651 to whether a judgment of conviction has been entered by the
652 court having jurisdiction of such cases.
653 (o) Fraudulent or dishonest practice in submitting or
654 aiding or abetting any person in the submission of an
655 application for workers’ compensation coverage under chapter 440
656 containing false or misleading information as to employee
657 payroll or classification for the purpose of avoiding or
658 reducing the amount of premium due for such coverage.
659 (p) Sale of an unregistered security that was required to
660 be registered, pursuant to chapter 517.
661 (q) In transactions related to viatical settlement
662 contracts as defined in s. 626.9911:
663 1. Commission of a fraudulent or dishonest act.
664 2. No longer meeting the requirements for initial
665 licensure.
666 3. Having received a fee, commission, or other valuable
667 consideration for his or her services with respect to viatical
668 settlements that involved unlicensed viatical settlement
669 providers or persons who offered or attempted to negotiate on
670 behalf of another person a viatical settlement contract as
671 defined in s. 626.9911 and who were not licensed life agents.
672 4. Dealing in bad faith with viators.
673 Section 20. Section 626.621, Florida Statutes, is amended
674 to read:
675 626.621 Grounds for discretionary refusal, suspension, or
676 revocation of agent’s, adjuster’s, umpire’s, customer
677 representative’s, service representative’s, or managing general
678 agent’s license or appointment.—The department may, in its
679 discretion, deny an application for, suspend, revoke, or refuse
680 to renew or continue the license or appointment of any
681 applicant, agent, adjuster, umpire, customer representative,
682 service representative, or managing general agent, and it may
683 suspend or revoke the eligibility to hold a license or
684 appointment of any such person, if it finds that as to the
685 applicant, licensee, or appointee any one or more of the
686 following applicable grounds exist under circumstances for which
687 such denial, suspension, revocation, or refusal is not mandatory
688 under s. 626.611:
689 (1) Any cause for which issuance of the license or
690 appointment could have been refused had it then existed and been
691 known to the department.
692 (2) Violation of any provision of this code or of any other
693 law applicable to the business of insurance in the course of
694 dealing under the license or appointment.
695 (3) Violation of any lawful order or rule of the
696 department, commission, or office.
697 (4) Failure or refusal, upon demand, to pay over to any
698 insurer he or she represents or has represented any money coming
699 into his or her hands belonging to the insurer.
700 (5) Violation of the provision against twisting, as defined
701 in s. 626.9541(1)(l).
702 (6) In the conduct of business under the license or
703 appointment, engaging in unfair methods of competition or in
704 unfair or deceptive acts or practices, as prohibited under part
705 IX of this chapter, or having otherwise shown himself or herself
706 to be a source of injury or loss to the public.
707 (7) Willful overinsurance of any property or health
708 insurance risk.
709 (8) Having been found guilty of or having pleaded guilty or
710 nolo contendere to a felony or a crime punishable by
711 imprisonment of 1 year or more under the law of the United
712 States of America or of any state thereof or under the law of
713 any other country, without regard to whether a judgment of
714 conviction has been entered by the court having jurisdiction of
715 such cases.
716 (9) If a life agent, violation of the code of ethics.
717 (10) Cheating on an examination required for licensure or
718 violating test center or examination procedures published
719 orally, in writing, or electronically at the test site by
720 authorized representatives of the examination program
721 administrator. Communication of test center and examination
722 procedures must be clearly established and documented.
723 (11) Failure to inform the department in writing within 30
724 days after pleading guilty or nolo contendere to, or being
725 convicted or found guilty of, any felony or a crime punishable
726 by imprisonment of 1 year or more under the law of the United
727 States or of any state thereof, or under the law of any other
728 country without regard to whether a judgment of conviction has
729 been entered by the court having jurisdiction of the case.
730 (12) Knowingly aiding, assisting, procuring, advising, or
731 abetting any person in the violation of or to violate a
732 provision of the insurance code or any order or rule of the
733 department, commission, or office.
734 (13) Has been the subject of or has had a license, permit,
735 appointment, registration, or other authority to conduct
736 business subject to any decision, finding, injunction,
737 suspension, prohibition, revocation, denial, judgment, final
738 agency action, or administrative order by any court of competent
739 jurisdiction, administrative law proceeding, state agency,
740 federal agency, national securities, commodities, or option
741 exchange, or national securities, commodities, or option
742 association involving a violation of any federal or state
743 securities or commodities law or any rule or regulation adopted
744 thereunder, or a violation of any rule or regulation of any
745 national securities, commodities, or options exchange or
746 national securities, commodities, or options association.
747 (14) Failure to comply with any civil, criminal, or
748 administrative action taken by the child support enforcement
749 program under Title IV-D of the Social Security Act, 42 U.S.C.
750 ss. 651 et seq., to determine paternity or to establish, modify,
751 enforce, or collect support.
752 (15) Directly or indirectly accepting any compensation,
753 inducement, or reward from an inspector for the referral of the
754 owner of the inspected property to the inspector or inspection
755 company. This prohibition applies to an inspection intended for
756 submission to an insurer in order to obtain property insurance
757 coverage or establish the applicable property insurance premium.
758 Section 21. Subsection (4) of section 626.641, Florida
759 Statutes, is amended to read:
760 626.641 Duration of suspension or revocation.—
761 (4) During the period of suspension or revocation of a
762 license or appointment, and until the license is reinstated or,
763 if revoked, a new license issued, the former licensee or
764 appointee may not engage in or attempt or profess to engage in
765 any transaction or business for which a license or appointment
766 is required under this code or directly or indirectly own,
767 control, or be employed in any manner by an agent, agency,
768 adjuster, or adjusting firm, or umpire.
769 Section 22. Subsection (2) of section 626.7845, Florida
770 Statutes, is amended to read:
771 626.7845 Prohibition against unlicensed transaction of life
772 insurance.—
773 (2) Except as provided in s. 626.112(9) 626.112(6), with
774 respect to any line of authority specified in s. 626.015(10), no
775 individual shall, unless licensed as a life agent:
776 (a) Solicit insurance or annuities or procure applications;
777 (b) In this state, engage or hold himself or herself out as
778 engaging in the business of analyzing or abstracting insurance
779 policies or of counseling or advising or giving opinions to
780 persons relative to insurance or insurance contracts other than:
781 1. As a consulting actuary advising an insurer; or
782 2. As to the counseling and advising of labor unions,
783 associations, trustees, employers, or other business entities,
784 the subsidiaries and affiliates of each, relative to their
785 interests and those of their members or employees under
786 insurance benefit plans; or
787 (c) In this state, from this state, or with a resident of
788 this state, offer or attempt to negotiate on behalf of another
789 person a viatical settlement contract as defined in s. 626.9911.
790 Section 23. Section 626.8305, Florida Statutes, is amended
791 to read:
792 626.8305 Prohibition against the unlicensed transaction of
793 health insurance.—Except as provided in s. 626.112(9)
794 626.112(6), with respect to any line of authority specified in
795 s. 626.015(6), no individual shall, unless licensed as a health
796 agent:
797 (1) Solicit insurance or procure applications; or
798 (2) In this state, engage or hold himself or herself out as
799 engaging in the business of analyzing or abstracting insurance
800 policies or of counseling or advising or giving opinions to
801 persons relative to insurance contracts other than:
802 (a) As a consulting actuary advising insurers; or
803 (b) As to the counseling and advising of labor unions,
804 associations, trustees, employers, or other business entities,
805 the subsidiaries and affiliates of each, relative to their
806 interests and those of their members or employees under
807 insurance benefit plans.
808 Section 24. Paragraph (a) of subsection (2) of section
809 626.8411, Florida Statutes, is amended to read:
810 626.8411 Application of Florida Insurance Code provisions
811 to title insurance agents or agencies.—
812 (2) The following provisions of part I do not apply to
813 title insurance agents or title insurance agencies:
814 (a) Section 626.112(10) 626.112(7), relating to licensing
815 of insurance agencies.
816 Section 25. Subsection (4) of section 626.8443, Florida
817 Statutes, is amended to read:
818 626.8443 Duration of suspension or revocation.—
819 (4) During the period of suspension or after revocation of
820 the license and appointment, the former licensee shall not
821 engage in or attempt to profess to engage in any transaction or
822 business for which a license or appointment is required under
823 this code or directly or indirectly own, control, or be employed
824 in any manner by any insurance agent or agency, or adjuster, or
825 adjusting firm, or umpire.
826 Section 26. Paragraph (d) is added to subsection (11) of
827 section 626.854, Florida Statutes, to read:
828 626.854 “Public adjuster” defined; prohibitions.—The
829 Legislature finds that it is necessary for the protection of the
830 public to regulate public insurance adjusters and to prevent the
831 unauthorized practice of law.
832 (11)
833 (d) If a public adjuster enters into a contract with an
834 insured or a claimant to perform an appraisal, as defined in s.
835 626.9964, the public adjuster may not charge, agree to, or
836 accept from any source compensation, payment, commission, fee,
837 or any other thing of value in excess of the limitations set
838 forth in paragraph (b) for the appraisal services or, if also
839 serving as adjuster on the claim, a combination of adjuster and
840 appraisal services.
841 Section 27. Section 626.8791, Florida Statutes, is created
842 to read:
843 626.8791 Contracts for appraisal services; required
844 notice.—A contract between an adjuster and an insured or
845 claimant to perform an appraisal must contain the following
846 language in at least 14-point boldfaced, uppercase type: “THERE
847 IS NO LEGAL REQUIREMENT THAT AN APPRAISER CHARGE A CLIENT A SET
848 FEE OR A PERCENTAGE OF MONEY RECOVERED IN A CASE. YOU, THE
849 CLIENT, HAVE THE RIGHT TO TALK WITH YOUR APPRAISER ABOUT THE
850 PROPOSED FEE AND TO BARGAIN ABOUT THE RATE OR PERCENTAGE AS IN
851 ANY OTHER CONTRACT. IF YOU DO NOT REACH AN AGREEMENT WITH ONE
852 APPRAISER, YOU MAY TALK WITH OTHER APPRAISERS.”
853 Section 28. Subsection (1) of section 626.9957, Florida
854 Statutes, is amended to read:
855 626.9957 Conduct prohibited; denial, revocation, or
856 suspension of registration.—
857 (1) As provided in s. 626.112, only a person licensed as an
858 insurance agent or customer representative may engage in the
859 solicitation of insurance. A person who engages in the
860 solicitation of insurance as described in s. 626.112(1) without
861 such license is subject to the penalties provided under s.
862 626.112(12) 626.112(9).
863 Section 29. Part XIV of chapter 626, Florida Statutes,
864 consisting of sections 626.9961 through 626.9968, is created to
865 read:
866 PART XIV
867 PROPERTY INSURANCE APPRAISAL UMPIRES
868 626.9961 Short title.—This part may be referred to as the
869 “Property Insurance Appraisal Umpire Law.”
870 626.9962 Legislative findings.—The Legislature finds it
871 necessary to regulate persons that hold themselves out to the
872 public as qualified to provide services as property insurance
873 appraisal umpires in order to protect the public safety and
874 welfare and to avoid economic injury to the residents of this
875 state. This part applies only to property insurance appraisal
876 umpires as defined in this part.
877 626.9963 Part supplements licensing law.—This part is
878 supplementary to part I, the “Licensing Procedures Law.”
879 626.9964 Definitions.—As used in this part, the term:
880 (1) “Appraisal” means, for purposes of licensure under this
881 part only, a process of alternative dispute resolution used in a
882 personal residential or commercial residential property
883 insurance claim.
884 (2) “Competent” means sufficiently qualified and capable of
885 performing an appraisal.
886 (3) “Department” means the Department of Financial
887 Services.
888 (4) “Property insurance appraisal umpire” or “umpire” means
889 a person selected by the appraisers representing the insurer and
890 the insured, or, if the appraisers cannot agree, by the court,
891 who is charged with resolving issues that the appraisers are
892 unable to agree upon during the course of an appraisal.
893 (5) “Property insurance appraiser” or “appraiser” means the
894 person selected by an insurer or insured to perform an
895 appraisal.
896 626.9965 Qualification for license as a property insurance
897 appraisal umpire.—
898 (1) The department shall issue a license as an umpire to a
899 person who meets the requirements of subsection (2) and is one
900 of the following:
901 (a) A retired county, circuit, or appellate judge.
902 (b) Licensed as an engineer pursuant to chapter 471 or is a
903 retired professional engineer as defined in s. 471.005.
904 (c) Licensed as a general contractor, building contractor,
905 or residential contractor pursuant to part I of chapter 489.
906 (d) Licensed or registered as an architect to engage in the
907 practice of architecture pursuant to part I of chapter 481.
908 (e) A member of The Florida Bar.
909 (f) Licensed as an adjuster pursuant to part VI of chapter
910 626, which license includes the property and casualty lines of
911 insurance. An adjuster must have been licensed for at least 5
912 years as an adjuster before he or she may be licensed as an
913 umpire.
914 (2) An applicant may be licensed to practice in this state
915 as an umpire if the applicant:
916 (a) Is a natural person at least 18 years of age;
917 (b) Is a United Stated citizen or legal alien who possesses
918 work authorization from the United States Bureau of Citizenship
919 and Immigration;
920 (c) Is of good moral character;
921 (d) Has paid the applicable fees specified in s. 624.501;
922 and
923 (e) Has, before the date of the application for licensure,
924 satisfactorily completed education courses approved by the
925 department covering:
926 1. At least 19 hours of insurance claims estimating; and
927 2. At least 5 hours of insurance law, ethics for insurance
928 professionals, disciplinary trends, and case studies.
929
930 A retired county, circuit, or appellate judge is exempt from the
931 continuing education requirements in s. 626.2815 and this
932 subsection.
933 (3) The department may not reject an application solely
934 because the applicant is or is not a member of a given appraisal
935 organization.
936 626.9966 Grounds for refusal, suspension, or revocation of
937 an umpire license or appointment.—The department may deny an
938 application for license or appointment under this part; suspend,
939 revoke, or refuse to renew or continue a license or appointment
940 of an umpire; or suspend or revoke eligibility for licensure or
941 appointment as an umpire if the department finds that one or
942 more of the following applicable grounds exist:
943 (1) Violating a duty imposed upon him or her by law or by
944 the terms of the umpire agreement; aiding, assisting, or
945 conspiring with any other person engaged in any such misconduct
946 and in furtherance thereof; or forming the intent, design, or
947 scheme to engage in such misconduct and committing an overt act
948 in furtherance of such intent, design, or scheme. An umpire
949 commits a violation of this part regardless of whether the
950 victim or intended victim of the misconduct has sustained any
951 damage or loss; the damage or loss has been settled and paid
952 after the discovery of misconduct; or the victim or intended
953 victim is an insurer or customer or a person in a confidential
954 relationship with the umpire or is an identified member of the
955 general public.
956 (2) Having a registration, license, or certification to
957 practice or conduct any regulated profession, business, or
958 vocation revoked, suspended, or encumbered; or having an
959 application for such registration, licensure, or certification
960 to practice or conduct any regulated profession, business, or
961 vocation denied, by this or any other state, any nation, or any
962 possession or district of the United States.
963 (3) Making or filing a report or record, written or oral,
964 which the umpire knows to be false; willfully failing to file a
965 report or record required by state or federal law; willfully
966 impeding or obstructing such filing; or inducing another person
967 to impede or obstruct such filing.
968 (4) Agreeing to serve as an umpire if service is contingent
969 upon the umpire reporting a predetermined amount, analysis, or
970 opinion.
971 (5) Agreeing to serve as an umpire, if the fee to be paid
972 for his or her services is contingent upon the opinion,
973 conclusion, or valuation he or she reaches.
974 (6) Failure of an umpire, without good cause, to
975 communicate within 10 business days after a request for
976 communication from an appraiser.
977 (7) Violation of any ethical standard for umpires specified
978 in s. 626.9967.
979 626.9967 Ethical standards for property insurance appraisal
980 umpires.—
981 (1) FEES AND EXPENSES.—
982 (a) The fees charged by an umpire must be reasonable and
983 consistent with the nature of the case.
984 (b) In determining fees, an umpire:
985 1. Must charge on an hourly basis and may bill only for
986 actual time spent on or allocated for the appraisal.
987 2. May not charge, agree to, or accept as compensation or
988 reimbursement any payment, commission, or fee that is based on a
989 percentage of the value of the claim or that is contingent upon
990 a specified outcome.
991 3. May charge for costs actually incurred, and no other
992 costs.
993 4. May not charge more than $500 if the amount reported by
994 the appraiser for the insurer or by the appraiser for the
995 insured does not exceed $2,500.
996 (c) An appraiser may assign the duty of paying the umpire’s
997 fee to, and the umpire is entitled to receive payment directly
998 from, the insurer and the insured only if the insurer and the
999 insured acknowledge and accept that duty and agree in writing to
1000 be responsible for payment.
1001 (2) MAINTENANCE OF RECORDS.—An umpire shall maintain
1002 records necessary to support charges for services and expenses,
1003 and, upon request, shall provide an accounting of all applicable
1004 charges to the insurer and insured. An umpire shall retain
1005 original or true copies of any contracts engaging his or her
1006 services, appraisal reports, and supporting data assembled and
1007 formulated by the umpire in preparing appraisal reports for at
1008 least 5 years. The umpire shall make the records available to
1009 the department for inspection and copying within 7 business days
1010 after a request. If an appraisal has been the subject of, or has
1011 been admitted as evidence in, a lawsuit, reports and records
1012 related to the appraisal must be retained for at least 2 years
1013 after the date that the trial ends.
1014 (3) ADVERTISING.—An umpire may not engage in marketing
1015 practices that contain false or misleading information. An
1016 umpire shall ensure that any advertisement of his or her
1017 qualifications, services to be rendered, or the appraisal
1018 process are accurate and honest. An umpire may not make claims
1019 of achieving specific outcomes or promises implying favoritism
1020 for the purpose of obtaining business.
1021 (4) INTEGRITY AND IMPARTIALITY.—
1022 (a)1. An umpire may not accept an appraisal unless he or
1023 she can serve competently, promptly commence the appraisal and,
1024 thereafter, devote the time and attention to its completion in
1025 the manner expected by all persons involved in the appraisal.
1026 2. An umpire shall conduct the appraisal process in a
1027 manner that advances the fair and efficient resolution of issues
1028 that arise.
1029 3. An umpire shall deliberate and decide all issues within
1030 the scope of the appraisal, but may not render a decision on any
1031 other issues. An umpire shall decide all matters justly,
1032 exercising independent judgment. An umpire may not delegate his
1033 or her duties to any other person. An umpire who considers the
1034 opinion of an expert does not violate this paragraph. However,
1035 the umpire must disclose the expert’s fees before retaining the
1036 expert.
1037 (b) An umpire may not engage in any business, provide any
1038 service, or perform any act that would compromise his or her
1039 integrity or impartiality.
1040 (5) SKILL AND EXPERIENCE.—An umpire shall decline or
1041 withdraw from an appraisal or request appropriate assistance
1042 when the facts and circumstances of the appraisal prove to be
1043 beyond his or her skill or experience.
1044 (6) GIFTS AND SOLICITATION.—An umpire or any individual or
1045 entity acting on behalf of an umpire may not solicit, accept,
1046 give, or offer to give, directly or indirectly, any gift, favor,
1047 loan, or other item of value in excess of $25 to any individual
1048 who participates in the appraisal, for the purpose of
1049 solicitation or otherwise attempting to procure future work from
1050 any person who participates in the appraisal, or as an
1051 inducement to entering into an appraisal with an umpire. This
1052 subsection does not prevent an umpire from accepting other
1053 appraisals where the appraisers agree upon the umpire or the
1054 court appoints the umpire.
1055 (7) EX PARTE COMMUNICATION.—In any property insurance
1056 appraisal, ex parte communication between an umpire and an
1057 appraiser is prohibited. However, an appraiser may communicate
1058 with another appraiser, if an umpire is not present or does not
1059 receive the ex parte communication.
1060 626.9968 Conflicts of interest.—An insurer or a
1061 policyholder may challenge an umpire’s impartiality and
1062 disqualify the proposed umpire only if:
1063 (1) A familial relationship within the third degree exists
1064 between the umpire and a party or a representative of a party;
1065 (2) The umpire has previously represented a party in a
1066 professional capacity in the same claim or matter involving the
1067 same property;
1068 (3) The umpire has represented another person in a
1069 professional capacity in the same or a substantially related
1070 matter that includes the claim, the same property or an adjacent
1071 property, and the other person’s interests are materially
1072 adverse to the interests of a party;
1073 (4) The umpire has worked as an employer or employee of a
1074 party within the preceding 5 years; or
1075 (5) The umpire has violated s. 626.9966.
1076 Section 30. Section 627.70151, Florida Statutes, is
1077 repealed.
1078 Section 31. For the 2016-2017 fiscal year, the sums of
1079 $24,000 in recurring funds from the Insurance Regulatory Trust
1080 Fund and $73,107 in recurring funds and $39,230 in nonrecurring
1081 funds from the Administrative Trust Fund are appropriated to the
1082 Department of Financial Services, and one full-time equivalent
1083 position with associated salary rate of 47,291 is authorized,
1084 for the purpose of implementing this act.
1085 Section 32. This act applies to all appraisals requested on
1086 or after October 1, 2016.
1087 Section 33. This act shall take effect October 1, 2016.