Senate Bill 0766e1

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    SB 766                                         First Engrossed



  1                      A bill to be entitled

  2         An act relating to insurance; creating s.

  3         626.2816, F.S.; requiring continuing education

  4         course providers and related personnel to be

  5         approved by the Department of Insurance;

  6         providing for the adoption of rules related to

  7         continuing education; amending s. 626.601,

  8         F.S.; providing for the department to

  9         investigate alleged improper conduct by

10         continuing education course providers and

11         related personnel; amending s. 626.681, F.S.;

12         authorizing the Department of Insurance to

13         impose an administrative penalty on continuing

14         education course providers and related

15         personnel under certain circumstances; amending

16         s. 627.7295, F.S.; providing that certain

17         restrictions on issuance of private passenger

18         motor vehicle insurance do not apply if the

19         policy is paid by payroll deduction or by

20         automatic electronic funds transfer; providing

21         an effective date.

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23  Be It Enacted by the Legislature of the State of Florida:

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25         Section 1.  Section 626.2816, Florida Statutes, is

26  created to read:

27         626.2816  Regulation of continuing education for

28  licensees, course providers, instructors, school officials and

29  monitor groups.--

30         (1)  Continuing education course providers,

31  instructors, school officials and monitor groups must be


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    SB 766                                         First Engrossed



  1  approved by the department before offering continuing

  2  education courses pursuant to s. 626.2815.

  3         (2)  The department shall adopt rules establishing

  4  standards for the approval, regulation, and operation of the

  5  continuing education programs and for the discipline of

  6  licensees, course providers, instructors, school officials and

  7  monitor groups. The standards must be designed to ensure that

  8  such course providers, instructors, school officials and

  9  monitor groups have the knowledge, competence and integrity to

10  fulfill the educational objectives of ss. 626.2815,

11  626.869(5), 648.385, and 648.386.

12         (3)  The department shall adopt rules establishing a

13  process by which compliance with the continuing education

14  requirements of ss. 626.2815, 626.869(5), 648.385, and 648.386

15  can be determined, the establishment of a continuing education

16  requirement cycle for licensees, and forms necessary to

17  implement such a process.

18         Section 2.  Subsection (1) of section 626.601, Florida

19  Statutes, is amended to read:

20         626.601  Improper conduct; inquiry; fingerprinting.--

21         (1)  The department may, upon its own motion, and

22  shall, upon a written complaint signed by any interested

23  person and filed with the department, inquire into any alleged

24  improper conduct of any licensed agent, solicitor, adjuster,

25  service representative, managing general agent, continuing

26  education course provider, instructor, school official or

27  monitor group, or claims investigator under this code.

28         Section 3.  Section 626.681, Florida Statutes, is

29  amended to read:

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    SB 766                                         First Engrossed



  1         626.681  Administrative fine in lieu of suspension,

  2  revocation, or refusal of license, or appointment, or

  3  disapproval.--

  4         (1)  Except as to insurance agencies, if the department

  5  finds that one or more grounds exist for the suspension,

  6  revocation, or refusal to renew or continue any license or

  7  appointment issued under this chapter, or disapproval of a

  8  continuing education course provider, instructor, school

  9  official or monitor groups the department may, in its

10  discretion, in lieu of such suspension, revocation, or

11  refusal, or disapproval, and except on a second offense or

12  when such suspension, revocation, or refusal is mandatory,

13  impose upon the licensee, or appointee, course provider,

14  instructor, school official or monitor group an administrative

15  penalty in an amount up to $500 or, if the department has

16  found willful misconduct or willful violation on the part of

17  the licensee, or appointee, course provider, instructor,

18  school official or monitor group up to $2,500.  The

19  administrative penalty may, in the discretion of the

20  department, be augmented by an amount equal to any commissions

21  received by or accruing to the credit of the licensee or

22  appointee in connection with any transaction as to which the

23  grounds for suspension, revocation, or refusal related.

24         (2)  With respect to insurance agencies, if the

25  department finds that one or more grounds exist for the

26  suspension, revocation, or refusal to renew or continue any

27  license issued under this chapter, the department may, in its

28  discretion, in lieu of such suspension, revocation, or

29  refusal, impose upon the licensee an administrative penalty in

30  an amount not to exceed $10,000 per violation.  The

31  administrative penalty may, in the discretion of the


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    SB 766                                         First Engrossed



  1  department, be augmented by an amount equal to any commissions

  2  received by or accruing to the credit of the licensee in

  3  connection with any transaction as to which the grounds for

  4  suspension, revocation, or refusal related.

  5         (3)  The department may allow the licensee, or

  6  appointee, or continuing education course provider,

  7  instructor, school official or monitor group a reasonable

  8  period, not to exceed 30 days, within which to pay to the

  9  department the amount of the penalty so imposed.  If the

10  licensee, or appointee, course provider, instructor, school

11  official or monitor group fails to pay the penalty in its

12  entirety to the department within the period so allowed, the

13  license, or appointments, or approval of that person the

14  licensee or appointee shall stand suspended or revoked or

15  renewal or continuation shall be refused, as the case may be,

16  upon expiration of such period.

17         Section 4.  Subsection (7) of section 627.7295, Florida

18  Statutes, is amended to read:

19         627.7295  Motor vehicle insurance contracts.--

20         (7)  A policy of private passenger motor vehicle

21  insurance or a binder for such a policy may be initially

22  issued in this state only if the insurer or agent has

23  collected from the insured an amount equal to 2 months'

24  premium.  An insurer, agent, or premium finance company may

25  not directly or indirectly take any action resulting in the

26  insured having paid from the insured's own funds an amount

27  less than the 2 months' premium required by this subsection.

28  This subsection applies without regard to whether the premium

29  is financed by a premium finance company or is paid pursuant

30  to a periodic payment plan of an insurer or an insurance

31  agent.  This subsection does not apply if an insured or member


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    SB 766                                         First Engrossed



  1  of the insured's family is renewing or replacing a policy or a

  2  binder for such policy written by the same insurer or a member

  3  of the same insurer group.  This subsection does not apply to

  4  an insurer that issues private passenger motor vehicle

  5  coverage primarily to active duty or former military personnel

  6  or their dependents. This subsection does not apply if the

  7  policy is paid pursuant to a payroll deduction plan or an

  8  automatic electronic funds transfer payment plan. This

  9  subsection and subsection (4) do not apply if an insured has

10  had a policy in effect for at least 6 months, the insured's

11  agent is terminated by the insurer that issued the policy, and

12  the insured obtains coverage on the policy's renewal date with

13  a new company through the terminated agent.

14         Section 5.  This act shall take effect July 1, 1998.

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