Senate Bill 0314c1
CODING: Words stricken are deletions; words underlined are additions.
Florida Senate - 2000 CS for SB 314
By the Committee on Banking and Insurance; and Senator Rossin
311-1655-00
1 A bill to be entitled
2 An act relating to insurance agencies; amending
3 s. 626.592, F.S.; applying the requirements for
4 insurance agencies to designate a primary agent
5 to foreign insurance agencies, under certain
6 circumstances; amending s. 626.753, F.S.;
7 prohibiting the sharing of insurance
8 commissions with unlicensed persons under
9 certain circumstances; providing an application
10 exception; providing an effective date.
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12 Be It Enacted by the Legislature of the State of Florida:
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14 Section 1. Subsection (10) is added to section
15 626.592, Florida Statutes, to read:
16 626.592 Primary agents.--
17 (10) The provisions of this section also apply to a
18 foreign insurance agency that is owned by a person in this
19 state and that uses unlicensed personnel to initiate customer
20 contact with a nonresident agent. This subsection does not
21 apply to a financial institution as defined in s.
22 655.005(1)(h) and (p) or a parent, subsidiary, or affiliate of
23 such institution.
24 Section 2. Present subsection (4) of section 626.753,
25 Florida Statutes, is renumbered as subsection (5) and a new
26 subsection (4) is added to that section to read:
27 626.753 Sharing commissions; penalty.--
28 (4) An unlicensed person or entity may not share in
29 the commission on the sale of property and casualty insurance
30 by the creation of a foreign partnership, corporation, or
31 other entity that is controlled by an unlicensed person or
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CODING: Words stricken are deletions; words underlined are additions.
Florida Senate - 2000 CS for SB 314
311-1655-00
1 entity within this state and that uses or employs a
2 nonresident agent licensed under s. 626.741 and uses
3 unlicensed personnel to initiate customer contact with a
4 nonresident agent. This subsection does not apply to a
5 financial institution as defined in s. 655.005(1)(h) and (p)
6 or a parent, subsidiary, or affiliate of such institution.
7 Section 3. This act shall take effect July 1, 2000.
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9 STATEMENT OF SUBSTANTIAL CHANGES CONTAINED IN
COMMITTEE SUBSTITUTE FOR
10 Senate Bill 314
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Applies the requirements for insurance agencies to designate a
13 primary agent to foreign (out-of-state) insurance agencies
under certain circumstances.
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Revises the prohibition as to the sharing of insurance
15 commissions by applying the prohibition to the statutory
provision on commission sharing rather than the definition of
16 "insurance agency".
17 Exempts financial institutions from the provisions of the
bill.
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