Senate Bill 0314c1

    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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