SENATE AMENDMENT
    Bill No. CS/HB 513
    Amendment No. ___   Barcode 763356
                            CHAMBER ACTION
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11  Senator Atwater moved the following amendment:
12  
13         Senate Amendment (with title amendment) 
14         Between lines 71 and 72,
15  
16  insert:  
17         Section 4.  Section 624.04, Florida Statutes, is
18  amended to read:
19         624.04  "Person" defined.--"Person" includes an
20  individual, insurer, company, association, organization,
21  Lloyds, society, reciprocal insurer or interinsurance
22  exchange, partnership, syndicate, business trust, corporation,
23  agent, general agent, broker, solicitor, service
24  representative, adjuster, and every legal entity.
25         Section 5.  Subsection (2) of section 624.303, Florida
26  Statutes, is amended to read:
27         624.303  Seal; certified copies as evidence.--
28         (2)  All certificates executed by the department, other
29  than licenses of agents, solicitors, or adjusters or similar
30  licenses or permits, shall bear its seal.
31         Section 6.  Paragraph (a) of subsection (2) of section
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SENATE AMENDMENT Bill No. CS/HB 513 Amendment No. ___ Barcode 763356 1 624.313, Florida Statutes, is amended to read: 2 624.313 Publications.-- 3 (2) The department may prepare and have printed and 4 published in pamphlet or book form the following: 5 (a) As needed, questions and answers for the use of 6 persons applying for an examination for licensing as agents or 7 solicitors for property, casualty, surety, health, and 8 miscellaneous insurers. 9 Section 7. Subsection (2) of section 624.317, Florida 10 Statutes, is amended to read: 11 624.317 Investigation of agents, adjusters, 12 administrators, service companies, and others.--If it has 13 reason to believe that any person has violated or is violating 14 any provision of this code, or upon the written complaint 15 signed by any interested person indicating that any such 16 violation may exist, the department shall conduct such 17 investigation as it deems necessary of the accounts, records, 18 documents, and transactions pertaining to or affecting the 19 insurance affairs of any: 20 (2) Insurance agent or, customer representative, or 21 solicitor, subject to the requirements of s. 626.601. 22 Section 8. Section 624.34, Florida Statutes, is 23 amended to read: 24 624.34 Authority of Department of Law Enforcement to 25 accept fingerprints of, and exchange criminal history records 26 with respect to, certain persons.-- 27 (1) The Department of Law Enforcement may accept 28 fingerprints of organizers, incorporators, subscribers, 29 officers, stockholders, directors, or any other persons 30 involved, directly or indirectly, in the organization, 31 operation, or management of: 2 11:46 AM 04/28/03 h0513c1c-25e8j
SENATE AMENDMENT Bill No. CS/HB 513 Amendment No. ___ Barcode 763356 1 (a) Any insurer or proposed insurer transacting or 2 proposing to transact insurance in this state. 3 (b) Any other entity which is examined or investigated 4 or which is eligible to be examined or investigated under the 5 provisions of the Florida Insurance Code. 6 (2) The Department of Law Enforcement may accept 7 fingerprints of individuals who apply for a license as an 8 agent, customer representative, adjuster, service 9 representative, or managing general agent or the fingerprints 10 of the majority owner, sole proprietor, partners, officers, 11 and directors of a corporation or other legal entity that 12 applies for licensure with the department under the provisions 13 of the Florida Insurance Code. 14 (3) The Department of Law Enforcement may, to the 15 extent provided for by federal law, exchange state, 16 multistate, and federal criminal history records with the 17 department and the office for the purpose of the issuance, 18 denial, suspension, or revocation of a certificate of 19 authority, certification, or license to operate in this state. 20 (4) The Department of Law Enforcement may accept 21 fingerprints of any other person required by statute or rule 22 to submit fingerprints to the department or office or any 23 applicant or licensee regulated by the department or office 24 who is required to demonstrate that he or she has not been 25 convicted of or pled guilty or nolo contendere to a felony or 26 a misdemeanor. 27 (5) The Department of Law Enforcement shall, upon 28 receipt of fingerprints from the department or office, submit 29 the fingerprints to the Federal Bureau of Investigation to 30 check federal criminal history records. 31 (6) Statewide criminal records obtained through the 3 11:46 AM 04/28/03 h0513c1c-25e8j
SENATE AMENDMENT Bill No. CS/HB 513 Amendment No. ___ Barcode 763356 1 Department of Law Enforcement, federal criminal records 2 obtained through the Federal Bureau of Investigation, and 3 local criminal records obtained through local law enforcement 4 agencies shall be used by the department and office for the 5 purpose of issuance, denial, suspension, or revocation of 6 certificates of authority, certifications, or licenses issued 7 to operate in this state. 8 Section 9. Paragraph (b) of subsection (6) of section 9 624.501, Florida Statutes, is amended, and subsection (28) is 10 added to that section, to read: 11 624.501 Filing, license, appointment, and 12 miscellaneous fees.--The department shall collect in advance, 13 and persons so served shall pay to it in advance, fees, 14 licenses, and miscellaneous charges as follows: 15 (6) Insurance representatives, property, marine, 16 casualty, and surety insurance. 17 (b) Solicitor's or Customer representative' s original 18 appointment and biennial renewal or continuation thereof: 19 Appointment fee....$42.00 20 State tax....12.00 21 County tax....6.00 22 Total....$60.00 23 (28) Late filing of appointment renewals for agents, 24 adjusters, and other insurance representatives, each 25 appointment....$20.00 26 Section 10. Section 624.504, Florida Statutes, is 27 amended to read: 28 624.504 Liability for state, county tax.-- 29 (1) Each authorized insurer that uses insurance agents 30 in this state shall be liable for and shall pay the state and 31 county taxes required therefor under s. 624.501 or s. 624.505. 4 11:46 AM 04/28/03 h0513c1c-25e8j
SENATE AMENDMENT Bill No. CS/HB 513 Amendment No. ___ Barcode 763356 1 (2) Each insurance agent in this state that uses 2 solicitors shall be liable for and shall pay the state and 3 county taxes required therefor under s. 624.501. 4 Section 11. Subsection (1) of section 624.506, Florida 5 Statutes, is amended to read: 6 624.506 County tax; deposit and remittance.-- 7 (1) The Insurance Commissioner and Treasurer shall 8 deposit in the Agents and Solicitors County Tax Trust Fund all 9 moneys accepted as county tax under this part. She or he shall 10 keep a separate account for all moneys so collected for each 11 county and, after deducting therefrom the service charges 12 provided for in s. 215.20, shall remit the balance to the 13 counties. 14 Section 12. Subsection (1) of section 624.521, Florida 15 Statutes, is amended to read: 16 624.521 Deposit of certain tax receipts; refund of 17 improper payments.-- 18 (1) The Department of Insurance shall promptly deposit 19 in the State Treasury to the credit of the Insurance 20 Commissioner's Regulatory Trust Fund all "state tax" portions 21 of agents' and solicitors' licenses collected under s. 624.501 22 necessary to fund the Division of Insurance Fraud. The balance 23 of the tax shall be credited to the General Fund. All moneys 24 received by the Department of Insurance not in accordance with 25 the provisions of this code or not in the exact amount as 26 specified by the applicable provisions of this code shall be 27 returned to the remitter. The records of the department shall 28 show the date and reason for such return. 29 Section 13. Section 626.015, Florida Statutes, is 30 amended to read: 31 626.015 Definitions.--As used in this part: 5 11:46 AM 04/28/03 h0513c1c-25e8j
SENATE AMENDMENT Bill No. CS/HB 513 Amendment No. ___ Barcode 763356 1 (1) "Adjuster" means a public adjuster as defined in 2 s. 626.854, independent adjuster as defined in s. 626.855, or 3 company employee adjuster as defined in s. 626.856. 4 (2) "Administrative agent" means a life agent or 5 health agent who: 6 (a) Is employed by a full-time licensed life agent or 7 health agent who shall supervise and be accountable for the 8 actions of the administrative agent. 9 (b) Performs primarily administrative functions. 10 (c) Receives no insurance commissions. 11 (d) Does not solicit or transact business outside of 12 the confines of an insurance agency office. 13 (2)(3) "Agent" means a general lines agent, life 14 agent, health agent, or title agent, or all such agents, as 15 indicated by context. The term "agent" includes an insurance 16 producer or producer, but does not include a customer 17 representative, limited customer representative, or service 18 representative. 19 (3)(4) "Appointment" means the authority given by an 20 insurer or employer to a licensee to transact insurance or 21 adjust claims on behalf of an insurer or employer. 22 (4)(5) "Customer representative" means an individual 23 appointed by a general lines agent or agency to assist that 24 agent or agency in transacting the business of insurance from 25 the office of that agent or agency. 26 (5)(6) "Department" means the Department of Insurance. 27 (6)(7) "General lines agent" means an agent 28 transacting any one or more of the following kinds of 29 insurance: 30 (a) Property insurance. 31 (b) Casualty insurance, including commercial liability 6 11:46 AM 04/28/03 h0513c1c-25e8j
SENATE AMENDMENT Bill No. CS/HB 513 Amendment No. ___ Barcode 763356 1 insurance underwritten by a risk retention group, a commercial 2 self-insurance fund as defined in s. 624.462, or a workers' 3 compensation self-insurance fund established pursuant to s. 4 624.4621. 5 (c) Surety insurance. 6 (d) Health insurance, when transacted by an insurer 7 also represented by the same agent as to property or casualty 8 or surety insurance. 9 (e) Marine insurance. 10 (7)(8) "Health agent" means an agent representing a 11 health maintenance organization or, as to health insurance 12 only, an insurer transacting health insurance. 13 (8)(9) "Home state" means the District of Columbia and 14 any state or territory of the United States in which an 15 insurance agent maintains his or her principal place of 16 residence and is licensed to act as an insurance agent. 17 (9)(10) "Insurance agency" means a business location 18 at which an individual, firm, partnership, corporation, 19 association, or other entity, other than an employee of the 20 individual, firm, partnership, corporation, association, or 21 other entity and other than an insurer as defined by s. 624.03 22 or an adjuster as defined by subsection (1), engages in any 23 activity or employs individuals to engage in any activity 24 which by law may be performed only by a licensed insurance 25 agent. 26 (10)(11) "License" means a document issued by the 27 department authorizing a person to be appointed to transact 28 insurance or adjust claims for the kind, line, or class of 29 insurance identified in the document. 30 (11)(12) "Life agent" means an individual representing 31 an insurer as to life insurance and annuity contracts, 7 11:46 AM 04/28/03 h0513c1c-25e8j
SENATE AMENDMENT Bill No. CS/HB 513 Amendment No. ___ Barcode 763356 1 including agents appointed to transact life insurance, 2 fixed-dollar annuity contracts, or variable contracts by the 3 same insurer. 4 (12)(13) "Limited customer representative" means a 5 customer representative appointed by a general lines agent or 6 agency to assist that agent or agency in transacting only the 7 business of private passenger motor vehicle insurance from the 8 office of that agent or agency. A limited customer 9 representative is subject to the Florida Insurance Code in the 10 same manner as a customer representative, unless otherwise 11 specified. 12 (13)(14) "Limited lines insurance" means those 13 categories of business specified in ss. 626.321 and 635.011. 14 (14)(15) "Line of authority" means a kind, line, or 15 class of insurance an agent is authorized to transact. 16 (15)(16)(a) "Managing general agent" means any person 17 managing all or part of the insurance business of an insurer, 18 including the management of a separate division, department, 19 or underwriting office, and acting as an agent for that 20 insurer, whether known as a managing general agent, manager, 21 or other similar term, who, with or without authority, 22 separately or together with affiliates, produces directly or 23 indirectly, or underwrites an amount of gross direct written 24 premium equal to or more than 5 percent of the policyholder 25 surplus as reported in the last annual statement of the 26 insurer in any single quarter or year and also does one or 27 more of the following: 28 1. Adjusts or pays claims. 29 2. Negotiates reinsurance on behalf of the insurer. 30 (b) The following persons shall not be considered 31 managing general agents: 8 11:46 AM 04/28/03 h0513c1c-25e8j
SENATE AMENDMENT Bill No. CS/HB 513 Amendment No. ___ Barcode 763356 1 1. An employee of the insurer. 2 2. A United States manager of the United States branch 3 of an alien insurer. 4 3. An underwriting manager managing all the insurance 5 operations of the insurer pursuant to a contract, who is under 6 the common control of the insurer subject to regulation under 7 ss. 628.801-628.803, and whose compensation is not based on 8 the volume of premiums written. 9 4. Administrators as defined by s. 626.88. 10 5. The attorney in fact authorized by and acting for 11 the subscribers of a reciprocal insurer under powers of 12 attorney. 13 (16)(17) "Resident" means an individual domiciled and 14 residing in this state. 15 (17)(18) "Service representative" means an individual 16 employed by an insurer or managing general agent for the 17 purpose of assisting a general lines agent in negotiating and 18 effecting insurance contracts when accompanied by a licensed 19 general lines agent. A service representative shall not be 20 simultaneously licensed as a general lines agent in this 21 state. This subsection does not apply to life insurance. 22 (18)(19) "Uniform application" means the uniform 23 application of the National Association of Insurance 24 Commissioners for nonresident agent licensing, effective 25 January 15, 2001, or subsequent versions adopted by rule by 26 the department. 27 Section 14. Subsection (1) of section 626.022, Florida 28 Statutes, is amended to read: 29 626.022 Scope of part.-- 30 (1) This part applies as to insurance agents, 31 solicitors, service representatives, adjusters, and insurance 9 11:46 AM 04/28/03 h0513c1c-25e8j
SENATE AMENDMENT Bill No. CS/HB 513 Amendment No. ___ Barcode 763356 1 agencies; as to any and all kinds of insurance; and as to 2 stock insurers, mutual insurers, reciprocal insurers, and all 3 other types of insurers, except that: 4 (a) It does not apply as to reinsurance, except that 5 ss. 626.011-626.031, ss. 626.102-626.181, ss. 626.191-626.211, 6 ss. 626.291-626.301, s. 626.331, ss. 626.342-626.521, ss. 7 626.541-626.591, and ss. 626.601-626.711 shall apply as to 8 reinsurance intermediaries as defined in s. 626.7492. 9 (b) The applicability of this chapter as to fraternal 10 benefit societies shall be as provided in chapter 632. 11 (c) It does not apply to a bail bond agent, as defined 12 in s. 648.25, except as provided in chapter 648 or chapter 13 903. 14 (d) This part does not apply to a certified public 15 accountant licensed under chapter 473 who is acting within the 16 scope of the practice of public accounting, as defined in s. 17 473.302, provided that the activities of the certified public 18 accountant are limited to advising a client of the necessity 19 of obtaining insurance, the amount of insurance needed, or the 20 line of coverage needed, and provided that the certified 21 public accountant does not directly or indirectly receive or 22 share in any commission or, referral fee, or solicitor's fee. 23 Section 15. Paragraph (a) of subsection (7) of section 24 626.112, Florida Statutes, is amended to read: 25 626.112 License and appointment required; agents, 26 customer representatives, adjusters, insurance agencies, 27 service representatives, managing general agents.-- 28 (7)(a) No individual, firm, partnership, corporation, 29 association, or any other entity shall act in its own name or 30 under a trade name, directly or indirectly, as an insurance 31 agency, when required to be licensed by this subsection, 10 11:46 AM 04/28/03 h0513c1c-25e8j
SENATE AMENDMENT Bill No. CS/HB 513 Amendment No. ___ Barcode 763356 1 unless it complies with s. 626.172 with respect to possessing 2 an insurance agency license for each place of business at 3 which it engages in any activity which may be performed only 4 by a licensed insurance agent or solicitor. 5 Section 16. Paragraph (a) of subsection (2) and 6 subsection (5) of section 626.171, Florida Statutes, are 7 amended to read: 8 626.171 Application for license.-- 9 (2) In the application, the applicant shall set forth: 10 (a) His or her full name, age, social security number, 11 residence address, and place of business address, and mailing 12 address. 13 (5) An application for a license as an agent, customer 14 representative, adjuster, insurance agency, service 15 representative, managing general agent, or reinsurance 16 intermediary must be accompanied by a set of the individual 17 applicant's fingerprints, or, if the applicant is not an 18 individual, by a set of the fingerprints of the sole 19 proprietor, majority owner, partners, officers, and directors, 20 on a form adopted by rule of the department and accompanied by 21 the fingerprint processing fee set forth in s. 624.501. 22 Fingerprints shall be used to investigate the applicant's 23 qualifications pursuant to s. 626.201. The fingerprints shall 24 be taken certified by a law enforcement agency or other 25 department-approved entity officer. 26 Section 17. Subsection (1) of section 626.175, Florida 27 Statutes, is amended to read: 28 626.175 Temporary licensing.-- 29 (1) The department may issue a nonrenewable temporary 30 license for a period not to exceed 6 months authorizing 31 appointment of a general lines insurance agent or a life 11 11:46 AM 04/28/03 h0513c1c-25e8j
SENATE AMENDMENT Bill No. CS/HB 513 Amendment No. ___ Barcode 763356 1 agent, or an industrial fire or burglary agent, subject to the 2 conditions described in this section. The fees paid for a 3 temporary license and appointment shall be as specified in s. 4 624.501. Fees paid shall not be refunded after a temporary 5 license has been issued. 6 (a) An applicant for a temporary license must be: 7 1. A natural person at least 18 years of age. 8 2. A United States citizen or legal alien who 9 possesses work authorization from the United States 10 Immigration and Naturalization Service. 11 (b)(a)1. In the case of a general lines agent, the 12 department may issue a temporary license to an employee, a 13 family member, a business associate, or a personal 14 representative of a licensed general lines agent for the 15 purpose of continuing or winding up the business affairs of 16 the agent or agency in the event the licensed agent has died 17 or become unable to perform his or her duties because of 18 military service or illness or other physical or mental 19 disability, subject to the following conditions: 20 a. No other individual connected with the agent's 21 business may be licensed as a general lines agent. 22 b. The proposed temporary licensee shall be qualified 23 for a regular general lines agent license under this code 24 except as to residence, examination, education, or experience. 25 c. Application for the temporary license shall have 26 been made by the applicant upon statements and affidavit filed 27 with the department on forms prescribed and furnished by the 28 department. 29 d. Under a temporary license and appointment, the 30 licensee shall not represent any insurer not last represented 31 by the agent being replaced and shall not be licensed or 12 11:46 AM 04/28/03 h0513c1c-25e8j
SENATE AMENDMENT Bill No. CS/HB 513 Amendment No. ___ Barcode 763356 1 appointed as to any additional kind, line, or class of 2 insurance other than those covered by the last existing agency 3 appointments of the replaced agent. If an insurer withdraws 4 from the agency during the temporary license period, the 5 temporary licensee may be appointed by another similar insurer 6 but only for the period remaining under the temporary license. 7 2. A regular general lines agent license may be issued 8 to a temporary licensee upon meeting the qualifications for a 9 general lines agent license under s. 626.731. 10 (c)(b) In the case of a life agent, the department may 11 issue a temporary license: 12 1. To the executor or administrator of the estate of a 13 deceased individual licensed and appointed as a life agent at 14 the time of death; 15 2. To a surviving next of kin of the deceased 16 individual, if no administrator or executor has been appointed 17 and qualified; however, any license and appointment under this 18 subparagraph shall be canceled upon issuance of a license to 19 an executor or administrator under subparagraph 1.; or 20 3. To an individual otherwise qualified to be licensed 21 as an agent who has completed the educational or training 22 requirements prescribed in s. 626.7851 and has successfully 23 sat for the required examination prior to termination of such 24 6-month period. The department may issue this temporary 25 license only in the case of a life agent to represent an 26 insurer of the industrial or ordinary-combination class. 27 (d)(c) In the case of a limited license authorizing 28 appointment as an industrial fire or burglary agent, the 29 department may issue a temporary license to an individual 30 otherwise qualified to be licensed as an agent who has 31 completed the educational or training requirements prescribed 13 11:46 AM 04/28/03 h0513c1c-25e8j
SENATE AMENDMENT Bill No. CS/HB 513 Amendment No. ___ Barcode 763356 1 in s. 626.732 and has successfully sat for the required 2 examination prior to termination of the 6-month period. 3 Section 18. Section 626.202, Florida Statutes, is 4 amended to read: 5 626.202 Fingerprinting requirements.--If there is a 6 change in ownership or control of any entity licensed under 7 this chapter, or if a new partner, officer, or director is 8 employed or appointed, a set of fingerprints of the new owner, 9 partner, officer, or director must be filed with the 10 department within 30 days after the change. The acquisition of 11 10 percent or more of the voting securities of a licensed 12 entity is considered a change of ownership or control. The 13 fingerprints must be taken certified by a law enforcement 14 agency or other department-approved entity officer and be 15 accompanied by the fingerprint processing fee in s. 624.501. 16 Section 19. Section 626.201, Florida Statutes, is 17 amended to read: 18 626.201 Investigation.-- 19 (1) The department may propound any reasonable 20 interrogatories in addition to those contained in the 21 application, to any applicant for license or appointment, or 22 on any renewal, reinstatement, or continuation thereof, 23 relating to his or her qualifications, residence, prospective 24 place of business, and any other matter which, in the opinion 25 of the department, is deemed necessary or advisable for the 26 protection of the public and to ascertain the applicant's 27 qualifications. 28 (2) The department may, upon completion of the 29 application, make such further investigation as it may deem 30 advisable of the applicant's character, experience, 31 background, and fitness for the license or appointment. Such 14 11:46 AM 04/28/03 h0513c1c-25e8j
SENATE AMENDMENT Bill No. CS/HB 513 Amendment No. ___ Barcode 763356 1 an inquiry or investigation shall be in addition to any 2 examination required to be taken by the applicant as 3 hereinafter in this chapter provided. 4 (3) An inquiry or investigation of the applicant' s 5 qualifications, character, experience, background, and fitness 6 must include submission of the applicant's fingerprints to the 7 Department of Law Enforcement and the Federal Bureau of 8 Investigation and consideration of any state criminal records, 9 federal criminal records, or local criminal records obtained 10 from these agencies or from local law enforcement agencies. 11 Section 20. Paragraphs (e), (f), (g), and (k) of 12 subsection (2) of section 626.221, Florida Statutes, are 13 amended to read: 14 626.221 Examination requirement; exemptions.-- 15 (2) However, no such examination shall be necessary in 16 any of the following cases: 17 (e) An individual who qualified as a managing general 18 agent, service representative, customer representative, or 19 all-lines adjuster by passing a general lines agent's 20 examination and subsequently was licensed and appointed and 21 has been actively engaged in all lines of property and 22 casualty insurance may, upon filing an application for 23 appointment, be licensed and appointed as a general lines 24 agent for the same kinds of business without taking another 25 examination if he or she holds any such currently effective 26 license referred to in this paragraph or held the license 27 within 48 24 months prior to the date of filing the 28 application with the department. 29 (f) A person who has been licensed and appointed by 30 the department as a public adjuster or independent adjuster, 31 or licensed and appointed either as an agent or company 15 11:46 AM 04/28/03 h0513c1c-25e8j
SENATE AMENDMENT Bill No. CS/HB 513 Amendment No. ___ Barcode 763356 1 adjuster as to all property, casualty, and surety insurances, 2 may be licensed and appointed as a company adjuster as to any 3 of such insurances, or as an independent adjuster or public 4 adjuster, without additional written examination if an 5 application for appointment is filed with the department 6 within 48 24 months following the date of cancellation or 7 expiration of the prior appointment. 8 (g) A person who has been licensed by the department 9 as an adjuster for motor vehicle, property and casualty, 10 workers' compensation, and health insurance may be licensed as 11 such an adjuster without additional written examination if his 12 or her application for appointment is filed with the 13 department within 48 24 months after cancellation or 14 expiration of the prior license. 15 (k) An applicant for license as a customer 16 representative who has the designation of Accredited Advisor 17 in Insurance (AAI) from the Insurance Institute of America, 18 the designation of Certified Insurance Counselor (CIC) from 19 the Society of Certified Insurance Service Counselors, the 20 designation of Accredited Customer Service Representative 21 (ACSR) from the Independent Insurance Agents of America, the 22 designation of Certified Professional Service Representative 23 (CPSR) from the National Foundation for Certified Professional 24 Service Representatives Association of Professional Insurance 25 Agents, the designation of Certified Insurance Service 26 Representative (CISR) from the Society of Certified Insurance 27 Service Representatives. Also, an applicant for license as a 28 customer representative who has the designation of Certified 29 Customer Service Representative (CCSR) from the Florida 30 Association of Insurance Agents, or the designation of 31 Registered Customer Service Representative (RCSR) from a 16 11:46 AM 04/28/03 h0513c1c-25e8j
SENATE AMENDMENT Bill No. CS/HB 513 Amendment No. ___ Barcode 763356 1 regionally accredited postsecondary institution in this state, 2 or the designation of Professional Customer Service 3 Representative (PCSR) from the Professional Career Institute, 4 whose curriculum has been approved by the department and whose 5 curriculum includes comprehensive analysis of basic property 6 and casualty lines of insurance and testing at least equal to 7 that of standard department testing for the customer 8 representative license. The department shall adopt rules 9 establishing standards for the approval of curriculum. 10 Section 21. Paragraphs (a), (c), and (d) of subsection 11 (3), paragraphs (a), (b), (c), (d),(g), (h), and (i) of 12 subsection (4), and paragraph (b) of subsection (6) of section 13 626.2815, Florida Statutes, are amended to read: 14 626.2815 Continuing education required; application; 15 exceptions; requirements; penalties.-- 16 (3)(a) Each person subject to the provisions of this 17 section must, except as set forth in paragraphs (b) and (c), 18 complete a minimum of 24 28 hours of continuing education 19 courses every 2 years in basic or higher-level courses 20 prescribed by this section or in other courses approved by the 21 department. Each person subject to the provisions of this 22 section must complete, as part of his or her their required 23 number of continuing education hours, 3 hours of continuing 24 education, approved by the department, every 2 years on the 25 subject matter of ethics and a minimum of 2 hours of 26 continuing education, approved by the department, every 2 27 years on the subject matter of unauthorized entities engaging 28 in the business of insurance. The scope of the topic of 29 unauthorized entities shall include the Florida Nonprofit 30 Multiple Employer Welfare Arrangement Act and the Employee 31 Retirement Income Security Act, 29 U.S.C. ss. 1001 et seq., as 17 11:46 AM 04/28/03 h0513c1c-25e8j
SENATE AMENDMENT Bill No. CS/HB 513 Amendment No. ___ Barcode 763356 1 it relates to the provision of health insurance by employers 2 to their employees and the regulation thereof. 3 (c) A licensee who has been licensed for 25 years or 4 more and is a CLU or a CPCU or has a Bachelor of Science 5 degree in risk management or insurance with evidence of 18 or 6 more semester hours in upper-level insurance-related courses 7 must complete 12 14 hours of continuing education courses 8 every 2 years in courses prescribed by this section or in 9 other courses approved by the department, except, for 10 compliance periods beginning January 1, 1998, the licensees 11 described in this paragraph shall be required to complete 10 12 hours of continuing education courses every 2 years. 13 (d) Any person who holds a license as a customer 14 representative, limited customer representative, 15 administrative agent, title agent, motor vehicle physical 16 damage and mechanical breakdown insurance agent, crop or hail 17 and multiple-peril crop insurance agent, or as an industrial 18 fire insurance or burglary insurance agent and who is not a 19 licensed life or health insurance agent, shall be required to 20 complete 12 14 hours of continuing education courses every 2 21 years, except, for compliance periods beginning on January 1, 22 1998, each licensee subject to this paragraph shall be 23 required to complete 10 hours of continuing education courses 24 every 2 years. 25 (4) The following courses may be completed in order to 26 meet the continuing education course requirements: 27 (a) Any part of the Life Underwriter Training Council 28 Life Course Curriculum: 24 28 hours; Health Course: 12 14 29 hours. 30 (b) Any part of the American College "CLU" diploma 31 curriculum: 24 28 hours. 18 11:46 AM 04/28/03 h0513c1c-25e8j
SENATE AMENDMENT Bill No. CS/HB 513 Amendment No. ___ Barcode 763356 1 (c) Any part of the Insurance Institute of America's 2 program in general insurance: 12 14 hours. 3 (d) Any part of the American Institute for Property 4 and Liability Underwriters' Chartered Property Casualty 5 Underwriter (CPCU) professional designation program: 24 28 6 hours. 7 (g) In the case of title agents, completion of the 8 Certified Land Closer(CLC) professional designation program 9 and receipt of the designation: 24 28 hours. 10 (h) In the case of title agents, completion of the 11 Certified Land Searcher(CLS) professional designation program 12 and receipt of the designation: 24 28 hours. 13 (i) Any insurance-related course which is approved by 14 the department and taught by an accredited college or 15 university per credit hour granted: 12 14 hours. 16 (6) 17 (b) The board members shall be appointed as follows: 18 1. Seven members representing agents of which at least 19 one must be a representative from each of the following 20 organizations: the Florida Association of Insurance Agents; 21 the Florida Association of Insurance and Financial Advisors 22 Life Underwriters; the Professional Insurance Agents of 23 Florida, Inc.; the Florida Association of Health Underwriters; 24 the Specialty Agents' Association; the Latin American Agents' 25 Association; and the National Association of Insurance Women. 26 Such board members must possess at least a bachelor's degree 27 or higher from an accredited college or university with major 28 coursework in insurance, risk management, or education or 29 possess the designation of CLU, CPCU, CHFC, CFP, AAI, or CIC. 30 In addition, each member must possess 5 years of classroom 31 instruction experience or 5 years of experience in the 19 11:46 AM 04/28/03 h0513c1c-25e8j
SENATE AMENDMENT Bill No. CS/HB 513 Amendment No. ___ Barcode 763356 1 development or design of educational programs or 10 years of 2 experience as a licensed resident agent. Each organization may 3 submit to the department a list of recommendations for 4 appointment. If one organization does not submit a list of 5 recommendations, the Insurance Commissioner may select more 6 than one recommended person from a list submitted by other 7 eligible organizations. 8 2. Two members representing insurance companies at 9 least one of whom must represent a Florida Domestic Company 10 and one of whom must represent the Florida Insurance Council. 11 Such board members must be employed within the training 12 department of the insurance company. At least one such member 13 must be a member of the Society of Insurance Trainers and 14 Educators. 15 3. One member representing the general public who is 16 not directly employed in the insurance industry. Such board 17 member must possess a minimum of a bachelor's degree or higher 18 from an accredited college or university with major coursework 19 in insurance, risk management, training, or education. 20 4. One member, appointed by the Insurance 21 Commissioner, who represents the department. 22 Section 22. Section 626.2816, Florida Statutes, is 23 amended to read: 24 626.2816 Regulation of continuing education for 25 licensees, course providers, instructors, school officials, 26 and monitor groups.-- 27 (1) Continuing education course providers, 28 instructors, school officials, and monitor groups must be 29 approved by the department before offering continuing 30 education courses pursuant to s. 626.2815 or s. 626.869. 31 (2) The department shall adopt rules establishing 20 11:46 AM 04/28/03 h0513c1c-25e8j
SENATE AMENDMENT Bill No. CS/HB 513 Amendment No. ___ Barcode 763356 1 standards for the approval, regulation, and operation of the 2 continuing education programs and for the discipline of 3 licensees, course providers, instructors, school officials, 4 and monitor groups. The standards must be designed to ensure 5 that such course providers, instructors, school officials, and 6 monitor groups have the knowledge, competence, and integrity 7 to fulfill the educational objectives of ss. 626.2815, 8 626.869(5), 648.385, and 648.386. 9 (3) The department shall adopt rules establishing a 10 process by which compliance with the continuing education 11 requirements of ss. 626.2815, 626.869(5), 648.385, and 648.386 12 can be determined, the establishment of a continuing education 13 compliance period requirement cycle for licensees, and forms 14 necessary to implement such a process. 15 Section 23. Subsection (3) of section 626.2817, 16 Florida Statutes, is amended to read: 17 626.2817 Regulation of course providers, instructors, 18 school officials, and monitor groups involved in prelicensure 19 education for insurance agents and other licensees.-- 20 (3) The department shall adopt rules to establish a 21 process for determining compliance with the prelicensure 22 requirements of this chapter and chapter 648 and shall 23 establish a prelicensure cycle for insurance agents and other 24 licensees. The department shall adopt rules prescribing the 25 forms necessary to administer the prelicensure requirements. 26 Section 24. Subsections (5) and (6) are added to 27 section 626.311, Florida Statutes, to read: 28 626.311 Scope of license.-- 29 (5) At any time while a license is in force, an 30 insurer may apply to the department on behalf of the licensee 31 for an appointment. Upon receipt of the appointment 21 11:46 AM 04/28/03 h0513c1c-25e8j
SENATE AMENDMENT Bill No. CS/HB 513 Amendment No. ___ Barcode 763356 1 application and appointment taxes and fees, the department may 2 issue the additional appointment without further investigation 3 concerning the applicant. 4 (6) The department may contract with other persons to 5 administer the appointment process. 6 Section 25. Paragraphs (a) and (e) of subsection (1) 7 and subsections (2) and (3) of section 626.321, Florida 8 Statutes, are amended to read: 9 626.321 Limited licenses.-- 10 (1) The department shall issue to a qualified 11 individual, or a qualified individual or entity under 12 paragraphs (c), (d), (e), and (i), a license as agent 13 authorized to transact a limited class of business in any of 14 the following categories: 15 (a) Motor vehicle physical damage and mechanical 16 breakdown insurance.--License covering insurance against only 17 the loss of or damage to any motor vehicle which is designed 18 for use upon a highway, including trailers and semitrailers 19 designed for use with such vehicles. Such license also covers 20 insurance against the failure of an original or replacement 21 part to perform any function for which it was designed. The 22 applicant for such a license shall pass a written examination 23 covering motor vehicle physical damage insurance and 24 mechanical breakdown insurance. No individual while so 25 licensed shall hold a license as an agent or solicitor as to 26 any other or additional kind or class of insurance coverage 27 except as to a limited license for credit life and disability 28 insurances as provided in paragraph(e). 29 (e) Credit life or disability insurance.--License 30 covering only credit life or disability insurance. The license 31 may be issued only to an individual employed by a life or 22 11:46 AM 04/28/03 h0513c1c-25e8j
SENATE AMENDMENT Bill No. CS/HB 513 Amendment No. ___ Barcode 763356 1 health insurer as an officer or other salaried or commissioned 2 representative, to an individual employed by or associated 3 with a lending or financial institution or creditor, or to a 4 lending or financial institution or creditor, and may 5 authorize the sale of such insurance only with respect to 6 borrowers or debtors of such lending or financing institution 7 or creditor. However, only the individual or entity whose tax 8 identification number is used in receiving or is credited with 9 receiving the commission from the sale of such insurance shall 10 be the licensed agent of the insurer. No individual while so 11 licensed shall hold a license as an agent or solicitor as to 12 any other or additional kind or class of life or health 13 insurance coverage. An entity holding a limited license under 14 this paragraph is also authorized to sell credit insurance and 15 credit property insurance. An entity applying for a license 16 under this section: 17 1. Is required to submit only one application for a 18 license under s. 626.171. The requirements of s. 626.171(5) 19 shall only apply to the officers and directors of the entity 20 submitting the application. 21 2. Is required to obtain a license for each office, 22 branch office, or place of business making use of the entity's 23 business name by applying to the department for the license on 24 a simplified form developed by rule of the department for this 25 purpose. 26 3. Is not required to pay any additional application 27 fees for a license issued to the offices or places of business 28 referenced in subsection(2), but is required to pay the 29 license fee as prescribed in s. 624.501, be appointed under s. 30 626.112, and pay the prescribed appointment fee under s. 31 624.501. The license obtained under this paragraph shall be 23 11:46 AM 04/28/03 h0513c1c-25e8j
SENATE AMENDMENT Bill No. CS/HB 513 Amendment No. ___ Barcode 763356 1 posted at the business location for which it was issued so as 2 to be readily visible to prospective purchasers of such 3 coverage. 4 (2) An entity applying for a license under this 5 section is required to: 6 (a) Submit only one application for a license under s. 7 626.171. The requirements of s. 626.171(5) shall only apply to 8 the officers and directors of the entity submitting the 9 application. 10 (b) Obtain a license for each office, branch office, 11 or place of business making use of the entity's business name 12 by applying to the department for the license on a simplified 13 application form developed by rule of the department for this 14 purpose. 15 (c) Pay the applicable fees for a license as 16 prescribed in s. 624.501, be appointed under s. 626.112, and 17 pay the prescribed appointment fee under s. 624.501. A 18 licensed and appointed entity shall be directly responsible 19 and accountable for all acts of the licensee's employees. 20 (3)(2) The limitations of any license issued under 21 this section shall be expressed therein. The licensee shall 22 have a separate and additional appointment as to each insurer 23 represented. 24 (4)(3) Except as otherwise expressly provided, an 25 individual applying for or holding a limited license shall be 26 subject to the same applicable requirements and 27 responsibilities as apply to general lines agents in general, 28 if licensed as to motor vehicle physical damage and mechanical 29 breakdown insurance, credit property insurance, industrial 30 fire insurance or burglary insurance, in-transit and storage 31 personal property insurance, communications equipment property 24 11:46 AM 04/28/03 h0513c1c-25e8j
SENATE AMENDMENT Bill No. CS/HB 513 Amendment No. ___ Barcode 763356 1 insurance or communications equipment inland marine insurance, 2 baggage and motor vehicle excess liability insurance, or 3 credit insurance; or as apply to life agents or health agents 4 in general, as the case may be, if licensed as to personal 5 accident insurance or credit life or credit disability 6 insurance. 7 Section 26. Section 626.322, Florida Statutes, is 8 amended to read: 9 626.322 License, appointment; certain military 10 installations.--A natural person, not a resident of this 11 state, may be licensed and appointed to represent an 12 authorized life insurer domiciled in this state or an 13 authorized foreign life insurer which maintains a regional 14 home office in this state, provided such person represents 15 such insurer exclusively at a United States military 16 installation located in a foreign country. The department may, 17 upon request of the applicant and the insurer on application 18 forms furnished by the department and upon payment of fees as 19 prescribed in s. 624.501, issue a license and appointment to 20 such person. By authorizing the effectuation of an appointment 21 for a license, the insurer is thereby certifying shall certify 22 to the department that the applicant has the necessary 23 training to hold himself or herself out as a life insurance 24 representative, and the insurer shall further certify that it 25 is willing to be bound by the acts of such applicant within 26 the scope of his or her employment. Appointments shall be 27 continued as prescribed in s. 626.381 and upon payment of a 28 fee as prescribed in s. 624.501, unless sooner terminated. 29 Such fees received shall be credited to the Insurance 30 Commissioner's Regulatory Trust Fund as provided for in s. 31 624.523. 25 11:46 AM 04/28/03 h0513c1c-25e8j
SENATE AMENDMENT Bill No. CS/HB 513 Amendment No. ___ Barcode 763356 1 Section 27. Section 626.341, Florida Statutes, is 2 amended to read: 3 626.341 Additional appointments; general lines, life, 4 and health agents.-- 5 (1) At any time while a licensee's license is in 6 force, an insurer may apply to the department or person 7 designated by the department to administer the appointment 8 process on behalf of a licensee for an additional appointment 9 as general lines agent or life or health agent for an 10 additional insurer or insurers. The application for 11 appointment shall set forth all information the department may 12 require. Upon receipt of the appointment and payment of the 13 applicable appointment taxes and fees, the department may 14 issue the additional appointment without, in its discretion, 15 further investigation concerning the applicant. 16 (2) A life or health agent with an appointment in 17 force may solicit applications for policies of insurance on 18 behalf of an insurer with respect to which he or she is not an 19 appointed life or health agent, unless otherwise provided by 20 contract, if such agent simultaneously with the submission to 21 such insurer of the application for insurance solicited by him 22 or her requests the insurer to appoint him or her as agent. 23 However, no commissions shall be paid by such insurer to the 24 agent until such time as an additional appointment with 25 respect to such insurer has been received by the department or 26 person designated by the department to administer the 27 appointment process pursuant to the provisions of subsection 28 (1). 29 Section 28. Section 626.371, Florida Statutes, is 30 amended to read: 31 626.371 Payment of fees, taxes for appointment period 26 11:46 AM 04/28/03 h0513c1c-25e8j
SENATE AMENDMENT Bill No. CS/HB 513 Amendment No. ___ Barcode 763356 1 without appointment.-- 2 (1) All initial appointments shall be submitted to the 3 department on a monthly basis no later than 45 days after the 4 date of appointment and become effective on the date requested 5 on the appointment form. 6 (2) If, upon application and qualification for an 7 initial or renewal appointment and such investigation as the 8 department may make, it appears to the department that an 9 individual who was formerly licensed or is currently licensed 10 but not properly appointed to represent an insurer or employer 11 and who has been actively engaged or is currently actively 12 engaged as such an appointee, but without being appointed as 13 required, the department may, if it finds that such failure to 14 be appointed was an inadvertent error on the part of the 15 insurer or employer so represented, nevertheless issue or 16 authorize the issuance of the appointment as applied for but 17 subject to the condition that, before the appointment is 18 issued, all fees and taxes which would have been due had the 19 applicant been so appointed during such current and prior 20 periods, together with applicable fees pursuant to s. 624.501 21 a continuation fee for such current and prior periods terms of 22 appointment, shall be paid to the department. 23 (3)(a) Failure to notify the department within the 24 required time period shall result in the appointing entity 25 being assessed a delinquent fee of $250 per appointee. 26 Delinquent fees shall be paid by the appointing entity and may 27 not be charged to the appointee. 28 (b) Failure to timely renew an appointment by an 29 appointing entity prior to the expiration date of the 30 appointment shall result in the appointing entity being 31 assessed late filling, continuation, and reinstatement fees as 27 11:46 AM 04/28/03 h0513c1c-25e8j
SENATE AMENDMENT Bill No. CS/HB 513 Amendment No. ___ Barcode 763356 1 prescribed in s. 624.501. Such fees must be paid by the 2 appointing entity and cannot be charged back to the appointee. 3 Section 29. Subsections (3) and (4) of section 4 626.381, Florida Statutes, are amended and a new subsection 5 (7) is added to that section to read: 6 626.381 Renewal, continuation, reinstatement, or 7 termination of appointment.-- 8 (3) Renewal of an appointment which is received on a 9 date set forth by the department or person designated by the 10 department to administer the appointment process prior to the 11 expiration of an appointment in the licensee's birth month or 12 license issue date, whichever applies, in the succeeding month 13 may be renewed by the department without penalty and shall be 14 effective as of the first day of the month succeeding the 15 month in which the appointment would have expired. 16 (4) Renewal of an appointment which is received by the 17 department or person designated by the department to 18 administer the appointment process after the renewal date set 19 by the department may be accepted and effectuated by the 20 department in its discretion if the an additional appointment, 21 late filing, continuation, and reinstatement fee accompanies 22 the renewal request pursuant to s. 624.501. Late filing fees 23 shall be paid by the appointing entity and may not be charged 24 to the appointee. 25 (7) The department may adopt rules to implement this 26 section. 27 Section 30. Subsections (1), (2), and (3) of section 28 626.451, Florida Statutes, are amended, and subsection (7) is 29 added to that section, to read: 30 626.451 Appointment of agent or other 31 representative.-- 28 11:46 AM 04/28/03 h0513c1c-25e8j
SENATE AMENDMENT Bill No. CS/HB 513 Amendment No. ___ Barcode 763356 1 (1) Each appointing entity or person designated by the 2 department to administer the appointment process appointing an 3 agent, adjuster, service representative, customer 4 representative, or managing general agent in this state shall 5 file the appointment with the department and, at the same 6 time, pay the applicable appointment fee and taxes. Every 7 appointment shall be subject to the prior issuance of the 8 appropriate agent's, adjuster's, service representative's, 9 customer representative's, or managing general agent's 10 license. 11 (2) By authorizing the effectuation of an appointment 12 for a licensee, the appointing entity is thereby certifying to 13 the department that an investigation of the licensee has been 14 made As a part of each appointment there shall be a certified 15 statement or affidavit of an appropriate officer or official 16 of the appointing entity stating what investigation the 17 appointing entity has made concerning the proposed appointee 18 and his or her background and that in the appointing entity's 19 opinion and to the best of its knowledge and belief, the 20 licensee is of good as to the moral character and reputation, 21 and is fit to engage in the insurance business. The appointing 22 entity shall provide to the department fitness, and reputation 23 of the proposed appointee and any other information the 24 department may reasonably require relative to the proposed 25 appointee. 26 (3) By authorizing the effectuation of In the 27 appointment of an agent, adjuster, service representative, 28 customer representative, or managing general agent the 29 appointing entity is thereby certifying to the department 30 shall also certify therein that it is willing to be bound by 31 the acts of the agent, adjuster, service representative, 29 11:46 AM 04/28/03 h0513c1c-25e8j
SENATE AMENDMENT Bill No. CS/HB 513 Amendment No. ___ Barcode 763356 1 customer representative, or managing general agent, within the 2 scope of the licensee's his or her employment. 3 (7) Each licensee shall advise the department in 4 writing within 30 days after having been found guilty of or 5 having pleaded guilty or nolo contendere to a felony or a 6 crime punishable by imprisonment of 1 year or more under the 7 laws of the United States, any state of the United States, or 8 any other country, without regard to whether a judgment of 9 conviction has been entered by the court having jurisdiction 10 of such cases. 11 Section 31. Section 626.461, Florida Statutes, is 12 amended to read: 13 626.461 Continuation of appointment of agent or other 14 representative.--Subject to renewal or continuation by the 15 appointing entity, the appointment of the agent, adjuster, 16 solicitor, service representative, customer representative, or 17 managing general agent shall continue in effect until the 18 person's license is revoked or otherwise terminated, unless 19 written notice of earlier termination of the appointment is 20 filed with the department or person designated by the 21 department to administer the appointment process by either the 22 appointing entity or the appointee. 23 Section 32. Subsections (4) and (5) of section 24 626.471, Florida Statutes, are amended to read: 25 626.471 Termination of appointment.-- 26 (4) An appointee may terminate the appointment at any 27 time by giving written or electronic notice thereof to the 28 appointing entity, and filing a copy of the notice with the 29 department, or person designated by the department to 30 administer the appointment process. The department shall 31 immediately terminate the appointment and notify the 30 11:46 AM 04/28/03 h0513c1c-25e8j
SENATE AMENDMENT Bill No. CS/HB 513 Amendment No. ___ Barcode 763356 1 appointing entity of such termination. Such termination shall 2 be subject to the appointee's contract rights, if any. 3 (5) Upon receiving notice of termination, the 4 department or person designated by the department to 5 administer the appointment process shall terminate the 6 appointment. 7 Section 33. Subsection (5) of section 626.601, Florida 8 Statutes, is amended to read: 9 626.601 Improper conduct; inquiry; fingerprinting.-- 10 (5) If the department, after investigation, has reason 11 to believe that a licensee may have been found guilty of or 12 pleaded guilty or nolo contendere to a felony or a crime 13 related to the business of insurance in this or any other 14 state or jurisdiction, the department may require the licensee 15 to file with the department a complete set of his or her 16 fingerprints, which shall be accompanied by the fingerprint 17 processing fee set forth in s. 624.501. The fingerprints shall 18 be taken certified by an authorized law enforcement agency or 19 other department-approved entity officer. 20 Section 34. Paragraph (b) of subsection (1) of section 21 626.731, Florida Statutes, is amended to read: 22 626.731 Qualifications for general lines agent's 23 license.-- 24 (1) The department shall not grant or issue a license 25 as general lines agent to any individual found by it to be 26 untrustworthy or incompetent or who does not meet each of the 27 following qualifications: 28 (b) The applicant is a United States citizen or legal 29 alien who possesses work authorization from the United States 30 Immigration and Naturalization Service and is a bona fide 31 resident of this state. An individual who is a bona fide 31 11:46 AM 04/28/03 h0513c1c-25e8j
SENATE AMENDMENT Bill No. CS/HB 513 Amendment No. ___ Barcode 763356 1 resident of this state shall be deemed to meet the residence 2 requirement of this paragraph, notwithstanding the existence 3 at the time of application for license of a license in his or 4 her name on the records of another state as a resident 5 licensee of such other state, if the applicant furnishes a 6 letter of clearance satisfactory to the department that the 7 resident licenses have been canceled or changed to a 8 nonresident basis and that he or she is in good standing. 9 Section 35. Subsection (2) of section 626.7315, 10 Florida Statutes, is amended to read: 11 626.7315 Prohibition against the unlicensed 12 transaction of general lines insurance.--With respect to any 13 line of authority as defined in s. 626.015(7), no individual 14 shall, unless licensed as a general lines agent: 15 (2) In this state, receive or issue a receipt for any 16 money on account of or for any insurer, or receive or issue a 17 receipt for money from other persons to be transmitted to any 18 insurer for a policy, contract, or certificate of insurance or 19 any renewal thereof, even though the policy, certificate, or 20 contract is not signed by him or her as agent or 21 representative of the insurer, except as provided in s. 22 626.0428(1) ; 23 Section 36. Paragraphs (a), (b), and (d) of subsection 24 (1) of section 626.732, Florida Statutes, are amended to read: 25 626.732 Requirement as to knowledge, experience, or 26 instruction.-- 27 (1) Except as provided in subsection (3), no applicant 28 for a license as a general lines agent, except for a chartered 29 property and casualty underwriter(CPCU), other than as to a 30 limited license as to baggage and motor vehicle excess 31 liability insurance, credit property insurance, credit 32 11:46 AM 04/28/03 h0513c1c-25e8j
SENATE AMENDMENT Bill No. CS/HB 513 Amendment No. ___ Barcode 763356 1 insurance, in-transit and storage personal property insurance, 2 or communications equipment property insurance or 3 communication equipment inland marine insurance, shall be 4 qualified or licensed unless within the 4 years immediately 5 preceding the date the application for license is filed with 6 the department the applicant has: 7 (a) Taught or successfully completed classroom courses 8 in insurance, 3 hours of which shall be on the subject matter 9 of ethics, satisfactory to the department at a school, 10 college, or extension division thereof, approved by the 11 department; 12 (b) Completed a correspondence course in insurance, 3 13 hours of which shall be on the subject matter of ethics, 14 satisfactory to the department and regularly offered by 15 accredited institutions of higher learning in this state and, 16 except if he or she is applying for a limited license under s. 17 626.321, has had at least 6 months of responsible insurance 18 duties as a substantially full-time bona fide employee in all 19 lines of property and casualty insurance set forth in the 20 definition of general lines agent under s. 626.015; 21 (d)1. Completed at least 1 year of responsible 22 insurance duties as a licensed and appointed customer 23 representative or limited customer representative in either 24 commercial or personal lines of property and casualty 25 insurance and 40 hours of classroom courses approved by the 26 department covering the areas of property, casualty, surety, 27 health, and marine insurance; or 28 2. Completed at least 1 year of responsible insurance 29 duties as a licensed and appointed service representative in 30 either commercial or personal lines of property and casualty 31 insurance and 80 hours of classroom courses approved by the 33 11:46 AM 04/28/03 h0513c1c-25e8j
SENATE AMENDMENT Bill No. CS/HB 513 Amendment No. ___ Barcode 763356 1 department covering the areas of property, casualty, surety, 2 health, and marine insurance. 3 Section 37. Section 626.733, Florida Statutes, is 4 amended to read: 5 626.733 Agency firms and corporations; special 6 requirements.--If a sole proprietorship, partnership, 7 corporation, or association holds an agency contract, all 8 members thereof who solicit, negotiate, or effect insurance 9 contracts, and all officers and stockholders of the 10 corporation who solicit, negotiate, or effect insurance 11 contracts, are required to qualify and be licensed 12 individually as agents, solicitors, or customer 13 representatives; and all of such agents must be individually 14 appointed as to each property and casualty insurer entering 15 into an agency contract with such agency. Each such appointing 16 insurer as soon as known to it shall comply with this section 17 and shall determine and require that each agent so associated 18 in or so connected with such agency is likewise appointed as 19 to the same such insurer and for the same type and class of 20 license. However, no insurer is required to comply with the 21 provisions of this section if such insurer satisfactorily 22 demonstrates to the department that the insurer has issued an 23 aggregate net written premium, in an agency, in an amount of 24 $25,000 or less. 25 Section 38. Paragraph (a) of subsection (2) and 26 subsection (3) of section 626.7351, Florida Statutes, are 27 amended to read: 28 626.7351 Qualifications for customer representative's 29 license.--The department shall not grant or issue a license as 30 customer representative to any individual found by it to be 31 untrustworthy or incompetent, or who does not meet each of the 34 11:46 AM 04/28/03 h0513c1c-25e8j
SENATE AMENDMENT Bill No. CS/HB 513 Amendment No. ___ Barcode 763356 1 following qualifications: 2 (2)(a) The applicant is a United States citizen or 3 legal alien who possesses work authorization from the United 4 States Immigration and Naturalization Service and is a bona 5 fide resident of this state and will actually reside in the 6 state at least 6 months out of the year. An individual who is 7 a bona fide resident of this state shall be deemed to meet the 8 residence requirements of this subsection, notwithstanding the 9 existence at the time of application for license of a license 10 in his or her name on the records of another state as a 11 resident licensee of the other state, if the applicant 12 furnishes a letter of clearance satisfactory to the department 13 that the resident licenses have been canceled or changed to a 14 nonresident basis and that he or she is in good standing. 15 (3) Within the 2 years next preceding the date the 16 application for license was filed with the department, the 17 applicant has completed a course in insurance, 3 hours of 18 which shall be on the subject matter of ethics, approved by 19 the department or has had at least 6 months' experience in 20 responsible insurance duties as a substantially full-time 21 employee. Courses must include instruction on the subject 22 matter of unauthorized entities engaging in the business of 23 insurance. The scope of the topic of unauthorized entities 24 shall include the Florida Nonprofit Multiple-Employer Welfare 25 Arrangement Act and the Employee Retirement Income Security 26 Act, 29 U.S.C. ss. 1001 et seq., as such acts relate to the 27 provision of health insurance by employers and the regulation 28 of such insurance. 29 Section 39. Subsection (2) of section 626.7354, 30 Florida Statutes, is amended to read: 31 626.7354 Customer representative's powers; agent's or 35 11:46 AM 04/28/03 h0513c1c-25e8j
SENATE AMENDMENT Bill No. CS/HB 513 Amendment No. ___ Barcode 763356 1 agency's responsibility.-- 2 (2) A customer representative may engage in 3 transacting insurance with customers who have been solicited 4 by any agent, solicitor, or customer representative in the 5 same agency, and may engage in transacting insurance with 6 customers who have not been so solicited to the extent and 7 under conditions that are otherwise consistent with this part 8 and with the insurer's contract with the agent appointing him 9 or her. 10 Section 40. Paragraph (c) of subsection (1) of section 11 626.7355, Florida Statutes, is amended to read: 12 626.7355 Temporary license as customer representative 13 pending examination.-- 14 (1) The department shall issue a temporary customer 15 representative's license with respect to a person who has 16 applied for such license upon finding that the person: 17 (c) Is a United States citizen or legal alien who 18 possesses work authorization from the United States 19 Immigration and Naturalization Service and is a bona fide 20 resident of this state or is a resident of another state 21 sharing a common boundary with this state. An individual who 22 is a bona fide resident of this state shall be deemed to meet 23 the residence requirement of this paragraph, notwithstanding 24 the existence at the time of application for license, of a 25 license in his or her name on the records of another state as 26 a resident licensee of such other state, if the applicant 27 furnishes a letter of clearance satisfactory to the department 28 that his or her resident licenses have been canceled or 29 changed to a nonresident basis and that he or she is in good 30 standing. 31 Section 41. Subsection (3) of section 626.741, Florida 36 11:46 AM 04/28/03 h0513c1c-25e8j
SENATE AMENDMENT Bill No. CS/HB 513 Amendment No. ___ Barcode 763356 1 Statutes, is amended to read: 2 626.741 Nonresident agents; licensing and 3 restrictions.-- 4 (3) The department shall not, however, issue any 5 license and appointment to any nonresident who has an office 6 or place of business in this state, or who has any direct or 7 indirect pecuniary interest in any insurance agent or, 8 insurance agency, or in any solicitor licensed as a resident 9 of this state; nor to any individual who does not, at the time 10 of issuance and throughout the existence of the Florida 11 license, hold a license as agent or broker issued by his or 12 her home state; nor to any individual who is employed by any 13 insurer as a service representative or who is a managing 14 general agent in any state, whether or not also licensed in 15 another state as an agent or broker. The foregoing requirement 16 to hold a similar license in the applicant's home state does 17 not apply to customer representatives unless the home state 18 licenses residents of that state in a similar manner. The 19 prohibition against having an office or place of business in 20 this state does not apply to customer representatives who are 21 required to conduct business solely within the confines of the 22 office of a licensed and appointed Florida resident general 23 lines agent in this state. The authority of such nonresident 24 license is limited to the specific lines of authority granted 25 in the license issued by the agent's home state and further 26 limited to the specific lines authorized under the nonresident 27 license issued by this state. The department shall have 28 discretion to refuse to issue any license or appointment to a 29 nonresident when it has reason to believe that the applicant 30 by ruse or subterfuge is attempting to avoid the intent and 31 prohibitions contained in this subsection or to believe that 37 11:46 AM 04/28/03 h0513c1c-25e8j
SENATE AMENDMENT Bill No. CS/HB 513 Amendment No. ___ Barcode 763356 1 any of the grounds exist as for suspension or revocation of 2 license as set forth in ss. 626.611 and 626.621. 3 Section 42. Paragraph (a) of subsection (1) of section 4 626.753, Florida Statutes, is amended to read: 5 626.753 Sharing commissions; penalty.-- 6 (1)(a) An agent may divide or share in commissions 7 only with his or her own employed solicitors and with other 8 agents appointed and licensed to write the same kind or kinds 9 of insurance. 10 Section 43. Paragraphs (b) and (d) of subsection (1) 11 of section 626.785, Florida Statutes, are amended to read: 12 626.785 Qualifications for license.-- 13 (1) The department shall not grant or issue a license 14 as life agent to any individual found by it to be 15 untrustworthy or incompetent, or who does not meet the 16 following qualifications: 17 (b) Must be a United States citizen or legal alien who 18 possesses work authorization from the United States 19 Immigration and Naturalization Service and a bona fide 20 resident of this state. 21 (d) Must not be a funeral director or direct disposer, 22 or an employee or representative thereof, or have an office 23 in, or in connection with, a funeral establishment, except 24 that a funeral establishment may contract with a life 25 insurance agent to sell a preneed contract as defined in 26 chapter 497. Notwithstanding other provisions of this chapter, 27 such insurance agent may sell limited policies of insurance 28 covering the expense of final disposition or burial of an 29 insured in the an amount of $12,500, plus an annual percentage 30 increase based on the Annual Consumer Price Index compiled by 31 the United States Department of Labor, beginning with the 38 11:46 AM 04/28/03 h0513c1c-25e8j
SENATE AMENDMENT Bill No. CS/HB 513 Amendment No. ___ Barcode 763356 1 Annual Consumer Price Index announced by the United States 2 Department of Labor for the year 2003 not to exceed $10,000. 3 Section 44. Subsections (1) and (2) of section 4 626.7851, Florida Statutes, are amended to read: 5 626.7851 Requirement as to knowledge, experience, or 6 instruction.--No applicant for a license as a life agent, 7 except for a chartered life underwriter (CLU), shall be 8 qualified or licensed unless within the 4 years immediately 9 preceding the date the application for a license is filed with 10 the department he or she has: 11 (1) Successfully completed 40 hours of classroom 12 courses in insurance, 3 hours of which shall be on the subject 13 matter of ethics, satisfactory to the department at a school 14 or college, or extension division thereof, or other authorized 15 course of study, approved by the department. Courses must 16 include instruction on the subject matter of unauthorized 17 entities engaging in the business of insurance, to include the 18 Florida Nonprofit Multiple-Employer Welfare Arrangement Act 19 and the Employee Retirement Income Security Act, 29 U.S.C. ss. 20 1001 et seq., as it relates to the provision of life insurance 21 by employers to their employees and the regulation thereof; 22 (2) Successfully completed a correspondence course in 23 insurance, 3 hours of which shall be on the subject matter of 24 ethics, satisfactory to the department and regularly offered 25 by accredited institutions of higher learning in this state, 26 approved by the department. Courses must include instruction 27 on the subject matter of unauthorized entities engaging in the 28 business of insurance, to include the Florida Nonprofit 29 Multiple-Employer Welfare Arrangement Act and the Employee 30 Retirement Income Security Act, 29 U.S.C. ss. 1001 et seq., as 31 it relates to the provision of life insurance by employers to 39 11:46 AM 04/28/03 h0513c1c-25e8j
SENATE AMENDMENT Bill No. CS/HB 513 Amendment No. ___ Barcode 763356 1 their employees and the regulation thereof; 2 Section 45. Subsection (2) of section 626.829, Florida 3 Statutes, is amended to read: 4 626.829 "Health agent" defined.-- 5 (2) Any person who acts for an insurer, or on behalf 6 of a licensed representative of an insurer, to solicit 7 applications for or to negotiate and effectuate health 8 insurance contracts, whether or not he or she is appointed as 9 an agent, subagent, solicitor, or canvasser or by any other 10 title, shall be deemed to be a health agent and shall be 11 qualified, licensed, and appointed as a health agent. 12 Section 46. Paragraph (b) of subsection (1) of section 13 626.831, Florida Statutes, is amended to read: 14 626.831 Qualifications for license.-- 15 (1) The department shall not grant or issue a license 16 as health agent as to any individual found by it to be 17 untrustworthy or incompetent, or who does not meet the 18 following qualifications: 19 (b) Must be a United States citizen or legal alien who 20 possesses work authorization from the United States 21 Immigration and Naturalization Service and a bona fide 22 resident of this state. 23 Section 47. Subsections (1) and (2) of section 24 626.8311, Florida Statutes, are amended to read: 25 626.8311 Requirement as to knowledge, experience, or 26 instruction.--No applicant for a license as a health agent, 27 except for a chartered life underwriter (CLU), shall be 28 qualified or licensed unless within the 4 years immediately 29 preceding the date the application for license is filed with 30 the department he or she has: 31 (1) Successfully completed 40 hours of classroom 40 11:46 AM 04/28/03 h0513c1c-25e8j
SENATE AMENDMENT Bill No. CS/HB 513 Amendment No. ___ Barcode 763356 1 courses in insurance, 3 hours of which shall be on the subject 2 matter of ethics, satisfactory to the department at a school 3 or college, or extension division thereof, or other authorized 4 course of study, approved by the department. Courses must 5 include instruction on the subject matter of unauthorized 6 entities engaging in the business of insurance, to include the 7 Florida Nonprofit Multiple-Employer Welfare Arrangement Act 8 and the Employee Retirement Income Security Act, 29 U.S.C. ss. 9 1001 et seq., as it relates to the provision of health 10 insurance by employers to their employees and the regulation 11 thereof; 12 (2) Successfully completed a correspondence course in 13 insurance, 3 hours of which shall be on the subject matter of 14 ethics, satisfactory to the department and regularly offered 15 by accredited institutions of higher learning in this state, 16 approved by the department. Courses must include instruction 17 on the subject matter of unauthorized entities engaging in the 18 business of insurance, to include the Florida Nonprofit 19 Multiple-Employer Welfare Arrangement Act and the Employee 20 Retirement Income Security Act, 29 U.S.C. ss. 1001 et seq., as 21 it relates to the provision of health insurance by employers 22 to their employees and the regulation thereof; 23 Section 48. Subsection (2) of section 626.8414, 24 Florida Statutes, is amended to read: 25 626.8414 Qualifications for examination.--The 26 department must authorize any natural person to take the 27 examination for the issuance of a license as a title insurance 28 agent if the person meets all of the following qualifications: 29 (2) The applicant must be a United States citizen or 30 legal alien who possesses work authorization from the United 31 States Immigration and Naturalization Service and a bona fide 41 11:46 AM 04/28/03 h0513c1c-25e8j
SENATE AMENDMENT Bill No. CS/HB 513 Amendment No. ___ Barcode 763356 1 resident of this state. A person meets the residency 2 requirement of this subsection, notwithstanding the existence 3 at the time of application for license of a license in the 4 applicant's name on the records of another state as a resident 5 licensee of such other state, if the applicant furnishes a 6 letter of clearance satisfactory to the department that the 7 resident licenses have been canceled or changed to a 8 nonresident basis and that the applicant is in good standing. 9 Section 49. Paragraph (a) of subsection (3) of section 10 626.8417, Florida Statutes, is amended to read: 11 626.8417 Title insurance agent licensure; 12 exemptions.-- 13 (3) The department shall not grant or issue a license 14 as title agent to any individual found by it to be 15 untrustworthy or incompetent, who does not meet the 16 qualifications for examination specified in s. 626.8414, or 17 who does not meet the following qualifications: 18 (a) Within the 4 years immediately preceding the date 19 of the application for license, the applicant must have 20 completed a 40-hour classroom course in title insurance, 3 21 hours of which shall be on the subject matter of ethics, as 22 approved by the department, or must have had at least 12 23 months of experience in responsible title insurance duties, 24 while working in the title insurance business as a 25 substantially full-time, bona fide employee of a title agency, 26 title agent, title insurer, or attorney who conducts real 27 estate closing transactions and issues title insurance 28 policies but who is exempt from licensure pursuant to 29 paragraph (4)(a). If an applicant's qualifications are based 30 upon the periods of employment at responsible title insurance 31 duties, the applicant must submit, with the application for 42 11:46 AM 04/28/03 h0513c1c-25e8j
SENATE AMENDMENT Bill No. CS/HB 513 Amendment No. ___ Barcode 763356 1 license on a form prescribed by the department, the affidavit 2 of the applicant and of the employer setting forth the period 3 of such employment, that the employment was substantially full 4 time, and giving a brief abstract of the nature of the duties 5 performed by the applicant. 6 Section 50. Section 626.843, Florida Statutes, is 7 amended to read: 8 626.843 Renewal, continuation, reinstatement, 9 termination of title insurance agent's appointment.-- 10 (1) The appointment of a title insurance agent shall 11 continue in force until suspended, revoked, or otherwise 12 terminated, but subject to a renewed request filed by the 13 insurer every 24 months after the original issue date of the 14 appointment, accompanied by payment of the renewal appointment 15 fee and taxes as prescribed in s. 624.501. 16 (2) Title insurance agent appointments shall be 17 renewed pursuant to s. 626.381 for insurance representatives 18 in general. Each insurer shall file with the department the 19 lists, statements, and information as to appointments which 20 are being renewed or being terminated, accompanied by payment 21 of the applicable renewal fees and taxes as prescribed in s. 22 624.501, by a date set forth by the department following the 23 month during which the appointments will expire. 24 (3) Request for renewal of an appointment which is 25 received on a date set forth by the department in the 26 succeeding month may be renewed by the department without 27 penalty, and shall be effective as of the day the appointment 28 would have expired. 29 (4) Request for renewal of an appointment which is 30 received by the department after the date set by the 31 department may be accepted and effectuated by the department 43 11:46 AM 04/28/03 h0513c1c-25e8j
SENATE AMENDMENT Bill No. CS/HB 513 Amendment No. ___ Barcode 763356 1 in its discretion if an additional appointment continuation 2 and reinstatement fee accompany the request for renewal 3 pursuant to s. 624.501. 4 (3)(5) The appointment issued shall remain in effect 5 for so long as the appointment represented thereby continues 6 in force as provided in this section. 7 Section 51. Paragraph (b) of subsection (1) of section 8 626.865, Florida Statutes, is amended to read: 9 626.865 Public adjuster's qualifications, bond.-- 10 (1) The department shall issue a license to an 11 applicant for a public adjuster's license upon determining 12 that the applicant has paid the applicable fees specified in 13 s. 624.501 and possesses the following qualifications: 14 (b) Is a United States citizen or legal alien who 15 possesses work authorization from the United States 16 Immigration and Naturalization Service and a bona fide 17 resident of this state. 18 Section 52. Subsection (2) of section 626.866, Florida 19 Statutes, is amended to read: 20 626.866 Independent adjuster's qualifications.--The 21 department shall issue a license to an applicant for an 22 independent adjuster's license upon determining that the 23 applicable license fee specified in s. 624.501 has been paid 24 and that the applicant possesses the following qualifications: 25 (2) Is a United States citizen or legal alien who 26 possesses work authorization from the United States 27 Immigration and Naturalization Service and a bona fide 28 resident of this state. 29 Section 53. Subsection (2) of section 626.867, Florida 30 Statutes, is amended to read: 31 626.867 Company employee adjuster's 44 11:46 AM 04/28/03 h0513c1c-25e8j
SENATE AMENDMENT Bill No. CS/HB 513 Amendment No. ___ Barcode 763356 1 qualifications.--The department shall issue a license to an 2 applicant for a company employee adjuster's license upon 3 determining that the applicable license fee specified in s. 4 624.501 has been paid and that the applicant possesses the 5 following qualifications: 6 (2) Is a United States citizen or legal alien who 7 possesses work authorization from the United States 8 Immigration and Naturalization Service and a bona fide 9 resident of this state. 10 Section 54. Section 626.869, Florida Statutes, is 11 amended to read: 12 626.869 License, adjusters.-- 13 (1) An applicant for a license as an adjuster may 14 qualify and his or her license when issued may cover adjusting 15 in any one of the following classes of insurance: 16 (a) All lines of insurance except life and annuities. 17 (b) Motor vehicle physical damage insurance. 18 (c) Property and casualty insurance. 19 (d) Workers' compensation insurance. 20 (e) Health insurance. 21 (2) All individuals who on October 1, 1990, hold an 22 adjuster's license and appointment limited to fire and allied 23 lines, including marine or casualty or boiler and machinery, 24 may remain licensed and appointed under the limited license 25 and may renew their appointment, but no license or appointment 26 which has been terminated, not renewed, suspended, or revoked 27 shall be reinstated, and no new or additional licenses or 28 appointments shall be issued. 29 (3) With the exception of a public adjuster limited to 30 health insurance, a limited license set forth in subsection 31 (1) as an independent or public adjuster may only be issued to 45 11:46 AM 04/28/03 h0513c1c-25e8j
SENATE AMENDMENT Bill No. CS/HB 513 Amendment No. ___ Barcode 763356 1 and retained by an employee of an independent or public 2 adjusting firm which is supervised by a duly appointed 3 all-lines adjuster or an employee of an independent or public 4 adjuster licensed and appointed in all lines of insurance 5 other than life and annuity. The office of the limited lines 6 adjuster shall be in the office of the licensed all-lines 7 adjuster responsible for his or her supervision and 8 instruction. 9 (3)(4) The applicant's application for license shall 10 specify which of the foregoing classes of business the 11 application for license is to cover. 12 (4)(5) Any individual person holding a license for 24 13 consecutive months or longer and who engages in adjusting 14 workers' compensation insurance must, beginning in his or her 15 their birth month and every 2 years thereafter, have completed 16 24 hours of courses, 2 hours of which relate to ethics, in 17 subjects designed to inform the licensee regarding the current 18 insurance workers' compensation laws of this state, so as to 19 enable him or her to engage in business as an a workers' 20 compensation insurance adjuster fairly and without injury to 21 the public and to adjust all claims in accordance with the 22 policy or contract and the workers' compensation laws of this 23 state. In order to qualify as an eligible course under this 24 subsection, the course must: 25 (a) Have a course outline approved by the department. 26 (b) Be taught at a school training facility or other 27 location approved by the department. 28 (c) Be taught by instructors with at least 5 years of 29 experience in the area of workers' compensation, general lines 30 of insurance, or other persons approved by the department. 31 However, a member of The Florida Bar is exempt from the 5 46 11:46 AM 04/28/03 h0513c1c-25e8j
SENATE AMENDMENT Bill No. CS/HB 513 Amendment No. ___ Barcode 763356 1 years' experience requirement. 2 (d) Furnish the attendee a certificate of completion. 3 The course provider shall send a roster to the department in a 4 format prescribed by the department. 5 (5) The regulation of continuing education for 6 licensees, course providers, instructors, school officials, 7 and monitor groups shall be as provided for in s. 626.2816. 8 Section 55. Subsection (1) of section 626.874, Florida 9 Statutes, is amended to read: 10 626.874 Catastrophe or emergency adjusters.-- 11 (1) In the event of a catastrophe or emergency, the 12 department may issue a license, for the purposes and under the 13 conditions which it shall fix and for the period of emergency 14 as it shall determine, to persons who are residents or 15 nonresidents of this state, who are at least 18 years of age, 16 who are United States citizens or legal aliens who possess 17 work authorization from the United States Immigration and 18 Naturalization Service, and who are not licensed adjusters 19 under this part but who have been designated and certified to 20 it as qualified to act as adjusters by independent resident 21 adjusters or by an authorized insurer or by a licensed general 22 lines agent to adjust claims, losses, or damages under 23 policies or contracts of insurance issued by such insurers. 24 The fee for the license shall be as provided in s. 25 624.501(12)(c). 26 Section 56. Section 626.878, Florida Statutes, is 27 amended to read: 28 626.878 Rules; code of ethics.--An adjuster shall 29 subscribe to the code of ethics specified in the rules of the 30 department. The rules shall implement the provisions of this 31 part and specify the terms and conditions of contracts, 47 11:46 AM 04/28/03 h0513c1c-25e8j
SENATE AMENDMENT Bill No. CS/HB 513 Amendment No. ___ Barcode 763356 1 including a right to cancel, and require practices necessary 2 to ensure fair dealing, prohibit conflicts of interest, and 3 ensure preservation of the rights of the claimant to 4 participate in the adjustment of claims. 5 Section 57. Subsection (1) of section 626.797, Florida 6 Statutes, is amended to read: 7 626.797 Code of ethics.-- 8 (1) The department shall, after consultation with the 9 Florida Association Of Insurance and Financial Advisors Life 10 Underwriters, adopt a code of ethics, or continue any such 11 code heretofore so adopted, to govern the conduct of life 12 agents in their relations with the public, other agents, and 13 the insurers. 14 Section 58. Paragraph (z) of subsection (1) of section 15 626.9541, Florida Statutes, is amended to read: 16 626.9541 Unfair methods of competition and unfair or 17 deceptive acts or practices defined.-- 18 (1) UNFAIR METHODS OF COMPETITION AND UNFAIR OR 19 DECEPTIVE ACTS.--The following are defined as unfair methods 20 of competition and unfair or deceptive acts or practices: 21 (z) Sliding.--Sliding is the act or practice of: 22 1. Representing to the applicant that a specific 23 ancillary coverage or product is required by law in 24 conjunction with the purchase of motor vehicle insurance when 25 such coverage or product is not required; 26 2. Representing to the applicant that a specific 27 ancillary coverage or product is included in the motor vehicle 28 policy applied for without an additional charge when such 29 charge is required; or 30 3. Charging an applicant for a specific ancillary 31 coverage or product, in addition to the cost of the motor 48 11:46 AM 04/28/03 h0513c1c-25e8j
SENATE AMENDMENT Bill No. CS/HB 513 Amendment No. ___ Barcode 763356 1 vehicle insurance coverage applied for, without the informed 2 consent of the applicant. 3 Section 59. Paragraph (f) is added to subsection (7) 4 of section 626.9916, Florida Statutes, to read: 5 626.9916 Viatical settlement broker license required; 6 application for license.-- 7 (7) Upon the filing of a sworn application and the 8 payment of the license fee and all other applicable fees under 9 this act, the department shall investigate each applicant and 10 may issue the applicant a license if the department finds that 11 the applicant: 12 (f) If a natural person, is at least 18 years of age 13 and a United States citizen or legal alien who possesses work 14 authorization from the United States Immigration and 15 Naturalization Service. 16 Section 60. Paragraph (a) of subsection (5) of section 17 627.7295, Florida Statutes, is amended to read: 18 627.7295 Motor vehicle insurance contracts.-- 19 (5)(a) A licensed general lines agent may charge a 20 per-policy fee not to exceed $20 $10 to cover the 21 administrative costs of the agent associated with selling the 22 motor vehicle insurance policy if the policy covers only 23 personal injury protection coverage as provided by s. 627.736 24 and property damage liability coverage as provided by s. 25 627.7275 and if no other insurance is sold or issued in 26 conjunction with or collateral to the policy. The per-policy 27 fee shall be paid only to the agent and may not be paid by or 28 passed on to the insurer. The per-policy fee must be a 29 component of the insurer's rate filing and may not be charged 30 by an agent unless the fee is included in the filing. The fee 31 is not considered part of the premium except for purposes of 49 11:46 AM 04/28/03 h0513c1c-25e8j
SENATE AMENDMENT Bill No. CS/HB 513 Amendment No. ___ Barcode 763356 1 the department' s review of expense factors in a filing made 2 pursuant to s. 627.062. 3 Section 61. Subsection (3) of section 632.634, Florida 4 Statutes, is amended to read: 5 632.634 Licensing and appointment of agents.-- 6 (3) Any agent, representative, or member of a society 7 who in any preceding calendar year has solicited and procured 8 life insurance benefit contracts on behalf of any society in a 9 total amount of insurance less than $50,000, or, in the case 10 of any other kind or kinds of insurance benefit contracts 11 which the society might write, on not more than 25 12 individuals, shall be exempt from the agent licensing and 13 appointment requirements of subsection (1). Upon request by 14 the department, every society shall register, on forms 15 prescribed by the department and on or before March 1 of each 16 year, the name and residence address of each agent, 17 representative, or member exempt under the provisions of this 18 subsection and shall, within 30 days of termination of 19 employment, notify the department of the termination. Any 20 agent, representative, or member for which an exemption is 21 claimed due to employment by the society subsequent to March 1 22 shall be registered by the society with the department within 23 10 days of the date of employment. 24 Section 62. Section 634.171, Florida Statutes, is 25 amended to read: 26 634.171 Salesperson to be licensed and 27 appointed.--Salespersons for motor vehicle service agreement 28 companies and insurers shall be licensed, appointed, renewed, 29 continued, reinstated, or terminated as prescribed in chapter 30 626 for insurance representatives in general. However, they 31 shall be exempt from all other provisions of chapter 626 50 11:46 AM 04/28/03 h0513c1c-25e8j
SENATE AMENDMENT Bill No. CS/HB 513 Amendment No. ___ Barcode 763356 1 including fingerprinting, photo identification, education, and 2 examination provisions. License, appointment, and other fees 3 shall be those prescribed in s. 624.501. A licensed and 4 appointed salesperson shall be directly responsible and 5 accountable for all acts of her or his employees and other 6 representatives. Each service agreement company or insurer 7 shall, on forms prescribed by the department, within 30 days 8 after termination of the appointment, notify the department of 9 such termination. No employee or salesperson of a motor 10 vehicle service agreement company or insurer may directly or 11 indirectly solicit or negotiate insurance contracts, or hold 12 herself or himself out in any manner to be an insurance agent 13 or solicitor, unless so qualified, licensed, and appointed 14 therefor under the Florida Insurance Code. A motor vehicle 15 service agreement company is not required to be licensed as a 16 salesperson to solicit, sell, issue, or otherwise transact the 17 motor vehicle service agreements issued by the motor vehicle 18 service agreement company. 19 Section 63. Section 634.420, Florida Statutes, is 20 amended to read: 21 634.420 License and appointment of sales 22 representatives.--Sales representatives for service warranty 23 associations or insurers shall be licensed, appointed, 24 renewed, continued, reinstated, or terminated in accordance 25 with procedures as prescribed in chapter 626 for insurance 26 representatives in general. However, they shall be exempt from 27 all other provisions of chapter 626, including fingerprinting, 28 photo identification, education, and examination. License, 29 appointment, and other fees shall be those prescribed in s. 30 624.501. A licensed and appointed sales representative shall 31 be directly responsible and accountable for all acts of the 51 11:46 AM 04/28/03 h0513c1c-25e8j
SENATE AMENDMENT Bill No. CS/HB 513 Amendment No. ___ Barcode 763356 1 licensed sales representative's employees or other 2 representatives. Each service warranty association or insurer 3 shall, on forms prescribed by the department, within 30 days 4 after termination of the appointment, notify the department of 5 such termination. No employee or sales representative of a 6 service warranty association or insurer may directly or 7 indirectly solicit or negotiate insurance contracts, or hold 8 herself or himself out in any manner to be an insurance agent 9 or solicitor , unless so qualified, licensed, and appointed 10 therefor under the insurance code. 11 Section 64. Section 642.034, Florida Statutes, is 12 amended to read: 13 642.034 License and appointment required.--No person 14 may solicit, negotiate, sell, or execute legal expense 15 insurance contracts on behalf of an insurer in this state 16 unless such person is licensed and appointed as a sales 17 representative or is licensed and appointed under the 18 insurance code as a general lines agent or solicitor. No 19 person licensed and appointed as a legal expense insurance 20 sales representative may solicit, negotiate, sell, or execute 21 any other contract of insurance unless such person is duly 22 licensed and appointed to do so under the provisions of 23 chapter 626. 24 Section 65. Section 642.036, Florida Statutes, is 25 amended to read: 26 642.036 Sales representatives to be licensed and 27 appointed.--Sales representatives of legal expense insurers 28 shall be licensed, appointed, renewed, continued, reinstated, 29 or terminated as prescribed in chapter 626 for insurance 30 representatives in general, and shall pay the license and 31 appointment fees prescribed in s. 624.501. No employee or 52 11:46 AM 04/28/03 h0513c1c-25e8j
SENATE AMENDMENT Bill No. CS/HB 513 Amendment No. ___ Barcode 763356 1 sales representative of an insurer may directly or indirectly 2 solicit or negotiate insurance contracts, or hold herself or 3 himself out in any manner to be an insurance agent or 4 solicitor , unless so qualified, licensed, and appointed 5 therefor under the insurance code. 6 Section 66. Section 642.045, Florida Statutes, is 7 amended to read: 8 642.045 Procedure for refusal, suspension, or 9 revocation of license and appointment of sales representative; 10 departmental action upon violation by licensed insurance agent 11 or solicitor.-- 12 (1) If any sales representative is convicted by a 13 court of a violation of any provision of ss. 642.011-642.049, 14 the license and appointment of such individual shall thereby 15 be deemed to be immediately revoked without any further 16 procedure relative thereto by the department. 17 (2) Whenever it appears that any licensed insurance 18 agent or solicitor has violated the provisions of ss. 19 642.011-642.049, or if any grounds listed in s. 642.041 or s. 20 642.043 exist as to such agent or solicitor, the department 21 may take such action as is authorized by the insurance code 22 for a violation of the insurance code by such agent or 23 solicitor, or such action as is authorized by this chapter for 24 a violation of this chapter by a sales representative. 25 Section 67. Paragraph (b) of subsection (5) and 26 subsection (9) of section 648.27, Florida Statutes, are 27 amended to read: 28 648.27 Licenses and appointments; general.-- 29 (5) 30 (b) The license of a temporary bail bond agent or 31 runner shall continue in force until suspended, revoked, or 53 11:46 AM 04/28/03 h0513c1c-25e8j
SENATE AMENDMENT Bill No. CS/HB 513 Amendment No. ___ Barcode 763356 1 otherwise terminated. 2 (9) If, upon application for an appointment and such 3 investigation as the department may make, it appears to the 4 department that an individual has been actively engaged or is 5 currently actively engaged in bail bond activities without 6 being appointed as required, the department may, if it finds 7 that such failure to be appointed is an error on the part of 8 the insurer or employer so represented, issue or authorize the 9 issuance of the appointment as applied for, but subject to the 10 condition that, before the appointment is issued, all fees and 11 taxes which would have been due had the applicant been so 12 appointed during such current and prior periods, together with 13 a continuation fee for such current and prior terms of 14 appointment, shall be paid to the department. Failure to 15 notify the department within the required time period shall 16 result in the appointing entity being assessed a delinquent 17 fee of $250. Delinquent fees shall be paid by the appointing 18 entity and shall not be charged to the appointee. 19 Section 68. Paragraph (b) of subsection (2) and 20 subsections (5) and (6) of section 648.34, Florida Statutes, 21 are amended to read: 22 648.34 Bail bond agents; qualifications.-- 23 (2) To qualify as a bail bond agent, it must 24 affirmatively appear at the time of application and throughout 25 the period of licensure that the applicant has complied with 26 the provisions of s. 648.355 and has obtained a temporary 27 license pursuant to such section and: 28 (b) The applicant is a United States citizen or legal 29 alien who possesses work authorization from the United States 30 Immigration and Naturalization Service and is a resident of 31 this state. An individual who is a resident of this state 54 11:46 AM 04/28/03 h0513c1c-25e8j
SENATE AMENDMENT Bill No. CS/HB 513 Amendment No. ___ Barcode 763356 1 shall be deemed to meet the residence requirement of this 2 paragraph, notwithstanding the existence, at the time of 3 application for license, of a license in the applicant's name 4 on the records of another state as a resident licensee of such 5 other state, if the applicant furnishes a letter of clearance 6 satisfactory to the department that his or her resident 7 licenses have been canceled or changed to a nonresident basis 8 and that he or she is in good standing. 9 (5) The department shall conduct a comprehensive 10 investigation of each applicant, including a background check. 11 The investigation of the applicant's qualifications, 12 character, experience, background, and fitness shall include 13 submission of the applicant's fingerprints to the Department 14 of Law Enforcement and the Federal Bureau of Investigation and 15 consideration of any state criminal records, federal criminal 16 records, or local criminal records obtained from these 17 agencies or from local law enforcement agencies. 18 (6) The provisions of s. 112.011 do not apply to bail 19 bond agents or runners or to applicants for licensure as bail 20 bond agents or runners. 21 Section 69. Paragraphs (b) and (e) of subsection (1) 22 of section 648.355, Florida Statutes, are amended to read: 23 648.355 Temporary limited license as limited surety 24 agent or professional bail bond agent; pending examination.-- 25 (1) The department may, in its discretion, issue a 26 temporary license as a limited surety agent or professional 27 bail bond agent, subject to the following conditions: 28 (b) The applicant is a United States citizen or legal 29 alien who possesses work authorization from the United States 30 Immigration and Naturalization Service and is a resident of 31 this state. An individual who is a resident of this state 55 11:46 AM 04/28/03 h0513c1c-25e8j
SENATE AMENDMENT Bill No. CS/HB 513 Amendment No. ___ Barcode 763356 1 shall be deemed to meet the residence requirement of this 2 paragraph, notwithstanding the existence, at the time of 3 application for temporary license, of a license in the 4 individual's name on the records of another state as a 5 resident licensee of such other state, if the applicant 6 furnishes a letter of clearance satisfactory to the department 7 that the individual's resident licenses have been canceled or 8 changed to a nonresident basis and that the individual is in 9 good standing. 10 (e) The applicant must be employed full-time at the 11 time of licensure, and at all times throughout the existence 12 of the temporary license, by only one licensed and appointed 13 supervising bail bond agent, who supervises the work of the 14 applicant and is responsible for the licensee's conduct in the 15 bail bond business. The applicant must be appointed by the 16 same insurers as the supervising bail bond agent. The 17 supervising bail bond agent shall certify monthly to the 18 department under oath, on a form prescribed by the department, 19 the names and hours worked each week of all temporary bail 20 bond agents. Filing a false certification is grounds for the 21 immediate suspension of the license and imposition of a $5,000 22 administrative fine. The department may adopt rules that 23 establish standards for the employment requirements. 24 Section 70. Paragraph (a) of subsection (2) and 25 subsection (3) of section 648.382, Florida Statutes, are 26 amended, and subsection (6) is added to that section, to read: 27 648.382 Appointment of bail bond agents and temporary 28 bail bond agents; effective date of appointment.-- 29 (2) Prior to any appointment, an appropriate officer 30 or official of the appointing insurer in the case of a bail 31 bond agent or an insurer, managing general agent, or bail bond 56 11:46 AM 04/28/03 h0513c1c-25e8j
SENATE AMENDMENT Bill No. CS/HB 513 Amendment No. ___ Barcode 763356 1 agent in the case of a temporary bail bond agent must submit: 2 (a) A certified statement or affidavit to the 3 department stating what investigation has been made concerning 4 the proposed appointee and the proposed appointee's background 5 and the appointing person's opinion to the best of his or her 6 knowledge and belief as to the moral character, fitness, and 7 reputation of the proposed appointee. In lieu of such 8 certified statement or affidavit, by authorizing the 9 effectuation of an appointment for a licensee, the appointing 10 entity certifies to the department that such investigation has 11 been made and that the results of the investigation and the 12 appointing person's opinion is that the proposed appointee is 13 a person of good moral character and reputation and is fit to 14 engage in the bail bond business; 15 (3) By authorizing the effectuation of an appointment 16 for a licensee, the appointing insurer certifies to the 17 department Prior to any appointment of a bail bond agent, the 18 appointing insurer must certify to the department that the 19 insurer will be bound by the acts of the bail bond agent 20 acting within the scope of his or her appointment, and, in the 21 case of a temporary bail bond agent, the appointing insurer, 22 managing general agent, or bail bond agent, as the case may 23 be, must certify to the department that he or she will 24 supervise the temporary bail bond agent's activities. 25 (6) Failure to notify the department within the 26 required time period shall result in the appointing entity 27 being assessed a delinquent fee of $250. Delinquent fees shall 28 be paid by the appointing entity and shall not be charged to 29 the appointee. 30 Section 71. Section 648.383, Florida Statutes, is 31 amended to read: 57 11:46 AM 04/28/03 h0513c1c-25e8j
SENATE AMENDMENT Bill No. CS/HB 513 Amendment No. ___ Barcode 763356 1 648.383 Renewal, continuation, reinstatement, and 2 termination of appointment; bail bond agents.-- 3 (1) The appointment of a bail bond agent shall 4 continue in force unless suspended, revoked, or otherwise 5 terminated, subject to a renewal request filed by the 6 appointing entity in the appointee's birth month and every 24 7 months thereafter. A renewal request must be filed with the 8 department or person designated by the department to 9 administer appointments along with payment of the renewal 10 appointment fee and taxes as prescribed in s. 624.501. 11 (2) Each appointing person or person designated by the 12 department to administer appointments must file with the 13 department the lists, statement, and information as to each 14 bail bond agent whose appointment is being renewed, 15 accompanied by payment of the applicable renewal fees and 16 taxes as prescribed in s. 624.501, by a date established by 17 the department following the month during which the 18 appointment will expire. 19 (3) An appointment may be renewed by the department 20 without penalty if the information required under subsection 21 (2) is received by the department on or prior to the 22 expiration of the appointment in the licensee's birth month 23 date established by the department for renewal, and such 24 appointment shall be renewed, is effective on the first day of 25 the month succeeding the month in which the appointment was 26 scheduled to expire. 27 (4) If the information required under subsection (2) 28 is received by the department after the renewal date 29 established by the department for renewal, the appointment may 30 be renewed by the department if the an additional appointment, 31 late filing, continuation, and reinstatement fees accompany 58 11:46 AM 04/28/03 h0513c1c-25e8j
SENATE AMENDMENT Bill No. CS/HB 513 Amendment No. ___ Barcode 763356 1 fee accompanies the application as required under s. 624.501. 2 Section 72. Subsections (1) and (3) of section 648.50, 3 Florida Statutes, are amended to read: 4 648.50 Effect of suspension, revocation upon 5 associated licenses and licensees.-- 6 (1) Upon the suspension, revocation, or refusal to 7 renew or continue any license or appointment or the 8 eligibility to hold a license or appointment of a bail bond 9 agent or, temporary bail bond agent, or runner, the department 10 shall at the same time likewise suspend or revoke all other 11 licenses or appointments and the eligibility to hold any other 12 such licenses or appointments which may be held by the 13 licensee under the Florida Insurance Code. 14 (3) No person whose license as a bail bond agent or, 15 temporary bail bond agent, or runner has been revoked or 16 suspended shall be employed by any bail bond agent, have any 17 ownership interest in any business involving bail bonds, or 18 have any financial interest of any type in any bail bond 19 business during the period of revocation or suspension. 20 Section 73. Sections 626.032 and 626.361, Florida 21 Statutes, are repealed. 22 Section 74. Paragraph (d) of subsection (6) of 23 section 627.351, Florida Statutes, is amended to read: 24 627.351 Insurance risk apportionment plans.-- 25 (6) CITIZENS PROPERTY INSURANCE CORPORATION.-- 26 (d)1. It is the intent of the Legislature that the 27 rates for coverage provided by the corporation be actuarially 28 sound and not competitive with approved rates charged in the 29 admitted voluntary market, so that the corporation functions 30 as a residual market mechanism to provide insurance only when 31 the insurance cannot be procured in the voluntary market. 59 11:46 AM 04/28/03 h0513c1c-25e8j
SENATE AMENDMENT Bill No. CS/HB 513 Amendment No. ___ Barcode 763356 1 Rates shall include an appropriate catastrophe loading factor 2 that reflects the actual catastrophic exposure of the 3 corporation. 4 2. For each county, the average rates of the 5 corporation for each line of business for personal lines 6 residential policies excluding rates for wind-only policies 7 shall be no lower than the average rates charged by the 8 insurer that had the highest average rate in that county among 9 the 20 insurers with the greatest total direct written premium 10 in the state for that line of business in the preceding year, 11 except that with respect to mobile home coverages, the average 12 rates of the corporation shall be no lower than the average 13 rates charged by the insurer that had the highest average rate 14 in that county among the 5 insurers with the greatest total 15 written premium for mobile home owner's policies in the state 16 in the preceding year. 17 3. Rates for personal lines residential wind-only 18 policies must be actuarially sound and not competitive with 19 approved rates charged by authorized insurers. However, for 20 personal lines residential wind-only policies issued or 21 renewed between July 1, 2002, and June 30, 2003, the maximum 22 premium increase must be no greater than 10 percent of the 23 Florida Windstorm Underwriting Association premium for that 24 policy in effect on June 30, 2002, as adjusted for coverage 25 changes and seasonal occupancy surcharges. For personal lines 26 residential wind-only policies issued or renewed between July 27 1, 2003, and June 30, 2004, the corporation shall use its 28 existing filed and approved wind-only rating and 29 classification plans, provided, however, that the maximum 30 premium increase must be no greater than 20 percent of the 31 premium for that policy in effect on June 30, 2003, as 60 11:46 AM 04/28/03 h0513c1c-25e8j
SENATE AMENDMENT Bill No. CS/HB 513 Amendment No. ___ Barcode 763356 1 adjusted for coverage changes and seasonal occupancy 2 surcharges. add> 3 The personal lines residential wind-only rates for the 4 corporation effective July 1, 2003, must be based on a rate 5 filing by the corporation which establishes rates which are 6 actuarially sound and not competitive with approved rates 7 charged by authorized insurers. Corporation rate manuals shall 8 include a rate surcharge for seasonal occupancy. To ensure 9 that personal lines residential wind-only rates effective on 10 or after July 1, 2004 2003, are not competitive with approved 11 rates charged by authorized insurers, the corporation, in 12 conjunction with the office, shall develop a wind-only rate 13 making methodology, which methodology shall be contained in a 14 rate filing made by the corporation with the office by January 15 1, 2004. If the office thereafter determines that the 16 wind-only rates or rating factors filed by the corporation 17 fail to comply with the wind-only rate making methodology 18 provided for in this subsection, it shall so notify the 19 corporation and require the corporation to amend its rates or 20 rating factors to come into compliance within 90 days of 21 notice from the office. The office shall report to the Speaker 22 of the House of Representatives and the President of the 23 Senate on the provisions of the wind-only rate making 24 methodology by January 31, 2004 the department, by March 1 of 25 each year, shall provide the corporation, for each county in 26 which there are geographical areas in which personal lines 27 residential wind-only policies may be issued, the average 28 rates charged by the insurer that had the highest average rate 29 in that county for wind coverage in that insurer's rating 30 territories which most closely approximate the geographical 31 area in that county in which personal lines residential 61 11:46 AM 04/28/03 h0513c1c-25e8j
SENATE AMENDMENT Bill No. CS/HB 513 Amendment No. ___ Barcode 763356 1 wind-only policies may be written by the corporation. The 2 average rates provided must be from an insurer among the 20 3 insurers with the greatest total direct written premium in the 4 state for personal lines residential property insurance for 5 the preceding year. With respect to mobile homes, the five 6 insurers with the greatest total written premium for that line 7 of business in the preceding year shall be used. The 8 corporation shall certify to the department that its average 9 personal lines residential wind-only rates are no lower in 10 each county than the average rates provided by the department. 11 The department is authorized to adopt rules to establish 12 reporting requirements to obtain the necessary wind-only rate 13 information from insurers to implement this provision. 14 4. Rates for commercial lines coverage shall not be 15 subject to the requirements of subparagraph 2., but shall be 16 subject to all other requirements of this paragraph and s. 17 627.062. 18 5. Nothing in this paragraph shall require or allow 19 the corporation to adopt a rate that is inadequate under s. 20 627.062. 21 6. The corporation shall certify to the office at 22 least twice annually that its personal lines rates comply with 23 the requirements of subparagraphs 1. and 2. If any adjustment 24 in the rates or rating factors of the corporation is necessary 25 to ensure such compliance, the corporation shall make and 26 implement such adjustments and file its revised rates and 27 rating factors with the office. If the office thereafter 28 determines that the revised rates and rating factors fail to 29 comply with the provisions of subparagraphs 1. and 2, it shall 30 notify the corporation and require the corporation to amend 31 its rates or rating factors in conjunction with its next rate 62 11:46 AM 04/28/03 h0513c1c-25e8j
SENATE AMENDMENT Bill No. CS/HB 513 Amendment No. ___ Barcode 763356 1 filing. The office must notify the corporation by electronic 2 means of any rate filing it approves for any insurer among the 3 insurers referred to in subparagraph 2 make a rate filing at 4 least once a year, but no more often than quarterly. 5 7. In addition to the rates otherwise determined 6 pursuant to this paragraph, the corporation shall impose and 7 collect an amount equal to the premium tax provided for in s. 8 624.509 to augment the financial resources of the corporation. 9 8.a To assist the corporation in developing additional 10 ratemaking methods to assure compliance with subparagraphs 1. 11 and 4., the corporation shall appoint a rate methodology panel 12 consisting of one person recommended by the Florida 13 Association of Insurance Agents, one person recommended by the 14 Professional Insurance Agents of Florida, one person 15 recommended by the Florida Association of Insurance and 16 Financial Advisors, one person recommended by the insurer with 17 the highest voluntary market share of residential property 18 insurance business in the state, one person recommended by the 19 insurer with the second-highest voluntary market share of 20 residential property insurance business in the state, one 21 person recommended by an insurer writing commercial 22 residential property insurance in this state, one person 23 recommended by the Office of Insurance Regulation, and one 24 board member designated by the board chairman, who shall serve 25 as chairman of the panel. 26 b. By January 1, 2004, the rate methodology panel 27 shall provide a report to the corporation of its findings and 28 recommendations for the use of additional ratemaking methods 29 and procedures, including the use of a rate-equalization 30 surcharge in an amount sufficient to assure that the total 31 cost of coverage for policyholders or applicants to the 63 11:46 AM 04/28/03 h0513c1c-25e8j
SENATE AMENDMENT Bill No. CS/HB 513 Amendment No. ___ Barcode 763356 1 corporation is sufficient to comply with subparagraph 1. 2 c. Within 30 days after such report, the corporation 3 shall present to the President of the Senate, the Speaker of 4 the House of Representatives, the minority party leaders of 5 each house of the Legislature, and the chairs of the standing 6 committees of each house of the Legislature having 7 jurisdiction of insurance issues, a plan for implementing the 8 additional ratemaking methods and an outline of any 9 legislation needed to facilitate use of the new methods. 10 d. The plan must include a provision that producer 11 commissions paid by the corporation shall not be calculated in 12 such a manner as to include any rate-equalization surcharge. 13 However, without regard to the plan to be developed or its 14 implementation, producer commissions paid by the corporation 15 for each account, other than the quota share primary program, 16 shall remain fixed as to percentage, effective rate, 17 calculation, and payment method, as these were in effect on 18 January 1, 2003. 19 9. By January 1, 2004, the corporation shall develop a 20 notice to policyholders or applicants that the rates of 21 Citizens Property Insurance Corporation are intended to be 22 higher than the rates of any admitted carrier and providing 23 other information the corporation deems necessary to assist 24 consumers in finding other voluntary admitted insurers willing 25 to insure their property. 26 Section 75. Section 624.105, Florida Statutes, is 27 created to read: 28 624.105 Waiver of customer liability.--Any regulated 29 company as defined in s. 350.111, any electric utility as 30 defined in s. 366.02(2), any utility as defined in s. 31 367.021(12) or s.367.022(2) and (7), and any provider of 64 11:46 AM 04/28/03 h0513c1c-25e8j
SENATE AMENDMENT Bill No. CS/HB 513 Amendment No. ___ Barcode 763356 1 communications services as defined in s. 202.11(3) may charge 2 for and include an optional waiver of liability provision in 3 their customer contracts under which the entity agrees to 4 waive all or a portion of the customer s liability for 5 service from the entity for a defined period in the event of 6 the customer s call to active military service, death, 7 disability, involuntary unemployment, qualification for family 8 leave, or similar qualifying event or condition. Such 9 provisions may not be effective in the customer s contract 10 with the entity unless affirmatively elected by the customer. 11 No such provision shall constitute insurance so long as the 12 provision is a contract between the entity and its customer. 13 Section 76. Section 717.1071, Florida Statutes, is 14 created to read: 15 717.1071 Lost owners of unclaimed demutualization, 16 rehabilitation, or related reorganization proceeds.-- 17 (1) Property distributable in the course of a 18 demutualization, rehabilitation, or related reorganization of 19 an insurance company is deemed abandoned 2 years after the 20 date the property is first distributable if, at the time of 21 the first distribution, the last known address of the owner on 22 the books and records of the holder is known to be incorrect 23 or the distribution or statements are returned by the post 24 office as undeliverable; and the owner has not communicated in 25 writing with the holder or its agent regarding the interest or 26 otherwise communicated with the holder regarding the interest 27 as evidenced by a memorandum or other record on file with the 28 holder or its agent. 29 (2) Property distributable in the course of 30 demutualization, rehabilitation, or related reorganization of 31 a mutual insurance company that is not subject to subsection 65 11:46 AM 04/28/03 h0513c1c-25e8j
SENATE AMENDMENT Bill No. CS/HB 513 Amendment No. ___ Barcode 763356 1 (1) shall be reportable as otherwise provided by this chapter. 2 (3) Property subject to this section shall be reported 3 and delivered no later than May 1 as of the preceding December 4 31, however the initial report under this section shall be 5 filed no later than November 1, 2003, as of December 31, 2002. 6 Section 77. Subsection (8) of section 624.430, Florida 7 Statutes, is renumbered as subsection (9), and new subsection 8 (8) is added to said section, to read: 9 624.430 Withdrawal of insurer or discontinuance of 10 writing certain kinds or lines of insurance.-- 11 (8) Notwithstanding subsection (7), any insurer 12 desiring to surrender its certificate of authority, withdraw 13 from this state, or discontinue the writing of any one or 14 multiple kinds or lines of insurance in this state is expected 15 to have availed itself of all reasonably available 16 reinsurance. Reasonably available reinsurance shall include 17 unrealized reinsurance, which is defined as reinsurance 18 recoverable on known losses incurred and due under valid 19 reinsurance contracts that have not been identified in the 20 normal course of business and have not been reported in 21 financial statements filed with the Office of Insurer 22 Regulation. Within 90 days after surrendering its certificate 23 of authority, withdrawing from this state, or discontinuing 24 the writing of any one or multiple kinds or lines of insurance 25 in this state, the insurer shall certify to the Director of 26 the Office of Insurer Regulation that the insurer has engaged 27 an independent third party to search for unrealized 28 reinsurance, and that the insurer has made all relevant books 29 and records available to such third party. The compensation to 30 such third party may be a percentage of unrealized reinsurance 31 identified and collected. 66 11:46 AM 04/28/03 h0513c1c-25e8j
SENATE AMENDMENT Bill No. CS/HB 513 Amendment No. ___ Barcode 763356 1 Section 78. Subsection (11) of section 626.7451, 2 Florida Statutes, is amended to read: 3 626.7451 Managing general agents; required contract 4 provisions.--No person acting in the capacity of a managing 5 general agent shall place business with an insurer unless 6 there is in force a written contract between the parties which 7 sets forth the responsibility for a particular function, 8 specifies the division of responsibilities, and contains the 9 following minimum provisions: 10 (11) A licensed managing general agent, when placing 11 business with an insurer under this code, may charge a 12 per-policy fee not to exceed $40 $25. In no instance shall the 13 aggregate of per-policy fees for a placement of business 14 authorized under this section, when combined with any other 15 per-policy fee charged by the insurer, result in per-policy 16 fees which exceed the aggregate amount of $40 $25. The 17 per-policy fee shall be a component of the insurer's rate 18 filing and shall be fully earned. A managing general agent 19 that collects a per-policy fee shall remit a minimum of $5 per 20 policy to the insurer for the funding of a Special 21 Investigations Unit dedicated to the prevention of motor 22 vehicle insurance fraud, $2 per policy to the Division of 23 Insurance Fraud of the Department of Financial Services which 24 shall be dedicated to the prevention and detection of motor 25 vehicle insurance fraud, and $3 per policy to the Office of 26 Statewide Prosecution which shall be dedicated to the 27 prosecution of motor vehicle insurance fraud. Any insurer that 28 writes directly without a managing general agent and that 29 charges a per-policy fee may charge an additional $5 per 30 policy to fund its Special Investigations Unit, which shall be 31 dedicated to the prevention of motor vehicle insurance fraud, 67 11:46 AM 04/28/03 h0513c1c-25e8j
SENATE AMENDMENT Bill No. CS/HB 513 Amendment No. ___ Barcode 763356 1 $2 per policy to the Division of Insurance Fraud of the 2 Department of Financial Services, which shall be dedicated to 3 the prevention and detection of motor vehicle insurance fraud, 4 and $3 per policy to the Office of Statewide Prosecution which 5 shall be dedicated to the prosecution of motor vehicle 6 insurance fraud. 7 For the purposes of this section and ss. 626.7453 and 8 626.7454, the term "controlling person" or "controlling" has 9 the meaning set forth in s. 625.012(5)(b)1., and the term 10 "controlled person" or "controlled" has the meaning set forth 11 in s. 625.012(5)(b)2. 12 Section 79. Section 624.4623, Florida Statutes, is 13 created to read: 14 624.4623 Independent Educational Institution 15 Self-Insurance Funds-- 16 (1) Notwithstanding any other provision of law, any 17 two or more independent nonprofit colleges or universities 18 accredited by the Commission on Colleges of the Southern 19 Association of Colleges and Schools or independent, nonprofit, 20 accredited secondary educational institutions, located in and 21 chartered by the state of Florida, may form a self-insurance 22 fund for the purpose of pooling and spreading liabilities of 23 its group members in any property or casualty risk or surety 24 insurance or securing the payment of benefits under chapter 25 440, provided the independent educational institution 26 self-insurance fund that is created must: 27 (a) Have annual normal premiums in excess of $5 28 million; 29 (b) Maintain a continuing program of excess insurance 30 coverage and reserve evaluation to protect the financial 31 stability of the fund in an amount and manner determined by a 68 11:46 AM 04/28/03 h0513c1c-25e8j
SENATE AMENDMENT Bill No. CS/HB 513 Amendment No. ___ Barcode 763356 1 qualified and independent actuary; 2 (c) Submit annually an audited fiscal year-end 3 financial statement by an independent certified public 4 accountant within 6 months after the end of the fiscal year to 5 the office; and 6 (d) Have a governing body which is comprised entirely 7 of independent educational institution officials. 8 (2) An independent educational institution 9 self-insurance fund that meets the requirements of this 10 section is not subject to s. 624.4621 and is not required to 11 file any report with the department under s. 440.38(2)(b) 12 which is uniquely required of group self-insurer funds 13 qualified under s. 624.4621. If any of the requirements of 14 this section are not met, the independent educational 15 self-insurance fund is subject to the requirements of s. 16 624.4621. 17 Section 80. Present subsections (6), (7), (8), (9), 18 and (10) are renumbered (7), (8), (9), (10), and (11), 19 respectively, and new subsection (6) is added to section 20 624.81, Florida Statutes, to read: 21 624.81 Notice to comply with written requirements of 22 department; noncompliance.-- 23 (6) Any insurer subject to administrative supervision 24 is expected to avail itself of all reasonably available 25 reinsurance. Reasonably available reinsurance shall include 26 unrealized reinsurance, which is defined as reinsurance 27 recoverable on known losses incurred and due under valid 28 reinsurance contracts that have not been identified in the 29 normal course of business and have not been reported in 30 financial statements filed with the Office of Insurance 31 Regulation. Within 90 days of being placed under 69 11:46 AM 04/28/03 h0513c1c-25e8j
SENATE AMENDMENT Bill No. CS/HB 513 Amendment No. ___ Barcode 763356 1 administrative supervision, the insurer shall certify to the 2 Director of the Office of Insurance Regulation that the 3 insurer has engaged an independent third party to search for 4 unrealized reinsurance, and that the insurer has made all 5 relevant books and records available to the third party. The 6 compensation to the third party may be a percentage of 7 unrealized reinsurance identified and collected. 8 (7)(6) If the department and the insurer are unable to 9 agree on the provisions of the plan, the department may 10 require the insurer to take such corrective action as may be 11 reasonably necessary to remove the causes and conditions 12 giving rise to the need for administrative supervision. 13 (8)(7) The insurer shall have 60 days, or a longer 14 period of time as designated by the department but not to 15 exceed 120 days, after the date of the written agreement or 16 the receipt of the department's plan within which to comply 17 with the requirements of the department. At the conclusion of 18 the initial period of supervision, the department may extend 19 the supervision in increments of 60 days or longer, not to 20 exceed 120 days, if conditions justifying supervision exist. 21 Each extension of supervision shall provide the insurer with a 22 point of entry pursuant to chapter 120. 23 (9)(8) The initiation or pendency of administrative 24 proceedings arising from actions taken under this section 25 shall not preclude the department from initiating judicial 26 proceedings to place an insurer in conservation, 27 rehabilitation, or liquidation or initiating other delinquency 28 proceedings however designated under the laws of this state. 29 (10)(9) If it is determined that the conditions giving 30 rise to administrative supervision have been remedied so that 31 the continuance of its business is no longer hazardous to the 70 11:46 AM 04/28/03 h0513c1c-25e8j
SENATE AMENDMENT Bill No. CS/HB 513 Amendment No. ___ Barcode 763356 1 public or to its insureds, the department shall release the 2 insurer from supervision. 3 (11)(10) The department may adopt rules to define 4 standards of hazardous financial condition and corrective 5 action substantially similar to that indicated in the National 6 Association of Insurance Commissioners' 1997 "Model Regulation 7 to Define Standards and Commissioner's Authority for Companies 8 Deemed to be in Hazardous Financial Condition," which are 9 necessary to implement the provisions of this part. 10 11 (Redesignate subsequent sections.) 12 13 14 ================ T I T L E A M E N D M E N T =============== 15 And the title is amended as follows: 16 On line 18, after the semicolon, 17 18 insert: 19 amending ss. 624.04, 624.303, 624.313, 624.317, 20 624.504, 624.506, 624.521, 626.022, 626.112, 21 626.733, 626.7354, 626.741, 626.753, 626.829, 22 634.171, 634.420, 642.034, 642.036, and 23 642.045, F.S.; deleting references to 24 solicitors to conform to prior deletions; 25 amending ss. 624.34, 626.202, and 626.601, 26 F.S.; revising certain fingerprinting 27 requirements; amending s. 624.501, F.S.; 28 providing for a fee for certain late 29 appointment filings; amending s. 626.015, F.S.; 30 deleting a definition of administrative agent; 31 amending s. 626.171, F.S.; revising applicant 71 11:46 AM 04/28/03 h0513c1c-25e8j
SENATE AMENDMENT Bill No. CS/HB 513 Amendment No. ___ Barcode 763356 1 address requirements; specifying required 2 background investigation information; amending 3 ss. 626.175, 626.7355, 626.731, 626.831, 4 626.8414, 626.865, 626.866, 626.867, 626.874, 5 626.9916, 648.34, and 648.355, F.S.; revising 6 licensure eligibility criteria to specify 7 United States citizenship or certain legal 8 alien status; providing for the adoption of 9 rules; amending s. 626.201, F.S.; revising 10 certain fingerprint requirements; amending s. 11 626.221, F.S.; revising appointment application 12 filing time period requirements; amending s. 13 626.2815, F.S.; requiring certain continuing 14 education hour and subject requirements; 15 deleting references to solicitors to conform to 16 prior deletions; revising a continuing 17 education board member title; amending s. 18 626.2816, F.S.; revising a cross-reference; 19 clarifying a continuing education requirement; 20 amending s. 626.2817, F.S.; deleting a 21 prelicensure rule requirement; amending s. 22 626.311, F.S.; providing for the appointment of 23 certain licensees; amending s. 626.321, F.S.; 24 deleting references to solicitors to conform to 25 prior deletions; providing for one application 26 for a license and payment of applicable fees; 27 amending s. 626.322, F.S.; clarifying the 28 effect of insurer authorization of effectuation 29 of certain appointments; amending s. 626.341, 30 F.S.; including a department-designated person 31 to administer appointment processes for certain 72 11:46 AM 04/28/03 h0513c1c-25e8j
SENATE AMENDMENT Bill No. CS/HB 513 Amendment No. ___ Barcode 763356 1 appointment-related actions; amending s. 2 626.371, F.S.; providing requirements for 3 submittal and effective date of appointments; 4 imposing a delinquent fee for certain 5 notification failures; providing fee payment 6 requirements; amending s. 626.381, F.S.; 7 including a department-designated person to 8 administer appointment processes for certain 9 appointment-related actions; providing for a 10 fee for certain late appointment filings; 11 amending s. 626.451, F.S.; including a 12 department-designated person to administer 13 appointment processes for certain 14 appointment-related actions; clarifying the 15 effect of insurer authorization of effectuation 16 of certain appointments; requiring licensee 17 notification of the department of certain 18 criminal proceedings; amending s. 626.461, 19 F.S.; including a department-designated person 20 to administer appointment processes for certain 21 appointment-related actions; deleting 22 references to solicitors to conform to prior 23 deletions; amending s. 626.471, F.S.; including 24 a department-designated person to administer 25 appointment processes for certain 26 appointment-related actions; providing for 27 termination of certain appointments; requiring 28 notice of termination; amending s. 626.843, 29 F.S.; revising procedures for renewing title 30 insurance agent appointments; amending s. 31 626.7315, F.S.; providing an exception to a 73 11:46 AM 04/28/03 h0513c1c-25e8j
SENATE AMENDMENT Bill No. CS/HB 513 Amendment No. ___ Barcode 763356 1 prohibition against certain individuals 2 receiving money on account of or for an 3 insurer; amending ss. 626.732, 626.7851, 4 626.8311, and 626.8417, F.S.; revising certain 5 education subject requirements; amending s. 6 626.7351, F.S.; revising licensure eligibility 7 criteria to specify United States citizenship 8 or certain legal alien status; revising certain 9 education subject requirements; providing 10 additional education course requirements; 11 amending s. 626.785, F.S.; revising licensure 12 eligibility criteria to specify United States 13 citizenship or certain legal alien status; 14 increasing the amount of coverage for 15 burial-related expenses that may be sold by a 16 life insurance agent under contract with a 17 funeral establishment; amending s. 626.797, 18 F.S.; revising an association title; amending 19 s. 626.869, F.S.; deleting a provision relating 20 to limited licenses for certain adjusters; 21 revising certain education requirements; 22 amending s. 626.878, F.S.; specifying 23 implementation requirements for the department' 24 s ethics rules; amending s. 626.9541, F.S.; 25 revising sliding as an unfair method of 26 competition and unfair or deceptive act or 27 practice; amending s. 632.634, F.S.; specifying 28 registration of a society only upon department 29 request; amending s. 627.7295, F.S.; revising 30 the per-policy fees that general lines agents 31 may charge on certain policies; amending s. 74 11:46 AM 04/28/03 h0513c1c-25e8j
SENATE AMENDMENT Bill No. CS/HB 513 Amendment No. ___ Barcode 763356 1 648.27, F.S.; imposing a delinquent fee for 2 certain notification failures; providing fee 3 payment requirements; deleting obsolete runner 4 references; amending s. 648.382, F.S.; 5 clarifying the effect of insurer authorization 6 of effectuation of certain appointments; 7 imposing a delinquent fee for certain 8 notification failures; providing fee payment 9 requirements; amending s. 648.383, F.S.; 10 including a department-designated person to 11 administer appointment processes for certain 12 appointment-related actions; providing for a 13 fee for certain late appointment filings; 14 amending s. 648.50, F.S.; deleting obsolete 15 runner references; repealing s. 626.032, F.S., 16 relating to continuing education and required 17 designation of administrative agents; repealing 18 s. 626.361, F.S., relating to the effective 19 date of appointments; amending s. 627.351, 20 F.S.; providing requirements for the 21 corporation relating to personal lines 22 residential wind-only policies; requiring the 23 corporation to develop a wind-only rate making 24 methodology; requiring a report; requiring the 25 Citizens Property Insurance Corporation to 26 certify at certain intervals that its rates 27 comply with requirements to be set a certain 28 levels relative to other insurers; authorizing 29 the Office of Insurance Regulation to review 30 and act upon such certification; requiring the 31 corporation to appoint a rate methodology panel 75 11:46 AM 04/28/03 h0513c1c-25e8j
SENATE AMENDMENT Bill No. CS/HB 513 Amendment No. ___ Barcode 763356 1 to make recommendations for the use of 2 additional ratemaking methods, including the 3 use of a rate equalization surcharge to assure 4 that the cost of coverage is sufficient to 5 comply with state law; requiring the 6 corporation to provide a related report to the 7 Legislature and a plan for implementing the 8 additional ratemaking methods; specifying how 9 the plan shall apply to agent commissions; 10 requiring the corporation to develop a notice 11 to policyholders; creating s. 624.105, F.S.; 12 providing for waiver of customer liability for 13 certain fess by providers of utility and 14 telecommunications services under certain 15 circumstances; creating s. 717.1071, F.S.; 16 providing procedures, requirements, and 17 limitations on lost owners of certain unclaimed 18 insurance entity activity proceeds; amending s. 19 624.430, F.S.; requiring certain insurers to 20 obtain reasonably available reinsurance under 21 certain circumstances; providing procedures and 22 criteria; amending s. 626.7451, F.S.; providing 23 a per-policy fee to be remitted to the 24 insurer's Special Investigations Unit, the 25 Division of Insurance Fraud of the Department 26 of Financial Services, and the Office of 27 Statewide Prosecution for purposes of 28 preventing, detecting, and prosecuting motor 29 vehicle insurance fraud; creating s. 624.4623, 30 F.S.; authorizing two or more independent 31 colleges or universities to form a 76 11:46 AM 04/28/03 h0513c1c-25e8j
SENATE AMENDMENT Bill No. CS/HB 513 Amendment No. ___ Barcode 763356 1 self-insurance fund; providing specific 2 requirements; amending s. 624.81, F.S.; 3 requiring insurers that are under 4 administrative supervision to avail themselves 5 of all reasonably available reinsurance; 6 providing for a third party to search for 7 reinsurance; providing for reimbursing the 8 third party; 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 25 26 27 28 29 30 31 77 11:46 AM 04/28/03 h0513c1c-25e8j