ENROLLED HB 0513, Engrossed 2 2003 Legislature
1	A bill to be entitled
2	An act relating to insurance claims and premium payments;
3	amending s. 627.4035, F.S.; providing for the payment of
4	insurance premiums by a debit or credit card, automatic
5	electronic funds transfer, or payroll deduction plan;
6	amending s. 627.7015, F.S.; defining "claim" for purposes
7	of alternative procedures for resolution of disputed
8	property insurance claims; amending s. 627.901, F.S.;
9	revising limits on service charges for premium financing;
10	amending ss. 624.04, 624.303, 624.313, 624.317, 624.504,
11	624.506, 624.521, 626.022, 626.112, 626.733, 626.7354,
12	626.741, 626.753, 626.829, 634.171, 634.420, 642.034,
13	642.036, and 642.045, F.S.; deleting references to
14	solicitors to conform to prior deletions; amending ss.
15	624.34, 626.202, and 626.601, F.S.; revising certain
16	fingerprinting requirements; amending s. 624.501, F.S.;
17	providing for a fee for certain late appointment filings;
18	amending s. 626.015, F.S.; deleting a definition of
19	administrative agent; amending s. 626.171, F.S.; revising
20	applicant address requirements; specifying required
21	background investigation information; amending ss.
22	626.175, 626.7355, 626.731, 626.831, 626.8414, 626.865,
23	626.866, 626.867, 626.874, 626.9916, 648.34, and 648.355,
24	F.S.; revising licensure eligibility criteria to specify
25	United States citizenship or certain legal alien status;
26	providing for the adoption of rules; amending s. 626.201,
27	F.S.; revising certain fingerprint requirements; amending
28	s. 626.221, F.S.; revising appointment application filing
29	time period requirements; amending s. 626.2815, F.S.;
30	requiring certain continuing education hour and subject
31	requirements; deleting references to solicitors to conform
32	to prior deletions; revising a continuing education board
33	member title; amending s. 626.2816, F.S.; revising a
34	cross-reference; clarifying a continuing education
35	requirement; amending s. 626.2817, F.S.; deleting a
36	prelicensure rule requirement; amending s. 626.311, F.S.;
37	providing for the appointment of certain licensees;
38	amending s. 626.321, F.S.; deleting references to
39	solicitors to conform to prior deletions; providing for
40	one application for a license and payment of applicable
41	fees; amending s. 626.322, F.S.; clarifying the effect of
42	insurer authorization of effectuation of certain
43	appointments; amending s. 626.341, F.S.; including a
44	department-designated person to administer appointment
45	processes for certain appointment-related actions;
46	amending s. 626.371, F.S.; providing requirements for
47	submittal and effective date of appointments; imposing a
48	delinquent fee for certain notification failures;
49	providing fee payment requirements; amending s. 626.381,
50	F.S.; including a department-designated person to
51	administer appointment processes for certain appointment-
52	related actions; providing for a fee for certain late
53	appointment filings; amending s. 626.451, F.S.; including
54	a department-designated person to administer appointment
55	processes for certain appointment-related actions;
56	clarifying the effect of insurer authorization of
57	effectuation of certain appointments; requiring licensee
58	notification of the department of certain criminal
59	proceedings; amending s. 626.461, F.S.; including a
60	department-designated person to administer appointment
61	processes for certain appointment-related actions;
62	deleting references to solicitors to conform to prior
63	deletions; amending s. 626.471, F.S.; including a
64	department-designated person to administer appointment
65	processes for certain appointment-related actions;
66	providing for termination of certain appointments;
67	requiring notice of termination; amending s. 626.843,
68	F.S.; revising procedures for renewing title insurance
69	agent appointments; amending s. 626.7315, F.S.; providing
70	an exception to a prohibition against certain individuals
71	receiving money on account of or for an insurer; amending
72	ss. 626.732, 626.7851, 626.8311, and 626.8417, F.S.;
73	revising certain education subject requirements; amending
74	s. 626.7351, F.S.; revising licensure eligibility criteria
75	to specify United States citizenship or certain legal
76	alien status; revising certain education subject
77	requirements; providing additional education course
78	requirements; amending s. 626.785, F.S.; revising
79	licensure eligibility criteria to specify United States
80	citizenship or certain legal alien status; increasing the
81	amount of coverage for burial-related expenses that may be
82	sold by a life insurance agent under contract with a
83	funeral establishment; amending s. 626.797, F.S.; revising
84	an association title; amending s. 626.869, F.S.; deleting
85	a provision relating to limited licenses for certain
86	adjusters; revising certain education requirements;
87	amending s. 626.878, F.S.; specifying implementation
88	requirements for the department's ethics rules; amending
89	s. 626.9541, F.S.; clarifying activities that constitute
90	illegal dealings in premiums; revising sliding as an
91	unfair method of competition and unfair or deceptive act
92	or practice; amending s. 632.634, F.S.; specifying
93	registration of a society only upon department request;
94	amending s. 648.27, F.S.; imposing a delinquent fee for
95	certain notification failures; providing fee payment
96	requirements; deleting obsolete runner references;
97	amending s. 648.382, F.S.; clarifying the effect of
98	insurer authorization of effectuation of certain
99	appointments; imposing a delinquent fee for certain
100	notification failures; providing fee payment requirements;
101	amending s. 648.383, F.S.; including a department-
102	designated person to administer appointment processes for
103	certain appointment-related actions; providing for a fee
104	for certain late appointment filings; amending s. 648.50,
105	F.S.; deleting obsolete runner references; repealing s.
106	626.032, F.S., relating to continuing education and
107	required designation of administrative agents; repealing
108	s. 626.361, F.S., relating to the effective date of
109	appointments; amending s. 627.351, F.S.; providing
110	requirements for the corporation relating to personal
111	lines residential wind-only policies; requiring the
112	corporation to develop a wind-only rate making
113	methodology; requiring a report; requiring the Citizens
114	Property Insurance Corporation to certify at certain
115	intervals that its rates comply with requirements to be
116	set a certain levels relative to other insurers;
117	authorizing the Office of Insurance Regulation to review
118	and act upon such certification; requiring the corporation
119	to appoint a rate methodology panel to make
120	recommendations for the use of additional ratemaking
121	methods, including the use of a rate equalization
122	surcharge to assure that the cost of coverage is
123	sufficient to comply with state law; requiring the
124	corporation to provide a related report to the Legislature
125	and a plan for implementing the additional ratemaking
126	methods; specifying how the plan shall apply to agent
127	commissions; requiring the corporation to develop a notice
128	to policyholders; creating s. 624.105, F.S.; providing for
129	waiver of customer liability for certain fess by providers
130	of utility and telecommunications services under certain
131	circumstances; creating s. 717.1071, F.S.; providing
132	procedures, requirements, and limitations on lost owners
133	of certain unclaimed insurance entity activity proceeds;
134	amending s. 624.430, F.S.; requiring certain insurers to
135	obtain reasonably available reinsurance under certain
136	circumstances; providing procedures and criteria; amending
137	s. 626.7451, F.S.; providing a per-policy fee to be
138	remitted to the insurer's Special Investigations Unit, the
139	Division of Insurance Fraud of the Department of Financial
140	Services, and the Office of Statewide Prosecution for
141	purposes of preventing, detecting, and prosecuting motor
142	vehicle insurance fraud; creating s. 624.4623, F.S.;
143	authorizing two or more independent colleges or
144	universities to form a self-insurance fund; providing
145	specific requirements; amending s. 624.81, F.S.; requiring
146	insurers that are under administrative supervision to
147	avail themselves of all reasonably available reinsurance;
148	providing for a third party to search for reinsurance;
149	providing for reimbursing the third party; amending s.
150	626.9541, F.S.; prohibiting insurers from refusing to
151	insure solely because the insured or applicant is a public
152	official; providing an effective date.
153
154	Be It Enacted by the Legislature of the State of Florida:
155
156	Section 1. Subsection (1) of section 627.4035, Florida
157	Statutes, is amended to read:
158	627.4035 Cash payment of premiums; claims.--
159	(1) The premiums for insurance contracts issued in this
160	state or covering risk located in this state shall be paid in
161	cash consisting of coins, currency, checks, or money orders or
162	by using a debit card, credit card, automatic electronic funds
163	transfer, or payroll deduction plan.
164	Section 2. Subsection (9) is added to section 627.7015,
165	Florida Statutes, to read:
166	627.7015 Alternative procedure for resolution of disputed
167	property insurance claims.--
168	(9) For purposes of this section, the term "claim" refers
169	to any dispute between an insurer and an insured relating to a
170	material issue of fact other than a dispute:
171	(a) With respect to which the insurer has a reasonable
172	basis to suspect fraud;
173	(b) Where, based on agreed-upon facts as to the cause of
174	loss, there is no coverage under the policy;
175	(c) With respect to which the insurer has a reasonable
176	basis to believe that the claimant has intentionally made a
177	material misrepresentation of fact which is relevant to the
178	claim, and the entire request for payment of a loss has been
179	denied on the basis of the material misrepresentation; or
180	(d) With respect to which the amount in controversy is
181	less than $500, unless the parties agree to mediate a dispute
182	involving a lesser amount.
183	Section 3. Subsection (1) of section 627.901, Florida
184	Statutes, is amended to read:
185	627.901 Premium financing by an insurance agent or
186	agency.--
187	(1) A general lines agent may make reasonable service
188	charges for financing insurance premiums on policies issued or
189	business produced by such an agent or agency, s. 626.9541
190	notwithstanding. The service charge shall not exceed $3$1per
191	installment, or a $6 total service charge per year, for any
192	premium balance of $120 or less. For any premium balance greater
193	than $120 but not more than $220, the service charge shall not
194	exceed $9 per year. The maximum service charge for any premium
195	balance greater than $220 shall not exceed $36$12per year. In
196	lieu of such service charges, an insurance agent or agency, at
197	the sole discretion of such agent or agency, may charge a rate
198	of interest not to exceed 18 percent simple interest per year
199	on:
200	(a) The unpaid balance; or
201	(b) The average unpaid balance as billed over the term of
202	the policy and subject to endorsement changes. The interest
203	authorized by this paragraph may be billed in equal
204	installments.
205	Section 4. Section 624.04, Florida Statutes, is amended to
206	read:
207	624.04 "Person" defined.--"Person" includes an individual,
208	insurer, company, association, organization, Lloyds, society,
209	reciprocal insurer or interinsurance exchange, partnership,
210	syndicate, business trust, corporation, agent, general agent,
211	broker, solicitor,service representative, adjuster, and every
212	legal entity.
213	Section 5. Subsection (2) of section 624.303, Florida
214	Statutes, is amended to read:
215	624.303 Seal; certified copies as evidence.--
216	(2) All certificates executed by the department, other
217	than licenses of agents, solicitors,or adjusters or similar
218	licenses or permits, shall bear its seal.
219	Section 6. Paragraph (a) of subsection (2) of section
220	624.313, Florida Statutes, is amended to read:
221	624.313 Publications.--
222	(2) The department may prepare and have printed and
223	published in pamphlet or book form the following:
224	(a) As needed, questions and answers for the use of
225	persons applying for an examination for licensing as agents or
226	solicitorsfor property, casualty, surety, health, and
227	miscellaneous insurers.
228	Section 7. Subsection (2) of section 624.317, Florida
229	Statutes, is amended to read:
230	624.317 Investigation of agents, adjusters,
231	administrators, service companies, and others.--If it has reason
232	to believe that any person has violated or is violating any
233	provision of this code, or upon the written complaint signed by
234	any interested person indicating that any such violation may
235	exist, the department shall conduct such investigation as it
236	deems necessary of the accounts, records, documents, and
237	transactions pertaining to or affecting the insurance affairs of
238	any:
239	(2) Insurance agent or, customer representative, or
240	solicitor, subject to the requirements of s. 626.601.
241	Section 8. Section 624.34, Florida Statutes, is amended to
242	read:
243	624.34 Authority of Department of Law Enforcement to
244	accept fingerprints of, and exchange criminal history records
245	with respect to, certain persons.--
246	(1) The Department of Law Enforcement may accept
247	fingerprints of organizers, incorporators, subscribers,
248	officers, stockholders, directors, or any other persons
249	involved, directly or indirectly, in the organization,
250	operation, or management of:
251	(a) Any insurer or proposed insurer transacting or
252	proposing to transact insurance in this state.
253	(b) Any other entity which is examined or investigated or
254	which is eligible to be examined or investigated under the
255	provisions of the Florida Insurance Code.
256	(2) The Department of Law Enforcement may accept
257	fingerprints of individuals who apply for a license as an agent,
258	customer representative, adjuster, service representative, or
259	managing general agent or the fingerprints of the majority
260	owner, sole proprietor, partners, officers, and directors of a
261	corporation or other legal entity that applies for licensure
262	with the department under the provisions of the Florida
263	Insurance Code.
264	(3) The Department of Law Enforcement may, to the extent
265	provided for by federal law, exchange state, multistate, and
266	federal criminal history records with the department and the
267	office for the purpose of the issuance, denial,suspension, or
268	revocation of a certificate of authority, certification,or
269	license to operate in this state.
270	(4) The Department of Law Enforcement may accept
271	fingerprints of any other person required by statute or rule to
272	submit fingerprints to the department or office or any applicant
273	or licensee regulated by the department or office who is
274	required to demonstrate that he or she has not been convicted of
275	or pled guilty or nolo contendere to a felony or a misdemeanor.
276	(5) The Department of Law Enforcement shall, upon receipt
277	of fingerprints from the department or office, submit the
278	fingerprints to the Federal Bureau of Investigation to check
279	federal criminal history records.
280	(6) Statewide criminal records obtained through the
281	Department of Law Enforcement, federal criminal records obtained
282	through the Federal Bureau of Investigation, and local criminal
283	records obtained through local law enforcement agencies shall be
284	used by the department and office for the purpose of issuance,
285	denial, suspension, or revocation of certificates of authority,
286	certifications, or licenses issued to operate in this state.
287	Section 9. Paragraph (b) of subsection (6) of section
288	624.501, Florida Statutes, is amended, and subsection (28) is
289	added to that section, to read:
290	624.501 Filing, license, appointment, and miscellaneous
291	fees.--The department shall collect in advance, and persons so
292	served shall pay to it in advance, fees, licenses, and
293	miscellaneous charges as follows:
294	(6) Insurance representatives, property, marine, casualty,
295	and surety insurance.
296	(b) Solicitor's orCustomer representative's original
297	appointment and biennial renewal or continuation thereof:
298	Appointment fee....$42.00
299	State tax....12.00
300	County tax....6.00
301	Total....$60.00
302	(28) Late filing of appointment renewals for agents,
303	adjusters, and other insurance representatives, each
304	appointment....$20.00
305	Section 10. Section 624.504, Florida Statutes, is amended
306	to read:
307	624.504 Liability for state, county tax.--
308	(1)Each authorized insurer that uses insurance agents in
309	this state shall be liable for and shall pay the state and
310	county taxes required therefor under s. 624.501 or s. 624.505.
311	(2) Each insurance agent in this state that uses
312	solicitors shall be liable for and shall pay the state and
313	county taxes required therefor under s. 624.501.
314	Section 11. Subsection (1) of section 624.506, Florida
315	Statutes, is amended to read:
316	624.506 County tax; deposit and remittance.--
317	(1) The Insurance Commissioner and Treasurer shall deposit
318	in the Agents and SolicitorsCounty Tax Trust Fund all moneys
319	accepted as county tax under this part. She or he shall keep a
320	separate account for all moneys so collected for each county
321	and, after deducting therefrom the service charges provided for
322	in s. 215.20, shall remit the balance to the counties.
323	Section 12. Subsection (1) of section 624.521, Florida
324	Statutes, is amended to read:
325	624.521 Deposit of certain tax receipts; refund of
326	improper payments.--
327	(1) The Department of Insurance shall promptly deposit in
328	the State Treasury to the credit of the Insurance Commissioner's
329	Regulatory Trust Fund all "state tax" portions of agents' and
330	solicitors'licenses collected under s. 624.501 necessary to
331	fund the Division of Insurance Fraud. The balance of the tax
332	shall be credited to the General Fund. All moneys received by
333	the Department of Insurance not in accordance with the
334	provisions of this code or not in the exact amount as specified
335	by the applicable provisions of this code shall be returned to
336	the remitter. The records of the department shall show the date
337	and reason for such return.
338	Section 13. Section 626.015, Florida Statutes, is amended
339	to read:
340	626.015 Definitions.--As used in this part:
341	(1) "Adjuster" means a public adjuster as defined in s.
342	626.854, independent adjuster as defined in s. 626.855, or
343	company employee adjuster as defined in s. 626.856.
344	(2) "Administrative agent" means a life agent or health
345	agent who:
346	(a) Is employed by a full-time licensed life agent or
347	health agent who shall supervise and be accountable for the
348	actions of the administrative agent.
349	(b) Performs primarily administrative functions.
350	(c) Receives no insurance commissions.
351	(d) Does not solicit or transact business outside of the
352	confines of an insurance agency office.
353	(2)(3)"Agent" means a general lines agent, life agent,
354	health agent, or title agent, or all such agents, as indicated
355	by context. The term "agent" includes an insurance producer or
356	producer, but does not include a customer representative,
357	limited customer representative, or service representative.
358	(3)(4)"Appointment" means the authority given by an
359	insurer or employer to a licensee to transact insurance or
360	adjust claims on behalf of an insurer or employer.
361	(4)(5)"Customer representative" means an individual
362	appointed by a general lines agent or agency to assist that
363	agent or agency in transacting the business of insurance from
364	the office of that agent or agency.
365	(5)(6)"Department" means the Department of Insurance.
366	(6)(7)"General lines agent" means an agent transacting
367	any one or more of the following kinds of insurance:
368	(a) Property insurance.
369	(b) Casualty insurance, including commercial liability
370	insurance underwritten by a risk retention group, a commercial
371	self-insurance fund as defined in s. 624.462, or a workers'
372	compensation self-insurance fund established pursuant to s.
373	624.4621.
374	(c) Surety insurance.
375	(d) Health insurance, when transacted by an insurer also
376	represented by the same agent as to property or casualty or
377	surety insurance.
378	(e) Marine insurance.
379	(7)(8)"Health agent" means an agent representing a health
380	maintenance organization or, as to health insurance only, an
381	insurer transacting health insurance.
382	(8)(9)"Home state" means the District of Columbia and any
383	state or territory of the United States in which an insurance
384	agent maintains his or her principal place of residence and is
385	licensed to act as an insurance agent.
386	(9)(10)"Insurance agency" means a business location at
387	which an individual, firm, partnership, corporation,
388	association, or other entity, other than an employee of the
389	individual, firm, partnership, corporation, association, or
390	other entity and other than an insurer as defined by s. 624.03
391	or an adjuster as defined by subsection (1), engages in any
392	activity or employs individuals to engage in any activity which
393	by law may be performed only by a licensed insurance agent.
394	(10)(11)"License" means a document issued by the
395	department authorizing a person to be appointed to transact
396	insurance or adjust claims for the kind, line, or class of
397	insurance identified in the document.
398	(11)(12)"Life agent" means an individual representing an
399	insurer as to life insurance and annuity contracts, including
400	agents appointed to transact life insurance, fixed-dollar
401	annuity contracts, or variable contracts by the same insurer.
402	(12)(13)"Limited customer representative" means a
403	customer representative appointed by a general lines agent or
404	agency to assist that agent or agency in transacting only the
405	business of private passenger motor vehicle insurance from the
406	office of that agent or agency. A limited customer
407	representative is subject to the Florida Insurance Code in the
408	same manner as a customer representative, unless otherwise
409	specified.
410	(13)(14)"Limited lines insurance" means those categories
411	of business specified in ss. 626.321 and 635.011.
412	(14)(15)"Line of authority" means a kind, line, or class
413	of insurance an agent is authorized to transact.
414	(15)(16)(a) "Managing general agent" means any person
415	managing all or part of the insurance business of an insurer,
416	including the management of a separate division, department, or
417	underwriting office, and acting as an agent for that insurer,
418	whether known as a managing general agent, manager, or other
419	similar term, who, with or without authority, separately or
420	together with affiliates, produces directly or indirectly, or
421	underwrites an amount of gross direct written premium equal to
422	or more than 5 percent of the policyholder surplus as reported
423	in the last annual statement of the insurer in any single
424	quarter or year and also does one or more of the following:
425	1. Adjusts or pays claims.
426	2. Negotiates reinsurance on behalf of the insurer.
427	(b) The following persons shall not be considered managing
428	general agents:
429	1. An employee of the insurer.
430	2. A United States manager of the United States branch of
431	an alien insurer.
432	3. An underwriting manager managing all the insurance
433	operations of the insurer pursuant to a contract, who is under
434	the common control of the insurer subject to regulation under
435	ss. 628.801-628.803, and whose compensation is not based on the
436	volume of premiums written.
437	4. Administrators as defined by s. 626.88.
438	5. The attorney in fact authorized by and acting for the
439	subscribers of a reciprocal insurer under powers of attorney.
440	(16)(17)"Resident" means an individual domiciled and
441	residing in this state.
442	(17)(18)"Service representative" means an individual
443	employed by an insurer or managing general agent for the purpose
444	of assisting a general lines agent in negotiating and effecting
445	insurance contracts when accompanied by a licensed general lines
446	agent. A service representative shall not be simultaneously
447	licensed as a general lines agent in this state. This subsection
448	does not apply to life insurance.
449	(18)(19)"Uniform application" means the uniform
450	application of the National Association of Insurance
451	Commissioners for nonresident agent licensing, effective January
452	15, 2001, or subsequent versions adopted by rule by the
453	department.
454	Section 14. Subsection (1) of section 626.022, Florida
455	Statutes, is amended to read:
456	626.022 Scope of part.--
457	(1) This part applies as to insurance agents, solicitors,
458	service representatives, adjusters, and insurance agencies; as
459	to any and all kinds of insurance; and as to stock insurers,
460	mutual insurers, reciprocal insurers, and all other types of
461	insurers, except that:
462	(a) It does not apply as to reinsurance, except that ss.
463	626.011-626.031, ss. 626.102-626.181, ss. 626.191-626.211, ss.
464	626.291-626.301, s. 626.331, ss. 626.342-626.521, ss. 626.541-
465	626.591, and ss. 626.601-626.711 shall apply as to reinsurance
466	intermediaries as defined in s. 626.7492.
467	(b) The applicability of this chapter as to fraternal
468	benefit societies shall be as provided in chapter 632.
469	(c) It does not apply to a bail bond agent, as defined in
470	s. 648.25, except as provided in chapter 648 or chapter 903.
471	(d) This part does not apply to a certified public
472	accountant licensed under chapter 473 who is acting within the
473	scope of the practice of public accounting, as defined in s.
474	473.302, provided that the activities of the certified public
475	accountant are limited to advising a client of the necessity of
476	obtaining insurance, the amount of insurance needed, or the line
477	of coverage needed, and provided that the certified public
478	accountant does not directly or indirectly receive or share in
479	any commission or, referral fee, or solicitor's fee.
480	Section 15. Paragraph (a) of subsection (7) of section
481	626.112, Florida Statutes, is amended to read:
482	626.112 License and appointment required; agents, customer
483	representatives, adjusters, insurance agencies, service
484	representatives, managing general agents.--
485	(7)(a) No individual, firm, partnership, corporation,
486	association, or any other entity shall act in its own name or
487	under a trade name, directly or indirectly, as an insurance
488	agency, when required to be licensed by this subsection, unless
489	it complies with s. 626.172 with respect to possessing an
490	insurance agency license for each place of business at which it
491	engages in any activity which may be performed only by a
492	licensed insurance agent or solicitor.
493	Section 16. Paragraph (a) of subsection (2) and subsection
494	(5) of section 626.171, Florida Statutes, are amended to read:
495	626.171 Application for license.--
496	(2) In the application, the applicant shall set forth:
497	(a) His or her full name, age, social security number,
498	residence address, and place of business address, and mailing
499	address.
500	(5) An application for a license as an agent, customer
501	representative, adjuster, insurance agency, service
502	representative, managing general agent, or reinsurance
503	intermediary must be accompanied by a set of the individual
504	applicant's fingerprints, or, if the applicant is not an
505	individual, by a set of the fingerprints of the sole proprietor,
506	majority owner, partners, officers, and directors, on a form
507	adopted by rule of the department and accompanied by the
508	fingerprint processing fee set forth in s. 624.501. Fingerprints
509	shall be used to investigate the applicant's qualifications
510	pursuant to s. 626.201. The fingerprints shall be taken
511	certified by a law enforcement agency or other department-
512	approved entityofficer.
513	Section 17. Subsection (1) of section 626.175, Florida
514	Statutes, is amended to read:
515	626.175 Temporary licensing.--
516	(1) The department may issue a nonrenewable temporary
517	license for a period not to exceed 6 months authorizing
518	appointment of a general lines insurance agent or a life agent,
519	or an industrial fire or burglary agent, subject to the
520	conditions described in this section. The fees paid for a
521	temporary license and appointment shall be as specified in s.
522	624.501. Fees paid shall not be refunded after a temporary
523	license has been issued.
524	(a) An applicant for a temporary license must be:
525	1. A natural person at least 18 years of age.
526	2. A United States citizen or legal alien who possesses
527	work authorization from the United States Immigration and
528	Naturalization Service.
529	(b)(a)1. In the case of a general lines agent, the
530	department may issue a temporary license to an employee, a
531	family member, a business associate, or a personal
532	representative of a licensed general lines agent for the purpose
533	of continuing or winding up the business affairs of the agent or
534	agency in the event the licensed agent has died or become unable
535	to perform his or her duties because of military service or
536	illness or other physical or mental disability, subject to the
537	following conditions:
538	a. No other individual connected with the agent's business
539	may be licensed as a general lines agent.
540	b. The proposed temporary licensee shall be qualified for
541	a regular general lines agent license under this code except as
542	to residence, examination, education, or experience.
543	c. Application for the temporary license shall have been
544	made by the applicant upon statements and affidavit filed with
545	the department on forms prescribed and furnished by the
546	department.
547	d. Under a temporary license and appointment, the licensee
548	shall not represent any insurer not last represented by the
549	agent being replaced and shall not be licensed or appointed as
550	to any additional kind, line, or class of insurance other than
551	those covered by the last existing agency appointments of the
552	replaced agent. If an insurer withdraws from the agency during
553	the temporary license period, the temporary licensee may be
554	appointed by another similar insurer but only for the period
555	remaining under the temporary license.
556	2. A regular general lines agent license may be issued to
557	a temporary licensee upon meeting the qualifications for a
558	general lines agent license under s. 626.731.
559	(c)(b)In the case of a life agent, the department may
560	issue a temporary license:
561	1. To the executor or administrator of the estate of a
562	deceased individual licensed and appointed as a life agent at
563	the time of death;
564	2. To a surviving next of kin of the deceased individual,
565	if no administrator or executor has been appointed and
566	qualified; however, any license and appointment under this
567	subparagraph shall be canceled upon issuance of a license to an
568	executor or administrator under subparagraph 1.; or
569	3. To an individual otherwise qualified to be licensed as
570	an agent who has completed the educational or training
571	requirements prescribed in s. 626.7851 and has successfully sat
572	for the required examination prior to termination of such 6-
573	month period. The department may issue this temporary license
574	only in the case of a life agent to represent an insurer of the
575	industrial or ordinary-combination class.
576	(d)(c)In the case of a limited license authorizing
577	appointment as an industrial fire or burglary agent, the
578	department may issue a temporary license to an individual
579	otherwise qualified to be licensed as an agent who has completed
580	the educational or training requirements prescribed in s.
581	626.732 and has successfully sat for the required examination
582	prior to termination of the 6-month period.
583	Section 18. Section 626.202, Florida Statutes, is amended
584	to read:
585	626.202 Fingerprinting requirements.--If there is a change
586	in ownership or control of any entity licensed under this
587	chapter, or if a new partner, officer, or director is employed
588	or appointed, a set of fingerprints of the new owner, partner,
589	officer, or director must be filed with the department within 30
590	days after the change. The acquisition of 10 percent or more of
591	the voting securities of a licensed entity is considered a
592	change of ownership or control. The fingerprints must be taken
593	certified by a law enforcement agency or other department-
594	approved entityofficerand be accompanied by the fingerprint
595	processing fee in s. 624.501.
596	Section 19. Section 626.201, Florida Statutes, is amended
597	to read:
598	626.201 Investigation.--
599	(1)The department may propound any reasonable
600	interrogatories in addition to those contained in the
601	application, to any applicant for license or appointment, or on
602	any renewal, reinstatement, or continuation thereof, relating to
603	his or her qualifications, residence, prospective place of
604	business, and any other matter which, in the opinion of the
605	department, is deemed necessary or advisable for the protection
606	of the public and to ascertain the applicant's qualifications.
607	(2)The department may, upon completion of the
608	application, make such further investigation as it may deem
609	advisable of the applicant's character, experience, background,
610	and fitness for the license or appointment. Such an inquiry or
611	investigation shall be in addition to any examination required
612	to be taken by the applicant as hereinafter in this chapter
613	provided.
614	(3) An inquiry or investigation of the applicant's
615	qualifications, character, experience, background, and fitness
616	must include submission of the applicant's fingerprints to the
617	Department of Law Enforcement and the Federal Bureau of
618	Investigation and consideration of any state criminal records,
619	federal criminal records, or local criminal records obtained
620	from these agencies or from local law enforcement agencies.
621	Section 20. Paragraphs (e), (f), (g), and (k) of
622	subsection (2) of section 626.221, Florida Statutes, are amended
623	to read:
624	626.221 Examination requirement; exemptions.--
625	(2) However, no such examination shall be necessary in any
626	of the following cases:
627	(e) An individual who qualified as a managing general
628	agent, service representative, customer representative, or all-
629	lines adjuster by passing a general lines agent's examination
630	and subsequently was licensed and appointed and has been
631	actively engaged in all lines of property and casualty insurance
632	may, upon filing an application for appointment, be licensed and
633	appointed as a general lines agent for the same kinds of
634	business without taking another examination if he or she holds
635	any such currently effective license referred to in this
636	paragraph or held the license within 4824months prior to the
637	date of filing the application with the department.
638	(f) A person who has been licensed and appointed by the
639	department as a public adjuster or independent adjuster, or
640	licensed and appointed either as an agent or company adjuster as
641	to all property, casualty, and surety insurances, may be
642	licensed and appointed as a company adjuster as to any of such
643	insurances, or as an independent adjuster or public adjuster,
644	without additional written examination if an application for
645	appointment is filed with the department within 4824months
646	following the date of cancellation or expiration of the prior
647	appointment.
648	(g) A person who has been licensed by the department as an
649	adjuster for motor vehicle, property and casualty, workers'
650	compensation, and health insurance may be licensed as such an
651	adjuster without additional written examination if his or her
652	application for appointment is filed with the department within
653	4824months after cancellation or expiration of the prior
654	license.
655	(k) An applicant for license as a customer representative
656	who has the designation of Accredited Advisor in Insurance (AAI)
657	from the Insurance Institute of America, the designation of
658	Certified Insurance Counselor (CIC) from the Society of
659	Certified Insurance Service Counselors, the designation of
660	Accredited Customer Service Representative (ACSR) from the
661	Independent Insurance Agents of America, the designation of
662	Certified Professional Service Representative (CPSR) from the
663	National Foundation for Certified Professional Service
664	RepresentativesAssociation of Professional Insurance Agents,
665	the designation of Certified Insurance Service Representative
666	(CISR) from the Society of Certified Insurance Service
667	Representatives. Also, an applicant for license as a customer
668	representative who has the designation of Certified Customer
669	Service Representative (CCSR) from the Florida Association of
670	Insurance Agents, or the designation of Registered Customer
671	Service Representative (RCSR) from a regionally accredited
672	postsecondary institution in this state, or the designation of
673	Professional Customer Service Representative (PCSR) from the
674	Professional Career Institute, whose curriculum has been
675	approved by the department and whose curriculum includes
676	comprehensive analysis of basic property and casualty lines of
677	insurance and testing at least equal to that of standard
678	department testing for the customer representative license. The
679	department shall adopt rules establishing standards for the
680	approval of curriculum.
681	Section 21. Paragraphs (a), (c), and (d) of subsection
682	(3), paragraphs (a), (b), (c), (d),(g), (h), and (i) of
683	subsection (4), and paragraph (b) of subsection (6) of section
684	626.2815, Florida Statutes, are amended to read:
685	626.2815 Continuing education required; application;
686	exceptions; requirements; penalties.--
687	(3)(a) Each person subject to the provisions of this
688	section must, except as set forth in paragraphs (b) and (c),
689	complete a minimum of 2428hours of continuing education
690	courses every 2 years in basic or higher-level courses
691	prescribed by this section or in other courses approved by the
692	department. Each person subject to the provisions of this
693	section must complete, as part of his or hertheirrequired
694	number of continuing education hours, 3 hours of continuing
695	education, approved by the department, every 2 years on the
696	subject matter of ethics anda minimum of 2 hours of continuing
697	education, approved by the department, every 2 years on the
698	subject matter of unauthorized entities engaging in the business
699	of insurance. The scope of the topic of unauthorized entities
700	shall include the Florida Nonprofit Multiple Employer Welfare
701	Arrangement Act and the Employee Retirement Income Security Act,
702	29 U.S.C. ss. 1001 et seq., as it relates to the provision of
703	health insurance by employers to their employees and the
704	regulation thereof.
705	(c) A licensee who has been licensed for 25 years or more
706	and is a CLU or a CPCU or has a Bachelor of Science degree in
707	risk management or insurance with evidence of 18 or more
708	semester hours in upper-level insurance-related courses must
709	complete 1214hours of continuing education courses every 2
710	years in courses prescribed by this section or in other courses
711	approved by the department, except, for compliance periods
712	beginning January 1, 1998, the licensees described in this
713	paragraph shall be required to complete 10 hours of continuing
714	education courses every 2 years.
715	(d) Any person who holds a license as a customer
716	representative, limited customer representative, administrative
717	agent,title agent, motor vehicle physical damage and mechanical
718	breakdown insurance agent, crop or hail and multiple-peril crop
719	insurance agent, or as an industrial fire insurance or burglary
720	insurance agent and who is not a licensed life or health
721	insurance agent, shall be required to complete 1214hours of
722	continuing education courses every 2 years, except, for
723	compliance periods beginning on January 1, 1998, each licensee
724	subject to this paragraph shall be required to complete 10 hours
725	of continuing education courses every 2 years.
726	(4) The following courses may be completed in order to
727	meet the continuing education course requirements:
728	(a) Any part of the Life Underwriter Training Council Life
729	Course Curriculum: 2428 hours; Health Course: 1214hours.
730	(b) Any part of the American College "CLU" diploma
731	curriculum: 2428hours.
732	(c) Any part of the Insurance Institute of America's
733	program in general insurance: 1214hours.
734	(d) Any part of the American Institute for Property and
735	Liability Underwriters' Chartered Property Casualty Underwriter
736	(CPCU) professional designation program: 2428hours.
737	(g) In the case of title agents, completion of the
738	Certified Land Closer(CLC) professional designation program and
739	receipt of the designation: 2428hours.
740	(h) In the case of title agents, completion of the
741	Certified Land Searcher(CLS) professional designation program
742	and receipt of the designation: 2428hours.
743	(i) Any insurance-related course which is approved by the
744	department and taught by an accredited college or university per
745	credit hour granted: 1214hours.
746	(6)
747	(b) The board members shall be appointed as follows:
748	1. Seven members representing agents of which at least one
749	must be a representative from each of the following
750	organizations: the Florida Association of Insurance Agents; the
751	Florida Association of Insurance and Financial AdvisorsLife
752	Underwriters; the Professional Insurance Agents of Florida,
753	Inc.; the Florida Association of Health Underwriters; the
754	Specialty Agents' Association; the Latin American Agents'
755	Association; and the National Association of Insurance Women.
756	Such board members must possess at least a bachelor's degree or
757	higher from an accredited college or university with major
758	coursework in insurance, risk management, or education or
759	possess the designation of CLU, CPCU, CHFC, CFP, AAI, or CIC. In
760	addition, each member must possess 5 years of classroom
761	instruction experience or 5 years of experience in the
762	development or design of educational programs or 10 years of
763	experience as a licensed resident agent. Each organization may
764	submit to the department a list of recommendations for
765	appointment. If one organization does not submit a list of
766	recommendations, the Insurance Commissioner may select more than
767	one recommended person from a list submitted by other eligible
768	organizations.
769	2. Two members representing insurance companies at least
770	one of whom must represent a Florida Domestic Company and one of
771	whom must represent the Florida Insurance Council. Such board
772	members must be employed within the training department of the
773	insurance company. At least one such member must be a member of
774	the Society of Insurance Trainers and Educators.
775	3. One member representing the general public who is not
776	directly employed in the insurance industry. Such board member
777	must possess a minimum of a bachelor's degree or higher from an
778	accredited college or university with major coursework in
779	insurance, risk management, training, or education.
780	4. One member, appointed by the Insurance Commissioner,
781	who represents the department.
782	Section 22. Section 626.2816, Florida Statutes, is amended
783	to read:
784	626.2816 Regulation of continuing education for licensees,
785	course providers, instructors, school officials, and monitor
786	groups.--
787	(1) Continuing education course providers, instructors,
788	school officials, and monitor groups must be approved by the
789	department before offering continuing education courses pursuant
790	to s. 626.2815 or s. 626.869.
791	(2) The department shall adopt rules establishing
792	standards for the approval, regulation, and operation of the
793	continuing education programs and for the discipline of
794	licensees, course providers, instructors, school officials, and
795	monitor groups. The standards must be designed to ensure that
796	such course providers, instructors, school officials, and
797	monitor groups have the knowledge, competence, and integrity to
798	fulfill the educational objectives of ss. 626.2815, 626.869(5),
799	648.385, and 648.386.
800	(3) The department shall adopt rules establishing a
801	process by which compliance with the continuing education
802	requirements of ss. 626.2815, 626.869(5), 648.385, and 648.386
803	can be determined, the establishment of a continuing education
804	compliance periodrequirement cyclefor licensees, and forms
805	necessary to implement such a process.
806	Section 23. Subsection (3) of section 626.2817, Florida
807	Statutes, is amended to read:
808	626.2817 Regulation of course providers, instructors,
809	school officials, and monitor groups involved in prelicensure
810	education for insurance agents and other licensees.--
811	(3) The department shall adopt rules to establish a
812	process for determining compliance with the prelicensure
813	requirements of this chapter and chapter 648 and shall establish
814	a prelicensure cycle for insurance agents and other licensees.
815	The department shall adopt rules prescribing the forms necessary
816	to administer the prelicensure requirements.
817	Section 24. Subsections (5) and (6) are added to section
818	626.311, Florida Statutes, to read:
819	626.311 Scope of license.--
820	(5) At any time while a license is in force, an insurer
821	may apply to the department on behalf of the licensee for an
822	appointment. Upon receipt of the appointment application and
823	appointment taxes and fees, the department may issue the
824	additional appointment without further investigation concerning
825	the applicant.
826	(6) The department may contract with other persons to
827	administer the appointment process.
828	Section 25. Paragraphs (a) and (e) of subsection (1) and
829	subsections (2) and (3) of section 626.321, Florida Statutes,
830	are amended to read:
831	626.321 Limited licenses.--
832	(1) The department shall issue to a qualified individual,
833	or a qualified individual or entity under paragraphs (c), (d),
834	(e), and (i), a license as agent authorized to transact a
835	limited class of business in any of the following categories:
836	(a) Motor vehicle physical damage and mechanical breakdown
837	insurance.--License covering insurance against only the loss of
838	or damage to any motor vehicle which is designed for use upon a
839	highway, including trailers and semitrailers designed for use
840	with such vehicles. Such license also covers insurance against
841	the failure of an original or replacement part to perform any
842	function for which it was designed. The applicant for such a
843	license shall pass a written examination covering motor vehicle
844	physical damage insurance and mechanical breakdown insurance.
845	No individual while so licensed shall hold a license as an agent
846	or solicitoras to any other or additional kind or class of
847	insurance coverage except as to a limited license for credit
848	life and disability insurances as provided in paragraph(e).
849	(e) Credit life or disability insurance.--License covering
850	only credit life or disability insurance. The license may be
851	issued only to an individual employed by a life or health
852	insurer as an officer or other salaried or commissioned
853	representative, to an individual employed by or associated with
854	a lending or financial institution or creditor, or to a lending
855	or financial institution or creditor, and may authorize the sale
856	of such insurance only with respect to borrowers or debtors of
857	such lending or financing institution or creditor. However,
858	only the individual or entity whose tax identification number is
859	used in receiving or is credited with receiving the commission
860	from the sale of such insurance shall be the licensed agent of
861	the insurer. No individual while so licensed shall hold a
862	license as an agent or solicitoras to any other or additional
863	kind or class of life or health insurance coverage. An entity
864	holding a limited license under this paragraph is also
865	authorized to sell credit insurance and credit property
866	insurance. An entity applying for a license under this section:
867	1. Is required to submit only one application for a
868	license under s. 626.171. The requirements of s. 626.171(5)
869	shall only apply to the officers and directors of the entity
870	submitting the application.
871	2. Is required to obtain a license for each office, branch
872	office, or place of business making use of the entity's business
873	name by applying to the department for the license on a
874	simplified form developed by rule of the department for this
875	purpose.
876	3. Is not required to pay any additional application fees
877	for a license issued to the offices or places of business
878	referenced in subsection(2), but is required to pay the license
879	fee as prescribed in s. 624.501, be appointed under s. 626.112,
880	and pay the prescribed appointment fee under s. 624.501. The
881	license obtained under this paragraph shall be posted at the
882	business location for which it was issued so as to be readily
883	visible to prospective purchasers of such coverage.
884	(2) An entity applying for a license under this section is
885	required to:
886	(a) Submit only one application for a license under s.
887	626.171. The requirements of s. 626.171(5) shall only apply to
888	the officers and directors of the entity submitting the
889	application.
890	(b) Obtain a license for each office, branch office, or
891	place of business making use of the entity's business name by
892	applying to the department for the license on a simplified
893	application form developed by rule of the department for this
894	purpose.
895	(c) Pay the applicable fees for a license as prescribed in
896	s. 624.501, be appointed under s. 626.112, and pay the
897	prescribed appointment fee under s. 624.501. A licensed and
898	appointed entity shall be directly responsible and accountable
899	for all acts of the licensee's employees.
900	(3)(2)The limitations of any license issued under this
901	section shall be expressed therein. The licensee shall have a
902	separate and additional appointment as to each insurer
903	represented.
904	(4)(3)Except as otherwise expressly provided, an
905	individual applying for or holding a limited license shall be
906	subject to the same applicable requirements and responsibilities
907	as apply to general lines agents in general, if licensed as to
908	motor vehicle physical damage and mechanical breakdown
909	insurance, credit property insurance, industrial fire insurance
910	or burglary insurance, in-transit and storage personal property
911	insurance, communications equipment property insurance or
912	communications equipment inland marine insurance, baggage and
913	motor vehicle excess liability insurance, or credit insurance;
914	or as apply to life agents or health agents in general, as the
915	case may be, if licensed as to personal accident insurance or
916	credit life or credit disability insurance.
917	Section 26. Section 626.322, Florida Statutes, is amended
918	to read:
919	626.322 License, appointment; certain military
920	installations.--A natural person, not a resident of this state,
921	may be licensed and appointed to represent an authorized life
922	insurer domiciled in this state or an authorized foreign life
923	insurer which maintains a regional home office in this state,
924	provided such person represents such insurer exclusively at a
925	United States military installation located in a foreign
926	country. The department may, upon request of the applicant and
927	the insurer on application forms furnished by the department and
928	upon payment of fees as prescribed in s. 624.501, issue a
929	license and appointment to such person. By authorizing the
930	effectuation of an appointment for a license, the insurer is
931	thereby certifyingshall certifyto the department that the
932	applicant has the necessary training to hold himself or herself
933	out as a life insurance representative, and the insurer shall
934	further certify that it is willing to be bound by the acts of
935	such applicant within the scope of his or her employment.
936	Appointments shall be continued as prescribed in s. 626.381 and
937	upon payment of a fee as prescribed in s. 624.501, unless sooner
938	terminated. Such fees received shall be credited to the
939	Insurance Commissioner's Regulatory Trust Fund as provided for
940	in s. 624.523.
941	Section 27. Section 626.341, Florida Statutes, is amended
942	to read:
943	626.341 Additional appointments; general lines, life, and
944	health agents.--
945	(1) At any time while a licensee's license is in force, an
946	insurer may apply to the department or person designated by the
947	department to administer the appointment processon behalf of a
948	licensee for an additional appointment as general lines agent or
949	life or health agent for an additional insurer or insurers. The
950	application for appointment shall set forth all information the
951	department may require. Upon receipt of the appointment and
952	payment of the applicable appointment taxes and fees, the
953	department may issue the additional appointment without, in its
954	discretion, further investigation concerning the applicant.
955	(2) A life or health agent with an appointment in force
956	may solicit applications for policies of insurance on behalf of
957	an insurer with respect to which he or she is not an appointed
958	life or health agent, unless otherwise provided by contract, if
959	such agent simultaneously with the submission to such insurer of
960	the application for insurance solicited by him or her requests
961	the insurer to appoint him or her as agent. However, no
962	commissions shall be paid by such insurer to the agent until
963	such time as an additional appointment with respect to such
964	insurer has been received by the department or person designated
965	by the department to administer the appointment processpursuant
966	to the provisions of subsection (1).
967	Section 28. Section 626.371, Florida Statutes, is amended
968	to read:
969	626.371 Payment of fees, taxes for appointment period
970	without appointment.--
971	(1) All initial appointments shall be submitted to the
972	department on a monthly basis no later than 45 days after the
973	date of appointment and become effective on the date requested
974	on the appointment form.
975	(2) If, upon application and qualification for an initial
976	or renewalappointment and such investigation as the department
977	may make, it appears to the department that an individual who
978	was formerly licensed or is currently licensed but not properly
979	appointed to represent an insurer or employer and whohas been
980	actively engaged or is currently actively engaged as such an
981	appointee, but without being appointed as required, the
982	department may, if it finds that such failure to be appointed
983	was an inadvertent error on the part of the insurer or employer
984	so represented, nevertheless issue or authorize the issuance of
985	the appointment as applied for but subject to the condition
986	that, before the appointment is issued, all fees and taxes which
987	would have been due had the applicant been so appointed during
988	such current and prior periods, together with applicable fees
989	pursuant to s. 624.501a continuation feefor such current and
990	prior periodstermsof appointment, shall be paid to the
991	department.
992	(3)(a) Failure to notify the department within the
993	required time period shall result in the appointing entity being
994	assessed a delinquent fee of $250 per appointee. Delinquent fees
995	shall be paid by the appointing entity and may not be charged to
996	the appointee.
997	(b) Failure to timely renew an appointment by an
998	appointing entity prior to the expiration date of the
999	appointment shall result in the appointing entity being assessed
1000	late filling, continuation, and reinstatement fees as prescribed
1001	in s. 624.501. Such fees must be paid by the appointing entity
1002	and cannot be charged back to the appointee.
1003	Section 29. Subsections (3) and (4) of section 626.381,
1004	Florida Statutes, are amended and a new subsection (7) is added
1005	to that section to read:
1006	626.381 Renewal, continuation, reinstatement, or
1007	termination of appointment.--
1008	(3) Renewal of an appointment which is received on a date
1009	set forth by the department or person designated by the
1010	department to administer the appointment process prior to the
1011	expiration of an appointment in the licensee's birth month or
1012	license issue date, whichever applies,in the succeeding month
1013	may be renewed by the department without penalty and shall be
1014	effective as of the first day of the month succeeding the month
1015	in whichthe appointment would have expired.
1016	(4) Renewal of an appointment which is received by the
1017	department or person designated by the department to administer
1018	the appointment process after the renewal date set by the
1019	departmentmay be accepted and effectuated by the department in
1020	its discretion if thean additional appointment, late filing,
1021	continuation, and reinstatement fee accompanies the renewal
1022	request pursuant to s. 624.501. Late filing fees shall be paid
1023	by the appointing entity and may not be charged to the
1024	appointee.
1025	(7) The department may adopt rules to implement this
1026	section.
1027	Section 30. Subsections (1), (2), and (3) of section
1028	626.451, Florida Statutes, are amended, and subsection (7) is
1029	added to that section, to read:
1030	626.451 Appointment of agent or other representative.--
1031	(1) Each appointing entity or person designated by the
1032	department to administer the appointment processappointing an
1033	agent, adjuster, service representative, customer
1034	representative, or managing general agent in this state shall
1035	file the appointment with the department and, at the same time,
1036	pay the applicable appointment fee and taxes. Every appointment
1037	shall be subject to the prior issuance of the appropriate
1038	agent's, adjuster's, service representative's, customer
1039	representative's, or managing general agent's license.
1040	(2) By authorizing the effectuation of an appointment for
1041	a licensee, the appointing entity is thereby certifying to the
1042	department that an investigation of the licensee has been made
1043	As a part of each appointment there shall be a certified
1044	statement or affidavit of an appropriate officer or official of
1045	the appointing entity stating what investigation the appointing
1046	entity has made concerning the proposed appointee and his or her
1047	background and that in the appointing entity's opinion andto
1048	the best of its knowledge and belief, the licensee is of goodas
1049	to the moral character and reputation, and is fit to engage in
1050	the insurance business. The appointing entity shall provide to
1051	the departmentfitness, and reputation of the proposed appointee
1052	andany other information the department may reasonably require
1053	relative to the proposed appointee.
1054	(3) By authorizing the effectuation ofInthe appointment
1055	of an agent, adjuster, service representative, customer
1056	representative, or managing general agent the appointing entity
1057	is thereby certifying to the departmentshall also certify
1058	thereinthat it is willing to be bound by the acts of the agent,
1059	adjuster, service representative, customer representative, or
1060	managing general agent, within the scope of the licensee'shis
1061	or heremployment.
1062	(7) Each licensee shall advise the department in writing
1063	within 30 days after having been found guilty of or having
1064	pleaded guilty or nolo contendere to a felony or a crime
1065	punishable by imprisonment of 1 year or more under the laws of
1066	the United States, any state of the United States, or any other
1067	country, without regard to whether a judgment of conviction has
1068	been entered by the court having jurisdiction of such cases.
1069	Section 31. Section 626.461, Florida Statutes, is amended
1070	to read:
1071	626.461 Continuation of appointment of agent or other
1072	representative.--Subject to renewal or continuation by the
1073	appointing entity, the appointment of the agent, adjuster,
1074	solicitor,service representative, customer representative, or
1075	managing general agent shall continue in effect until the
1076	person's license is revoked or otherwise terminated, unless
1077	written notice of earlier termination of the appointment is
1078	filed with the department or person designated by the department
1079	to administer the appointment processby either the appointing
1080	entity or the appointee.
1081	Section 32. Subsections (4) and (5) of section 626.471,
1082	Florida Statutes, are amended to read:
1083	626.471 Termination of appointment.--
1084	(4) An appointee may terminate the appointment at any time
1085	by giving written or electronicnotice thereof to the appointing
1086	entity,and filing a copy of the notice with the department, or
1087	person designated by the department to administer the
1088	appointment process. The department shall immediately terminate
1089	the appointment and notify the appointing entity of such
1090	termination. Such termination shall be subject to the
1091	appointee's contract rights, if any.
1092	(5) Upon receiving notice of termination, the department
1093	or person designated by the department to administer the
1094	appointment processshall terminate the appointment.
1095	Section 33. Subsection (5) of section 626.601, Florida
1096	Statutes, is amended to read:
1097	626.601 Improper conduct; inquiry; fingerprinting.--
1098	(5) If the department, after investigation, has reason to
1099	believe that a licensee may have been found guilty of or pleaded
1100	guilty or nolo contendere to a felony or a crime related to the
1101	business of insurance in this or any other state or
1102	jurisdiction, the department may require the licensee to file
1103	with the department a complete set of his or her fingerprints,
1104	which shall be accompanied by the fingerprint processing fee set
1105	forth in s. 624.501. The fingerprints shall be takencertified
1106	by an authorized law enforcement agency or other department-
1107	approved entityofficer.
1108	Section 34. Paragraph (b) of subsection (1) of section
1109	626.731, Florida Statutes, is amended to read:
1110	626.731 Qualifications for general lines agent's
1111	license.--
1112	(1) The department shall not grant or issue a license as
1113	general lines agent to any individual found by it to be
1114	untrustworthy or incompetent or who does not meet each of the
1115	following qualifications:
1116	(b) The applicant is a United States citizen or legal
1117	alien who possesses work authorization from the United States
1118	Immigration and Naturalization Service and isa bona fide
1119	resident of this state. An individual who is a bona fide
1120	resident of this state shall be deemed to meet the residence
1121	requirement of this paragraph, notwithstanding the existence at
1122	the time of application for license of a license in his or her
1123	name on the records of another state as a resident licensee of
1124	such other state, if the applicant furnishes a letter of
1125	clearance satisfactory to the department that the resident
1126	licenses have been canceled or changed to a nonresident basis
1127	and that he or she is in good standing.
1128	Section 35. Subsection (2) of section 626.7315, Florida
1129	Statutes, is amended to read:
1130	626.7315 Prohibition against the unlicensed transaction of
1131	general lines insurance.--With respect to any line of authority
1132	as defined in s. 626.015(7), no individual shall, unless
1133	licensed as a general lines agent:
1134	(2) In this state, receive or issue a receipt for any
1135	money on account of or for any insurer, or receive or issue a
1136	receipt for money from other persons to be transmitted to any
1137	insurer for a policy, contract, or certificate of insurance or
1138	any renewal thereof, even though the policy, certificate, or
1139	contract is not signed by him or her as agent or representative
1140	of the insurer, except as provided in s. 626.0428(1);
1141	Section 36. Paragraphs (a), (b), and (d) of subsection (1)
1142	of section 626.732, Florida Statutes, are amended to read:
1143	626.732 Requirement as to knowledge, experience, or
1144	instruction.--
1145	(1) Except as provided in subsection (3), no applicant for
1146	a license as a general lines agent, except for a chartered
1147	property and casualty underwriter(CPCU), other than as to a
1148	limited license as to baggage and motor vehicle excess liability
1149	insurance, credit property insurance, credit insurance, in-
1150	transit and storage personal property insurance, or
1151	communications equipment property insurance or communication
1152	equipment inland marine insurance, shall be qualified or
1153	licensed unless within the 4 years immediately preceding the
1154	date the application for license is filed with the department
1155	the applicant has:
1156	(a) Taught or successfully completed classroom courses in
1157	insurance, 3 hours of which shall be on the subject matter of
1158	ethics,satisfactory to the department at a school, college, or
1159	extension division thereof, approved by the department;
1160	(b) Completed a correspondence course in insurance, 3
1161	hours of which shall be on the subject matter of ethics,
1162	satisfactory to the department and regularly offered by
1163	accredited institutions of higher learning in this state and,
1164	except if he or she is applying for a limited license under s.
1165	626.321, has had at least 6 months of responsible insurance
1166	duties as a substantially full-time bona fide employee in all
1167	lines of property and casualty insurance set forth in the
1168	definition of general lines agent under s. 626.015;
1169	(d)1. Completed at least 1 year of responsible insurance
1170	duties as a licensed and appointed customer representative or
1171	limited customer representative in eithercommercial or personal
1172	lines of property and casualty insurance and 40 hours of
1173	classroom courses approved by the department covering the areas
1174	of property, casualty, surety, health, and marine insurance; or
1175	2. Completed at least 1 year of responsible insurance
1176	duties as a licensed and appointed service representative in
1177	either commercial or personal lines of property and casualty
1178	insurance and 80 hours of classroom courses approved by the
1179	department covering the areas of property, casualty, surety,
1180	health, and marine insurance.
1181	Section 37. Section 626.733, Florida Statutes, is amended
1182	to read:
1183	626.733 Agency firms and corporations; special
1184	requirements.--If a sole proprietorship, partnership,
1185	corporation, or association holds an agency contract, all
1186	members thereof who solicit, negotiate, or effect insurance
1187	contracts, and all officers and stockholders of the corporation
1188	who solicit, negotiate, or effect insurance contracts, are
1189	required to qualify and be licensed individually as agents,
1190	solicitors,or customer representatives; and all of such agents
1191	must be individually appointed as to each property and casualty
1192	insurer entering into an agency contract with such agency. Each
1193	such appointing insurer as soon as known to it shall comply with
1194	this section and shall determine and require that each agent so
1195	associated in or so connected with such agency is likewise
1196	appointed as to the same such insurer and for the same type and
1197	class of license. However, no insurer is required to comply with
1198	the provisions of this section if such insurer satisfactorily
1199	demonstrates to the department that the insurer has issued an
1200	aggregate net written premium, in an agency, in an amount of
1201	$25,000 or less.
1202	Section 38. Paragraph (a) of subsection (2) and subsection
1203	(3) of section 626.7351, Florida Statutes, are amended to read:
1204	626.7351 Qualifications for customer representative's
1205	license.--The department shall not grant or issue a license as
1206	customer representative to any individual found by it to be
1207	untrustworthy or incompetent, or who does not meet each of the
1208	following qualifications:
1209	(2)(a) The applicant is a United States citizen or legal
1210	alien who possesses work authorization from the United States
1211	Immigration and Naturalization Service and isa bona fide
1212	resident of this state and will actually reside in the state at
1213	least 6 months out of the year. An individual who is a bona fide
1214	resident of this state shall be deemed to meet the residence
1215	requirements of this subsection, notwithstanding the existence
1216	at the time of application for license of a license in his or
1217	her name on the records of another state as a resident licensee
1218	of the other state, if the applicant furnishes a letter of
1219	clearance satisfactory to the department that the resident
1220	licenses have been canceled or changed to a nonresident basis
1221	and that he or she is in good standing.
1222	(3) Within the 2 years next preceding the date the
1223	application for license was filed with the department, the
1224	applicant has completed a course in insurance, 3 hours of which
1225	shall be on the subject matter of ethics,approved by the
1226	department or has had at least 6 months' experience in
1227	responsible insurance duties as a substantially full-time
1228	employee. Courses must include instruction on the subject matter
1229	of unauthorized entities engaging in the business of insurance.
1230	The scope of the topic of unauthorized entities shall include
1231	the Florida Nonprofit Multiple-Employer Welfare Arrangement Act
1232	and the Employee Retirement Income Security Act, 29 U.S.C. ss.
1233	1001 et seq., as such acts relate to the provision of health
1234	insurance by employers and the regulation of such insurance.
1235	Section 39. Subsection (2) of section 626.7354, Florida
1236	Statutes, is amended to read:
1237	626.7354 Customer representative's powers; agent's or
1238	agency's responsibility.--
1239	(2) A customer representative may engage in transacting
1240	insurance with customers who have been solicited by any agent,
1241	solicitor,or customer representative in the same agency, and
1242	may engage in transacting insurance with customers who have not
1243	been so solicited to the extent and under conditions that are
1244	otherwise consistent with this part and with the insurer's
1245	contract with the agent appointing him or her.
1246	Section 40. Paragraph (c) of subsection (1) of section
1247	626.7355, Florida Statutes, is amended to read:
1248	626.7355 Temporary license as customer representative
1249	pending examination.--
1250	(1) The department shall issue a temporary customer
1251	representative's license with respect to a person who has
1252	applied for such license upon finding that the person:
1253	(c) Is a United States citizen or legal alien who
1254	possesses work authorization from the United States Immigration
1255	and Naturalization Service and isa bona fide resident of this
1256	state or is a resident of another state sharing a common
1257	boundary with this state. An individual who is a bona fide
1258	resident of this state shall be deemed to meet the residence
1259	requirement of this paragraph, notwithstanding the existence at
1260	the time of application for license, of a license in his or her
1261	name on the records of another state as a resident licensee of
1262	such other state, if the applicant furnishes a letter of
1263	clearance satisfactory to the department that his or her
1264	resident licenses have been canceled or changed to a nonresident
1265	basis and that he or she is in good standing.
1266	Section 41. Subsection (3) of section 626.741, Florida
1267	Statutes, is amended to read:
1268	626.741 Nonresident agents; licensing and restrictions.--
1269	(3) The department shall not, however, issue any license
1270	and appointment to any nonresident who has an office or place of
1271	business in this state, or who has any direct or indirect
1272	pecuniary interest in any insurance agent or, insurance agency,
1273	or in any solicitorlicensed as a resident of this state; nor to
1274	any individual who does not, at the time of issuance and
1275	throughout the existence of the Florida license, hold a license
1276	as agent or broker issued by his or her home state; nor to any
1277	individual who is employed by any insurer as a service
1278	representative or who is a managing general agent in any state,
1279	whether or not also licensed in another state as an agent or
1280	broker. The foregoing requirement to hold a similar license in
1281	the applicant's home state does not apply to customer
1282	representatives unless the home state licenses residents of that
1283	state in a similar manner. The prohibition against having an
1284	office or place of business in this state does not apply to
1285	customer representatives who are required to conduct business
1286	solely within the confines of the office of a licensed and
1287	appointed Florida resident general lines agent in this state.
1288	The authority of such nonresident license is limited to the
1289	specific lines of authority granted in the license issued by the
1290	agent's home state and further limited to the specific lines
1291	authorized under the nonresident license issued by this state.
1292	The department shall have discretion to refuse to issue any
1293	license or appointment to a nonresident when it has reason to
1294	believe that the applicant by ruse or subterfuge is attempting
1295	to avoid the intent and prohibitions contained in this
1296	subsection or to believe that any of the grounds exist as for
1297	suspension or revocation of license as set forth in ss. 626.611
1298	and 626.621.
1299	Section 42. Paragraph (a) of subsection (1) of section
1300	626.753, Florida Statutes, is amended to read:
1301	626.753 Sharing commissions; penalty.--
1302	(1)(a) An agent may divide or share in commissions only
1303	with his or her own employed solicitors andwith other agents
1304	appointed and licensed to write the same kind or kinds of
1305	insurance.
1306	Section 43. Paragraphs (b) and (d) of subsection (1) of
1307	section 626.785, Florida Statutes, are amended to read:
1308	626.785 Qualifications for license.--
1309	(1) The department shall not grant or issue a license as
1310	life agent to any individual found by it to be untrustworthy or
1311	incompetent, or who does not meet the following qualifications:
1312	(b) Must be a United States citizen or legal alien who
1313	possesses work authorization from the United States Immigration
1314	and Naturalization Service anda bona fide resident of this
1315	state.
1316	(d) Must not be a funeral director or direct disposer, or
1317	an employee or representative thereof, or have an office in, or
1318	in connection with, a funeral establishment, except that a
1319	funeral establishment may contract with a life insurance agent
1320	to sell a preneed contract as defined in chapter 497.
1321	Notwithstanding other provisions of this chapter, such insurance
1322	agent may sell limited policies of insurance covering the
1323	expense of final disposition or burial of an insured in thean
1324	amount of $12,500, plus an annual percentage increase based on
1325	the Annual Consumer Price Index compiled by the United States
1326	Department of Labor, beginning with the Annual Consumer Price
1327	Index announced by the United States Department of Labor for the
1328	year 2003not to exceed $10,000.
1329	Section 44. Subsections (1) and (2) of section 626.7851,
1330	Florida Statutes, are amended to read:
1331	626.7851 Requirement as to knowledge, experience, or
1332	instruction.--No applicant for a license as a life agent, except
1333	for a chartered life underwriter (CLU), shall be qualified or
1334	licensed unless within the 4 years immediately preceding the
1335	date the application for a license is filed with the department
1336	he or she has:
1337	(1) Successfully completed 40 hours of classroom courses
1338	in insurance, 3 hours of which shall be on the subject matter of
1339	ethics,satisfactory to the department at a school or college,
1340	or extension division thereof, or other authorized course of
1341	study, approved by the department. Courses must include
1342	instruction on the subject matter of unauthorized entities
1343	engaging in the business of insurance, to include the Florida
1344	Nonprofit Multiple-Employer Welfare Arrangement Act and the
1345	Employee Retirement Income Security Act, 29 U.S.C. ss. 1001 et
1346	seq., as it relates to the provision of life insurance by
1347	employers to their employees and the regulation thereof;
1348	(2) Successfully completed a correspondence course in
1349	insurance, 3 hours of which shall be on the subject matter of
1350	ethics,satisfactory to the department and regularly offered by
1351	accredited institutions of higher learning in this state,
1352	approved by the department. Courses must include instruction on
1353	the subject matter of unauthorized entities engaging in the
1354	business of insurance, to include the Florida Nonprofit
1355	Multiple-Employer Welfare Arrangement Act and the Employee
1356	Retirement Income Security Act, 29 U.S.C. ss. 1001 et seq., as
1357	it relates to the provision of life insurance by employers to
1358	their employees and the regulation thereof;
1359	Section 45. Subsection (2) of section 626.829, Florida
1360	Statutes, is amended to read:
1361	626.829 "Health agent" defined.--
1362	(2) Any person who acts for an insurer, or on behalf of a
1363	licensed representative of an insurer, to solicit applications
1364	for or to negotiate and effectuate health insurance contracts,
1365	whether or not he or she is appointed as an agent, subagent,
1366	solicitor,or canvasser or by any other title, shall be deemed
1367	to be a health agent and shall be qualified, licensed, and
1368	appointed as a health agent.
1369	Section 46. Paragraph (b) of subsection (1) of section
1370	626.831, Florida Statutes, is amended to read:
1371	626.831 Qualifications for license.--
1372	(1) The department shall not grant or issue a license as
1373	health agent as to any individual found by it to be
1374	untrustworthy or incompetent, or who does not meet the following
1375	qualifications:
1376	(b) Must be a United States citizen or legal alien who
1377	possesses work authorization from the United States Immigration
1378	and Naturalization Service anda bona fide resident of this
1379	state.
1380	Section 47. Subsections (1) and (2) of section 626.8311,
1381	Florida Statutes, are amended to read:
1382	626.8311 Requirement as to knowledge, experience, or
1383	instruction.--No applicant for a license as a health agent,
1384	except for a chartered life underwriter (CLU), shall be
1385	qualified or licensed unless within the 4 years immediately
1386	preceding the date the application for license is filed with the
1387	department he or she has:
1388	(1) Successfully completed 40 hours of classroom courses
1389	in insurance, 3 hours of which shall be on the subject matter of
1390	ethics,satisfactory to the department at a school or college,
1391	or extension division thereof, or other authorized course of
1392	study, approved by the department. Courses must include
1393	instruction on the subject matter of unauthorized entities
1394	engaging in the business of insurance, to include the Florida
1395	Nonprofit Multiple-Employer Welfare Arrangement Act and the
1396	Employee Retirement Income Security Act, 29 U.S.C. ss. 1001 et
1397	seq., as it relates to the provision of health insurance by
1398	employers to their employees and the regulation thereof;
1399	(2) Successfully completed a correspondence course in
1400	insurance, 3 hours of which shall be on the subject matter of
1401	ethics,satisfactory to the department and regularly offered by
1402	accredited institutions of higher learning in this state,
1403	approved by the department. Courses must include instruction on
1404	the subject matter of unauthorized entities engaging in the
1405	business of insurance, to include the Florida Nonprofit
1406	Multiple-Employer Welfare Arrangement Act and the Employee
1407	Retirement Income Security Act, 29 U.S.C. ss. 1001 et seq., as
1408	it relates to the provision of health insurance by employers to
1409	their employees and the regulation thereof;
1410	Section 48. Subsection (2) of section 626.8414, Florida
1411	Statutes, is amended to read:
1412	626.8414 Qualifications for examination.--The department
1413	must authorize any natural person to take the examination for
1414	the issuance of a license as a title insurance agent if the
1415	person meets all of the following qualifications:
1416	(2) The applicant must be a United States citizen or legal
1417	alien who possesses work authorization from the United States
1418	Immigration and Naturalization Service anda bona fide resident
1419	of this state. A person meets the residency requirement of this
1420	subsection, notwithstanding the existence at the time of
1421	application for license of a license in the applicant's name on
1422	the records of another state as a resident licensee of such
1423	other state, if the applicant furnishes a letter of clearance
1424	satisfactory to the department that the resident licenses have
1425	been canceled or changed to a nonresident basis and that the
1426	applicant is in good standing.
1427	Section 49. Paragraph (a) of subsection (3) of section
1428	626.8417, Florida Statutes, is amended to read:
1429	626.8417 Title insurance agent licensure; exemptions.--
1430	(3) The department shall not grant or issue a license as
1431	title agent to any individual found by it to be untrustworthy or
1432	incompetent, who does not meet the qualifications for
1433	examination specified in s. 626.8414, or who does not meet the
1434	following qualifications:
1435	(a) Within the 4 years immediately preceding the date of
1436	the application for license, the applicant must have completed a
1437	40-hour classroom course in title insurance, 3 hours of which
1438	shall be on the subject matter of ethics,as approved by the
1439	department, or must have had at least 12 months of experience in
1440	responsible title insurance duties, while working in the title
1441	insurance business as a substantially full-time, bona fide
1442	employee of a title agency, title agent, title insurer, or
1443	attorney who conducts real estate closing transactions and
1444	issues title insurance policies but who is exempt from licensure
1445	pursuant to paragraph (4)(a). If an applicant's qualifications
1446	are based upon the periods of employment at responsible title
1447	insurance duties, the applicant must submit, with the
1448	application for license on a form prescribed by the department,
1449	the affidavit of the applicant and of the employer setting forth
1450	the period of such employment, that the employment was
1451	substantially full time, and giving a brief abstract of the
1452	nature of the duties performed by the applicant.
1453	Section 50. Section 626.843, Florida Statutes, is amended
1454	to read:
1455	626.843 Renewal, continuation, reinstatement, termination
1456	of title insurance agent's appointment.--
1457	(1) The appointment of a title insurance agent shall
1458	continue in force until suspended, revoked, or otherwise
1459	terminated, but subject to a renewed request filed by the
1460	insurer every 24 months after the original issue date of the
1461	appointment, accompanied by payment of the renewal appointment
1462	fee and taxes as prescribed in s. 624.501.
1463	(2) Title insurance agent appointments shall be renewed
1464	pursuant to s. 626.381 for insurance representatives in general.
1465	Each insurer shall file with the department the lists,
1466	statements, and information as to appointments which are being
1467	renewed or being terminated, accompanied by payment of the
1468	applicable renewal fees and taxes as prescribed in s. 624.501,
1469	by a date set forth by the department following the month during
1470	which the appointments will expire.
1471	(3) Request for renewal of an appointment which is
1472	received on a date set forth by the department in the succeeding
1473	month may be renewed by the department without penalty, and
1474	shall be effective as of the day the appointment would have
1475	expired.
1476	(4) Request for renewal of an appointment which is
1477	received by the department after the date set by the department
1478	may be accepted and effectuated by the department in its
1479	discretion if an additional appointment continuation and
1480	reinstatement fee accompany the request for renewal pursuant to
1481	s. 624.501.
1482	(3)(5)The appointment issued shall remain in effect for
1483	so long as the appointment represented thereby continues in
1484	force as provided in this section.
1485	Section 51. Paragraph (b) of subsection (1) of section
1486	626.865, Florida Statutes, is amended to read:
1487	626.865 Public adjuster's qualifications, bond.--
1488	(1) The department shall issue a license to an applicant
1489	for a public adjuster's license upon determining that the
1490	applicant has paid the applicable fees specified in s. 624.501
1491	and possesses the following qualifications:
1492	(b) Is a United States citizen or legal alien who
1493	possesses work authorization from the United States Immigration
1494	and Naturalization Service anda bona fide resident of this
1495	state.
1496	Section 52. Subsection (2) of section 626.866, Florida
1497	Statutes, is amended to read:
1498	626.866 Independent adjuster's qualifications.--The
1499	department shall issue a license to an applicant for an
1500	independent adjuster's license upon determining that the
1501	applicable license fee specified in s. 624.501 has been paid and
1502	that the applicant possesses the following qualifications:
1503	(2) Is a United States citizen or legal alien who
1504	possesses work authorization from the United States Immigration
1505	and Naturalization Service anda bona fide resident of this
1506	state.
1507	Section 53. Subsection (2) of section 626.867, Florida
1508	Statutes, is amended to read:
1509	626.867 Company employee adjuster's qualifications.--The
1510	department shall issue a license to an applicant for a company
1511	employee adjuster's license upon determining that the applicable
1512	license fee specified in s. 624.501 has been paid and that the
1513	applicant possesses the following qualifications:
1514	(2) Is a United States citizen or legal alien who
1515	possesses work authorization from the United States Immigration
1516	and Naturalization Service anda bona fide resident of this
1517	state.
1518	Section 54. Section 626.869, Florida Statutes, is amended
1519	to read:
1520	626.869 License, adjusters.--
1521	(1) An applicant for a license as an adjuster may qualify
1522	and his or her license when issued may cover adjusting in any
1523	one of the following classes of insurance:
1524	(a) All lines of insurance except life and annuities.
1525	(b) Motor vehicle physical damage insurance.
1526	(c) Property and casualty insurance.
1527	(d) Workers' compensation insurance.
1528	(e) Health insurance.
1529	(2) All individuals who on October 1, 1990, hold an
1530	adjuster's license and appointment limited to fire and allied
1531	lines, including marine or casualty or boiler and machinery, may
1532	remain licensed and appointed under the limited license and may
1533	renew their appointment, but no license or appointment which has
1534	been terminated, not renewed, suspended, or revoked shall be
1535	reinstated, and no new or additional licenses or appointments
1536	shall be issued.
1537	(3) With the exception of a public adjuster limited to
1538	health insurance, a limited license set forth in subsection (1)
1539	as an independent or public adjuster may only be issued to and
1540	retained by an employee of an independent or public adjusting
1541	firm which is supervised by a duly appointed all-lines adjuster
1542	or an employee of an independent or public adjuster licensed and
1543	appointed in all lines of insurance other than life and annuity.
1544	The office of the limited lines adjuster shall be in the office
1545	of the licensed all-lines adjuster responsible for his or her
1546	supervision and instruction.
1547	(3)(4)The applicant's application for license shall
1548	specify which of the foregoing classes of business the
1549	application for license is to cover.
1550	(4)(5) Any individualpersonholding a license for 24
1551	consecutive months or longer and who engages in adjusting
1552	workers' compensation insurance must, beginning in his or her
1553	theirbirth month and every 2 years thereafter, have completed
1554	24 hours of courses, 2 hours of which relate to ethics, in
1555	subjects designed to inform the licensee regarding the current
1556	insuranceworkers' compensationlaws of this state, so as to
1557	enable him or her to engage in business as ana workers'
1558	compensationinsurance adjuster fairly and without injury to the
1559	public and to adjust all claims in accordance with the policy or
1560	contract and the workers' compensation laws of this state. In
1561	order to qualify as an eligible course under this subsection,
1562	the course must:
1563	(a) Have a course outline approved by the department.
1564	(b) Be taught at a school training facility or other
1565	location approved by the department.
1566	(c) Be taught by instructors with at least 5 years of
1567	experience in the area of workers' compensation, general lines
1568	of insurance, or other persons approved by the department.
1569	However, a member of The Florida Bar is exempt from the 5 years'
1570	experience requirement.
1571	(d) Furnish the attendee a certificate of completion. The
1572	course provider shall send a roster to the department in a
1573	format prescribed by the department.
1574	(5) The regulation of continuing education for licensees,
1575	course providers, instructors, school officials, and monitor
1576	groups shall be as provided for in s. 626.2816.
1577	Section 55. Subsection (1) of section 626.874, Florida
1578	Statutes, is amended to read:
1579	626.874 Catastrophe or emergency adjusters.--
1580	(1) In the event of a catastrophe or emergency, the
1581	department may issue a license, for the purposes and under the
1582	conditions which it shall fix and for the period of emergency as
1583	it shall determine, to persons who are residents or nonresidents
1584	of this state, who are at least 18 years of age, who are United
1585	States citizens or legal aliens who possess work authorization
1586	from the United States Immigration and Naturalization Service,
1587	and who are not licensed adjusters under this part but who have
1588	been designated and certified to it as qualified to act as
1589	adjusters by independent resident adjusters or by an authorized
1590	insurer or by a licensed general lines agent to adjust claims,
1591	losses, or damages under policies or contracts of insurance
1592	issued by such insurers. The fee for the license shall be as
1593	provided in s. 624.501(12)(c).
1594	Section 56. Section 626.878, Florida Statutes, is amended
1595	to read:
1596	626.878 Rules; code of ethics.--An adjuster shall
1597	subscribe to the code of ethics specified in the rules of the
1598	department. The rules shall implement the provisions of this
1599	part and specify the terms and conditions of contracts,
1600	including a right to cancel, and require practices necessary to
1601	ensure fair dealing, prohibit conflicts of interest, and ensure
1602	preservation of the rights of the claimant to participate in the
1603	adjustment of claims.
1604	Section 57. Subsection (1) of section 626.797, Florida
1605	Statutes, is amended to read:
1606	626.797 Code of ethics.--
1607	(1) The department shall, after consultation with the
1608	Florida Association Of Insurance and Financial AdvisorsLife
1609	Underwriters, adopt a code of ethics, or continue any such code
1610	heretofore so adopted, to govern the conduct of life agents in
1611	their relations with the public, other agents, and the insurers.
1612	Section 58. Paragraphs (o) and (z) of subsection (1) of
1613	section 626.9541, Florida Statutes, are amended to read:
1614	626.9541 Unfair methods of competition and unfair or
1615	deceptive acts or practices defined.--
1616	(1) UNFAIR METHODS OF COMPETITION AND UNFAIR OR DECEPTIVE
1617	ACTS.--The following are defined as unfair methods of
1618	competition and unfair or deceptive acts or practices:
1619	(o) Illegal dealings in premiums; excess or reduced
1620	charges for insurance.--
1621	1. Knowingly collecting any sum as a premium or charge for
1622	insurance, which is not then provided, or is not in due course
1623	to be provided, subject to acceptance of the risk by the
1624	insurer, by an insurance policy issued by an insurer as
1625	permitted by this code.
1626	2. Knowingly collecting as a premium or charge for
1627	insurance any sum in excess of or less than the premium or
1628	charge applicable to such insurance, in accordance with the
1629	applicable classifications and rates as filed with and approved
1630	by the department, and as specified in the policy; or, in cases
1631	when classifications, premiums, or rates are not required by
1632	this code to be so filed and approved, premiums and charges
1633	collected from a Florida residentin excess of or less than
1634	those specified in the policy and as fixed by the insurer. This
1635	provision shall not be deemed to prohibit the charging and
1636	collection, by surplus lines agents licensed under part VIII of
1637	this chapter, of the amount of applicable state and federal
1638	taxes, or fees as authorized by s. 626.916(4), in addition to
1639	the premium required by the insurer or the charging and
1640	collection, by licensed agents, of the exact amount of any
1641	discount or other such fee charged by a credit card facility in
1642	connection with the use of a credit card, as authorized by
1643	subparagraph (q)3., in addition to the premium required by the
1644	insurer. This subparagraph shall not be construed to prohibit
1645	collection of a premium for a universal life or a variable or
1646	indeterminate value insurance policy made in accordance with the
1647	terms of the contract.
1648	3.a. Imposing or requesting an additional premium for a
1649	policy of motor vehicle liability, personal injury protection,
1650	medical payment, or collision insurance or any combination
1651	thereof or refusing to renew the policy solely because the
1652	insured was involved in a motor vehicle accident unless the
1653	insurer's file contains information from which the insurer in
1654	good faith determines that the insured was substantially at
1655	fault in the accident.
1656	b. An insurer which imposes and collects such a surcharge
1657	or which refuses to renew such policy shall, in conjunction with
1658	the notice of premium due or notice of nonrenewal, notify the
1659	named insured that he or she is entitled to reimbursement of
1660	such amount or renewal of the policy under the conditions listed
1661	below and will subsequently reimburse him or her or renew the
1662	policy, if the named insured demonstrates that the operator
1663	involved in the accident was:
1664	(I) Lawfully parked;
1665	(II) Reimbursed by, or on behalf of, a person responsible
1666	for the accident or has a judgment against such person;
1667	(III) Struck in the rear by another vehicle headed in the
1668	same direction and was not convicted of a moving traffic
1669	violation in connection with the accident;
1670	(IV) Hit by a "hit-and-run" driver, if the accident was
1671	reported to the proper authorities within 24 hours after
1672	discovering the accident;
1673	(V) Not convicted of a moving traffic violation in
1674	connection with the accident, but the operator of the other
1675	automobile involved in such accident was convicted of a moving
1676	traffic violation;
1677	(VI) Finally adjudicated not to be liable by a court of
1678	competent jurisdiction;
1679	(VII) In receipt of a traffic citation which was dismissed
1680	or nolle prossed; or
1681	(VIII) Not at fault as evidenced by a written statement
1682	from the insured establishing facts demonstrating lack of fault
1683	which are not rebutted by information in the insurer's file from
1684	which the insurer in good faith determines that the insured was
1685	substantially at fault.
1686	c. In addition to the other provisions of this
1687	subparagraph, an insurer may not fail to renew a policy if the
1688	insured has had only one accident in which he or she was at
1689	fault within the current 3-year period. However, an insurer may
1690	nonrenew a policy for reasons other than accidents in accordance
1691	with s. 627.728. This subparagraph does not prohibit nonrenewal
1692	of a policy under which the insured has had three or more
1693	accidents, regardless of fault, during the most recent 3-year
1694	period.
1695	4. Imposing or requesting an additional premium for, or
1696	refusing to renew, a policy for motor vehicle insurance solely
1697	because the insured committed a noncriminal traffic infraction
1698	as described in s. 318.14 unless the infraction is:
1699	a. A second infraction committed within an 18-month
1700	period, or a third or subsequent infraction committed within a
1701	36-month period.
1702	b. A violation of s. 316.183, when such violation is a
1703	result of exceeding the lawful speed limit by more than 15 miles
1704	per hour.
1705	5. Upon the request of the insured, the insurer and
1706	licensed agent shall supply to the insured the complete proof of
1707	fault or other criteria which justifies the additional charge or
1708	cancellation.
1709	6. No insurer shall impose or request an additional
1710	premium for motor vehicle insurance, cancel or refuse to issue a
1711	policy, or refuse to renew a policy because the insured or the
1712	applicant is a handicapped or physically disabled person, so
1713	long as such handicap or physical disability does not
1714	substantially impair such person's mechanically assisted driving
1715	ability.
1716	7. No insurer may cancel or otherwise terminate any
1717	insurance contract or coverage, or require execution of a
1718	consent to rate endorsement, during the stated policy term for
1719	the purpose of offering to issue, or issuing, a similar or
1720	identical contract or coverage to the same insured with the same
1721	exposure at a higher premium rate or continuing an existing
1722	contract or coverage with the same exposure at an increased
1723	premium.
1724	8. No insurer may issue a nonrenewal notice on any
1725	insurance contract or coverage, or require execution of a
1726	consent to rate endorsement, for the purpose of offering to
1727	issue, or issuing, a similar or identical contract or coverage
1728	to the same insured at a higher premium rate or continuing an
1729	existing contract or coverage at an increased premium without
1730	meeting any applicable notice requirements.
1731	9. No insurer shall, with respect to premiums charged for
1732	motor vehicle insurance, unfairly discriminate solely on the
1733	basis of age, sex, marital status, or scholastic achievement.
1734	10. Imposing or requesting an additional premium for motor
1735	vehicle comprehensive or uninsured motorist coverage solely
1736	because the insured was involved in a motor vehicle accident or
1737	was convicted of a moving traffic violation.
1738	11. No insurer shall cancel or issue a nonrenewal notice
1739	on any insurance policy or contract without complying with any
1740	applicable cancellation or nonrenewal provision required under
1741	the Florida Insurance Code.
1742	12. No insurer shall impose or request an additional
1743	premium, cancel a policy, or issue a nonrenewal notice on any
1744	insurance policy or contract because of any traffic infraction
1745	when adjudication has been withheld and no points have been
1746	assessed pursuant to s. 318.14(9) and (10). However, this
1747	subparagraph does not apply to traffic infractions involving
1748	accidents in which the insurer has incurred a loss due to the
1749	fault of the insured.
1750	(z) Sliding.--Sliding is the act or practice of:
1751	1. Representing to the applicant that a specific ancillary
1752	coverage or product is required by law in conjunction with the
1753	purchase of motor vehicleinsurance when such coverage or
1754	product is not required;
1755	2. Representing to the applicant that a specific ancillary
1756	coverage or product is included in the motor vehiclepolicy
1757	applied for without an additional charge when such charge is
1758	required; or
1759	3. Charging an applicant for a specific ancillary coverage
1760	or product, in addition to the cost of the motor vehicle
1761	insurance coverage applied for, without the informed consent of
1762	the applicant.
1763	Section 59. Paragraph (f) is added to subsection (7) of
1764	section 626.9916, Florida Statutes, to read:
1765	626.9916 Viatical settlement broker license required;
1766	application for license.--
1767	(7) Upon the filing of a sworn application and the payment
1768	of the license fee and all other applicable fees under this act,
1769	the department shall investigate each applicant and may issue
1770	the applicant a license if the department finds that the
1771	applicant:
1772	(f) If a natural person, is at least 18 years of age and a
1773	United States citizen or legal alien who possesses work
1774	authorization from the United States Immigration and
1775	Naturalization Service.
1776	Section 60. Subsection (3) of section 632.634, Florida
1777	Statutes, is amended to read:
1778	632.634 Licensing and appointment of agents.--
1779	(3) Any agent, representative, or member of a society who
1780	in any preceding calendar year has solicited and procured life
1781	insurance benefit contracts on behalf of any society in a total
1782	amount of insurance less than $50,000, or, in the case of any
1783	other kind or kinds of insurance benefit contracts which the
1784	society might write, on not more than 25 individuals, shall be
1785	exempt from the agent licensing and appointment requirements of
1786	subsection (1). Upon request by the department,every society
1787	shall register, on forms prescribed by the department and on or
1788	before March 1 of each year, the name and residence address of
1789	each agent, representative, or member exempt under the
1790	provisions of this subsection and shall, within 30 days of
1791	termination of employment, notify the department of the
1792	termination. Any agent, representative, or member for which an
1793	exemption is claimed due to employment by the society subsequent
1794	to March 1 shall be registered by the society with the
1795	department within 10 days of the date of employment.
1796	Section 61. Section 634.171, Florida Statutes, is amended
1797	to read:
1798	634.171 Salesperson to be licensed and appointed.--
1799	Salespersons for motor vehicle service agreement companies and
1800	insurers shall be licensed, appointed, renewed, continued,
1801	reinstated, or terminated as prescribed in chapter 626 for
1802	insurance representatives in general. However, they shall be
1803	exempt from all other provisions of chapter 626 including
1804	fingerprinting, photo identification, education, and examination
1805	provisions. License, appointment, and other fees shall be those
1806	prescribed in s. 624.501. A licensed and appointed salesperson
1807	shall be directly responsible and accountable for all acts of
1808	her or his employees and other representatives. Each service
1809	agreement company or insurer shall, on forms prescribed by the
1810	department, within 30 days after termination of the appointment,
1811	notify the department of such termination. No employee or
1812	salesperson of a motor vehicle service agreement company or
1813	insurer may directly or indirectly solicit or negotiate
1814	insurance contracts, or hold herself or himself out in any
1815	manner to be an insurance agent or solicitor, unless so
1816	qualified, licensed, and appointed therefor under the Florida
1817	Insurance Code. A motor vehicle service agreement company is not
1818	required to be licensed as a salesperson to solicit, sell,
1819	issue, or otherwise transact the motor vehicle service
1820	agreements issued by the motor vehicle service agreement
1821	company.
1822	Section 62. Section 634.420, Florida Statutes, is amended
1823	to read:
1824	634.420 License and appointment of sales representatives.-
1825	-Sales representatives for service warranty associations or
1826	insurers shall be licensed, appointed, renewed, continued,
1827	reinstated, or terminated in accordance with procedures as
1828	prescribed in chapter 626 for insurance representatives in
1829	general. However, they shall be exempt from all other provisions
1830	of chapter 626, including fingerprinting, photo identification,
1831	education, and examination. License, appointment, and other fees
1832	shall be those prescribed in s. 624.501. A licensed and
1833	appointed sales representative shall be directly responsible and
1834	accountable for all acts of the licensed sales representative's
1835	employees or other representatives. Each service warranty
1836	association or insurer shall, on forms prescribed by the
1837	department, within 30 days after termination of the appointment,
1838	notify the department of such termination. No employee or sales
1839	representative of a service warranty association or insurer may
1840	directly or indirectly solicit or negotiate insurance contracts,
1841	or hold herself or himself out in any manner to be an insurance
1842	agent or solicitor, unless so qualified, licensed, and appointed
1843	therefor under the insurance code.
1844	Section 63. Section 642.034, Florida Statutes, is amended
1845	to read:
1846	642.034 License and appointment required.--No person may
1847	solicit, negotiate, sell, or execute legal expense insurance
1848	contracts on behalf of an insurer in this state unless such
1849	person is licensed and appointed as a sales representative or is
1850	licensed and appointed under the insurance code as a general
1851	lines agent or solicitor. No person licensed and appointed as a
1852	legal expense insurance sales representative may solicit,
1853	negotiate, sell, or execute any other contract of insurance
1854	unless such person is duly licensed and appointed to do so under
1855	the provisions of chapter 626.
1856	Section 64. Section 642.036, Florida Statutes, is amended
1857	to read:
1858	642.036 Sales representatives to be licensed and
1859	appointed.--Sales representatives of legal expense insurers
1860	shall be licensed, appointed, renewed, continued, reinstated, or
1861	terminated as prescribed in chapter 626 for insurance
1862	representatives in general, and shall pay the license and
1863	appointment fees prescribed in s. 624.501. No employee or sales
1864	representative of an insurer may directly or indirectly solicit
1865	or negotiate insurance contracts, or hold herself or himself out
1866	in any manner to be an insurance agent or solicitor, unless so
1867	qualified, licensed, and appointed therefor under the insurance
1868	code.
1869	Section 65. Section 642.045, Florida Statutes, is amended
1870	to read:
1871	642.045 Procedure for refusal, suspension, or revocation
1872	of license and appointment of sales representative; departmental
1873	action upon violation by licensed insurance agent or
1874	solicitor.--
1875	(1) If any sales representative is convicted by a court of
1876	a violation of any provision of ss. 642.011-642.049, the license
1877	and appointment of such individual shall thereby be deemed to be
1878	immediately revoked without any further procedure relative
1879	thereto by the department.
1880	(2) Whenever it appears that any licensed insurance agent
1881	or solicitorhas violated the provisions of ss. 642.011-642.049,
1882	or if any grounds listed in s. 642.041 or s. 642.043 exist as to
1883	such agent or solicitor, the department may take such action as
1884	is authorized by the insurance code for a violation of the
1885	insurance code by such agent or solicitor, or such action as is
1886	authorized by this chapter for a violation of this chapter by a
1887	sales representative.
1888	Section 66. Paragraph (b) of subsection (5) and subsection
1889	(9) of section 648.27, Florida Statutes, are amended to read:
1890	648.27 Licenses and appointments; general.--
1891	(5)
1892	(b) The license of a temporary bail bond agent or runner
1893	shall continue in force until suspended, revoked, or otherwise
1894	terminated.
1895	(9) If, upon application for an appointment and such
1896	investigation as the department may make, it appears to the
1897	department that an individual has been actively engaged or is
1898	currently actively engaged in bail bond activities without being
1899	appointed as required, the department may, if it finds that such
1900	failure to be appointed is an error on the part of the insurer
1901	or employer so represented, issue or authorize the issuance of
1902	the appointment as applied for, but subject to the condition
1903	that, before the appointment is issued, all fees and taxes which
1904	would have been due had the applicant been so appointed during
1905	such current and prior periods, together with a continuation fee
1906	for such current and prior terms of appointment, shall be paid
1907	to the department. Failure to notify the department within the
1908	required time period shall result in the appointing entity being
1909	assessed a delinquent fee of $250. Delinquent fees shall be paid
1910	by the appointing entity and shall not be charged to the
1911	appointee.
1912	Section 67. Paragraph (b) of subsection (2) and
1913	subsections (5) and (6) of section 648.34, Florida Statutes, are
1914	amended to read:
1915	648.34 Bail bond agents; qualifications.--
1916	(2) To qualify as a bail bond agent, it must affirmatively
1917	appear at the time of application and throughout the period of
1918	licensure that the applicant has complied with the provisions of
1919	s. 648.355 and has obtained a temporary license pursuant to such
1920	section and:
1921	(b) The applicant is a United States citizen or legal
1922	alien who possesses work authorization from the United States
1923	Immigration and Naturalization Service and isa resident of this
1924	state. An individual who is a resident of this state shall be
1925	deemed to meet the residence requirement of this paragraph,
1926	notwithstanding the existence, at the time of application for
1927	license, of a license in the applicant's name on the records of
1928	another state as a resident licensee of such other state, if the
1929	applicant furnishes a letter of clearance satisfactory to the
1930	department that his or her resident licenses have been canceled
1931	or changed to a nonresident basis and that he or she is in good
1932	standing.
1933	(5) The department shall conduct a comprehensive
1934	investigation of each applicant, including a background check.
1935	The investigation of the applicant's qualifications, character,
1936	experience, background, and fitness shall include submission of
1937	the applicant's fingerprints to the Department of Law
1938	Enforcement and the Federal Bureau of Investigation and
1939	consideration of any state criminal records, federal criminal
1940	records, or local criminal records obtained from these agencies
1941	or from local law enforcement agencies.
1942	(6) The provisions of s. 112.011 do not apply to bail bond
1943	agents or runnersor to applicants for licensure as bail bond
1944	agents or runners.
1945	Section 68. Paragraphs (b) and (e) of subsection (1) of
1946	section 648.355, Florida Statutes, are amended to read:
1947	648.355 Temporary limited license as limited surety agent
1948	or professional bail bond agent; pending examination.--
1949	(1) The department may, in its discretion, issue a
1950	temporary license as a limited surety agent or professional bail
1951	bond agent, subject to the following conditions:
1952	(b) The applicant is a United States citizen or legal
1953	alien who possesses work authorization from the United States
1954	Immigration and Naturalization Service and isa resident of this
1955	state. An individual who is a resident of this state shall be
1956	deemed to meet the residence requirement of this paragraph,
1957	notwithstanding the existence, at the time of application for
1958	temporary license, of a license in the individual's name on the
1959	records of another state as a resident licensee of such other
1960	state, if the applicant furnishes a letter of clearance
1961	satisfactory to the department that the individual's resident
1962	licenses have been canceled or changed to a nonresident basis
1963	and that the individual is in good standing.
1964	(e) The applicant must be employed full-timeat the time
1965	of licensure, and at all times throughout the existence of the
1966	temporary license, by only one licensed and appointed
1967	supervising bail bond agent, who supervises the work of the
1968	applicant and is responsible for the licensee's conduct in the
1969	bail bond business. The applicant must be appointed by the same
1970	insurers as the supervising bail bond agent. The supervising
1971	bail bond agent shall certify monthly to the department under
1972	oath, on a form prescribed by the department, the names and
1973	hours worked each week of all temporary bail bond agents. Filing
1974	a false certification is grounds for the immediate suspension of
1975	the license and imposition of a $5,000 administrative fine. The
1976	department may adopt rules that establish standards for the
1977	employment requirements.
1978	Section 69. Paragraph (a) of subsection (2) and subsection
1979	(3) of section 648.382, Florida Statutes, are amended, and
1980	subsection (6) is added to that section, to read:
1981	648.382 Appointment of bail bond agents and temporary bail
1982	bond agents; effective date of appointment.--
1983	(2) Prior to any appointment, an appropriate officer or
1984	official of the appointing insurer in the case of a bail bond
1985	agent or an insurer, managing general agent, or bail bond agent
1986	in the case of a temporary bail bond agent must submit:
1987	(a) A certified statement or affidavit to the department
1988	stating what investigation has been made concerning the proposed
1989	appointee and the proposed appointee's background and the
1990	appointing person's opinion to the best of his or her knowledge
1991	and belief as to the moral character, fitness,and reputation of
1992	the proposed appointee. In lieu of such certified statement or
1993	affidavit, by authorizing the effectuation of an appointment for
1994	a licensee, the appointing entity certifies to the department
1995	that such investigation has been made and that the results of
1996	the investigation and the appointing person's opinion is that
1997	the proposed appointee is a person of good moral character and
1998	reputation and is fit to engage in the bail bond business;
1999	(3) By authorizing the effectuation of an appointment for
2000	a licensee, the appointing insurer certifies to the department
2001	Prior to any appointment of a bail bond agent, the appointing
2002	insurer must certify to the departmentthat the insurer will be
2003	bound by the acts of the bail bond agent acting within the scope
2004	of his or her appointment, and, in the case of a temporary bail
2005	bond agent, the appointing insurer, managing general agent, or
2006	bail bond agent, as the case may be, must certify to the
2007	department that he or she will supervise the temporary bail bond
2008	agent's activities.
2009	(6) Failure to notify the department within the required
2010	time period shall result in the appointing entity being assessed
2011	a delinquent fee of $250. Delinquent fees shall be paid by the
2012	appointing entity and shall not be charged to the appointee.
2013	Section 70. Section 648.383, Florida Statutes, is amended
2014	to read:
2015	648.383 Renewal, continuation, reinstatement, and
2016	termination of appointment; bail bond agents.--
2017	(1) The appointment of a bail bond agent shall continue in
2018	force unless suspended, revoked, or otherwise terminated,
2019	subject to a renewal request filed by the appointing entity in
2020	the appointee's birth month and every 24 months thereafter. A
2021	renewal request must be filed with the department or person
2022	designated by the department to administer appointmentsalong
2023	with payment of the renewal appointment fee and taxes as
2024	prescribed in s. 624.501.
2025	(2) Each appointing person or person designated by the
2026	department to administer appointments must file with the
2027	departmentthe lists, statement, and information as to each bail
2028	bond agent whose appointment is being renewed, accompanied by
2029	payment of the applicable renewal fees and taxes as prescribed
2030	in s. 624.501, by a date established by the department following
2031	the month during which the appointment will expire.
2032	(3) An appointment may be renewed by the department
2033	without penalty if the information required under subsection (2)
2034	is received by the department on or prior to the expiration of
2035	the appointment in the licensee's birth monthdate established
2036	by the department for renewal, and such appointment shall be
2037	renewed,is effective on the first day of the month succeeding
2038	the month in whichthe appointment was scheduled to expire.
2039	(4) If the information required under subsection (2) is
2040	received by the department after the renewal date established by
2041	the department for renewal, the appointment may be renewed by
2042	the department if thean additional appointment, late filing,
2043	continuation, and reinstatement fees accompanyfee accompanies
2044	the application as required under s. 624.501.
2045	Section 71. Subsections (1) and (3) of section 648.50,
2046	Florida Statutes, are amended to read:
2047	648.50 Effect of suspension, revocation upon associated
2048	licenses and licensees.--
2049	(1) Upon the suspension, revocation, or refusal to renew
2050	or continue any license or appointment or the eligibility to
2051	hold a license or appointment of a bail bond agent or,temporary
2052	bail bond agent, or runner,the department shall at the same
2053	time likewise suspend or revoke all other licenses or
2054	appointments and the eligibility to hold any other such licenses
2055	or appointments which may be held by the licensee under the
2056	Florida Insurance Code.
2057	(3) No person whose license as a bail bond agent or,
2058	temporary bail bond agent, or runnerhas been revoked or
2059	suspended shall be employed by any bail bond agent, have any
2060	ownership interest in any business involving bail bonds, or have
2061	any financial interest of any type in any bail bond business
2062	during the period of revocation or suspension.
2063	Section 72. Sections 626.032 and 626.361, Florida
2064	Statutes, are repealed.
2065	Section 73. Paragraph (d) of subsection (6) of section
2066	627.351, Florida Statutes, is amended to read:
2067	627.351 Insurance risk apportionment plans.--
2068	(6) CITIZENS PROPERTY INSURANCE CORPORATION.--
2069	(d)1. It is the intent of the Legislature that the rates
2070	for coverage provided by the corporation be actuarially sound
2071	and not competitive with approved rates charged in the admitted
2072	voluntary market, so that the corporation functions as a
2073	residual market mechanism to provide insurance only when the
2074	insurance cannot be procured in the voluntary market. Rates
2075	shall include an appropriate catastrophe loading factor that
2076	reflects the actual catastrophic exposure of the corporation.
2077	2. For each county, the average rates of the corporation
2078	for each line of business for personal lines residential
2079	policies excluding rates for wind-only policies shall be no
2080	lower than the average rates charged by the insurer that had the
2081	highest average rate in that county among the 20 insurers with
2082	the greatest total direct written premium in the state for that
2083	line of business in the preceding year, except that with respect
2084	to mobile home coverages, the average rates of the corporation
2085	shall be no lower than the average rates charged by the insurer
2086	that had the highest average rate in that county among the 5
2087	insurers with the greatest total written premium for mobile home
2088	owner's policies in the state in the preceding year.
2089	3. Rates for personal lines residential wind-only policies
2090	must be actuarially sound and not competitive with approved
2091	rates charged by authorized insurers. However, for personal
2092	lines residential wind-only policies issued or renewed between
2093	July 1, 2002, and June 30, 2003, the maximum premium increase
2094	must be no greater than 10 percent of the Florida Windstorm
2095	Underwriting Association premium for that policy in effect on
2096	June 30, 2002, as adjusted for coverage changes and seasonal
2097	occupancy surcharges. For personal lines residential wind-only
2098	policies issued or renewed between July 1, 2003, and June 30,
2099	2004, the corporation shall use its existing filed and approved
2100	wind-only rating and classification plans, provided, however,
2101	that the maximum premium increase must be no greater than 20
2102	percent of the premium for that policy in effect on June 30,
2103	2003, as adjusted for coverage changes and seasonal occupancy
2104	surcharges.The personal lines residential wind-only rates for
2105	the corporation effective July 1, 2003, must be based on a rate
2106	filing by the corporation which establishes rates which are
2107	actuarially sound and not competitive with approved rates
2108	charged by authorized insurers.Corporation rate manuals shall
2109	include a rate surcharge for seasonal occupancy. To ensure that
2110	personal lines residential wind-only rates effective on or after
2111	July 1, 20042003, are not competitive with approved rates
2112	charged by authorized insurers, the corporation, in conjunction
2113	with the office, shall develop a wind-only rate making
2114	methodology, which methodology shall be contained in a rate
2115	filing made by the corporation with the office by January 1,
2116	2004. If the office thereafter determines that the wind-only
2117	rates or rating factors filed by the corporation fail to comply
2118	with the wind-only rate making methodology provided for in this
2119	subsection, it shall so notify the corporation and require the
2120	corporation to amend its rates or rating factors to come into
2121	compliance within 90 days of notice from the office. The office
2122	shall report to the Speaker of the House of Representatives and
2123	the President of the Senate on the provisions of the wind-only
2124	rate making methodology by January 31, 2004the department, by
2125	March 1 of each year, shall provide the corporation, for each
2126	county in which there are geographical areas in which personal
2127	lines residential wind-only policies may be issued, the average
2128	rates charged by the insurer that had the highest average rate
2129	in that county for wind coverage in that insurer's rating
2130	territories which most closely approximate the geographical area
2131	in that county in which personal lines residential wind-only
2132	policies may be written by the corporation. The average rates
2133	provided must be from an insurer among the 20 insurers with the
2134	greatest total direct written premium in the state for personal
2135	lines residential property insurance for the preceding year.
2136	With respect to mobile homes, the five insurers with the
2137	greatest total written premium for that line of business in the
2138	preceding year shall be used. The corporation shall certify to
2139	the department that its average personal lines residential wind-
2140	only rates are no lower in each county than the average rates
2141	provided by the department. The department is authorized to
2142	adopt rules to establish reporting requirements to obtain the
2143	necessary wind-only rate information from insurers to implement
2144	this provision.
2145	4. Rates for commercial lines coverage shall not be
2146	subject to the requirements of subparagraph 2., but shall be
2147	subject to all other requirements of this paragraph and s.
2148	627.062.
2149	5. Nothing in this paragraph shall require or allow the
2150	corporation to adopt a rate that is inadequate under s. 627.062.
2151	6. The corporation shall certify to the office at least
2152	twice annually that its personal lines rates comply with the
2153	requirements of subparagraphs 1. and 2. If any adjustment in the
2154	rates or rating factors of the corporation is necessary to
2155	ensure such compliance, the corporation shall make and implement
2156	such adjustments and file its revised rates and rating factors
2157	with the office. If the office thereafter determines that the
2158	revised rates and rating factors fail to comply with the
2159	provisions of subparagraphs 1. and 2, it shall notify the
2160	corporation and require the corporation to amend its rates or
2161	rating factors in conjunction with its next rate filing. The
2162	office must notify the corporation by electronic means of any
2163	rate filing it approves for any insurer among the insurers
2164	referred to in subparagraph 2make a rate filing at least once a
2165	year, but no more often than quarterly.
2166	7. In addition to the rates otherwise determined pursuant
2167	to this paragraph, the corporation shall impose and collect an
2168	amount equal to the premium tax provided for in s. 624.509 to
2169	augment the financial resources of the corporation.
2170	8.a To assist the corporation in developing additional
2171	ratemaking methods to assure compliance with subparagraphs 1.
2172	and 4., the corporation shall appoint a rate methodology panel
2173	consisting of one person recommended by the Florida Association
2174	of Insurance Agents, one person recommended by the Professional
2175	Insurance Agents of Florida, one person recommended by the
2176	Florida Association of Insurance and Financial Advisors, one
2177	person recommended by the insurer with the highest voluntary
2178	market share of residential property insurance business in the
2179	state, one person recommended by the insurer with the second-
2180	highest voluntary market share of residential property insurance
2181	business in the state, one person recommended by an insurer
2182	writing commercial residential property insurance in this state,
2183	one person recommended by the Office of Insurance Regulation,
2184	and one board member designated by the board chairman, who shall
2185	serve as chairman of the panel.
2186	b. By January 1, 2004, the rate methodology panel shall
2187	provide a report to the corporation of its findings and
2188	recommendations for the use of additional ratemaking methods and
2189	procedures, including the use of a rate-equalization surcharge
2190	in an amount sufficient to assure that the total cost of
2191	coverage for policyholders or applicants to the corporation is
2192	sufficient to comply with subparagraph 1.
2193	c. Within 30 days after such report, the corporation shall
2194	present to the President of the Senate, the Speaker of the House
2195	of Representatives, the minority party leaders of each house of
2196	the Legislature, and the chairs of the standing committees of
2197	each house of the Legislature having jurisdiction of insurance
2198	issues, a plan for implementing the additional ratemaking
2199	methods and an outline of any legislation needed to facilitate
2200	use of the new methods.
2201	d. The plan must include a provision that producer
2202	commissions paid by the corporation shall not be calculated in
2203	such a manner as to include any rate-equalization surcharge.
2204	However, without regard to the plan to be developed or its
2205	implementation, producer commissions paid by the corporation for
2206	each account, other than the quota share primary program, shall
2207	remain fixed as to percentage, effective rate, calculation, and
2208	payment method until January 1, 2004.
2209	9. By January 1, 2004, the corporation shall develop a
2210	notice to policyholders or applicants that the rates of Citizens
2211	Property Insurance Corporation are intended to be higher than
2212	the rates of any admitted carrier and providing other
2213	information the corporation deems necessary to assist consumers
2214	in finding other voluntary admitted insurers willing to insure
2215	their property.
2216	Section 74. Section 624.105, Florida Statutes, is created
2217	to read:
2218	624.105 Waiver of customer liability.--Any regulated
2219	company as defined in s. 350.111, any electric utility as
2220	defined in s. 366.02(2), any utility as defined in s.
2221	367.021(12) or s.367.022(2) and (7), and any provider of
2222	communications services as defined in s. 202.11(3) may charge
2223	for and include an optional waiver of liability provision in
2224	their customer contracts under which the entity agrees to waive
2225	all or a portion of the customer's liability for service from
2226	the entity for a defined period in the event of the customer's
2227	call to active military service, death, disability, involuntary
2228	unemployment, qualification for family leave, or similar
2229	qualifying event or condition. Such provisions may not be
2230	effective in the customer's contract with the entity unless
2231	affirmatively elected by the customer. No such provision shall
2232	constitute insurance so long as the provision is a contract
2233	between the entity and its customer.
2234	Section 75. Section 717.1071, Florida Statutes, is created
2235	to read:
2236	717.1071 Lost owners of unclaimed demutualization,
2237	rehabilitation, or related reorganization proceeds.--
2238	(1) Property distributable in the course of a
2239	demutualization, rehabilitation, or related reorganization of an
2240	insurance company is deemed abandoned 2 years after the date the
2241	property is first distributable if, at the time of the first
2242	distribution, the last known address of the owner on the books
2243	and records of the holder is known to be incorrect or the
2244	distribution or statements are returned by the post office as
2245	undeliverable; and the owner has not communicated in writing
2246	with the holder or its agent regarding the interest or otherwise
2247	communicated with the holder regarding the interest as evidenced
2248	by a memorandum or other record on file with the holder or its
2249	agent.
2250	(2) Property distributable in the course of
2251	demutualization, rehabilitation, or related reorganization of a
2252	mutual insurance company that is not subject to subsection (1)
2253	shall be reportable as otherwise provided by this chapter.
2254	(3) Property subject to this section shall be reported and
2255	delivered no later than May 1 as of the preceding December 31,
2256	however the initial report under this section shall be filed no
2257	later than November 1, 2003, as of December 31, 2002.
2258	Section 76. Subsection (8) of section 624.430, Florida
2259	Statutes, is renumbered as subsection (9), and new subsection
2260	(8) is added to said section, to read:
2261	624.430 Withdrawal of insurer or discontinuance of writing
2262	certain kinds or lines of insurance.--
2263	(8) Notwithstanding subsection (7), any insurer desiring
2264	to surrender its certificate of authority, withdraw from this
2265	state, or discontinue the writing of any one or multiple kinds
2266	or lines of insurance in this state is expected to have availed
2267	itself of all reasonably available reinsurance. Reasonably
2268	available reinsurance shall include unrealized reinsurance,
2269	which is defined as reinsurance recoverable on known losses
2270	incurred and due under valid reinsurance contracts that have not
2271	been identified in the normal course of business and have not
2272	been reported in financial statements filed with the Office of
2273	Insurer Regulation. Within 90 days after surrendering its
2274	certificate of authority, withdrawing from this state, or
2275	discontinuing the writing of any one or multiple kinds or lines
2276	of insurance in this state, the insurer shall certify to the
2277	Director of the Office of Insurer Regulation that the insurer
2278	has engaged an independent third party to search for unrealized
2279	reinsurance, and that the insurer has made all relevant books
2280	and records available to such third party. The compensation to
2281	such third party may be a percentage of unrealized reinsurance
2282	identified and collected.
2283	Section 77. Subsection (11) of section 626.7451, Florida
2284	Statutes, is amended to read:
2285	626.7451 Managing general agents; required contract
2286	provisions.--No person acting in the capacity of a managing
2287	general agent shall place business with an insurer unless there
2288	is in force a written contract between the parties which sets
2289	forth the responsibility for a particular function, specifies
2290	the division of responsibilities, and contains the following
2291	minimum provisions:
2292	(11) A licensed managing general agent, when placing
2293	business with an insurer under this code, may charge a per-
2294	policy fee not to exceed $40$25. In no instance shall the
2295	aggregate of per-policy fees for a placement of business
2296	authorized under this section, when combined with any other per-
2297	policy fee charged by the insurer, result in per-policy fees
2298	which exceed the aggregate amount of $40$25. The per-policy fee
2299	shall be a component of the insurer's rate filing and shall be
2300	fully earned. A managing general agent that collects a per-
2301	policy fee shall remit a minimum of $5 per policy to the
2302	Division of Insurance Fraud of the Department of Financial
2303	Services, which shall be dedicated to the prevention and
2304	detection of motor vehicle insurance fraud, and an additional $5
2305	per policy, 95 percent of which shall be remitted to the Justice
2306	Administration Commission, which shall distribute the collected
2307	fees to the state attorneys of the 20 judicial circuits for
2308	investigating and prosecuting cases of motor vehicle insurance
2309	fraud. The state attorneys must adopt an allocation formula that
2310	ensures equitable distribution among the 20 circuits which
2311	includes, but is not limited to, the population area served. The
2312	remaining 5 percent shall be remitted to the Office of Statewide
2313	Prosecution for investigating and prosecuting cases of motor
2314	vehicle insurance fraud. No later than July 1, 2005, the state
2315	attorneys and the Office of Statewide Prosecutor must provide a
2316	report to the President of the Senate and the Speaker of the
2317	House of Representatives evaluating the effectiveness of the
2318	investigation, detection, and prosecution of motor vehicle
2319	insurance fraud as it related to the moneys generated by the
2320	per-policy fee.
2321
2322	For the purposes of this section and ss. 626.7453 and 626.7454,
2323	the term "controlling person" or "controlling" has the meaning
2324	set forth in s. 625.012(5)(b)1., and the term "controlled
2325	person" or "controlled" has the meaning set forth in s.
2326	625.012(5)(b)2.
2327	Section 78. Section 624.4623, Florida Statutes, is created
2328	to read:
2329	624.4623 Independent Educational Institution Self-
2330	Insurance Funds--
2331	(1) Notwithstanding any other provision of law, any two or
2332	more independent nonprofit colleges or universities accredited
2333	by the Commission on Colleges of the Southern Association of
2334	Colleges and Schools or independent, nonprofit, accredited
2335	secondary educational institutions, located in and chartered by
2336	the state of Florida, may form a self-insurance fund for the
2337	purpose of pooling and spreading liabilities of its group
2338	members in any property or casualty risk or surety insurance or
2339	securing the payment of benefits under chapter 440, provided the
2340	independent educational institution self-insurance fund that is
2341	created must:
2342	(a) Have annual normal premiums in excess of $5 million;
2343	(b) Maintain a continuing program of excess insurance
2344	coverage and reserve evaluation to protect the financial
2345	stability of the fund in an amount and manner determined by a
2346	qualified and independent actuary;
2347	(c) Submit annually an audited fiscal year-end financial
2348	statement by an independent certified public accountant within 6
2349	months after the end of the fiscal year to the office; and
2350	(d) Have a governing body which is comprised entirely of
2351	independent educational institution officials.
2352	(2) An independent educational institution self-insurance
2353	fund that meets the requirements of this section is not subject
2354	to s. 624.4621 and is not required to file any report with the
2355	department under s. 440.38(2)(b) which is uniquely required of
2356	group self-insurer funds qualified under s. 624.4621. If any of
2357	the requirements of this section are not met, the independent
2358	educational self-insurance fund is subject to the requirements
2359	of s. 624.4621.
2360	Section 79. Present subsections (6), (7), (8), (9), and
2361	(10) are renumbered (7), (8), (9), (10), and (11), respectively,
2362	and new subsection (6) is added to section 624.81, Florida
2363	Statutes, to read:
2364	624.81 Notice to comply with written requirements of
2365	department; noncompliance.--
2366	(6) Any insurer subject to administrative supervision is
2367	expected to avail itself of all reasonably available
2368	reinsurance. Reasonably available reinsurance shall include
2369	unrealized reinsurance, which is defined as reinsurance
2370	recoverable on known losses incurred and due under valid
2371	reinsurance contracts that have not been identified in the
2372	normal course of business and have not been reported in
2373	financial statements filed with the Office of Insurance
2374	Regulation. Within 90 days of being placed under administrative
2375	supervision, the insurer shall certify to the Director of the
2376	Office of Insurance Regulation that the insurer has engaged an
2377	independent third party to search for unrealized reinsurance,
2378	and that the insurer has made all relevant books and records
2379	available to the third party. The compensation to the third
2380	party may be a percentage of unrealized reinsurance identified
2381	and collected.
2382	(7)(6)If the department and the insurer are unable to
2383	agree on the provisions of the plan, the department may require
2384	the insurer to take such corrective action as may be reasonably
2385	necessary to remove the causes and conditions giving rise to the
2386	need for administrative supervision.
2387	(8)(7)The insurer shall have 60 days, or a longer period
2388	of time as designated by the department but not to exceed 120
2389	days, after the date of the written agreement or the receipt of
2390	the department's plan within which to comply with the
2391	requirements of the department. At the conclusion of the
2392	initial period of supervision, the department may extend the
2393	supervision in increments of 60 days or longer, not to exceed
2394	120 days, if conditions justifying supervision exist. Each
2395	extension of supervision shall provide the insurer with a point
2396	of entry pursuant to chapter 120.
2397	(9)(8)The initiation or pendency of administrative
2398	proceedings arising from actions taken under this section shall
2399	not preclude the department from initiating judicial proceedings
2400	to place an insurer in conservation, rehabilitation, or
2401	liquidation or initiating other delinquency proceedings however
2402	designated under the laws of this state.
2403	(10)(9)If it is determined that the conditions giving
2404	rise to administrative supervision have been remedied so that
2405	the continuance of its business is no longer hazardous to the
2406	public or to its insureds, the department shall release the
2407	insurer from supervision.
2408	(11)(10)The department may adopt rules to define
2409	standards of hazardous financial condition and corrective action
2410	substantially similar to that indicated in the National
2411	Association of Insurance Commissioners' 1997 "Model Regulation
2412	to Define Standards and Commissioner's Authority for Companies
2413	Deemed to be in Hazardous Financial Condition," which are
2414	necessary to implement the provisions of this part.
2415	Section 80. Paragraph (x) of subsection (1) of section
2416	626.9541, Florida Statutes, is amended to read:
2417	626.9541 Unfair methods of competition and unfair or
2418	deceptive acts or practices defined.--
2419	(1) UNFAIR METHODS OF COMPETITION AND UNFAIR OR DECEPTIVE
2420	ACTS.--The following are defined as unfair methods of
2421	competition and unfair or deceptive acts or practices:
2422	(x) Refusal to insure.--In addition to other provisions of
2423	this code, the refusal to insure, or continue to insure, any
2424	individual or risk solely because of:
2425	1. Race, color, creed, marital status, sex, or national
2426	origin;
2427	2. The residence, age, or lawful occupation of the
2428	individual or the location of the risk, unless there is a
2429	reasonable relationship between the residence, age, or lawful
2430	occupation of the individual or the location of the risk and the
2431	coverage issued or to be issued;
2432	3. The insured's or applicant's failure to agree to place
2433	collateral business with any insurer, unless the coverage
2434	applied for would provide liability coverage which is excess
2435	over that provided in policies maintained on property or motor
2436	vehicles;
2437	4. The insured's or applicant's failure to purchase
2438	noninsurance services or commodities, including automobile
2439	services as defined in s. 624.124; or
2440	5. The fact that the insured or applicant is a public
2441	official; or
2442	6.5.The fact that the insured or applicant had been
2443	previously refused insurance coverage by any insurer, when such
2444	refusal to insure or continue to insure for this reason occurs
2445	with such frequency as to indicate a general business practice.
2446	Section 81. This act shall take effect upon becoming a
2447	law.