Florida Senate - 2005                        SENATOR AMENDMENT
    Bill No. CS for CS for SB 1912
                        Barcode 553460
                            CHAMBER ACTION
              Senate                               House
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       05/04/2005 11:09 AM         .                    
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11  Senator Baker moved the following amendment:
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13         Senate Amendment (with title amendment) 
14         On page 39, between lines 20 and 21,
15  
16  insert:  
17         Section 34.  Section 628.511, Florida Statutes, is
18  amended to read:
19         628.511  Clearing corporations Book entry accounting
20  system.--
21         (1)  The purpose of this section is to authorize
22  domestic insurers to utilize modern systems for holding and
23  transferring securities without physical delivery of
24  securities certificates, subject to appropriate rules of the
25  commission.
26         (2)  The following terms are defined for use in this
27  section:
28         (a)  "Securities" means instruments as defined in s.
29  678.1021.
30         (b)  "Clearing corporation" means a clearing
31  corporation as defined in s. 678.1021. The term "clearing
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    Florida Senate - 2005                        SENATOR AMENDMENT
    Bill No. CS for CS for SB 1912
                        Barcode 553460
 1  corporation" also includes "Treasury/Reserve Automated Debt
 2  Entry Securities System" and "Treasury Direct" book-entry
 3  securities systems established pursuant to 31 U.S.C. ss. 3100
 4  et seq., 12 U.S.C. 391 and 5 U.S.C. 301.
 5         (c)  "Custodian" "Direct participant" means a national
 6  bank, state bank, or trust company, or broker/dealer that
 7  which maintains an account in its name in a clearing
 8  corporation and through which an insurance company
 9  participates in a clearing corporation.
10         (d)  "Federal Reserve book-entry system" means the
11  computerized systems sponsored by the United States Department
12  of the Treasury and agencies and instrumentalities of the
13  United States for holding and transferring securities of the
14  United States Government and such agencies and
15  instrumentalities, respectively, in Federal Reserve banks
16  through banks which are members of the Federal Reserve System
17  or which otherwise have access to such computerized systems.
18         (e)  "Member bank" means a national bank, state bank or
19  trust company which is a member of the Federal Reserve System
20  and through which an insurer participates in the Federal
21  Reserve book-entry system.
22         (3)  Notwithstanding any other provision of law, a
23  domestic insurer may deposit or arrange for the deposit of
24  securities held in or purchased for its general account and
25  its separate accounts in a clearing corporation or in the
26  Federal Reserve book-entry system.  When securities are
27  deposited with a clearing corporation, certificates
28  representing securities of the same class of the same issuer
29  may be merged and held in bulk in the name of the nominee of
30  such clearing corporation with any other securities deposited
31  with such clearing corporation by any person, regardless of
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    Florida Senate - 2005                        SENATOR AMENDMENT
    Bill No. CS for CS for SB 1912
                        Barcode 553460
 1  the ownership of such securities, and certificates
 2  representing securities of small denominations may be merged
 3  into one or more certificates of larger denominations.  The
 4  records of any custodian bank through which an insurer holds
 5  securities in the Federal Reserve book-entry system, and the
 6  records of any custodian banks through which an insurer holds
 7  securities in a clearing corporation, shall at all times show
 8  that such securities are held for such insurer and for which
 9  accounts thereof. Ownership of, and other interests in, such
10  securities may be transferred by bookkeeping entry on the
11  books of such clearing corporation or in the Federal Reserve
12  book-entry system without, in either case, physical delivery
13  of certificates representing such securities.
14         (4)  The commission may adopt rules governing the
15  deposit by insurers of securities with clearing corporations
16  and in the Federal Reserve book-entry system.
17  
18  (Redesignate subsequent sections.)
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20  
21  ================ T I T L E   A M E N D M E N T ===============
22  And the title is amended as follows:
23         Delete everything before the enacting clause
24  
25  and insert:
26                  A bill to be entitled
27         An act relating to insurance; amending s.
28         624.317, F.S.; including insurance agencies
29         among entities the Department of Financial
30         Services is authorized to investigate; amending
31         s. 624.318, F.S.; providing for electronic
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    Florida Senate - 2005                        SENATOR AMENDMENT
    Bill No. CS for CS for SB 1912
                        Barcode 553460
 1         scanning in the course of investigations and
 2         examinations; amending s. 624.501, F.S.;
 3         clarifying a license fee; amending s. 626.015,
 4         F.S.; redefining the term "home state";
 5         defining the term "resident"; amending s.
 6         626.016, F.S.; including insurance agencies
 7         among entities subject to regulation by the
 8         Chief Financial Officer; amending s. 626.025,
 9         F.S.; correcting cross-references; amending s.
10         626.112, F.S.; delaying the effective date by
11         which agencies must obtain a license; providing
12         that an agency may file for registration in
13         lieu of licensure, under specified conditions;
14         imposing a fine on any agency that fails to
15         timely apply for licensure or registration;
16         deleting certain agency licensure requirement
17         provisions; amending s. 626.171, F.S.;
18         specifying licensure and registration
19         application requirements for insurance entities
20         other than insurance agencies; deleting a
21         provision applying to insurance agency license
22         application requirements; amending s. 626.172,
23         F.S.; revising insurance agency licensure
24         application requirements; providing procedures
25         and limitations; providing duties of the
26         department; amending s. 626.221, F.S.; revising
27         examination requirements; amending s. 626.2815,
28         F.S.; revising continuing education
29         requirements; amending ss. 626.292 and 626.321,
30         F.S.; correcting cross-references, to conform;
31         amending s. 626.342, F.S.; including insurance
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    Florida Senate - 2005                        SENATOR AMENDMENT
    Bill No. CS for CS for SB 1912
                        Barcode 553460
 1         agencies under provisions prohibiting
 2         furnishing supplies to certain unlicensed
 3         agents and imposing civil liability under
 4         certain circumstances; amending s. 626.382,
 5         F.S.; providing for renewal of licenses;
 6         amending s. 626.451, F.S.; revising
 7         requirements for appointment; amending s.
 8         626.536, F.S.; including insurance agencies
 9         under an action reporting requirement; amending
10         s. 626.561, F.S.; including insurance agencies
11         under provisions providing funds reporting and
12         accounting requirements and imposing criminal
13         penalties; amending s. 626.572, F.S.; including
14         insurance agencies under provision prohibiting
15         rebating under certain circumstances; amending
16         s. 626.601, F.S.; including insurance agencies
17         under provisions authorizing the department to
18         inquire into improper conduct; creating s.
19         626.602, F.S.; authorizing the department to
20         disapprove the use of certain names under
21         certain circumstances; amending s. 626.6115,
22         F.S.; providing an additional ground for the
23         department to take compulsory adverse insurance
24         agency license actions; providing that the
25         existence of grounds for adverse action against
26         a licensed agency does not constitute grounds
27         for adverse action against another licensed
28         agency; amending s. 626.6215, F.S.; providing
29         an additional ground for the department to take
30         discretionary adverse insurance agency license
31         actions; providing that the existence of
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    Florida Senate - 2005                        SENATOR AMENDMENT
    Bill No. CS for CS for SB 1912
                        Barcode 553460
 1         grounds for adverse action against a licensed
 2         agency does not constitute grounds for adverse
 3         action against another licensed agency;
 4         amending s. 626.747, F.S.; revising agent
 5         requirements for branch agencies to include
 6         life or health agents; amending s. 626.621,
 7         F.S.; revising criteria for the department's
 8         refusal, suspension or revocation of a license
 9         or appointment; amending s. 626.641, F.S.;
10         providing requirements for reinstatement of a
11         previously suspended license or appointment;
12         revising criteria for reapplication and
13         requalification for a previously revoked
14         license or appointment; amending s. 626.7351,
15         F.S.; revising the qualifications for a
16         customer representative's license; amending ss.
17         626.7355 and 626.8411, F.S.; deleting
18         cross-references, to conform; creating s.
19         626.84201, F.S.; providing for the issuance of
20         a nonresident title insurance agent license;
21         amending s. 648.50, F.S.; revising the persons
22         whose license or appointment may be revoked or
23         suspended when a bail bond's license or
24         appointment is revoked or suspended; repealing
25         s. 626.592, F.S., relating to primary agents;
26         creating s. 624.1275, F.S.; providing a
27         restriction for state agencies or political
28         subdivisions from preventing a licensed agent
29         from responding to a bid or negotiation for an
30         insurance product; amending s. 628.511, F.S.;
31         revising the definitions of the terms "clearing
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    Florida Senate - 2005                        SENATOR AMENDMENT
    Bill No. CS for CS for SB 1912
                        Barcode 553460
 1         corporation" and "custodian"; deleting
 2         definitions of the terms "book entry system"
 3         and "member bank" and making conforming
 4         changes; providing an effective date.
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