HB 501

1	A bill to be entitled
2	An act relating to insurance field representatives and
3	operations; amending s. 626.321, F.S.; including service
4	warranty agreement sales covering communications equipment
5	under certain limited licensing provisions; providing for
6	additional appointment authority for certain licensed
7	branch locations of a communications equipment retail
8	vendor; revising certain application, appointment, and
9	licensing requirements for certain entities; providing for
10	payment of appointment fees; providing an exception;
11	requiring renewals of appointments; providing for a
12	renewal fee; amending s. 626.731, F.S.; revising a
13	qualification for licensure as a general lines agent;
14	amending s. 627.7295, F.S.; deleting a requirement for
15	inclusion of an agent fee in a rate filing; providing an
16	effective date.
17
18	Be It Enacted by the Legislature of the State of Florida:
19
20	Section 1.  Paragraph (i) of subsection (1) of section
21	626.321, Florida Statutes, is amended to read:
22	626.321  Limited licenses.--
23	(1)  The department shall issue to a qualified individual,
24	or a qualified individual or entity under paragraphs (c), (d),
25	(e), and (i), a license as agent authorized to transact a
26	limited class of business in any of the following categories:
27	(i)  In-transit and storage personal property insurance;
28	communications equipment property insurance, or communications
29	equipment inland marine insurance, and communications equipment
30	service warranty agreement sales.--
31	1.  A license covering only the insurance of personal
32	property not held for resale, covering the risks of
33	transportation or storage in rented or leased motor vehicles,
34	trailers, or self-service storage facilities, as the latter are
35	defined in s. 83.803, may be issued, without examination, only
36	to employees or authorized representatives of lessors who rent
37	or lease motor vehicles, trailers, or self-service storage
38	facilities and who are authorized by an insurer to issue
39	certificates or other evidences of insurance to lessees of such
40	motor vehicles, trailers, or self-service storage facilities
41	under an insurance policy issued to the lessor. A person
42	licensed under this paragraph shall give a prospective purchaser
43	of in-transit or storage personal property insurance written
44	notice that his or her homeowner's policy may provide coverage
45	for the loss of personal property and that the purchase of such
46	insurance is not required under the lease terms.
47	2.  A license covering only communications equipment, for
48	the loss, theft, mechanical failure, malfunction of or damage
49	to, communications equipment. The license may be issued only to:
50	a.  Employees or authorized representatives of a licensed
51	general lines agent;
52	b.  The lead Each business location of a retail vendor of
53	communications equipment and its branch locations; or
54	c.  Employees, agents, or authorized representatives of a
55	retail vendor of communications equipment.
56
57	The license authorizes the sale of such policies, or
58	certificates under a group master policy, only with respect to
59	the sale of, or provision of communications service for,
60	communications equipment. A general lines agent is not required
61	to obtain a license under this subparagraph to offer or sell
62	communications equipment property insurance or communication
63	equipment inland marine insurance. The license also authorizes
64	sales of service warranty agreements covering only
65	communications equipment to the same extent as if licensed under
66	s. 634.419 or s. 634.420. The provisions of this chapter
67	requiring submission of fingerprints do not apply to
68	communications equipment licenses issued to qualified entities
69	under this subparagraph. Licensees offering policies under this
70	subparagraph must receive initial training from, and have a
71	contractual relationship with, a general lines agent. For the
72	purposes of this subparagraph, the term "communications
73	equipment" means handsets, pagers, personal digital assistants,
74	portable computers, automatic answering devices, and other
75	devices or accessories used to originate or receive
76	communications signals or service, and includes services related
77	to the use of such devices, such as consumer access to a
78	wireless network; however, the term does not include
79	telecommunications switching equipment, transmission wires, cell
80	site transceiver equipment, or other equipment and systems used
81	by telecommunications companies to provide telecommunications
82	service to consumers. A branch location of a retail vendor of
83	communications equipment licensed pursuant to paragraph (2)(b)
84	may, in lieu of obtaining an appointment from an insurer or
85	warranty association as provided in paragraph (2)(c), obtain a
86	single appointment from the associated lead business location
87	licensee licensed under paragraph (2)(a) and pay the prescribed
88	appointment fee under s. 624.501 provided the lead business
89	location has a single appointment from each insurer or warranty
90	association represented and such appointment provides that it
91	applies to the lead business location and all of its branch
92	locations. Any branch location individually appointed by an
93	insurer under paragraph (2)(c) prior to January 1, 2006, may
94	replace its appointments with an appointment from its lead
95	location at no charge. Branch location appointments shall be
96	renewed on the first annual anniversary of licensure of the lead
97	business location occurring more than 24 months after the
98	initial appointment date and every 24 months thereafter.
99	Notwithstanding s. 624.501, after July 1, 2006, the renewal fee
100	applicable to such branch location appointments shall be $30 per
101	appointment.
102	Section 2.  Paragraph (f) of subsection (1) of section
103	626.731, Florida Statutes, is amended to read:
104	626.731  Qualifications for general lines agent's
105	license.--
106	(1)  The department shall not grant or issue a license as
107	general lines agent to any individual found by it to be
108	untrustworthy or incompetent or who does not meet each of the
109	following qualifications:
110	(f)  The applicant is not a service representative, a
111	managing general agent in this state, or a special agent or
112	similar service representative of a health insurer which also
113	transacts property, casualty, or surety insurance; except that
114	the president, vice president, secretary, or treasurer,
115	including a member of the board of directors, of a corporate
116	insurer, if otherwise qualified under and meeting the
117	requirements of this part, may be licensed and appointed as a
118	local resident agent.
119	Section 3.  Paragraph (a) of subsection (5) of section
120	627.7295, Florida Statutes, is amended to read:
121	627.7295  Motor vehicle insurance contracts.--
122	(5)(a)  A licensed general lines agent may charge a
123	per-policy fee not to exceed $10 to cover the administrative
124	costs of the agent associated with selling the motor vehicle
125	insurance policy if the policy covers only personal injury
126	protection coverage as provided by s. 627.736 and property
127	damage liability coverage as provided by s. 627.7275 and if no
128	other insurance is sold or issued in conjunction with or
129	collateral to the policy. The per-policy fee must be a component
130	of the insurer's rate filing and may not be charged by an agent
131	unless the fee is included in the filing. The fee is not
132	considered part of the premium except for purposes of the
133	office's review of expense factors in a filing made pursuant to
134	s. 627.062.
135	Section 4.  This act shall take effect upon becoming a law.

CODING: Words stricken are deletions; words underlined are additions.