CS/CS/HB 1381

1
A bill to be entitled
2An act relating to insurance representatives; amending s.
3626.221, F.S.; providing an exemption from the required
4written examination to certain applicants for licensure as
5a claims adjuster; amending s. 626.7851, F.S.; authorizing
6certain programs to offer correspondence courses to
7applicants for licensure as a life insurance agent;
8amending s. 626.8311, F.S.; authorizing certain programs
9to offer correspondence courses to applicants for
10licensure as a health insurance agent; amending s.
11626.747, F.S.; authorizing certain licensed agents to be
12the agent in charge of branch locations under certain
13circumstances; amending s. 626.865, F.S.; requiring public
14adjusters to maintain their surety bond unimpaired for a
15certain period; amending s. 626.869, F.S.; authorizing an
16extension of time to complete continuing education
17requirements for public adjusters; amending s. 626.8698,
18F.S.; designating the Department of Financial Services as
19the appropriate agency responsible for disciplinary action
20against public adjusters; amending s. 626.921, F.S.;
21providing that the department is responsible for approval
22of the surplus lines agent manual; amending s. 626.9531,
23F.S.; revising requirements for identification of
24insurers, agents, and insurance contracts; specifying
25absence of liability and prohibiting causes of action
26against certain agents for insolvency of certain entities
27under certain circumstances; providing definitions;
28amending s. 626.9611, F.S.; requiring that the department
29and Financial Services Commission adopt rules prohibiting
30the use of unfair and deceptive practices in the sale of
31insurance to members of the United States Armed Forces;
32providing limitations; providing an appropriation;
33providing effective dates.
34
35Be It Enacted by the Legislature of the State of Florida:
36
37     Section 1.  Paragraph (k) of subsection (2) of section
38626.221, Florida Statutes, is amended to read:
39     626.221  Examination requirement; exemptions.--
40     (2)  However, no such examination shall be necessary in any
41of the following cases:
42     (k)  An applicant for license as an independent or company
43employee adjuster who has the designation of Accredited Claims
44Adjuster (ACA) from a regionally accredited postsecondary
45institution in this state, Professional Claims Adjuster (PCA)
46from the Professional Career Institute, Professional Property
47Insurance Adjuster (PPIA) from the HurriClaim Training Academy,
48Certified Professional Claims Adjuster (CPCA) from ALL LINES
49Training, or Certified Claims Adjuster (CCA) from the
50Association of Property and Casualty Claims Professionals whose
51curriculum has been approved by the department and whose
52curriculum includes comprehensive analysis of basic property and
53casualty lines of insurance and testing at least equal to that
54of standard department testing for the all-lines adjuster
55license. The department shall adopt rules establishing standards
56for the approval of curriculum.
57     Section 2.  Subsection (2) of section 626.7851, Florida
58Statutes, is amended to read:
59     626.7851  Requirement as to knowledge, experience, or
60instruction.--No applicant for a license as a life agent, except
61for a chartered life underwriter (CLU), shall be qualified or
62licensed unless within the 4 years immediately preceding the
63date the application for a license is filed with the department
64he or she has:
65     (2)  Successfully completed a correspondence course in
66insurance, 3 hours of which shall be on the subject matter of
67ethics, satisfactory to the department and regularly offered by
68accredited institutions of higher learning in this state or by
69independent programs of study, approved by the department.
70Courses must include instruction on the subject matter of
71unauthorized entities engaging in the business of insurance, to
72include the Florida Nonprofit Multiple-Employer Welfare
73Arrangement Act and the Employee Retirement Income Security Act,
7429 U.S.C. ss. 1001 et seq., as it relates to the provision of
75life insurance by employers to their employees and the
76regulation thereof;
77     Section 3.  Subsection (2) of section 626.8311, Florida
78Statutes, is amended to read:
79     626.8311  Requirement as to knowledge, experience, or
80instruction.--No applicant for a license as a health agent,
81except for a chartered life underwriter (CLU), shall be
82qualified or licensed unless within the 4 years immediately
83preceding the date the application for license is filed with the
84department he or she has:
85     (2)  Successfully completed a correspondence course in
86insurance, 3 hours of which shall be on the subject matter of
87ethics, satisfactory to the department and regularly offered by
88accredited institutions of higher learning in this state or by
89independent programs of study, approved by the department.
90Courses must include instruction on the subject matter of
91unauthorized entities engaging in the business of insurance, to
92include the Florida Nonprofit Multiple-Employer Welfare
93Arrangement Act and the Employee Retirement Income Security Act,
9429 U.S.C. ss. 1001 et seq., as it relates to the provision of
95health insurance by employers to their employees and the
96regulation thereof;
97     Section 4.  Effective January 1, 2008, subsection (1) of
98section 626.747, Florida Statutes, is amended to read:
99     626.747  Branch agencies.--
100     (1)(a)  Each branch place of business established by an
101agent or agency, firm, corporation, or association shall be in
102the active full-time charge of a licensed general lines agent or
103life or health agent who is appointed to represent one or more
104insurers. Any agent or agency, firm, corporation, or association
105which has established one or more branch places of business
106shall be required to have at least one licensed general lines
107agent who is appointed to represent one or more insurers at each
108location of the agency including its headquarters location.
109     (b)  Notwithstanding paragraph (a), the licensed agent in
110charge of an insurance agency may also be the agent in charge of
111additional branch office locations of the agency if insurance
112activities requiring licensure as an insurance agent do not
113occur at any location when the agent is not physically present
114and unlicensed employees at the location do not engage in any
115insurance activities requiring licensure as an insurance agent
116or customer service representative.
117     Section 5.  Subsection (2) of section 626.865, Florida
118Statutes, is amended to read:
119     626.865  Public adjuster's qualifications, bond.--
120     (2)  At the time of application for license as a public
121adjuster, the applicant shall file with the department a bond
122executed and issued by a surety insurer authorized to transact
123such business in this state, in the amount of $50,000,
124conditioned for the faithful performance of his or her duties as
125a public adjuster under the license for which the applicant has
126applied, and thereafter maintain the bond unimpaired throughout
127the existence of the license and for at least 1 year after
128termination of the license for. The bond shall be in favor of
129the department and shall specifically authorize recovery by the
130department of the damages sustained in case the licensee is
131guilty of fraud or unfair practices in connection with his or
132her business as public adjuster. The aggregate liability of the
133surety for all such damages shall in no event exceed the amount
134of the bond.  Such bond shall not be terminated unless at least
13530 days' written notice is given to the licensee and filed with
136the department.
137     Section 6.  Paragraph (c) of subsection (4) of section
138626.869, Florida Statutes, is amended to read:
139     626.869  License, adjusters.--
140     (4)
141     (c)  The department shall adopt rules necessary to
142implement and administer the continuing education requirements
143of this subsection. For good cause shown, the department may
144grant an extension of time during which the requirements imposed
145by this section may be completed, but such extension of time may
146not exceed 1 year.
147     Section 7.  Subsection (1) of section 626.8698, Florida
148Statutes, is amended to read:
149     626.8698  Disciplinary guidelines for public
150adjusters.--The department may deny, suspend, or revoke the
151license of a public adjuster, and administer a fine not to
152exceed $5,000 per act, for any of the following:
153     (1)  Violating any provision of this chapter or a rule or
154order of the department office or commission;
155     Section 8.  Paragraphs (a) and (c) of section 626.921,
156Florida Statutes, are amended to read:
157     626.921  Florida Surplus Lines Service Office.--
158     (5)(a)  The association shall submit to the office a plan
159of operation, and any amendments thereto, to provide operating
160procedures for the administration of the service office. The
161plan of operation and any amendments thereto shall become
162effective upon approval by order of the office. The association
163shall submit to the department an agents' manual, and any
164amendments thereto, which shall provide administrative
165procedures that surplus lines insurance agents must follow with
166respect to their duties to the service office. The manual shall
167be prepared in cooperation with the department, and any changes,
168updates, or amendments shall be submitted to the department
169before distribution. The manual shall be approved by order of
170the department.
171     (c)  All surplus lines agents licensed in this state must
172comply with the plan of operation and the agent's manual.
173     Section 9.  Section 626.9531, Florida Statutes, is amended
174to read:
175     626.9531  Identification of insurers, agents, and insurance
176contracts.--
177     (1)  Advertising materials and other communications
178developed by insurers, or other risk bearing entities authorized
179under this code and approved by the office to do business in
180this state, regarding insurance products shall clearly indicate
181that the communication relates to insurance products. When
182soliciting or selling insurance products, agents shall clearly
183indicate to prospective insureds that they are acting as
184insurance agents with regard to insurance products and
185identified insurers, or other risk bearing entities authorized
186under this code and approved by the office to do business in
187this state.
188     (2)  There shall be no liability on the part of, and no
189cause of action of any nature shall arise against, any licensed
190and appointed insurance agent for the insolvency of any risk
191bearing entity when such entity has been duly authorized or
192approved by the office to do business in this state. However if
193the licensed and appointed agent was a controlling producer, as
194defined in s. 626.7491(2), of the risk bearing entity within 2
195years preceding the insolvency, the agent is subject to penalty
196as provided in s. 626.7491(8).
197     (3)  For the purposes of this section, the term "risk
198bearing entity" means a reciprocal insurer as defined in s.
199629.021, a commercial self-insurance fund as defined in s.
200624.462, a group self-insurance fund as defined in s. 624.4621,
201a local government self-insurance fund as defined in s.
202624.4622, a self-insured public utility as defined in s.
203624.46225, or an independent educational institution self-
204insurance fund as defined in s. 624.4623. For the purposes of
205this section, the term "risk bearing entity" does not include an
206authorized insurer as defined in s. 624.09.
207     Section 10.  Section 626.9611, Florida Statutes, is amended
208to read:
209     626.9611  Rules.--
210     (1)  The department or commission may, in accordance with
211chapter 120, adopt reasonable rules as are necessary or proper
212to identify specific methods of competition or acts or practices
213which are prohibited by s. 626.9541 or s. 626.9551, but the
214rules shall not enlarge upon or extend the provisions of ss.
215626.9541 and 626.9551.
216     (2)  The department and the commission shall, in accordance
217with chapter 120, adopt rules to protect members of the United
218States Armed Forces from dishonest or predatory insurance sales
219practices by insurers and insurance agents. The rules shall
220identify specific false, misleading, deceptive, or unfair
221methods of competition, acts, or practices which are prohibited
222by s. 626.9541 or s. 626.9551. The rules shall be based upon
223model rules or model laws adopted by the National Association of
224Insurance Commissioners which identify certain insurance
225practices involving the solicitation or sale of insurance and
226annuities to members of the United States Armed Forces which are
227false, misleading, deceptive, or unfair.
228     Section 11.  For the 2007-2008 fiscal year, the sum of
229$132,000 in nonrecurring funds is appropriated from the
230Insurance Regulatory Trust Fund to the Department of Financial
231Services for computer system changes necessary to implement the
232provisions of s. 626.747, Florida Statutes.
233     Section 12.  Except as otherwise expressly provided in this
234act, this act shall take effect July 1, 2007.


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