CS/HB 565

1	A bill to be entitled
2	An act relating to insurance; amending s. 626.221, F.S.;
3	expanding the list of applicants eligible for exemption
4	from certain examination requirements; amending s.
5	626.2815, F.S.; revising certain continuing education
6	applicability requirements; prohibiting certain entities
7	from imposing certain continuing education requirements;
8	providing exceptions and limitations; providing an
9	exception to certain examination monitoring requirements;
10	providing exception requirements; revising duties of a
11	continuing education advisory board; amending s. 626.311,
12	F.S.; authorizing agents qualifying as unaffiliated
13	insurance consultants to transact insurance business
14	within the scope of the agent's license; providing a
15	definition; providing requirements for qualifying or
16	continuing to qualify as an unaffiliated insurance
17	consultant; specifying prohibited activities for
18	unaffiliated insurance consultants; amending s. 626.381,
19	F.S.; authorizing appointing entities to impose certain
20	training program requirements; providing a limitation;
21	limiting appointment authority of appointing entities to
22	persons meeting continuing education requirements;
23	prohibiting appointments contingent upon certain
24	continuing education course attendance; providing an
25	effective date.
26
27	Be It Enacted by the Legislature of the State of Florida:
28
29	Section 1.  Paragraph (j) of subsection (2) of section
30	626.221, Florida Statutes, is amended to read:
31	626.221  Examination requirement; exemptions.--
32	(2)  However, no such examination shall be necessary in any
33	of the following cases:
34	(j)  An applicant for license as a customer representative
35	who has earned the designation of Accredited Advisor in
36	Insurance (AAI) from the Insurance Institute of America, the
37	designation of Certified Insurance Counselor (CIC) from the
38	Society of Certified Insurance Service Counselors, the
39	designation of Accredited Customer Service Representative (ACSR)
40	from the Independent Insurance Agents of America, the
41	designation of Certified Professional Service Representative
42	(CPSR) from the National Foundation for Certified Professional
43	Service Representatives, the designation of Certified Insurance
44	Service Representative (CISR) from the Society of Certified
45	Insurance Service Representatives. Also, an applicant for
46	license as a customer representative who has earned an Associate
47	of Arts degree, Associate of Science degree, or Associate of
48	Applied Science degree in insurance from an accredited college
49	or university with at least 9 academic hours of property and
50	casualty insurance curriculum or has earned the designation of
51	Certified Customer Service Representative (CCSR) from the
52	Florida Association of Insurance Agents, or the designation of
53	Registered Customer Service Representative (RCSR) from a
54	regionally accredited postsecondary institution in this state,
55	or the designation of Professional Customer Service
56	Representative (PCSR) from the Professional Career Institute,
57	whose curriculum has been approved by the department and whose
58	curriculum includes comprehensive analysis of basic property and
59	casualty lines of insurance and testing at least equal to that
60	of standard department testing for the customer representative
61	license. The department shall adopt rules establishing standards
62	for the approval of curriculum.
63	Section 2.  Subsection (2), paragraph (f) of subsection
64	(3), paragraph (j) of subsection (4), and paragraph (a) of
65	subsection (6) of section 626.2815, Florida Statutes, are
66	amended to read:
67	626.2815  Continuing education required; application;
68	exceptions; requirements; penalties.--
69	(2)  Except as otherwise provided in this section, the
70	provisions of this section apply to persons licensed to engage
71	in the sale of insurance in this state for all lines of
72	insurance for which an examination is required for licensing and
73	to any insurer, employer, or appointing entity, including those
74	created or existing pursuant to s. 627.351. The provisions of
75	this section shall not apply to any person holding a license for
76	the sale of any line of insurance for which an examination is
77	not required by the laws of this state, nor shall the provisions
78	of this section apply to any limited license as the department
79	may exempt by rule.
80	(3)
81	(f)  Compliance with continuing education requirements is a
82	condition precedent to the issuance, continuation,
83	reinstatement, or renewal of any appointment subject to this
84	section.
85	1.  An appointing entity, except those that appoint
86	individuals who are employees or exclusive independent
87	contractors of the appointing entity, may not require, directly
88	or indirectly, as a condition of such appointment or the
89	continuation of such appointment, the taking of an approved
90	course or program by any appointee or potential appointee that
91	is not of the appointee's choosing.
92	2.  Any entity created or existing pursuant to s. 627.351
93	may require employees to take training of any type relevant to
94	their employment but may not require appointees who are not also
95	employees to take any approved course or program unless the
96	course or program deals solely with the appointing entity's
97	internal procedures or products or subjects substantially unique
98	to the appointing entity.
99	(4)  The following courses may be completed in order to
100	meet the continuing education course requirements:
101	(j)  Any course, including courses relating to agency
102	management or errors and omissions, developed or sponsored by
103	any authorized insurer or recognized agents' association or
104	insurance trade association or any independent study program of
105	instruction, subject to approval by the department, qualifies
106	for the equivalency of the number of classroom hours assigned
107	thereto by the department. However, unless otherwise provided in
108	this section, continuing education hours may not be credited
109	toward meeting the requirements of this section unless the
110	course is provided by classroom instruction or results in a
111	monitored examination. A monitored examination is not required
112	for:
113	1.  An independent study program of instruction that is
114	presented through interactive, online technology that the
115	department determines has sufficient internal testing to
116	validate the student's full comprehension of the materials
117	presented; or
118	2.  An independent study program of instruction presented
119	by correspondence for insurance agents and adjusters that
120	imposes a final closed book examination that meets the
121	requirements of the department's rule for self-study courses.
122	The examination may be taken without a proctor provided the
123	student presents to the department a sworn affidavit certifying
124	that the student did not consult any written materials or
125	receive outside assistance of any kind or from any person,
126	directly or indirectly, while taking the examination. If the
127	student is an employee of an agency or corporate entity, the
128	student's supervisor or a manager or owner of the agency or
129	corporate entity must also sign the sworn affidavit. If the
130	student is self-employed, a sole proprietor, or a partner, or if
131	the examination is administered online, the sworn affidavit must
132	also be signed by a disinterested third party. The sworn
133	affidavit must be received by the approved provider prior to
134	reporting continuing education credits to the department.
135	(6)(a)  There is created an 11-member continuing education
136	advisory board to be appointed by the Chief Financial Officer.
137	Appointments shall be for terms of 4 years. The purpose of the
138	board is to advise the department in determining standards by
139	which courses may be evaluated and categorized as basic,
140	intermediate, or advanced and to advise the department on issues
141	related to appointments based upon appointees meeting continuing
142	education requirements. The board shall submit recommendations
143	to the department of changes needed in such criteria not less
144	frequently than every 2 years. The department shall require all
145	approved course providers to submit courses for approval to the
146	department using the criteria. All materials, brochures, and
147	advertisements related to the approved courses must specify the
148	level assigned to the course.
149	Section 3.  Subsection (7) is added to section 626.311,
150	Florida Statutes, to read:
151	626.311  Scope of license.--
152	(7)  Subject to the limitations of paragraph (c) and
153	notwithstanding any other provisions of this chapter, an agent
154	who qualifies as an unaffiliated insurance consultant under
155	paragraphs (a) and (b) shall be authorized to transact insurance
156	within the scope of his or her agent's license.
157	(a)  For purposes of this subsection, the term
158	"unaffiliated insurance consultant" means a person who is not
159	affiliated with any insurer and chooses to practice as an
160	independent insurance consultant providing objective advice to
161	the buyers of insurance and who:
162	1.  Is licensed as an agent with respect to the type of
163	insurance for which he or she transacts the business of
164	insurance.
165	2.  Is not appointed by an insurer or other authorized
166	appointing authority.
167	3.  Does not sell or service insurance on behalf of any
168	insurer, or sell or service insurance on behalf of any insurance
169	agent or insurance agency, in connection with the sale or
170	service on behalf of an insurer or by the insurance agent or
171	insurance agency.
172	4.  Does not receive any commission or any other form of
173	direct or indirect compensation from any insurer for the sale or
174	servicing of insurance on behalf of such insurer, or receive any
175	commission or any other form of direct or indirect compensation
176	from any insurance agent or insurance agency, in connection with
177	the sale or servicing of insurance on behalf of an insurer or by
178	the insurance agent or insurance agency.
179	5.  Has provided the department with evidence that he or
180	she:
181	a.  Has been licensed as an agent for a minimum of 2 years
182	with respect to the type of insurance for which he or she will
183	transact;
184	b.  With respect to a general lines agent, holds a
185	Chartered Property Casualty Underwriter (CPCU), Associate in
186	Risk Management (ARM), Accredited Advisor in Insurance (AAI), or
187	Certified Insurance Counselor (CIC) designation;
188	c.  With respect to a life or health agent, holds a
189	Chartered Life Underwriter (CLU) or Certified Employee Benefit
190	Specialist (CEBS) designation;
191	d.  Has earned a bachelor's or graduate degree in risk
192	management or insurance from an accredited college or
193	university;
194	e.  Has taught a course in risk management or insurance as
195	a professor at an accredited college or university;
196	f.  Is a member of The Florida Bar; or
197	g.  Meets any other requirements the department may deem
198	proper to enable the department to determine the character,
199	experience, ability, and other qualifications of the person to
200	hold himself or herself out to the public as an unaffiliated
201	insurance consultant.
202	(b)1.  A person may not initially qualify as an
203	unaffiliated insurance consultant:
204	a.  Except upon written request for such qualification made
205	in a form acceptable to the department under the oath of, and
206	signed by, the person, submitted to and filed with the
207	department, certifying that the person meets the definition of
208	an unaffiliated insurance consultant under paragraph (a).
209	b.  Except upon payment in advance by such person of all
210	applicable fees. For the purposes of this sub-subparagraph, the
211	applicable fee shall be twice the amount of the fee that would
212	apply to an insurer for an agent's original appointment. If the
213	applicant has more than one agent's license, a separate fee
214	shall be paid for each license for which the person seeks to
215	qualify as an unaffiliated insurance consultant.
216	2.  As a condition to continued qualification as an
217	unaffiliated insurance consultant, the person shall:
218	a.  On a biennial basis, submit a request for the
219	continuation of such qualification in a form acceptable to the
220	department under the oath of, and signed by, the person,
221	submitted to and filed with the department, certifying that the
222	person meets the definition of an unaffiliated insurance
223	consultant under paragraph (a).
224	b.  Pay all applicable fees. For the purposes of this sub-
225	subparagraph, the applicable fee shall be twice the amount of
226	the fee that would apply to an insurer for the continuation of
227	an agent's original appointment. If the unaffiliated insurance
228	consultant has more than one license, a separate fee shall be
229	paid for each license for which the person seeks to continue to
230	qualify as an unaffiliated insurance consultant.
231	(c)  An unaffiliated insurance consultant may not:
232	1.  Hold himself or herself out as acting as the agent for
233	an insurer;
234	2.  Act as a countersigning agent for an insurer; or
235	3.  Hold himself or herself out as replacing the need for
236	an appointed agent in the placement or sale of insurance.
237	Section 4.  Subsections (6) and (7) of section 626.381,
238	Florida Statutes, are renumbered as subsections (8) and (9),
239	respectively, and new subsections (6) and (7) are added to that
240	section to read:
241	626.381  Renewal, continuation, reinstatement, or
242	termination of appointment.--
243	(6)  An appointing entity may require any appointee to
244	attend training programs exclusively on the internal procedures
245	of the appointing entity or exclusively on products
246	substantially unique to the appointing entity in order for the
247	appointee to receive a new appointment or maintain an existing
248	appointment. However, an appointing entity may not require,
249	directly or indirectly, any appointee to attend any training
250	programs that are wholly or partially approved for general
251	continuing education credit as described in s. 626.2815.
252	(7)  Each appointing entity may appoint only those persons
253	who have met the continuing education requirements of the
254	license necessary for such appointment as described in s.
255	626.2815. However, an appointing entity may not make or allow,
256	directly or indirectly, any appointment of any appointee or
257	potential appointee to be contingent, in whole or in part, upon
258	any appointee's attendance at any course that is approved, in
259	whole or in part, for continuing education credit pursuant to s.
260	626.2815.
261	Section 5.  This act shall take effect June 1, 2008.

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