| 1 | A bill to be entitled |
| 2 | An act relating to insurance representatives; amending s. |
| 3 | 626.221, F.S.; expanding the list of applicants eligible |
| 4 | for exemption from certain examination requirements; |
| 5 | amending s. 626.2815, F.S.; expanding application of |
| 6 | certain continuing education requirements; providing |
| 7 | limited exceptions to compliance with continuing education |
| 8 | requirements as a condition precedent to certain |
| 9 | appointments; providing an exception to certain |
| 10 | examination monitoring requirements; providing exception |
| 11 | requirements; amending s. 626.311, F.S.; authorizing |
| 12 | agents qualifying as unaffiliated insurance consultants to |
| 13 | transact insurance business within the scope of the |
| 14 | agent's license; providing a definition; specifying |
| 15 | prohibited activities for unaffiliated insurance |
| 16 | consultants; amending s. 626.381, F.S.; authorizing |
| 17 | appointing entities to require appointees to attend |
| 18 | certain training and education programs for certain |
| 19 | purposes; providing an exception; limiting an appointing |
| 20 | entity's appointment authority; prohibiting appointments |
| 21 | to be contingent upon an appointee's attendance at certain |
| 22 | courses; amending s. 627.901, F.S.; authorizing an agent |
| 23 | to impose a service charge for processing an insured's |
| 24 | premium installment payment to an insurance company or |
| 25 | premium finance company; providing a limitation; providing |
| 26 | effective dates. |
| 27 |
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| 28 | Be It Enacted by the Legislature of the State of Florida: |
| 29 |
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| 30 | Section 1. Effective January 1, 2009, paragraph (j) of |
| 31 | subsection (2) of section 626.221, Florida Statutes, is amended |
| 32 | to read: |
| 33 | 626.221 Examination requirement; exemptions.-- |
| 34 | (2) However, no such examination shall be necessary in any |
| 35 | of the following cases: |
| 36 | (j) An applicant for license as a customer representative |
| 37 | who has earned the designation of Accredited Advisor in |
| 38 | Insurance (AAI) from the Insurance Institute of America, the |
| 39 | designation of Certified Insurance Counselor (CIC) from the |
| 40 | Society of Certified Insurance Service Counselors, the |
| 41 | designation of Accredited Customer Service Representative (ACSR) |
| 42 | from the Independent Insurance Agents of America, the |
| 43 | designation of Certified Professional Service Representative |
| 44 | (CPSR) from the National Foundation for Certified Professional |
| 45 | Service Representatives, the designation of Certified Insurance |
| 46 | Service Representative (CISR) from the Society of Certified |
| 47 | Insurance Service Representatives. Also, an applicant for |
| 48 | license as a customer representative who has earned an |
| 49 | associate's degree or bachelor's degree from an accredited |
| 50 | college or university with at least 9 academic hours of property |
| 51 | and casualty insurance curriculum, or the equivalent, or has |
| 52 | earned the designation of Certified Customer Service |
| 53 | Representative (CCSR) from the Florida Association of Insurance |
| 54 | Agents, or the designation of Registered Customer Service |
| 55 | Representative (RCSR) from a regionally accredited postsecondary |
| 56 | institution in this state, or the designation of Professional |
| 57 | Customer Service Representative (PCSR) from the Professional |
| 58 | Career Institute, whose curriculum has been approved by the |
| 59 | department and whose curriculum includes comprehensive analysis |
| 60 | of basic property and casualty lines of insurance and testing at |
| 61 | least equal to that of standard department testing for the |
| 62 | customer representative license. The department shall adopt |
| 63 | rules establishing standards for the approval of curriculum. |
| 64 | Section 2. Subsection (2), paragraph (f) of subsection |
| 65 | (3), and paragraph (j) of subsection (4) of section 626.2815, |
| 66 | Florida Statutes, are 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 each insurer, employer, or appointing entity, including, but |
| 74 | not limited to, those created or existing pursuant to s. |
| 75 | 627.351. The provisions of this section shall not apply to any |
| 76 | person holding a license for the sale of any line of insurance |
| 77 | for which an examination is not required by the laws of this |
| 78 | state, nor shall the provisions of this section apply to any |
| 79 | limited license as the department may exempt by rule. |
| 80 | (3) |
| 81 | (f)1. Except as provided in subparagraph 2., compliance |
| 82 | with continuing education requirements is a condition precedent |
| 83 | to the issuance, continuation, reinstatement, or renewal of any |
| 84 | appointment subject to this section. |
| 85 | 2.a. An appointing entity, except one that appoints |
| 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 | b. 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 |
| 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 with subjects substantially |
| 98 | unique 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 | on paper or in printed material that imposes a final closed book |
| 120 | examination that meets the requirements of the department's rule |
| 121 | for self-study courses. The examination may be taken without a |
| 122 | proctor provided the student presents to the provider a sworn |
| 123 | affidavit certifying that the student did not consult any |
| 124 | written materials or receive outside assistance of any kind or |
| 125 | from any person, directly or indirectly, while taking the |
| 126 | examination. If the student is an employee of an agency or |
| 127 | corporate entity, the student's supervisor or a manager or owner |
| 128 | of the agency or corporate entity must also sign the sworn |
| 129 | affidavit. If the student is self-employed, a sole proprietor, |
| 130 | or a partner, or if the examination is administered online, the |
| 131 | sworn affidavit must also be signed by a disinterested third |
| 132 | party. The sworn affidavit must be received by the approved |
| 133 | provider prior to reporting continuing education credits to the |
| 134 | department. |
| 135 | Section 3. Effective January 1, 2009, subsection (7) is |
| 136 | added to section 626.311, Florida Statutes, to read: |
| 137 | 626.311 Scope of license.-- |
| 138 | (7) Subject to the limitations of paragraph (b) and |
| 139 | notwithstanding any other provisions of this chapter, an agent |
| 140 | who qualifies as an unaffiliated insurance consultant under |
| 141 | paragraph (a) shall be authorized to transact insurance within |
| 142 | the scope of his or her agent's license. |
| 143 | (a) For purposes of this subsection, the term |
| 144 | "unaffiliated insurance consultant" means a person who is not |
| 145 | affiliated with any insurer and chooses to practice as an |
| 146 | independent insurance consultant providing objective advice to |
| 147 | the buyers of insurance and who: |
| 148 | 1. Is licensed as an agent with respect to the type of |
| 149 | insurance for which he or she transacts the business of |
| 150 | insurance. |
| 151 | 2. Is not appointed or registered by an insurer or other |
| 152 | authorized appointing entity. |
| 153 | 3. Does not sell or service insurance on behalf of any |
| 154 | insurer, or sell or service insurance on behalf of any insurance |
| 155 | agent or insurance agency, in connection with the sale or |
| 156 | service on behalf of an insurer or by the insurance agent or |
| 157 | insurance agency. |
| 158 | 4. Does not receive any commission or any other form of |
| 159 | direct or indirect compensation from any insurer for the sale or |
| 160 | servicing of insurance on behalf of such insurer, or receive any |
| 161 | commission or any other form of direct or indirect compensation |
| 162 | from any insurance agent or insurance agency, in connection with |
| 163 | the sale or servicing of insurance on behalf of an insurer or by |
| 164 | the insurance agent or insurance agency. |
| 165 | 5. Is appointed by himself or herself with the department |
| 166 | and has paid the applicable fees pursuant to s. 624.501. |
| 167 | (b) An unaffiliated insurance consultant may not: |
| 168 | 1. Hold himself or herself out as acting as the agent for |
| 169 | an insurer; |
| 170 | 2. Act as a countersigning agent for an insurer; or |
| 171 | 3. Hold himself or herself out as replacing the need for |
| 172 | an appointed agent in the placement or sale of insurance. |
| 173 | Section 4. Subsections (6) and (7) of section 626.381, |
| 174 | Florida Statutes, are renumbered as subsections (8) and (9), |
| 175 | respectively, and new subsections (6) and (7) are added to that |
| 176 | section to read: |
| 177 | 626.381 Renewal, continuation, reinstatement, or |
| 178 | termination of appointment.-- |
| 179 | (6) An appointing entity may require an appointee to |
| 180 | attend training and education programs of the appointing entity |
| 181 | in order for the appointee to receive a new appointment or |
| 182 | maintain an existing appointment. However, an appointing entity |
| 183 | may not require, directly or indirectly, any appointee to attend |
| 184 | any training programs that are wholly or partially approved for |
| 185 | general continuing education credit as provided in s. 626.2815. |
| 186 | (7) Each appointing entity may appoint only those persons |
| 187 | who have met the continuing education requirements of the |
| 188 | license necessary for such appointment as provided in s. |
| 189 | 626.2815. However, an appointing entity may not make or allow, |
| 190 | directly or indirectly, the appointment of any appointee or |
| 191 | potential appointee to be contingent, in whole or in part, on |
| 192 | any appointee's attendance at any course that is approved, in |
| 193 | whole or in part, for continuing education credit pursuant to s. |
| 194 | 626.2815. |
| 195 | Section 5. Subsection (1) of section 627.901, Florida |
| 196 | Statutes, is amended to read: |
| 197 | 627.901 Premium financing by an insurance agent or |
| 198 | agency.-- |
| 199 | (1) A general lines agent may make reasonable service |
| 200 | charges for financing insurance premiums on policies issued or |
| 201 | business produced by such an agent or agency, s. 626.9541 |
| 202 | notwithstanding. The service charge shall not exceed $3 per |
| 203 | installment. The maximum service charge shall not exceed $36 per |
| 204 | year. In lieu of such service charges, an insurance agent or |
| 205 | agency, at the sole discretion of such agent or agency, may |
| 206 | charge a rate of interest not to exceed 18 percent simple |
| 207 | interest per year on: |
| 208 | (a) The unpaid balance; or |
| 209 | (b) The average unpaid balance as billed over the term of |
| 210 | the policy and subject to endorsement changes. The interest |
| 211 | authorized by this paragraph may be billed in equal |
| 212 | installments. |
| 213 |
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| 214 | The agent may also impose a service charge for processing, as a |
| 215 | convenience and accommodation to the insured, a premium |
| 216 | installment payment to an insurance company or premium finance |
| 217 | company which the insured could have made directly. The agent |
| 218 | may not collect more than one service charge on any one payment. |
| 219 | Section 6. Except as otherwise expressly provided in this |
| 220 | act, this act shall take effect upon becoming a law. |