| 1 | Representative Patterson offered the following: |
| 2 |
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| 3 | Amendment (with title amendment) |
| 4 | Between lines 935 and 936, insert: |
| 5 | Section 6. Subsection (3) of section 626.753, Florida |
| 6 | Statutes, is amended to read: |
| 7 | 626.753 Sharing commissions; penalty.-- |
| 8 | (3)(a) A general lines agent may share commissions derived |
| 9 | from the sale of crop hail or multiple-peril crop insurance with |
| 10 | a production credit association organized under 12 U.S.C. ss. |
| 11 | 2071-2077 12 U.S.C.A. ss. 2071-2077 or a federal land bank |
| 12 | association organized under 12 U.S.C. ss. 2091-2098 U.S.C.A. ss. |
| 13 | 2091-2098 if the association has specifically approved the |
| 14 | insurance activity by its employees. The amount of commission to |
| 15 | be shared shall be determined by the general lines agent and the |
| 16 | company paying the commission. |
| 17 | (b) This subsection does not allow such shared commissions |
| 18 | to be used, directly or indirectly, for the purpose of providing |
| 19 | any patronage dividend or other payment, discount, or credit to |
| 20 | a member of a production credit association or federal land bank |
| 21 | association if the dividend, payment, discount, or credit is |
| 22 | directly or indirectly calculated on the basis of the premium |
| 23 | charged to that member for crop hail or multiple-peril crop |
| 24 | insurance. |
| 25 | (c) Any patronage dividend or other payment, discount, or |
| 26 | credit provided to a member of a production credit association |
| 27 | or federal land bank association, which dividend, payment, |
| 28 | discount, or credit is directly or indirectly calculated on the |
| 29 | basis of the premium charged to that member for crop hail or |
| 30 | multiple-peril crop insurance, is an unlawful rebate that |
| 31 | violates ss. 626.572 and 626.9541(1)(h). |
| 32 | (d) An agent violates this section if he or she knowingly |
| 33 | engages in commission sharing with a production credit |
| 34 | association or federal land bank association that provides |
| 35 | patronage dividends or other payments, discounts, or credits |
| 36 | which are unlawful rebates under paragraph (c). |
| 37 | Section 7. Paragraph (h) of subsection (1) of section |
| 38 | 626.9541, Florida Statutes, is amended to read: |
| 39 | 626.9541 Unfair methods of competition and unfair or |
| 40 | deceptive acts or practices defined.-- |
| 41 | (1) UNFAIR METHODS OF COMPETITION AND UNFAIR OR DECEPTIVE |
| 42 | ACTS.--The following are defined as unfair methods of |
| 43 | competition and unfair or deceptive acts or practices: |
| 44 | (h) Unlawful rebates.-- |
| 45 | 1. Except as otherwise expressly provided by law, or in an |
| 46 | applicable filing with the office, knowingly: |
| 47 | a. Permitting, or offering to make, or making, any |
| 48 | contract or agreement as to such contract other than as plainly |
| 49 | expressed in the insurance contract issued thereon; |
| 50 | b. Paying, allowing, or giving, or offering to pay, allow, |
| 51 | or give, directly or indirectly, as inducement to such insurance |
| 52 | contract, any unlawful rebate of premiums payable on the |
| 53 | contract, any special favor or advantage in the dividends or |
| 54 | other benefits thereon, or any valuable consideration or |
| 55 | inducement whatever not specified in the contract; |
| 56 | c. Giving, selling, or purchasing, or offering to give, |
| 57 | sell, or purchase, as inducement to such insurance contract or |
| 58 | in connection therewith, any stocks, bonds, or other securities |
| 59 | of any insurance company or other corporation, association, or |
| 60 | partnership, or any dividends or profits accrued thereon, or |
| 61 | anything of value whatsoever not specified in the insurance |
| 62 | contract. |
| 63 | 2. Nothing in paragraph (g) or subparagraph 1. of this |
| 64 | paragraph shall be construed as including within the definition |
| 65 | of discrimination or unlawful rebates: |
| 66 | a. In the case of any contract of life insurance or life |
| 67 | annuity, paying bonuses to all policyholders or otherwise |
| 68 | abating their premiums in whole or in part out of surplus |
| 69 | accumulated from nonparticipating insurance; provided that any |
| 70 | such bonuses or abatement of premiums is fair and equitable to |
| 71 | all policyholders and for the best interests of the company and |
| 72 | its policyholders. |
| 73 | b. In the case of life insurance policies issued on the |
| 74 | industrial debit plan, making allowance to policyholders who |
| 75 | have continuously for a specified period made premium payments |
| 76 | directly to an office of the insurer in an amount which fairly |
| 77 | represents the saving in collection expenses. |
| 78 | c. Readjustment of the rate of premium for a group |
| 79 | insurance policy based on the loss or expense thereunder, at the |
| 80 | end of the first or any subsequent policy year of insurance |
| 81 | thereunder, which may be made retroactive only for such policy |
| 82 | year. |
| 83 | d. Issuance of life insurance policies or annuity |
| 84 | contracts at rates less than the usual rates of premiums for |
| 85 | such policies or contracts, as group insurance or employee |
| 86 | insurance as defined in this code. |
| 87 | e. Issuing life or disability insurance policies on a |
| 88 | salary savings, bank draft, preauthorized check, payroll |
| 89 | deduction, or other similar plan at a reduced rate reasonably |
| 90 | related to the savings made by the use of such plan. |
| 91 | 3.a. No title insurer, or any member, employee, attorney, |
| 92 | agent, or agency thereof, shall pay, allow, or give, or offer to |
| 93 | pay, allow, or give, directly or indirectly, as inducement to |
| 94 | title insurance, or after such insurance has been effected, any |
| 95 | rebate or abatement of the premium or any other charge or fee, |
| 96 | or provide any special favor or advantage, or any monetary |
| 97 | consideration or inducement whatever. |
| 98 | b. Nothing in this subparagraph shall be construed as |
| 99 | prohibiting the payment of fees to attorneys at law duly |
| 100 | licensed to practice law in the courts of this state, for |
| 101 | professional services, or as prohibiting the payment of earned |
| 102 | portions of the premium to duly appointed agents or agencies who |
| 103 | actually perform services for the title insurer. Nothing in this |
| 104 | subparagraph shall be construed as prohibiting a rebate or |
| 105 | abatement of an attorney's fee charged for professional |
| 106 | services, or that portion of the premium that is not required to |
| 107 | be retained by the insurer pursuant to s. 627.782(1), or any |
| 108 | other agent charge or fee to the person responsible for paying |
| 109 | the premium, charge, or fee. |
| 110 | c. No insured named in a policy, or any other person |
| 111 | directly or indirectly connected with the transaction involving |
| 112 | the issuance of such policy, including, but not limited to, any |
| 113 | mortgage broker, real estate broker, builder, or attorney, any |
| 114 | employee, agent, agency, or representative thereof, or any other |
| 115 | person whatsoever, shall knowingly receive or accept, directly |
| 116 | or indirectly, any rebate or abatement of any portion of the |
| 117 | title insurance premium or of any other charge or fee or any |
| 118 | monetary consideration or inducement whatsoever, except as set |
| 119 | forth in sub-subparagraph b.; provided, in no event shall any |
| 120 | portion of the attorney's fee, any portion of the premium that |
| 121 | is not required to be retained by the insurer pursuant to s. |
| 122 | 627.782(1), any agent charge or fee, or any other monetary |
| 123 | consideration or inducement be paid directly or indirectly for |
| 124 | the referral of title insurance business. |
| 125 | 4. Providing a patronage dividend or other payment, |
| 126 | discount, or credit to a member of a production credit |
| 127 | association organized under 12 U.S.C. ss. 2071-2077 or a federal |
| 128 | land bank association organized under 12 U.S.C. ss. 2091-2098 is |
| 129 | an unlawful rebate if the dividend or other payment, discount, |
| 130 | or credit is directly or indirectly calculated on the basis of |
| 131 | the premium charged to that member for crop hail or multiple- |
| 132 | peril crop insurance. |
| 133 |
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| 134 | ----------------------------------------------------- |
| 135 | T I T L E A M E N D M E N T |
| 136 | Between lines 49 and 50, insert: |
| 137 | 626.753, F.S.; prohibiting certain uses of commissions derived |
| 138 | from the sale of crop hail or multiple-peril crop insurance |
| 139 | which are shared between certain agents and certain production |
| 140 | credit associations or federal land bank associations; providing |
| 141 | penalties; providing that patronage dividends and other payments |
| 142 | to members of production credit associations or federal land |
| 143 | bank associations are unlawful rebates under certain |
| 144 | circumstances; providing penalties for an agent who shares |
| 145 | commissions with a production credit association or federal land |
| 146 | bank association under certain circumstances; amending s. |
| 147 | 626.9541, F.S.; specifying that certain patronage dividends and |
| 148 | other payments are unfair methods of competition and unfair or |
| 149 | deceptive acts; providing penalties; amending s. |