HB 853

1	A bill to be entitled
2	An act relating to title insurance; amending s. 20.121,
3	F.S.; creating the Division of Title Insurance in the
4	Department of Financial Services; creating part I of ch.
5	637, F.S.; providing for administration of title insurance
6	and general provisions; providing a short title; providing
7	legislative findings, purposes, and intent; creating the
8	Division of Title Insurance within the Department of
9	Financial Services; providing powers and duties; providing
10	for appointment of a division director; establishing the
11	Bureau of Title Insurance Premium Rates and Forms and the
12	Bureau of Title Insurance Licensing and Education within
13	the division; providing definitions; preempting to the
14	state the regulation of title insurance, title insurers,
15	and title insurance agencies; providing for nonapplication
16	of certain chapters; duplicating in ch. 637, F.S., certain
17	provisions of chs. 624, 625, 626, and 628, F.S., relating
18	to insurance and making such provisions applicable to
19	title insurance, title insurers, title insurance agents,
20	and title insurance agencies; creating s. 637.10335, F.S.;
21	providing for civil remedies against title insurers;
22	providing procedures, requirements, and limitations;
23	providing for award of damages, court costs, and attorney
24	fees; prohibiting punitive damages under certain
25	circumstances; providing construction prohibitions;
26	preserving certain remedies and causes of action; creating
27	s. 637.10435, F.S.; providing a Policyholders Bill of
28	Rights; specifying principles; providing a construction
29	prohibition; creating s. 637.10445, F.S.; providing
30	procedures, requirements, and limitations for documents
31	claimed as trade secrets; creating part II of ch. 637,
32	F.S.; providing for licensing and administration of title
33	insurers; duplicating in ch. 637, F.S., and making
34	applicable to title insurers certain provisions of ch.
35	624, F.S.; transferring to ch. 637, F.S., certain
36	provisions of chs. 625 and 627, F.S., relating to title
37	insurance; creating s. 637.20035, F.S.; providing for
38	structure of title insurers; creating s. 637.20635, F.S.;
39	prohibiting title insurers, title insurance agencies, and
40	title insurance agents from rebating portions of premiums;
41	providing exceptions; specifying rebate prohibitions;
42	creating s. 637.2091, F.S.; specifying that title
43	insurance business in exclusive; creating part III of ch.
44	637, F.S.; providing for licensure and administration of
45	title insurance agents and agencies; duplicating in ch.
46	637, F.S., and making applicable to title insurance agents
47	and agencies certain provisions of ch. 626, F.S.;
48	transferring to ch. 637, F.S., certain provisions of ch.
49	626, F.S., relating to title insurance agents and
50	agencies; creating s. 637.30125, F.S.; providing
51	requirements for agents in charge; providing for
52	authority, duties, and responsibilities of agents in
53	charge; transferring regulation, administration, and
54	enforcement of title insurers from the Office of Insurance
55	Regulation and the Financial Services Commission to the
56	Department of Financial Services and the Division of Title
57	Insurance; deleting references to the office and
58	commission to conform; amending ss. 624.5105 and 624.5107,
59	F.S.; including references to applicable sections of ch.
60	637, F.S., under the community contribution tax credit
61	program and the child care tax credit program; specifying
62	rules of the Financial Services Commission and the Office
63	of Insurance Regulation as rules of the department;
64	transferring certain powers, duties, functions, records,
65	personnel, property, and unexpended balances of
66	appropriations, allocations, and other funds relating to
67	title insurance to the department; preserving the validity
68	of certain judicial and administrative actions relating to
69	title insurance; providing for transfer of certain orders
70	relating to title insurance to the department; requiring
71	the Division of Statutory Revision to assist substantive
72	legislative committees in developing conforming
73	legislation; creating s. 689.263, F.S.; prohibiting title
74	insurance agents or title insurance agencies from
75	disbursing certain funds under certain circumstances;
76	providing requirements for a statement of settlement
77	costs; creating s. 717.1121, F.S.; providing construction
78	of certain payments from escrow related to real estate
79	transactions; amending s. 877.101, F.S.; providing an
80	additional prohibition against transacting escrow business
81	by unauthorized persons; revising cross-references for
82	purposes of nonapplication to licensed title insurance
83	agents; amending ss. 624.5015, 626.241, and 626.331, F.S.;
84	deleting provisions relating to title insures; amending
85	ss. 197.502, 624.501, 624.604, 624.605, 625.031, 626.207,
86	655.005, 701.041, and 721.05, F.S.; conforming a cross-
87	reference; repealing s. 624.4031, F.S., relating to church
88	benefit plans and church benefits boards; repealing s.
89	624.608, F.S., relating to the definition of "title
90	insurance"; repealing s. 626.841, F.S., relating to
91	definitions of "title insurance agent" and "title
92	insurance agency"; repealing s. 626.8411, F.S., relating
93	to application of Florida Insurance Code provisions to
94	title insurance agents or agencies; repealing s. 626.9531,
95	F.S., relating to identification of insurers, agents, and
96	insurance contracts; repealing s. 627.7711, F.S., relating
97	to definitions; repealing s. 627.776, F.S., relating to
98	applicability or inapplicability of Florida Insurance Code
99	provisions to title insurers; providing an effective date.
100
101	Be It Enacted by the Legislature of the State of Florida:
102
103	Section 1.  Paragraph (o) is added to subsection (2) of
104	section 20.121, Florida Statutes, to read:
105	20.121  Department of Financial Services.-There is created
106	a Department of Financial Services.
107	(2)  DIVISIONS.-The Department of Financial Services shall
108	consist of the following divisions:
109	(o)  The Division of Title Insurance.
110	Section 2.  Part I of chapter 637, Florida Statutes,
111	consisting of sections 637.1001, 637.1002, 637.1003, 637.1004,
112	637.10045, 637.1005, 637.1006, 637.1007, 637.1008, 637.1009,
113	637.1011, 637.1012, 637.1013, 637.1014, 637.1015, 637.1016,
114	637.1017, 637.1018, 637.1019, 637.1021, 637.1022, 637.1023,
115	637.1024, 637.1025, 637.1026, 637.1027, 637.1028, 637.1029,
116	637.1031, 637.1032, 637.1033, 637.10335, 637.1034, 637.1035,
117	637.1036, 637.1037, 637.1038, 637.1039, 637.1041, 637.1042,
118	637.1043, 637.10435, 637.1044, 637.10445, 637.1045, 637.1046,
119	637.1047, 637.1048, and 637.1049, is created and entitled
120	"ADMINISTRATION AND GENERAL PROVISIONS."
121	Section 3.  Sections 637.1001, 637.1002, 637.1003,
122	637.1004, 637.10045, 637.1005, 637.1006, 637.1007, 637.1008,
123	637.1009, 637.1011, 637.1012, 637.1013, 637.1014, 637.1015,
124	637.1016, 637.1017, 637.1018, 637.1019, 637.1021, 637.1022,
125	637.1023, 637.1024, 637.1025, 637.1026, 637.1027, 637.1029,
126	637.1031, 637.1032, 637.1033, 637.10335, 637.1034, 637.1035,
127	637.1036, 637.1037, 637.1038, 637.1039, 637.1041, 637.1042,
128	637.1043, 637.10435, 637.1044, 637.10445, 637.1045, 637.1046,
129	637.1047, 637.1048, and 637.1049, are created to read:
130	637.1001  Short title.-This chapter may be cited as the
131	"Florida Title Insurance Act."
132	637.1002  Legislative findings; purpose; intent.-
133	(1)  The Legislature finds that a stable and efficient
134	title insurance delivery system is necessary to promote the
135	economic wellbeing of the citizens of this state. Title
136	insurance is essential to ensure homeowners and landowners of
137	the safety of real property transfers in the state. Lienholders
138	and investors require the security afforded their business
139	interests accorded by a financially stable and regulated title
140	insurance industry. A viable title insurance delivery system
141	requires comprehensive state oversight, including regulation of
142	title insurers, agents, and agencies. Accordingly, it is the
143	intent of the Legislature to establish unitary regulation of the
144	title insurance industry by the creation of a Division of Title
145	Insurance within the Department of Financial Services. The
146	division shall have comprehensive authority to regulate insurer
147	and agent solvency, education, licensing, and discipline and to
148	establish title insurance premium rates and forms.
149	(2)  The Legislature finds that title insurance is a unique
150	form of insurance unlike any casualty-based insurance.
151	Accordingly, a separate and distinct chapter of the Florida
152	Statutes is deemed appropriate.
153	(3)  The Legislature recognizes that the title insurance
154	industry is founded upon a unique structure that requires title
155	agents and agencies to determine the insurability of titles,
156	thereby placing the title insurance agent at the cornerstone of
157	the delivery system. As such, the solvency and viability of
158	title insurance agents is essential. Therefore, the Legislature
159	deems it to be in the public interest to establish title
160	insurance rates that are adequate and to also establish
161	parameters for rebating portions of the title insurance premium.
162	637.1003  Division of Title Insurance.-
163	(1)  The Division of Title Insurance is created within the
164	Department of Financial Services. The division shall exercise
165	all powers and duties with respect to title insurance
166	regulation, including those exercised by the Office of Insurance
167	Regulation and the Division of Insurance Agents and Agency
168	Services of the Department of Financial Services prior to July
169	1, 2010. The division director shall be appointed by the Chief
170	Financial Officer and shall have experience, education, and
171	expertise in the field of title insurance in this state. The
172	director may also be known as the Florida Title Insurance
173	Coordinator.
174	(2)  The Division of Title Insurance shall consist of:
175	(a)  The Bureau of Title Insurance Premium Rates and Forms.
176	(b)  The Bureau of Title Insurance Licensing and Education.
177	637.1004  Definitions.-For purposes of this chapter, the
178	term:
179	(1)  "Appointment" means the authority given by an insurer
180	or employer to a licensee to transact insurance or adjust claims
181	on behalf of an insurer or employer.
182	(2)  "Attorney" as used in this part means an individual
183	duly admitted to and a member in good standing of the Florida
184	Bar.
185	(3)  "Agent in charge" of a title insurance agency means an
186	attorney or a licensed and appointed title insurance agent who
187	is responsible for the overall operation and management of a
188	title insurance agency location and whose responsibilities
189	include supervising all individuals within that location. An
190	attorney or a title insurance agent may be designated as the
191	agent in charge for only one location of a single title
192	insurance agency. Each location of a title insurance agency
193	or insurer at which primary title services as defined in
194	subsection (18) are performed shall have a separate agent in
195	charge. An agency that has an attorney that is in charge of the
196	agency shall designate that attorney to be in charge of only one
197	location of a single title insurance agency.
198	(4)  "Authorized" means provided authority pursuant to
199	valid a certificate of authority issued by the department to
200	transact insurance in this state.
201	(5)  "Closing services" means services performed by a
202	licensed title insurer, title insurance agent or agency, or
203	attorney agent in the agent's or agency's capacity as such,
204	including, but not limited to, preparing documents necessary to
205	close the transaction, conducting the closing, or handling the
206	disbursing of funds related to the closing in a real estate
207	closing transaction in which a title insurance commitment or
208	policy is to be issued.
209	(6)  "Commercially domiciled insurer" means every foreign
210	or alien insurer that is authorized to do business in this state
211	and that, during its 3 preceding fiscal years taken together, or
212	during any lesser period of time if it has been licensed to
213	transact its business in this state only for the lesser period
214	of time, has written an average of 25 percent or more direct
215	premiums in this state than it has written in its state of
216	domicile during the same period, and the direct premiums written
217	constitute more than 55 percent of its total direct premiums
218	written everywhere in the United States during its 3 preceding
219	fiscal years taken together, or during any lesser period of time
220	if it has been authorized to transact its business in this state
221	only for the lesser period of time, as reported in its most
222	recent applicable annual or quarterly statements, shall be
223	deemed a "commercially domiciled insurer" within this state.
224	(7)  "Consent" means authorized written agreement to
225	supervision by the insurer.
226	(8)  "Department" means the Department of Financial
227	Services. The term does not mean the Financial Services
228	Commission or any office of the Financial Services Commission.
229	(9)  "Division" means the Division of Title Insurance of
230	the department.
231	(10)  "Domestic," "foreign," and "alien" mean:
232	(a)  A "domestic" insurer is one formed under the laws of
233	this state.
234	(b)  A "foreign" insurer is one formed under the laws of
235	any state, district, territory, or commonwealth of the United
236	States other than this state.
237	(c)  An "alien" insurer is an insurer other than a domestic
238	or foreign insurer.
239	(11)  "Domicile," except as provided in s. 631.011, means:
240	(a)  As to Canadian insurers, Canada and the province under
241	the laws of which the insurer was formed.
242	(b)  As to other alien insurers authorized to transact
243	insurance in one or more states, the state designated by the
244	insurer in writing filed with the department at the time of
245	admission to this state or within 6 months after the effective
246	date of this chapter, whichever date is the later, and may be
247	any of the following states:
248	1.  That in which the insurer was first authorized to
249	transact insurance if the insurer is still so authorized.
250	2.  That in which is located the insurer's principal place
251	of business in the United States.
252	3.  That in which is held the larger deposit of trusteed
253	assets of the insurer for the protection of its policyholders
254	and creditors in the United States.
255	If the insurer makes no such designation, its domicile shall be
256	deemed to be that state in which is located its principal place
257	of business in the United States.
258	(c)  As to alien insurers not authorized to transact
259	insurance in one or more states, the country under the laws of
260	which the insurer was formed.
261	(d)  As to all other insurers, the state under the laws of
262	which the insurer was formed.
263	(12)  "Exceeded its powers" means the following conditions:
264	(a)  The insurer has refused to permit examination by the
265	department of its books, papers, accounts, records, or business
266	practices;
267	(b)  An insurer organized in this state has unlawfully
268	removed from this state books, papers, accounts, or records
269	necessary for an examination of the insurer by the department;
270	(c)  The insurer has failed to promptly comply with the
271	applicable financial reporting statutes and division requests
272	relating thereto;
273	(d)  The insurer has neglected or refused to observe an
274	order of the department to correct a deficiency in its capital
275	or surplus; or
276	(e)  The insurer has unlawfully or in violation of a
277	department order:
278	1.  Totally reinsured its entire outstanding business; or
279	2.  Merged or consolidated substantially its entire
280	property or business with another insurer.
281	(13)  "Insurer" means and includes every person as defined
282	in subsection (16) and title insurer as defined in subsection
283	(23) as limited to any domestic or commercially domiciled
284	insurer who is doing business as an insurer, or has transacted
285	insurance in this state, and against whom claims arising from
286	that transaction may exist now or in the future.
287	(14)  "License" means a document issued by the department
288	or office authorizing a person to be appointed to transact
289	insurance or adjust claims for the kind, line, or class of
290	insurance identified in the document.
291	(15)(a)  "Managing general agent" means any person managing
292	all or part of the insurance business of an insurer, including
293	the management of a separate division, department, or
294	underwriting office, and acting as an agent for that insurer,
295	whether known as a managing general agent, manager, or other
296	similar term, who, with or without authority, separately or
297	together with affiliates, produces, directly or indirectly, or
298	underwrites an amount of gross direct written premium equal to
299	or more than 5 percent of the policyholder surplus as reported
300	in the last annual statement of the insurer in any single
301	quarter or year and also does one or more of the following:
302	1.  Adjusts or pays claims.
303	2.  Negotiates reinsurance on behalf of the insurer.
304	(b)  The following persons shall not be considered managing
305	general agents:
306	1.  An employee of the insurer.
307	2.  A United States manager of the United States branch of
308	an alien insurer.
309	3.  An underwriting manager managing all the insurance
310	operations of the insurer pursuant to a contract who is
311	under the common control of the insurer subject to regulation
312	and whose compensation is not based on the volume of premiums
313	written.
314	4.  The attorney in fact authorized by and acting for the
315	subscribers of a reciprocal insurer under powers of attorney.
316	(16)  "Person" means an individual, insurer, company,
317	association, organization, Lloyds, society, reciprocal insurer
318	or interinsurance exchange, partnership, syndicate, business
319	trust, corporation, agent, general agent, broker, service
320	representative, adjuster, and every legal entity.
321	(17)  "Premium" means the charge, as specified by rule of
322	the department, that is made by a title insurer for a title
323	insurance policy, including the charge for performance of
324	primary title services by a title insurer or title insurance
325	agent or agency, and incurring the risks incident to such
326	policy, under the several classifications of title insurance
327	contracts and forms, and upon which charge a premium tax is paid
328	under s. 624.509. As used in this part or in any other law, with
329	respect to title insurance, the word "premium" does not include
330	a commission.
331	(18)  "Primary title services" means determining
332	insurability in accordance with sound underwriting practices
333	based upon evaluation of a reasonable title search or a search
334	of the records of a Uniform Commercial Code filing office and
335	such other information as may be necessary, determination and
336	clearance of underwriting objections and requirements to
337	eliminate risk, preparation and issuance of a title insurance
338	commitment setting forth the requirements to insure, and
339	preparation and issuance of the policy. Such services do not
340	include closing services or title searches, for which a separate
341	charge or separate charges may be made.
342	(19)  When used in context signifying a jurisdiction other
343	than the State of Florida, "state" means any state, district,
344	territory, or commonwealth of the United States.
345	(20)  "Title insurance" means:
346	(a)  Insurance of owners of real property or others having
347	an interest in real property or a contractual interest derived
348	from real property, or liens or encumbrances on real property,
349	against loss by encumbrance, or defective titles, or invalidity,
350	or adverse claim to title; or
351	(b)  Insurance of owners and secured parties of the
352	existence, attachment, perfection, and priority of security
353	interests in personal property under the Uniform Commercial
354	Code.
355	(21)  "Title insurance agent" means a person appointed in
356	writing by a title insurer to issue and countersign commitments
357	or policies of title insurance on the title insurer's behalf.
358	(22)  "Title insurance agency" means a business at which an
359	individual, firm, partnership, corporation, association, or
360	other entity, other than an employee of the individual, firm,
361	partnership, corporation, association, or other entity, and
362	under which a title insurance agent or other employee,
363	determines insurability in accordance with underwriting rules
364	and standards prescribed by the title insurer represented by the
365	title insurance agency and issues and countersigns commitments,
366	endorsements, or policies of title insurance on behalf of the
367	appointing title insurer. The term does not include a title
368	insurer.
369	(23)  "Title insurer" means any domestic company organized
370	and authorized to do business under the provisions of this
371	chapter, for the purpose of issuing title insurance, or any
372	insurer organized under the laws of another state, the District
373	of Columbia, or a foreign country and holding a certificate of
374	authority to transact business in this state, for the purpose of
375	issuing title insurance.
376	(24)  "Title search" means the compiling of title
377	information from official or public records.
378	(25)  "Transact" means, with respect to insurance and in
379	addition to other applicable provisions of this chapter:
380	(a)  Solicitation or inducement.
381	(b)  Preliminary negotiations.
382	(c)  Effectuation of a contract of insurance.
383	(d)  Transaction of matters subsequent to effectuation of a
384	contract of insurance and arising out of it.
385	(26)  "Unsound condition" means that the department has
386	determined that one or more of the following conditions exist
387	with respect to an insurer:
388	(a)  The insurer's required surplus, capital, or capital
389	stock is impaired to an extent prohibited by law;
390	(b)  The insurer continues to write new business when it
391	has not maintained the required surplus or capital stock;
392	(c)  The insurer attempts to dissolve or liquidate without
393	first having made provisions, satisfactory to the department,
394	for liabilities arising from insurance policies issued by the
395	insurer; or
396	(d)  The insurer meets one or more of the grounds in s.
397	631.051 for the appointment of the department as receiver.
398	637.10045  Preemption to state.-The regulation of title
399	insurance, title insurers, and title insurance agencies is
400	preempted to the state.
401	637.1005  General applicability of other chapters.-
402	(1)  The provisions of chapters 624, 626, and 627 do not
403	apply to title insurers or their agents unless specifically
404	incorporated by reference and made applicable to this chapter by
405	a provision of this chapter.
406	(2)  The provisions of chapters 625, 628, and 631 apply to
407	title insurance and for purposes of applying such provisions to
408	title insurance, the term "department" shall be interpreted to
409	mean office and the term "Director of the Division of Insurance
410	Regulation" shall be interpreted to mean the "Florida Title
411	Insurance Coordinator," "Director of the Division of Title
412	Insurance," or "division director."
413	637.1006  General powers; duties.-
414	(1)  The powers and duties of the Chief Financial Officer
415	and the department specified in this chapter apply only with
416	respect to title insurance agents and title insurance agencies.
417	(2)  The department shall enforce the provisions of this
418	chapter and shall execute the duties imposed upon the department
419	by this chapter, as provided by law.
420	(3)  The department shall have the powers and authority
421	expressly conferred upon it by, or reasonably implied from, the
422	provisions of this chapter.
423	(4)  The department may conduct such investigations of
424	insurance matters, in addition to investigations expressly
425	authorized, as it may deem proper to determine whether any
426	person has violated any provision of this chapter within its
427	respective regulatory jurisdiction or to secure information
428	useful in the lawful administration of any such provision. The
429	cost of such investigations shall be borne by the state.
430	(5)  The department may each collect, propose, publish, and
431	disseminate information relating to the subject matter of any
432	duties imposed upon it by law.
433	(6)  The department shall each have such additional powers
434	and duties as may be provided by other laws of this state.
435	(7)  The department may employ actuaries who shall be at-
436	will employees and who shall serve at the pleasure of the Chief
437	Financial Officer, in the case of department employees.
438	Actuaries employed pursuant to this subsection shall be members
439	of the Society of Actuaries or the Casualty Actuarial Society
440	and shall be exempt from the Career Service System established
441	under chapter 110. The salaries of the actuaries employed
442	pursuant to this paragraph shall be set in accordance with s.
443	216.251(2)(a)5. and shall be set at levels which are
444	commensurate with salary levels paid to actuaries by the
445	insurance industry.
446	(8)  The department shall, within existing resources,
447	develop and implement an outreach program for the purpose of
448	encouraging the entry of additional insurers into the Florida
449	market.
450	(9)  Upon receiving service of legal process issued in any
451	civil action or proceeding in this state against any regulated
452	person required to appoint the Chief Financial Officer as its
453	attorney to receive service of all legal process, the Chief
454	Financial Officer, as attorney, may, in lieu of sending the
455	process by registered or certified mail, send the process by any
456	other verifiable means to the person last designated by the
457	regulated person to receive the process.
458	(10)  This section does not limit the authority of the
459	department and the Division of Insurance Fraud, as specified in
460	s. 637.1046.
461	(11)  The division may enforce violations of the Real
462	Estate Settlement Procedures Act, 12 U.S.C. ss. 2601 et seq.
463	637.1007  Rules.-
464	(1)  The department may adopt rules pursuant to ss.
465	120.536(1) and 120.54 to implement provisions of this chapter
466	and interpret the specific powers and duties provided in this
467	chapter, which rules may:
468	(a)  Define the license and appointment requirements for
469	title insurance agents and agencies.
470	(b)  Establish penalty guidelines for enforcing the
471	requirements of this chapter.
472	(c)  Describe the fiduciary responsibilities of title
473	insurance agents and agencies, including, but not limited to,
474	duties related to escrow accounts.
475	(d)  Identify the responsibilities, duties, and
476	designations of the agent in charge of the title insurance
477	agency or the attorney in charge of an attorney-owned title
478	insurance agency.
479	(e)  Enable the collection of information from agents and
480	agencies relating to title insurance business.
481	(f)  Set reasonable requirements for the timely recording
482	of documents and the delivery of final title policies.
483	(g)  Establish rules for the protection, calculation, and
484	timely remittance of premiums that are owed to title insurers.
485	(h)  Prohibit the markup of the cost of any third-party
486	services by the closing agent without adding value.
487	(2)  In addition to any other penalty provided, willful
488	violation of any such rule shall subject the violator to such
489	suspension or revocation of certificate of authority or license
490	as may be applicable under this chapter as for violation of the
491	provision as to which such rule relates.
492	637.1008  General penalty.-
493	(1)  Each willful violation of this chapter or rule of the
494	department as to which a greater penalty is not provided by
495	another provision of this chapter or rule of the department or
496	by other applicable laws of this state is a misdemeanor of the
497	second degree and is, in addition to any prescribed applicable
498	denial, suspension, or revocation of certificate of authority,
499	license, or permit, punishable as provided in s. 775.082 or s.
500	775.083. Each instance of such violation shall be considered a
501	separate offense.
502	(2)  Each willful violation of an emergency rule or order
503	of the department by a person who is not licensed, authorized,
504	or eligible to engage in business in accordance with this
505	chapter is a felony of the third degree, punishable as provided
506	in s. 775.082, s. 775.083, or s. 775.084. Each instance of such
507	violation is a separate offense. This subsection does not apply
508	to licensees or affiliated parties of licensees.
509	637.1009  Enforcement; cease and desist orders; removal of
510	certain persons; fines.-
511	(1)  DEFINITIONS.-For the purposes of this section, the
512	term:
513	(a)  "Affiliated party" means any person who directs or
514	participates in the conduct of the affairs of a licensee and who
515	is:
516	1.  A director, officer, employee, trustee, committee
517	member, or controlling stockholder of a licensee or a subsidiary
518	or service corporation of the licensee, other than a controlling
519	stockholder which is a holding company, or an agent of a
520	licensee or a subsidiary or service corporation of the licensee;
521	2.  A person who has filed or is required to file a
522	statement or any other information required to be filed under s.
523	628.461 or s. 628.4615;
524	3.  A stockholder, other than a stockholder that is a
525	holding company of the licensee, who participates in the conduct
526	of the affairs of the licensee; or
527	4.  An independent contractor who:
528	a.  Renders a written opinion required by the laws of this
529	state under her or his professional credentials on behalf of the
530	licensee, which opinion is reasonably relied on by the
531	department in the performance of its duties; or
532	b.  Affirmatively and knowingly conceals facts, through a
533	written misrepresentation to the department, with knowledge that
534	such misrepresentation:
535	(I)  Constitutes a violation of this chapter or a lawful
536	rule or order of the department; and
537	(II)  Directly and materially endangers the ability of the
538	licensee to meet its obligations to policyholders.
539
540	For the purposes of this subparagraph, any representation of
541	fact made by an independent contractor on behalf of a licensee,
542	affirmatively communicated as a representation of the licensee
543	to the independent contractor, shall not be considered a
544	misrepresentation by the independent contractor.
545	(b)  "Licensee" means a person issued a license or
546	certificate of authority or approval under this chapter or a
547	person registered under a provision of this chapter.
548	(2)  ENFORCEMENT GENERALLY.-
549	(a)  The powers granted by this section to the department
550	apply only with respect to licensees of the department and their
551	affiliated parties and to unlicensed persons subject to
552	regulatory jurisdiction of the department.
553	(b)  The department may institute such suits or other legal
554	proceedings as may be required to enforce any provision of this
555	chapter within the department's regulatory jurisdiction. If it
556	appears that any person has violated any provision of this
557	chapter for which criminal prosecution is provided, the
558	department shall provide the appropriate state attorney or other
559	prosecuting agency having jurisdiction with respect to such
560	prosecution with the relevant information in its possession.
561	(3)  CEASE AND DESIST ORDERS.-
562	(a)  The department may issue and serve a complaint stating
563	charges upon any licensee or upon any affiliated party, whenever
564	the department has reasonable cause to believe that the person
565	or individual named therein is engaging in or has engaged in
566	conduct that is:
567	1.  An act that demonstrates a lack of fitness or
568	trustworthiness to engage in the business of insurance, is
569	hazardous to the insurance buying public, or constitutes
570	business operations that are a detriment to policyholders,
571	stockholders, investors, creditors, or the public;
572	2.  A violation of any provision of this chapter;
573	3.  A violation of any rule of the department;
574	4.  A violation of any order of the department; or
575	5.  A breach of any written agreement with the department.
576	(b)  The complaint shall contain a statement of facts and
577	notice of opportunity for a hearing pursuant to ss. 120.569 and
578	120.57.
579	(c)  If no hearing is requested within the time allowed by
580	ss. 120.569 and 120.57, or if a hearing is held and the
581	department finds that any of the charges are proven, the
582	department may enter an order directing the licensee or the
583	affiliated party named in the complaint to cease and desist from
584	engaging in the conduct complained of and take corrective action
585	to remedy the effects of past improper conduct and assure future
586	compliance.
587	(d)  If the licensee or affiliated party named in the order
588	fails to respond to the complaint within the time allotted by
589	ss. 120.569 and 120.57, the failure constitutes a default and
590	justifies the entry of a cease and desist order.
591	(e)  A contested or default cease and desist order is
592	effective when reduced to writing and served upon the licensee
593	or affiliated party named therein. An uncontested cease and
594	desist order is effective as agreed.
595	(f)  Whenever the department finds that conduct described
596	in paragraph (a) is likely to cause insolvency, substantial
597	dissipation or misvaluation of assets or earnings of the
598	licensee, substantial inability to pay claims on a timely basis,
599	or substantial prejudice to prospective or existing insureds,
600	policyholders, subscribers, or the public, it may issue an
601	emergency cease and desist order requiring the licensee or any
602	affiliated party to immediately cease and desist from engaging
603	in the conduct complained of and to take corrective and remedial
604	action. The emergency order is effective immediately upon
605	service of a copy of the order upon the licensee or affiliated
606	party named therein and remains effective for 90 days. If the
607	department begins nonemergency cease and desist proceedings
608	under this subsection, the emergency order remains effective
609	until the conclusion of the proceedings under ss. 120.569 and
610	120.57.
611	(4)  REMOVAL OF AFFILIATED PARTIES.-
612	(a)  The department may issue and serve a complaint stating
613	charges upon any affiliated party and upon the licensee
614	involved, whenever the department has reason to believe that an
615	affiliated party is engaging in or has engaged in conduct that
616	constitutes:
617	1.  An act that demonstrates a lack of fitness or
618	trustworthiness to engage in the business of insurance through
619	engaging in illegal activity or mismanagement of business
620	activities;
621	2.  A willful violation of any law relating to the business
622	of insurance; however, if the violation constitutes a
623	misdemeanor, no complaint shall be served as provided in this
624	section until the affiliated party is notified in writing of the
625	matter of the violation and has been afforded a reasonable
626	period of time, as set forth in the notice, to correct the
627	violation and has failed to do so;
628	3.  A violation of any other law involving fraud or moral
629	turpitude that constitutes a felony;
630	4.  A willful violation of any rule of the department;
631	5.  A willful violation of any order of the department;
632	6.  A material misrepresentation of fact, made knowingly
633	and willfully or made with reckless disregard for the truth of
634	the matter; or
635	7.  An act of commission or omission or a practice which is
636	a breach of trust or a breach of fiduciary duty.
637	(b)  The complaint shall contain a statement of facts and
638	notice of opportunity for a hearing pursuant to ss. 120.569 and
639	120.57.
640	(c)  If no hearing is requested within the time allotted by
641	ss. 120.569 and 120.57, or if a hearing is held and the
642	department finds that any of the charges in the complaint are
643	proven true and that:
644	1.  The licensee has suffered or will likely suffer loss or
645	other damage;
646	2.  The interests of the policyholders, creditors, or
647	public are, or could be, seriously prejudiced by reason of the
648	violation or act or breach of fiduciary duty;
649	3.  The affiliated party has received financial gain by
650	reason of the violation, act, or breach of fiduciary duty; or
651	4.  The violation, act, or breach of fiduciary duty is one
652	involving personal dishonesty on the part of the affiliated
653	party or the conduct jeopardizes or could reasonably be
654	anticipated to jeopardize the financial soundness of the
655	licensee,
656
657	The department may enter an order removing the affiliated party
658	or restricting or prohibiting participation by the person in the
659	affairs of that particular licensee or of any other licensee.
660	(d)  If the affiliated party fails to respond to the
661	complaint within the time allotted by ss. 120.569 and 120.57,
662	the failure constitutes a default and justifies the entry of an
663	order of removal, suspension, or restriction.
664	(e)  A contested or default order of removal, restriction,
665	or prohibition is effective when reduced to writing and served
666	on the licensee and the affiliated party. An uncontested order
667	of removal, restriction, or prohibition is effective as agreed.
668	(f)1.  The chief executive officer, or the person holding
669	the equivalent office, of a licensee shall promptly notify the
670	department that issued the license if she or he has actual
671	knowledge that any affiliated party is charged with a felony in
672	a state or federal court.
673	2.  Whenever any affiliated party is charged with a felony
674	in a state or federal court or with the equivalent of a felony
675	in the courts of any foreign country with which the United
676	States maintains diplomatic relations, and the charge alleges
677	violation of any law involving fraud, theft, or moral turpitude,
678	the department may enter an emergency order suspending the
679	affiliated party or restricting or prohibiting participation by
680	the affiliated party in the affairs of the particular licensee
681	or of any other licensee upon service of the order upon the
682	licensee and the affiliated party charged. The order shall
683	contain notice of opportunity for a hearing pursuant to ss.
684	120.569 and 120.57, where the affiliated party may request a
685	postsuspension hearing to show that continued service to or
686	participation in the affairs of the licensee does not pose a
687	threat to the interests of the licensee's policyholders or
688	creditors and does not threaten to impair public confidence in
689	the licensee. In accordance with applicable rules, the
690	department shall notify the affiliated party whether the order
691	suspending or prohibiting the person from participation in the
692	affairs of a licensee will be rescinded or otherwise modified.
693	The emergency order remains in effect, unless otherwise modified
694	by the department, until the criminal charge is disposed of. The
695	acquittal of the person charged, or the final, unappealed
696	dismissal of all charges against the person, dissolves the
697	emergency order, but does not prohibit the department from
698	instituting proceedings under paragraph (a). If the person
699	charged is convicted or pleads guilty or nolo contendere,
700	whether or not an adjudication of guilt is entered by the court,
701	the emergency order shall become final.
702	(g)  Any affiliated party removed from office pursuant to
703	this section is not eligible for reelection or appointment to
704	the position or to any other official position in any licensee
705	in this state except upon the written consent of the department.
706	Any affiliated party who is removed, restricted, or prohibited
707	from participation in the affairs of a licensee pursuant to this
708	section may petition the department for modification or
709	termination of the removal, restriction, or prohibition.
710	(h)  Resignation or termination of an affiliated party does
711	not affect the department's jurisdiction to proceed under this
712	subsection.
713	(5)  ADMINISTRATIVE FINES; ENFORCEMENT.-
714	(a)  The department, in a proceeding initiated pursuant to
715	chapter 120, impose an administrative fine against any person
716	found in the proceeding to have violated any provision of this
717	chapter, a cease and desist order of the department, or any
718	written agreement with the department. A proceeding may not be
719	initiated and a fine may not accrue until after the person has
720	been notified in writing of the nature of the violation and has
721	been afforded a reasonable period of time, as set forth in the
722	notice, to correct the violation and has failed to do so.
723	(b)  A fine imposed under this subsection may not exceed
724	the amounts specified in s. 637.2021, per violation.
725	(c)  In addition to the imposition of an administrative
726	fine under this subsection, the department may also suspend or
727	revoke the license or certificate of authority of the licensee
728	fined under this subsection.
729	(d)  Any administrative fine levied by the department under
730	this subsection may be enforced by the department by appropriate
731	proceedings in the circuit court of the county in which the
732	person resides or in which the principal office of a licensee is
733	located, or, in the case of a foreign insurer or person not
734	residing in this state, in Leon County. In any administrative or
735	judicial proceeding arising under this section, a party may
736	elect to correct the violation asserted by the department, and,
737	upon doing so, any fine shall cease to accrue; however, the
738	election to correct the violation does not render any
739	administrative or judicial proceeding moot. All fines collected
740	under this section shall be paid to the Title Insurance
741	Regulatory Trust Fund.
742	(e)  In imposing any administrative penalty or remedy
743	provided for under this section, the department shall take into
744	account the appropriateness of the penalty with respect to the
745	size of the financial resources and the good faith of the person
746	charged, the gravity of the violation, the history of previous
747	violations, and other matters as justice may require.
748	(f)  The imposition of an administrative fine under this
749	subsection may be in addition to any other penalty or
750	administrative fine authorized under this chapter.
751	(6)  ADMINISTRATIVE PROCEDURES.-All administrative
752	proceedings under subsections (3), (4), and (5) shall be
753	conducted in accordance with chapter 120. Any service required
754	or authorized to be made by the department under this chapter
755	shall be made by certified mail, return receipt requested,
756	delivered to the addressee only; by personal delivery; or in
757	accordance with chapter 48. The service provided for herein
758	shall be effective from the date of delivery.
759	(7)  CRIMINAL ENFORCEMENT.-It is unlawful for any
760	affiliated party who is removed or prohibited from participation
761	in the affairs of a licensee pursuant to this section, or for
762	any licensee whose rights or privileges under such license have
763	been suspended or revoked pursuant to this chapter, to knowingly
764	act as an affiliated party as defined in this section or to
765	knowingly transact insurance until expressly authorized to do so
766	by the department. Such authorization by the department may not
767	be provided unless the affiliated party or the licensee has made
768	restitution, if applicable, to all parties damaged by the
769	actions of the affiliated party or the licensee which served as
770	the basis for the removal or prohibition of the affiliated party
771	or the suspension or revocation of the rights and privileges of
772	the licensee. Any person who violates the provisions of this
773	subsection commits a felony of the third degree, punishable as
774	provided in s. 775.082, s. 775.083 or s. 775.084.
775	637.1011  Immunity from civil liability for providing
776	department with information about condition of insurer.-A
777	person, other than a person filing a required report or other
778	required information, who provides the department with
779	information about the financial condition of an insurer is
780	immune from civil liability arising out of the provision of the
781	information unless the person acted with knowledge that the
782	information was false or with reckless disregard for the truth
783	or falsity of the information.
784	637.1012  Records; reproductions; destruction.-
785	(1)  Except as provided in this section, the department
786	shall each preserve in permanent form records of its
787	proceedings, hearings, investigations, and examinations and
788	shall file such records in its department.
789	(2)  The department may photograph, microphotograph, or
790	reproduce on film, or maintain in an electronic recordkeeping
791	system, all financial records, financial statements of domestic
792	insurers, reports of business transacted in this state by
793	foreign insurers and alien insurers, reports of examination of
794	domestic insurers, and such other records and documents on file
795	in the department as the department may in its discretion
796	select.
797	(3)  To facilitate the efficient use of floor space and
798	filing equipment in its offices, the department may destroy the
799	following records and documents pursuant to chapter 257:
800	(a)  General closed correspondence files over 3 years old.
801	(b)  Title insurance and similar license files, over 2
802	years old; except that the department shall preserve by
803	reproduction or otherwise a copy of the original records upon
804	the basis of which each such licensee qualified for her or his
805	initial license, except a competency examination, and of any
806	disciplinary proceeding affecting the licensee.
807	(c)  All title insurance agent and similar license files
808	and records, including original license qualification records
809	and records of disciplinary proceedings 5 years after a licensee
810	has ceased to be qualified for a license.
811	(d)  Insurer certificate of authority files over 2 years
812	old, except that the department shall preserve by reproduction
813	or otherwise a copy of the initial certificate of authority of
814	each insurer.
815	(e)  All documents and records which have been photographed
816	or otherwise reproduced as provided in subsection (2), if such
817	reproductions have been filed and an audit of the department has
818	been completed for the period embracing the dates of such
819	documents and records.
820	(f)  All other records, documents, and files not expressly
821	provided for in paragraphs (a)-(e).
822	637.1013  Reproductions and certified copies of records as
823	evidence.-
824	(1)  Photographs or microphotographs in the form of film or
825	prints, or other reproductions from an electronic recordkeeping
826	system, of documents and records made under s. 637.1012(2), or
827	made under former s. 624.311(3) before October 1, 1982, shall
828	have the same force and effect as the originals thereof and
829	shall be treated as originals for the purpose of their
830	admissibility in evidence. Duly certified or authenticated
831	reproductions of such photographs, microphotographs, or other
832	reproductions from an electronic recordkeeping system shall be
833	as admissible in evidence as the originals.
834	(2)  Upon the request of any person and payment of the
835	applicable fee, the department shall give a certified copy of
836	any record in its department which is then subject to public
837	inspection.
838	(3)  Copies of original records or documents in its
839	department certified by the department shall be received in
840	evidence in all courts as if they were originals.
841	637.1014  Publications.-
842	(1)  As early as reasonably possible, the department shall
843	annually have printed and made available a statistical report
844	which must include all of the following information on either a
845	calendar year or fiscal year basis:
846	(a)  The total amount of premiums written and earned for
847	title insurance.
848	(b)  The total amount of losses paid and losses incurred
849	for title insurance.
850	(c)  The ratio of premiums written to losses paid by title
851	insurance.
852	(d)  The ratio of premiums earned to losses incurred by
853	title insurance.
854	(e)  The market share of the 10 largest insurers or insurer
855	groups of title insurance and of each insurer or insurer group
856	that has a market share of at least 1 percent of a line of
857	insurance in this state.
858	(f)  The profitability of title insurance.
859	(g)  An analysis of the impact of the insurance industry on
860	the economy of the state.
861	(h)  A complaint ratio by line of insurance for the
862	insurers referred to in paragraph (e), based upon information
863	provided to the department by the department. The department
864	shall determine the most appropriate ratio or ratios for
865	quantifying complaints.
866	(i)  A summary of the findings of market examinations
867	performed by the department under s. 637.1018 during the
868	preceding year.
869	(j)  Such other information as the department deems
870	relevant.
871	(2)  The department may prepare and have printed and
872	published in pamphlet or book form, as needed, questions and
873	answers for the use of persons applying for an examination for
874	licensing as title insurance agents.
875	(3)  The department shall sell the publications mentioned
876	in subsections (1) and (2) to purchasers at a price fixed by the
877	department at not less than the cost of printing and binding
878	such publications, plus packaging and postage costs for mailing;
879	except that the department may deliver copies of such
880	publications free of cost to state agencies and officers;
881	insurance supervisory authorities of other states and
882	jurisdictions; institutions of higher learning located in
883	Florida; the Library of Congress; insurance officers of Naval,
884	Military, and Air Force bases located in this state; and to
885	persons serving as advisers to the department in preparation of
886	the publications.
887	(4)  The department may contract with outside vendors, in
888	accordance with chapter 287, to compile data in an electronic
889	data processing format that is compatible with the systems of
890	the department.
891	637.1015  Sale of publications; deposit of proceeds.-The
892	department shall deposit all moneys received from the sale of
893	publications under s. 637.1014 in the Title Insurance Regulatory
894	Trust Fund for the purpose of paying costs for the preparation,
895	printing, and delivery of the publications required in s.
896	637.1014(2), packaging and mailing costs, and banking,
897	accounting, and incidental expenses connected with the sale and
898	delivery of such publications. All moneys deposited into and all
899	funds transferred to the Title Insurance Regulatory Trust Fund
900	are appropriated for such uses and purposes.
901	637.1016  Department; annual report.-
902	(1)  As early as reasonably possible, the department shall
903	annually prepare a report to the Speaker and Minority Leader of
904	the House of Representatives, the President and Minority Leader
905	of the Senate, the chairs of the legislative committees with
906	jurisdiction over matters of insurance, and the Governor
907	showing, with respect to the preceding calendar year:
908	(a)  Names of the authorized insurers transacting insurance
909	in this state, with abstracts of their financial statements
910	including assets, liabilities, and net worth.
911	(b)  Names of insurers whose business was closed during the
912	year, the cause thereof, and amounts of assets and liabilities
913	as ascertainable.
914	(c)  Names of insurers against which delinquency or similar
915	proceedings were instituted, and a concise statement of the
916	circumstances and results of each such proceeding.
917	(d)  The receipts and estimated expenses of the department
918	for the year.
919	(e)  Such other pertinent information and matters as the
920	department deems to be in the public interest.
921	(f)  Annually after each regular session of the
922	Legislature, a compilation of the laws of this state relating to
923	insurance. Any such publication may be printed, revised, or
924	reprinted upon the basis of the original low bid.
925	(g)  An analysis and summary report of the state of the
926	insurance industry in this state evaluated as of the end of the
927	most recent calendar year.
928	(2)  The department shall maintain the following
929	information and make such information available upon request:
930	(a)  Calendar year profitability, including investment
931	income from loss reserves (Florida and countrywide).
932	(b)  Aggregate Florida loss reserves.
933	(c)  Premiums written (Florida and countrywide).
934	(d)  Premiums earned (Florida and countrywide).
935	(e)  Incurred losses (Florida and countrywide).
936	(f)  Paid losses (Florida and countrywide).
937	(g)  Allocated Florida loss adjustment expenses.
938	(h)  Variation of premiums charged by the industry as
939	compared to rates promulgated by the Insurance Services Office
940	(Florida and countrywide).
941	(i)  An analysis of policy size limits (Florida and
942	countrywide).
943	(j)  Trends; emerging trends as exemplified by the
944	percentage change in frequency and severity of both paid and
945	incurred claims, and pure premium (Florida and countrywide).
946	(3)  The department may contract with outside vendors, in
947	accordance with chapter 287, to compile data in an electronic
948	data processing format that is compatible with the systems of
949	the department.
950	637.1017  Examination of insurers.-
951	(1)(a)  The department shall examine the affairs,
952	transactions, accounts, records, and assets of each authorized
953	insurer as to its transactions affecting the insurer as often as
954	it deems advisable, except as provided in this section. The
955	examination may include examination of the affairs,
956	transactions, accounts, and records relating directly or
957	indirectly to the insurer and of the assets of the insurer's
958	managing general agents and controlling or controlled person, as
959	defined in s. 625.012. The examination shall be pursuant to a
960	written order of the department. Such order shall expire upon
961	receipt by the department of the written report of the
962	examination.
963	(b)  The department shall examine each insurer according to
964	accounting procedures designed to fulfill the requirements of
965	generally accepted insurance accounting principles and practices
966	and good internal control and in keeping with generally accepted
967	accounting forms, accounts, records, methods, and practices
968	relating to insurers. To facilitate uniformity in examinations,
969	the department may adopt, by rule, the Market Conduct Examiners
970	Handbook and the Financial Condition Examiners Handbook of the
971	National Association of Insurance Commissioners, 2002, and may
972	adopt subsequent amendments thereto, if the examination
973	methodology remains substantially consistent.
974	(2)(a)  Except as provided in paragraph (f), the department
975	may examine each insurer as often as may be warranted for the
976	protection of the policyholders and in the public interest, and
977	shall examine each domestic insurer not less frequently than
978	once every 5 years. The examination shall cover the preceding 5
979	fiscal years of the insurer and shall be commenced within 12
980	months after the end of the most recent fiscal year being
981	covered by the examination. The examination may cover any period
982	of the insurer's operations since the last previous examination.
983	The examination may include examination of events subsequent to
984	the end of the most recent fiscal year and the events of any
985	prior period that affect the present financial condition of the
986	insurer.
987	(b)  The department shall examine each insurer applying for
988	an initial certificate of authority to transact insurance in
989	this state before granting the initial certificate.
990	(c)  In lieu of making its own examination, the department
991	may accept a full report of the last recent examination of a
992	foreign insurer, certified to by the insurance supervisory
993	official of another state.
994	(d)  The examination by the department of an alien insurer
995	shall be limited to the alien insurer's insurance transactions
996	and affairs in the United States, except as otherwise required
997	by the department.
998	(e)  The department shall adopt rules providing that an
999	examination under this section may be conducted by independent
1000	certified public accountants, actuaries, investment specialists,
1001	information technology specialists, and reinsurance specialists
1002	meeting criteria specified by rule. The rules shall provide:
1003	1.  That the rates charged to the insurer being examined
1004	are consistent with rates charged by other firms in a similar
1005	profession and are comparable with the rates charged for
1006	comparable examinations.
1007	2.  That the firm selected by the department to perform the
1008	examination has no conflicts of interest that might affect its
1009	ability to independently perform its responsibilities on the
1010	examination.
1011	3.  That the insurer being examined must make payment for
1012	the examination pursuant to s. 637.1023(1) in accordance with
1013	the rates and terms established by the department and the firm
1014	performing the examination.
1015	(f)  An examination under this section must be conducted at
1016	least once every year with respect to a domestic insurer that
1017	has continuously held a certificate of authority for less than 3
1018	years. The examination must cover the preceding fiscal year or
1019	the period since the last examination of the insurer. The
1020	department may limit the scope of the examination.
1021	637.1018  Market conduct examinations.-
1022	(1)  As often as it deems necessary, the department shall
1023	examine each licensed rating organization, each advisory
1024	organization, each group, association, carrier, as defined in s.
1025	440.02, or other organization of insurers which engages in joint
1026	underwriting or joint reinsurance, and each authorized insurer
1027	transacting in this state any class of insurance to which the
1028	provisions of this chapter are applicable. The examination shall
1029	be for the purpose of ascertaining compliance by the person
1030	examined with the applicable provisions of this chapter.
1031	(2)  In lieu of any such examination, the department may
1032	accept the report of a similar examination made by the insurance
1033	supervisory official of another state.
1034	(3)  The examination may be conducted by an independent
1035	professional examiner under contract to the department, in which
1036	case payment shall be made directly to the contracted examiner
1037	by the insurer examined in accordance with the rates and terms
1038	agreed to by the department and the examiner.
1039	(4)  The reasonable cost of the examination shall be paid
1040	by the person examined, and such person shall be subject, as
1041	though an insurer, to the provisions of s. 637.1023.
1042	(5)  Such examinations shall also be subject to the
1043	applicable provisions of chapter 440 and ss. 637.1021, 637.1022,
1044	637.1024, and 637.1025.
1045	637.1019  Investigation of title insurance agents and
1046	others.-If the department has reason to believe that any title
1047	insurance agent has violated or is violating any provision of
1048	this chapter, or upon the written complaint signed by any
1049	interested person indicating that any such violation may exist:
1050	(1)  The department shall conduct such investigation as it
1051	deems necessary of the accounts, records, documents, and
1052	transactions pertaining to or affecting the insurance affairs of
1053	any title insurance agent, title insurance agency, customer
1054	representative, service representative, or other person subject
1055	to its jurisdiction.
1056	(2)  The department shall conduct such investigation as it
1057	deems necessary of the accounts, records, documents, and
1058	transactions pertaining to or affecting the insurance affairs of
1059	any:
1060	(a)  Administrator, service company, or other person
1061	subject to its jurisdiction.
1062	(b)  Person having a contract or power of attorney under
1063	which she or he enjoys in fact the exclusive or dominant right
1064	to manage or control an insurer.
1065	(c)  Person engaged in or proposing to be engaged in the
1066	promotion or formation of:
1067	1.  A domestic insurer;
1068	2.  An insurance holding corporation; or
1069	3.  A corporation to finance a domestic insurer or in the
1070	production of the domestic insurer's business.
1071	(3)  In the investigation by the department of the alleged
1072	misconduct, the licensee shall, whenever required by the
1073	department, cause his or her books and records to be open for
1074	inspection for the purpose of such inquiries.
1075	(4)  A complaint against any licensee may be informally
1076	alleged and need not be in any language necessary to charge a
1077	crime on an indictment or information.
1078	(5)  The expense for any hearings or investigations under
1079	this section, as well as the fees and mileage of witnesses, may
1080	be paid out of the appropriate fund.
1081	(6)  If the department, after investigation, has reason to
1082	believe that a licensee may have been found guilty of or pleaded
1083	guilty or nolo contendere to a felony or a crime related to the
1084	business of insurance in this or any other state or jurisdiction,
1085	the department or office may require the licensee to file with
1086	the department or office a complete set of his or her
1087	fingerprints, which shall be accompanied by the fingerprint
1088	processing fee set forth in s. 637.2031. The fingerprints shall
1089	be taken by an authorized law enforcement agency or other
1090	department-approved entity.
1091	637.1021  Conduct of examination or investigation; access
1092	to records; correction of accounts; appraisals.-
1093	(1)  The examination or investigation may be conducted by
1094	the accredited examiners or investigators of the department at
1095	the offices wherever located of the person being examined or
1096	investigated and at such other places as may be required for
1097	determination of matters under examination or investigation. In
1098	the case of alien insurers, the examination may be so conducted
1099	in the insurer's offices and places in the United States, except
1100	as otherwise required by the department.
1101	(2)  Every person being examined or investigated, and its
1102	officers, attorneys, employees, agents, and representatives,
1103	shall make freely available to the department or its examiners
1104	or investigators the accounts, records, documents, files,
1105	information, assets, and matters in their possession or control
1106	relating to the subject of the examination or investigation. An
1107	agent who provides other products or services or maintains
1108	customer information not related to insurance must maintain
1109	records relating to insurance products and transactions
1110	separately if necessary to give the department access to such
1111	records. If records relating to the insurance transactions are
1112	maintained by an agent on premises owned or operated by a third
1113	party, the agent and the third party must provide access to the
1114	records by the department.
1115	(3)  If the department finds any accounts or records to be
1116	inadequate, or inadequately kept or posted, it may employ
1117	experts to reconstruct, rewrite, post, or balance them at the
1118	expense of the person being examined if such person has failed
1119	to maintain, complete, or correct such records or accounting
1120	after the department has given her or him notice and a
1121	reasonable opportunity to do so.
1122	(4)  If the department deems it necessary to value any
1123	asset involved in such an examination of an insurer, it may make
1124	written request of the insurer to designate one or more
1125	competent appraisers acceptable to the department, who shall
1126	promptly make an appraisal of the asset and furnish a copy
1127	thereof to the department. If the insurer fails to designate
1128	such an appraiser or appraisers within 20 days after the request
1129	of the department, the department may designate the appraiser or
1130	appraisers. The reasonable expense of any such appraisal shall
1131	be a part of the expense of examination, to be borne by the
1132	insurer.
1133	(5)  Neither the department nor any examiner shall remove
1134	any record, account, document, file, or other property of the
1135	person being examined from the offices of such person except
1136	with the written consent of such person given in advance of such
1137	removal or pursuant to an order of court duly obtained.
1138	(6)  Any individual who willfully obstructs the department
1139	or the examiner in the examinations or investigations authorized
1140	by this part is guilty of a misdemeanor and upon conviction
1141	shall be punished as provided in s. 624.15.
1142	(7)  The department or its examiners or investigators may
1143	electronically scan accounts, records, documents, files, and
1144	information, relating to the subject of the examination or
1145	investigation, in the possession or control of the person being
1146	examined or investigated.
1147	637.1022  Examination and investigation reports.-
1148	(1)  The department or its examiner shall make a full and
1149	true written report of each examination. The examination report
1150	shall contain only information obtained from examination of the
1151	records, accounts, files, and documents of or relative to the
1152	insurer examined or from testimony of individuals under oath,
1153	together with relevant conclusions and recommendations of the
1154	examiner based thereon. The department shall furnish a copy of
1155	the examination report to the insurer examined not less than 30
1156	days prior to filing the examination report in its office. If
1157	such insurer so requests in writing within such 30-day period,
1158	the department shall grant a hearing with respect to the
1159	examination report and shall not so file the examination report
1160	until after the hearing and after such modifications have been
1161	made therein as the department deems proper.
1162	(2)  The examination report when so filed shall be
1163	admissible in evidence in any action or proceeding brought by
1164	the department against the person examined, or against its
1165	officers, employees, or agents. In all other proceedings, the
1166	admissibility of the examination report is governed by the
1167	evidence code. The department or its examiners may at any time
1168	testify and offer other proper evidence as to information
1169	secured or matters discovered during the course of an
1170	examination, whether or not a written report of the examination
1171	has been either made, furnished, or filed with the department.
1172	(3)  After the examination report has been filed pursuant
1173	to subsection (1), the department may publish the results of any
1174	such examination in one or more newspapers published in this
1175	state whenever it deems it to be in the public interest.
1176	(4)  After the examination report of an insurer has been
1177	filed pursuant to subsection (1), an affidavit shall be filed
1178	with the department, not more than 30 days after the report has
1179	been filed, on a form furnished by the department and signed by
1180	the officer of the company in charge of the insurer's business
1181	in this state, stating that she or he has read the report and
1182	that the recommendations made in the report will be considered
1183	within a reasonable time.
1184	637.1023  Examination expenses.-
1185	(1)  Each insurer so examined shall pay to the department
1186	the expenses of the examination at the rates adopted by the
1187	department. Such expenses shall include actual travel expenses,
1188	reasonable living expense allowance, compensation of the
1189	examiner or other person making the examination, and necessary
1190	attendant administrative costs of the department directly
1191	related to the examination. Such travel expense and living
1192	expense allowance shall be limited to those expenses necessarily
1193	incurred on account of the examination and shall be paid by the
1194	examined insurer together with compensation upon presentation by
1195	the department to such insurer of a detailed account of such
1196	charges and expenses after a detailed statement has been filed
1197	by the examiner and approved by the department.
1198	(2)  All moneys collected from insurers for examinations
1199	shall be deposited into the Title Insurance Regulatory Trust
1200	Fund, and the department may make deposits from time to time
1201	into such fund from moneys appropriated for the operation of the
1202	department.
1203	(3)  Notwithstanding the provisions of s. 112.061, the
1204	department may pay to the examiner or person making the
1205	examination out of such trust fund the actual travel expenses,
1206	reasonable living expense allowance, and compensation in
1207	accordance with the statement filed with the department by the
1208	examiner or other person, as provided in subsection (1) upon
1209	approval by the department.
1210	(4)  When not examining an insurer, the travel expenses,
1211	per diem, and compensation for the examiners and other persons
1212	employed to make examinations, if approved, shall be paid out of
1213	moneys budgeted for such purpose as regular employees,
1214	reimbursements for such travel expenses and per diem to be at
1215	rates no more than as provided in s. 112.061.
1216	(5)  The department may pay to regular insurance examiners,
1217	not residents of Leon County, Florida, per diem for periods not
1218	exceeding 30 days for each such examiner while at the Department
1219	of Financial Services in Tallahassee, Florida, for the purpose
1220	of auditing insurers' annual statements. Such expenses shall be
1221	paid out of moneys budgeted for such purpose, as for regular
1222	employees at rates provided in s. 112.061.
1223	(6)  The provisions of this section shall apply to rate
1224	analysts and rate examiners in the discharge of their duties
1225	under s. 637.1018.
1226	637.1024  Witnesses and evidence.-
1227	(1)  As to any examination, investigation, or hearing being
1228	conducted under this chapter, a person designated by the
1229	department:
1230	(a)  May administer oaths, examine and cross-examine
1231	witnesses, receive oral and documentary evidence.
1232	(b)  May subpoena witnesses, compel their attendance and
1233	testimony, and require by subpoena the production of books,
1234	papers, records, files, correspondence, documents, or other
1235	evidence which is relevant to the inquiry.
1236	(2)  If any person refuses to comply with any such subpoena
1237	or to testify as to any matter concerning which she or he may be
1238	lawfully interrogated, the Circuit Court of Leon County or of
1239	the county wherein such examination, investigation, or hearing
1240	is being conducted, or of the county wherein such person
1241	resides, may, on the application of the department, issue an
1242	order requiring such person to comply with the subpoena and to
1243	testify.
1244	(3)  Subpoenas shall be served, and proof of such service
1245	made, in the same manner as if issued by a circuit court.
1246	Witness fees, cost, and reasonable travel expenses, if claimed,
1247	shall be allowed the same as for testimony in a circuit court.
1248	637.1025  Testimony compelled; immunity from prosecution.-
1249	(1)  If any natural person asks to be excused from
1250	attending or testifying or from producing any books, papers,
1251	records, contracts, documents, or other evidence in connection
1252	with any examination, hearing, or investigation being conducted
1253	by the department or its examiner, on the ground that the
1254	testimony or evidence required of her or him may tend to
1255	incriminate the person or subject her or him to a penalty or
1256	forfeiture, and shall notwithstanding be directed to give such
1257	testimony or produce such evidence, the person must, if so
1258	directed by the department and the Department of Legal Affairs,
1259	nonetheless comply with such direction; but she or he shall not
1260	thereafter be prosecuted or subjected to any penalty or
1261	forfeiture for or on account of any transaction, matter, or
1262	thing concerning which she or he may have so testified or
1263	produced evidence; and no testimony so given or evidence
1264	produced shall be received against the person upon any criminal
1265	action, investigation, or proceeding. However, no such person so
1266	testifying shall be exempt from prosecution or punishment for
1267	any perjury committed by her or him in such testimony, and the
1268	testimony or evidence so given or produced shall be admissible
1269	against her or him upon any criminal action, investigation, or
1270	proceeding concerning such perjury. No license or permit
1271	conferred or to be conferred to such person shall be refused,
1272	suspended, or revoked based upon the use of such testimony.
1273	(2)  Any such individual may execute, acknowledge, and file
1274	with the department, as appropriate, a statement expressly
1275	waiving such immunity or privilege in respect to any
1276	transaction, matter, or thing specified in such statement; and
1277	thereupon the testimony of such individual or such evidence in
1278	relation to such transaction, matter, or thing may be received
1279	or produced before any judge or justice, court, tribunal, grand
1280	jury, or otherwise; and, if so received or produced, such
1281	individual shall not be entitled to any immunity or privileges
1282	on account of any testimony she or he may so give or evidence so
1283	produced.
1284	637.1026  Hearings.-The department may hold hearings for
1285	any purpose within the scope of this chapter deemed to be
1286	necessary.
1287	637.1027  Authority of Department of Law Enforcement to
1288	accept fingerprints of, and exchange criminal history records
1289	with respect to, certain persons.-
1290	(1)  The Department of Law Enforcement may accept
1291	fingerprints of organizers, incorporators, subscribers,
1292	officers, stockholders, directors, or any other persons
1293	involved, directly or indirectly, in the organization,
1294	operation, or management of:
1295	(a)  Any insurer or proposed insurer transacting or
1296	proposing to transact insurance in this state.
1297	(b)  Any other entity which is examined or investigated or
1298	which is eligible to be examined or investigated under the
1299	provisions of this chapter.
1300	(2)  The Department of Law Enforcement may accept
1301	fingerprints of individuals who apply for a license as a title
1302	insurance agent, service representative, or managing general
1303	agent or the fingerprints of the majority owner, sole
1304	proprietor, partners, officers, and directors of a corporation
1305	or other legal entity that applies for licensure with the
1306	department under the provisions of this chapter.
1307	(3)  The Department of Law Enforcement may, to the extent
1308	provided for by federal law, exchange state, multistate, and
1309	federal criminal history records with the department for the
1310	purpose of the issuance, denial, suspension, or revocation of a
1311	certificate of authority, certification, or license to operate
1312	in this state.
1313	(4)  The Department of Law Enforcement may accept
1314	fingerprints of any other person required by statute or rule to
1315	submit fingerprints to the department or any applicant or
1316	licensee regulated by the department who is required to
1317	demonstrate that he or she has not been convicted of or pled
1318	guilty or nolo contendere to a felony or a misdemeanor.
1319	(5)  The Department of Law Enforcement shall, upon receipt
1320	of fingerprints from the department, submit the fingerprints to
1321	the Federal Bureau of Investigation to check federal criminal
1322	history records.
1323	(6)  Statewide criminal records obtained through the
1324	Department of Law Enforcement, federal criminal records obtained
1325	through the Federal Bureau of Investigation, and local criminal
1326	records obtained through local law enforcement agencies shall be
1327	used by the department for the purpose of issuance, denial,
1328	suspension, or revocation of certificates of authority,
1329	certifications, or licenses issued to operate in this state.
1330	637.1029  Declaration of purpose.-The purpose of ss.
1331	637.1029-637.1049 is to regulate trade practices relating to the
1332	business of title insurance in accordance with the intent of
1333	Congress as expressed in the Act of Congress of March 9, 1945
1334	(Pub. L. No. 15, 79th Congress), by defining, or providing for
1335	the determination of, all such practices in this state which
1336	constitute unfair methods of competition or unfair or deceptive
1337	acts or practices and by prohibiting the trade practices so
1338	defined or determined.
1339	637.1031  Definitions.-When used in ss. 637.1029-637.1049,
1340	the term "insurance policy" or "insurance contract" means a
1341	written contract of, or a written agreement for or effecting,
1342	insurance, or the certificate thereof, by whatever name called,
1343	and includes all clauses, riders, endorsements, and papers which
1344	are a part thereof.
1345	637.1032  Unfair methods of competition and unfair or
1346	deceptive acts or practices prohibited; penalties.-
1347	(1)  A person may not engage in this state in any trade
1348	practice which is defined in ss. 637.1029-637.1049 as, or
1349	determined pursuant to s. 637.1029 or s. 637.1035 to be, an
1350	unfair method of competition or an unfair or deceptive act or
1351	practice involving the business of insurance.
1352	(2)  Any person who violates any provision of ss. 637.1029-
1353	637.1049 shall be subject to a fine in an amount not greater
1354	than $2,500 for each nonwillful violation and not greater than
1355	$20,000 for each willful violation. Fines under this subsection
1356	may not exceed an aggregate amount of $10,000 for all nonwillful
1357	violations arising out of the same action or an aggregate amount
1358	of $100,000 for all willful violations arising out of the same
1359	action. The fines authorized by this subsection may be imposed
1360	in addition to any other applicable penalty.
1361	637.1033  Unfair methods of competition and unfair or
1362	deceptive acts or practices defined.-The following are defined
1363	as unfair methods of competition and unfair or deceptive acts or
1364	practices:
1365	(1)  Misrepresentations and false advertising of insurance
1366	policies.-Knowingly making, issuing, circulating, or causing to
1367	be made, issued, or circulated, any estimate, illustration,
1368	circular, statement, sales presentation, omission, or comparison
1369	which:
1370	(a)  Misrepresents the benefits, advantages, conditions, or
1371	terms of any insurance policy.
1372	(b)  Misrepresents the dividends or share of the surplus to
1373	be received on any insurance policy.
1374	(c)  Makes any false or misleading statements as to the
1375	dividends or share of surplus previously paid on any insurance
1376	policy.
1377	(d)  Is misleading, or is a misrepresentation, as to the
1378	financial condition of any person or as to the legal reserve
1379	system upon which any life insurer operates.
1380	(e)  Uses any name or title of any insurance policy or
1381	class of insurance policies misrepresenting the true nature
1382	thereof.
1383	(f)  Is a misrepresentation for the purpose of inducing, or
1384	tending to induce, the lapse, forfeiture, exchange, conversion,
1385	or surrender of any insurance policy.
1386	(g)  Is a misrepresentation for the purpose of effecting a
1387	pledge or assignment of, or effecting a loan against, any
1388	insurance policy.
1389	(h)  Misrepresents any insurance policy as being shares of
1390	stock or misrepresents ownership interest in the company.
1391	(i)  Uses any advertisement that would mislead or otherwise
1392	cause a reasonable person to believe mistakenly that the state
1393	or the Federal Government is responsible for the insurance sales
1394	activities of any person or stands behind any person's credit or
1395	that any person, the state, or the Federal Government guarantees
1396	any returns on insurance products or is a source of payment of
1397	any insurance obligation of or sold by any person.
1398	(2)  False information and advertising generally.-Knowingly
1399	making, publishing, disseminating, circulating, or placing
1400	before the public, or causing, directly or indirectly, to be
1401	made, published, disseminated, circulated, or placed before the
1402	public:
1403	(a)  In a newspaper, magazine, or other publication,
1404	(b)  In the form of a notice, circular, pamphlet, letter,
1405	or poster,
1406	(c)  Over any radio or television station, or
1407	(d)  In any other way,
1408
1409	an advertisement, announcement, or statement containing any
1410	assertion, representation, or statement with respect to the
1411	business of insurance, which is untrue, deceptive, or
1412	misleading.
1413	(3)  Defamation.-Knowingly making, publishing,
1414	disseminating, or circulating, directly or indirectly, or
1415	aiding, abetting, or encouraging the making, publishing,
1416	disseminating, or circulating of, any oral or written statement,
1417	or any pamphlet, circular, article, or literature, which is
1418	false or maliciously critical of, or derogatory to, any person
1419	and which is calculated to injure such person.
1420	(4)  Boycott, coercion, and intimidation.-Entering into any
1421	agreement to commit, or by any concerted action committing, any
1422	act of boycott, coercion, or intimidation resulting in, or
1423	tending to result in, unreasonable restraint of, or monopoly in,
1424	the business of insurance.
1425	(5)  False statements and entries.-
1426	(a)  Knowingly:
1427	1.  Filing with any supervisory or other public official,
1428	2.  Making, publishing, disseminating, circulating,
1429	3.  Delivering to any person,
1430	4.  Placing before the public,
1431	5.  Causing, directly or indirectly, to be made, published,
1432	disseminated, circulated, delivered to any person, or placed
1433	before the public,
1434
1435	any false material statement.
1436	(b)  Knowingly making any false entry of a material fact in
1437	any book, report, or statement of any person, or knowingly
1438	omitting to make a true entry of any material fact pertaining to
1439	the business of such person in any book, report, or statement of
1440	such person.
1441	(6)  Unlawful rebates.-
1442	(a)  Except as otherwise expressly provided by law, or in
1443	an applicable filing with the department, knowingly:
1444	1.  Permitting, or offering to make, or making, any
1445	contract or agreement as to such contract other than as plainly
1446	expressed in the insurance contract issued thereon; or
1447	2.  Paying, allowing, or giving, or offering to pay, allow,
1448	or give, directly or indirectly, as inducement to such insurance
1449	contract, any unlawful rebate of premiums payable on the
1450	contract, any special favor or advantage in the dividends or
1451	other benefits thereon, or any valuable consideration or
1452	inducement whatever not specified in the contract.
1453	(b)1.  A title insurer, or any member, employee, attorney,
1454	agent, or agency thereof, may not pay, allow, or give, or offer
1455	to pay, allow, or give, directly or indirectly, as inducement to
1456	title insurance, or after such insurance has been effected, any
1457	rebate or abatement of the premium or any other charge or fee,
1458	or provide any special favor or advantage, or any monetary
1459	consideration or inducement whatever.
1460	2.  Nothing in this paragraph shall be construed as
1461	prohibiting the payment of fees to attorneys at law duly
1462	licensed to practice law in the courts of this state, for
1463	professional services, or as prohibiting the payment of earned
1464	portions of the premium to duly appointed agents or agencies who
1465	actually perform services for the title insurer. Nothing in this
1466	paragraph shall be construed as prohibiting a rebate or
1467	abatement of an attorney's fee charged for professional
1468	services, or that portion of the premium that is not required to
1469	be retained by the insurer pursuant to s. 637.2064(1), or any
1470	other agent charge or fee to the person responsible for paying
1471	the premium, charge, or fee.
1472	3.  An insured named in a policy, or any other person
1473	directly or indirectly connected with the transaction involving
1474	the issuance of such policy, including, but not limited to, any
1475	mortgage broker, real estate broker, builder, or attorney, any
1476	employee, agent, agency, or representative thereof, or any other
1477	person whatsoever, may not knowingly receive or accept, directly
1478	or indirectly, any rebate or abatement of any portion of the
1479	title insurance premium or of any other charge or fee or any
1480	monetary consideration or inducement whatsoever, except as set
1481	forth in subparagraph 2.; provided, in no event shall any
1482	portion of the attorney's fee, any portion of the premium that
1483	is not required to be retained by the insurer pursuant to s.
1484	637.2064(1), any agent charge or fee, or any other monetary
1485	consideration or inducement be paid directly or indirectly for
1486	the referral of title insurance business.
1487	(7)  Unfair claim settlement practices.-
1488	(a)  Attempting to settle claims on the basis of an
1489	application, when serving as a binder or intended to become a
1490	part of the policy, or any other material document which was
1491	altered without notice to, or knowledge or consent of, the
1492	insured;
1493	(b)  A material misrepresentation made to an insured or any
1494	other person having an interest in the proceeds payable under
1495	such contract or policy, for the purpose and with the intent of
1496	effecting settlement of such claims, loss, or damage under such
1497	contract or policy on less favorable terms than those provided
1498	in, and contemplated by, such contract or policy; or
1499	(c)  Committing or performing with such frequency as to
1500	indicate a general business practice any of the following:
1501	1.  Failing to adopt and implement standards for the proper
1502	investigation of claims;
1503	2.  Misrepresenting pertinent facts or insurance policy
1504	provisions relating to coverages at issue;
1505	3.  Failing to acknowledge and act promptly upon
1506	communications with respect to claims;
1507	4.  Denying claims without conducting reasonable
1508	investigations based upon available information;
1509	5.  Failing to affirm or deny full or partial coverage of
1510	claims, and, as to partial coverage, the dollar amount or extent
1511	of coverage, or failing to provide a written statement that the
1512	claim is being investigated, upon the written request of the
1513	insured within 30 days after proof-of-loss statements have been
1514	completed;
1515	6.  Failing to promptly provide a reasonable explanation in
1516	writing to the insured of the basis in the insurance policy, in
1517	relation to the facts or applicable law, for denial of a claim
1518	or for the offer of a compromise settlement;
1519	7.  Failing to promptly notify the insured of any
1520	additional information necessary for the processing of a claim;
1521	or
1522	8.  Failing to clearly explain the nature of the requested
1523	information and the reasons why such information is necessary.
1524	(8)  Failure to maintain complaint-handling procedures.-
1525	Failure of any person to maintain a complete record of all the
1526	complaints received since the date of the last examination. For
1527	purposes of this subsection, the term "complaint" means any
1528	written communication primarily expressing a grievance.
1529	(9)  Misrepresentation in insurance applications.-
1530	(a)  Knowingly making a false or fraudulent written or oral
1531	statement or representation on, or relative to, an application
1532	or negotiation for an insurance policy for the purpose of
1533	obtaining a fee, commission, money, or other benefit from any
1534	insurer, agent, broker, or individual.
1535	(b)  Knowingly making a material omission in the comparison
1536	of a life, health, or Medicare supplement insurance replacement
1537	policy with the policy it replaces for the purpose of obtaining
1538	a fee, commission, money, or other benefit from any insurer,
1539	agent, broker, or individual. For the purposes of this
1540	paragraph, a material omission includes the failure to advise
1541	the insured of the existence and operation of a preexisting
1542	condition clause in the replacement policy.
1543	(10)  Advertising gifts permitted.-No provision of
1544	subsection (6) or subsection (7) shall be deemed to prohibit a
1545	licensed insurer or its agent from giving to insureds,
1546	prospective insureds, and others, for the purpose of
1547	advertising, any article of merchandise having a value of not
1548	more than $25.
1549	(11)  Illegal dealings in premiums; excess or reduced
1550	charges for insurance.-
1551	(a)  Knowingly collecting any sum as a premium or charge
1552	for insurance, which is not then provided, or is not in due
1553	course to be provided, subject to acceptance of the risk by the
1554	insurer, by an insurance policy issued by an insurer as
1555	permitted by this chapter.
1556	(b)  Knowingly collecting as a premium or charge for
1557	insurance any sum in excess of or less than the premium or
1558	charge applicable to such insurance, in accordance with the
1559	applicable classifications and rates as filed with and approved
1560	by the department, and as specified in the policy; or, in cases
1561	when classifications, premiums, or rates are not required by
1562	this chapter to be so filed and approved, premiums and charges
1563	collected from a resident of this state in excess of or less
1564	than those specified in the policy and as fixed by the insurer.
1565	(12)  Interlocking ownership and management.-
1566	(a)  Any domestic insurer may retain, invest in, or acquire
1567	the whole or any part of the capital stock of any other insurer
1568	or insurers, or have a common management with any other insurer
1569	or insurers, unless such retention, investment, acquisition, or
1570	common management is inconsistent with any other provision of
1571	this chapter, or unless by reason thereof the business of such
1572	insurers with the public is conducted in a manner which
1573	substantially lessens competition generally in the insurance
1574	business.
1575	(b)  Any person otherwise qualified may be a director of
1576	two or more domestic insurers which are competitors, unless the
1577	effect thereof is substantially to lessen competition between
1578	insurers generally or materially tend to create a monopoly.
1579	(c)  Any limitation contained in this subsection does not
1580	apply to any person who is a director of two or more insurers
1581	under common control or management.
1582	(13)  Soliciting or accepting new or renewal insurance
1583	risks by insolvent or impaired insurer prohibited; penalty.-
1584	(a)  Whether or not delinquency proceedings as to the
1585	insurer have been or are to be initiated, but while such
1586	insolvency or impairment exists, a director or officer of an
1587	insurer, except with the written permission of the department,
1588	may not authorize or permit the insurer to solicit or accept new
1589	or renewal insurance risks in this state after such director or
1590	officer knew, or reasonably should have known, that the insurer
1591	was insolvent or impaired. The term "impaired" includes
1592	impairment of capital or surplus, as defined in s. 631.011(12)
1593	and (13).
1594	(b)  Any such director or officer, upon conviction of a
1595	violation of this subsection, is guilty of a felony of the third
1596	degree, punishable as provided in s. 775.082, s. 775.083, or s.
1597	775.084.
1598	(14)  Refusal to insure.-In addition to other provisions of
1599	this chapter, the refusal to insure, or continue to insure, any
1600	individual or risk solely because of:
1601	(a)  Race, color, creed, marital status, sex, or national
1602	origin;
1603	(b)  The residence, age, or lawful occupation of the
1604	individual or the location of the risk, unless there is a
1605	reasonable relationship between the residence, age, or lawful
1606	occupation of the individual or the location of the risk and the
1607	coverage issued or to be issued; or
1608	(c)  The insured's or applicant's failure to agree to place
1609	collateral business with any insurer.
1610	(15)  Sliding.-Sliding is the act or practice of:
1611	(a)  Representing to the applicant that a specific
1612	ancillary coverage or product is required by law in conjunction
1613	with the purchase of insurance when such coverage or product is
1614	not required;
1615	(b)  Representing to the applicant that a specific
1616	ancillary coverage or product is included in the policy applied
1617	for without an additional charge when such charge is required;
1618	or
1619	(c)  Charging an applicant for a specific ancillary
1620	coverage or product, in addition to the cost of the insurance
1621	coverage applied for, without the informed consent of the
1622	applicant.
1623	637.10335  Civil remedies against title insurers.-
1624	(1)(a)  Any person may bring a civil action against a title
1625	insurer when such person is damaged:
1626	1.  By a violation by the insurer of s. 637.1033(7), (11),
1627	or (14); or
1628	2.  By the commission of any of the following acts by the
1629	insurer:
1630	a.  Not attempting in good faith to settle claims when,
1631	under all the circumstances, it could and should have done so
1632	had it acted fairly and honestly toward its insured and with
1633	due regard for her or his interests;
1634	b.  Making claims payments to insureds or beneficiaries not
1635	accompanied by a statement setting forth the coverage under
1636	which payments are being made; or
1637	c.  Except as to liability coverages, failing to promptly
1638	settle claims, when the obligation to settle a claim has become
1639	reasonably clear, under one portion of the insurance policy
1640	coverage in order to influence settlements under other portions
1641	of the insurance policy coverage.
1642	(b)  Notwithstanding paragraph (a), a person pursuing a
1643	remedy under this section need not prove that such act was
1644	committed or performed with such frequency as to indicate a
1645	general business practice.
1646	(2)  Any party may bring a civil action against an
1647	unauthorized insurer if such party is damaged by a violation of
1648	s. 637.1033 by the unauthorized insurer.
1649	(3)(a)  As a condition precedent to bringing an action
1650	under this section, the department and the authorized insurer
1651	must have been given 60 days' written notice of the violation.
1652	If the department returns a notice for lack of specificity, the
1653	60-day time period shall not begin until a proper notice is
1654	filed.
1655	(b)  The notice shall be on a form provided by the
1656	department and shall state with specificity the following
1657	information, and such other information as the department may
1658	require:
1659	1.  The statutory provision, including the specific
1660	language of the statute, which the authorized insurer allegedly
1661	violated.
1662	2.  The facts and circumstances giving rise to the
1663	violation.
1664	3.  The name of any individual involved in the violation.
1665	4.  A reference to specific policy language that is
1666	relevant to the violation, if any. If the person bringing the
1667	civil action is a third-party claimant, she or he shall not be
1668	required to reference the specific policy language if the
1669	authorized insurer has not provided a copy of the policy to the
1670	third-party claimant pursuant to written request.
1671	5.  A statement that the notice is given in order to
1672	perfect the right to pursue the civil remedy authorized by this
1673	section.
1674	(c)  Within 20 days after receipt of the notice, the
1675	department may return any notice that does not provide the
1676	specific information required by this section, and the
1677	department shall indicate the specific deficiencies contained in
1678	the notice. A determination by the department to return a
1679	notice for lack of specificity shall be exempt from the
1680	requirements of chapter 120.
1681	(d)  An action may not lie if, within 60 days after filing
1682	notice, the damages are paid or the circumstances giving rise to
1683	the violation are corrected.
1684	(e)  The authorized insurer that is the recipient of a
1685	notice filed pursuant to this section shall report to the
1686	department on the disposition of the alleged violation.
1687	(f)  The applicable statute of limitations for an action
1688	under this section shall be tolled for a period of 65 days by
1689	the mailing of the notice required by this subsection or the
1690	mailing of a subsequent notice required by this subsection.
1691	(4)  Upon adverse adjudication at trial or upon appeal,
1692	the authorized insurer shall be liable for damages, together
1693	with court costs and reasonable attorney's fees incurred by the
1694	plaintiff.
1695	(5)(a)  Punitive damages may not be awarded under this
1696	section unless the acts giving rise to the violation occur with
1697	such frequency as to indicate a general business practice and
1698	these acts are:
1699	1.  Willful, wanton, and malicious;
1700	2.  In reckless disregard for the rights of any insured; or
1701	3.  In reckless disregard for the rights of a beneficiary
1702	under a life insurance contract.
1703	(b)  Any person who pursues a claim under this subsection
1704	shall post in advance the costs of discovery. Such costs shall
1705	be awarded to the authorized insurer if no punitive damages are
1706	awarded to the plaintiff.
1707	(6)  This section shall not be construed to authorize a
1708	class action suit against an authorized insurer or a civil
1709	action against the commission, the office, or the department or
1710	any of their employees, or to create a cause of action when an
1711	authorized health insurer refuses to pay a claim for
1712	reimbursement on the ground that the charge for a service was
1713	unreasonably high or that the service provided was not medically
1714	necessary.
1715	(7)  In the absence of expressed language to the
1716	contrary, this section shall not be construed to authorize a
1717	civil action or create a cause of action against an authorized
1718	insurer or its employees who, in good faith, release information
1719	about an insured or an insurance policy to a law enforcement
1720	agency in furtherance of an investigation of a criminal or
1721	fraudulent act relating to a motor vehicle theft or a motor
1722	vehicle insurance claim.
1723	(8)  The civil remedy specified in this section does not
1724	preempt any other remedy or cause of action provided pursuant
1725	to any other statute or pursuant to the common law of this
1726	state. Any person may obtain a judgment under the common-law
1727	remedy of bad faith or the remedy provided under this section
1728	but is not entitled to a judgment under both remedies. This
1729	section shall not be construed to create a common-law cause of
1730	action. The damages recoverable pursuant to this section shall
1731	include those damages that are a reasonably foreseeable result
1732	of a specified violation of this section by the authorized
1733	insurer and may include an award or judgment in an amount
1734	that exceeds the policy limits.
1735	637.1034  Favored title insurance agent or title insurer;
1736	coercion of debtors.-
1737	(1)  A person may not:
1738	(a)  Require, as a condition precedent or condition
1739	subsequent to the lending of money or extension of credit or any
1740	renewal thereof, that the person to whom such money or credit is
1741	extended, or whose obligation the creditor is to acquire or
1742	finance, negotiate any policy or contract of insurance through a
1743	particular insurer or group of insurers or agent or broker or
1744	group of agents or brokers.
1745	(b)  Reject an insurance policy solely because the policy
1746	has been issued or underwritten by any person who is not
1747	associated with a financial institution, or with any subsidiary
1748	or affiliate thereof, when such insurance is required in
1749	connection with a loan or extension of credit; or unreasonably
1750	disapprove the insurance policy provided by a borrower for the
1751	protection of the property securing the credit or lien. For
1752	purposes of this paragraph, such disapproval shall be deemed
1753	unreasonable if it is not based solely on reasonable standards,
1754	uniformly applied, relating to the extent of coverage required
1755	by such lender or person extending credit and the financial
1756	soundness and the services of an insurer. Such standards shall
1757	not discriminate against any particular type of insurer, nor
1758	shall such standards call for the disapproval of an insurance
1759	policy because such policy contains coverage in addition to that
1760	required.
1761	(c)  Require, directly or indirectly, that any borrower,
1762	mortgagor, purchaser, insurer, broker, or agent pay a separate
1763	charge in connection with the handling of any insurance policy
1764	that is required in connection with a loan or other extension of
1765	credit or the provision of another traditional banking product,
1766	or pay a separate charge to substitute the insurance policy of
1767	one insurer for that of another, unless such charge would be
1768	required if the person were providing the insurance. This
1769	paragraph does not include the interest which may be charged on
1770	premium loans or premium advances in accordance with the
1771	security instrument.
1772	(d)  Use or provide to others insurance information
1773	required to be disclosed by a customer to a financial
1774	institution, or a subsidiary or affiliate thereof, in connection
1775	with the extension of credit for the purpose of soliciting the
1776	sale of insurance, unless the customer has given express written
1777	consent or has been given the opportunity to object to such use
1778	of the information. Insurance information means information
1779	concerning premiums, terms, and conditions of insurance
1780	coverage, insurance claims, and insurance history provided by
1781	the customer. The opportunity to object to the use of insurance
1782	information must be in writing and must be clearly and
1783	conspicuously made.
1784	(2)(a)  Any person offering the sale of insurance at the
1785	time of and in connection with an extension of credit or the
1786	sale or lease of goods or services shall disclose in writing
1787	that the choice of an insurance provider will not affect the
1788	decision regarding the extension of credit or sale or lease of
1789	goods or services, except that reasonable requirements may be
1790	imposed pursuant to subsection (1).
1791	(b)  Federally insured or state-insured depository
1792	institutions and credit unions shall make clear and conspicuous
1793	disclosure in writing prior to the sale of any insurance policy
1794	that such policy is not a deposit, is not insured by the Federal
1795	Deposit Insurance Corporation or any other entity, is not
1796	guaranteed by the insured depository institution or any person
1797	soliciting the purchase of or selling the policy; that the
1798	financial institution is not obligated to provide benefits under
1799	the insurance contract; and, where appropriate, that the policy
1800	involves investment risk, including potential loss of principal.
1801	(c)  All documents constituting policies of insurance shall
1802	be separate and shall not be combined with or be a part of other
1803	documents. A person may not include the expense of insurance
1804	premiums in a primary credit transaction without the express
1805	written consent of the customer.
1806	(d)  A loan officer of a financial institution who is
1807	involved in the application, solicitation, or closing of a loan
1808	transaction may not solicit or sell insurance in connection with
1809	the same loan, but such loan officer may refer the loan customer
1810	to another insurance agent who is not involved in the
1811	application, solicitation, or closing of the same loan
1812	transaction. This paragraph does not apply to an agent located
1813	on premises having only a single person with lending authority,
1814	or to a broker or dealer registered under the Federal Securities
1815	Exchange Act of 1934 in connection with a margin loan secured by
1816	securities.
1817	(3)  A person may not make an extension of credit or the
1818	sale of any product or service that is the equivalent to an
1819	extension of credit or lease or sale of property of any kind, or
1820	furnish any services or fix or vary the consideration for any of
1821	the foregoing, on the condition or requirement that the customer
1822	obtain insurance from that person, or a subsidiary or affiliate
1823	of that person, or a particular insurer, agent, or broker;
1824	however, this subsection does not prohibit any person from
1825	engaging in any activity that if done by a financial institution
1826	would not violate s. 106 of the Bank Holding Company Act
1827	Amendments of 1970, 12 U.S.C. s. 1972, as interpreted by the
1828	Board of Governors of the Federal Reserve System.
1829	(4)  The department may investigate the affairs of any
1830	person to whom this section applies to determine whether such
1831	person has violated this section. If a violation of this section
1832	is found to have been committed knowingly, the person in
1833	violation shall be subject to the same procedures and penalties
1834	as provided in ss. 637.1036, 637.1037, 637.1038 and 637.1039.
1835	637.1035  Power of department.-The department may examine
1836	and investigate the affairs of every person involved in the
1837	business of insurance in this state in order to determine
1838	whether such person has been or is engaged in any unfair method
1839	of competition or in any unfair or deceptive act or practice
1840	prohibited by s. 637.1032, and shall each have the powers and
1841	duties specified in ss. 637.1036-637.1039 in connection
1842	therewith.
1843	637.1036  Defined practices; hearings, witnesses,
1844	appearances, production of books and service of process.-
1845	(1)  Whenever the department has reason to believe that any
1846	person has engaged, or is engaging, in this state in any unfair
1847	method of competition or any unfair or deceptive act or practice
1848	as defined in s. 637.1033 or s. 637.1034 or is engaging in the
1849	business of insurance without being properly licensed as
1850	required by this chapter and that a proceeding by it in respect
1851	thereto would be to the interest of the public, it shall conduct
1852	or cause to have conducted a hearing in accordance with chapter
1853	120.
1854	(2)  The department, a duly empowered hearing officer, or
1855	an administrative law judge shall, during the conduct of such
1856	hearing, have those powers enumerated in s. 120.569; however,
1857	the penalties for failure to comply with a subpoena or with an
1858	order directing discovery shall be limited to a fine not to
1859	exceed $1,000 per violation.
1860	(3)  Statements of charges, notices, and orders under this
1861	act may be served by anyone duly authorized by the department,
1862	in the manner provided by law for service of process in civil
1863	actions or by certifying and mailing a copy thereof to the
1864	person affected by such statement, notice, order, or other
1865	process at his or her or its residence or principal office or
1866	place of business. The verified return by the person so serving
1867	such statement, notice, order, or other process, setting forth
1868	the manner of the service, shall be proof of the same, and the
1869	return postcard receipt for such statement, notice, order, or
1870	other process, certified and mailed as aforesaid, shall be proof
1871	of service of the same.
1872	637.1037  Cease and desist and penalty orders.-After the
1873	hearing provided in s. 637.1036, the department shall enter a
1874	final order in accordance with s. 120.569. If it is determined
1875	that the person charged has engaged in an unfair or deceptive
1876	act or practice or the unlawful transaction of insurance, the
1877	department shall also issue an order requiring the violator to
1878	cease and desist from engaging in such method of competition,
1879	act, or practice or the unlawful transaction of insurance.
1880	Further, if the act or practice is a violation of s. 637.1033 or
1881	s. 637.1034, the department may, at its discretion, order any
1882	one or more of the following:
1883	(1)  Suspension or revocation of the person's certificate
1884	of authority, license, or eligibility for any certificate of
1885	authority or license, if he or she knew, or reasonably should
1886	have known, he or she was in violation of this chapter.
1887	(2)  Such other relief as may be provided in this chapter.
1888	637.1038  Appeals from the department.-Any person subject
1889	to an order of the department under s. 637.1037 or s. 637.1039
1890	may obtain a review of such order by filing an appeal therefrom
1891	in accordance with the provisions and procedures for appeal from
1892	the orders of the department in general under s. 120.68.
1893	637.1039  Penalty for violation of cease and desist
1894	orders.-Any person who violates a cease and desist order of the
1895	department under s. 637.1037 while such order is in effect,
1896	after notice and hearing as provided in s. 637.1036, shall be
1897	subject, at the discretion of the department, to any one or more
1898	of the following:
1899	(1)  A monetary penalty of not more than $50,000 as to all
1900	matters determined in such hearing.
1901	(2)  Suspension or revocation of such person's certificate
1902	of authority, license, or eligibility to hold such certificate
1903	of authority or license.
1904	(3)  Such other relief as may be provided in this chapter.
1905	637.1041  Rules.-
1906	(1)  The department may, in accordance with chapter 120,
1907	adopt reasonable rules as are necessary or proper to identify
1908	specific methods of competition or acts or practices which are
1909	prohibited by s. 637.1033 or s. 637.1034, but the rules shall
1910	not enlarge upon or extend the provisions of ss. 637.1033 and
1911	637.1034.
1912	(2)  The department shall, in accordance with chapter 120,
1913	adopt rules to protect members of the United States Armed Forces
1914	from dishonest or predatory insurance sales practices by
1915	insurers and insurance agents. The rules shall identify specific
1916	false, misleading, deceptive, or unfair methods of competition,
1917	acts, or practices which are prohibited by s. 637.1033 or s.
1918	637.1034. The rules shall be based upon model rules or model
1919	laws adopted by the National Association of Insurance
1920	Commissioners which identify certain insurance practices
1921	involving the solicitation or sale of insurance and annuities to
1922	members of the United States Armed Forces which are false,
1923	misleading, deceptive, or unfair.
1924	637.1042  Provisions of chapter additional to existing
1925	law.-The powers vested in the department by this chapter shall
1926	be additional to any other powers to enforce any penalties,
1927	fines, or forfeitures authorized by law.
1928	637.1043  Civil liability.-The provisions of this chapter
1929	are cumulative to rights under the general civil and common law,
1930	and no action of the department, shall abrogate such rights to
1931	damages or other relief in any court.
1932	637.10435  Policyholders Bill of Rights.-
1933	(1)  The principles expressed in the following statements
1934	shall serve as standards to be followed by the department,
1935	commission, and office in exercising their powers and duties,
1936	in exercising administrative discretion, in dispensing
1937	administrative interpretations of the law, and in adopting rules:
1938	(a)  Policyholders have the right to competitive pricing
1939	practices and marketing methods that enable them to determine
1940	the best value among comparable policies.
1941	(b)  Policyholders have the right to obtain comprehensive
1942	coverage.
1943	(c)  Policyholders have the right to insurance advertising
1944	and other selling approaches that provide accurate and balanced
1945	information on the benefits and limitations of a policy.
1946	(d)  Policyholders have a right to an insurance company
1947	that is financially stable.
1948	(e)  Policyholders have the right to be serviced by a
1949	competent, honest insurance agent or broker.
1950	(f)  Policyholders have the right to a readable policy.
1951	(g)  Policyholders have the right to an insurance company
1952	that provides an economic delivery of coverage and that tries to
1953	prevent losses.
1954	(h)  Policyholders have the right to a balanced and
1955	positive regulation by the department, commission, and office.
1956	(2)  This section shall not be construed as creating a
1957	civil cause of action by any individual policyholder against any
1958	individual insurer.
1959	637.1044  Privacy.-The department shall adopt rules
1960	consistent with other provisions of this chapter to govern the
1961	use of a consumer's nonpublic personal financial and health
1962	information. These rules must be based on, consistent with, and
1963	not more restrictive than the Privacy of Consumer Financial and
1964	Health Information Regulation, adopted September 26, 2000, by
1965	the National Association of Insurance Commissioners. In
1966	addition, these rules must be consistent with, and not more
1967	restrictive than, the standards contained in Title V of the
1968	Gramm-Leach-Bliley Act of 1999, Pub. L. No. 106-102.
1969	637.10445  Trade secret documents.-
1970	(1)  If any person who is required to submit documents
1971	or other information to the department pursuant to this chapter
1972	or by rule or order of the department claims that such
1973	submission contains a trade secret, such person may file with
1974	the department a notice of trade secret as provided in this
1975	section. Failure to do so constitutes a waiver of any claim by
1976	such person that the document or information is a trade secret.
1977	(a)  Each page of such document or specific portion of a
1978	document claimed to be a trade secret must be clearly marked
1979	"trade secret."
1980	(b)  All material marked as a trade secret must be
1981	separated from all non-trade secret material and be submitted in
1982	a separate envelope clearly marked "trade secret."
1983	(c)  In submitting a notice of trade secret to the
1984	department, the submitting party must include an affidavit
1985	certifying under oath to the truth of the following
1986	statements concerning all documents or information that are
1987	claimed to be trade secrets:
1988	1.  [I consider/My company considers] this information a
1989	trade secret that has value and provides an advantage or an
1990	opportunity to obtain an advantage over those who do not know or
1991	use it.
1992	2.  [I have/My company has] taken measures to prevent the
1993	disclosure of the information to anyone other than those who
1994	have been selected to have access for limited purposes, and [I
1995	intend/my company intends] to continue to take such measures.
1996	3.  The information is not, and has not been, reasonably
1997	obtainable without [my/our] consent by other persons by use of
1998	legitimate means.
1999	4.  The information is not publicly available elsewhere.
2000	(d)  Any data submitted by a title insurance agent or title
2001	insurer pursuant to s. 637.1014 is presumed to be a trade
2002	secret under this section whether or not so designated.
2003	(2)  If the department receives a public records request for
2004	a document or information that is marked and certified as a trade
2005	secret, the department shall promptly notify the person that
2006	certified the document as a trade secret. The notice shall
2007	inform such person that he or she or his or her company has 30
2008	days after receipt of such notice to file an action in circuit
2009	court seeking a determination whether the document in question
2010	contains trade secrets and an order barring public disclosure of
2011	the document. If that person or company files an action within
2012	30 days after receipt of notice of the public records request,
2013	the department may not release the documents pending the outcome
2014	of the legal action. The failure to file an action within 30
2015	days constitutes a waiver of any claim of confidentiality,
2016	and the department shall release the document as requested.
2017	(3)  The department may disclose a trade secret, together
2018	with the claim that it is a trade secret, to an officer or
2019	employee of another governmental agency whose use of the trade
2020	secret is within the scope of his or her employment.
2021	637.1045  Financial institutions conducting title insurance
2022	transactions.-A financial institution, as defined in s.
2023	655.005(1)(g), (h), or (p), may conduct title insurance
2024	transactions only through Florida-licensed title insurance
2025	agents representing Florida-authorized title insurers.
2026	637.1046  Investigation by department or Division of
2027	Insurance Fraud; compliance; immunity; confidential information;
2028	reports to division; division investigator's power of arrest.-
2029	(1)  For the purposes of this section, a person commits a
2030	"fraudulent insurance act" if the person knowingly and with
2031	intent to defraud presents, causes to be presented, or prepares
2032	with knowledge or belief that it will be presented, to or by a
2033	title insurer or any title insurance agent, any written
2034	statement as part of, or in support of, an application for the
2035	issuance of, or the rating of, any insurance policy, or a claim
2036	for payment or other benefit pursuant to any insurance policy,
2037	which the person knows to contain materially false information
2038	concerning any fact material thereto or if the person conceals,
2039	for the purpose of misleading another, information concerning
2040	any fact material thereto.
2041	(2)  If, by its own inquiries or as a result of complaints,
2042	the department or its Division of Insurance Fraud has reason to
2043	believe that a person has engaged in, or is engaging in, a
2044	fraudulent insurance act, an act or practice that violates s.
2045	637.1033 or s. 817.234, or an act or practice punishable under
2046	s. 637.1008, it may administer oaths and affirmations, request
2047	the attendance of witnesses or proffering of matter, and collect
2048	evidence. The department shall not compel the attendance of any
2049	person or matter in any such investigation except pursuant to
2050	subsection (4).
2051	(3)  If matter that the department or its division seeks to
2052	obtain by request is located outside the state, the person so
2053	requested may make it available to the division or its
2054	representative to examine the matter at the place where it is
2055	located. The division may designate representatives, including
2056	officials of the state in which the matter is located, to
2057	inspect the matter on its behalf, and it may respond to similar
2058	requests from officials of other states.
2059	(4)(a)  The department or the division may request that an
2060	individual who refuses to comply with any such request be
2061	ordered by the circuit court to provide the testimony or matter.
2062	The court shall not order such compliance unless the department
2063	or the division has demonstrated to the satisfaction of the
2064	court that the testimony of the witness or the matter under
2065	request has a direct bearing on the department of a fraudulent
2066	insurance act, on a violation of s. 637.1033 or s. 817.234, or
2067	on an act or practice punishable under s. 637.1008 or is
2068	pertinent and necessary to further such investigation.
2069	(b)  Except in a prosecution for perjury, an individual who
2070	complies with a court order to provide testimony or matter after
2071	asserting a privilege against self-incrimination to which the
2072	individual is entitled by law may not be subjected to a criminal
2073	proceeding or to a civil penalty with respect to the act
2074	concerning which the individual is required to testify or
2075	produce relevant matter.
2076	(c)  In the absence of fraud or bad faith, a person is not
2077	subject to civil liability for libel, slander, or any other
2078	relevant tort by virtue of filing reports, without malice, or
2079	furnishing other information, without malice, required by this
2080	section or required by the department or division under the
2081	authority granted in this section, and no civil cause of action
2082	of any nature shall arise against such person:
2083	1.  For any information relating to suspected fraudulent
2084	insurance acts or persons suspected of engaging in such acts
2085	furnished to or received from law enforcement officials, their
2086	agents, or employees;
2087	2.  For any information relating to suspected fraudulent
2088	insurance acts or persons suspected of engaging in such acts
2089	furnished to or received from other persons subject to the
2090	provisions of this chapter;
2091	3.  For any such information furnished in reports to the
2092	department, the division, the National Insurance Crime Bureau,
2093	the National Association of Insurance Commissioners, or any
2094	local, state, or federal enforcement officials or their agents
2095	or employees; or
2096	4.  For other actions taken in cooperation with any of the
2097	agencies or individuals specified in this paragraph in the
2098	lawful investigation of suspected fraudulent insurance acts.
2099	(d)  In addition to the immunity granted in paragraph (c),
2100	persons identified as designated employees whose
2101	responsibilities include the investigation and disposition of
2102	claims relating to suspected fraudulent insurance acts may share
2103	information relating to persons suspected of committing
2104	fraudulent insurance acts with other designated employees
2105	employed by the same or other insurers whose responsibilities
2106	include the investigation and disposition of claims relating to
2107	fraudulent insurance acts, provided the department has been
2108	given written notice of the names and job titles of such
2109	designated employees prior to such designated employees sharing
2110	information. Unless the designated employees of the insurer act
2111	in bad faith or in reckless disregard for the rights of any
2112	insured, neither the insurer nor its designated employees are
2113	civilly liable for libel, slander, or any other relevant tort,
2114	and a civil action does not arise against the insurer or its
2115	designated employees:
2116	1.  For any information related to suspected fraudulent
2117	insurance acts provided to an insurer; or
2118	2.  For any information relating to suspected fraudulent
2119	insurance acts provided to the National Insurance Crime Bureau
2120	or the National Association of Insurance Commissioners.
2121
2122	Provided, however, that the qualified immunity against civil
2123	liability conferred on any insurer or its designated employees
2124	shall be forfeited with respect to the exchange or publication
2125	of any defamatory information with third persons not expressly
2126	authorized by this paragraph to share in such information.
2127	(e)  The Chief Financial Officer and any employee or agent
2128	of the department, when acting without malice and in the absence
2129	of fraud or bad faith, is not subject to civil liability for
2130	libel, slander, or any other relevant tort, and no civil cause
2131	of action of any nature exists against such person by virtue of
2132	the execution of official activities or duties of the department
2133	under this section or by virtue of the publication of any report
2134	or bulletin related to the official activities or duties of the
2135	department under this section.
2136	(f)  This section does not abrogate or modify in any way
2137	any common-law or statutory privilege or immunity heretofore
2138	enjoyed by any person.
2139	(5)  Any person, other than an insurer, agent, or other
2140	person licensed under this chapter, or an employee thereof,
2141	having knowledge or who believes that a fraudulent insurance act
2142	or any other act or practice which, upon conviction, constitutes
2143	a felony or a misdemeanor under this chapter, or under s.
2144	817.234, is being or has been committed may send to the Division
2145	of Insurance Fraud a report or information pertinent to such
2146	knowledge or belief and such additional information relative
2147	thereto as the department may request. Any professional
2148	practitioner licensed or regulated by the Department of Business
2149	and Professional Regulation, except as otherwise provided by
2150	law, any medical review committee as defined in s. 766.101, any
2151	title insurer, title insurance agent, or other person licensed
2152	under this chapter, or an employee thereof, having knowledge or
2153	who believes that a fraudulent insurance act or any other act or
2154	practice which, upon conviction, constitutes a felony or a
2155	misdemeanor under this chapter, or under s. 817.234, is being or
2156	has been committed shall send to the Division of Insurance Fraud
2157	a report or information pertinent to such knowledge or belief
2158	and such additional information relative thereto as the
2159	department may require. The Division of Insurance Fraud shall
2160	review such information or reports and select such information
2161	or reports as, in its judgment, may require further
2162	investigation. It shall then cause an independent examination of
2163	the facts surrounding such information or report to be made to
2164	determine the extent, if any, to which a fraudulent insurance
2165	act or any other act or practice which, upon conviction,
2166	constitutes a felony or a misdemeanor under this chapter, or
2167	under s. 817.234, is being committed. The Division of Insurance
2168	Fraud shall report any alleged violations of law which its
2169	investigations disclose to the appropriate licensing agency and
2170	state attorney or other prosecuting agency having jurisdiction
2171	with respect to any such violation, as provided in s. 637.302.
2172	If prosecution by the state attorney or other prosecuting agency
2173	having jurisdiction with respect to such violation is not begun
2174	within 60 days of the division's report, the state attorney or
2175	other prosecuting agency having jurisdiction with respect to
2176	such violation shall inform the division of the reasons for the
2177	lack of prosecution.
2178	(6)  Division investigators may make arrests for criminal
2179	violations established as a result of investigations. Such
2180	investigators shall also be considered state law enforcement
2181	officers for all purposes and may execute arrest warrants and
2182	search warrants; serve subpoenas issued for the examination,
2183	investigation, and trial of all offenses; and arrest upon
2184	probable cause without warrant any person found in the act of
2185	violating any of the provisions of applicable laws.
2186	Investigators empowered to make arrests under this section shall
2187	be empowered to bear arms in the performance of their duties. In
2188	such a situation, the investigator must be certified in
2189	compliance with the provisions of s. 943.1395 or must meet the
2190	temporary employment or appointment exemption requirements of s.
2191	943.131 until certified.
2192	(7)  It is unlawful for any person to resist an arrest
2193	authorized by this section or in any manner to interfere, either
2194	by abetting or assisting such resistance or otherwise
2195	interfering, with division investigators in the duties imposed
2196	upon them by law or department rule.
2197	637.1047  Insurer anti-fraud investigative units; reporting
2198	requirements; penalties for noncompliance.-
2199	(1)  Every insurer admitted to do business in this state
2200	who in the previous calendar year, at any time during that year,
2201	had $10 million or more in direct premiums written shall:
2202	(a)  Establish and maintain a unit or division within the
2203	company to investigate possible fraudulent claims by insureds or
2204	by persons making claims for services or repairs against
2205	policies held by insureds; or
2206	(b)  Contract with others to investigate possible
2207	fraudulent claims for services or repairs against policies held
2208	by insureds.
2209
2210	An insurer subject to this subsection shall file with the
2211	Division of Insurance Fraud of the department on or before July
2212	1, 1996, a detailed description of the unit or division
2213	established pursuant to paragraph (a) or a copy of the contract
2214	and related documents required by paragraph (b).
2215	(2)  Every insurer admitted to do business in this state,
2216	which in the previous calendar year had less than $10 million in
2217	direct premiums written, must adopt an anti-fraud plan and file
2218	it with the Division of Insurance Fraud of the department on or
2219	before July 1, 1996. An insurer may, in lieu of adopting and
2220	filing an anti-fraud plan, comply with the provisions of
2221	subsection (1).
2222	(3)  Each insurers anti-fraud plans shall include:
2223	(a)  A description of the insurer's procedures for
2224	detecting and investigating possible fraudulent insurance acts.
2225	(b)  A description of the insurer's procedures for the
2226	mandatory reporting of possible fraudulent insurance acts to the
2227	Division of Insurance Fraud of the department.
2228	(c)  A description of the insurer's plan for anti-fraud
2229	education and training of its claims adjusters or other
2230	personnel.
2231	(d)  A written description or chart outlining the
2232	organizational arrangement of the insurer's anti-fraud personnel
2233	who are responsible for the investigation and reporting of
2234	possible fraudulent insurance acts.
2235	(4)  Any insurer who obtains a certificate of authority
2236	after July 1, 1995, shall have 18 months in which to comply with
2237	the requirements of this section.
2238	(5)  For purposes of this section, the term "unit or
2239	division" includes the assignment of fraud investigation to
2240	employees whose principal responsibilities are the investigation
2241	and disposition of claims. If an insurer creates a distinct unit
2242	or division, hires additional employees, or contracts with
2243	another entity to fulfill the requirements of this section, the
2244	additional cost incurred must be included as an administrative
2245	expense for ratemaking purposes.
2246	(6)  If an insurer fails to timely submit a final
2247	acceptable anti-fraud plan or anti-fraud investigative unit
2248	description, fails to implement the provisions of a plan or an
2249	anti-fraud investigative unit description, or otherwise refuses
2250	to comply with the provisions of this section, the department,
2251	may:
2252	(a)  Impose an administrative fine of not more than $2,000
2253	per day for such failure by an insurer to submit an acceptable
2254	anti-fraud plan or anti-fraud investigative unit description,
2255	until the department deems the insurer to be in compliance;
2256	(b)  Impose an administrative fine for failure by an
2257	insurer to implement or follow the provisions of an anti-fraud
2258	plan or anti-fraud investigative unit description; or
2259	(c)  Impose the provisions of both paragraphs (a) and (b).
2260	(7)  The department may adopt rules to administer this
2261	section.
2262	637.1048  Anti-Fraud Reward Program; reporting of title
2263	insurance fraud.-
2264	(1)  The Anti-Fraud Reward Program is hereby established
2265	within the department, to be funded from the Title Insurance
2266	Regulatory Trust Fund.
2267	(2)  The department may pay rewards of up to $25,000 to
2268	persons providing information leading to the arrest and
2269	conviction of persons committing crimes investigated by the
2270	Division of Insurance Fraud arising from violations of s.
2271	440.105, s. 637.1008, s. 637.1033, s. 637.1046, or s. 817.234.
2272	(3)  Only a single reward amount may be paid by the
2273	department for claims arising out of the same transaction or
2274	occurrence, regardless of the number of persons arrested and
2275	convicted and the number of persons submitting claims for the
2276	reward. The reward may be disbursed among more than one person
2277	in amounts determined by the department.
2278	(4)  The department shall adopt rules which set forth the
2279	application and approval process, including the criteria against
2280	which claims shall be evaluated, the basis for determining
2281	specific reward amounts, and the manner in which rewards shall
2282	be disbursed. Applications for rewards authorized by this
2283	section must be made pursuant to rules established by the
2284	department.
2285	(5)  Determinations by the department to grant or deny a
2286	reward under this section shall not be considered agency action
2287	subject to review under s. 120.569 or s. 120.57.
2288	637.1049  Disposition of revenues; criminal or forfeiture
2289	proceedings.-
2290	(1)  The Division of Insurance Fraud of the Department of
2291	Financial Services may deposit revenues received as a result of
2292	criminal proceedings or forfeiture proceedings, other than
2293	revenues deposited into the Department of Financial Services'
2294	Federal Law Enforcement Trust Fund under s. 17.43, into the
2295	Title Insurance Regulatory Trust Fund. Moneys deposited pursuant
2296	to this section shall be separately accounted for and shall be
2297	used solely for the division to carry out its duties and
2298	responsibilities.
2299	(2)  Moneys deposited into the Title Insurance Regulatory
2300	Trust Fund pursuant to this section shall be appropriated by the
2301	Legislature, pursuant to the provisions of chapter 216, for the
2302	sole purpose of enabling the division to carry out its duties
2303	and responsibilities.
2304	(3)  Notwithstanding the provisions of s. 216.301 and
2305	pursuant to s. 216.351, any balance of moneys deposited into the
2306	Title Insurance Regulatory Trust Fund pursuant to this section
2307	remaining at the end of any fiscal year shall remain in the
2308	trust fund at the end of that year and shall be available for
2309	carrying out the duties and responsibilities of the division.
2310	Section 4.  Part II of chapter 637, Florida Statutes,
2311	consisting of sections 637.2001, 637.2002, 637.2003, 637.20035,
2312	637.2004, 637.2005, 637.2006, 637.2007, 637.20073, 637.20075,
2313	637.2008, 637.2009, 637.2011, 637.2012, 637.2013, 637.2014,
2314	637.2015, 637.2016, 637.2017, 637.2018, 637.2019, 637.2021,
2315	637.2022, 637.2023, 637.2024, 637.2025, 637.2026, 637.2027,
2316	637.2028, 637.2029, 637.2031, 637.2032, 637.2033, 637.2034,
2317	637.2035, 637.2036, 637.2037, 637.2038, 637.2039, 637.2041,
2318	637.2042, 637.2043, 637.2046, 637.2047, 637.2048, 637.20485,
2319	637.2049, 637.2051, 637.2052, 637.2053, 637.2054, 637.2055,
2320	637.2056, 637.2057, 637.2058, 637.2059, 637.2061, 637.2063,
2321	637.20635, 637.2064, 637.2065, 637.2066, 637.2067, 637.2068,
2322	637.2069, 637.2071, 637.2072, 637.2073, 637.2074, 637.2075,
2323	637.2076, 637.2077, 637.2078, 637.2079, 637.2081, 637.2082,
2324	637.2083, 637.2084, 637.2085, 637.2086, 637.2087, 637.2088,
2325	637.2089, and 637.2091, is created and entitled "ADMINISTRATION
2326	OF TITLE INSURERS."
2327	Section 5.  Sections 637.2001, 637.2002, 637.2003,
2328	637.20035, 637.2004, 637.2005, 637.2006, and 637.2007, Florida
2329	Statutes, are created to read:
2330	637.2001  Certificate of authority required.-
2331	(1)  A person may not act as a title insurer, and a title
2332	insurer or its agents, attorneys, or representatives may not
2333	directly or indirectly transact title insurance, in this state
2334	except as authorized by a subsisting certificate of authority
2335	issued to the title insurer by the department, except as to such
2336	transactions as are expressly otherwise provided for in this
2337	chapter.
2338	(2)  A title insurer may not, from offices or by personnel
2339	or facilities located in this state, solicit title insurance
2340	applications or otherwise transact title insurance in another
2341	state or country unless it holds a subsisting certificate of
2342	authority issued to it by the department authorizing it to
2343	transact the same kind or kinds of title insurance in this
2344	state.
2345	(3)  This state hereby preempts the field of regulating
2346	title insurers and their agents and representatives; and a
2347	county, city, municipality, district, school district, or
2348	political subdivision may not require of any title insurer,
2349	title insurance agent, or representative regulated under this
2350	chapter any authorization, permit, or registration of any kind
2351	for conducting transactions lawful under the authority granted
2352	by the state under this chapter.
2353	(4)(a)  Any person who acts as a title insurer, transacts
2354	title insurance, or otherwise engages in title insurance
2355	activities in this state without a certificate of authority in
2356	violation of this section commits a felony of the third degree,
2357	punishable as provided in s. 775.082, s. 775.083, or s. 775.084.
2358	(b)  However, any person acting as a title insurer without
2359	a valid certificate of authority who violates this section
2360	commits insurance fraud, punishable as provided in this
2361	paragraph. If the amount of any insurance premium collected with
2362	respect to any violation of this section:
2363	1.  Is less than $20,000, the offender commits a felony of
2364	the third degree, punishable as provided in s. 775.082, s.
2365	775.083, or s. 775.084, and the offender shall be sentenced to a
2366	minimum term of imprisonment of 1 year.
2367	2.  Is $20,000 or more, but less than $100,000, the
2368	offender commits a felony of the second degree, punishable as
2369	provided in s. 775.082, s. 775.083, or s. 775.084, and the
2370	offender shall be sentenced to a minimum term of imprisonment of
2371	18 months.
2372	3.  Is $100,000 or more, the offender commits a felony of
2373	the first degree, punishable as provided in s. 775.082, s.
2374	775.083, or s. 775.084, and the offender shall be sentenced to a
2375	minimum term of imprisonment of 2 years.
2376	637.2002  Exceptions, certificate of authority required.-A
2377	certificate of authority shall not be required of a title
2378	insurer with respect to:
2379	(1)  Investigation, settlement, or litigation of claims
2380	under its policies lawfully written in this state, or
2381	liquidation of assets and liabilities of the insurer (other than
2382	collection of new premiums), all as resulting from its former
2383	authorized operations in this state.
2384	(2)  Transactions involving a policy, subsequent to
2385	issuance thereof, covering only subjects of insurance not
2386	resident, located, or expressly to be performed in this state at
2387	the time of issuance, and lawfully solicited, written, or
2388	delivered outside this state.
2389	(3)  Reinsurance, when transacted as authorized under s.
2390	637.2049.
2391	(4)  Investment by a foreign insurer of its funds in real
2392	estate in this state or in securities secured thereby, if the
2393	foreign insurer complies with the laws of this state relating
2394	generally to foreign business corporations.
2395	637.2003  General eligibility of title insurers for
2396	certificate of authority.-To qualify for and hold authority to
2397	transact title insurance in this state, a title insurer must be
2398	otherwise in compliance with this chapter and with its charter
2399	powers and must be an incorporated stock insurer, an
2400	incorporated mutual insurer, or a reciprocal insurer, of the
2401	same general type as may be formed as a domestic insurer under
2402	this chapter; except that:
2403	(1)  A title insurer may not be authorized to transact
2404	title insurance in this state which does not maintain reserves
2405	as required by part I of chapter 625 applicable to the kind or
2406	kinds of insurance transacted by such insurer, wherever
2407	transacted in the United States, or which transacts insurance in
2408	the United States on the assessment premium plan, stipulated
2409	premium plan, cooperative plan, or any similar plan.
2410	(2)  A foreign or alien title insurer or exchange may not
2411	be authorized to transact title insurance in this state unless
2412	it is otherwise qualified therefor under this chapter and has
2413	operated satisfactorily for at least 3 years in its state or
2414	country of domicile; however, the department may waive the 3-
2415	year requirement if the foreign or alien insurer or exchange:
2416	(a)  Has operated successfully and has capital and surplus
2417	of $5 million;
2418	(b)  Is the wholly owned subsidiary of an insurer which is
2419	an authorized insurer in this state; or
2420	(c)  Is the successor in interest through merger or
2421	consolidation of an authorized insurer.
2422	(3)(a)  The department shall not grant or continue
2423	authority to transact title insurance in this state as to any
2424	title insurer the management, officers, or directors of which
2425	are found by it to be incompetent or untrustworthy; or so
2426	lacking in insurance company managerial experience as to make
2427	the proposed operation hazardous to the insurance-buying public;
2428	or so lacking in insurance experience, ability, and standing as
2429	to jeopardize the reasonable promise of successful operation; or
2430	which it has good reason to believe are affiliated directly or
2431	indirectly through ownership, control, reinsurance transactions,
2432	or other insurance or business relations, with any person or
2433	persons whose business operations are or have been marked, to
2434	the detriment of policyholders or stockholders or investors or
2435	creditors or of the public, by manipulation of assets, accounts,
2436	or reinsurance or by bad faith.
2437	(b)  The department shall not grant or continue authority
2438	to transact title insurance in this state as to any title
2439	insurer if any person, including any subscriber, stockholder, or
2440	incorporator, who exercises or has the ability to exercise
2441	effective control of the insurer, or who influences or has the
2442	ability to influence the transaction of the business of the
2443	insurer, does not possess the financial standing and business
2444	experience for the successful operation of the insurer.
2445	(c)  The department may deny, suspend, or revoke the
2446	authority to transact title insurance in this state of any title
2447	insurer if any person, including any subscriber, stockholder, or
2448	incorporator, who exercises or has the ability to exercise
2449	effective control of the insurer, or who influences or has the
2450	ability to influence the transaction of the business of the
2451	insurer, has been found guilty of, or has pleaded guilty or nolo
2452	contendere to, any felony or crime punishable by imprisonment of
2453	1 year or more under the law of the United States or any state
2454	thereof or under the law of any other country which involves
2455	moral turpitude, without regard to whether a judgment of
2456	conviction has been entered by the court having jurisdiction in
2457	such case. However, in the case of an insurer operating under a
2458	subsisting certificate of authority, the insurer shall remove
2459	any such person immediately upon discovery of the conditions set
2460	forth in this paragraph when applicable to such person or upon
2461	the order of the department, and the failure to so act by said
2462	insurer shall be grounds for revocation or suspension of the
2463	insurer's certificate of authority.
2464	(d)  The department may deny, suspend, or revoke the
2465	authority of a title insurer to transact title insurance in this
2466	state if any person, including any subscriber, stockholder, or
2467	incorporator, who exercises or has the ability to exercise
2468	effective control of the insurer, or who influences or has the
2469	ability to influence the transaction of the business of the
2470	insurer, which person the department has good reason to believe
2471	is now or was in the past affiliated directly or indirectly,
2472	through ownership interest of 10 percent or more, control, or
2473	reinsurance transactions, with any business, corporation, or
2474	other entity that has been found guilty of or has pleaded guilty
2475	or nolo contendere to any felony or crime punishable by
2476	imprisonment for 1 year or more under the laws of the United
2477	States, any state, or any other country, regardless of
2478	adjudication. However, in the case of an insurer operating under
2479	a subsisting certificate of authority, the insurer shall
2480	immediately remove such person or immediately notify the
2481	department of such person upon discovery of the conditions set
2482	forth in this paragraph, either when applicable to such person
2483	or upon order of the department; the failure to remove such
2484	person, provide such notice, or comply with such order
2485	constitutes grounds for suspension or revocation of the
2486	insurer's certificate of authority.
2487	(4)(a)  An authorized title insurer may not act as a
2488	fronting company for any unauthorized insurer which is not an
2489	approved reinsurer.
2490	(b)  A "fronting company" is an authorized insurer which by
2491	reinsurance or otherwise generally transfers more than 50
2492	percent to one unauthorized insurer which does not meet the
2493	requirements of s. 637.604(3)(a), (b), or (c), or more than 75
2494	percent to two or more unauthorized insurers which do not meet
2495	the requirements of s. 637.604(3)(a), (b), or (c), of the entire
2496	risk of loss on all of the insurance written by it in this
2497	state, or on one or more lines of insurance, on all of the
2498	business produced through one or more agents or agencies, or on
2499	all of the business from a designated geographical territory,
2500	without obtaining the prior approval of the department.
2501	(c)  The department may, in its discretion, approve a
2502	transfer of risk in excess of the limits in paragraph (b) upon
2503	presentation of evidence, satisfactory to the department, that
2504	the transfer would be in the best interests of the financial
2505	condition of the insurer and in the best interests of the
2506	policyholders.
2507	(5)  A title insurer may not be authorized to transact
2508	title insurance in this state which, during the 3 years
2509	immediately preceding its application for a certificate of
2510	authority, has violated any of the insurance laws of this state
2511	and after being informed of such violation has failed to correct
2512	the same; except that, if all other requirements are met, the
2513	department may nevertheless issue a certificate of authority to
2514	such an insurer upon the filing by the insurer of a sworn
2515	statement of all such insurance so written in violation of law,
2516	and upon payment to the department of a sum of money as
2517	additional filing fee equivalent to all premium taxes and other
2518	state taxes and fees as would have been payable by the insurer
2519	if such insurance had been lawfully written by an authorized
2520	insurer under the laws of this state. This fee, when collected,
2521	shall be deposited to the credit of the Title Insurance
2522	Regulatory Trust Fund.
2523	(6)  Nothing in this chapter shall be deemed to prohibit
2524	the granting and continuance of a certificate of authority to a
2525	domestic title insurer organized as a business trust, if the
2526	declaration of trust of such insurer was filed in the department
2527	of the Secretary of State prior to January 1, 1959, and if the
2528	insurer otherwise meets the applicable requirements of this
2529	chapter. Such an insurer may hereinafter in this chapter be
2530	referred to as a "business trust insurer."
2531	(7)  For the purpose of satisfying the requirements of ss.
2532	637.2004 and 637.2007, the investment portfolio of an insurer
2533	applying for an initial certificate of authority to do business
2534	in this state shall value its bonds and stocks in accordance
2535	with the provisions of the latest edition of the publication
2536	"Purposes and Procedures Manual of the NAIC Securities Valuation
2537	Office" by the National Association of Insurance Commissioners,
2538	July 1, 2002, and subsequent amendments thereto, if the
2539	valuation methodology remains substantially unchanged.
2540	637.20035  Structure of title insurers.-Except as to
2541	domestic business trust title insurers as referred to in s.
2542	637.2003(6) authorized prior to July 1, 2010, a title insurer
2543	shall be a stock insurer.
2544	637.2004  Capital funds required; new insurers.-
2545	(1)  To receive authority to transact title insurance, an
2546	insurer applying for its original certificate of authority in
2547	this state after the effective date of this section shall
2548	possess surplus as to policyholders not less than the greater of
2549	$2.5 million or 10 percent of the insurer's total liabilities;
2550	however, no insurer shall be required under this subsection to
2551	have surplus as to policyholders greater than $100 million.
2552	(2)  The requirements of this section shall be based upon
2553	all the kinds of insurance actually transacted or to be
2554	transacted by the insurer in any and all areas in which it
2555	operates, whether or not only a portion of such kinds are to be
2556	transacted in this state.
2557	(3)  As to surplus as to policyholders required for
2558	qualification to transact one or more kinds of insurance,
2559	domestic mutual insurers are governed by chapter 628, and
2560	domestic reciprocal insurers are governed by chapter 629.
2561	(4)  For the purposes of this section, liabilities shall
2562	not include liabilities required under s. 625.041(4). For
2563	purposes of computing minimum surplus as to policyholders
2564	pursuant to s. 625.305(1), liabilities shall include liabilities
2565	required under s. 625.041(4).
2566	(5)  The provisions of this section, as amended by this
2567	act, shall apply only to insurers applying for a certificate of
2568	authority on or after the effective date of this act.
2569	637.2005  Restrictions on insurers that are wholly owned
2570	subsidiaries of insurers to do business in state.-Effective
2571	December 31, 2010, and notwithstanding any other provision of
2572	law:
2573	(1)  A new certificate of authority for the transaction of
2574	title insurance may not be issued to any insurer domiciled in
2575	this state that is a wholly owned subsidiary of an insurer
2576	authorized to do business in any other state.
2577	(2)  The rate filings of any insurer domiciled in this
2578	state that is a wholly owned subsidiary of an insurer authorized
2579	to do business in any other state shall include information
2580	relating to the profits of the parent company of the insurer
2581	domiciled in this state.
2582	637.2006  Officers and directors of insolvent insurers.-Any
2583	person who was an officer or director of an insurer doing
2584	business in this state and who served in that capacity within
2585	the 2-year period prior to the date the insurer became
2586	insolvent, for any insolvency that occurs on or after July 1,
2587	2002, may not thereafter serve as an officer or director of an
2588	insurer authorized in this state unless the officer or director
2589	demonstrates that his or her personal actions or omissions were
2590	not a significant contributing cause to the insolvency.
2591	637.2007  Surplus as to policyholders required; new and
2592	existing insurers.-
2593	(1)  To maintain a certificate of authority to transact
2594	title insurance, an insurer in this state shall at all times
2595	maintain surplus as to policyholders not less than the greater
2596	of $1.5 million or 10 percent of the insurer's total
2597	liabilities.
2598	(2)  For purposes of this section, liabilities shall not
2599	include liabilities required under s. 625.041(4). For purposes
2600	of computing minimum surplus as to policyholders pursuant to s.
2601	625.305(1), liabilities shall include liabilities required under
2602	s. 625.041(4).
2603	(3)  An insurer may not be required under this section to
2604	have surplus as to policyholders greater than $100 million.
2605	Section 6.  Section 625.330, Florida Statutes, is
2606	transferred, renumbered as section 627.20073, Florida Statutes,
2607	and amended to read:
2608	637.20073 625.330  Special investments by title insurer.-
2609	(1)  In addition to other investments eligible under this
2610	part, a title insurer may invest and have invested an amount not
2611	exceeding the greater of $300,000 or 50 percent of that part of
2612	its surplus as to policyholders which exceeds the minimum
2613	surplus required by s. 637.2007 624.408 in its abstract plant
2614	and equipment, in loans secured by mortgages on abstract plants
2615	and equipment, and, with the consent of the office, in stocks of
2616	abstract companies. If the insurer transacts kinds of insurance
2617	in addition to title insurance, for the purposes of this section
2618	its paid-in capital stock shall be prorated between title
2619	insurance and such other insurances upon the basis of the
2620	reserves maintained by the insurer for the various kinds of
2621	insurance; but the capital so assigned to title insurance may
2622	not shall in any no event be less than $100,000.
2623	(2)  Subsection (1) does not apply to a business trust
2624	insurer. Such an insurer may invest and have invested not
2625	exceeding the greater of $300,000 or 50 percent of its net trust
2626	fund in excess of the reserve provided for under s. 637.20075
2627	625.111 in abstract plants, stock in abstract companies, or
2628	corporations controlled by the business trust and created for
2629	developing and servicing abstract plants.
2630	(3)  Investments authorized by this section shall not be
2631	credited against the insurer's required unearned premium or
2632
2633	Section 7.  Section 625.111, Florida Statutes, is
2634	transferred, renumbered as section 637.20075, Florida Statutes,
2635	and amended to read:
2636	637.20075 625.111  Title insurance reserve.-
2637	(1)  In addition to an adequate reserve as to outstanding
2638	losses relating to known claims, as required under s. 625.041, a
2639	title insurer shall establish, segregate, and maintain a
2640	guaranty fund or unearned premium reserve as provided in this
2641	section. The sums required under this section to be reserved for
2642	unearned premiums on title guarantees and policies at all times
2643	and for all purposes shall be considered and constitute unearned
2644	portions of the original premiums and shall be charged as a
2645	reserve liability of such insurer in determining its financial
2646	condition. While such sums are so reserved, they shall be
2647	withdrawn from the use of the insurer for its general purposes,
2648	impressed with a trust in favor of the holders of title
2649	guarantees and policies, and held available for reinsurance of
2650	the title guarantees and policies in the event of the insolvency
2651	of the insurer. Nothing contained in this section precludes
2652	shall preclude such insurer from investing such reserve in
2653	investments authorized by law for such an insurer and the income
2654	from such invested reserve shall be included in the general
2655	income of the insurer to be used by such insurer for any lawful
2656	purpose.
2657	(2)(1)  For unearned premium reserves established on or
2658	after July 1, 1999, such unearned premium reserve shall consist
2659	of not less than an amount equal to the sum of:
2660	(a)  A reserve with respect to unearned premiums for
2661	policies written or title liability assumed in reinsurance
2662	before July 1, 1999, equal to the reserve established on June
2663	30, 1999, for those unearned premiums with such reserve being
2664	subsequently released as provided in subsection (3)(2). For
2665	domestic title insurers subject to this section, such amounts
2666	shall be calculated in accordance with provisions of law of this
2667	state in effect at the time the associated premiums were written
2668	or assumed and as amended prior to July 1, 1999.
2669	(b)  A total amount equal to 30 cents for each $1,000 of
2670	net retained liability for policies written or title liability
2671	assumed in reinsurance on or after July 1, 1999, with such
2672	reserve being subsequently released as provided in subsection
2673	(3)(2). For the purpose of calculating this reserve, the total
2674	of the net retained liability for all simultaneous issue
2675	policies covering a single risk shall be equal to the liability
2676	for the policy with the highest limit covering that single risk,
2677	net of any liability ceded in reinsurance.
2678	(c)  An additional amount, if deemed necessary by a
2679	qualified actuary, which shall be subsequently released as
2680	provided in subsection (3)(2). Using financial results as of
2681	December 31 of each year, all domestic title insurers shall
2682	obtain a Statement of Actuarial Opinion from a qualified actuary
2683	regarding the insurer's loss and loss adjustment expense
2684	reserves, including reserves for known claims, adverse
2685	development on known claims, incurred but not reported claims,
2686	and unallocated loss adjustment expenses. The actuarial opinion
2687	shall conform to the annual statement instructions for title
2688	insurers adopted by the National Association of Insurance
2689	Commissioners and shall include the actuary's professional
2690	opinion of the insurer's reserves as of the date of the annual
2691	statement. If the amount of the reserve stated in the opinion
2692	and displayed in Schedule P of the annual statement for that
2693	reporting date is greater than the sum of the known claim
2694	reserve and unearned premium reserve as calculated under this
2695	section, as of the same reporting date and including any
2696	previous actuarial provisions added at earlier dates, the
2697	insurer shall add to the insurer's unearned premium reserve an
2698	actuarial amount equal to the reserve shown in the actuarial
2699	opinion, minus the known claim reserve and the unearned premium
2700	reserve, as of the current reporting date and calculated in
2701	accordance with this section, but in no event calculated as of
2702	any date prior to December 31, 1999. The comparison shall be
2703	made using that line on Schedule P displaying the Total Net Loss
2704	and Loss Adjustment Expense which is comprised of the Known
2705	Claim Reserve, and any associated Adverse Development Reserve,
2706	the reserve for Incurred But Not Reported Losses, and
2707	Unallocated Loss Adjustment Expenses.
2708	(3)(2)(a)  With respect to the reserve established in
2709	accordance with paragraph (2)(1)(a), the domestic title insurer
2710	shall release the reserve over a period of 20 subsequent years
2711	as provided in this paragraph. The insurer shall release 30
2712	percent of the initial aggregate sum during 1999, with one
2713	quarter of that amount being released on March 31, June 30,
2714	September 30, and December 31, 1999, with the March 31 and June
2715	30 releases to be retroactive and reflected on the September 30
2716	financial statements. Thereafter, the insurer shall release, on
2717	the same quarterly basis as specified for reserves released
2718	during 1999, a percentage of the initial aggregate sum as
2719	follows: 15 percent during calendar year 2000, 10 percent during
2720	each of calendar years 2001 and 2002, 5 percent during each of
2721	calendar years 2003 and 2004, 3 percent during each of calendar
2722	years 2005 and 2006, 2 percent during each of calendar years
2723	2007-2013, and 1 percent during each of calendar years 2014-
2724	2018.
2725	(b)  With respect to reserves established in accordance
2726	with paragraph (2)(1)(b), the unearned premium for policies
2727	written or title liability assumed during a particular calendar
2728	year shall be earned, and released from reserve, over a period
2729	of 20 subsequent years as provided in this paragraph. The
2730	insurer shall release 30 percent of the initial sum during the
2731	year next succeeding the year the premium was written or
2732	assumed, with one quarter of that amount being released on March
2733	31, June 30, September 30, and December 31 of such year.
2734	Thereafter, the insurer shall release, on the same quarterly
2735	basis as specified for reserves released during the year first
2736	succeeding the year the premium was written or assumed, a
2737	percentage of the initial sum as follows: 15 percent during the
2738	next succeeding year, 10 percent during each of the next
2739	succeeding 2 years, 5 percent during each of the next succeeding
2740	2 years, 3 percent during each of the next succeeding 2 years, 2
2741	percent during each of the next succeeding 7 years, and 1
2742	percent during each of the next succeeding 5 years.
2743	(c)  With respect to reserves established in accordance
2744	with paragraph (2)(1)(c), any additional amount established in
2745	any calendar year shall be released in the years subsequent to
2746	its establishment as provided in paragraph (b), with the timing
2747	and percentage of releases being in all respects identical to
2748	those of unearned premium reserves that are calculated as
2749	provided in paragraph (b) and established with regard to
2750	premiums written or liability assumed in reinsurance in the same
2751	year as the year in which any additional amount was originally
2752	established.
2753	(4)(3)  At any reporting date, the amount of the required
2754	releases of existing unearned premium reserves under subsection
2755	(3)(2) shall be calculated and deducted from the total unearned
2756	premium reserve before any additional amount is established for
2757	the current calendar year in accordance with the provisions of
2758	paragraph (2)(1)(c).
2759	(5)(4)  As used in this section:
2760	(a)  "Net retained liability" means the total liability
2761	retained by a title insurer for a single risk, after taking into
2762	account the deduction for ceded liability, if any.
2763	(b)  "Qualified actuary" means a person who is, as detailed
2764	in the National Association of Insurance Commissioners' Annual
2765	Statement Instructions:
2766	1.  A member in good standing of the Casualty Actuarial
2767	Society;
2768	2.  A member in good standing of the American Academy of
2769	Actuaries who has been approved as qualified for signing
2770	casualty loss reserve opinions by the Casualty Practice Council
2771	of the American Academy of Actuaries; or
2772	3.  A person who otherwise has competency in loss reserve
2773	evaluation as demonstrated to the satisfaction of the insurance
2774	regulatory official of the domiciliary state. In such case, at
2775	least 90 days prior to the filing of its annual statement, the
2776	insurer must request approval that the person be deemed
2777	qualified and that request must be approved or denied. The
2778	request must include the National Association of Insurance
2779	Commissioners' Biographical Form and a list of all loss reserve
2780	opinions issued in the last 3 years by this person.
2781	(c)  "Single risk" means the insured amount of any title
2782	insurance policy, except that where two or more title insurance
2783	policies are issued simultaneously covering different estates in
2784	the same real property, "single risk" means the sum of the
2785	insured amounts of all such title insurance policies. Any title
2786	insurance policy insuring a mortgage interest, a claim payment
2787	under which reduces the insured amount of a fee or leasehold
2788	title insurance policy, shall be excluded in computing the
2789	amount of a single risk to the extent that the insured amount of
2790	the mortgage title insurance policy does not exceed the insured
2791	amount of the fee or leasehold title insurance policy.
2792	Section 8.  Sections 637.2008, 637.2009, 637.2011,
2793	637.2012, 637.2013, 637.2014, 637.2015, 637.2016, 637.2017,
2794	637.2018, 637.2019, 637.2021, 637.2022, 637.2023, 637.2024,
2795	637.2025, 637.2026, 637.2027, 637.2028, 637.2029, 637.2031,
2796	637.2032, 637.2033, 637.2034, 637.2035, 637.2036, 637.2037,
2797	637.2038, 637.2039, 637.2041, 637.2042, 637.2043, 637.2046,
2798	637.2047, and 637.2048, Florida Statutes, are created to read:
2799	637.2008  Premiums written; restrictions.-
2800	(1)  Whenever a title insurer's ratio of actual or
2801	projected annual written premiums as adjusted in accordance with
2802	subsection (4) to current or projected surplus as to
2803	policyholders as adjusted in accordance with subsection (6)
2804	exceeds 10 to 1 for gross written premiums or exceeds 4 to 1 for
2805	net written premiums, the department shall suspend the insurer's
2806	certificate of authority or establish by order maximum gross or
2807	net annual premiums to be written by the insurer consistent with
2808	maintaining the ratios specified herein unless the insurer
2809	demonstrates to the department's satisfaction that exceeding the
2810	ratios of this section does not endanger the financial condition
2811	of the insurer or endanger the interests of the insurer's
2812	policyholders.
2813	(2)  Projected annual net or gross premiums shall be based
2814	on the actual writings to date for the title insurer's current
2815	calendar year or the insurer's writings for the previous
2816	calendar year or both. Ratios shall be computed on an annualized
2817	basis.
2818	(3)  For the purposes of this section, gross premiums
2819	written means direct premiums written and reinsurance assumed.
2820	(4)  For the purposes of this section, for each calendar
2821	year premiums shall be calculated as the product of the actual
2822	or projected premiums and 1.00.
2823	637.2009  Deposit requirement; domestic title insurers and
2824	foreign title insurers.-
2825	(1)  As to domestic title insurers, the department shall
2826	not issue or permit to exist a certificate of authority unless
2827	such insurer has deposited and maintains deposited in trust for
2828	the protection of the insurer's policyholders or its
2829	policyholders and creditors with the department securities
2830	eligible for such deposit under s. 625.52, having at all times a
2831	value of not less than $100,000.
2832	(2)  As to foreign title insurers, the department, upon
2833	issuing or permitting to exist a certificate of authority, may
2834	require for good cause a deposit and maintenance of the deposit
2835	in trust for the protection of the insured's policyholders or
2836	its policyholders and creditors with the department securities
2837	eligible for such deposit under s. 625.52, having at all times a
2838	value of not less than $100,000 A foreign insurer with surplus
2839	as to policyholders of more than $10 million according to its
2840	latest annual statement shall not be required to make a deposit
2841	under this subsection.
2842	(3)  Whenever the department determines that the financial
2843	condition of a title insurer has deteriorated or that the
2844	policyholders' best interests are not being preserved by the
2845	activities of an insurer, the department may require such
2846	insurer to deposit and maintain deposited in trust with the
2847	department for the protection of the insurer's policyholders or
2848	its policyholders and creditors, for such time as the department
2849	deems necessary, securities eligible for such deposit under s.
2850	625.52, having a market value of not less than the amount which
2851	the department determines is necessary, which amount shall be
2852	not less than $100,000, or more than 25 percent of the insurer's
2853	obligations in this state, as determined from the latest annual
2854	financial statement of the insured. The deposit required under
2855	this subsection shall not exceed $2 million and is in addition
2856	to any other deposits required of an insurer pursuant to
2857	subsections (1) and (2) or any other provisions of this chapter.
2858	(4)  All such deposits in this state are subject to the
2859	applicable provisions of part III of chapter 625.
2860	637.2011  Deposit of alien insurers.-
2861	(1)  An alien title insurer may not transact insurance in
2862	this state unless it has and maintains within the United States
2863	as trust deposits with public officials having supervision over
2864	insurers, or with trustees, public depositories, or trust
2865	institutions approved by the department, assets available for
2866	discharge of its United States insurance obligations, which
2867	assets shall be in amount not less than the outstanding reserves
2868	and other liabilities of the insurer arising out of its
2869	insurance transactions in the United States together with the
2870	amount of surplus as to policyholders required by s. 637.2007 of
2871	a domestic stock insurer transacting like kinds of insurance.
2872	(2)  Any such deposit made in this state shall be held for
2873	the protection of the insurer's policyholders or policyholders
2874	and creditors in the United States and shall be subject to the
2875	applicable provisions of part III of chapter 625 and chapter
2876	630.
2877	637.2012  Application for certificate of authority.-
2878	(1)  To apply for a certificate of authority, a title
2879	insurer shall file its application therefor with the department,
2880	upon a form adopted by the department and furnished by the
2881	department, showing its name; location of its home office and,
2882	if an alien insurer, its principal office in the United States;
2883	kinds of insurance to be transacted; state or country of
2884	domicile; and such additional information as the department
2885	reasonably requires, together with the following documents:
2886	(a)  One copy of its corporate charter, articles of
2887	incorporation, existing and proposed nonfacultative reinsurance
2888	contracts, declaration of trust, or other charter documents,
2889	with all amendments thereto, certified by the public official
2890	with whom the originals are on file in the state or country of
2891	domicile.
2892	(b)  If a mutual insurer, a copy of its bylaws, as amended,
2893	certified by its secretary or other officer having custody
2894	thereof.
2895	(c)  If a foreign or alien reciprocal insurer, a copy of
2896	the power of attorney of its attorney in fact and of its
2897	subscribers' agreement, if any, certified by the attorney in
2898	fact; and, if a domestic reciprocal insurer, the declaration
2899	provided for in s. 629.081.
2900	(d)  A copy of its financial statement as of December 31
2901	next preceding, containing information generally included in
2902	insurer financial statements prepared in accordance with
2903	generally accepted insurance accounting principles and practices
2904	and in a form generally utilized by insurers for financial
2905	statements, sworn to by at least two executive officers of the
2906	insurer, or certified by the public official having supervision
2907	of insurance in the insurer's state of domicile or of entry into
2908	the United States. To facilitate uniformity in financial
2909	statements, the department may by rule adopt the form for
2910	financial statements approved by the National Association of
2911	Insurance Commissioners in 2002, and may adopt subsequent
2912	amendments thereto if the form remains substantially consistent.
2913	(e)  Supplemental quarterly financial statements for each
2914	calendar quarter since the beginning of the year of its
2915	application for the certificate of authority, sworn to by at
2916	least two of its executive officers. To facilitate uniformity in
2917	financial statements, the department may by rule adopt the form
2918	for quarterly financial statements approved by the National
2919	Association of Insurance Commissioners in 2002, and may adopt
2920	subsequent amendments thereto if the form remains substantially
2921	consistent.
2922	(f)  If a foreign or alien insurer, a copy of the report of
2923	the most recent examination of the insurer certified by the
2924	public official having supervision of insurance in its state of
2925	domicile or of entry into the United States. The end of the most
2926	recent year covered by the examination must be within the 3-year
2927	period preceding the date of application. In lieu of the
2928	certified examination report, the department may accept an
2929	audited certified public accountant's report prepared on a basis
2930	consistent with the insurance laws of the insurer's state of
2931	domicile, certified by the public official having supervision of
2932	insurance in its state of domicile or of entry into the United
2933	States.
2934	(g)  If a foreign or alien insurer, a certificate of
2935	compliance from the public official having supervision of
2936	insurance in its state or country of domicile showing that it is
2937	duly organized and authorized to transact insurance therein and
2938	the kinds of insurance it is so authorized to transact.
2939	(h)  If a foreign or alien insurer, a certificate of the
2940	public official having custody of any deposit maintained by the
2941	insurer in another state in lieu of a deposit or part thereof
2942	required in this state under s. 637.2009 or s. 637.2011, showing
2943	the amount of such deposit and the assets or securities of which
2944	comprised.
2945	(i)  If an alien insurer, a copy of the appointment and
2946	authority of its United States manager, certified by its officer
2947	having custody of its records.
2948	(2)  The application shall be accompanied by the applicable
2949	fees and license tax as specified in s. 637.2031.
2950	637.2013  Redomestication.-The department shall adopt rules
2951	establishing procedures and forms for a foreign title insurer to
2952	apply for a certificate of authority as a domestic title
2953	insurer.
2954	637.2014  Issuance or refusal of authority.-The fee for
2955	filing application for a certificate of authority shall not be
2956	subject to refund. The department shall issue to the applicant
2957	title insurer a proper certificate of authority if it finds that
2958	the insurer has met the requirements of this chapter, exclusive
2959	of the requirements relative to the filing and approval of an
2960	insurer's policy forms, riders, endorsements, applications, and
2961	rates. If it does not so find, the department shall issue its
2962	order refusing the certificate. The certificate, if issued,
2963	shall specify the kind or kinds and line or lines of insurance
2964	the insurer is authorized to transact in this state. The
2965	issuance of a certificate of authority does not signify that an
2966	insurer has met the requirements of this chapter relative to the
2967	filing and approval of an insurer's policy forms, riders,
2968	endorsements, applications, and rates which may be required
2969	prior to an insurer actually writing any premiums.
2970	637.2015  Ownership of certificate of authority; return.-
2971	Although issued to the insurer, the certificate of authority is
2972	at all times the property of this state. Upon any expiration,
2973	suspension, or termination thereof, the insurer shall promptly
2974	deliver the certificate of authority to the department.
2975	637.2016  Continuance, expiration, reinstatement, and
2976	amendment of certificate of authority.-
2977	(1)  A certificate of authority issued under this chapter
2978	shall continue in force as long as the insurer is entitled
2979	thereto under this chapter and until suspended, revoked, or
2980	terminated at the request of the insurer; subject, however, to
2981	continuance of the certificate by the insurer each year by:
2982	(a)  Payment prior to June 1 of the annual license tax
2983	provided for in s. 637.2031(3);
2984	(b)  Due filing by the insurer of its annual statement for
2985	the calendar year preceding as required under s. 637.2024; and
2986	(c)  Payment by the insurer of applicable taxes with
2987	respect to the preceding calendar year as required under this
2988	chapter.
2989	(2)  If not so continued by the insurer, its certificate of
2990	authority shall expire at midnight on the May 31 next following
2991	such failure of the insurer so to continue it in force. The
2992	department shall promptly notify the insurer of the occurrence
2993	of any failure resulting in impending expiration of its
2994	certificate of authority.
2995	(3)  The department may, in its discretion, reinstate a
2996	certificate of authority which the insurer has inadvertently
2997	permitted to expire, after the insurer has fully cured all its
2998	failures which resulted in the expiration, and upon payment by
2999	the insurer of the fee for reinstatement, in the amount provided
3000	in s. 637.2031(1)(b). Otherwise, the insurer shall be granted
3001	another certificate of authority only after filing application
3002	therefor and meeting all other requirements as for an original
3003	certificate of authority in this state.
3004	(4)  The department may amend a certificate of authority at
3005	any time to accord with changes in the insurer's charter or
3006	insuring powers.
3007	637.2017  Suspension, revocation of certificate of
3008	authority for violations and special grounds.-
3009	(1)  The department shall suspend or revoke a title
3010	insurer's certificate of authority if it finds that the insurer:
3011	(a)  Is in unsound financial condition.
3012	(b)  Is using such methods and practices in the conduct of
3013	its business as to render its further transaction of insurance
3014	in this state hazardous or injurious to its policyholders or to
3015	the public.
3016	(c)  Has failed to pay any final judgment rendered against
3017	it in this state within 60 days after the judgment became final.
3018	(d)  No longer meets the requirements for the authority
3019	originally granted.
3020	(2)  The department may, in its discretion, suspend or
3021	revoke the certificate of authority of an insurer if it finds
3022	that the insurer:
3023	(a)  Has violated any lawful order or rule of the
3024	department or any provision of this chapter.
3025	(b)  Has refused to be examined or to produce its accounts,
3026	records, and files for examination, or if any of its officers
3027	have refused to give information with respect to its affairs or
3028	to perform any other legal obligation as to such examination,
3029	when required by the department.
3030	(c)  Has for any line, class, or combination thereof, with
3031	such frequency as to indicate its general business practice in
3032	this state, without just cause refused to pay proper claims
3033	arising under its policies, whether any such claim is in favor
3034	of an insured or is in favor of a third person with respect to
3035	the liability of an insured to such third person, or without
3036	just cause compels such insureds or claimants to accept less
3037	than the amount due them or to employ attorneys or to bring suit
3038	against the insurer or such an insured to secure full payment or
3039	settlement of such claims.
3040	(d)  Is affiliated with and under the same general
3041	management or interlocking directorate or ownership as another
3042	insurer which transacts direct insurance in this state without
3043	having a certificate of authority therefor, except as permitted
3044	as to surplus lines insurers under part VIII of chapter 626.
3045	(e)  Has been convicted of, or entered a plea of guilty or
3046	nolo contendere to, a felony relating to the transaction of
3047	insurance, in this state or in any other state, without regard
3048	to whether adjudication was withheld.
3049	(f)  Has a ratio of net premiums written to surplus as to
3050	policyholders that exceeds 4 to 1, and the department has reason
3051	to believe that the financial condition of the insurer endangers
3052	the interests of the policyholders. The ratio of net premiums
3053	written to surplus as to policyholders shall be on an annualized
3054	actual or projected basis. The ratio shall be based on the
3055	insurer's current calendar year activities and experience to
3056	date or the insurer's previous calendar year activities and
3057	experience, or both, and shall be calculated to represent a 12-
3058	month period. However, the provisions of this paragraph do not
3059	apply to any insurance or insurer exempted from s. 637.2008.
3060	(g)  Is under suspension or revocation in another state.
3061	(3)  The insolvency or impairment of an insurer constitutes
3062	an immediate serious danger to the public health, safety, or
3063	welfare; and the department may, at its discretion, without
3064	prior notice and the opportunity for hearing immediately suspend
3065	the certificate of authority of an insurer upon a determination
3066	that:
3067	(a)  The insurer is impaired or insolvent; or
3068	(b)  Receivership, conservatorship, rehabilitation, or
3069	other delinquency proceedings have been initiated against the
3070	insurer by the public insurance supervisory official of any
3071	state.
3072	637.2018  Order, notice of suspension or revocation of
3073	certificate of authority; effect; publication.-
3074	(1)  Suspension or revocation of a title insurer's
3075	certificate of authority shall be by the order of the
3076	department. The department shall promptly also give notice of
3077	such suspension or revocation to the insurer's agents in this
3078	state of record. The insurer shall not solicit or write any new
3079	coverages in this state during the period of any such suspension
3080	and may renew coverages only upon a finding by the department
3081	that the insurer is capable of servicing the renewal coverage.
3082	The insurer shall not solicit or write any new or renewal
3083	coverages after any such revocation.
3084	(2)  In its discretion, the department may cause notice of
3085	any such suspension or revocation to be published in one or more
3086	newspapers of general circulation published in this state.
3087	637.2019  Duration of suspension; insurer's obligations
3088	during suspension period; reinstatement.-
3089	(1)  Suspension of a title insurer's certificate of
3090	authority shall be for:
3091	(a)  A fixed period of time not to exceed 2 years; or
3092	(b)  Until the occurrence of a specific event necessary for
3093	remedying the reasons for suspension.
3094
3095	Such suspension may be modified, rescinded, or reversed.
3096	(2)  During the period of suspension, the insurer shall
3097	file with the department all documents and information and pay
3098	all license fees and taxes as required under this chapter as if
3099	the certificate had continued in full force.
3100	(3)  If the suspension of the certificate of authority is
3101	for a fixed period of time and the certificate of authority has
3102	not been otherwise terminated, upon expiration of the suspension
3103	period the insurer's certificate of authority shall be
3104	reinstated unless the department finds that the insurer is not
3105	in compliance with the requirements of this chapter. The
3106	department shall promptly notify the insurer of such
3107	reinstatement, and the insurer shall not consider its
3108	certificate of authority reinstated until so notified by the
3109	department. If not reinstated, the certificate of authority
3110	shall be deemed to have expired as of the end of the suspension
3111	period or upon failure of the insurer to continue the
3112	certificate during the suspension period in accordance with
3113	subsection (2), whichever event first occurs.
3114	(4)  If the suspension of the certificate of authority was
3115	until the occurrence of a specific event or events and the
3116	certificate of authority has not been otherwise terminated, upon
3117	the presentation of evidence satisfactory to the department that
3118	the specific event or events have occurred, the insurer's
3119	certificate of authority shall be reinstated unless the
3120	department finds that the insurer is otherwise not in compliance
3121	with the requirements of this chapter. The department shall
3122	promptly notify the insurer of such reinstatement, and the
3123	insurer shall not consider its certificate of authority
3124	reinstated until so notified by the department. If satisfactory
3125	evidence as to the occurrence of the specific event or events
3126	has not been presented to the department within 2 years of the
3127	date of such suspension, the certificate of authority shall be
3128	deemed to have expired as of 2 years from the date of suspension
3129	or upon failure of the insurer to continue the certificate
3130	during the suspension period in accordance with subsection (2),
3131	whichever first occurs.
3132	(5)  Upon reinstatement of the insurer's certificate of
3133	authority, the authority of its agents in this state to
3134	represent the insurer shall likewise reinstate. The department
3135	shall promptly notify the insurer of such reinstatement.
3136	637.2021  Administrative fine in lieu of suspension or
3137	revocation.-
3138	(1)  If the department finds that one or more grounds exist
3139	for the discretionary revocation or suspension of a certificate
3140	of authority issued under this chapter, the department may, in
3141	lieu of such revocation or suspension, impose a fine upon the
3142	title insurer.
3143	(2)  With respect to any nonwillful violation, such fine
3144	shall not exceed $2,500 per violation. In no event shall such
3145	fine exceed an aggregate amount of $10,000 for all nonwillful
3146	violations arising out of the same action. When an insurer
3147	discovers a nonwillful violation, the insurer shall correct the
3148	violation and, if restitution is due, make restitution to all
3149	affected persons. Such restitution shall include interest at 12
3150	percent per year from either the date of the violation or the
3151	date of inception of the affected person's policy, at the
3152	insurer's option. The restitution may be a credit against future
3153	premiums due provided that the interest shall accumulate until
3154	the premiums are due. If the amount of restitution due to any
3155	person is $50 or more and the insurer wishes to credit it
3156	against future premiums, it shall notify such person that she or
3157	he may receive a check instead of a credit. If the credit is on
3158	a policy which is not renewed, the insurer shall pay the
3159	restitution to the person to whom it is due.
3160	(3)  With respect to any knowing and willful violation of a
3161	lawful order or rule of the department or a provision of this
3162	chapter, the department may impose a fine upon the insurer in an
3163	amount not to exceed $20,000 for each such violation. In no
3164	event shall such fine exceed an aggregate amount of $100,000 for
3165	all knowing and willful violations arising out of the same
3166	action. In addition to such fines, such insurer shall make
3167	restitution when due in accordance with the provisions of
3168	subsection (2).
3169	(4)  The failure of an insurer to make restitution when due
3170	as required under this section constitutes a willful violation
3171	of this chapter. However, if an insurer in good faith is
3172	uncertain as to whether any restitution is due or as to the
3173	amount of such restitution, it shall promptly notify the
3174	department of the circumstances; and the failure to make
3175	restitution pending a determination thereof shall not constitute
3176	a violation of this chapter.
3177	637.2022  Service of process; appointment of Chief
3178	Financial Officer as process agent.-
3179	(1)  Each licensed title insurer, whether domestic,
3180	foreign, or alien, shall be deemed to have appointed the Chief
3181	Financial Officer and her or his successors in department as its
3182	attorney to receive service of all legal process issued against
3183	it in any civil action or proceeding in this state; and process
3184	so served shall be valid and binding upon the insurer.
3185	(2)  Prior to its authorization to transact insurance in
3186	this state, each insurer shall file with the department
3187	designation of the name and address of the person to whom
3188	process against it served upon the Chief Financial Officer is to
3189	be forwarded. The insurer may change the designation at any time
3190	by a new filing.
3191	(3)  Service of process upon the Chief Financial Officer as
3192	the insurer's attorney pursuant to such an appointment shall be
3193	the sole method of service of process upon an authorized
3194	domestic, foreign, or alien insurer in this state.
3195	637.2023  Serving process.-
3196	(1)  Service of process upon the Chief Financial Officer as
3197	process agent of the title insurer under s. 637.2022 shall be
3198	made by serving copies in triplicate of the process upon the
3199	Chief Financial Officer or upon her or his assistant, deputy, or
3200	other person in charge of her or his office. Upon receiving such
3201	service, the Chief Financial Officer shall file one copy in her
3202	or his office, return one copy with her or his admission of
3203	service, and promptly forward one copy of the process by
3204	registered or certified mail to the person last designated by
3205	the insurer to receive the same, as provided under s.
3206	637.2022(2).
3207	(2)  When process is served upon the Chief Financial
3208	Officer as an insurer's process agent, the insurer shall not be
3209	required to answer or plead except within 20 days after the date
3210	upon which the Chief Financial Officer mailed a copy of the
3211	process served upon her or him as required by subsection (1).
3212	(3)  Process served upon the Chief Financial Officer and
3213	copy thereof forwarded as in this section provided shall for all
3214	purposes constitute valid and binding service thereof upon the
3215	insurer.
3216	637.2024  Annual statement and other information.-
3217	(1)(a)  Each authorized title insurer shall file with the
3218	department full and true statements of its financial condition,
3219	transactions, and affairs. An annual statement covering the
3220	preceding calendar year shall be filed on or before March 1, and
3221	quarterly statements covering the periods ending on March 31,
3222	June 30, and September 30 shall be filed within 45 days after
3223	each such date. The department may, for good cause, grant an
3224	extension of time for filing of an annual or quarterly
3225	statement. The statements shall contain information generally
3226	included in insurers' financial statements prepared in
3227	accordance with generally accepted insurance accounting
3228	principles and practices and in a form generally utilized by
3229	insurers for financial statements, sworn to by at least two
3230	executive officers of the insurer or, if a reciprocal insurer,
3231	by the oath of the attorney in fact or its like officer if a
3232	corporation. To facilitate uniformity in financial statements
3233	and to facilitate department analysis, the department may by
3234	rule adopt the form for financial statements approved by the
3235	National Association of Insurance Commissioners in 2002, and may
3236	adopt subsequent amendments thereto if the methodology remains
3237	substantially consistent, and may by rule require each insurer
3238	to submit to the department or such organization as the
3239	department may designate all or part of the information
3240	contained in the financial statement in a computer-readable form
3241	compatible with the electronic data processing system specified
3242	by the department.
3243	(b)  The department may by rule require reports or filings
3244	required under this chapter to be submitted by electronic means
3245	in a computer-readable form compatible with the electronic data
3246	processing equipment specified by the department.
3247	(2)  The statement of an alien insurer shall be verified by
3248	the insurer's United States manager or other officer duly
3249	authorized. It shall be a separate statement, to be known as its
3250	general statement, of its transactions, assets, and affairs
3251	within the United States unless the department requires
3252	otherwise. If the department requires a statement as to the
3253	insurer's affairs elsewhere, the insurer shall file such
3254	statement with the department as soon as reasonably possible.
3255	(3)  At the time of filing, the insurer shall pay the fee
3256	for filing its annual statement in the amount specified in s.
3257	637.2031.
3258	(4)  The department may refuse to continue, or may suspend
3259	or revoke, the certificate of authority of an insurer failing to
3260	file its annual or quarterly statements and accompanying
3261	certificates when due.
3262	(5)  In addition to information called for and furnished in
3263	connection with its annual or quarterly statements, an insurer
3264	shall furnish to the department as soon as reasonably possible
3265	such information as to its transactions or affairs as the
3266	department may from time to time request in writing. All such
3267	information furnished pursuant to the department's request shall
3268	be verified by the oath of two executive officers of the insurer
3269	or, if a reciprocal insurer, by the oath of the attorney in fact
3270	or its like officers if a corporation.
3271	(6)  The signatures of all such persons when written on
3272	annual or quarterly statements or other reports required by this
3273	section shall be presumed to have been so written by authority
3274	of the person whose signature is affixed thereon. The affixing
3275	of any signature by anyone other than the purported signer
3276	constitutes a felony of the second degree, punishable as
3277	provided in s. 775.082, s. 775.083, or s. 775.084.
3278	(7)(a)  All authorized insurers must have conducted an
3279	annual audit by an independent certified public accountant and
3280	must file an audited financial report with the department on or
3281	before June 1 for the preceding year ending December 31. The
3282	department may require an insurer to file an audited financial
3283	report earlier than June 1 upon 90 days' advance notice to the
3284	insurer. The department may immediately suspend an insurer's
3285	certificate of authority by order if an insurer's failure to
3286	file required reports, financial statements, or information
3287	required by this subsection or rule adopted pursuant thereto
3288	creates a significant uncertainty as to the insurer's continuing
3289	eligibility for a certificate of authority.
3290	(b)  Any authorized insurer otherwise subject to this
3291	section having direct premiums written in this state of less
3292	than $1 million in any calendar year and fewer than 1,000
3293	policyholders or certificateholders of directly written policies
3294	nationwide at the end of such calendar year is exempt from this
3295	section for such year unless the department makes a specific
3296	finding that compliance is necessary in order for the department
3297	to carry out its statutory responsibilities. However, any
3298	insurer having assumed premiums pursuant to contracts or
3299	treaties or reinsurance of $1 million or more is not exempt. Any
3300	insurer subject to an exemption must submit by March 1 following
3301	the year to which the exemption applies an affidavit sworn to by
3302	a responsible officer of the insurer specifying the amount of
3303	direct premiums written in this state and number of
3304	policyholders or certificateholders.
3305	(c)  The board of directors of an insurer shall hire the
3306	certified public accountant that prepares the audit required by
3307	this subsection and the board shall establish an audit committee
3308	of three or more directors of the insurer or an affiliated
3309	company. The audit committee shall be responsible for discussing
3310	audit findings and interacting with the certified public
3311	accountant with regard to her or his findings. The audit
3312	committee shall be comprised solely of members who are free from
3313	any relationship that, in the opinion of its board of directors,
3314	would interfere with the exercise of independent judgment as a
3315	committee member. The audit committee shall report to the board
3316	any findings of adverse financial conditions or significant
3317	deficiencies in internal controls that have been noted by the
3318	accountant. The insurer may request the department to waive this
3319	requirement of the audit committee membership based upon unusual
3320	hardship to the insurer.
3321	(d)  An insurer may not use the same accountant or partner
3322	of an accounting firm responsible for preparing the report
3323	required by this subsection for more than 7 consecutive years.
3324	Following this period, the insurer may not use such accountant
3325	or partner for a period of 2 years, but may use another
3326	accountant or partner of the same firm. An insurer may request
3327	the department to waive this prohibition based upon an unusual
3328	hardship to the insurer and a determination that the accountant
3329	is exercising independent judgment that is not unduly influenced
3330	by the insurer considering such factors as the number of
3331	partners, expertise of the partners or the number of insurance
3332	clients of the accounting firm; the premium volume of the
3333	insurer; and the number of jurisdictions in which the insurer
3334	transacts business.
3335	(e)  The department shall adopt rules to implement this
3336	subsection, which rules must be in substantial conformity with
3337	the 1998 Model Rule Requiring Annual Audited Financial Reports
3338	adopted by the National Association of Insurance Commissioners,
3339	except where inconsistent with the requirements of this
3340	subsection. Any exception to, waiver of, or interpretation of
3341	accounting requirements of the department must be in writing and
3342	signed by an authorized representative of the department. No
3343	insurer may raise as a defense in any action, any exception to,
3344	waiver of, or interpretation of accounting requirements, unless
3345	previously issued in writing by an authorized representative of
3346	the department.
3347	637.2025  NAIC filing requirements.-
3348	(1)  Each domestic, foreign, and alien title insurer who is
3349	authorized to transact title insurance in this state shall file
3350	one extra copy of its annual statement convention blank, along
3351	with such additional filings as prescribed by the department for
3352	the preceding year. Such extra copy shall be for the explicit
3353	purpose of allowing the department to forward it to the National
3354	Association of Insurance Commissioners.
3355	(2)  Coincident with the filing of the documents required
3356	in subsection (1), each insurer shall pay to the department a
3357	reasonable fee to cover the costs associated with the filing and
3358	analysis of the documents by the National Association of
3359	Insurance Commissioners and the department.
3360	(3)  The provisions of this section shall not apply to any
3361	foreign, domestic, or alien insurer which has filed such
3362	documents directly with the National Association of Insurance
3363	Commissioners if the National Association of Insurance
3364	Commissioners has certified receipt of the required documents to
3365	the department.
3366	637.2026  Change in controlling interest of foreign or
3367	alien title insurer; report required.-In the event of a change
3368	in the controlling capital stock or a change of 50 percent or
3369	more of the assets of a foreign or alien title insurer, such
3370	insurer shall report such change in writing to the department
3371	within 30 days of the effective date thereof. The report shall
3372	contain the name and address of the new owner or owners of the
3373	controlling stock or assets, the nature and value of the new
3374	assets, and such other relevant information as the department
3375	may reasonably require. For the purposes of this section, the
3376	term "controlling capital stock" means a sufficient number of
3377	shares of the issued and outstanding capital stock of such
3378	insurer or person so as to give the owner thereof power to
3379	exercise a controlling influence over the management or policies
3380	of such insurer or person.
3381	637.2027  Withdrawal of title insurer or discontinuance of
3382	writing insurance.-
3383	(1)  Any title insurer desiring to surrender its
3384	certificate of authority, withdraw from this state, or
3385	discontinue the writing of title insurance in this state shall
3386	give 90 days' notice in writing to the department setting forth
3387	its reasons for such action. Any insurer who does not write any
3388	premiums within a calendar year shall have title insurance
3389	removed from its certificate of authority; however, such line of
3390	insurance shall be restored to the insurer's certificate upon
3391	the insurer demonstrating that it has available the expertise
3392	necessary and meets the other requirements of this chapter to
3393	write that line of insurance.
3394	(2)  If the department determines, based upon its review of
3395	the notice and other required information, that the plan of an
3396	insurer withdrawing from this state makes adequate provision for
3397	the satisfaction of the insurer's obligations and is not
3398	hazardous to policyholders or the public, the department shall
3399	approve the surrender of the insurer's certificate of authority.
3400	The department shall, within 45 days from receipt of a complete
3401	notice and all required or requested additional information,
3402	approve, disapprove, or approve with conditions the plan
3403	submitted by the insurer. Failure to timely take action with
3404	respect to the notice shall be deemed an approval of the
3405	surrender of the certificate of authority.
3406	(3)  Any insurer withdrawing from this state or
3407	discontinuing the writing of insurance in this state shall
3408	surrender its certificate of authority.
3409	(4)  This section does not apply to insurers during the
3410	calendar year in which they first receive their certificate of
3411	authority.
3412	(5)  This section does not apply to insurers who have
3413	discontinued writing in accordance with an order issued by the
3414	department.
3415	(6)  Notwithstanding subsection (5), any insurer desiring
3416	to surrender its certificate of authority, withdraw from this
3417	state, or discontinue the writing of insurance in this state is
3418	expected to have availed itself of all reasonably available
3419	reinsurance. Reasonably available reinsurance shall include
3420	unrealized reinsurance, which is defined as reinsurance
3421	recoverable on known losses incurred and due under valid
3422	reinsurance contracts that have not been identified in the
3423	normal course of business and have not been reported in
3424	financial statements filed with the department. Within 90 days
3425	after surrendering its certificate of authority, withdrawing
3426	from this state, or discontinuing the writing of any one or
3427	multiple kinds or lines of insurance in this state, the insurer
3428	shall certify to the department that the insurer has engaged an
3429	independent third party to search for unrealized reinsurance,
3430	and that the insurer has made all relevant books and records
3431	available to such third party. The compensation to such third
3432	party may be a percentage of unrealized reinsurance identified
3433	and collected.
3434	(7)  The department may adopt rules to administer this
3435	section.
3436	637.2028  Assets of title insurers; reporting
3437	requirements.-
3438	(1)  As used in this section, the term "material
3439	acquisition of assets" or "material disposition of assets" means
3440	one or more transactions occurring during any 30-day period
3441	which are nonrecurring and not in the ordinary course of
3442	business and involve more than 5 percent of the reporting title
3443	insurer's total admitted assets as reported in its most recent
3444	statutory statement filed with the insurance department of the
3445	insurer's state of domicile.
3446	(2)  Each domestic title insurer shall file a report with
3447	the department disclosing a material acquisition of assets, a
3448	material disposition of assets, or a material nonrenewal,
3449	cancellation, or revision of a ceded reinsurance agreement,
3450	unless the material acquisition or disposition of assets or the
3451	material nonrenewal, cancellation, or revision of a ceded
3452	reinsurance agreement has been submitted to the department for
3453	review, approval, or informational purposes under another
3454	section of this chapter or a rule adopted thereunder. A copy of
3455	the report and each exhibit or other attachment must be filed by
3456	the insurer with the National Association of Insurance
3457	Commissioners. The report required in this section is due within
3458	15 days after the end of the calendar month in which the
3459	transaction occurs.
3460	(3)  An immaterial acquisition or disposition of assets
3461	need not be reported under this section.
3462	(4)(a)  Acquisitions of assets which are subject to this
3463	section include each purchase, lease, exchange, merger,
3464	consolidation, succession, or other acquisition of assets. Asset
3465	acquisitions for the construction or development of real
3466	property by or for the reporting insurer and the acquisition of
3467	construction materials for this purpose are not subject to this
3468	section.
3469	(b)  Dispositions of assets which are subject to this
3470	section include each sale, lease, exchange, merger,
3471	consolidation, mortgage, hypothecation, assignment for the
3472	benefit of a creditor or otherwise, abandonment, destruction, or
3473	other disposition of assets.
3474	(5)(a)  The following information must be disclosed in any
3475	report of a material acquisition or disposition of assets:
3476	1.  The date of the transaction.
3477	2.  The manner of acquisition or disposition.
3478	3.  The description of the assets involved.
3479	4.  The nature and amount of the consideration given or
3480	received.
3481	5.  The purpose of, or reason for, the transaction.
3482	6.  The manner by which the amount of consideration was
3483	determined.
3484	7.  The gain or loss recognized or realized as a result of
3485	the transaction.
3486	8.  The name of the person from whom the assets were
3487	acquired or to whom they were disposed.
3488	(b)  Insurers must report material acquisitions or
3489	dispositions on a nonconsolidated basis unless the insurer is
3490	part of a consolidated group of insurers which uses a pooling
3491	arrangement or a 100-percent reinsurance agreement that affects
3492	the solvency and integrity of the insurer's reserves and the
3493	insurer has ceded substantially all of its direct and assumed
3494	business to the pool. An insurer is deemed to have ceded
3495	substantially all of its direct and assumed business to a pool
3496	if the insurer has less than $1 million in total direct and
3497	assumed written premiums during a calendar year which are not
3498	subject to a pooling arrangement and if the net income of the
3499	business which is not subject to the pooling arrangement
3500	represents less than 5 percent of the insurer's capital and
3501	surplus.
3502	(6)(a)  The following information must be disclosed in any
3503	report of a material nonrenewal, cancellation, or revision of a
3504	ceded reinsurance agreement:
3505	1.  The effective date of the nonrenewal, cancellation, or
3506	revision.
3507	2.  The description of the transaction and the
3508	identification of the initiator of the transaction.
3509	3.  The purpose of, or reason for, the transaction.
3510	4.  If applicable, the identity of each replacement
3511	reinsurer.
3512	(b)  Insurers shall report the material nonrenewal,
3513	cancellation, or revision of a ceded reinsurance agreement on a
3514	nonconsolidated basis unless the insurer is part of a
3515	consolidated group of insurers which uses a pooling arrangement
3516	or a 100-percent reinsurance agreement that affects the solvency
3517	and integrity of the insurer's reserves and the insurer has
3518	ceded substantially all of its direct and assumed business to
3519	the pool. An insurer is deemed to have ceded substantially all
3520	of its direct and assumed business to a pool if the insurer has
3521	less than $1 million in total direct and assumed written
3522	premiums during a calendar year which are not subject to a
3523	pooling arrangement and if the net income of the business not
3524	subject to the pooling arrangement represents less than 5
3525	percent of the insurer's capital and surplus.
3526	637.2029  Participation of financial institutions in
3527	reinsurance and in insurance exchanges.-Subject to applicable
3528	laws relating to financial institutions and to any other
3529	applicable provision of this chapter, any financial institution
3530	or aggregation of such institutions may own or control, directly
3531	or indirectly, any title insurer which is authorized or approved
3532	by the department, which insurer transacts only reinsurance in
3533	this state and which actively engages in reinsuring risks
3534	located in this state. Nothing in this section shall be deemed
3535	to prohibit a financial institution from engaging in any
3536	presently authorized insurance activity.
3537	637.2031  Filing, license, appointment, and miscellaneous
3538	fees.-The department shall collect in advance, and persons so
3539	served shall pay to it in advance, fees, licenses, and
3540	miscellaneous charges as follows:
3541	(1)  Certificate of authority of title insurer.
3542	(a)  Filing application for original certificate of
3543	authority or modification thereof as a result of a merger,
3544	acquisition, or change of controlling interest due to a sale or
3545	exchange of stock, including all documents required to be filed
3546	therewith, filing fee....$1,500.00
3547	(b)  Reinstatement fee....$50.00
3548	(2)  Charter documents of insurer.
3549	(a)  Filing articles of incorporation or other charter
3550	documents, other than at time of application for original
3551	certificate of authority, filing fee....$10.00
3552	(b)  Filing amendment to articles of incorporation or
3553	charter, other than at time of application for original
3554	certificate of authority, filing fee....$5.00
3555	(c)  Filing bylaws, when required, or amendments thereof,
3556	filing fee....$5.00
3557	(3)  Annual license tax of insurer, each domestic insurer,
3558	foreign insurer, and alien insurer (except that, as to fraternal
3559	benefit societies insuring less than 200 members in this state
3560	and the members of which as a prerequisite to membership possess
3561	a physical handicap or disability, such license tax shall be
3562	$25)....$1,000.00
3563	(4)  Statements of insurer, filing (except when filed as
3564	part of application for original certificate of authority),
3565	filing fees:
3566	(a)  Annual statement....$250.00
3567	(b)  Quarterly statement....$250.00
3568	(5)  All insurance representatives, application for
3569	license, each filing, filing fee....$50.00
3570	(6)  Examination-Fee to cover actual cost of examination.
3571	(7)  Temporary license and appointment as agent where
3572	expressly provided for, rate of fee for each month of the period
3573	for which the license and appointment is issued....$5.00
3574	(8)  Issuance, reissuance, reinstatement, modification
3575	resulting in a modified license being issued, duplicate copy of
3576	any insurance representative license, or an appointment being
3577	reinstated....$5.00
3578	(9)  Additional appointment continuation fees as prescribed
3579	in chapter 626....$5.00
3580	(10)  Filing application for permit to form insurer as
3581	referred to in chapter 628, filing fee....$25.00
3582	(11)  Annual license fee of rating organization, each
3583	domestic or foreign organization....$25.00
3584	(12)  Miscellaneous services:
3585	(a)  For copies of documents or records on file with the
3586	department, per page....$ .50
3587	(b)  For each certificate of the department, under its
3588	seal, authenticating any document or other instrument (other
3589	than a license or certificate of authority)....$5.00
3590	(c)  For preparing lists of agents and other insurance
3591	representatives, and for other miscellaneous services, such
3592	reasonable charge as may be fixed by the department.
3593	(d)  For processing requests for approval of continuing
3594	education courses, processing fee....$100.00
3595	(13)  Fingerprinting processing fee-Fee to cover
3596	fingerprint processing.
3597	(14)  Title insurance agents:
3598	(a)  Agent's original appointment or biennial renewal or
3599	continuation thereof, each insurer:
3600	Appointment fee....$42.00
3601	State tax....12.00
3602	County tax....6.00
3603	Total....$60.00
3604	(b)  Agency original appointment or biennial renewal or
3605	continuation thereof, each insurer:
3606	Appointment fee....$42.00
3607	State tax....12.00
3608	County tax....6.00
3609	Total....$60.00
3610	(c)  Filing for title insurance agent's license:
3611	Application for filing, each filing, filing fee....$10.00
3612	(d)  Additional appointment continuation fee as prescribed
3613	by s. 637.3015....$5.00
3614	(e)  Title insurer and title insurance agency
3615	administrative surcharge:
3616	1.  On or before January 30 of each calendar year, each
3617	title insurer shall pay to the department for each licensed
3618	title insurance agency appointed by the title insurer and for
3619	each retail office of the insurer on January 1 of that calendar
3620	year an administrative surcharge of $200.00.
3621	2.  On or before January 30 of each calendar year, each
3622	licensed title insurance agency shall remit to the department an
3623	administrative surcharge of $200.00.
3624
3625	The administrative surcharge may be used solely to defray the
3626	costs to the department in their examination or audit of title
3627	insurance agencies and retail offices of title insurers and to
3628	gather title insurance data for statistical purposes to be
3629	furnished to and used by the department in its regulation of
3630	title insurance.
3631	(15)  Late filing of appointment renewals for agents,
3632	adjusters, and other insurance representatives, each
3633	appointment....$20.00
3634	637.2032  Advance collection of fees and taxes; title
3635	insurers not to pay without reimbursement.-
3636	(1)  The department shall collect in advance from the
3637	applicant or licensee fees and taxes as provided in s. 637.2031.
3638	(2)  A title insurer shall not pay directly or indirectly
3639	without reimbursement from a title insurance agent any
3640	appointment fee required under this section. The failure of a
3641	title insurance agent to make reimbursement is not a ground for
3642	cancellation of the title insurance agent's appointment by the
3643	title insurer.
3644	637.2033  Service of process fee.-In all instances as
3645	provided in any section of this chapter and s. 48.151(3) in
3646	which service of process is authorized to be made upon the Chief
3647	Financial Officer , the plaintiff shall pay to the department a
3648	fee of $15 for such service of process, which fee shall be
3649	deposited into the Title Insurance Regulatory Trust Fund.
3650	637.2034  Liability for state, county tax.-Each authorized
3651	title insurer that uses insurance agents in this state shall be
3652	liable for and shall pay the state and county taxes required
3653	therefor under s. 637.2031 or s. 637.2035.
3654	637.2035  County tax; determination; additional offices;
3655	nonresident agents.-
3656	(1)  The county tax provided for under s. 637.2031 as to an
3657	agent shall be paid by each title insurer for each agent only
3658	for the county where the agent resides, or if such agent's place
3659	of business is located in a county other than that of her or his
3660	residence, then for the county wherein is located such place of
3661	business. If an agent maintains an office or place of business
3662	in more than one county, the tax shall be paid for her or him by
3663	each such insurer for each county wherein the agent represents
3664	such insurer and has a place of business. When under this
3665	subsection an insurer is required to pay county tax for an agent
3666	for a county or counties other than the agent's county of
3667	residence, the insurer shall designate the county or counties
3668	for which the taxes are paid.
3669	(2)  A county tax of $3 per year shall be paid by each
3670	insurer for each county in this state in which an agent who
3671	resides outside of this state represents and engages in person
3672	in the activities of an agent for the insurer. This provision
3673	shall not be deemed to authorize any activities by an agent
3674	which are otherwise prohibited under this chapter.
3675	637.2036  County tax; deposit and remittance.-
3676	(1)  The department shall deposit in the Agents County Tax
3677	Trust Fund all moneys accepted as county tax under this chapter.
3678	She or he shall keep a separate account for all moneys so
3679	collected for each county and, after deducting therefrom the
3680	service charges provided for in s. 215.20, shall remit the
3681	balance to the counties.
3682	(2)  The payment and collection of county tax under this
3683	chapter shall be in lieu of collection thereof by the respective
3684	county tax collectors.
3685	(3)  The Chief Financial Officer shall annually, as of
3686	January 1 following the date of collection, and thereafter at
3687	such other times as she or he may elect, draw her or his
3688	warrants on the State Treasury payable to the respective
3689	counties entitled to receive the same for the full net amount of
3690	such taxes to each county.
3691	637.2037  Municipal tax.-Municipal corporations may require
3692	a tax of title insurance agents not to exceed 50 percent of the
3693	state tax specified as to such agents under this chapter, and
3694	unless otherwise authorized by law. Such a tax may be required
3695	only by a municipal corporation within the boundaries of which
3696	is located the agent's business office, or if no such office is
3697	required under this chapter, by the municipal corporation of the
3698	agent's place of residence.
3699	637.2038  Insurer's license tax; when payable.-
3700	(1)  The title insurer's license tax provided for in s.
3701	637.2031(3) shall be paid by an insurer newly applying for a
3702	certificate of authority to transact insurance in this state
3703	prior to and contingent upon the issuance of its original
3704	certificate of authority. If the certificate of authority is not
3705	issued, the license tax payment shall be refunded to the
3706	insurer. The license tax so paid by a newly authorized insurer
3707	shall cover the period expiring on the June 1 following the date
3708	of its original certificate of authority.
3709	(2)  Each authorized title insurer shall pay the license
3710	tax annually on or before June 1.
3711	637.2039  Premium tax; rate and computation.-
3712	(1)  In addition to the license taxes provided for in this
3713	chapter, each title insurer shall also annually, and on or
3714	before March 1 in each year, pay to the Department of Revenue a
3715	tax on premiums for title insurance received during the
3716	preceding calendar year an amount equal to 1.75 percent of the
3717	gross amount of such receipts on account of all policies and
3718	covering property, subjects, or risks located, resident, or to
3719	be performed in this state, omitting premiums on reinsurance
3720	accepted, and less return premiums or assessments, but without
3721	deductions:
3722	(a)  For reinsurance ceded to other insurers;
3723	(b)  For moneys paid upon surrender of policies or
3724	certificates for cash surrender value.
3725	(2)  Payment by the insurer of the license taxes and
3726	premium receipts taxes provided for in this chapter is a
3727	condition precedent to doing business within this state.
3728	(3)  Notwithstanding other provisions of law, the
3729	distribution of the premium tax and any penalties or interest
3730	collected thereunder shall be made to the General Revenue Fund
3731	in accordance with rules adopted by the Department of Revenue
3732	and approved by the Administration Commission.
3733	(4)  The income tax imposed under chapter 220 and the
3734	emergency excise tax imposed under chapter 221 which are paid by
3735	any insurer shall be credited against, and to the extent thereof
3736	shall discharge, the liability for tax imposed by this section
3737	for the annual period in which such tax payments are made. For
3738	purposes of this subsection, payments of estimated income tax
3739	under chapter 220 and of estimated emergency excise tax under
3740	chapter 221 shall be deemed paid at the time the insurer
3741	actually files its annual returns under chapter 220 or at the
3742	time such returns are required to be filed, whichever first
3743	occurs, and not at such earlier time as such payments of
3744	estimated tax are actually made.
3745	(5)(a)1.  There shall be allowed a credit against the net
3746	tax imposed by this section equal to 15 percent of the amount
3747	paid by an insurer in salaries to employees located or based
3748	within this state and who are covered by the provisions of
3749	chapter 443.
3750	2.  As an alternative to the credit allowed in subparagraph
3751	1., an affiliated group of corporations which includes at least
3752	one insurance company writing premiums in this state may elect
3753	to take a credit against the net tax imposed by this section in
3754	an amount that may not exceed 15 percent of the salary of the
3755	employees of the affiliated group of corporations who perform
3756	insurance-related activities, are located or based within this
3757	state, and are covered by chapter 443. For purposes of this
3758	subparagraph, the term "affiliated group of corporations" means
3759	two or more corporations that are entirely owned directly or
3760	indirectly by a single corporation and that constitute an
3761	affiliated group as defined in s. 1504(a) of the Internal
3762	Revenue Code. The amount of credit allowed under this
3763	subparagraph is limited to the combined Florida salary tax
3764	credits allowed for all insurance companies that were members of
3765	the affiliated group of corporations for the tax year ending
3766	December 31, 2002, divided by the combined Florida taxable
3767	premiums written by all insurance companies that were members of
3768	the affiliated group of corporations for the tax year ending
3769	December 31, 2002, multiplied by the combined Florida taxable
3770	premiums of the affiliated group of corporations for the current
3771	year. An affiliated group of corporations electing this
3772	alternative calculation method must make such election on or
3773	before August 1, 2005. The election of this alternative
3774	calculation method is irrevocable and binding upon successors
3775	and assigns of the affiliated group of corporations electing
3776	this alternative. However, if a member of an affiliated group of
3777	corporations acquires or merges with another insurance company
3778	after the date of the irrevocable election, the acquired or
3779	merged company is not entitled to the affiliated group election
3780	and shall only be entitled to calculate the tax credit under
3781	subparagraph 1.
3782
3783	In no event shall the salary paid to an employee by an
3784	affiliated group of corporations be claimed as a credit by more
3785	than one insurer or be counted more than once in an insurer's
3786	calculation of the credit as described in subparagraph 1. or
3787	subparagraph 2. Only the portion of an employee's salary paid
3788	for the performance of insurance-related activities may be
3789	included in the calculation of the premium tax credit in this
3790	subsection.
3791	(b)  For purposes of this subsection:
3792	1.  The term "salaries" does not include amounts paid as
3793	commissions.
3794	2.  The term "employees" does not include independent
3795	contractors or any person whose duties require that the person
3796	hold a valid license under the Florida Insurance Code, except
3797	adjusters, managing general agents, and service representatives,
3798	as defined in s. 626.015.
3799	3.  The term "net tax" means the tax imposed by this
3800	section after applying the calculations and credits set forth in
3801	subsection (4).
3802	4.  An affiliated group of corporations that created a
3803	service company within its affiliated group on July 30, 2002,
3804	shall allocate the salary of each service company employee
3805	covered by contracts with affiliated group members to the
3806	companies for which the employees perform services. The salary
3807	allocation is based on the amount of time during the tax year
3808	that the individual employee spends performing services or
3809	otherwise working for each company over the total amount of time
3810	the employee spends performing services or otherwise working for
3811	all companies. The total amount of salary allocated to an
3812	insurance company within the affiliated group shall be included
3813	as that insurer's employee salaries for purposes of this
3814	section.
3815	a.  Except as provided in subparagraph (a)2., the term
3816	"affiliated group of corporations" means two or more
3817	corporations that are entirely owned by a single corporation and
3818	that constitute an affiliated group of corporations as defined
3819	in s. 1504(a) of the Internal Revenue Code.
3820	b.  The term "service company" means a separate corporation
3821	within the affiliated group of corporations whose employees
3822	provide services to affiliated group members and which are
3823	treated as service company employees for unemployment
3824	compensation and common law purposes. The holding company of an
3825	affiliated group may not qualify as a service company. An
3826	insurance company may not qualify as a service company.
3827	c.  If an insurance company fails to substantiate, whether
3828	by means of adequate records or otherwise, its eligibility to
3829	claim the service company exception under this section, or its
3830	salary allocation under this section, no credit shall be
3831	allowed.
3832	5.  A service company that is a subsidiary of a mutual
3833	insurance holding company, which mutual insurance holding
3834	company was in existence on or before January 1, 2000, shall
3835	allocate the salary of each service company employee covered by
3836	contracts with members of the mutual insurance holding company
3837	system to the companies for which the employees perform
3838	services. The salary allocation is based on the ratio of the
3839	amount of time during the tax year which the individual employee
3840	spends performing services or otherwise working for each company
3841	to the total amount of time the employee spends performing
3842	services or otherwise working for all companies. The total
3843	amount of salary allocated to an insurance company within the
3844	mutual insurance holding company system shall be included as
3845	that insurer's employee salaries for purposes of this section.
3846	However, this subparagraph does not apply for any tax year
3847	unless funds sufficient to offset the anticipated salary credits
3848	have been appropriated to the General Revenue Fund prior to the
3849	due date of the final return for that year.
3850	a.  The term "mutual insurance holding company system"
3851	means two or more corporations that are subsidiaries of a mutual
3852	insurance holding company and in compliance with part IV of
3853	chapter 628.
3854	b.  The term "service company" means a separate corporation
3855	within the mutual insurance holding company system whose
3856	employees provide services to other members of the mutual
3857	insurance holding company system and are treated as service
3858	company employees for unemployment compensation and common-law
3859	purposes. The mutual insurance holding company may not qualify
3860	as a service company.
3861	c.  If an insurance company fails to substantiate, whether
3862	by means of adequate records or otherwise, its eligibility to
3863	claim the service company exception under this section, or its
3864	salary allocation under this section, no credit shall be
3865	allowed.
3866	(c)  The department may adopt rules pursuant to ss.
3867	120.536(1) and 120.54 to administer this subsection.
3868	(6)(a)  The total of the credit granted for the taxes paid
3869	by the insurer under chapters 220 and 221 and the credit granted
3870	by subsection (5) shall not exceed 65 percent of the tax due
3871	under subsection (1) after deducting therefrom the taxes paid by
3872	the insurer under ss. 175.101 and 185.08 and any assessments
3873	pursuant to s. 440.51.
3874	(b)  To the extent that any credits granted by subsection
3875	(5) remain as a result of the limitation set forth in paragraph
3876	(a), such excess credits related to salaries and wages of
3877	employees whose place of employment is located within an
3878	enterprise zone created pursuant to chapter 290 may be
3879	transferred, in an aggregate amount not to exceed 25 percent of
3880	such excess salary credits, to any insurer that is a member of
3881	an affiliated group of corporations, as defined in sub-
3882	subparagraph (5)(b)4.a., that includes the original insurer
3883	qualifying for the credits under subsection (5). The amount of
3884	such excess credits to be transferred shall be calculated by
3885	multiplying the amount of such excess credits by a fraction, the
3886	numerator of which is the sum of the salaries qualifying for the
3887	credit allowed by subsection (5) of employees whose place of
3888	employment is located in an enterprise zone and the denominator
3889	of which is the sum of the salaries qualifying for the credit
3890	allowed by subsection (5). Any such transferred credits shall be
3891	subject to the same provisions and limitations set forth within
3892	this chapter. The provisions of this paragraph do not apply to
3893	an affiliated group of corporations that participate in a common
3894	paymaster arrangement as defined in s. 443.1216.
3895	(7)  Credits and deductions against the tax imposed by this
3896	section shall be taken in the following order: deductions for
3897	assessments made pursuant to s. 440.51; credits for taxes paid
3898	under ss. 175.101 and 185.08; credits for income taxes paid
3899	under chapter 220, the emergency excise tax paid under chapter
3900	221 and the credit allowed under subsection (5), as these
3901	credits are limited by subsection (6); all other available
3902	credits and deductions.
3903	(8)  As used in this section "insurer" includes any entity
3904	subject to the tax imposed by this section.
3905	637.2041  Retaliatory provision, insurers.-
3906	(1)(a)  When by or pursuant to the laws of any other state
3907	or foreign country any taxes, licenses, and other fees, in the
3908	aggregate, and any fines, penalties, deposit requirements, or
3909	other material obligations, prohibitions, or restrictions are or
3910	would be imposed upon title insurers in this state or upon the
3911	agents or representatives of such insurers, which are in excess
3912	of such taxes, licenses, and other fees, in the aggregate, or
3913	which are in excess of the fines, penalties, deposit
3914	requirements, or other obligations, prohibitions, or
3915	restrictions directly imposed upon similar insurers, or upon the
3916	agents or representatives of such insurers, of such other state
3917	or country under the statutes of this state, so long as such
3918	laws of such other state or country continue in force or are so
3919	applied, the same taxes, licenses, and other fees, in the
3920	aggregate, or fines, penalties, deposit requirements, or other
3921	material obligations, prohibitions, or restrictions of whatever
3922	kind shall be imposed by the Department of Revenue upon the
3923	insurers, or upon the agents or representatives of such
3924	insurers, of such other state or country doing business or
3925	seeking to do business in this state. In determining the taxes
3926	to be imposed under this section, 80 percent and a portion of
3927	the remaining 20 percent as provided in paragraph (b) of the
3928	credit provided by s. 637.2039(5), as limited by s. 637.2039(6)
3929	and further determined by s. 637.2039(7), shall not be taken
3930	into consideration.
3931	(b)  As used in this subsection, the term "portion of the
3932	remaining 20 percent" shall be calculated by multiplying the
3933	remaining 20 percent by a fraction, the numerator of which is
3934	the sum of the salaries qualifying for the credit allowed by s.
3935	637.2039(5) of employees whose place of employment is located in
3936	an enterprise zone created pursuant to chapter 290 and the
3937	denominator of which is the sum of the salaries qualifying for
3938	the credit allowed by s. 637.2039(5).
3939	(2)  Any tax, license, or other obligation imposed by any
3940	city, county, or other political subdivision or agency of a
3941	state, jurisdiction, or foreign country on Florida title
3942	insurers or their agents or representatives shall be deemed to
3943	be imposed by such state, jurisdiction, or foreign country
3944	within the meaning of subsection (1).
3945	(3)  This section does not apply as to personal income
3946	taxes, nor as to sales or use taxes, nor as to ad valorem taxes
3947	on real or personal property, nor as to reimbursement premiums
3948	paid to the Florida Hurricane Catastrophe Fund, nor as to
3949	emergency assessments paid to the Florida Hurricane Catastrophe
3950	Fund, nor as to special purpose obligations or assessments
3951	imposed in connection with particular kinds of insurance other
3952	than property insurance, except that deductions, from premium
3953	taxes or other taxes otherwise payable, allowed on account of
3954	real estate or personal property taxes paid shall be taken into
3955	consideration by the department in determining the propriety and
3956	extent of retaliatory action under this section.
3957	(4)  For the purposes of this section, a "similar insurer"
3958	is an insurer with identical premiums, personnel, and property
3959	to that of the alien or foreign insurer's Florida premiums,
3960	personnel, and property. The similar insurer's premiums,
3961	personnel, and property shall be used to calculate any taxes,
3962	licenses, other fees, in the aggregate, or any fines, penalties,
3963	deposit requirements, or other material obligations,
3964	prohibitions, or restrictions that are or would be imposed under
3965	the laws of this state and under the law of the foreign or alien
3966	insurer's state of domicile.
3967	(5)  The excess amount of all fees, licenses, and taxes
3968	collected by the Department of Revenue under this section over
3969	the amount of similar fees, licenses, and taxes provided for in
3970	this part, together with all fines, penalties, or other monetary
3971	obligations collected under this section exclusive of such fees,
3972	licenses, and taxes, shall be deposited by the Department of
3973	Revenue to the credit of the Title Insurance Regulatory Trust
3974	Fund; provided that such excess amount shall not exceed $125,000
3975	for 1992, and for any subsequent year shall not exceed $125,000
3976	adjusted annually by the lesser of 20 percent or the growth in
3977	the total of such excess amount. The remainder of such excess
3978	amount shall be deposited into the General Revenue Fund.
3979	637.2042  Administration of taxes; payments.-
3980	(1)  The Department of Revenue shall administer, audit, and
3981	enforce the assessment and collection of those taxes to which
3982	this section is applicable. The department and division may
3983	share information with the Department of Revenue as necessary to
3984	verify premium tax or other tax liability arising under such
3985	taxes and credits which may apply thereto.
3986	(2)(a)  Installments of the taxes to which this section is
3987	applicable shall be due and payable on April 15, June 15, and
3988	October 15 in each year, based upon the estimated gross amount
3989	of receipts of insurance premiums or assessments received during
3990	the immediately preceding calendar quarter. A final payment of
3991	tax due for the year shall be made at the time the taxpayer
3992	files her or his return for such year. On or before March 1 in
3993	each year, an annual return shall be filed showing, by quarters,
3994	the gross amount of receipts taxable for the preceding year and
3995	the installment payments made during that year.
3996	(b)  Any taxpayer who fails to report and timely pay any
3997	installment of tax, who estimates any installment of tax to be
3998	less than 90 percent of the amount finally shown to be due in
3999	any quarter, or who fails to report and timely pay any tax due
4000	with the final return is in violation of this section and is
4001	subject to a penalty of 10 percent on any underpayment of taxes
4002	or delinquent taxes due and payable for that quarter or on any
4003	delinquent taxes due and payable with the final return. Any
4004	taxpayer paying, for each installment required in this section,
4005	27 percent of the amount of the net tax due as reported on her
4006	or his return for the preceding year shall not be subject to the
4007	penalty provided by this section for underpayment of estimated
4008	taxes.
4009	(c)  When any taxpayer fails to pay any amount due under
4010	this section, or any portion thereof, on or before the day when
4011	such tax or installment of tax is required by law to be paid,
4012	there shall be added to the amount due interest at the rate of
4013	12 percent per year from the date due until paid.
4014	(d)  All penalties and interest imposed on those taxes to
4015	which this section is applicable shall be payable to and
4016	collectible by the Department of Revenue in the same manner as
4017	if they were a part of the tax imposed.
4018	(e)  The Department of Revenue may settle or compromise any
4019	such interest or penalties imposed on those taxes to which this
4020	section is applicable pursuant to s. 213.21.
4021	(3)  This section is applicable to taxes imposed by ss.
4022	629.5100, 637.2039, and 637.2046.
4023	637.2043  Adjustments.-
4024	(1)  If a taxpayer is required to amend its corporate
4025	income tax liability under chapter 220, or the taxpayer receives
4026	a refund of its workers' compensation administrative assessment
4027	paid under chapter 440, the taxpayer shall file an amended
4028	insurance premium tax return not later than 60 days after such
4029	an occurrence.
4030	(2)  If an amended insurance premium tax return is required
4031	under subsection (1), notwithstanding any other provision of s.
4032	95.091(3):
4033	(a)  A notice of deficiency may be issued at any time
4034	within 3 years after the date the amended insurance premium tax
4035	return is given; or
4036	(b)  If a taxpayer fails to file an amended insurance
4037	premium tax return, a notice of deficiency may be issued at any
4038	time.
4039
4040	The amount of any proposed assessment set forth in such a notice
4041	of deficiency shall be limited to the amount of any deficiency
4042	resulting under this chapter from recomputation of the
4043	taxpayer's insurance premium tax and retaliatory tax for the
4044	taxable year after giving effect only to the change in corporate
4045	income tax paid and the change in the amount of the workers'
4046	compensation administrative assessment paid. Interest in
4047	accordance with s. 637.2042 is due on the amount of any
4048	deficiency from the date fixed for filing the original insurance
4049	premium tax return for the taxable year until the date of
4050	payment of the deficiency.
4051	(3)  If an amended insurance premium tax return is required
4052	by subsection (1), a claim for refund may be filed within 2
4053	years after the date on which the amended insurance premium tax
4054	return was due, regardless of whether such notice was given,
4055	notwithstanding any other provision of s. 215.26. However, the
4056	amount recoverable pursuant to such a claim shall be limited to
4057	the amount of any overpayment resulting under this chapter from
4058	recomputation of the taxpayer's insurance premium tax and
4059	retaliatory tax for the taxable year after giving effect only to
4060	the change in corporate income tax paid and the change in the
4061	amount of the workers' compensation administrative assessment
4062	paid.
4063	637.2046  Tax statement; overpayments.-
4064	(1)  Tax returns as to taxes mentioned in s. 637.2039 shall
4065	be made by insurers on forms to be prescribed by the Department
4066	of Revenue and shall be sworn to by one or more of the executive
4067	officers or attorney, if a reciprocal insurer, of the insurer
4068	making the returns.
4069	(2)  Notwithstanding the provisions of s. 215.26(1), if any
4070	insurer makes an overpayment on account of taxes due under s.
4071	637.2039, a refund of the overpayment of taxes shall be made out
4072	of the General Revenue Fund. Overpayment of taxes due under s.
4073	637.2039 shall be refunded no sooner than the first day of the
4074	state fiscal year following the date the tax was due.
4075	(3)(a)  If it appears, upon examination of an insurance
4076	premium tax return made under this chapter, that an amount of
4077	insurance premium tax has been paid in excess of the amount due,
4078	the Department of Revenue may refund the amount of the
4079	overpayment to the taxpayer by a warrant of the Chief Financial
4080	Officer. The Department of Revenue may refund the overpayment
4081	without regard to whether the taxpayer has filed a written claim
4082	for a refund; however, the Department of Revenue may request
4083	that the taxpayer file a statement affirming that the taxpayer
4084	made the overpayment.
4085	(b)  Notwithstanding paragraph (a), a refund of the
4086	insurance premium tax may not be made, and a taxpayer is not
4087	entitled to bring an action for a refund of the insurance
4088	premium tax, after the period specified in s. 215.26(2) has
4089	elapsed.
4090	(c)  If a refund issued by the Department of Revenue under
4091	this subsection is found to exceed the amount of refund legally
4092	due to the taxpayer, the provisions of s. 637.2042 concerning
4093	penalties and interest do not apply if the taxpayer reimburses
4094	the department for any overpayment within 60 days after the
4095	taxpayer is notified that the overpayment was made.
4096	637.2047  Preemption by state.-
4097	(1)  This state hereby preempts the field of imposing
4098	excise, privilege, franchise, income, license, permit,
4099	registration, and similar taxes and fees, measured by premiums,
4100	income, or volume of transactions, upon insurers and their
4101	agents and other representatives; and a county, city,
4102	municipality, district, school district, or other political
4103	subdivision or agency in this state may not impose, levy,
4104	charge, or require the same, subject however to the provisions
4105	of subsection (2).
4106	(2)  This section shall not be construed to limit or modify
4107	the power of any incorporated city or town to levy the taxes
4108	authorized by ss. 175.101 and 185.08 or the power of any special
4109	fire control district to levy the taxes authorized by s.
4110	175.101.
4111	637.2048  Deposit of certain tax receipts; refund of
4112	improper payments.-
4113	(1)  The Department of Financial Services shall promptly
4114	deposit in the State Treasury to the credit of the Title
4115	Insurance Regulatory Trust Fund all "state tax" portions of
4116	agents' licenses collected under s. 637.2031. All moneys
4117	received by the Department of Financial Services or the
4118	department not in accordance with the provisions of this chapter
4119	or not in the exact amount as specified by the applicable
4120	provisions of this chapter shall be returned to the remitter.
4121	The records of the department shall show the date and reason for
4122	such return.
4123	(2)  The Department of Revenue shall promptly deposit into
4124	the Department of Revenue Premium Tax Clearing Trust Fund all
4125	premium taxes collected according to s. 637.2039. Such taxes
4126	shall be distributed on an estimated basis within 15 days after
4127	receipt by the Department of Revenue. Such distribution shall be
4128	adjusted pursuant to an audit by the Department of Revenue.
4129	Section 9.  Section 627.778, Florida Statutes, is
4130	transferred, renumbered as section 637.20485, Florida Statutes,
4131	and subsection (2) of that section is amended to read:
4132	637.20485 627.778  Limit of risk.-
4133	(2)  Surplus as to policyholders shall be determined from
4134	the last annual statement of the insurer filed under s. 637.2024
4135
4136	Section 10.  Sections 637.2049, 637.2051, 637.2053,
4137	637.2054, 637.2055, 637.2056, and 637.2057, Florida Statutes,
4138	are created to read:
4139	637.2049  Reinsurance.-
4140	(1)  The purpose of this section is to protect the
4141	interests of insureds, claimants, ceding insurers, assuming
4142	insurers, and the public. It is the intent of the Legislature to
4143	ensure adequate regulation of insurers and reinsurers and
4144	adequate protection for those to whom they owe obligations. In
4145	furtherance of that state interest, the Legislature requires
4146	that upon the insolvency of a non-United States insurer or
4147	reinsurer which provides security to fund its United States
4148	obligations in accordance with this section, such security shall
4149	be maintained in the United States and claims shall be filed
4150	with and valued by the state insurance regulator with regulatory
4151	oversight, and the assets shall be distributed in accordance
4152	with the insurance laws of the state in which the trust is
4153	domiciled that are applicable to the liquidation of domestic
4154	United States insurance companies. The Legislature declares that
4155	the matters contained in this section are fundamental to the
4156	business of insurance in accordance with 15 U.S.C. ss. 1011-
4157	1012.
4158	(2)  Credit for reinsurance must be allowed a ceding
4159	insurer as either an asset or a deduction from liability on
4160	account of reinsurance ceded only when the reinsurer meets the
4161	requirements of paragraph (3)(a), paragraph (3)(b), or paragraph
4162	(3)(c). Credit must be allowed under paragraph (3)(a) or
4163	paragraph (3)(b) only for cessions of those kinds or lines of
4164	business that the assuming insurer is licensed, authorized, or
4165	otherwise permitted to write or assume in its state of domicile
4166	or, in the case of a United States branch of an alien assuming
4167	insurer, in the state through which it is entered and licensed
4168	or authorized to transact insurance or reinsurance.
4169	(3)(a)  Credit must be allowed when the reinsurance is
4170	ceded to an assuming insurer that is authorized to transact
4171	insurance or reinsurance in this state.
4172	(b)1.  Credit must be allowed when the reinsurance is ceded
4173	to an assuming insurer that is accredited as a reinsurer in this
4174	state. An accredited reinsurer is one that:
4175	a.  Files with the department evidence of its submission to
4176	this state's jurisdiction.
4177	b.  Submits to this state's authority to examine its books
4178	and records.
4179	c.  Is licensed or authorized to transact insurance or
4180	reinsurance in at least one state or, in the case of a United
4181	States branch of an alien assuming insurer, is entered through,
4182	licensed, or authorized to transact insurance or reinsurance in
4183	at least one state.
4184	d.  Files annually with the department a copy of its annual
4185	statement filed with the insurance department of its state of
4186	domicile any quarterly statements if required by its state of
4187	domicile or such quarterly statements if specifically requested
4188	by the department, and a copy of its most recent audited
4189	financial statement.
4190	(I)  Maintains a surplus as regards policyholders in an
4191	amount not less than $20 million and whose accreditation has not
4192	been denied by the department within 90 days after its
4193	submission; or
4194	(II)  Maintains a surplus as regards policyholders in an
4195	amount not less than $20 million and whose accreditation has
4196	been approved by the department.
4197	2.  The department may deny or revoke an assuming insurer's
4198	accreditation if the assuming insurer does not submit the
4199	required documentation pursuant to subparagraph 1., if the
4200	assuming insurer fails to meet all of the standards required of
4201	an accredited reinsurer, or if the assuming insurer's
4202	accreditation would be hazardous to the policyholders of this
4203	state. In determining whether to deny or revoke accreditation,
4204	the department may consider the qualifications of the assuming
4205	insurer with respect to all the following subjects:
4206	a.  Its financial stability.
4207	b.  The lawfulness and quality of its investments.
4208	c.  The competency, character, and integrity of its
4209	management.
4210	d.  The competency, character, and integrity of persons who
4211	own or have a controlling interest in the assuming insurer.
4212	e.  Whether claims under its contracts are promptly and
4213	fairly adjusted and are promptly and fairly paid in accordance
4214	with the law and the terms of the contracts.
4215	3.  Credit must not be allowed a ceding insurer if the
4216	assuming insurer's accreditation has been revoked by the
4217	department after notice and the opportunity for a hearing.
4218	4.  The actual costs and expenses incurred by the
4219	department to review a reinsurer's request for accreditation and
4220	subsequent reviews must be charged to and collected from the
4221	requesting reinsurer. If the reinsurer fails to pay the actual
4222	costs and expenses promptly when due, the department may refuse
4223	to accredit the reinsurer or may revoke the reinsurer's
4224	accreditation.
4225	(c)1.  Credit must be allowed when the reinsurance is ceded
4226	to an assuming insurer that maintains a trust fund in a
4227	qualified United States financial institution, as defined in
4228	paragraph (5)(b), for the payment of the valid claims of its
4229	United States ceding insurers and their assigns and successors
4230	in interest. To enable the department to determine the
4231	sufficiency of the trust fund, the assuming insurer shall report
4232	annually to the department information substantially the same as
4233	that required to be reported on the NAIC Annual Statement form
4234	by authorized insurers. The assuming insurer shall submit to
4235	examination of its books and records by the department and bear
4236	the expense of examination.
4237	2.a.  Credit for reinsurance must not be granted under this
4238	subsection unless the form of the trust and any amendments to
4239	the trust have been approved by:
4240	(I)  The insurance regulator of the state in which the
4241	trust is domiciled; or
4242	(II)  The insurance regulator of another state who,
4243	pursuant to the terms of the trust instrument, has accepted
4244	principal regulatory oversight of the trust.
4245	b.  The form of the trust and any trust amendments must be
4246	filed with the insurance regulator of every state in which the
4247	ceding insurer beneficiaries of the trust are domiciled. The
4248	trust instrument must provide that contested claims are valid
4249	and enforceable upon the final order of any court of competent
4250	jurisdiction in the United States. The trust must vest legal
4251	title to its assets in its trustees for the benefit of the
4252	assuming insurer's United States ceding insurers and their
4253	assigns and successors in interest. The trust and the assuming
4254	insurer are subject to examination as determined by the
4255	insurance regulator.
4256	c.  The trust remains in effect for as long as the assuming
4257	insurer has outstanding obligations due under the reinsurance
4258	agreements subject to the trust. No later than February 28 of
4259	each year, the trustee of the trust shall report to the
4260	insurance regulator in writing the balance of the trust and list
4261	the trust's investments at the preceding year end, and shall
4262	certify that the trust will not expire prior to the following
4263	December 31.
4264	3.  The following requirements apply to the following
4265	categories of assuming insurer:
4266	a.  The trust fund for a single assuming insurer consists
4267	of funds in trust in an amount not less than the assuming
4268	insurer's liabilities attributable to reinsurance ceded by
4269	United States ceding insurers, and, in addition, the assuming
4270	insurer shall maintain a trusteed surplus of not less than $20
4271	million. Not less than 50 percent of the funds in the trust
4272	covering the assuming insurer's liabilities attributable to
4273	reinsurance ceded by United States ceding insurers and trusteed
4274	surplus shall consist of assets of a quality substantially
4275	similar to that required in part II of chapter 625. Clean,
4276	irrevocable, unconditional, and evergreen letters of credit,
4277	issued or confirmed by a qualified United States financial
4278	institution, as defined in paragraph (5)(a), effective no later
4279	than December 31 of the year for which the filing is made and in
4280	the possession of the trust on or before the filing date of its
4281	annual statement, may be used to fund the remainder of the trust
4282	and trusteed surplus.
4283	b.(I)  In the case of a group including incorporated and
4284	individual unincorporated underwriters:
4285	(A)  For reinsurance ceded under reinsurance agreements
4286	with an inception, amendment, or renewal date on or after August
4287	1, 1995, the trust consists of a trusteed account in an amount
4288	not less than the group's several liabilities attributable to
4289	business ceded by United States domiciled ceding insurers to any
4290	member of the group.
4291	(B)  For reinsurance ceded under reinsurance agreements
4292	with an inception date on or before July 31, 1995, and not
4293	amended or renewed after that date, notwithstanding the other
4294	provisions of this section, the trust consists of a trusteed
4295	account in an amount not less than the group's several insurance
4296	and reinsurance liabilities attributable to business written in
4297	the United States.
4298	(C)  In addition to these trusts, the group shall maintain
4299	in trust a trusteed surplus of which $100 million must be held
4300	jointly for the benefit of the United States domiciled ceding
4301	insurers of any member of the group for all years of account.
4302	(II)  The incorporated members of the group must not be
4303	engaged in any business other than underwriting of a member of
4304	the group, and are subject to the same level of regulation and
4305	solvency control by the group's domiciliary regulator as the
4306	unincorporated members.
4307	(III)  Within 90 days after its financial statements are
4308	due to be filed with the group's domiciliary regulator, the
4309	group shall provide to the insurance regulator an annual
4310	certification by the group's domiciliary regulator of the
4311	solvency of each underwriter member or, if a certification is
4312	unavailable, financial statements, prepared by independent
4313	public accountants, of each underwriter member of the group.
4314	(d)  Credit must be allowed when the reinsurance is ceded
4315	to an assuming insurer not meeting the requirements of paragraph
4316	(a), paragraph (b), or paragraph (c), but only as to the
4317	insurance of risks located in jurisdictions in which the
4318	reinsurance is required to be purchased by a particular entity
4319	by applicable law or regulation of that jurisdiction.
4320	(e)  If the reinsurance is ceded to an assuming insurer not
4321	meeting the requirements of paragraph (a), paragraph (b),
4322	paragraph (c), or paragraph (d), the department may allow
4323	credit, but only if the assuming insurer holds surplus in excess
4324	of $100 million and has a secure financial strength rating from
4325	at least two nationally recognized statistical rating
4326	organizations deemed acceptable by the department. In
4327	determining whether credit should be allowed, the department
4328	shall consider the following:
4329	1.  The domiciliary regulatory jurisdiction of the assuming
4330	insurer.
4331	2.  The structure and authority of the domiciliary
4332	regulator with regard to solvency regulation requirements and
4333	the financial surveillance of the reinsurer.
4334	3.  The substance of financial and operating standards for
4335	reinsurers in the domiciliary jurisdiction.
4336	4.  The form and substance of financial reports required to
4337	be filed by the reinsurers in the domiciliary jurisdiction or
4338	other public financial statements filed in accordance with
4339	generally accepted accounting principles.
4340	5.  The domiciliary regulator's willingness to cooperate
4341	with United States regulators in general and the department in
4342	particular.
4343	6.  The history of performance by reinsurers in the
4344	domiciliary jurisdiction.
4345	7.  Any documented evidence of substantial problems with
4346	the enforcement of valid United States judgments in the
4347	domiciliary jurisdiction.
4348	8.  Any other matters deemed relevant by the department.
4349	The department shall give appropriate consideration to insurer
4350	group ratings that may have been issued. The department may, in
4351	lieu of granting full credit under this subsection, reduce the
4352	amount required to be held in trust under paragraph (c).
4353	(f)  If the assuming insurer is not authorized or
4354	accredited to transact insurance or reinsurance in this state
4355	pursuant to paragraph (a) or paragraph (b), the credit permitted
4356	by paragraph (c) or paragraph (d) must not be allowed unless the
4357	assuming insurer agrees in the reinsurance agreements:
4358	1.a.  That in the event of the failure of the assuming
4359	insurer to perform its obligations under the terms of the
4360	reinsurance agreement, the assuming insurer, at the request of
4361	the ceding insurer, shall submit to the jurisdiction of any
4362	court of competent jurisdiction in any state of the United
4363	States, will comply with all requirements necessary to give the
4364	court jurisdiction, and will abide by the final decision of the
4365	court or of any appellate court in the event of an appeal.
4366	b.  To designate the Chief Financial Officer, pursuant to
4367	s. 48.151, or a designated attorney as its true and lawful
4368	attorney upon whom may be served any lawful process in any
4369	action, suit, or proceeding instituted by or on behalf of the
4370	ceding company.
4371	2.  This paragraph is not intended to conflict with or
4372	override the obligation of the parties to a reinsurance
4373	agreement to arbitrate their disputes, if this obligation is
4374	created in the agreement.
4375	(g)  If the assuming insurer does not meet the requirements
4376	of paragraph (a) or paragraph (b), the credit permitted by
4377	paragraph (c) or paragraph (d) is not allowed unless the
4378	assuming insurer agrees in the trust agreements, in substance,
4379	to the following conditions:
4380	1.  Notwithstanding any other provisions in the trust
4381	instrument, if the trust fund is inadequate because it contains
4382	an amount less than the amount required by paragraph (c), or if
4383	the grantor of the trust has been declared insolvent or placed
4384	into receivership, rehabilitation, liquidation, or similar
4385	proceedings under the laws of its state or country of domicile,
4386	the trustee shall comply with an order of the insurance
4387	regulator with regulatory oversight over the trust or with an
4388	order of a United States court of competent jurisdiction
4389	directing the trustee to transfer to the insurance regulator
4390	with regulatory oversight all of the assets of the trust fund.
4391	2.  The assets must be distributed by and claims must be
4392	filed with and valued by the insurance regulator with regulatory
4393	oversight in accordance with the laws of the state in which the
4394	trust is domiciled which are applicable to the liquidation of
4395	domestic insurance companies.
4396	3.  If the insurance regulator with regulatory oversight
4397	determines that the assets of the trust fund or any part thereof
4398	are not necessary to satisfy the claims of the United States
4399	ceding insurers of the grantor of the trust, the assets or part
4400	thereof must be returned by the insurance regulator with
4401	regulatory oversight to the trustee for distribution in
4402	accordance with the trust agreement.
4403	4.  The grantor shall waive any right otherwise available
4404	to it under United States law which is inconsistent with this
4405	provision.
4406	(4)  An asset allowed or a deduction from liability taken
4407	for the reinsurance ceded by an insurer to an assuming insurer
4408	not meeting the requirements of subsections (2) and (3) is
4409	allowed in an amount not exceeding the liabilities carried by
4410	the ceding insurer. The deduction must be in the amount of funds
4411	held by or on behalf of the ceding insurer, including funds held
4412	in trust for the ceding insurer, under a reinsurance contract
4413	with the assuming insurer as security for the payment of
4414	obligations thereunder, if the security is held in the United
4415	States subject to withdrawal solely by, and under the exclusive
4416	control of, the ceding insurer, or, in the case of a trust, held
4417	in a qualified United States financial institution, as defined
4418	in paragraph (5)(b). This security may be in the form of:
4419	(a)  Cash in United States dollars;
4420	(b)  Securities listed by the Securities Valuation Office
4421	of the National Association of Insurance Commissioners and
4422	qualifying as admitted assets pursuant to part II of chapter
4423	625;
4424	(c)  Clean, irrevocable, unconditional letters of credit,
4425	issued or confirmed by a qualified United States financial
4426	institution, as defined in paragraph (5)(a), effective no later
4427	than December 31 of the year for which the filing is made, and
4428	in the possession of, or in trust for, the ceding company on or
4429	before the filing date of its annual statement; or
4430	(d)  Any other form of security acceptable to the
4431	department.
4432	(5)(a)  For purposes of paragraph (4)(c) regarding letters
4433	of credit, a "qualified United States financial institution"
4434	means an institution that:
4435	1.  Is organized or, in the case of a United States
4436	department of a foreign banking organization, is licensed under
4437	the laws of the United States or any state thereof;
4438	2.  Is regulated, supervised, and examined by United States
4439	or state authorities having regulatory authority over banks and
4440	trust companies; and
4441	3.  Has been determined by either the department or the
4442	Securities Valuation Office of the National Association of
4443	Insurance Commissioners to meet such standards of financial
4444	condition and standing as are considered necessary and
4445	appropriate to regulate the quality of financial institutions
4446	whose letters of credit will be acceptable to the department.
4447	(b)  For purposes of those provisions of this law which
4448	specify institutions that are eligible to act as a fiduciary of
4449	a trust, a "qualified United States financial institution" means
4450	an institution that is a member of the Federal Reserve System or
4451	that has been determined by the department to meet the following
4452	criteria:
4453	1.  Is organized or, in the case of a United States branch
4454	or agency department of a foreign banking organization, is
4455	licensed under the laws of the United States or any state
4456	thereof and has been granted authority to operate with fiduciary
4457	powers; and
4458	2.  Is regulated, supervised, and examined by federal or
4459	state authorities having regulatory authority over banks and
4460	trust companies.
4461	(6)  For the purposes of this section only, the term
4462	"ceding insurer" includes any health maintenance organization
4463	operating under a certificate of authority issued under part I
4464	of chapter 641.
4465	(7)  After notice and an opportunity for a hearing, the
4466	department may disallow any credit that it finds would be
4467	contrary to the proper interests of the policyholders or
4468	stockholders of a ceding domestic insurer.
4469	(8)  Credit must be allowed to any ceding insurer for
4470	reinsurance otherwise complying with this section only when the
4471	reinsurance is payable by the assuming insurer on the basis of
4472	the liability of the ceding insurer under the contract or
4473	contracts reinsured without diminution because of the insolvency
4474	of the ceding insurer. Such credit must be allowed to the ceding
4475	insurer for reinsurance otherwise complying with this section
4476	only when the reinsurance agreement provides that payments by
4477	the assuming insurer will be made directly to the ceding insurer
4478	or its receiver, except when:
4479	(a)  The reinsurance contract specifically provides payment
4480	to the named insured, assignee, or named beneficiary of the
4481	policy issued by the ceding insurer in the event of the
4482	insolvency of the ceding insurer; or
4483	(b)  The assuming insurer, with the consent of the named
4484	insured, has assumed the policy obligations of the ceding
4485	insurer as direct obligations of the assuming insurer in
4486	substitution for the obligations of the ceding insurer to the
4487	named insured.
4488	(9)  No person, other than the ceding insurer, has any
4489	rights against the reinsurer which are not specifically set
4490	forth in the contract of reinsurance or in a specific written,
4491	signed agreement between the reinsurer and the person.
4492	(10)  An authorized insurer may not knowingly accept as
4493	assuming reinsurer any risk covering subject of insurance which
4494	is resident, located, or to be performed in this state and which
4495	is written directly by any insurer not then authorized to
4496	transact such insurance in this state, other than as to surplus
4497	lines insurance lawfully written under part VIII of chapter 626.
4498	(11)(a)  Any domestic or commercially domiciled insurer
4499	ceding directly written risks of loss under this section shall,
4500	within 30 days after receipt of a cover note or similar
4501	confirmation of coverage, or, without exception, no later than 6
4502	months after the effective date of the reinsurance treaty, file
4503	with the department one copy of a summary statement containing
4504	the following information about each treaty:
4505	1.  The contract period.
4506	2.  The nature of the reinsured's business.
4507	3.  An indication as to whether the treaty is proportional,
4508	nonproportional, coinsurance, modified coinsurance, or
4509	indemnity, as applicable.
4510	4.  The ceding company's loss retention per risk.
4511	5.  The reinsured limits.
4512	6.  Any special contract restrictions.
4513	7.  A schedule of reinsurers assuming the risks of loss.
4514	8.  An indication as to whether payments to the assuming
4515	insurer are based on written premiums or earned premiums.
4516	9.  Identification of any intermediary or broker used in
4517	obtaining the reinsurance and the department paid to such
4518	intermediary or broker if known.
4519	10.  Ceding commissions and allowances.
4520	(b)  The summary statement must be signed and attested to
4521	by either the chief executive officer or the chief financial
4522	officer of the reporting insurer. In addition to the summary
4523	statement, the department may require the filing of any
4524	supporting information relating to the ceding of such risks as
4525	it deems necessary. If the summary statement prepared by the
4526	ceding insurer discloses that the net effect of a reinsurance
4527	treaty or treaties, or series of treaties with one or more
4528	affiliated reinsurers entered into for the purpose of avoiding
4529	the following threshold amount, at any time results in an
4530	increase of more than 25 percent to the insurer's surplus as to
4531	policyholders, then the insurer shall certify in writing to the
4532	department that the relevant reinsurance treaty or treaties
4533	comply with the accounting requirements contained in any rule
4534	adopted by the department under subsection (14). If such
4535	certificate is filed after the summary statement of such
4536	reinsurance treaty or treaties, the insurer shall refile the
4537	summary statement with the certificate. In any event, the
4538	certificate must state that a copy of the certificate was sent
4539	to the reinsurer under the reinsurance treaty.
4540	(c)  This subsection applies to cessions of directly
4541	written risk or loss. This subsection does not apply to
4542	contracts of facultative reinsurance or to any ceding insurer
4543	with surplus as to policyholders that exceeds $100 million as of
4544	the immediately preceding December 31. Additionally, any ceding
4545	insurer otherwise subject to this section with less than
4546	$500,000 in direct premiums written in this state during the
4547	preceding calendar year or with less than 1,000 policyholders at
4548	the end of the preceding calendar year is exempt from the
4549	requirements of this subsection. However, any ceding insurer
4550	otherwise subject to this section with more than $250,000 in
4551	direct premiums written in this state during the preceding
4552	calendar quarter is not exempt from the requirements of this
4553	subsection.
4554	(d)  An authorized insurer not otherwise exempt from the
4555	provisions of this subsection shall provide the information
4556	required by this subsection with underlying and supporting
4557	documentation upon written request of the department.
4558	(e)  The department may, upon a showing of good cause,
4559	waive the requirements of this subsection.
4560	(12)  If the department finds that a reinsurance agreement
4561	creates a substantial risk of insolvency to either insurer
4562	entering into the reinsurance agreement, the department may by
4563	order require a cancellation of the reinsurance agreement.
4564	(13)  No credit shall be allowed for reinsurance with
4565	regard to which the reinsurance agreement does not create a
4566	meaningful transfer of risk of loss to the reinsurer.
4567	(14)  The department may adopt rules implementing the
4568	provisions of this section. Rules are authorized to protect the
4569	interests of insureds, claimants, ceding insurers, assuming
4570	insurers, and the public. These rules shall be in substantial
4571	compliance with:
4572	(a)  The National Association of Insurance Commissioners
4573	model regulations relating to credit for reinsurance.
4574	(b)  The National Association of Insurance Commissioners
4575	Accounting Practices and Procedures Manual as of March 2002 and
4576	subsequent amendments thereto if the methodology remains
4577	substantially consistent.
4578	(c)  The National Association of Insurance Commissioners
4579	model regulation for Credit for Reinsurance and Life and Health
4580	Reinsurance Agreements.
4581
4582	The department may further adopt rules to provide for transition
4583	from existing requirements for the approval of reinsurers to the
4584	accreditation of reinsurers pursuant to this section.
4585	637.2051  Notice to comply with written requirements of
4586	department; noncompliance.-
4587	(1)  If the department determines that the conditions set
4588	forth in subsection (2) exist, the department shall issue an
4589	order placing the title insurer in administrative supervision,
4590	setting forth the reasons giving rise to the determination, and
4591	specifying that the department is applying and effectuating the
4592	provisions of this chapter. An order issued by the department
4593	pursuant to this subsection entitles the insurer to request a
4594	proceeding under ss. 120.569 and 120.57, and such a request
4595	shall stay the action pending such proceeding.
4596	(2)  A title insurer shall be subject to administrative
4597	supervision by the department if upon examination or at any
4598	other time the department determines that:
4599	(a)  The insurer is in unsound condition;
4600	(b)  The insurer's methods or practices render the
4601	continuance of its business hazardous to the public or to its
4602	insureds; or
4603	(c)  The insurer has exceeded its powers granted under its
4604	certificate of authority and applicable law.
4605	(3)  Within 15 days after receipt of notice of the
4606	department's determination to proceed under this chapter, an
4607	insurer shall submit to the department a plan to correct the
4608	conditions set forth in the notice. For good cause shown, the
4609	department may extend the 15-day time period for submission of
4610	the plan. If the department and the insurer agree on a
4611	corrective plan, a written agreement shall be entered into to
4612	carry out the plan.
4613	(4)  If a title insurer fails to timely submit a plan, the
4614	department may specify the requirements of a plan to address the
4615	conditions giving rise to imposition of administrative
4616	supervision under this chapter. In addition, failure of the
4617	insurer to timely submit a plan is a violation of the provisions
4618	of this chapter punishable in accordance with s. 637.2017.
4619	(5)  The plan shall address, but shall not be limited to,
4620	each of the activities of the insurer's business which are set
4621	forth in s. 637.2053.
4622	(6)  Any insurer subject to administrative supervision is
4623	expected to avail itself of all reasonably available
4624	reinsurance. Reasonably available reinsurance shall include
4625	unrealized reinsurance, which is defined as reinsurance
4626	recoverable on known losses incurred and due under valid
4627	reinsurance contracts that have not been identified in the
4628	normal course of business and have not been reported in
4629	financial statements filed with the department. Within 90 days
4630	after being placed under administrative supervision, the insurer
4631	shall certify to the Chief Financial Officer that the insurer
4632	has engaged an independent third party to search for unrealized
4633	reinsurance, and that the insurer has made all relevant books
4634	and records available to the third party. The compensation to
4635	the third party may be a percentage of unrealized reinsurance
4636	identified and collected.
4637	(7)  If the department and the insurer are unable to agree
4638	on the provisions of the plan, the department may require the
4639	insurer to take such corrective action as may be reasonably
4640	necessary to remove the causes and conditions giving rise to the
4641	need for administrative supervision.
4642	(8)  The insurer shall have 60 days, or a longer period of
4643	time as designated by the department but not to exceed 120 days,
4644	after the date of the written agreement or the receipt of the
4645	department's plan within which to comply with the requirements
4646	of the department. At the conclusion of the initial period of
4647	supervision, the department may extend the supervision in
4648	increments of 60 days or longer, not to exceed 120 days, if
4649	conditions justifying supervision exist. Each extension of
4650	supervision shall provide the insurer with a point of entry
4651	pursuant to chapter 120.
4652	(9)  The initiation or pendency of administrative
4653	proceedings arising from actions taken under this section shall
4654	not preclude the department from initiating judicial proceedings
4655	to place an insurer in conservation, rehabilitation, or
4656	liquidation or initiating other delinquency proceedings however
4657	designated under the laws of this state.
4658	(10)  If it is determined that the conditions giving rise
4659	to administrative supervision have been remedied so that the
4660	continuance of its business is no longer hazardous to the public
4661	or to its insureds, the department shall release the insurer
4662	from supervision.
4663	(11)  The department may adopt rules to define standards of
4664	hazardous financial condition and corrective action
4665	substantially similar to that indicated in the National
4666	Association of Insurance Commissioners' 1997 "Model Regulation
4667	to Define Standards and Commissioner's Authority for Companies
4668	Deemed to be in Hazardous Financial Condition," which are
4669	necessary to implement the provisions of this part.
4670	637.2053  Prohibited acts during period of supervision.-The
4671	department may provide that the title insurer may not conduct
4672	the following activities during the period of supervision,
4673	without prior approval by the department:
4674	(1)  Dispose of, convey, or encumber any of its assets or
4675	its business in force;
4676	(2)  Withdraw any of its bank accounts;
4677	(3)  Lend any of its funds;
4678	(4)  Invest any of its funds;
4679	(5)  Transfer any of its property;
4680	(6)  Incur any debt, obligation, or liability;
4681	(7)  Merge or consolidate with another company;
4682	(8)  Enter into any new reinsurance contract or treaty;
4683	(9)  Terminate, surrender, forfeit, convert, or lapse any
4684	insurance policy, certificate, or contract of insurance, except
4685	for nonpayment of premiums due;
4686	(10)  Release, pay, or refund premium deposits, accrued
4687	cash or loan values, unearned premiums, or other reserves on any
4688	insurance policy or certificate; or
4689	(11)  Make any material change in management.
4690	637.2054  Review.-During the period of supervision, the
4691	title insurer may contest an action taken or proposed to be
4692	taken by the supervisor, specifying the manner wherein the
4693	action complained of would not result in improving the condition
4694	of the insurer. Such request shall not stay the action specified
4695	pending reconsideration of the action by the department. Denial
4696	of the insurer's request upon reconsideration entitles the
4697	insurer to request a proceeding under ss. 120.569 and 120.57.
4698	637.2055  Administrative election of proceedings.-If the
4699	department determines to act under authority of this chapter,
4700	the sequence of its acts and proceedings shall be as set forth
4701	herein. However, it is a purpose and substance of this chapter
4702	to allow the department administrative discretion in the event
4703	of insurer delinquencies and, in furtherance of that purpose,
4704	the department may, in respect to insurer delinquencies or
4705	suspected delinquencies, proceed and administer under the
4706	provisions of this chapter or any other applicable law, or under
4707	the provisions of this chapter in conjunction with other
4708	applicable law, and it is so provided. Nothing contained in this
4709	part or in any other provision of law shall preclude the
4710	department from initiating judicial proceedings to place an
4711	insurer in conservation, rehabilitation, or liquidation
4712	proceedings or other delinquency proceedings however designated
4713	under the laws of this state, regardless of whether the
4714	department has previously initiated administrative supervision
4715	proceedings under this part against the insurer. The entry of an
4716	order of seizure, rehabilitation, or liquidation pursuant to
4717	chapter 631 shall terminate all proceedings pending pursuant to
4718	this part.
4719	637.2056  Other laws; conflicts; meetings between the
4720	department and the supervisor.-During the period of
4721	administrative supervision, the department may meet with a
4722	supervisor appointed under this chapter and with the attorney or
4723	other representative of the supervisor and such meetings are
4724	exempt from the provisions of s. 286.011.
4725	637.2057  Administrative supervision; expenses.-
4726	(1)  During the period of supervision the department by
4727	contract or otherwise may appoint a deputy supervisor to
4728	supervise the title insurer.
4729	(2)  Each insurer which is subject to administrative
4730	supervision by the department shall pay to the department the
4731	expenses of its administrative supervision at the rates adopted
4732	by the department. Expenses shall include actual travel
4733	expenses, a reasonable living expense allowance, compensation of
4734	the deputy supervisor or other person employed or appointed by
4735	the department for purposes of the supervision, and necessary
4736	attendant administrative costs of the department directly
4737	related to the supervision. The travel expense and living
4738	expense allowance shall be limited to those expenses necessarily
4739	incurred on account of the administrative supervision and shall
4740	be paid by the insurer together with compensation upon
4741	presentation by the department to the insurer of a detailed
4742	account of the charges and expenses after a detailed statement
4743	has been filed by the deputy supervisor or other person employed
4744	or appointed by the department and approved by the department.
4745	(3)  All moneys collected from insurers for the expenses of
4746	administrative supervision shall be deposited into the Title
4747	Insurance Regulatory Trust Fund, and the department is
4748	authorized to make deposits from time to time into this fund
4749	from moneys appropriated for the operation of the department.
4750	(4)  Notwithstanding the provisions of s. 112.061, the
4751	department is authorized to pay to the deputy supervisor or
4752	person employed or appointed by the department for purposes of
4753	the supervision out of such trust fund the actual travel
4754	expenses, reasonable living expense allowance, and compensation
4755	in accordance with the statement filed with the department by
4756	the deputy supervisor or other person, as provided in subsection
4757	(2), upon approval by the department.
4758	(5)  The department may in whole or in part defer payment
4759	of expenses due from the insurer pursuant to this section upon a
4760	showing that payment would adversely impact on the financial
4761	condition of the insurer and jeopardize its rehabilitation. The
4762	payment shall be made by the insurer when the condition is
4763	removed and the payment would no longer jeopardize the insurer's
4764	financial condition.
4765	Section 11.  Section 627.777, Florida Statutes, is
4766	transferred, renumbered as section 637.2058, Florida Statutes,
4767	and amended to read:
4768	637.2058 627.777  Approval of forms.-
4769	(1)  A title insurer may not issue or agree to issue any
4770	form of title insurance commitment, title insurance policy,
4771	other contract of title insurance, or related form until it is
4772	filed with and approved by the department office. The department
4773	office may not disapprove a title guarantee or policy form on
4774	the ground that it has on it a blank form for an attorney's
4775	opinion on the title.
4776	(2)  If a form filed for approval is a form recommended by
4777	the American Land Title Association at the time of the filing,
4778	the department shall approve or disapprove the form within 180
4779	days. If a form filed for approval is a form not recommended by
4780	the American Land Title Association at the time of the filing,
4781	the department shall approve or disapprove the form within 1
4782	year.
4783	(3)  At the time of the approval of any form, the
4784	department shall determine if a rate in effect at that time
4785	applies or if the coverages require adoption of a rule pursuant
4786	to s. 637.2064.
4787	(4)  The department may revoke approval of any form upon
4788	180 days' notice.
4789	(5)  An insurer may not achieve any competitive advantage
4790	over any other insurer or agent as to forms.
4791	Section 12.  Section 627.7773, Florida Statutes, is
4792	transferred, renumbered as section 637.2059, Florida Statutes,
4793	and amended to read:
4794	637.2059 627.7773  Accounting and auditing of forms by
4795	title insurers.-
4796	(1)  Each title insurer authorized to do business in this
4797	state shall, at least once during each calendar year, require of
4798	each of its title insurance agents or agencies accountings of
4799	all outstanding forms in the agent's or agency's possession of
4800	the types that are specified in s. 637.2058 627.777.
4801	(2)  If the department office has reason to believe that an
4802	audit of outstanding forms should be required of any title
4803	insurer as to a title insurance agent or agency, the department
4804	office may require the title insurer to make a special audit of
4805	the forms. The title insurer shall complete the audit not later
4806	than 60 days after the request is received from the department
4807	office, and shall report the results of the special audit to the
4808	department office no later than 90 days after the request is
4809	received.
4810	Section 13.  Section 627.7776, Florida Statutes, is
4811	transferred, renumbered as section 637.2061, Florida Statutes,
4812	and subsection (1) of that section is amended to read:
4813	637.2061 627.7776  Furnishing of supplies; civil
4814	liability.-
4815	(1)  A title insurer may not furnish to any person any
4816	blank forms, applications, stationery, or other supplies to be
4817	used in soliciting, negotiating, or effecting contracts of title
4818	insurance on its behalf until that person has received from the
4819	insurer a contract to act as a title insurance agent or agency
4820	and has been licensed by the department, if required by s.
4821	637.3006 626.8417.
4822	Section 14.  Section 627.780, Florida Statutes, is
4823	transferred, renumbered as section 637.2063, Florida Statutes,
4824	and subsection (1) of that section is amended to read:
4825	637.2063 627.780  Illegal dealings in premium.-
4826	(1)  A person may not knowingly quote, charge, accept,
4827	collect, or receive a premium for title insurance other than the
4828	premium adopted by the department commission, except as provided
4829	in s. 637.1033(7)(b). 626.9541(1)(h)3.b.
4830	Section 15.  Section 637.20635, Florida Statutes, is
4831	created to read:
4832	637.20635  Rebating; when allowed.-
4833	(1)  A title insurer, title insurance agency, or title
4834	insurance agent may not rebate any portion of the premium
4835	except as follows:
4836	(a)  A rebate shall be in accordance with a uniform
4837	percentage of the premium established by the insurer issuing
4838	the policy to which the rebate applies. Deviations from the
4839	approved rebate may not be permitted for any reason, including,
4840	but not limited to, the amount of the coverage, the insured,
4841	any geographic limitation within this state, or the type of
4842	policy.
4843	(b)  Any rebates shall be uniformly applied to all policies
4844	of whatever kind issued by or on behalf of the insurer. Each
4845	person responsible for paying the premium must receive the same
4846	rebate regardless of whether the policy is purchased from a
4847	title insurance agent or agency, directly from the title
4848	insurer, or from an affiliated company. For purposes of this
4849	paragraph, the term "affiliated company" means any company of an
4850	affiliated group of corporations as defined in s.
4851	637.2039(5)(a)(2).
4852	(c)  The age, sex, place of residence, nationality,
4853	ethnic origin, marital status, or occupation of the insured
4854	may not be used in determining the amount of the rebate or
4855	whether a rebate is available.
4856	(d)  The insurer shall file a copy of the uniform rebate
4857	percentage and its effective date quarterly with the
4858	department. The insurer may not establish a rebate schedule
4859	that has the effect of impairing the financial solvency of the
4860	insurer or the title insurance agent or agency. The insurer
4861	must obtain department approval of the rebates consistent with
4862	s. 637.2064 prior to their implementation.
4863	(2)  A rebate may not be:
4864	(a)  Withheld or limited in amount based on factors that
4865	are unfairly discriminatory.
4866	(b)  Given if it is inconsistent with the filed and
4867	approved uniform rebate percentage.
4868	(c)  Granted or refused based upon the purchase or failure
4869	of the insured to purchase additional services.
4870	Section 16.  Section 627.782, Florida Statutes, is
4871	transferred, renumbered as section 637.2064, Florida Statutes,
4872	and amended to read:
4873	637.2064 627.782  Adoption of rates.-
4874	(1)  Subject to the rating provisions of this chapter code,
4875	the department commission must adopt a rule specifying the
4876	premium to be charged in this state by title insurers for the
4877	respective types of title insurance contracts and, for policies
4878	issued through agents or agencies, the percentage of such
4879	premium required to be retained by the title insurer which shall
4880	not be less than 30 percent. However, in a transaction subject
4881	to the Real Estate Settlement Procedures Act of 1974, 12 U.S.C.
4882	ss. 2601 et seq., as amended, no portion of the premium
4883	attributable to providing a primary title service shall be paid
4884	to or retained by any person who does not actually perform or is
4885	not liable for the performance of such service.
4886	(2)  In adopting premium rates, the department commission
4887	must give due consideration to the following:
4888	(a)  The title insurers' loss experience and prospective
4889	loss experience under closing protection letters and policy
4890	liabilities.
4891	(b)  A reasonable margin for underwriting profit and
4892	contingencies, including contingent liability under s. 637.2075
4893	627.7865, sufficient to allow title insurers, agents, and
4894	agencies to earn a rate of return on their capital that will
4895	attract and retain adequate capital investment in the title
4896	insurance business and maintain an efficient title insurance
4897	delivery system.
4898	(c)  Past expenses and prospective expenses for
4899	administration and handling of risks.
4900	(d)  Liability for defalcation.
4901	(e)  Other relevant factors.
4902	(3)  Rates may be grouped by classification or schedule and
4903	may differ as to class of risk assumed.
4904	(4)  Rates may not be excessive, inadequate, or unfairly
4905	discriminatory.
4906	(5)  The premium applies to each $100 of insurance issued
4907	to an insured.
4908	(6)  The premium rates apply throughout this state.
4909	(7)  The department commission shall, in accordance with
4910	the standards provided in subsection (2), review the premium as
4911	needed, but not less frequently than once every 3 years, and
4912	shall, based upon the review required by this subsection, revise
4913	the premium if the results of the review so warrant.
4914	(8)  The department commission may, by rule, require
4915	licensees under this part to annually submit statistical
4916	information, including loss and expense data, as the department
4917	determines to be necessary to analyze premium rates, retention
4918	rates, and the condition of the title insurance industry.
4919	Section 17.  Section 627.783, Florida Statutes, is
4920	transferred, renumbered as section 637.2065, Florida Statutes,
4921	and amended to read:
4922	637.2065 627.783  Rate deviation.-
4923	(1)  A title insurer may petition the department office for
4924	an order authorizing a specific deviation from the adopted
4925	premium. The petition shall be in writing and sworn to and shall
4926	set forth allegations of fact upon which the petitioner will
4927	rely, including the petitioner's reasons for requesting the
4928	deviation. Any authorized title insurer, agent, or agency may
4929	join in the petition for like authority to deviate or may file a
4930	separate petition praying for like authority or opposing the
4931	deviation. The department office shall rule on all such
4932	petitions simultaneously.
4933	(2)  If, in the judgment of the department office, the
4934	requested deviation is not justified, the department office may
4935	enter an order denying the petition. An order granting a
4936	petition constitutes an amendment to the adopted premium as to
4937	the petitioners named in the order, and is subject to s.
4938	637.2064 627.782.
4939	Section 18.  Section 627.7831, Florida Statutes, is
4940	transferred and renumbered as section 637.2066, Florida
4941	Statutes.
4942	Section 19.  Section 627.784, Florida Statutes, is
4943	transferred and renumbered as section 637.2067, Florida
4944	Statutes.
4945	Section 20.  Section 627.7841, Florida Statutes, is
4946	transferred and renumbered as section 637.2068, Florida
4947	Statutes.
4948	Section 21.  Section 627.7842, Florida Statutes, is
4949	transferred and renumbered as section 637.2069, Florida
4950	Statutes.
4951	Section 22.  Section 627.7843, Florida Statutes, is
4952	transferred and renumbered as section 637.2071, Florida
4953	Statutes.
4954	Section 23.  Section 627.7845, Florida Statutes, is
4955	transferred, renumbered as section 637.2072, Florida Statutes,
4956	and amended to read:
4957	637.2072 627.7845  Determination of insurability required;
4958	preservation of evidence of title search and examination.-
4959	(1)  A title insurer may not issue a title insurance
4960	commitment, endorsement, or title insurance policy until the
4961	title insurer has caused to be made a determination of
4962	insurability based upon the evaluation of a reasonable title
4963	search or a search of the records of a Uniform Commercial Code
4964	filing department office, as applicable, has examined such other
4965	information as may be necessary, and has caused to be made a
4966	determination of insurability of title or the existence,
4967	attachments, perfection, and priority of a Uniform Commercial
4968	Code security interest, including endorsement coverages, in
4969	accordance with sound underwriting practices.
4970	(2)  The title insurer shall cause the evidence of the
4971	determination of insurability and the reasonable title search or
4972	search of the records of a Uniform Commercial Code filing
4973	department office to be preserved and retained in its files or
4974	in the files of its title insurance agent or agency for a period
4975	of not less than 7 years after the title insurance commitment,
4976	title insurance policy, or guarantee of title was issued. The
4977	title insurer or agent or agency must produce the evidence
4978	required to be maintained by this subsection at its departments
4979	offices upon the demand of the department office. Instead of
4980	retaining the original evidence, the title insurer or the title
4981	insurance agent or agency may, in the regular course of
4982	business, establish a system under which all or part of the
4983	evidence is recorded, copied, or reproduced by any photographic,
4984	photostatic, microfilm, microcard, miniature photographic, or
4985	other process which accurately reproduces or forms a durable
4986	medium for reproducing the original.
4987	(3)  The title insurer or its agent or agency must maintain
4988	a record of the actual premium charged for issuance of the
4989	policy and any endorsements in its files for a period of not
4990	less than 7 years. The title insurer, agent, or agency must
4991	produce the record at its department office upon demand of the
4992	department office.
4993	(4)  This section does not apply to an insurer assuming no
4994	primary liability in a contract of reinsurance or to an insurer
4995	acting as a coinsurer if any other coinsuring insurer has
4996	complied with this section.
4997	Section 24.  Section 627.785, Florida Statutes, is
4998	transferred and renumbered as section 637.2073, Florida
4999	Statutes.
5000	Section 25.  Section 627.786, Florida Statutes, is
5001	transferred, renumbered as section 637.2074, Florida Statutes,
5002	and subsection (3) of that section is amended to read:
5003	637.2074 627.786  Transaction of title insurance and any
5004	other kind of insurance prohibited.-
5005	(3)  Subsection (1) does not preclude a title insurer from
5006	providing instruments to any prospective insured, in the form
5007	and content approved by the department office, under which the
5008	title insurer assumes liability for loss due to the fraud of,
5009	dishonesty of, misappropriation of funds by, or failure to
5010	comply with written closing instructions by, its contract
5011	agents, agencies, or approved attorneys in connection with a
5012	real property transaction for which the title insurer is to
5013	issue a title insurance policy.
5014	Section 26.  Section 627.7865, Florida Statutes, is
5015	transferred, renumbered as section 637.2075, Florida Statutes,
5016	and amended to read:
5017	637.2075 627.7865  Title insurer assessments.-As a
5018	condition of doing business in this state, each title insurer
5019	shall be liable for an assessment to pay all unpaid title
5020	insurance claims on real property in this state for any title
5021	insurer which is liquidated with unpaid outstanding claims. The
5022	department office shall assess all title insurers on a pro rata
5023	basis determined by their writings in this state for amounts
5024	necessary to pay the claims. A title insurer is not required to
5025	pay an amount in excess of one-tenth of its surplus as to
5026	policyholders.
5027	Section 27.  Section 627.791, Florida Statutes, is
5028	transferred, renumbered as section 637.2076, Florida Statutes,
5029	and amended to read:
5030	637.2076 627.791  Penalties against title insurers for
5031	violations by persons or entities not licensed.-A title insurer
5032	is subject to the penalties in ss. 637.2017(2) and 637.2021
5033	624.418(2) and 624.4211 for any violation of a lawful order or
5034	rule of the department office or commission, or for any
5035	violation of this chapter code, committed by:
5036	(1)  A person, firm, association, corporation, cooperative,
5037	joint-stock company, or other legal entity not licensed under
5038	this part when issuing and countersigning commitments or
5039	policies of title insurance on behalf of the title insurer.
5040	(2)  An attorney when issuing and countersigning
5041	commitments or policies of title insurance on behalf of the
5042	title insurer.
5043	Section 28.  Section 627.792, Florida Statutes, is
5044	transferred, renumbered as section 637.2077, Florida Statutes,
5045	and amended to read:
5046	637.2077 627.792  Liability of title insurers for
5047	defalcation by title insurance agents or agencies.-A title
5048	insurer is liable for the defalcation, conversion, or
5049	misappropriation by a licensed title insurance agent or agency
5050	of funds held in trust by the agent or agency pursuant to s.
5051	637.3029 626.8473. If the agent or agency is an agent or agency
5052	for two or more title insurers, any liability shall be borne by
5053	the title insurer upon which a title insurance commitment or
5054	policy was issued prior to the illegal act. If no commitment or
5055	policy was issued, each title insurer represented by the agent
5056	or agency at the time of the illegal act shares in the liability
5057	in the same proportion that the premium remitted to it by the
5058	agent or agency during the 1-year period before the illegal act
5059	bears to the total premium remitted to all title insurers by the
5060	agent or agency during the same time period.
5061	Section 29.  Section 627.793, Florida Statutes, is
5062	transferred, renumbered as section 637.2078, Florida Statutes,
5063	and amended to read:
5064	637.2078 627.793  Rulemaking authority.-The department
5065	commission may adopt rules implementing the provisions of this
5066	chapter part.
5067	Section 30.  Section 627.796, Florida Statutes, is
5068	transferred and renumbered as section 637.2079, Florida
5069	Statutes.
5070	Section 31.  Section 627.797, Florida Statutes, is
5071	transferred, renumbered as section 637.2081, Florida Statutes,
5072	and subsection (1) of that section is amended to read:
5073	637.2081 627.797  Exempt title insurance agent list.-
5074	(1)  Every insurer shall file with the department a list
5075	containing the name and address of each appointed agent who is
5076	exempt from licensure under s. 637.3006(4) 626.8417(4) and who
5077	issues or countersigns binders, commitments, title insurance
5078	policies, or guarantees of title.
5079	Section 32.  Section 627.798, Florida Statutes, is
5080	transferred, renumbered as section 637.2082, Florida Statutes,
5081	and amended to read:
5082	637.2082 627.798  Rulemaking authority.-The department may
5083	commission shall by rule adopt rules implementing the provisions
5084	of this part a form to be used to provide notice to a purchaser-
5085	mortgagor that the purchaser-mortgagor is not protected by the
5086	title policy of the mortgagee.
5087	Section 33.  Sections 637.2083, 637.2084, 637.2085,
5088	637.2086, 637.2087, 637.2088, 637.2089, and 637.2091, Florida
5089	Statutes, are created to read:
5090	637.2083  Assets not allowed.-In addition to assets
5091	impliedly excluded by the provisions of s. 625.012, the
5092	following expressly shall not be allowed as assets in any
5093	determination of the financial condition of a title insurer:
5094	(1)  Trade names, patents, agreements not to compete, and
5095	other like intangible assets.
5096	(2)  Advances (other than policy loans) to officers and
5097	directors, whether secured or not, and advances to employees,
5098	agents, and other persons on personal security only.
5099	(3)  Stock of such insurer, owned by it, or any material
5100	equity therein or loans secured thereby, or any material
5101	proportionate interest in such stock acquired or held through
5102	the ownership by such insurer of an interest in another firm,
5103	corporation, or business unit.
5104	(4)  Furniture, fixtures, furnishings, safes, vehicles,
5105	libraries, stationery, literature, and supplies, other than data
5106	processing and accounting systems authorized under s.
5107	625.012(11), except in the case of title insurers such materials
5108	and plants as the insurer is expressly authorized to invest in
5109	under s. 637.20073 and except, in the case of any insurer, such
5110	personal property as the insurer is permitted to hold pursuant
5111	to part II of this chapter, or which is acquired through
5112	foreclosure of chattel mortgages acquired pursuant to s.
5113	625.329, or which is reasonably necessary for the maintenance
5114	and operation of real estate lawfully acquired and held by the
5115	insurer other than real estate used by it for home office,
5116	branch office, and similar purposes.
5117	(5)  The amount, if any, by which the aggregate book value
5118	of investments as carried in the ledger assets of the insurer
5119	exceeds the aggregate value thereof as determined under this
5120	code.
5121	(6)  Bonds, notes, or other evidences of indebtedness which
5122	are secured by mortgages or deeds of trust which are in default.
5123	(7)  Prepaid and deferred expenses.
5124	637.2084  Power to contract; purchase of title insurance by
5125	or for minor.-
5126	(1)  Any person of competent legal capacity may contract
5127	for title insurance.
5128	(2)  Any minor of the age of 15 years or more, as
5129	determined by the nearest birthday, may, notwithstanding his or
5130	her minority, contract for title insurance on his or her own
5131	property.
5132	(3)  If any minor mentioned in subsection (2) is possessed
5133	of an estate that is being administered by a guardian or
5134	curator, such contract shall not be binding upon such estate as
5135	to payment of premiums, except as and when consented to by the
5136	guardian or curator and approved by the probate court of the
5137	county in which the administration of the estate is pending; and
5138	such consent and approval shall be required as to each premium
5139	payment.
5140	637.2085  Charter, bylaw provisions.-A title insurance
5141	policy may not contain any provision purporting to make any
5142	portion of the charter, bylaws, or other constituent document of
5143	the title insurer a part of the contract unless such portion is
5144	set forth in full in the policy. Any policy provision in
5145	violation of this section is invalid.
5146	637.2086  Execution of policies.-
5147	(1)  Every title insurance policy shall be executed in the
5148	name of and on behalf of the insurer by its officer, attorney in
5149	fact, employee, or representative duly authorized by the title
5150	insurer.
5151	(2)  A facsimile signature of any such executing individual
5152	may be used in lieu of an original signature.
5153	(3)  A title insurance contract that is otherwise valid may
5154	not be rendered invalid by reason of the apparent execution
5155	thereof on behalf of the title insurer by the imprinted
5156	facsimile signature of an individual not authorized so to
5157	execute as of the date of the policy.
5158	637.2087  Construction of policies.-
5159	(1)  Every title insurance contract shall be construed
5160	according to the entirety of its terms and conditions as set
5161	forth in the policy and as amplified, extended, or modified by
5162	any application therefor or any rider or endorsement thereto.
5163	(2)  If a title insurer or licensee advertises title
5164	insurance policy in a language other than English, the
5165	advertisements shall not be construed to modify or change the
5166	insurance policy written in English. The advertisement must
5167	disclose that the policy written in English controls in the
5168	event of a dispute and that statements contained in the
5169	advertisement do not necessarily, as a result of possible
5170	linguistic differences, reflect the contents of the policy
5171	written in English. Nothing in this subsection shall affect the
5172	provisions of s. 637.1033 relating to misrepresentations and
5173	false advertising of insurance policies.
5174	637.2088  Payment of judgment by title insurer; penalty for
5175	failure.-
5176	(1)  Every judgment or decree for the recovery of money
5177	entered in any of the courts of this state against any
5178	authorized title insurer shall be fully satisfied within 60 days
5179	after the entry thereof or, in the case of an appeal from such
5180	judgment or decree, within 60 days after the affirmance of the
5181	same by the appellate court.
5182	(2)  If the judgment or decree is not satisfied as required
5183	under subsection (1), and proof of such failure to satisfy is
5184	made by filing with the department a certified transcript of the
5185	docket of the judgment or decree together with a certificate by
5186	the clerk of the court wherein the judgment or decree was
5187	entered that the judgment or decree remains unsatisfied, in
5188	whole or in part, after the time aforesaid, the department shall
5189	forthwith revoke the title insurer's certificate of authority.
5190	The department shall not issue to such insurer any new
5191	certificate of authority until the judgment or decree is wholly
5192	paid and satisfied and proof thereof filed with the department
5193	under the official certificate of the clerk of the court wherein
5194	the judgment was recovered, showing that the same is satisfied
5195	of record, and until the expenses and fees incurred in the case
5196	are also paid by the insurer.
5197	637.2089  Attorney's fee.-
5198	(1)  Upon the rendition of a judgment or decree by any of
5199	the courts of this state against a title insurer and in favor of
5200	any named or omnibus insured or the named beneficiary under a
5201	policy or contract executed by the title insurer, the trial
5202	court or, in the event of an appeal in which the insured or
5203	beneficiary prevails, the appellate court shall adjudge or
5204	decree against the title insurer and in favor of the insured or
5205	beneficiary a reasonable sum as fees or compensation for the
5206	insured's or beneficiary's attorney prosecuting the suit in
5207	which the recovery is had.
5208	(2)  When so awarded, compensation or fees of the attorney
5209	shall be included in the judgment or decree rendered in the
5210	case.
5211	637.2091  Title insurance business exclusive.-
5212	(1)  A domestic title insurer may not engage directly or
5213	indirectly in any business other than the title insurance
5214	business and business activities reasonably and necessarily
5215	incidental to such title insurance business.
5216	(2)  Notwithstanding subsection (1), a title insurer may
5217	engage in business as an escrow agent, and any title insurer may
5218	also engage in the business of making, acquiring, selling,
5219	dealing in, and servicing of real estate mortgage loans and
5220	loans incidental thereto.
5221	(3)  A business trust whose declaration of trust was filed
5222	with the Secretary of State prior to January 1, 1959, and which,
5223	at the time of the adoption of the Florida Insurance Code, held
5224	a certificate of authority as a title insurer may qualify as an
5225	insurer for lawyers' professional liability insurance by
5226	complying with the applicable provisions of the code.
5227	Section 34.  Part III of chapter 637, Florida Statutes,
5228	consisting of sections 637.3001, 637.3002, 637.3003, 637.30041,
5229	637.30042, 637.30043, 637.30044, 637.30045, 637.30046,
5230	637.30047, 637.30048, 637.30049, 637.3005, 637.3006, 637.3007,
5231	637.3008, 637.3009, 637.30093, 637.30094, 637.30095, 637.30096,
5232	637.30097, 637.3011, 637.3012, 637.30125, 637.3013, 637.30133,
5233	637.30135, 637.3014, 637.30142, 637.30143, 637.30144, 637.30145,
5234	637.30146, 637.30147, 637.3015, 637.3016, 637.3017, 637.3018,
5235	637.3019, 637.3021, 637.3022, 637.3023, 637.3024, 637.3025,
5236	637.3026, 637.3027, 637.3028, 637.3029, and 637.30295, is
5237	created and entitled "TITLE INSURANCE AGENT AND AGENCY LICENSING
5238	AND ADMINISTRATION."
5239	Section 35.  Section 626.8412, Florida Statutes, is
5240	transferred, renumbered as section 637.3001, Florida Statutes,
5241	and amended to read:
5242	637.3001 626.8412  License and appointments required.-
5243	(1)  Except as otherwise provided in this part:
5244	(a)  Title insurance business may be conducted sold only by
5245	a title insurer or a licensed title insurance agent employed by
5246	a licensed and appointed title insurance agency or employed by a
5247	title insurer.
5248	(b)  A title insurance agent may not provide sell a title
5249	insurance policy for issued by an insurer for which the agent
5250	and agency does not hold a current appointment.
5251	(2)  Except as otherwise provided in this part, a person,
5252	other than a title insurance agency or an employee of a title
5253	insurance agency, may not perform any of the functions of a
5254	title insurance agency without a title insurance agency license.
5255	(3)  Each title insurance agency shall annually remit the
5256	administrative surcharge required in s. 637.2031(14)(e) prior to
5257	January 30 of each year.
5258	(a)  Noncompliance with the payment of the fees as required
5259	in s. 637.2031(14)(e) shall result in the immediate suspension
5260	of the title insurance agency's appointments to represent an
5261	insurer.
5262	(b)  Absent other cause for suspension, the appointments of
5263	a title insurance agency may be reinstated upon receipt of the
5264	amount due for the administrative surcharge plus any penalties
5265	imposed.
5266	(c)  A penalty may be imposed to reinstate the appointments
5267	of an agency.
5268	Section 36.  Section 626.8413, Florida Statutes, is
5269	transferred, renumbered as section 637.3002, Florida Statutes,
5270	and amended to read:
5271	637.3002 626.8413  Title insurance agents; certain names
5272	prohibited.-After October 1, 1985, A title insurance agent as
5273	defined in s. 626.841 shall not adopt a name which contains the
5274	words "title insurance," "title guaranty," or "title guarantee,"
5275	unless such words are followed by the word "agent" or "agency"
5276	in the same size and type as the words preceding them. This
5277	section does not apply to a title insurer acting as an agent for
5278	another title insurer.
5279	Section 37.  Sections 637.3003, 637.30041, 637.30042,
5280	637.30043, 637.30044, 637.30045, 637.30046, 637.30047,
5281	637.30048, and 637.30049, Florida Statutes, are created to read:
5282	637.3003  Firm, corporate, and business names; officers;
5283	associates; notice of changes.-
5284	(1)  Any licensed title agent doing business under a firm
5285	or corporate name or under any business name other than his or
5286	her own individual name shall, within 30 days after the initial
5287	transaction of insurance under such business name, file with the
5288	department, on forms adopted and furnished by the department, a
5289	written statement of the firm, corporate, or business name being
5290	used, the address of any office or offices or places of business
5291	making use of such name, and the name and social security number
5292	of each officer and director of the corporation and of each
5293	individual associated in such firm or corporation as to the
5294	insurance transactions of such firm or corporation or in the
5295	use of such business name.
5296	(2)  In the event of any change of such name, a change of
5297	any of the officers or directors, a change of any of such
5298	addresses, or a change in the personnel associated with such
5299	firm or corporation, written notice of such change shall be
5300	filed with the department within 30 days by or on behalf of
5301	those licensees terminating any such firm, corporation, or
5302	business name or continuing to operate under such name.
5303	(3)  Within 30 days after a change, any licensed title
5304	insurance agency shall notify the department of any change in
5305	the information contained in the application filed pursuant to s.
5306	637.3007.
5307	637.30041  Insurance agency names; disapproval.-The
5308	department may disapprove the use of any true or fictitious
5309	name, other than the bona fide natural name of an individual, by
5310	any title insurance agency on any of the following grounds:
5311	(1)  The name interferes with or is too similar to a
5312	name already filed and in use by another title insurance agency
5313	or title insurer.
5314	(2)  The use of the name may mislead the public in any
5315	respect.
5316	(3)  The name states or implies that the title insurance
5317	agency is an insurer, motor club, hospital service plan, state
5318	or federal agency, charitable organization, or entity that
5319	primarily provides advice and counsel rather than sells or
5320	solicits title insurance, or is entitled to engage in title
5321	insurance activities not permitted under licenses held or
5322	applied for. This subsection does not prohibit the use of the
5323	word "state" or "states" in the name of the agency. The use of
5324	the word "state" or "states" in the name of an agency does not
5325	imply that the agency is a state agency.
5326	637.30042  Examination requirement; exemptions.-The
5327	department may not issue any license as a title insurance agent
5328	to any individual who has not qualified for, taken, and
5329	passed to the satisfaction of the department a written
5330	examination of the scope prescribed in s. 637.30044.
5331	637.30043  Eligibility; application for examination.-
5332	(1)  A person may not be permitted to take an
5333	examination for license until his or her application for
5334	examination or application for the license has been approved
5335	and the required fees have been received by the department
5336	or a person designated by the department to administer the
5337	examination.
5338	(2)  A person required to take an examination for a license
5339	may be permitted to take an examination prior to submitting an
5340	application for licensure pursuant to s. 637.3006 by submitting
5341	an application for examination through the department's
5342	Internet website. In the application, the applicant shall set
5343	forth:
5344	(a)  His or her full name, age, social security number,
5345	residence address, business address, and mailing address.
5346	(b)  The type of license that the applicant intends to
5347	apply for.
5348	(c)  The name of any required pre-licensing course he or
5349	she has completed or is in the process of completing.
5350	(d)  The method by which the applicant intends to qualify
5351	for the type of license if other than by completing a pre-
5352	licensing course.
5353	(e)  The applicant's gender.
5354	(f)  The applicant's native language.
5355	(g)  The highest level of education achieved by the
5356	applicant.
5357	(h)  The applicant's race or ethnicity. However, the
5358	application must contain a statement that an applicant is not
5359	required to disclose his or her race or ethnicity, gender, or
5360	native language, that he or she will not be penalized for not
5361	making such disclosure, and that the department will use this
5362	information exclusively for research and statistical purposes
5363	and to improve the quality and fairness of the examinations.
5364	(3)  Each application shall be accompanied by payment of
5365	the applicable examination fee.
5366	637.30044  Scope of examination.-
5367	(1)  Each examination for a license as a title insurance
5368	agent, shall be of such scope as is deemed by the department to
5369	be reasonably necessary to test the applicant's ability and
5370	competence and knowledge of title insurance and real property
5371	transactions of the duties and responsibilities of such a
5372	licensee, and of the pertinent provisions of the laws of this
5373	state.
5374	(2)  Examinations must cover title insurance, abstracting,
5375	title searches, examination of title, closing procedures, and
5376	escrow handling.
5377	(3)  This section applies to any person who submits an
5378	application for license and to any person who submits an
5379	application for examination prior to filing an application
5380	for license.
5381	637.30045  Time and place of examination; notice.-
5382	(1)  The department or a person designated by the
5383	department shall mail written notice of the time and place of
5384	the examination to each applicant for examination and each
5385	applicant for license required to take an examination who is
5386	eligible to take the examination as of the examination date. The
5387	notice shall be mailed, postage prepaid, and addressed to the
5388	applicant at his or her address shown on the application for
5389	license or at such other address as requested by the applicant
5390	in writing filed with the department prior to the mailing of the
5391	notice. Notice shall be deemed given when mailed.
5392	(2)  The examination shall be held in an adequate and
5393	designated examination center in this state.
5394	(3)  The department shall make an examination available to
5395	the applicant, to be taken as soon as reasonably possible after
5396	the applicant is eligible to take the examination. Any
5397	examination required under this part shall be available in this
5398	state at a designated examination center.
5399	637.30046  Conduct of examination.-
5400	(1)  The applicant for license or the applicant for
5401	examination shall appear in person and personally take the
5402	examination for license at the time and place specified by
5403	the department or by a person designated by the department.
5404	(2)  The examination shall be conducted by an employee of
5405	the department or a person designated by the department for that
5406	purpose.
5407	(3)  The questions propounded shall be as prepared by the
5408	department, or by a person designated by the department for that
5409	purpose, consistent with the applicable provisions of this code.
5410	(4)  All examinations shall be given and graded in a
5411	fair and impartial manner and without unfair discrimination in
5412	favor of or against any particular applicant.
5413	637.30047  Printing of examinations or related materials to
5414	preserve examination security.-A contract let for the
5415	development, administration, or grading of examinations or
5416	related materials by the department pursuant to the agent,
5417	customer representative, or adjuster licensing and examination
5418	provisions of this code may include the printing or furnishing
5419	of such examinations or related materials in order to preserve
5420	security. Any such contract shall be let as a contract for a
5421	contractual service pursuant to s. 287.057.
5422	637.30048  Examination fee; determination, refund.-
5423	(1)  Prior to being permitted to take an examination, each
5424	applicant who is subject to examination shall pay an examination
5425	fee to the department or a person designated by the department.
5426	A separate and additional examination fee shall be payable for
5427	each separate class of license applied for, notwithstanding that
5428	all such examinations are taken on the same date and at the same
5429	place.
5430	(2)  The fee for examination is not refundable.
5431	637.30049  Reexamination.-
5432	(1)  Any applicant for license or applicant for examination
5433	who has taken an examination and failed to make a passing grade,
5434	or failed to appear for the examination or to take or complete
5435	the examination at the time and place specified in the
5436	notice of the department, may take additional examinations
5437	after filing with the department an application for
5438	reexamination together with applicable fees. The failure of an
5439	applicant to pass an examination or the failure to appear for
5440	the examination or to take or complete the examination does not
5441	preclude the applicant from taking subsequent examinations.
5442	(2)  The department may require any individual whose
5443	license as an agent has expired or has been suspended to pass
5444	an examination prior to reinstating or relicensing the
5445	individual as to any class of license. The examination fee
5446	shall be paid as to each examination.
5447	Section 38.  Section 626.8414, Florida Statutes, is
5448	transferred and renumbered as section 637.3005, Florida
5449	Statutes.
5450	Section 39.  Section 626.8417, Florida Statutes, is
5451	transferred, renumbered as section 637.3006, Florida Statutes,
5452	and subsections (1) and (3) of that section are amended to read:
5453	637.3006 626.8417  Title insurance agent licensure;
5454	exemptions.-
5455	(1)  A person may not act as or hold himself or herself out
5456	to be a title insurance agent as defined in s. 626.841 until a
5457	valid title insurance agent's license has been issued to that
5458	person by the department.
5459	(3)  The department shall not grant or issue a license as
5460	title agent to any individual found by it to be untrustworthy or
5461	incompetent, who does not meet the qualifications for
5462	examination specified in s. 637.3005 626.8414, or who does not
5463	meet the following qualifications:
5464	(a)  Within the 4 years immediately preceding the date of
5465	the application for license, the applicant must have completed a
5466	40-hour classroom course in title insurance, 3 hours of which
5467	shall be on the subject matter of ethics, as approved by the
5468	department, or must have had at least 12 months of experience in
5469	responsible title insurance duties, while working in the title
5470	insurance business as a substantially full-time, bona fide
5471	employee of a title agency, title agent, title insurer, or
5472	attorney who conducts real estate closing transactions and
5473	issues title insurance policies but who is exempt from licensure
5474	pursuant to paragraph (4)(a). If an applicant's qualifications
5475	are based upon the periods of employment at responsible title
5476	insurance duties, the applicant must submit, with the
5477	application for license on a form prescribed by the department,
5478	the affidavit of the applicant and of the employer setting forth
5479	the period of such employment, that the employment was
5480	substantially full time, and giving a brief abstract of the
5481	nature of the duties performed by the applicant.
5482	(b)  The applicant must have passed an any examination for
5483	licensure required under s. 626.221.
5484	Section 40.  Section 626.8418, Florida Statutes, is
5485	transferred, renumbered as section 637.3007, Florida Statutes,
5486	and subsection (1) of that section is amended to read:
5487	637.3007 626.8418  Application for title insurance agency
5488	license.-Prior to doing business in this state as a title
5489	insurance agency, a title insurance agency must meet all of the
5490	following requirements:
5491	(1)  The applicant must file with the department an
5492	application for a license as a title insurance agency, on
5493	printed forms furnished by the department, that includes all of
5494	the following:
5495	(a)  The name of each majority owner, partner, officer, and
5496	director of the agency.
5497	(b)  The residence address of each person required to be
5498	listed under paragraph (a).
5499	(c)  The name of the agency and its principal business
5500	address.
5501	(d)  The location of each title insurance agency office and
5502	the name under which each title insurance agency office conducts
5503	or will conduct business.
5504	(e)  The name of each title insurance agent to be in full-
5505	time charge of a title insurance an agency office and
5506	specification of which title insurance agency office.
5507	(f)  Such additional information as the department requires
5508	by rule to ascertain the trustworthiness and competence of
5509	persons required to be listed on the application and to
5510	ascertain that such persons meet the requirements of this
5511	chapter code.
5512	Section 41.  Section 626.8419, Florida Statutes, is
5513	transferred and renumbered as section 637.3008, Florida
5514	Statutes.
5515	Section 42.  Section 626.842, Florida Statutes, is
5516	transferred and renumbered as section 637.3009, Florida
5517	Statutes.
5518	Section 43.  Sections 637.30093, 637.30094, 637.30095,
5519	637.30096, and 637.30097, Florida Statutes, are created to read:
5520	637.30093  Continuing education required; application;
5521	exceptions; requirements; penalties.-
5522	(1)  The purpose of this section is to establish
5523	requirements and standards for continuing education courses for
5524	persons licensed to solicit or sell title insurance in this
5525	state.
5526	(2)(a)  Each person subject to the provisions of this
5527	section must complete a minimum of 10 hours of continuing
5528	education courses every 2 years in title insurance courses
5529	approved by this state. Each person subject to the provisions
5530	of this section must complete, as part of his or her required
5531	number of continuing education hours, 2 hours of continuing
5532	education, approved by the department, every 2 years on the
5533	subject matter of ethics, rules, or state and federal regulatory
5534	compliance matters relating to title insurance and closing
5535	services.
5536	(b)  Any person who holds a license as a title agent must
5537	complete 10 hours of continuing education courses every 2 years.
5538	(c)  Except as provided in paragraph (d), compliance with
5539	continuing education requirements is a condition precedent to
5540	the issuance, continuation, reinstatement, or renewal of any
5541	appointment subject to this chapter.
5542	(d)  A person teaching any approved course of instruction
5543	or lecturing at any approved seminar and attending the entire
5544	course or seminar shall qualify for the same number of classroom
5545	hours as would be granted to a person taking and successfully
5546	completing such course, seminar, or program. Credit shall be
5547	limited to the number of hours actually taught unless a person
5548	attends the entire course or seminar. Any person who is an
5549	official of or employed by any governmental entity in this
5550	state and serves as a professor, instructor, or in any other
5551	position or office the duties and responsibilities of which are
5552	determined by the department to require monitoring and review of
5553	insurance laws or insurance regulations and practices shall be
5554	exempt from this section.
5555	(e)  Excess classroom hours accumulated during any
5556	compliance period may be carried forward to the next compliance
5557	period.
5558	(f)  For good cause shown, the department may grant an
5559	extension of time during which the requirements imposed by this
5560	section may be completed, but such extension of time may not
5561	exceed 1 year.
5562	(3)  The following courses may be completed in order to
5563	meet the continuing education course requirements:
5564	(a)  In the case of title agents, completion of the
5565	Certified Land Closer (CLC) professional designation program
5566	and receipt of the designation: 24 hours.
5567	(b)  In the case of title agents, completion of the
5568	Certified Land Searcher (CLS) professional designation program
5569	and receipt of the designation: 24 hours.
5570	(c)  Any insurance-related course which is approved by the
5571	department and taught by an accredited college or university per
5572	credit hour granted: 12 hours.
5573	(d)  Any course, including courses relating to agency
5574	management or errors and omissions, developed or sponsored by
5575	any authorized insurer or recognized agents' association or
5576	insurance trade association or any independent study
5577	program of instruction, subject to approval by the department,
5578	qualifies for the equivalency of the number of classroom hours
5579	assigned to such course by the department. However, unless
5580	otherwise provided in this section, continuing education
5581	course hours may not be credited toward meeting the
5582	requirements of this section unless the course is provided
5583	by classroom instruction or results in a monitored examination.
5584	(e)  A monitored examination is not required for:
5585	1.  An independent study program of instruction presented
5586	through interactive, online technology that the department
5587	determines has sufficient internal testing to validate the
5588	student's full comprehension of the materials presented; or
5589	2.  An independent study program of instruction presented on
5590	paper or in printed material that imposes a final closed book
5591	examination that meets the requirements of the department's rule
5592	for self-study courses. The examination may be taken without a
5593	proctor provided the student presents to the provider a sworn
5594	affidavit certifying that the student did not consult any
5595	written materials or receive outside assistance of any kind or
5596	from any person, directly or indirectly, while taking the
5597	examination. If the student is an employee of an agency or
5598	corporate entity, the student's supervisor or a manager or
5599	owner of the agency or corporate entity must also sign the sworn
5600	affidavit. If the student is self-employed, a sole proprietor,
5601	or a partner, or if the examination is administered online, the
5602	sworn affidavit must also be signed by a disinterested third
5603	party. The sworn affidavit must be received by the approved
5604	provider prior to reporting continuing education credits to
5605	the department.
5606	(f)  Each person or entity sponsoring a course for
5607	continuing education credit shall furnish, within 30 days
5608	after completion of the course, in a form satisfactory to the
5609	department or its designee, a written and certified roster
5610	showing the name and license number of all persons
5611	successfully completing such course and requesting credit,
5612	accompanied by the required fee.
5613	(4)  The department shall refuse to renew the appointment
5614	of any agent who has not had his or her continuing education
5615	requirements certified unless the agent has been granted an
5616	extension by the department. The department may not issue a new
5617	appointment of the same or similar type, with any insurer, to an
5618	agent who was denied a renewal appointment for failure to
5619	complete continuing education as required until the agent
5620	completes his or her continuing education requirement.
5621	(5)  An 11-member continuing education advisory board is
5622	created, to be appointed by the Chief Financial Officer.
5623	Appointments shall be for terms of 4 years. The purpose of the
5624	board is to advise the department in determining standards by
5625	which courses may be evaluated and categorized as basic,
5626	intermediate, or advanced. The board shall submit to the
5627	department recommendations of changes needed in such criteria
5628	not less frequently than every 2 years. The department shall
5629	require all approved course providers to submit courses for
5630	approval to the department using the criteria. All materials,
5631	brochures, and advertisements related to the approved courses
5632	must specify the level assigned to the course.
5633	(6)  The department may contract services relative to the
5634	administration of the continuing education program to a private
5635	entity. The contract shall be procured as a contract for a
5636	contractual service pursuant to s. 287.057.
5637	637.30094  Regulation of continuing education for
5638	licensees, course providers, instructors, school officials, and
5639	monitor groups.-
5640	(1)  Continuing education course providers, instructors,
5641	school officials, and monitor groups must be approved by the
5642	department before offering continuing education courses pursuant
5643	to s. 637.30093.
5644	(2)  The department shall adopt rules establishing
5645	standards for the approval, regulation, and operation of the
5646	continuing education programs and for the discipline of
5647	licensees, course providers, instructors, school officials, and
5648	monitor groups. The standards must be designed to ensure that
5649	such course providers, instructors, school officials, and
5650	monitor groups have the knowledge, competence, and integrity to
5651	fulfill the educational objectives of s. 637.30093.
5652	(3)  The department shall adopt rules establishing a
5653	process by which compliance with the continuing education
5654	requirements of s. 637.30093 can be determined, the
5655	establishment of a continuing education compliance period for
5656	licensees, and forms necessary to implement such a process.
5657	637.30095  Regulation of course providers, instructors,
5658	school officials, and monitor groups involved in prelicensure
5659	education for insurance agents and other licensees.-
5660	(1)  Any course provider, instructor, school official, or
5661	monitor group must be approved by and registered with the
5662	department before offering prelicensure education courses for
5663	insurance agents and other licensees.
5664	(2)  The department shall adopt rules establishing standards
5665	for the approval, registration, discipline, or removal from
5666	registration of course providers, instructors, school officials,
5667	and monitor groups. The standards must be designed to ensure
5668	that such persons have the knowledge, competence, and integrity
5669	to fulfill the educational objectives of the prelicensure
5670	requirements of this chapter and chapter 648 and to ensure that
5671	insurance agents and licensees are competent to engage in the
5672	activities authorized under the license.
5673	(3)  The department shall adopt rules to establish a
5674	process for determining compliance with the prelicensure
5675	requirements of this chapter and chapter 648. The department
5676	shall adopt rules prescribing the forms necessary to administer
5677	the prelicensure requirements.
5678	637.30096  Examination results; denial, issuance of
5679	license.-
5680	(1)  Within 30 days after the applicant has completed any
5681	examination required under s. 637.30042, the department or its
5682	designee shall provide a score report and, if the applicant has
5683	received a passing grade, the department shall within such
5684	period notify the applicant and issue and transmit the license
5685	to which such examination related. If the applicant did not make
5686	a passing grade on the examination for a particular license, the
5687	department or its designee shall within such period provide
5688	notice to the applicant to that effect and of the denial of the
5689	license. For an applicant who has completed the examination and
5690	received a passing grade prior to submitting the license
5691	application, the department shall promptly issue the license
5692	applied for as soon as the department approves the application.
5693	(2)  A passing grade on an examination is valid for a
5694	period of 1 year. The department may not issue a license to an
5695	applicant based upon an examination taken more than 1 year prior
5696	to the date an application for a license is filed.
5697	637.30097  Form and contents of licenses in general.-Each
5698	license issued by the department shall be in such form as the
5699	department may designate and must contain the licensee's name,
5700	the licensee's personal identification number, the date of
5701	issuance, and any other information the department deems
5702	necessary to fully identify the licensee and the authority being
5703	granted. The department may by rule require photographs of
5704	applicants as a part of the licensing process.
5705	Section 44.  Section 626.84201, Florida Statutes, is
5706	transferred, renumbered as section 637.3011, Florida Statutes,
5707	and amended to read:
5708	637.3011 626.84201  Nonresident title insurance agents.-
5709	Notwithstanding s. 637.3005(2) 626.8414(2), the department, upon
5710	application and payment of the fees specified in s. 637.2031
5711	624.501, may issue a license as a nonresident title insurance
5712	agent to an individual not a resident of this state in the same
5713	manner applicable to the licensure of nonresident general lines
5714	agents under the provisions of s. 626.741, provided the
5715	individual passes the examination for licensure required under
5716	s. 637.30042 626.221. Nonresident title insurance agents
5717	licensed pursuant to this section must complete the continuing
5718	education requirements of s. 637.30093 626.2815 in the same
5719	manner as resident title insurance agents. Sections 626.742 and
5720	626.743 apply to nonresident title insurance agents.
5721	Section 45.  Section 626.8421, Florida Statutes, is
5722	transferred, renumbered as section 637.3012, Florida Statutes,
5723	and amended to read:
5724	637.3012 626.8421  Number of appointments permitted or
5725	required.-A title agent shall be required to have a separate
5726	appointment as to each insurer by which he or she is appointed
5727	as agent. As a part of each appointment there shall be a
5728	certified statement or affidavit of an appropriate officer or
5729	official of the appointing insurer stating that to the best of
5730	the insurer's knowledge and belief the applicant, or its
5731	principals in the case of a corporation or other legal entity,
5732	has met the requirements of s. 637.3006 626.8417.
5733	Section 46.  Section 637.30125, Florida Statutes, is
5734	created to read:
5735	637.30125  Agent in charge.-
5736	(1)  Each location of a title insurance agency or insurer
5737	at which primary title services as defined in s. 637.1004 are
5738	performed shall have a separate agent in charge. The failure
5739	to designate an agent in charge on a form prescribed by the
5740	department, within 10 working days after an agency's inception
5741	or a change of the agent in charge, is a violation of this
5742	chapter, punishable as provided in s. 637.3018.
5743	(2)  The agent in charge shall accept and be responsible
5744	for the overall operation and management of a title agency
5745	location. The agent in charge's responsibilities may include,
5746	but shall not be limited to, hiring and supervising all
5747	individuals within the location, whether the individuals deal
5748	with the public in the solicitation or negotiation of title
5749	insurance contracts or in the collection or accounting of
5750	moneys.
5751	(3)  An individual must be physically located on a full-
5752	time basis in the same agency office in order to be the agent in
5753	charge of that agency office, and an individual may be
5754	designated as the agent in charge for only one licensed agency
5755	at a single physical location.
5756	(4)  The department may suspend or revoke the license of
5757	the owner, operator, and agent in charge if a title insurance
5758	agency employs, contracts with, or uses the services of a
5759	person who has had a license denied or whose license is
5760	currently suspended or revoked. However, a person who has been
5761	denied a license for failure to pass a required examination
5762	may be employed to perform clerical or administrative functions
5763	for which licensure is not required.
5764	(5)  An agency that has an attorney that is in charge of
5765	the agency shall designate that attorney to be in charge of only
5766	one location of a single licensed title agency.
5767	(6)  The department may adopt rules pursuant to ss.
5768	120.536(1) and 120.54 to implement this section and interpret
5769	the duties and responsibilities of the agent in charge or the
5770	attorney in charge of a licensed title insurance agency.
5771	Section 47.  Section 626.8423, Florida Statutes, is
5772	transferred and renumbered as section 637.3013, Florida
5773	Statutes.
5774	Section 48.  Section 637.30133, Florida Statutes, is
5775	created to read:
5776	637.30133  Consumer protections.-To transact title
5777	insurance, title insurance agents shall comply with consumer
5778	protection laws, including the following, as applicable:
5779	(1)  Continuing education requirements for resident and
5780	nonresident agents, as required in s. 637.30093.
5781	(2)  Fingerprinting requirements for resident and
5782	nonresident agents, as required under s. 626.171 or s.
5783	637.30135.
5784	(3)  Fingerprinting following a department investigation
5785	under s. 637.1019.
5786	(4)  The submission of credit and character reports, as
5787	required by s. 626.171 or s. 626.521.
5788	(5)  Qualifications for licensure as an agent in s.
5789	626.731, s. 626.741, s. 626.785, s. 626.831, s. 626.835, or s.
5790	6378.2077.
5791	(6)  Examination requirements in s. 626.741, s. 626.835,
5792	637.2077, or s. 637.30042.
5793	(7)  Required licensure or registration of insurance
5794	agencies under s. 626.112.
5795	(8)  Requirements for licensure of resident and
5796	nonresident agents in s. 626.112, s. 626.321, s. 626.731, s.
5797	626.741, s. 626.785, s. 626.831, s. 626.835, s. 626.927, or s.
5798	637.2077.
5799	(9)  Any other licensing requirement, restriction, or
5800	prohibition designated a consumer protection by the Chief
5801	Financial Officer, but not inconsistent with the requirements of
5802	Subtitle C of the Gramm-Leach-Bliley Act, 15 U.S.C.A. ss. 6751
5803	et seq.
5804	Section 49.  Section 637.30135, Florida Statutes, is
5805	created to read:
5806	637.30135  Fingerprinting requirements.-If there is a
5807	change in ownership or control of any entity licensed under this
5808	chapter, or if a new partner, officer, or director is employed
5809	or appointed, a set of fingerprints of the new owner, partner,
5810	officer, or director must be filed with the department or office
5811	within 30 days after the change. The acquisition of 10 percent
5812	or more of the voting securities of a licensed entity is
5813	considered a change of ownership or control. The fingerprints
5814	must be taken by a law enforcement agency or other
5815	department-approved entity and be accompanied by the
5816	fingerprint processing fee in s. 637.2031.
5817	Section 50.  Section 626.8427, Florida Statutes, is
5818	transferred and renumbered as section 637.3014, Florida
5819	Statutes.
5820	Section 51.  Sections 637.30142, 637.30143, 637.30144,
5821	637.30145, 637.30146, and 637.30147, Florida Statutes, are
5822	created to read:
5823	637.30142  Payment of fees, taxes for appointment period
5824	without appointment.-
5825	(1)  All initial appointments shall be submitted to the
5826	department on a monthly basis no later than 45 days after the
5827	date of appointment and shall become effective on the date
5828	requested on the appointment form.
5829	(2)  Upon application and qualification for an initial or
5830	renewal appointment and such investigation as the department may
5831	make, if it appears to the department that an individual who was
5832	formerly licensed or is currently licensed but not properly
5833	appointed to represent an insurer or employer and who has
5834	been actively engaged or is currently actively engaged as such
5835	an appointee, but without being appointed as required, the
5836	department, if it finds that such failure to be appointed was an
5837	inadvertent error on the part of the insurer or employer so
5838	represented, may issue or authorize the issuance of the
5839	appointment as applied for but subject to the condition that,
5840	before the appointment is issued, all fees and taxes which
5841	would have been due had the applicant been so appointed during
5842	such current and prior periods, with applicable fees pursuant to
5843	s. 637.2031 for such current and prior periods of appointment,
5844	shall be paid to the department.
5845	(3)(a)  Failure to notify the department within the
5846	required time period shall result in the appointing entity being
5847	assessed a delinquent fee of $250 per appointee. Delinquent fees
5848	shall be paid by the appointing entity and may not be charged to
5849	the appointee.
5850	(b)  Failure to timely renew an appointment by an
5851	appointing entity prior to the expiration date of the
5852	appointment shall result in the appointing entity being assessed
5853	late filing, continuation, and reinstatement fees as prescribed
5854	in s. 637.2031. Such fees shall be paid by the appointing entity
5855	and may not be charged back to the appointee.
5856	637.30143  License or appointment; transferability.-A
5857	license or appointment issued under this part is valid only as
5858	to the person named and is not transferable to any other
5859	person. A licensee or appointee may not allow any other
5860	person to transact insurance by using the license or
5861	appointment issued to such licensee or appointee.
5862	637.30144  Termination of appointment.-
5863	(1)  Subject to an appointee's contract rights, an
5864	appointing entity may terminate its appointment of any appointee
5865	at any time. Except when termination is upon a ground which
5866	would subject the appointee to suspension or revocation of his
5867	or her license and appointment under s. 637.3017 or s. 637.3018,
5868	and except as provided by contract between the appointing entity
5869	and the appointee, the appointing entity shall give to the
5870	appointee at least 60 days' advance written notice of its
5871	intention to terminate such appointment by delivery of such
5872	notice to the appointee in person or by mailing the notice,
5873	postage prepaid, addressed to the appointee at his or her last
5874	address of record with the appointing entity. Notice so mailed
5875	shall be deemed to have been given when deposited in a United
5876	States Postal Service mail depository.
5877	(2)  Within 30 days after terminating the appointment
5878	of an appointee, other than as to an appointment terminated by
5879	the appointing entity's failure to continue or renew the
5880	appointment, the appointing entity shall file with the
5881	department a written notice of the termination, together with
5882	a statement that the appointing entity has given the
5883	appointee notice of the termination as provided in subsection
5884	(1) and shall file with the department the reasons and facts
5885	involved in such termination as required under s. 637.30145.
5886	(3)  Upon termination of the appointment of an appointee by
5887	failure to renew or continue the appointment, the appointing
5888	entity shall:
5889	(a)  File with the department the information required
5890	under s. 637.30145.
5891	(b)  Subject to the exceptions provided under subsection
5892	(1), continue the outstanding contracts transacted by an agent
5893	until the expiration date or anniversary date when the policy is
5894	a continuous policy with no expiration date. This paragraph
5895	shall not be construed to prohibit the cancellation of such
5896	contracts when not otherwise prohibited by law.
5897	(4)  An appointee may terminate the appointment at any
5898	time by giving written or electronic notice of such termination
5899	to the appointing entity, department, or person designated by the
5900	department to administer the appointment process. The department
5901	shall immediately terminate the appointment and notify the
5902	appointing entity of such termination. Such termination shall be
5903	subject to the appointee's contract rights, if any.
5904	(5)  Upon receiving a notice of termination, the department
5905	or person designated by the department to administer the
5906	appointment process shall terminate the appointment.
5907	637.30145  Reasons for termination.-
5908	(1)  Any insurer terminating the appointment of an agent or
5909	managing general agent, whether such termination is by direct
5910	action of the appointing insurer, agent, or employer or by
5911	failure to renew or continue the appointment, shall file with
5912	the department or office a statement of the reasons, if any, for
5913	such termination and the facts relative to such termination. In
5914	the case of a termination of the appointment of an agent, such
5915	information may be filed by the insurer or by the general agent
5916	of the insurer.
5917	(2)  In the case of terminations by failure to renew or
5918	continue the appointment, the information required under
5919	subsection (1) shall be filed with the department or office
5920	within 30 days after the date notice of intention not to renew
5921	or continue was filed with the department or office as required
5922	by this chapter. In all other cases, the information required
5923	under subsection (1) shall be filed with the department or
5924	office within 10 days after notice of the termination was filed
5925	with the department or office.
5926	637.30146  Delinquent agencies; notice of trusteeship.-If
5927	any agent or agency becomes delinquent for 90 days in payment of
5928	accounts owing to the insurer or insurers represented by the
5929	agent or agency and a trusteeship or similar arrangement for the
5930	administration of the affairs of the agent or agency is
5931	instituted, the insurer or insurers involved in such trusteeship
5932	or arrangement shall immediately give written notice of such
5933	trusteeship or arrangement to the department. The notice shall
5934	state the name and address of each such agent, the circumstances
5935	and estimated amount of delinquency, and such other information
5936	as the insurer deems pertinent or as the department may
5937	reasonably require.
5938	637.30147  Procedure for refusal, suspension, or revocation
5939	of license.-If any licensee is convicted of a violation of
5940	this code or a felony, the licenses and appointments of such
5941	person shall be immediately revoked by the department. The
5942	licensee may subsequently request a hearing pursuant to ss.
5943	120.569 and 120.57, and the department shall expedite any such
5944	requested hearing. The sole issue at such hearing shall be
5945	whether the revocation should be rescinded because such person
5946	was not in fact convicted of a violation of this code or a
5947	felony.
5948	Section 52.  Section 626.843, Florida Statutes, is
5949	transferred, renumbered as section 637.3015, Florida Statutes,
5950	and amended to read:
5951	637.3015 626.843  Renewal, continuation, reinstatement,
5952	termination of title insurance agent's appointment.-
5953	(1)  The appointment of a title insurance agent shall
5954	continue in force until suspended, revoked, or otherwise
5955	terminated, but subject to a renewed request filed by the
5956	insurer every 24 months after the original issue date of the
5957	appointment, accompanied by payment of the renewal appointment
5958	fee and taxes as prescribed in s. 637.2031 624.501.
5959	(2)(a)  Renewal of an appointment that is received by the
5960	department or person designated by the department to administer
5961	the appointment process prior to the expiration of an
5962	appointment in the licensee's birth month or license issue date,
5963	whichever applies, may be renewed by the department without
5964	penalty and shall be effective as of the first day of the month
5965	succeeding the month in which the appointment would have
5966	expired.
5967	(b)  Renewal of an appointment that is received by the
5968	department or person designated by the department to administer
5969	the appointment process after the renewal date may be accepted
5970	and effectuated by the department in its discretion if the
5971	appointment, late filing, continuation, and reinstatement fee
5972	accompanies the renewal request pursuant to s. 637.2031. Late
5973	filing fees shall be paid by the appointing entity and may not
5974	be charged to the appointee Title insurance agent appointments
5975	shall be renewed pursuant to s. 626.381 for insurance
5976	representatives in general.
5977	(3)  The appointment issued shall remain in effect for so
5978	long as the appointment represented thereby continues in force
5979	as provided in this section.
5980	Section 53.  Section 626.8433, Florida Statutes, is
5981	transferred and renumbered as section 637.3016, Florida
5982	Statutes.
5983	Section 54.  Section 626.8437, Florida Statutes, is
5984	transferred, renumbered as section 637.3017, Florida Statutes,
5985	and amended to read:
5986	637.3017 626.8437  Grounds for denial, suspension,
5987	revocation, or refusal to renew license or appointment.-
5988	(1)  The department shall deny, suspend, revoke, or refuse
5989	to renew or continue the license or appointment of any title
5990	insurance agent or agency, and it shall suspend or revoke the
5991	eligibility to hold a license or appointment of such person, if
5992	it finds that as to the applicant, licensee, appointee, or any
5993	principal thereof, any one or more of the following grounds
5994	exist:
5995	(a)(1)  Lack of one or more of the qualifications for the
5996	license or appointment as specified in ss. 637.3006, 637.3007,
5997	and 637.3008 626.8417, 626.8418, and 626.8419.
5998	(b)(2)  Material misstatement, misrepresentation, or fraud
5999	in obtaining, or attempting to obtain, the license or
6000	appointment.
6001	(c)(3)  Willful misrepresentation of any title insurance
6002	policy, guarantee of title, binder, or commitment, or willful
6003	deception with regard to any such policy, guarantee, binder, or
6004	commitment, done either in person or by any form of
6005	dissemination of information or advertising.
6006	(d)(4)  Demonstrated lack of fitness or trustworthiness to
6007	represent a title insurer in the issuance of its commitments,
6008	binders, policies of title insurance, or guarantees of title.
6009	(e)(5)  Demonstrated lack of reasonably adequate knowledge
6010	and technical competence to engage in the transactions
6011	authorized by the license or appointment.
6012	(f)(6)  Fraudulent or dishonest practices in the conduct of
6013	business under the license or appointment.
6014	(g)(7)  Misappropriation, conversion, or unlawful
6015	withholding of moneys belonging to title insurers or insureds or
6016	others and received in conduct of business under the license or
6017	appointment.
6018	(h)(8)  Unlawful rebating, or attempting to unlawfully
6019	rebate, or unlawfully dividing, or offering to unlawfully
6020	divide, title insurance premiums, fees, or charges with another,
6021	as prohibited by s. 637.1033(7)(b). 626.9541(1)(h)3.
6022	(i)(9)  Willful failure to comply with, or willful
6023	violation of, any proper order or rule of the department or
6024	willful violation of any provision of this act.
6025	(j)(10)  The licensee if an individual, or the partners if
6026	a partnership, or owner if a sole proprietorship, or the
6027	officers if a corporation, having been found guilty of or having
6028	pleaded guilty or nolo contendere to a felony or a crime
6029	punishable by imprisonment of 1 year or more under the law of
6030	the United States or of any state or under the law of any other
6031	country which involves moral turpitude, without regard to
6032	whether a judgment of conviction has been entered by the court
6033	having jurisdiction of such cases.
6034	(k)  Failure to timely submit data as required by the
6035	department.
6036	(2)  Upon receipt of an information or indictment, the
6037	department shall immediately temporarily suspend any license or
6038	appointment issued under this chapter when the licensee has been
6039	convicted of an insurance or financial-related felony or a crime
6040	involving moral turpitude or a crime punishable by imprisonment
6041	of 1 year or more under the law of any state, territory, or
6042	country. Such suspension shall continue if the licensee has been
6043	found guilty of, or has pleaded guilty or no contest to, the
6044	crime, whether or not a judgment or conviction has been entered,
6045	during a pending appeal. A person may not affect any additional
6046	insurance after suspension of his or her license or appointment.
6047	However, he or she may service the policies effected prior to
6048	such suspension.
6049	Section 55.  Section 626.844, Florida Statutes, is
6050	transferred, renumbered as section 637.3018, Florida Statutes,
6051	and amended to read:
6052	637.3018 626.844  Grounds for discretionary refusal,
6053	suspension, or revocation of license or appointment.-The
6054	department may, in its discretion, deny, suspend, revoke, or
6055	refuse to renew or continue the license or appointment of any
6056	title insurance agent or agency, and it may suspend or revoke
6057	the eligibility to hold a license or appointment of any such
6058	title insurance agent or agency if it finds that as to the
6059	applicant or licensee or appointee, or any principal thereof,
6060	any one or more of the following grounds exist under
6061	circumstances for which such denial, suspension, revocation, or
6062	refusal is not mandatory under s. 637.3017 626.8437:
6063	(1)  Any cause for which issuance of the license or
6064	appointment could have been refused had it then existed and been
6065	known to the department.
6066	(2)  Violation of any provision of this act in the course
6067	of dealing under the license or appointment.
6068	(3)  Violation of any lawful order or rule of the
6069	department.
6070	(4)  Failure or refusal upon demand to pay over to any
6071	title insurer that the appointee represents or has represented
6072	any money coming into the hands of such appointee and belonging
6073	to the title insurer.
6074	(5)  Engaging in unfair methods of competition or in unfair
6075	or deceptive acts or practices in the conduct of business, as
6076	prohibited under part IX of this chapter, or having otherwise
6077	shown himself or herself to be a source of injury or loss to the
6078	public or to be detrimental to the public interest.
6079	(6)  The licensee if an individual, or the partners if a
6080	partnership, or owner if a sole proprietorship, or the officers
6081	if a corporation, having been found guilty of or having pleaded
6082	guilty or nolo contendere to a felony or a crime punishable by
6083	imprisonment of 1 year or more under the law of the United
6084	States or of any state or under the law of any other country,
6085	without regard to whether a judgment of conviction has been
6086	entered by the court having jurisdiction of such cases.
6087	(7)  Failure or refusal upon demand by any title insurer
6088	that the appointee represents or has represented to pay any
6089	money coming into the hands of such appointee and belonging to
6090	the title insurer.
6091	(8)  Failure to maintain the insurer's portion of the
6092	premium in escrow.
6093	(9)  Fraud, misrepresentation, or deceit in any title
6094	insurance transaction.
6095	(10)  Failure to comply with s. 637.3029.
6096	(11)  Failure to account or deliver to any person any
6097	property that has come into the agency's hands and that is not
6098	the agency's property or that the agency is not in law or equity
6099	entitled to retain, under the circumstances and at the time that
6100	has been agreed upon or is required by law or, in the absence of
6101	a fixed time, upon demand of the person entitled to such
6102	accounting and delivery absent a good faith dispute, lack of
6103	mutual instructions, or doubt about entitlement thereto.
6104	(12)  Failure to disburse escrow funds in accordance with
6105	agreements signed by the seller and the buyer absent a good
6106	faith dispute or lack of mutual instructions from the buyer and
6107	seller about entitlement thereto.
6108	(13)  Acting as or holding himself or herself out to be a
6109	title insurance agent or title insurance agency without a
6110	current, active license issued by the Department of Financial
6111	Services.
6112	(14)  Providing a closing protection letter, title
6113	insurance commitment, or title insurance policy for an insurer
6114	that the licensee is not actively appointed to represent.
6115	(15)  Failure to maintain, preserve, and keep available for
6116	examination all books, accounts, or other documents required by
6117	ss. 637.30044-637.3015 and s. 637.3029 and the rules of the
6118	department.
6119	(16)  Failure to allow an investigation or examination of
6120	books and records by the department.
6121	(17)  Adding any amount to the charges of other providers
6122	of service in a real estate transaction without adding value to
6123	the services provided.
6124	(18)  Failure to timely deliver the property deed,
6125	mortgage, and other documents related to a closing transaction
6126	with the appropriate recording authority.
6127	(19)  Failure to timely deliver the escrow funds to the
6128	appropriate entity or to the state if the owner is unable to be
6129	located pursuant to chapter 717.
6130	Section 56.  Section 626.8443, Florida Statutes, is
6131	transferred, renumbered as section 637.3019, Florida Statutes,
6132	and subsection (4) of that section is amended to read:
6133	637.3019 626.8443  Duration of suspension or revocation.-
6134	(4)  During the period of suspension or after revocation of
6135	the license and appointment, the former licensee shall not
6136	engage in or attempt to profess to engage in any transaction or
6137	business for which a license or appointment is required under
6138	this chapter code or directly or indirectly own, control, or be
6139	employed in any manner by any title insurance agent or title
6140	insurance agency or adjuster or adjusting firm.
6141	Section 57.  Section 626.8447, Florida Statutes, is
6142	transferred and renumbered as section 637.3021, Florida
6143	Statutes.
6144	Section 58.  Section 626.845, Florida Statutes, is
6145	transferred and renumbered as section 637.3022, Florida
6146	Statutes.
6147	Section 59.  Section 626.8453, Florida Statutes, is
6148	transferred, renumbered as section 637.3023, Florida Statutes,
6149	and amended to read:
6150	637.3023 626.8453  Penalty for violation.-A person who
6151	knowingly makes a false or otherwise fraudulent application for
6152	a license or appointment under this act, or who knowingly
6153	violates any provision of s. 637.2032 624.5015, ss. 637.3006-
6154	637.3029 626.8417-626.847, or s. 637.2076 627.791, in addition
6155	to any applicable denial, suspension, revocation, or refusal to
6156	renew or continue any license or appointment, commits a
6157	misdemeanor of the second degree, punishable as provided in s.
6158	775.082 or s. 775.083. Each instance of violation shall be
6159	considered a separate offense.
6160	Section 60.  Section 626.8457, Florida Statutes, is
6161	transferred and renumbered as section 637.3024, Florida
6162	Statutes.
6163	Section 61.  Section 626.846, Florida Statutes, is
6164	transferred, renumbered as section 637.3025, Florida Statutes,
6165	and subsection (1) of that section is amended to read:
6166	637.3025 626.846  Probation.-
6167	(1)  If the department finds that one or more grounds exist
6168	for the suspension of, revocation of, or refusal to renew or
6169	continue any license or appointment issued under this act, the
6170	department may, except when an administrative fine is not
6171	permissible under s. 637.3024 626.8457 or when such suspension,
6172	revocation, or refusal is mandatory, in lieu of such suspension,
6173	revocation, or refusal, or in connection with any administrative
6174	monetary penalty imposed under s. 637.3024 626.8457, place the
6175	offending licensee or appointee on probation for a period not to
6176	exceed 2 years, as specified by the department in its order.
6177	Section 62.  Section 626.8463, Florida Statutes, is
6178	transferred, renumbered as section 637.3026, Florida Statutes,
6179	and subsection (1) of that section is amended to read:
6180	637.3026 626.8463  Witnesses and evidence.-
6181	(1)  As to the subject of any examination, investigation,
6182	or hearing being conducted by him or her under s. 637.2032, s.
6183	637.2076, or 624.5015, ss. 637.3006-637.3029 626.8417-626.847,
6184	or s. 627.791, an examiner appointed by the department or office
6185	may administer oaths, examine and cross-examine witnesses, and
6186	receive oral and documentary evidence and shall have the power
6187	to subpoena witnesses, compel their attendance and testimony,
6188	and require by subpoena the production of books, papers,
6189	records, files, correspondence, documents, or other evidence
6190	which the examiner deems relevant to the inquiry.
6191	Section 63.  Section 626.8467, Florida Statutes, is
6192	transferred, renumbered as section 637.3027, Florida Statutes,
6193	and amended to read:
6194	637.3027 626.8467  Testimony compelled; immunity from
6195	prosecution.-
6196	(1)  If a person asks to be excused from attending or
6197	testifying or from producing any books, papers, records,
6198	contracts, documents, or other evidence in connection with any
6199	examination, hearing, or investigation being conducted under s.
6200	637.2032, s. 637.2076, or 624.5015, ss. 637.3006-637.3029
6201	626.8417-626.847, or s. 627.791 by the department or office or
6202	its examiner on the ground that the testimony or evidence
6203	required of the person may tend to incriminate him or her or
6204	subject him or her to a penalty or forfeiture and
6205	notwithstanding is directed to give such testimony or produce
6206	such evidence, the person must, if so directed by the Department
6207	of Financial Services and the Department of Legal Affairs or by
6208	the department office and the Department of Legal Affairs,
6209	nonetheless comply with such direction, but he or she shall not
6210	thereafter be prosecuted or subjected to any penalty or
6211	forfeiture for or on account of any transaction, matter, or
6212	thing concerning which he or she may have so testified or
6213	produced evidence, and no testimony so given or evidence
6214	produced shall be received against the person upon any criminal
6215	action, investigation, or proceeding. However, a person so
6216	testifying shall not be exempt from prosecution or punishment
6217	for any perjury committed by him or her in such testimony, and
6218	the testimony or evidence so given or produced shall be
6219	admissible against him or her upon any criminal action,
6220	investigation, or proceeding concerning such perjury; and such
6221	person shall not be exempt from the refusal, suspension, or
6222	revocation of any license or appointment, permission, or
6223	authority conferred or to be conferred pursuant to s. 637.2032,
6224	s. 637.2076, or 624.5015, ss. 637.3006-637.3029 626.8417-
6225	626.847, or s. 627.791.
6226	(2)  Any such person may execute, acknowledge, and file
6227	with the department of Financial Services or the office, as
6228	appropriate, a statement expressly waiving such immunity or
6229	privilege with respect to any transaction, matter, or thing
6230	specified in the statement, and thereupon the testimony of such
6231	person or such evidence in relation to such transaction, matter,
6232	or thing may be received or produced before any judge or
6233	justice, court, tribunal, or grand jury or otherwise and, if so
6234	received or produced, such person shall not be entitled to any
6235	immunity or privilege on account of any testimony he or she may
6236	so give or evidence so produced.
6237	Section 64.  Section 626.847, Florida Statutes, is
6238	transferred, renumbered as section 637.3028, Florida Statutes,
6239	and amended to read:
6240	637.3028 626.847  Penalty for refusal to testify.-A person
6241	who refuses or fails, without lawful cause, to testify relative
6242	to the affairs of any title insurer or other person when
6243	subpoenaed under s. 637.3026 626.8463 and requested by the
6244	department or office to so testify is guilty of a misdemeanor of
6245	the second degree and, upon conviction, is punishable as
6246	provided in s. 775.082 or s. 775.083.
6247	Section 65.  Section 626.8473, Florida Statutes, is
6248	transferred, renumbered as section 637.3029, Florida Statutes,
6249	and subsections (1) and (6) of that section are amended to read:
6250	637.3029 626.8473  Escrow; trust fund.-
6251	(1)  A title insurance agent may engage in business as an
6252	escrow agent as to funds received from others to be subsequently
6253	disbursed by the title insurance agent in connection with real
6254	estate closing transactions involving the issuance of title
6255	insurance binders, commitments, policies of title insurance, or
6256	guarantees of title, provided that a licensed and appointed
6257	title insurance agent complies with the requirements of s.
6258	637.3006 626.8417, including such requirements added after the
6259	initial licensure of the agent.
6260	(6)  In the event that the department adopts promulgates
6261	rules necessary to implement the requirements of this section
6262	pursuant to s. 637.1007 624.308, the department shall consider
6263	reasonable standards necessary for the protection of funds held
6264	in trust, including, but not limited to, standards for
6265	accounting of funds, standards for receipt and disbursement of
6266	funds, and protection for the person or persons to whom the
6267	funds are to be disbursed.
6268	Section 66.  Section 637.30295, Florida Statutes, is
6269	created to read:
6270	637.30295  Collection of title insurance information.-Each
6271	title insurance agency licensed to do business in this state and
6272	each insurer doing direct, retail, or affiliated business in
6273	this state shall maintain and submit information, including
6274	revenue, loss, and expense data, as the department determines to
6275	be necessary to assist in the analysis of title insurance premium
6276	rates, title search costs, and the condition of the title
6277	insurance industry in this state. This information must be
6278	transmitted to the department no later than March 31 of each
6279	year following the reporting year. The department shall adopt
6280	rules to assist in the collection and analysis of the data from
6281	the title insurance industry.
6282	Section 67.  Paragraphs (a), (e), and (f) of subsection (1)
6283	of section 624.5105, Florida Statutes, are amended to read:
6284	624.5105  Community contribution tax credit; authorization;
6285	limitations; eligibility and application requirements;
6286	administration; definitions; expiration.-
6287	(1)  AUTHORIZATION TO GRANT TAX CREDITS; LIMITATIONS.-
6288	(a)  There shall be allowed a credit of 50 percent of a
6289	community contribution against any tax due for a calendar year
6290	under s. 624.509, or s. 624.510, or s. 637.2039.
6291	(e)  If the credit granted pursuant to this section is not
6292	fully used in any one year because of insufficient tax liability
6293	on the part of the insurer, the unused amount may be carried
6294	forward for a period not to exceed 5 years. The carryover credit
6295	may be used in a subsequent year when the tax imposed by s.
6296	624.509, or s. 624.510, or 637.2039 for such year exceeds the
6297	credit under this section for such year.
6298	(f)  An insurer that claims a credit against premium-tax
6299	liability earned by making a community contribution under this
6300	section need not pay any additional retaliatory tax levied under
6301	s. 624.5091 or s. 637.2041 as a result of claiming such a
6302	credit. Section 624.5091 or s. 637.2041 does not limit such a
6303	credit in any manner.
6304	Section 68.  Subsection (1) of section 624.5107, Florida
6305	Statutes, is amended to read:
6306	624.5107  Child care tax credits.-
6307	(1)  If the credit granted under this section is not fully
6308	used in any one year because of insufficient tax liability on
6309	the part of the insurer, the unused amount may be carried
6310	forward for a period not to exceed 5 years. The carryover credit
6311	may be used in a subsequent year when the tax imposed by s.
6312	624.509, or s. 624.510, or s. 637.2039 for that year exceeds the
6313	credit for which the insurer is eligible in that year under this
6314	section.
6315	Section 69.  Transfers; rules; powers; regulatory
6316	authority; orders.-
6317	(1)  Effective July 1, 2010, the rules of the Financial
6318	Services Commission and the Office of Insurance Regulation with
6319	respect to the regulation of title insurance shall become the
6320	rules of the Department of Financial Services and shall remain
6321	in effect until specifically amended or repealed in the manner
6322	provided by law.
6323	(2)(a)  All of the statutory powers, duties and functions,
6324	records, personnel, property, and unexpended balances of
6325	appropriations, allocations, or other funds for the
6326	administration of chapter 624, Florida Statutes, related to
6327	title insurance, shall be transferred by a type two transfer, as
6328	defined in s. 20.06(2), Florida Statutes, from the Financial
6329	Services Commission and the Office of Insurance Regulation to
6330	the Department of Financial Services.
6331	(b)  All of the statutory powers, duties and functions,
6332	records, personnel, property, and unexpended balances of
6333	appropriations, allocations, or other funds for the
6334	administration of chapter 626, Florida Statutes, related to
6335	title insurance, shall be transferred by a type two transfer, as
6336	defined in s. 20.06(2), Florida Statutes, from the Financial
6337	Services Commission and the Office of Insurance Regulation to
6338	the Department of Financial Services.
6339	(c)  All of the statutory powers, duties and functions,
6340	records, personnel, property, and unexpended balances of
6341	appropriations, allocations, or other funds for the
6342	administration of chapter 627, Florida Statutes, related to
6343	title insurance, shall be transferred by a type two transfer, as
6344	defined in s. 20.06(2), Florida Statutes, from the Financial
6345	Services Commission and the Office of Insurance Regulation to
6346	the Department of Financial Services.
6347	(3)(a)  The transfer of regulatory authority under chapter
6348	624, Florida Statutes, provided by this act shall not affect the
6349	validity of any judicial or administrative action relating to
6350	title insurance pending as of 11:59 p.m. on the day before the
6351	effective date of this act, to which action the Financial
6352	Services Commission or the Office of Insurance Regulation are at
6353	that time parties, and the Department of Financial Services
6354	shall be substituted as a party in interest in any such action.
6355	(b)  The transfer of regulatory authority under chapter
6356	626, Florida Statutes, provided by this act shall not affect the
6357	validity of any judicial or administrative action relating to
6358	title insurance pending as of 11:59 p.m. on the day before the
6359	effective date of this act, to which action the Financial
6360	Services Commission or the Office of Insurance Regulation are at
6361	that time parties, and the Department of Financial Services
6362	shall be substituted as a party in interest in any such action.
6363	(c)  The transfer of regulatory authority under chapter
6364	627, Florida Statutes, provided by this act shall not affect the
6365	validity of any judicial or administrative action relating to
6366	title insurance pending as of 11:59 p.m. on the day before the
6367	effective date of this act, to which action the Financial
6368	Services Commission or the Office of Insurance Regulation are at
6369	that time parties, and the Department of Financial Services
6370	shall be substituted as a party in interest in any such action.
6371	(4)(a)  All lawful orders issued by the Financial Services
6372	Commission or the Office of Insurance Regulation implementing or
6373	enforcing or otherwise in regard to any provision of chapter
6374	624, Florida Statutes, relating to title insurance, issued prior
6375	to the effective date of this act, shall remain in effect and be
6376	enforceable after the effective date of this act, unless
6377	thereafter modified in accordance with law.
6378	(b)  All lawful orders issued by the Financial Services
6379	Commission or the Office of Insurance Regulation, implementing
6380	or enforcing or otherwise in regard to any provision of chapter
6381	626, Florida Statutes, relating to title insurance, issued prior
6382	to the effective date of this act, shall remain in effect and be
6383	enforceable after the effective date of this act, unless
6384	thereafter modified in accordance with law.
6385	(c)  All lawful orders issued by the Financial Services
6386	Commission or the Office of Insurance Regulation, implementing
6387	or enforcing or otherwise in regard to any provision of chapter
6388	627, Florida Statutes, relating to title insurance, issued prior
6389	to the effective date of this act, shall remain in effect and be
6390	enforceable after the effective date of this act, unless
6391	thereafter modified in accordance with law.
6392	Section 70.  The Legislature recognizes that there is a
6393	need to conform the Florida Statutes to the policy decisions
6394	reflected in the provisions of this act. The Division of
6395	Statutory Revision is directed to provide the relevant
6396	substantive committees of the Senate and the House of
6397	Representatives with assistance, upon request, to enable such
6398	committees to prepare draft legislation to conform the Florida
6399	Statutes to the provisions of this act.
6400	Section 71.  Section 689.263, Florida Statutes, is created
6401	to read:
6402	689.263  Sale of residential property; settlement statement
6403	requirements.-A title insurance agent or title insurance agency
6404	may not disburse funds pursuant to a completed purchase and sale
6405	of residential real property without requiring a statement of
6406	settlement costs meeting the following requirements:
6407	(1)  The settlement statement must be executed by the buyer
6408	and the seller.
6409	(2)  If a title insurance premium is to be disbursed, the
6410	title insurer and the title insurance agent or title insurance
6411	agency, if any, must be disclosed.
6412	(3)  A copy of the executed settlement statement must be
6413	delivered to the buyer and the seller.
6414	Section 72.  Section 717.1121, Florida Statutes, is created
6415	to read:
6416	717.1121  Payments from escrow related to real estate
6417	transactions.-All funds held as part of a real estate
6418	transaction, including any outstanding payments for amounts to
6419	be paid as listed on the settlement statement form by any title
6420	insurance agency, title insurer, savings and loan association,
6421	bank, trust company, or other financial institution, attorney
6422	firm, real estate broker, or similar institution, are considered
6423	unclaimed if the owner of those funds has not claimed the money
6424	within 2 years after the closing performed under the real estate
6425	transaction.
6426	Section 73.  Subsection (1) and paragraph (d) of subsection
6427	(2) of section 877.101, Florida Statutes, are amended to read:
6428	877.101  Escrow business by unauthorized persons; use of
6429	name.-
6430	(1)  Except as provided in subsection (2), in connection
6431	with the purchase and sale of real property, a person may not:
6432	(a)  Transact business under any name or title that
6433	contains the word "escrow" or words of similar import; or
6434	(b)1.  Use any name, word, sign, symbol, or device in any
6435	context or in any manner; or
6436	2.  Circulate or use any letterhead, billhead, circular,
6437	paper, or writing of any kind or otherwise advertise or
6438	represent in any manner
6439
6440	that indicates or reasonably implies that the business being
6441	conducted or advertised is the kind or character of business
6442	transacted that is regulated by this state as an escrow agent;
6443	or
6444	(c)  Engage in business as an escrow agent as to funds
6445	received from others to be subsequently disbursed in connection
6446	with real estate closing transactions.
6447	(2)  This section does not apply to:
6448	(d)  A title insurance agent who is licensed pursuant to s.
6449	637.3006 626.8417, a title insurance agency that is licensed
6450	pursuant to s. 637.3007 626.8418, or a title insurer who is
6451	authorized to transact business in this state pursuant to s.
6452	637.2001 624.401.
6453	Section 74.  Section 624.5015, Florida Statutes, is amended
6454	to read:
6455	624.5015  Advance collection of fees and taxes; title
6456	insurers not to pay without reimbursement.-
6457	(1)  The department or the office shall collect in advance
6458	from the applicant or licensee fees and taxes as provided in s.
6459	624.501.
6460	(2)  A title insurer shall not pay directly or indirectly
6461	without reimbursement from a title insurance agent any
6462	appointment fee required under this section. The failure of a
6463	title insurance agent to make reimbursement is not a ground for
6464	cancellation of the title insurance agent's appointment by the
6465	title insurer.
6466	Section 75.  Subsections (7), (8), and (9) of section
6467	626.241, Florida Statutes, are amended to read:
6468	626.241  Scope of examination.-
6469	(7)  Examinations given applicants for licensure as title
6470	agents must cover title insurance, abstracting, title searches,
6471	examination of title, closing procedures, and escrow handling.
6472	(7)(8)  An examination for licensure as a personal lines
6473	agent shall consist of 100 questions and shall be limited in
6474	scope to the kinds of business transacted under such license.
6475	(8)(9)  This section applies to any person who submits an
6476	application for license and to any person who submits an
6477	application for examination prior to filing an application for
6478	license.
6479	Section 76.  Subsection (5) of section 626.331, Florida
6480	Statutes, is amended to read:
6481	626.331  Number of appointments permitted or required.-
6482	(5)  A title agent or title agency license must be limited
6483	to selling title insurance only for the appointing title insurer
6484	or insurers.
6485	Section 77.  Paragraph (a) of subsection (5) of section
6486	197.502, Florida Statutes, is amended to read:
6487	197.502  Application for obtaining tax deed by holder of
6488	tax sale certificate; fees.-
6489	(5)(a)  The tax collector may contract with a title company
6490	or an abstract company at a reasonable fee to provide the
6491	minimum information required in subsection (4), consistent with
6492	rules adopted by the department. If additional information is
6493	required, the tax collector must make a written request to the
6494	title or abstract company stating the additional requirements.
6495	The tax collector may select any title or abstract company,
6496	regardless of its location, as long as the fee is reasonable,
6497	the minimum information is submitted, and the title or abstract
6498	company is authorized to do business in this state. The tax
6499	collector may advertise and accept bids for the title or
6500	abstract company if he or she considers it appropriate to do so.
6501	1.  The ownership and encumbrance report must be printed or
6502	typed on stationery or other paper showing a letterhead of the
6503	person, firm, or company that makes the search, and the
6504	signature of the person who makes the search or of an officer of
6505	the firm must be attached. The tax collector is not liable for
6506	payment to the firm unless these requirements are met.
6507	2.  The tax collector may not accept or pay for any title
6508	search or abstract if no financial responsibility is assumed for
6509	the search. However, reasonable restrictions as to the liability
6510	or responsibility of the title or abstract company are
6511	acceptable. Notwithstanding s. 637.2071(3) 627.7843(3), the tax
6512	collector may contract for higher maximum liability limits.
6513	3.  In order to establish uniform prices for ownership and
6514	encumbrance reports within the county, the tax collector shall
6515	ensure that the contract for ownership and encumbrance reports
6516	include all requests for title searches or abstracts for a given
6517	period of time.
6518	Section 78.  Paragraph (d) of subsection (27) of section
6519	624.501, Florida Statutes, is amended to read:
6520	624.501  Filing, license, appointment, and miscellaneous
6521	fees.-The department, commission, or office, as appropriate,
6522	shall collect in advance, and persons so served shall pay to it
6523	in advance, fees, licenses, and miscellaneous charges as
6524	follows:
6525	(27)  Title insurance agents:
6526	(d)  Additional appointment continuation fee as prescribed
6527	by s. 637.3015 626.843     $5.00
6528	Section 79.  Section 624.604, Florida Statutes, is amended
6529	to read:
6530	624.604  "Property insurance" defined.-"Property insurance"
6531	is insurance on real or personal property of every kind and of
6532	every interest therein, whether on land, water, or in the air,
6533	against loss or damage from any and all hazard or cause, and
6534	against loss consequential upon such loss or damage, other than
6535	noncontractual legal liability for any such loss or damage.
6536	Property insurance may contain a provision for accidental death
6537	or injury as part of a multiple peril homeowner's policy. Such
6538	insurance, which is incidental to the property insurance, is not
6539	subject to the provisions of this code applicable to life or
6540	health insurance. Property insurance does not include title
6541	insurance, as defined in s. 637.1004 624.608.
6542	Section 80.  Paragraph (r) of subsection (1) of section
6543	624.605, Florida Statutes, is amended to read:
6544	624.605  "Casualty insurance" defined.-
6545	(1)  "Casualty insurance" includes:
6546	(r)  Insurance for debt cancellation products.-Insurance
6547	that a creditor may purchase against the risk of financial loss
6548	from the use of debt cancellation products with consumer loans
6549	or leases or retail installment contracts. Insurance for debt
6550	cancellation products is not liability insurance but shall be
6551	considered credit insurance only for the purposes of s.
6552	631.52(4).
6553	1.  For purposes of this paragraph, the term "debt
6554	cancellation products" means loan, lease, or retail installment
6555	contract terms, or modifications to loan, lease, or retail
6556	installment contracts, under which a creditor agrees to cancel
6557	or suspend all or part of a customer's obligation to make
6558	payments upon the occurrence of specified events and includes,
6559	but is not limited to, debt cancellation contracts, debt
6560	suspension agreements, and guaranteed asset protection
6561	contracts. However, the term "debt cancellation products" does
6562	not include title insurance as defined in s. 637.1004 624.608.
6563	2.  Debt cancellation products may be offered by financial
6564	institutions, as defined in s. 655.005(1)(h), insured depository
6565	institutions as defined in 12 U.S.C. s. 1813(c), and
6566	subsidiaries of such institutions, as provided in the financial
6567	institutions codes; by sellers as defined in s. 721.05, or by
6568	the parents, subsidiaries, or affiliated entities of sellers, in
6569	connection with the sale of timeshare interests; or by other
6570	business entities as may be specifically authorized by law, and
6571	such products shall not constitute insurance for purposes of the
6572	Florida Insurance Code.
6573	Section 81.  Subsection (4) of section 625.031, Florida
6574	Statutes, is amended to read:
6575	625.031  Assets not allowed.-In addition to assets
6576	impliedly excluded by the provisions of s. 625.012, the
6577	following expressly shall not be allowed as assets in any
6578	determination of the financial condition of an insurer:
6579	(4)  Furniture, fixtures, furnishings, safes, vehicles,
6580	libraries, stationery, literature, and supplies, other than data
6581	processing and accounting systems authorized under s.
6582	625.012(11), except in the case of title insurers such materials
6583	and plants as the insurer is expressly authorized to invest in
6584	under s. 637.20073 625.330 and except, in the case of any
6585	insurer, such personal property as the insurer is permitted to
6586	hold pursuant to part II of this chapter, or which is acquired
6587	through foreclosure of chattel mortgages acquired pursuant to s.
6588	625.329, or which is reasonably necessary for the maintenance
6589	and operation of real estate lawfully acquired and held by the
6590	insurer other than real estate used by it for home office,
6591	branch office, and similar purposes.
6592	Section 82.  Section 626.207, Florida Statutes, is amended
6593	to read:
6594	626.207  Department rulemaking authority; waiting periods
6595	for applicants; penalties against licensees.-
6596	(1)  The department shall adopt rules establishing specific
6597	waiting periods for applicants to become eligible for licensure
6598	following denial, suspension, or revocation pursuant to s.
6599	626.611, s. 626.621, s. 637.3017 626.8437, s. 637.3018 626.844,
6600	s. 626.935, s. 634.181, s. 634.191, s. 634.320, s. 634.321, s.
6601	634.422, s. 634.423, s. 642.041, or s. 642.043. The purpose of
6602	the waiting periods is to provide sufficient time to demonstrate
6603	reformation of character and rehabilitation. The waiting periods
6604	shall vary based on the type of conduct and the length of time
6605	since the conduct occurred and shall also be based on the
6606	probability that the propensity to commit illegal conduct has
6607	been overcome. The waiting periods may be adjusted based on
6608	aggravating and mitigating factors established by rule and
6609	consistent with this purpose.
6610	(2)  The department shall adopt rules establishing specific
6611	penalties against licensees for violations of s. 626.611, s.
6612	626.621, s. 637.3017 626.8437, s. 637.3018 626.844, s. 626.935,
6613	s. 634.181, s. 634.191, s. 634.320, s. 634.321, s. 634.422, s.
6614	634.423, s. 642.041, or s. 642.043. The purpose of the
6615	revocation or suspension is to provide a sufficient penalty to
6616	deter future violations of the Florida Insurance Code. The
6617	imposition of a revocation or the length of suspension shall be
6618	based on the type of conduct and the probability that the
6619	propensity to commit further illegal conduct has been overcome
6620	at the time of eligibility for relicensure. The revocation or
6621	the length of suspension may be adjusted based on aggravating or
6622	mitigating factors, established by rule and consistent with this
6623	purpose.
6624	Section 83.  Paragraph (t) of subsection (1) of section
6625	655.005, Florida Statutes, is amended to read:
6626	655.005  Definitions.-
6627	(1)  As used in the financial institutions codes, unless
6628	the context otherwise requires, the term:
6629	(t)  "Debt cancellation products" means loan, lease, or
6630	retail installment contract terms, or modifications or addenda
6631	to loan, lease, or retail installment contracts, under which a
6632	creditor agrees to cancel or suspend all or part of a customer's
6633	obligation to make payments upon the occurrence of specified
6634	events and includes, but is not limited to, debt cancellation
6635	contracts, debt suspension agreements, and guaranteed asset
6636	protection contracts offered by financial institutions, insured
6637	depository institutions as defined in 12 U.S.C. s. 1813(c), and
6638	subsidiaries of such institutions. However, the term "debt
6639	cancellation products" does not include title insurance as
6640	defined in s. 637.1004 624.608.
6641	Section 84.  Paragraph (d) of subsection (6) of section
6642	701.041, Florida Statutes, is amended to read:
6643	701.041  Title insurer; mortgage release certificate.-
6644	(6)  LIABILITY OF TITLE INSURER AND TITLE INSURANCE AGENT.-
6645	(d)  Liability of a title insurer pursuant to this section
6646	shall be considered to be a title insurance claim on real
6647	property in this state pursuant to s. 637.2075 627.7865.
6648	Section 85.  Paragraph (d) of subsection (14) of section
6649	721.05, Florida Statutes, is amended to read:
6650	721.05  Definitions.-As used in this chapter, the term:
6651	(14)  "Escrow agent" includes only:
6652	(d)  A title insurance agent that is licensed pursuant to
6653	s. 637.3006 626.8417, a title insurance agency that is licensed
6654	pursuant to s. 637.3007 626.8418, or a title insurer authorized
6655	to transact business in this state pursuant to s. 637.2001
6656	624.401.
6657	Section 86.  Sections 624.4031, 624.608, 626.841, 626.8411,
6658	626.9531, 627.7711, and 627.776, Florida Statutes, are repealed.
6659	Section 87.  This act shall take effect July 1, 2010.

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