HB 1229

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 within the
4	Department of Financial Services; creating s. 624.3095,
5	F.S.; authorizing the department to adopt specified rules
6	relating to title insurance; providing for suspension or
7	revocation of a certificate of authority or license of a
8	title insurer, title insurance agent, or agency for the
9	willful violation of any such rule; creating s. 624.630,
10	F.S.; creating the "Title Insurance Regulatory Reform Act
11	of 2011"; providing legislative findings; providing
12	purpose of the act; providing legislative intent; creating
13	s. 624.632 F.S.; providing powers and duties of the
14	Division of Title Insurance within the Department of
15	Financial Services; providing for a division director;
16	providing organization of the division; creating s.
17	624.633 F.S.; providing that the rules of the Financial
18	Services Commission and the Office of Insurance Regulation
19	with respect to the regulation of title insurance shall
20	become the rules of the Department of Financial Services;
21	creating s. 624.634, F.S.; providing for a type two
22	transfer of statutory powers, duties, functions, records,
23	personnel, property, and unexpended balances of
24	appropriations, allocations, or other funds for the
25	administration of chs. 624, 626, and 627, F.S., related to
26	title insurance, from the Financial Services Commission
27	and the Office of Insurance Regulation to the Department
28	of Financial Services; creating s. 624.635, F.S.;
29	providing that the transfer of regulatory authority shall
30	not affect the validity of any pending judicial or
31	administrative action relating to title insurance;
32	requiring the substitution of the Department of Financial
33	Services as a party in interest in any such action;
34	creating s. 624.636, F.S.; providing that all lawful
35	orders of the Financial Services Commission or the Office
36	of Insurance Regulation relating to title insurance,
37	issued before the effective date of the act, remain in
38	effect and are enforceable after the effective date of the
39	act; creating 624.637, F.S.; requiring the Division of
40	Statutory Revision to assist legislative committees in the
41	preparation of legislation to conform the Florida Statutes
42	to the provisions of the act; creating s. 624.638, F.S.;
43	requiring statutory references in the Florida Insurance
44	Code to the Financial Services Commission, the Department
45	of Financial Services, or the Office of Insurance
46	Regulation relating to title insurance be deemed
47	references to the Title Insurance Division of the
48	Department of Financial Services and be applied
49	accordingly, unless the context clearly requires
50	otherwise; creating s. 624.639 F.S.; requiring the
51	Division of Title Insurance to consult with parties
52	affected by the revisions made in the act and make certain
53	recommendations to the Legislature relating to the
54	regulation of the title insurance industry; amending s.
55	624.4213 F.S.; providing that certain data submitted by a
56	title insurance agent or title insurer is presumed to be a
57	trade secret whether or not so designated; amending s.
58	626.2815, F.S.; specifying continuing education
59	requirements for title insurance agents; authorizing the
60	department to contract with a private entity for services
61	related to continuing education for title insurance
62	agents; amending s. 626.841, F.S.; providing a definition
63	for the term "agent in charge of a title insurance
64	agency;" amending s. 626.8411, F.S.; providing that
65	certain provisions of the Florida Insurance Code relating
66	to branch agencies no longer apply to title insurance
67	agents or agencies; amending s. 626.8417, F.S.; requiring
68	that certain attorney-owned entities that engage in
69	business as a title insurance agency, other than the
70	active practice of law, must be licensed as a title
71	insurance agency with a designated agent in charge;
72	amending s. 626.8418, F.S.; deleting specified financial
73	security and bond requirements relating to an applicant
74	for licensure as a title insurance agency; amending s.
75	626.8419, F.S.; increasing the amount of a fidelity bond
76	that a title insurance agency must file with the
77	department and limiting the amount of the deductible
78	applicable to such bond; creating s. 626.8422, F.S.;
79	specifying requirements that apply to title insurance
80	agencies relating to the designation of an agent in charge
81	at specified locations; providing a penalty for failing to
82	designate an agent in charge under certain circumstances;
83	amending s. 626.8437, F.S.; specifying additional grounds
84	for the denial, suspension, revocation, or refusal to
85	renew the license or appointment of a title insurance
86	agent or agency; amending s. 626.8473, F.S.; requiring an
87	attorney serving as a title or real estate settlement
88	agent to deposit and maintain certain funds in a separate
89	trust account and permit the account to be audited by the
90	applicable title insurer, unless prohibited by the rules
91	of The Florida Bar; amending s. 626.9541, F.S.; providing
92	legislative findings and intent relating to the holding of
93	a Florida Supreme Court case involving prohibitions
94	against title insurers rebating title insurance premiums;
95	expressing legislative intent to override such case by
96	reenacting substantially the same provisions; amending s.
97	627.777, F.S.; providing procedures and requirements
98	relating to the approval or disapproval of title insurance
99	forms by the department; amending s. 627.780, F.S.;
100	conforming a statutory reference; amending s. 627.782,
101	F.S.; requiring title insurance agencies and certain
102	insurers to submit specified information to the department
103	to assist in the analysis of title insurance premium
104	rates, title search costs, and the condition of the title
105	insurance industry; redesignating pt. II, pt. III, pt. IV,
106	and pt. V of ch. 631, F.S., as pt. III, pt. IV, pt. V, and
107	pt. VI of ch. 631, F.S., respectively; creating pt II of
108	ch. 631, F.S., consisting of ss. 631.400, 631.401,
109	631.402, 631.403, 631.404, 631.405, 631.406, 631.407,
110	631.408, 631.409, and 631.410, F.S.; providing legislative
111	findings; providing application; providing definitions;
112	providing procedures and requirements relating to the
113	rehabilitation of an impaired title insurer; providing
114	procedures, requirements, and remedies relating to the
115	liquidation and allocation of assets of an impaired title
116	insurer; authorizing a court to require certain title
117	insurers to assume the policy obligations and liabilities
118	of an impaired title insurer under certain circumstances;
119	specifying requirements and procedures for the imposition
120	of assessments by the department and the payment of
121	assessments by all title insurers relating to the
122	impairment of other title insurers; providing procedures,
123	requirements, and criteria relating to the recovery of
124	assessments for impaired insurers by contributing title
125	insurers; specifying that amounts recovered by a
126	contributing title insurer are to be treated as admitted
127	assets; providing procedures and requirements relating to
128	the liquidation of assets of impaired foreign and alien
129	title insurers; specifying the priority of the
130	distribution of claims from the estate of an impaired
131	title insurer; authorizing the department to adopt rules
132	to administer the provisions of pt. II of ch. 631, F.S.;
133	creating s. 689.263, F.S.; specifying requirements that a
134	title insurance agent or agency must meet in order to
135	distribute funds relating to certain real estate sales or
136	purchases; amending ss. 395.106, 624.488, 627.442,
137	627.974, and 631.252, F.S.; conforming cross-references;
138	reenacting s. 624.488(3), F.S., relating to applicability
139	of specified sections of pt. IV, ch. 626, F.S., to self-
140	insurance funds, to incorporate the amendment to s.
141	626.9541, F.S., in reference thereto; reenacting s.
142	626.8437(8) , F.S., relating to unlawful rebating of title
143	insurance premiums as grounds for denial, suspension,
144	revocation, or refusal to renew a license or appointment,
145	to incorporate the amendment to s. 626.9541, F.S., in
146	reference thereto; reenacting s. 627.776(1)(j), F.S.,
147	relating to applicability to title insurers of provisions
148	that prohibit premium rebates, to incorporate the
149	amendment to s. 626.9541, F.S., in reference thereto;
150	reenacting s. 628.6016(3), F.S., relating to applicability
151	of specified sections of pt. VI, ch. 626, F.S., to
152	assessable mutual insurers, to incorporate the amendment
153	to s. 626.9541, F.S., in reference thereto; providing an
154	effective date.
155
156	Be It Enacted by the Legislature of the State of Florida:
157
158	Section 1.  Paragraph (o) of subsection (2) of section
159	20.121, Florida Statutes, is redesignated as paragraph (p), and
160	paragraph (o) is added to that subsection, to read:
161	20.121  Department of Financial Services.-There is created
162	a Department of Financial Services.
163	(2)  DIVISIONS.-The Department of Financial Services shall
164	consist of the following divisions:
165	(o)  The Division of Title Insurance.
166	Section 2.  Sections 624.3095, 624.630, 624.631, 624.632,
167	624.633, 624.634, 624.635, 624.636, 624.637, 624.638, and
168	624.639, Florida Statutes, are created to read:
169	624.3095  Rules as to title insurance.-
170	(1)  In addition to the authority to adopt rules relating
171	to title insurance authorized elsewhere in the Florida Insurance
172	Code, the department may adopt rules that:
173	(a)  Define the license and appointment requirements for
174	title insurance agents and agencies.
175	(b)  Establish penalty guidelines for enforcing the
176	requirements of the Florida Insurance Code.
177	(c)  Describe the fiduciary responsibilities and duties of
178	title insurers, title insurance agents, and agencies, including,
179	but not limited to, responsibilities and duties related to
180	escrow accounts.
181	(d)  Identify the responsibilities, duties, and
182	designations of the agent in charge of the title insurance
183	agency.
184	(e)  Enable the collection and analysis of information
185	relating to the title insurance business submitted by title
186	insurers, title insurance agents, and agencies.
187	(f)  Set reasonable requirements for the timely recording
188	of documents and the delivery of final title policies.
189	(g)  Set reasonable requirements for the timely
190	disbursement of escrow funds unless a written escrow agreement
191	specifies a longer holding period.
192	(h)  Establish rules for the protection, calculation, and
193	timely remittance of premiums that are owed to title insurers.
194	(i)  Prohibit the markup of the cost of any third-party
195	goods and services that do not add value.
196	(2)  In addition to any other penalty provided for under
197	the Florida Insurance Code for a violation of a rule, a title
198	insurer or title insurance agent or agency is subject to
199	suspension or revocation of a certificate of authority or
200	license, as may be applicable, for the willful violation of any
201	rule.
202	624.630  Short title.-Sections 624.630-624.639 may be cited
203	as the "Title Insurance Regulatory Reform Act of 2011."
204	624.631  Legislative findings; purpose; intent.-
205	(1)  The Legislature finds that a stable real estate
206	marketplace is central to the economic foundations of this state
207	and that the need to achieve certainty in the ownership,
208	transfer, and encumbrance of real property benefits the public
209	and supports regulation of the title insurance industry under
210	this act.
211	(2)  The Legislature finds that a stable and efficient
212	title insurance industry is essential to instilling the
213	confidence demanded by all purchasers of Florida real property
214	in this state and their lenders and investors since such
215	stability and efficiency improves property valuations, lowers
216	borrowing costs, and fosters capital investment in real estate.
217	(3)  The Legislature finds that it is sound public policy
218	to encourage and support the delivery of title insurance
219	products and services statewide and recognizes that this can be
220	achieved most economically by ensuring a solvent industry that
221	is responsive and responsible to all consumers, supportive of
222	the agent delivery business model, and protective of the public
223	land records. Central to this finding is the fact that the
224	public welfare is better served by delivering fiscally sound
225	legal remedies founded in contract law rather than the mere
226	possibility of relief under tort law.
227	(4)  The Legislature recognizes that a single premium title
228	insurance policy provides coverage for many years and that it is
229	fundamentally unfair to the insured and against the public
230	interest for failed insurers to cancel title policies that
231	insure real property interests in this state.
232	(5)  The Legislature, recognizing that a title issuer may
233	deliver primary title services directly or through a licensed
234	and appointed agent or agency, finds that a viable title
235	insurance delivery system requires comprehensive state oversight
236	and uniform regulation of title insurers, agents, and agencies.
237	Accordingly, the Legislature intends to establish the unitary
238	regulation of the title insurance industry by a type two
239	transfer from the Financial Services Commission and the Office
240	of Insurance Regulation to the Department of Financial Services,
241	as provided in this act. The department shall have comprehensive
242	authority to regulate the solvency, education, licensing, and
243	discipline of title insurers, title agents, and title agencies
244	and to establish title insurance premium rates and forms.
245	(6)  The Legislature recognizes that the title insurance
246	industry has a unique compensatory structure that includes
247	unregulated fees for escrow and closing services and regulated
248	premiums for the performance of services related to the primary
249	title insurance obligation. The delivery of these separate but
250	related services is predominated by title insurance agents and
251	agencies that place the title insurance agent at the center of
252	the delivery system. Therefore, it is essential to maintain a
253	sufficient number of title insurance agents in order to promote
254	price competition in the marketplace for escrow and settlement
255	services and foster the availability of these services to all
256	Floridians.
257	(7)  The Legislature finds that the rebating of title
258	insurance premiums and the negotiation of closing service costs
259	are unique issues that require clarification for the protection
260	and benefit of the insurer, agent, and consumer. The Legislature
261	finds that the established premiums for the performance of
262	primary title services, although often paid to an agent under a
263	contract with an agency, actually pay for the performance of
264	joint underwriting functions, including loss mitigation and
265	avoidance and do not pay for direct services to the consumer.
266	The Legislature further finds that negotiating or rebating
267	closing services fees or costs should not be restricted, but
268	that the discounting of premiums by either the title agent or
269	title insurer jeopardizes the solvency of insurers, defeats the
270	goal of maintaining an efficient delivery system for title
271	insurance, and fails to protect consumers.
272	624.632  Division of Title Insurance.-
273	(1)  The Division of Title Insurance shall exercise all
274	powers and duties with respect to title insurance regulation,
275	including those exercised by the Office of Insurance Regulation
276	and the Division of Insurance Agents and Agency Services of the
277	Department of Financial Services before July 1, 2011. The
278	division director shall be appointed by the Chief Financial
279	Officer and shall have experience, education, and expertise in
280	the field of title insurance in this state. The director may
281	also be known and referred to as the Florida Title Insurance
282	Coordinator.
283	(2)  The Division of Title Insurance shall consist of:
284	(a)  The Bureau of Title Insurance Premium Rates and Forms.
285	(b)  The Bureau of Title Insurance Licensing and Education.
286	624.633  Transfer of rules.-Effective October 15, 2011, the
287	rules of the Financial Services Commission and the Office of
288	Insurance Regulation with respect to the regulation of title
289	insurance shall become the rules of the Department of Financial
290	Services and shall remain in effect until specifically amended
291	or repealed in the manner provided by law.
292	624.634  Transfer of statutory powers.-All of the statutory
293	powers, duties, and functions, records, personnel, property, and
294	unexpended balances of appropriations, allocations, or other
295	funds for the administration of chapters 624, 626, and 627,
296	related to title insurance, shall be transferred by a type two
297	transfer, as defined in s. 20.06(2), from the Financial Services
298	Commission and the Office of Insurance Regulation to the
299	Department of Financial Services.
300	624.635  Transfer of regulatory authority.-The transfer of
301	regulatory authority under chapters 624, 626, and 627 provided
302	in this act shall not affect the validity of any judicial or
303	administrative action relating to title insurance pending as of
304	11:59 p.m. on June 30, 2011, to which action the Financial
305	Services Commission or the Office of Insurance Regulation are
306	then parties, and the Department of Financial Services shall be
307	substituted as a party in interest in any such action.
308	624.636  Transfer of orders.-All lawful orders of the
309	Financial Services Commission or the Office of Insurance
310	Regulation implementing, enforcing, or otherwise acting under
311	authority provided under any provision of chapter 624, chapter
312	626, or chapter 627, relating to title insurance, issued before
313	July 1, 2011, shall remain in effect and be enforceable after
314	that date, unless thereafter modified in accordance with law.
315	624.637  Conforming of statutes.-The Legislature recognizes
316	that there is a need to conform the Florida Statutes to the
317	policy decisions reflected in the provisions of this act. The
318	Division of Statutory Revision shall provide the appropriate
319	substantive committees of the Senate and the House of
320	Representatives with assistance, upon request, to enable such
321	committees to prepare draft legislation to conform the Florida
322	Statutes to the provisions of this act.
323	624.638  References to commission, department, and office.-
324	All references in the Florida Insurance Code to the Financial
325	Services Commission, the Department of Financial Services, or
326	the Office of Insurance Regulation that apply to title
327	insurance, or the regulation of title insurers, title agents, or
328	title agencies shall be deemed references to the Title Insurance
329	Division of the Department of Financial Services and shall be
330	applied accordingly, unless the context clearly requires a
331	different construction or application.
332	624.639  Consolidation of chapter.-The Division of Title
333	Insurance is directed to consult with the parties affected by
334	the revisions made in this act and to recommend to the
335	Legislature a plan for consolidating title insurance governance
336	into a single chapter of the Florida Statutes, implementing
337	other recommendations of the Title Insurance Study Advisory
338	Council, and implementing other suggestions to improve the
339	regulation of the title insurance industry.
340	Section 3.  Paragraph (d) is added to subsection (1) of
341	section 624.4213, Florida Statutes, to read:
342	624.4213  Trade secret documents.-
343	(1)  If any person who is required to submit documents or
344	other information to the office or department pursuant to the
345	insurance code or by rule or order of the office, department, or
346	commission claims that such submission contains a trade secret,
347	such person may file with the office or department a notice of
348	trade secret as provided in this section. Failure to do so
349	constitutes a waiver of any claim by such person that the
350	document or information is a trade secret.
351	(d)  Any data submitted by a title insurance agent or title
352	insurer pursuant to s. 627.782 is presumed to be a trade secret
353	under this section whether or not so designated.
354	Section 4.  Paragraph (d) of subsection (3) of section
355	626.2815, Florida Statutes, is amended, paragraph (l) is added
356	to that subsection, and subsection (8) is added to that section,
357	to read:
358	626.2815  Continuing education required; application;
359	exceptions; requirements; penalties.-
360	(3)
361	(d)  Any person who holds a license as a customer
362	representative, limited customer representative, title agent,
363	motor vehicle physical damage and mechanical breakdown insurance
364	agent, crop or hail and multiple-peril crop insurance agent, or
365	as an industrial fire insurance or burglary insurance agent and
366	who is not a licensed life or health insurance agent, shall be
367	required to complete 10 hours of continuing education courses
368	every 2 years.
369	(l)  Any person who holds a license as a title insurance
370	agent must complete a minimum of 10 hours of continuing
371	education courses every 2 years in title insurance and escrow
372	management specific to this state approved by the Division of
373	Title Insurance, which shall include at least 3 hours of
374	continuing education on the subject matter of ethics, rules, or
375	compliance with state and federal regulations relating to title
376	insurance and closing services.
377	(8)  The department may contract with a private entity for
378	services related to the administration, review, or approval of a
379	continuing education program for title insurance agents. The
380	contract shall be procured as a contract for a contractual
381	service pursuant to s. 287.057.
382	Section 5.  Subsection (3) is added to section 626.841,
383	Florida Statutes, to read:
384	626.841  Definitions.-The term:
385	(3)  "Agent in charge of a title insurance agency" means an
386	attorney or a licensed and appointed title insurance agent who
387	is designated as agent in charge pursuant to s. 626.8422.
388	Section 6.  Subsection (1) of section 626.8411, Florida
389	Statutes, is amended to read:
390	626.8411  Application of Florida Insurance Code provisions
391	to title insurance agents or agencies.-
392	(1)  The following provisions of part II, as applicable to
393	general lines agents or agencies, also apply to title insurance
394	agents or agencies:
395	(a)  Section 626.734, relating to liability of certain
396	agents.
397	(b)  Section 626.175, relating to temporary licenses.
398	(c)  Section 626.747, relating to branch agencies.
399	(c)(d)  Section 626.753, relating to sharing of
400	commissions.
401	(d)(e)  Section 626.754, relating to rights of agent
402	following termination of appointment.
403	Section 7.  Paragraph (c) of subsection (4) of section
404	626.8417, Florida Statutes, is amended to read:
405	626.8417  Title insurance agent licensure; exemptions.-
406	(4)
407	(c)  If one or more an attorney or attorneys own a
408	corporation or other legal entity which is doing business as a
409	title insurance agency other than an entity engaged in the
410	active practice of law, the agency must be licensed and
411	appointed as a title insurance agency with an agent in charge
412	designated for the agency.
413	Section 8.  Section 626.8418, Florida Statutes, is amended
414	to read:
415	626.8418  Application for title insurance agency license.-
416	Prior to doing business in this state as a title insurance
417	agency, a title insurance agency must meet all of the following
418	requirements:
419	(1)  The applicant must file with the department an
420	application for a license as a title insurance agency, on
421	printed forms furnished by the department, that includes all of
422	the following:
423	(1)(a)  The name of each majority owner, partner, officer,
424	and director of the agency.
425	(2)(b)  The residence address of each person required to be
426	listed under subsection (1) paragraph (a).
427	(3)(c)  The name of the agency and its principal business
428	address.
429	(4)(d)  The location of each agency office and the name
430	under which each agency office conducts or will conduct
431	business.
432	(5)(e)  The name of each agent to be in full-time charge of
433	an agency office and specification of which office.
434	(6)(f)  Such additional information as the department
435	requires by rule to ascertain the trustworthiness and competence
436	of persons required to be listed on the application and to
437	ascertain that such persons meet the requirements of this code.
438	(2)  The applicant must have deposited with the department
439	securities of the type eligible for deposit under s. 625.52 and
440	having at all times a market value of not less than $35,000. In
441	place of such deposit, the title insurance agency may post a
442	surety bond of like amount payable to the department for the
443	benefit of any appointing insurer damaged by a violation by the
444	title insurance agency of its contract with the appointing
445	insurer. If a properly documented claim is timely filed with the
446	department by a damaged title insurer, the department may remit
447	an appropriate amount of the deposit or the proceeds that are
448	received from the surety in payment of the claim. The required
449	deposit or bond must be made by the title insurance agency, and
450	a title insurer may not provide the deposit or bond directly or
451	indirectly on behalf of the title insurance agency. The deposit
452	or bond must secure the performance by the title insurance
453	agency of its duties and responsibilities under the issuing
454	agency contracts with each title insurer for which it is
455	appointed. The agency may exchange or substitute other
456	securities of like quality and value for securities on deposit,
457	may receive the interest and other income accruing on such
458	securities, and may inspect the deposit at all reasonable times.
459	Such deposit or bond must remain unimpaired as long as the title
460	insurance agency continues in business in this state and until 1
461	year after termination of all title insurance agency
462	appointments held by the title insurance agency. The title
463	insurance agency is entitled to the return of the deposit or
464	bond together with accrued interest after such year has passed,
465	if no claim has been made against the deposit or bond. If a
466	surety bond is unavailable generally, the department may adopt
467	rules for alternative methods to comply with this subsection.
468	With respect to such alternative methods for compliance, the
469	department must be guided by the past business performance and
470	good reputation and character of the proposed title insurance
471	agency. A surety bond is deemed to be unavailable generally if
472	the prevailing annual premium exceeds 25 percent of the
473	principal amount of the bond.
474	Section 9.  Paragraph (a) of subsection (1) of section
475	626.8419, Florida Statutes, is amended to read:
476	626.8419  Appointment of title insurance agency.-
477	(1)  The title insurer engaging or employing the title
478	insurance agency must file with the department, on printed forms
479	furnished by the department, an application certifying that the
480	proposed title insurance agency meets all of the following
481	requirements:
482	(a)  The agency must have obtained a fidelity bond in an
483	amount, not less than $250,000 with a deductible not exceeding 1
484	percent of the bond amount $50,000, acceptable to the insurer
485	appointing the agency. If a fidelity bond is unavailable
486	generally, the department must adopt rules for alternative
487	methods to comply with this paragraph.
488	Section 10.  Section 626.8422, Florida Statutes, is created
489	to read:
490	626.8422  Agent in charge.-
491	(1)  Each location within this state of a title insurance
492	agency or branch office of an insurer where closing services as
493	defined in s. 627.7711, and disbursement of escrow funds or
494	policy issuance services are regularly performed shall have a
495	separate agent in charge designated by the title insurance
496	agency or insurer. The failure of a title insurance agency or
497	insurer to designate an agent in charge, on a form prescribed by
498	the department, within 10 working days after an agency begins
499	business at a location or a makes a change of the agent in
500	charge, is a violation of this chapter, punishable as provided
501	in s. 626.844.
502	(2)  The agent in charge shall perform his or her duties as
503	required in subsection (1) at the location where he or she is
504	agent in charge.
505	(3)  An agency or insurer shall designate an attorney duly
506	admitted to practice law in this state and in good standing with
507	The Florida Bar or a title agent licensed in this state as agent
508	in charge for each location of the agency or insurer as
509	described in subsection (1). In the case of multiple locations
510	where the activities as described in subsection (1) are
511	performed, the agency or insurer shall designate a separate
512	agent in charge for each location.
513	Section 11.  Subsections (11) and (12) are added to section
514	626.8437, Florida Statutes, to read:
515	626.8437  Grounds for denial, suspension, revocation, or
516	refusal to renew license or appointment.-The department shall
517	deny, suspend, revoke, or refuse to renew or continue the
518	license or appointment of any title insurance agent or agency,
519	and it shall suspend or revoke the eligibility to hold a license
520	or appointment of such person, if it finds that as to the
521	applicant, licensee, appointee, or any principal thereof, any
522	one or more of the following grounds exist:
523	(11)  Failure to timely submit data as required by the
524	department.
525	(12)  A licensee has been charged with an insurance or
526	financial-related felony, a crime involving moral turpitude, or
527	a crime punishable by imprisonment of 1 year or more under the
528	law of any state, territory, or country.
529	Section 12.  Subsection (8) is added to section 626.8473,
530	Florida Statutes, to read:
531	626.8473  Escrow; trust fund.-
532	(8)  An attorney shall deposit and maintain all funds
533	received in connection with transactions in which the attorney
534	is serving as a title or real estate settlement agent into a
535	separate trust account that is maintained exclusively for funds
536	received in connection with such transactions and permit the
537	account to be audited by its title insurers, unless maintaining
538	funds in the separate account for a particular client would
539	violate applicable rules of The Florida Bar.
540	Section 13.  Paragraph (h) of subsection (1) of section
541	626.9541, Florida Statutes, is amended to read:
542	626.9541  Unfair methods of competition and unfair or
543	deceptive acts or practices defined.-
544	(1)  UNFAIR METHODS OF COMPETITION AND UNFAIR OR DECEPTIVE
545	ACTS.-The following are defined as unfair methods of competition
546	and unfair or deceptive acts or practices:
547	(h)  Unlawful rebates.-
548	1.  Except as otherwise expressly provided by law, or in an
549	applicable filing with the office, knowingly:
550	a.  Permitting, or offering to make, or making, any
551	contract or agreement as to such contract other than as plainly
552	expressed in the insurance contract issued thereon;
553	b.  Paying, allowing, or giving, or offering to pay, allow,
554	or give, directly or indirectly, as inducement to such insurance
555	contract, any unlawful rebate of premiums payable on the
556	contract, any special favor or advantage in the dividends or
557	other benefits thereon, or any valuable consideration or
558	inducement whatever not specified in the contract;
559	c.  Giving, selling, or purchasing, or offering to give,
560	sell, or purchase, as inducement to such insurance contract or
561	in connection therewith, any stocks, bonds, or other securities
562	of any insurance company or other corporation, association, or
563	partnership, or any dividends or profits accrued thereon, or
564	anything of value whatsoever not specified in the insurance
565	contract.
566	2.  Nothing in paragraph (g) or subparagraph 1. of this
567	paragraph shall be construed as including within the definition
568	of discrimination or unlawful rebates:
569	a.  In the case of any contract of life insurance or life
570	annuity, paying bonuses to all policyholders or otherwise
571	abating their premiums in whole or in part out of surplus
572	accumulated from nonparticipating insurance; provided that any
573	such bonuses or abatement of premiums is fair and equitable to
574	all policyholders and for the best interests of the company and
575	its policyholders.
576	b.  In the case of life insurance policies issued on the
577	industrial debit plan, making allowance to policyholders who
578	have continuously for a specified period made premium payments
579	directly to an office of the insurer in an amount which fairly
580	represents the saving in collection expenses.
581	c.  Readjustment of the rate of premium for a group
582	insurance policy based on the loss or expense thereunder, at the
583	end of the first or any subsequent policy year of insurance
584	thereunder, which may be made retroactive only for such policy
585	year.
586	d.  Issuance of life insurance policies or annuity
587	contracts at rates less than the usual rates of premiums for
588	such policies or contracts, as group insurance or employee
589	insurance as defined in this code.
590	e.  Issuing life or disability insurance policies on a
591	salary savings, bank draft, preauthorized check, payroll
592	deduction, or other similar plan at a reduced rate reasonably
593	related to the savings made by the use of such plan.
594	3.a.  The Legislature finds that in Chicago Title Insurance
595	Co. v. Butler, 70 So. 2d 1210 (Fla. 2000), the Florida Supreme
596	Court, when construing a previous version of this section,
597	concluded that the Legislature did not sufficiently demonstrate
598	an adequate relationship to the public welfare to justify
599	restraining the negotiation of title insurance premiums by
600	prohibiting deviations from the promulgated premiums. By the
601	reenactment of substantially the same prohibitions on rebating
602	premiums in this subparagraph, the Legislature intends to
603	effectively override Chicago Title Insurance. v. Butler and
604	reinstate the previous law. As a rational basis for doing so,
605	the Legislature provides for the court's consideration the
606	detailed public policy rationale supporting those prohibitions
607	in ss. 624.630-627.637.
608	b.  No title insurer, or any member, employee, attorney,
609	agent, or agency thereof, shall pay, allow, or give, or offer to
610	pay, allow, or give, directly or indirectly, as inducement to
611	title insurance, or after such insurance has been effected, any
612	rebate or abatement of the premium or any other charge or fee,
613	or provide any special favor or advantage, or any monetary
614	consideration or inducement whatever.
615	c.b.  Nothing in this subparagraph shall be construed as
616	prohibiting the payment of fees to attorneys at law duly
617	licensed to practice law in the courts of this state, for
618	professional services, or as prohibiting the payment of earned
619	portions of the premium to duly appointed agents or agencies who
620	actually perform services for the title insurer. Nothing in this
621	subparagraph shall be construed as prohibiting a rebate or
622	abatement of an attorney's fee charged for professional
623	services, or that portion of the premium that is not required to
624	be retained by the insurer pursuant to s. 627.782(1), or any
625	other agent charge or fee to the person responsible for paying
626	the premium, charge, or fee.
627	d.c.  No insured named in a policy, or any other person
628	directly or indirectly connected with the transaction involving
629	the issuance of such policy, including, but not limited to, any
630	mortgage broker, real estate broker, builder, or attorney, any
631	employee, agent, agency, or representative thereof, or any other
632	person whatsoever, shall knowingly receive or accept, directly
633	or indirectly, any rebate or abatement of any portion of the
634	title insurance premium or of any other charge or fee or any
635	monetary consideration or inducement whatsoever, except as set
636	forth in sub-subparagraph b.; provided, in no event shall any
637	portion of the attorney's fee, any portion of the premium that
638	is not required to be retained by the insurer pursuant to s.
639	627.782(1), any agent charge or fee, or any other monetary
640	consideration or inducement be paid directly or indirectly for
641	the referral of title insurance business.
642	Section 14.  Section 627.777, Florida Statutes, is amended
643	to read:
644	627.777  Approval of forms.-
645	(1)  A title insurer may not issue or agree to issue any
646	form of title insurance commitment, title insurance policy,
647	other contract of title insurance, or related form until it is
648	filed with and approved by the office. The office may not
649	disapprove a title guarantee or policy form on the ground that
650	it has on it a blank form for an attorney's opinion on the
651	title.
652	(2)  If the form filed for approval is a form certified and
653	adopted by the American Land Title Association at time of
654	filing, the department shall approve or disapprove the form
655	within 180 days after receipt. If the form is not a form
656	certified by the American Land Title Association at time of
657	filing, the department shall approve or disapprove the form
658	within 1 year after receipt.
659	(3)  When the department approves any form, it shall
660	determine if the current rate in effect applies or if the
661	coverages require the adoption of a rule pursuant to s. 627.782.
662	(4)  The department may revoke approval of any form after
663	providing 180 days' notice to the title insurer if the basis for
664	revocation is that the American Land Title Association has
665	decertified a previously approved form.
666	(5)  An insurer may not achieve a competitive advantage
667	over any other insurer, agency, or agent as to rates or forms.
668	If a form or rate is approved for an insurer, the department
669	shall expeditiously approve the forms of other insurers who
670	apply for approval if those forms contain identical coverages,
671	rates, or deviations which have been approved under s. 627.783.
672	Section 15.  Section 627.780, Florida Statutes, is amended
673	to read:
674	627.780  Illegal dealings in premium.-
675	(1)  A person may not knowingly quote, charge, accept,
676	collect, or receive a premium for title insurance other than the
677	premium adopted by the division commission, except as provided
678	in s. 626.9541(1)(h)3.b.
679	(2)  A title insurer may not knowingly accept, collect, or
680	receive any sum as premium for title insurance, if the title
681	insurance is not then provided or is not to be provided, subject
682	to acceptance of the risk, in due course, unless the title
683	insurer promptly enters the sum on its books of account as
684	premium collected in advance.
685	Section 16.  Subsection (8) of section 627.782, Florida
686	Statutes, is amended to read:
687	627.782  Adoption of rates.-
688	(8)  Collection of title insurance information.- Each title
689	insurance agency licensed to do business in this state and each
690	insurer engaging in direct, retail, or affiliated business in
691	this state shall maintain and submit information, including
692	revenue, loss, and expense data, as the department determines
693	necessary to assist in the analysis of title insurance premium
694	rates, title search costs, and the condition of the title
695	insurance industry in this state. This information must be
696	transmitted annually after the reporting year to the department
697	no later than March 31. The department shall adopt rules to
698	assist in the collection and analysis of the data from the title
699	insurance industry The commission may, by rule, require
700	licensees under this part to annually submit statistical
701	information, including loss and expense data, as the department
702	determines to be necessary to analyze premium rates, retention
703	rates, and the condition of the title insurance industry.
704	Section 17.  Parts II, III, IV, and V of chapter 631,
705	Florida Statutes, are redesignated as parts III, IV, V, and VI,
706	respectively, and a new part II, consisting of sections 631.400,
707	631.401, 631.402, 631.403, 631.404, 631.405, 631.406, 631.407,
708	631.408, 631.409, and 631.410, Florida Statutes, is created to
709	read:
710	631.400  Legislative findings; application.-
711	(1)  The Legislature finds:
712	(a)  That title insurance policies differ from most other
713	types of insurance in that the title insurance policy provides
714	protection for many years based on a single premium paid at the
715	time of issuance. This is in contrast to most other lines of
716	insurance, which are paid annually.
717	(b)  That the practice under part I of chapter 631 of
718	terminating title insurance policies after notice without making
719	reservation for future potential claims is highly prejudicial to
720	an insured, who often does not know or have any way of
721	determining at the time of termination that a claim under their
722	policy may arise many years in the future, and that, therefore,
723	the termination of a policy adversely shifts the burden for
724	paying a claim from the assets of the title insurer to the
725	assets of lower classes of creditors.
726	(c)  Where an impaired title insurer has issued policies in
727	this state and other jurisdictions, the policyholders in each
728	jurisdiction equitably have a claim against the pro rata portion
729	of assets, with the proration based on the best actuarial
730	estimate of the policy obligations in each jurisdiction.
731	(d)  Because title insurance policies are essential to a
732	strong real estate economy, there is a public policy purpose in
733	supplementing the pro rata allocation of assets of an impaired
734	title insurer with a surcharge on Florida title insurance
735	transactions in this state in order to provide a mechanism to
736	ensure the continuing viability of policy obligations in this
737	state and payment of claims in accord with policy terms over the
738	life of the policy.
739	(e)  The additional protections provided for policy
740	obligations in this state through assessments, assumption of
741	policy obligations, and surcharges on title policies under this
742	part must be implemented in a way that ensures that the assets
743	of an impaired title insurer are allocated fairly without
744	discrimination as to all policyholders and that the surcharge on
745	policies in this state does not directly or indirectly subsidize
746	policies in other jurisdictions.
747	(f)  The facts and circumstances surrounding an impaired
748	title insurer are unique and make it impossible to anticipate
749	every possible scenario. Accordingly, a court supervising the
750	liquidation of a title insurer must be accorded great latitude
751	and flexibility in exercising legal and equitable powers
752	designed to balance the many competing interests while at the
753	same time advancing the public policy goals of continuing the
754	bargained for coverage and minimizing the effect of assessments
755	or surcharges on a business, the solvency of other title
756	insurers, and the overall economy.
757	(2)  Where an impaired or insolvent insurer is a title
758	insurer, the provisions and procedures of part I shall be
759	modified and supplemented as provided in this part.
760	631.401  Definitions.-For purposes of this part, the
761	definitions contained in part I shall be modified and
762	supplemented as follows:
763	(1)  "Contributing title insurer" means a title insurer who
764	has assumed policy obligations pursuant to s. 631.404 or paid an
765	assessment pursuant to s. 631.405.
766	(2)  "Contribution amount" is, as to each contributing
767	title insurer, the sum of assessments paid pursuant to s.
768	631.405 and the actuarial estimate of the policy obligations
769	assumed pursuant to s. 631.404.
770	(3)  "Florida policy obligation" means all unsatisfied or
771	unceded obligations of an impaired title insurer, under:
772	(a)  Title insurance policies insuring interests in real
773	property in this state.
774	(b)  Policies insuring interests under the uniform
775	commercial code, where the underlying personal property is
776	normally or predominantly located in this state.
777	(c)  Closing protection letters or insured closing letters
778	issued in connection with a transaction involving real property
779	in this state.
780	(d)  Any reinsurance policy, assumption agreement, and
781	reinsurance certificate, reinsuring title insurance policies
782	issued with regard to real property in this state or personal
783	property that is normally or predominantly located in this
784	state.
785	(4)  "Florida portion of assets" means an amount equal to
786	an impaired title insurer's total general assets reduced by the
787	Class 1 costs of administration, multiplied by a fraction, the
788	numerator of which is the actuarially determined liability for
789	the impaired title insurer's Florida policy obligations and the
790	denominator of which is the actuarially determined liability for
791	the impaired title insurer's total policy obligations.
792	(5)  "Foreign ancillary administrator" means, for reference
793	purposes, any receiver, administrator, or liquidator appointed
794	by a court of another state or nation with regard to the
795	rehabilitation or liquidation of a domestic title insurer.
796	(6)  "Impaired title insurer" means a title insurer which
797	meets the standards for an impairment of capital, impairment of
798	surplus, or insolvency or other conditions permitting
799	rehabilitation or liquidation as provided in part I or this
800	part.
801	(7)  "Policy obligations" means the unsatisfied or unceded
802	liability of a title insurer for:
803	(a)  Outstanding title insurance policies insuring
804	interests in real property, wherever located;
805	(b)  Policies insuring interests under the uniform
806	commercial code;
807	(c)  Closing protection letters or insured closing letters
808	issued in connection with a transaction involving real property
809	wherever located; and
810	(d)  Obligations under any reinsurance policy, assumption
811	agreement, and reinsurance certificate, reinsuring title
812	insurance policies.
813	(8)  "Primary administrator" means the receiver or
814	liquidator, however termed, of a foreign or alien title insurer
815	appointed pursuant to the law of its domiciliary jurisdiction.
816	(9)  "Primary proceeding" means the judicial,
817	administrative, or other proceeding effecting the rehabilitation
818	or liquidation of an alien or foreign title insurer in its
819	domiciliary jurisdiction.
820	(10)  "Title insurer" has the meaning ascribed in s.
821	624.608 and also includes any entity which has surrendered its
822	certificate of authority or ceased to qualify as a title insurer
823	since January 1, 2009.
824	(11)  "Total policy obligation" means all unsatisfied or
825	unceded policy obligations of an impaired title insurer.
826	631.402  Rehabilitation of title insurer.-
827	(1)  After the entry of an order of rehabilitation pursuant
828	to part I, the receiver shall review the condition of the
829	impaired title insurer and file a plan of rehabilitation with
830	the court.
831	(2)  The plan of rehabilitation shall be approved only if
832	the court finds both that the impaired title insurer is capable
833	of continuing the management and payment of its policy
834	obligations in this state during rehabilitation and that there
835	is a reasonable likelihood that the impaired title insurer will
836	be able to exit rehabilitation as a financially stable title
837	insurer.
838	(3)  The plan of rehabilitation shall provide that all
839	policy obligations of the impaired title insurer shall remain in
840	force.
841	(4)  The department may prohibit or limit the issuance of
842	new policies during rehabilitation or condition the issuance of
843	new policies on such terms and conditions as it deems
844	appropriate to protect the solvency of the impaired title
845	insurer and the new policyholders. Terms and conditions may
846	include requiring reinsurance of policy and closing protection
847	letter liabilities.
848	(5)  An assessment under s. 631.405 or a surcharge under s.
849	631.406 shall not be levied as to an impaired insurer in
850	rehabilitation.
851	631.403  Liquidation of title insurer.-
852	(1)  The department or a receiver may apply to the court
853	for an order appointing it as receiver if its appointment as
854	receiver is not then in effect and directing it to liquidate the
855	business and assets of an impaired title insurer if it
856	determines that rehabilitation is not appropriate or has not
857	been successful and such insurer satisfies any of the grounds
858	for rehabilitation provided in s. 631.051 or any of the grounds
859	for liquidation provided in s. 631.061.
860	(2)  In liquidation, all policy obligations in this state
861	of the impaired title insurer shall remain in force. The
862	continuation of policy obligations in other jurisdictions is to
863	be determined under the laws of the respective jurisdiction
864	after consultation with the regulator or foreign ancillary
865	administrator in the affected jurisdiction.
866	(3)  Any or all assets of the impaired title insurer may be
867	liquidated. If policy obligations in this state are assumed or
868	assessments made under this part, this state's portion of assets
869	shall be made available as an offset or partial repayment.
870	(4)  The portion of assets of other jurisdictions shall be
871	made available pro rata to the foreign ancillary administrator
872	or regulator of the various jurisdictions in which the impaired
873	insurer has policy obligations.
874	(a)  The pro rata allocation of another jurisdiction's
875	portion of assets shall be based on the actuarially determined
876	liability for the impaired title insurer's policy obligations in
877	each affected jurisdiction.
878	(b)  The amount allocated to any jurisdiction shall not
879	exceed the estimated administrative costs in that jurisdiction
880	and the estimated cost of resolving policy claims in the
881	jurisdiction under the applicable law.
882	(5)  As provided in section 631.404, the court may order,
883	as it deems necessary and appropriate, all of the impaired title
884	insurer's policy obligations in this state to be assumed.
885	(6)  The liquidator must require an actuarial estimate to
886	be made of the policy obligations of the impaired insurer in
887	each jurisdiction in which the insurer has issued policies. Upon
888	approval by the court, those actuarial estimates must be used
889	for all computations under this part.
890	631.404  Continuation of policy obligations; authority of
891	court to order assumption of policy obligations and other
892	remedies in liquidation.-
893	(1)  The law of this state has long provided that as a
894	condition of doing business in this state, each title insurer
895	shall be liable for an assessment to pay all unpaid title
896	insurance claims for any title insurer that is liquidated. In
897	addition, and as a further condition for doing business in this
898	state, each title insurer shall be obligated to assume
899	liabilities and handle claims for policy obligations in this
900	state of an impaired title insurer in liquidation or to comply
901	with requirements pertaining to any other similar remedy or
902	structure ordered by the court pursuant to this part, including
903	but not limited to, those described in this section.
904	(2)  The court, without limiting the scope of its authority
905	to do equity and impose a workable resolution on solvent title
906	insurers, may include any of the following elements in its
907	orders:
908	(a)  Authorizing the department to waive liquidity and
909	solvency standards for up to 120 days so as to permit an
910	impaired title insurer to continue to do business, while
911	ordering the sale of the impaired title insurer as a going
912	concern.
913	(b)  After distribution of information reasonably necessary
914	to permit informed bids, soliciting bids on how much the bidder
915	would be willing to pay or would have to receive as a condition
916	to assuming all of the policy obligations in this state. A
917	person who is not a title insurer may bid to assume the
918	obligations of the impaired title insurer only if the person
919	commits to adequately capitalize and obtain a certificate of
920	authority or become a domestic insurer within 90 days after the
921	acceptance of the person's bid.
922	1.  The assumption of the policy obligations may be coupled
923	with the acquisition of some or all of the assets of the
924	impaired title insurer.
925	2.  If the best bid would require the payment of additional
926	funds to the acquiring person, the amount of additional funds
927	required shall be immediately assessed pro rata among the other
928	title insurers as provided in section 631.405.
929	3.  The court may direct the successful bidder to take over
930	the claims phone numbers of the impaired title insurer and to
931	cause mail to be forwarded from the claims address of the
932	impaired title insurer to an appropriate address of the
933	successful bidder.
934	(c)  Directing the liquidator or department to assign each
935	of the policy obligations of the impaired title insurer in this
936	state pro rata to a specific title insurer and ordering each
937	title insurer to assume the assigned obligations.
938	1.  In making the assignments of specific policy
939	obligations, the liquidator or department shall attempt to make
940	a pro rata allocation of each class or type of obligation for
941	each policy year, net of any reinsurance affecting a policy or
942	group of policies. In making assignments the liquidator or
943	department shall attempt to take into account any internal risk
944	retention limits of a title insurer. No title insurer shall be
945	required to assume a policy liability where the face amount, net
946	of applicable reinsurance, exceeds the maximum policy it is
947	authorized to write in this state.
948	2.  The liquidator or department shall make a list of all
949	policy obligations in this state that are assigned and provide
950	the list to each title insurer that assumes any of the policy
951	obligations in this state of the impaired title insurer.
952	3.  The court may direct any title insurer to take over the
953	phone number of an impaired title insurer and to cause mail to
954	be forwarded from the claims address of the impaired title
955	insurer and be responsible for directing any claims to the
956	appropriate title insurer.
957	(d)  Such other procedures, structures, and remedies as the
958	court may deem appropriate under the circumstances.
959	(3)  As to any policy obligations assumed, the assuming
960	title insurer is subrogated to all rights of the impaired title
961	insurer.
962	(4)  Title insurers other than the impaired title insurer
963	are not a necessary party to a liquidation or a receivership
964	proceeding; however, each title insurer potentially liable for
965	assessments or assumption of policy obligations in this state
966	under this part shall receive notice and an opportunity to be
967	heard in those portions of the liquidation proceeding dealing
968	with the setting of assessments or assumption of policy
969	obligations.
970	(5)  A title insurer assuming policy obligations in this
971	state under this part shall not be required to set aside
972	additional reserves under s. 625.111(1)(b) as to the obligations
973	assumed, but the obligations assumed shall be included in
974	determining actuarially required reserves under s.
975	625.111(1)(c).
976	631.405  Assessment of title insurers.-If an assessment is
977	made pursuant to s. 627.7865 or this part:
978	(1)  The assessment must be in an aggregate amount approved
979	by the court.
980	(2)  The department must assess all title insurers, other
981	than the impaired insurer, on a pro rata basis calculated on the
982	total title insurance gross premiums written in this state,
983	excluding premiums on reinsurance, as reported to the department
984	for the most recent calendar year. If multiple proceedings are
985	pending simultaneously, the assessments from each proceeding
986	shall be aggregated. A title insurer shall not be required to
987	pay an amount, net of reimbursements previously repaid under s.
988	631.406, in excess of one-tenth of its surplus as to
989	policyholders as to all impaired title insurers. The department
990	may exempt or limit the assessment of a title insurer if such
991	assessment would result in a reduction of surplus as to
992	policyholders below the minimum required to maintain the title
993	insurer's certificate of authority in this state.
994	(3)  Assessments shall be paid to the receiver within 90
995	days after notice of the assessment or pursuant to a quarterly
996	installment plan approved by the receiver. Any title insurer
997	that elects to pay an assessment on an installment plan shall
998	also pay a financing charge to be determined by the receiver.
999	(4)  Assessments and emergency assessments once ordered by
1000	the department shall be considered assets of the estate and
1001	subject to the provisions of s. 631.154.
1002	631.406  Recovery of assessments and assumed policy
1003	obligations.-
1004	(1)  Each contributing title insurer shall be entitled to
1005	be reimbursed for its contribution amount together with interest
1006	from a surcharge to be established under this section. In
1007	determining the amount to be reimbursed, the following shall be
1008	treated as a reduction of each title insurer's contribution
1009	amount and accrued interest:
1010	(a)  The value of any assets or reserves transferred to a
1011	contributing title insurer. The court shall make a finding as to
1012	the value of any assets or reserves transferred as part of the
1013	liquidation proceeding.
1014	(b)  All amounts distributed from the estate of the
1015	impaired title insurer to that contributing title insurer.
1016	(c)  Amounts previously repaid from surcharges.
1017	(2)  Upon the making of any assessment under s. 631.405 or
1018	a court ordering the assumption of policy obligations in this
1019	state under s. 631.404, the department shall order a surcharge
1020	on each title insurance policy thereafter issued insuring an
1021	interest in real property in this state in an amount determined
1022	by the court. The court shall set the per transaction surcharge
1023	at an amount estimated to generate sufficient funds to reimburse
1024	the contribution amount of every contributing title insurer, net
1025	of estimated liquidation or sale proceeds of the impaired title
1026	insurer, over a period of not more than 5 years. The amount of
1027	the per transaction surcharge ordered under this section shall
1028	not exceed $25 per transaction for each impaired title insurer.
1029	If additional surcharges are occasioned by additional title
1030	insurers becoming impaired, the department shall order an
1031	increase in the amount of the surcharge to reflect the aggregate
1032	surcharge ordered by all courts.
1033	(a)  The party responsible for payment of title insurance
1034	premium, unless otherwise agreed between the parties, shall be
1035	responsible for the payment of the surcharge. A surcharge shall
1036	not be due or owing as to any policy of title insurance issued
1037	at the simultaneous issue rate. For all other purposes, the
1038	surcharge shall be considered a governmental assessment to be
1039	separately stated on any settlement statement. The surcharge is
1040	not subject to premium tax or reserve requirements under chapter
1041	625.
1042	(b)  Each title insurance agent and agency shall collect
1043	the surcharge as to each title insurance policy written and
1044	timely remit the surcharge to the title insurer issuing the
1045	policy. Each title insurer shall collect the surcharge as to
1046	each title insurance policy written by it directly to an
1047	insured.
1048	(c)  Each title insurer shall remit all surcharges
1049	collected to the department on a monthly basis within 10 days
1050	after the end of each month. At least monthly, the department
1051	shall disburse the surcharges received pro rata to each
1052	contributing title insurer until that title insurer's full
1053	contribution amount, together with interest has been repaid.
1054	(3)  When the department has disbursed surcharge proceeds
1055	sufficient to reimburse each contributing title insurer's
1056	contribution amount with interest, the department shall
1057	immediately terminate future surcharges. Any excess surcharges
1058	collected shall be deemed properly collected and remitted to the
1059	department for deposit into the Insurance Regulatory Trust Fund.
1060	(4)  At any time before the termination of the surcharge, a
1061	contributing title insurer may petition the court for a
1062	modification of the contribution amount to be reimbursed based
1063	upon a showing that it has experienced claims significantly in
1064	excess of the actuarial estimate with regard to policies
1065	assumed.
1066	631.407  Treatment of recovery amounts as admitted assets.-
1067	The future right for each contributing title insurer to be
1068	reimbursed for its contribution amount under s. 631.406(1) shall
1069	be booked as a receivable at face value and treated for all
1070	purposes as an admitted asset without limitation as to a
1071	percentage of reserves or any requirement for diversification.
1072	631.408  Application to foreign and alien title insurers.-
1073	If a foreign or alien title insurer has become impaired and
1074	subject to a primary proceeding:
1075	(1)  The department may, in consultation with the primary
1076	administrator, file an ancillary liquidation proceeding in this
1077	state for purposes of marshalling any assets located in this
1078	state and authorizing the additional protection of those holding
1079	policy obligations in this state through assessments, assumption
1080	of policy liabilities, or surcharges under this part.
1081	(2)  In an ancillary liquidation proceeding the provisions
1082	of this part, including, without limitation, the authority to
1083	make assessments, mandate assumption of policy obligations in
1084	this state, and establish surcharges shall apply as to the
1085	policy obligations in this state of the impaired insurer.
1086	(3)  The court may judicially recognize and use actuarial
1087	estimates approved in the primary proceeding without the need
1088	for separate analyses or taking of evidence.
1089	(4)  The department is authorized to intervene in the
1090	primary proceeding or seek to remove the matter to federal court
1091	in order to assert a right to this state's portion of assets as
1092	an offset to contribution amounts under this part.
1093	(5)  The court shall not order any assessment, assumption
1094	of policy obligations in this state, or surcharge, unless the
1095	primary administrator has paid or confirmed its agreement to pay
1096	an amount that roughly approximates this state's portion of
1097	assets, net of the pro rata costs of administration to the
1098	receiver or to the contributing title insurers as a partial
1099	offset of their contribution amounts.
1100	631.409  Priority of claims.-The priority of distribution
1101	of claims from the impaired title insurer's estate shall be in
1102	accordance with the order in which each class of claims is
1103	provided for in s. 631.271, except that in the case of an
1104	impaired title insurer, Class 2 means the total policy
1105	obligations of the impaired insurer. In determining the amount
1106	to be reserved for Class 2 claims, the court shall use the
1107	actuarial estimate of total policy obligations as reduced for
1108	those jurisdictions where the law provides for a limited period
1109	for making or filing claims or the termination of policies.
1110	631.410  Rulemaking authority.-The department may adopt
1111	rules to implement the provisions of this part, including, but
1112	not limited to, establishing procedures for allocating and
1113	assigning policy liabilities under s. 631.404; assessing and
1114	collecting assessments from title insurers under s. 631.405; the
1115	making and collecting of surcharges and repayment of
1116	contribution amounts under s. 631.406; and the accounting
1117	treatment and actuarial treatment of the right to be reimbursed
1118	for contribution amounts.
1119	Section 18.  Section 689.263, Florida Statutes, is created
1120	to read:
1121	689.263  Sale of residential property; settlement statement
1122	requirements.-A title insurance agent or title insurance agency
1123	may not disburse funds pursuant to a completed purchase and sale
1124	transaction subject to the Real Estate Settlement Procedures Act
1125	of 1974, 12 U.S.C. ss. 2601 et seq.(RESPA), as amended, without
1126	requiring a statement of settlement costs meeting the following
1127	requirements:
1128	(1)  The settlement statement must be executed by the
1129	buyer, borrower, seller, if any, and settlement agent as defined
1130	by RESPA.
1131	(2)  If a title insurance premium is to be disbursed, the
1132	title insurer and the title insurance agent or title insurance
1133	agency, if any, must be disclosed.
1134	Section 19.  Subsection (4) of section 395.106, Florida
1135	Statutes, is amended to read:
1136	395.106  Risk pooling by certain hospitals and hospital
1137	systems.-
1138	(4)  An alliance that meets the requirements of this
1139	section is not an insurer for purposes of participation in or
1140	coverage by the Florida Insurance Guaranty Association
1141	established in part III II of chapter 631. Alliance self-insured
1142	coverage is not subject to insurance premium tax, and any such
1143	alliance formed pursuant to this section may not be assessed for
1144	purposes of s. 215.555 or s. 627.351.
1145	Section 20.  Subsection (6) of section 624.488, Florida
1146	Statutes, is amended to read:
1147	624.488  Applicability of related laws.-In addition to
1148	other provisions of the code cited in ss. 624.460-624.488:
1149	(6)  Parts I and VI V of chapter 631,
1150
1151	apply to self-insurance funds. Only those sections of the code
1152	that are expressly and specifically cited in ss. 624.460-624.489
1153	apply to self-insurance funds.
1154	Section 21.  Section 627.442, Florida Statutes, is amended
1155	to read:
1156	627.442  Insurance contracts.-A person who requires a
1157	workers' compensation insurance policy pursuant to a
1158	construction contract may not reject a workers' compensation
1159	insurance policy issued by a self-insurance fund that is subject
1160	to part VI V of chapter 631 based upon the self-insurance fund
1161	not being rated by a nationally recognized insurance rating
1162	service.
1163	Section 22.  Subsection (1) of section 627.974, Florida
1164	Statutes, is amended to read:
1165	627.974  Filing of policy forms and rates.-
1166	(1)  Policy forms and any amendments thereto must be filed
1167	with the office within 30 days after their use by the insurer. A
1168	policy may not provide coverage of the acceleration of payments
1169	due under the guaranteed obligations, including any payment in
1170	advance of scheduled maturity to be made by the issuer of the
1171	guaranteed obligations at the sole option of the owner of the
1172	guaranteed obligations, unless the acceleration is at the sole
1173	option of the insurer. Each policy must disclose that the
1174	insurance provided by the policy is not covered by the Florida
1175	Insurance Guaranty Association created under part III II of
1176	chapter 631. The commission may prescribe additional minimum
1177	policy provisions which are determined by the commission to be
1178	necessary or appropriate to protect policyholders, claimants,
1179	obligees, or indemnitees.
1180	Section 23.  Subsections (1) and (5) of section 631.252,
1181	Florida Statutes, are amended to read:
1182	631.252  Continuation of coverage.-
1183	(1)  All insurance policies or similar contracts of
1184	coverage, other than coverages defined in s. 631.713 or health
1185	maintenance organization coverage under part V IV, issued by the
1186	insurer shall be canceled upon the earliest to occur of the
1187	following:
1188	(a)  The date of entry of the liquidation or, if the court
1189	so provides in its order, the expiration of 30 days from the
1190	date of entry of the liquidation order;
1191	(b)  The normal expiration of the policy or contract
1192	coverage;
1193	(c)  The replacement of the coverage by the insured, or the
1194	replacement of the policy or contract of coverage, with a policy
1195	or contract acceptable to the insured by the receiver with
1196	another insurer; or
1197	(d)  The termination of the coverage by the insured.
1198	(5)  Benefits under membership in a health maintenance
1199	organization shall continue in force for such period as provided
1200	in part V IV.
1201	Section 24.  For the purpose of incorporating the amendment
1202	made by this act to section 626.9541, Florida Statutes, in a
1203	reference thereto, subsection (3) of section 624.488, Florida
1204	Statutes, is reenacted to read:
1205	624.488  Applicability of related laws.-In addition to
1206	other provisions of the code cited in ss. 624.460-624.488:
1207	(3)  Applicable sections of part VI of chapter 626; s.
1208	626.9541(1)(a), (b), (c), (d), (e), (f), (h), (i), (j), (k),
1209	(l), (m), (n), (o), (q), (u), (w), and (x); and ss. 626.9561-
1210	626.9641;
1211
1212	apply to self-insurance funds. Only those sections of the code
1213	that are expressly and specifically cited in ss. 624.460-624.489
1214	apply to self-insurance funds.
1215	Section 25.  For the purpose of incorporating the amendment
1216	made by this act to section 626.9541, Florida Statutes, in a
1217	reference thereto, subsection (8) of section 626.8437, Florida
1218	Statutes, is reenacted to read:
1219	626.8437  Grounds for denial, suspension, revocation, or
1220	refusal to renew license or appointment.-The department shall
1221	deny, suspend, revoke, or refuse to renew or continue the
1222	license or appointment of any title insurance agent or agency,
1223	and it shall suspend or revoke the eligibility to hold a license
1224	or appointment of such person, if it finds that as to the
1225	applicant, licensee, appointee, or any principal thereof, any
1226	one or more of the following grounds exist:
1227	(8)  Unlawful rebating, or attempting to unlawfully rebate,
1228	or unlawfully dividing, or offering to unlawfully divide, title
1229	insurance premiums, fees, or charges with another, as prohibited
1230	by s. 626.9541(1)(h)3.
1231	Section 26.  For the purpose of incorporating the amendment
1232	made by this act to section 626.9541, Florida Statutes, in a
1233	reference thereto, paragraph (j) of subsection (1) of section
1234	627.776, Florida Statutes, is reenacted to read:
1235	627.776  Applicability or inapplicability of Florida
1236	Insurance Code provisions to title insurers.-
1237	(1)  In addition to any other provisions of law applicable
1238	to title insurers, title insurers are subject to the following
1239	provisions of this code:
1240	(j)  Section 626.9541(1)(h) (rebates prohibited; title
1241	insurance).
1242	Section 27.  For the purpose of incorporating the amendment
1243	made by this act to section 626.9541, Florida Statutes, in a
1244	reference thereto, Subsection (3) of section 628.6016, Florida
1245	Statutes, is reenacted to read:
1246	628.6016  Applicability of related laws.-In addition to
1247	other provisions of the code cited in ss. 628.6011-628.6018:
1248	(3)  Applicable sections of part VI of chapter 626; s.
1249	626.9541(1)(a), (b), (c), (d), (e), (f), (h), (i), (j), (k),
1250	(l), (m), (n), (o), (q), (u), (w), and (x); and ss. 626.9561-
1251	626.9641;
1252
1253	apply to assessable mutual insurers; however, ss. 628.255,
1254	628.411, and 628.421 do not apply. No section of the code not
1255	expressly and specifically cited in ss. 628.6011-628.6018
1256	applies to assessable mutual insurers. The term "assessable
1257	mutual insurer" shall be substituted for the term "commercial
1258	self-insurer" as appropriate.
1259	Section 28.  This act shall take effect July 1, 2011.

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