Florida Senate - 2011                        COMMITTEE AMENDMENT
       Bill No. CS for SB 1836
                                Barcode 340560                          
                              LEGISLATIVE ACTION                        
                    Senate             .             House              
                  Comm: RCS            .                                
                  04/13/2011           .                                

       The Committee on Budget Subcommittee on General Government
       Appropriations (Diaz de la Portilla) recommended the following:
    1         Senate Amendment (with title amendment)
    3         Delete lines 23 - 66
    4  and insert:
    5         Section 1. Subsection (8) of section 624.402, Florida
    6  Statutes, is amended to read:
    7         624.402 Exceptions, certificate of authority required.—A
    8  certificate of authority shall not be required of an insurer
    9  with respect to:
   10         (8) An insurer domiciled outside the United States covering
   11  only persons who, at the time of issuance or renewal, are
   12  nonresidents of the United States.
   13         (a)In order to qualify for this exemption, the insurer:
   14         1.Must register with the office via a letter of
   15  notification upon commencing business from this state.
   16         2.Must provide the following information to the office
   17  annually by March 1:
   18         a.The name of the insurer; the country of domicile; the
   19  address of the insurer’s principal office and office in this
   20  state; the names of the owners of the insurer and their
   21  percentage of ownership; the names of the officers and directors
   22  of the insurer; the name, e-mail, and telephone number of a
   23  contact person for the insurer; and the number of individuals
   24  who are employed by the insurer or its affiliates in this state;
   25         b.The type of products offered by the insurer;
   26         c.A statement from the applicable regulatory body of the
   27  insurer’s domicile certifying that the insurer is licensed or
   28  registered in that domicile; and
   29         d.A copy of the filings required by the applicable
   30  regulatory body of the insurer’s domicile.
   31         3. Or any affiliated person as defined in s. 624.04 under
   32  common ownership or control with the insurer, may not solicit,
   33  sell, or accept an application for any insurance policy or
   34  contract to be delivered or issued for delivery to any
   35  individual other than a nonresident.
   36         (b)All policies or certificates delivered to nonresidents
   37  in this state must include the following statement in a
   38  contrasting color and at least 10-point type: “The policy
   39  providing your coverage and the insurer providing this policy
   40  have not been approved by the Florida Office of Insurance
   41  Regulation”.
   42         (c)If the insurer ceases to do business from this state,
   43  the insurer must agree to provide written notification to the
   44  office within 30 days after cessation.
   45         (d) Subject to the limitations contained in this
   46  subsection, services, including those listed in s. 624.10, may
   47  be provided by the insurer or an affiliated person as defined in
   48  s. 624.04 under common ownership or control with the insurer.
   49         (e) An alien insurer transacting insurance in this state
   50  without complying with this subsection is in violation of this
   51  chapter and subject to the penalties under s. 624.15.
   52         (f) An insurer that holds a certificate of authority in
   53  this state may issue and deliver policies to nonresidents at
   54  temporary or secondary addresses in this state, along with a
   55  notice that the policy form and rate is not subject to the
   56  approval of the Office of Insurance Regulation.
   57         (g) The term “nonresident” means an individual who resides
   58  in and maintains a physical place of domicile in a country other
   59  than the United States, which he or she recognizes as and
   60  intends to maintain as his or her permanent home. The term does
   61  not include an unauthorized immigrant present in the United
   62  States. Notwithstanding any other provision of law, it is
   63  conclusively presumed that an individual is a resident of the
   64  United States if such individual:
   65         1. Has had his or her principal place of domicile in the
   66  United States for 180 days or more in the 365 days before
   67  issuance or renewal the policy;
   68         2. Has registered to vote in any state;
   69         3. Has made a statement of domicile in any state; or
   70         4. Has filed for homestead tax exemption on property in any
   71  state.
   72         (a) Life insurance policies or annuity contracts issued by
   73  an insurer domiciled outside the United States covering only
   74  persons who, at the time of issuance, are not residents of the
   75  United States and are not nonresidents illegally residing in the
   76  United States, provided:
   77         1. The insurer must currently be an authorized insurer in
   78  its country of domicile as to the kind or kinds of insurance
   79  proposed to be offered and must have been such an insurer for
   80  not fewer than the immediately preceding 3 years, or must be the
   81  wholly owned subsidiary of such authorized insurer or must be
   82  the wholly owned subsidiary of an already eligible authorized
   83  insurer as to the kind or kinds of insurance proposed for a
   84  period of not fewer than the immediately preceding 3 years.
   85  However, the office may waive the 3-year requirement if the
   86  insurer has operated successfully for a period of at least the
   87  immediately preceding year and has capital and surplus of not
   88  less than $25 million.
   89         2. Before the office may grant eligibility, the requesting
   90  insurer shall furnish the office with a duly authenticated copy
   91  of its current annual financial statement, in English, and with
   92  all monetary values therein expressed in United States dollars,
   93  at an exchange rate then-current and shown in the statement, in
   94  the case of statements originally made in the currencies of
   95  other countries, and with such additional information relative
   96  to the insurer as the office may request.
   97         3. The insurer must have and maintain surplus as to
   98  policyholders of not less than $15 million. Any such surplus as
   99  to policyholders shall be represented by investments consisting
  100  of eligible investments for like funds of like domestic insurers
  101  under part II of chapter 625; however, any such surplus as to
  102  policyholders may be represented by investments permitted by the
  103  domestic regulator of such alien insurance company if such
  104  investments are substantially similar in terms of quality,
  105  liquidity, and security to eligible investments for like funds
  106  of like domestic insurers under part II of chapter 625.
  107         4. The insurer must be of good reputation as to the
  108  providing of service to its policyholders and the payment of
  109  losses and claims.
  110         5. To maintain eligibility, the insurer shall furnish the
  111  office within the time period specified in s. 624.424(1)(a) a
  112  duly authenticated copy of its current annual and quarterly
  113  financial statements, in English, and with all monetary values
  114  therein expressed in United States dollars, at an exchange rate
  115  then-current and shown in the statement, in the case of
  116  statements originally made in the currencies of other countries,
  117  and with such additional information relative to the insurer as
  118  the office may request.
  119         6. An insurer receiving eligibility under this subsection
  120  shall agree to make its books and records pertaining to its
  121  operations in this state available for inspection during normal
  122  business hours upon request of the office.
  123         7. The insurer shall provide to the applicant for the
  124  policy or contract a copy of the most recent quarterly financial
  125  statements of the insurer providing, in clear and conspicuous
  126  language:
  127         a. The date of organization of the insurer.
  128         b. The identity of and rating assigned by each recognized
  129  insurance company rating organization that has rated the insurer
  130  or, if applicable, that the insurer is unrated.
  131         c. That the insurer does not hold a certificate of
  132  authority issued in this state and that the office does not
  133  exercise regulatory oversight over the insurer.
  134         d. The identity and address of the regulatory authority
  135  exercising oversight of the insurer.
  137  This paragraph does not impose upon the office any duty or
  138  responsibility to determine the actual financial condition or
  139  claims practices of any unauthorized insurer, and the status of
  140  eligibility, if granted by the office, indicates only that the
  141  insurer appears to be financially sound and to have satisfactory
  142  claims practices and that the office has no credible evidence to
  143  the contrary.
  144         (b) If at any time the office has reason to believe that an
  145  insurer issuing policies or contracts pursuant to this
  146  subsection is insolvent or is in unsound financial condition,
  147  does not make reasonable prompt payment of benefits, or is no
  148  longer eligible under the conditions specified in this
  149  subsection, the office may conduct an examination or
  150  investigation in accordance with s. 624.316, s. 624.3161, or s.
  151  624.320 and, if the findings of such examination or
  152  investigation warrant, may withdraw the eligibility of the
  153  insurer to issue policies or contracts pursuant to this
  154  subsection without having a certificate of authority issued by
  155  the office.
  156         (c) This subsection does not provide an exception to the
  157  agent licensure requirements of chapter 626. Any insurer issuing
  158  policies or contracts pursuant to this subsection shall appoint
  159  the agents that the insurer uses to sell such policies or
  160  contracts as provided in chapter 626.
  161         (d) An insurer issuing policies or contracts pursuant to
  162  this subsection is subject to part IX of chapter 626, Unfair
  163  Insurance Trade Practices, and the office may take such actions
  164  against the insurer for a violation as are provided in that
  165  part.
  166         (e) Policies and contracts issued pursuant to this
  167  subsection are not subject to the premium tax specified in s.
  168  624.509.
  169         (f) Applications for life insurance coverage offered under
  170  this subsection must contain, in contrasting color and not less
  171  than 12-point type, the following statement on the same page as
  172  the applicant’s signature:
  174         This policy is primarily governed by the laws of a
  175         foreign country. As a result, all of the rating and
  176         underwriting laws applicable to policies filed in this
  177         state do not apply to this coverage, which may result
  178         in your premiums being higher than would be
  179         permissible under a Florida-approved policy. Any
  180         purchase of individual life insurance should be
  181         considered carefully, as future medical conditions may
  182         make it impossible to qualify for another individual
  183         life policy. If the insurer issuing your policy
  184         becomes insolvent, this policy is not covered by the
  185         Florida Life and Health Insurance Guaranty
  186         Association. For information concerning individual
  187         life coverage under a Florida-approved policy, consult
  188         your agent or the Florida Department of Financial
  189         Services.
  191         (g) All life insurance policies and annuity contracts
  192  issued pursuant to this subsection must contain on the first
  193  page of the policy or contract, in contrasting color and not
  194  less than 10-point type, the following statement:
  196         The benefits of the policy providing your coverage are
  197         governed primarily by the law of a country other than
  198         the United States.
  200         (h) All single-premium life insurance policies and single
  201  premium annuity contracts issued to persons who are not
  202  residents of the United States and are not nonresidents
  203  illegally residing in the United States pursuant to this
  204  subsection shall be subject to the provisions of chapter 896.
  206  ================= T I T L E  A M E N D M E N T ================
  207         And the title is amended as follows:
  208         Delete lines 2 - 5
  209  and insert:
  210         An act relating to insurance; amending s. 624.402,
  211         F.S.; revising provisions relating to certain insurers
  212         serving nonresidents domiciled outside the United
  213         States who are exempt from requirements to obtain a
  214         certificate of authority; amending s. 628.901, F.S.;