HB 947

1
A bill to be entitled
2An act relating to property insurance appraisal umpires
3and property insurance appraisers; amending s. 624.501,
4F.S.; providing license application, issuance, biennial
5renewal, or continuation fees for property insurance
6appraisal umpires and property insurance appraisers;
7amending s. 626.015, F.S.; defining the terms "property
8insurance loss appraiser" and "property insurance
9appraisal umpire" for purposes of the Licensing Procedures
10Law; amending s. 626.016, F.S.; providing that property
11insurance appraisal umpires and property insurance
12appraisers are subject to the powers of the Department of
13Financial Services, the Financial Services Commission, and
14the Office of Insurance Regulation; amending s. 626.022,
15F.S.; expanding the scope of part I of ch. 626, F.S., to
16include property insurance appraisal umpires and property
17insurance appraisers; deleting obsolete provisions;
18amending s. 626.112, F.S.; requiring that property
19insurance appraisal umpires and property insurance
20appraisers operating in this state be licensed by the
21department; creating part XII of ch. 626, F.S.; creating
22s. 626.9931, F.S.; providing legislative findings and
23purpose; creating s. 626.9932, F.S.; providing the scope
24and parameters for application; creating s. 626.9933,
25F.S.; providing definitions; creating s. 626.9934, F.S.;
26providing procedures for the application for licensure as
27a property insurance appraisal umpire and as a property
28insurance appraiser; requiring that all applicants be
29fingerprinted by a law enforcement agency or other entity
30approved by the department at the time of application;
31requiring the department to develop and maintain an
32updated list of licensed umpires and licensed property
33insurance appraisers; creating s. 626.9935, F.S.;
34authorizing the department to adopt rules; creating s.
35626.9936, F.S.; providing qualifications for licensure as
36a property insurance appraisal umpire and as a property
37insurance appraiser; creating s. 626.9937, F.S.; providing
38professional and educational requirements for licensure as
39a property insurance appraisal umpire and property
40insurance appraiser; creating s. 626.9938, F.S.; providing
41for the regulation of umpire and property insurance
42appraiser course providers, instructors, and courses;
43requiring the department to adopt rules establishing
44standards for providers, instructors, and courses, and a
45process for determining compliance with certain
46prelicensure requirements; adopting forms to be used for
47the administration of such requirements; creating s.
48626.9939, F.S.; providing grounds for the compulsory
49refusal, suspension, or revocation of an umpire's license
50and a property insurance appraiser's license; creating s.
51626.9940, F.S.; providing grounds for the discretionary
52refusal, suspension, or revocation of an umpire's license
53and a property insurance appraiser's license; creating s.
54626.9941, F.S.; providing ethical standards for property
55insurance appraisal umpires; creating s. 626.9942, F.S.;
56requiring that a licensed property insurance appraisal
57umpire and property insurance appraiser retain certain
58records for a specified period; requiring that umpires and
59property insurance appraisers make such records available
60for inspection and copying by the department; requiring
61that appraisals that are the subject of litigation or have
62been admitted as evidence in a lawsuit be retained for a
63specified period; creating s. 626.9943, F.S.; providing
64ethical standards for licensed property insurance
65appraisers; creating s. 627.4141, F.S.; providing
66procedures that must be followed if a residential or
67commercial property insurance contract provides that
68either party may submit a written demand to enter into the
69process of appraisal when the insured and the insurer fail
70to mutually agree to the actual cash value, the amount of
71loss, or the cost of repair or replacement of property for
72which a claim has been filed; providing an exception upon
73which an insurer may refuse to accept such demand;
74authorizing each party to select a competent licensed and
75independent appraiser and to notify the opposing party
76within a specified period; requiring the appraisers to
77select a licensed umpire from the department's list of
78licensed umpires; authorizing either party to file a
79petition, in a county or circuit court in the jurisdiction
80in which the covered property is located, to designate a
81licensed umpire if the appraisers cannot agree on the
82selection of a licensed umpire; providing that appraisal
83proceedings are informal unless the insurer and the
84insured agree otherwise; defining and providing the scope
85of the term "informal" for purposes of appraisal
86proceedings; requiring each licensed appraiser to submit a
87written report to the other licensed appraisers; requiring
88that any differences in findings among the licensed
89appraisers which cannot be resolved by the licensed
90appraisers themselves within a specified period be
91submitted to the licensed umpire for review; requiring the
92licensed umpire to submit his or her conclusions regarding
93any unresolved differences in the findings of the  
94licensed appraisers within a specified period; providing
95that if either licensed appraiser agrees with the
96conclusions of the licensed umpire, an itemized written
97appraisal award signed by the licensed umpire and licensed
98appraiser shall be filed with the insurer and shall
99determine the amount of the loss; providing that the
100appraisal award is binding upon the insurer and the
101insured; providing for compensation of the licensed
102appraisers and the licensed umpire; providing that the
103Florida Arbitration Code does not apply to residential or
104commercial property insurance loss appraisal proceedings;
105providing that certain provisions of the Florida
106Arbitration Code relating to procedural matters do apply;
107prohibiting the appraisal process from addressing issues
108involving coverage or lack thereof under an insurance
109contract; authorizing the licensed umpire and licensed
110appraisers to consider causation issues when necessary to
111determine the amount of loss; amending ss. 626.172,
112626.7845, 626.8305, and 626.8411, F.S.; conforming cross-
113references; providing an effective date.
114
115Be It Enacted by the Legislature of the State of Florida:
116
117     Section 1.  Subsection (5) of section 624.501, Florida
118Statutes, is amended, and subsection (29) is added to that
119section, to read:
120     624.501  Filing, license, appointment, and miscellaneous
121fees.-The department, commission, or office, as appropriate,
122shall collect in advance, and persons so served shall pay to it
123in advance, fees, licenses, and miscellaneous charges as
124follows:
125     (5)  All insurance representatives, property insurance
126appraisal umpires, and property insurance appraisers application
127for license, application for reinstatement of suspended license,
128each filing, filing
129fee..................................................$50.00
130     (29)  Property insurance appraisal umpire and property
131insurance appraiser original appointment, biennial renewal, or
132continuation by the
133licensee..................................................$50.00
134     Section 2.  Present subsections (16), (17), and (18) of
135section 626.015, Florida Statutes, are renumbered as subsections
136(18), (19), and (20), respectively, and new subsections (16) and
137(17) are added to that section to read:
138     626.015  Definitions.-As used in this part:
139     (16)  "Property insurance loss appraiser" has the same
140meaning as in s. 626.9933.
141     (17)  "Property insurance appraisal umpire" has the same
142meaning as in s. 626.9933.
143     Section 3.  Subsection (1) of section 626.016, Florida
144Statutes, is amended to read:
145     626.016  Powers and duties of department, commission, and
146office.-
147     (1)  The powers and duties of the Chief Financial Officer
148and the department specified in this part apply only with
149respect to insurance agents, insurance agencies, managing
150general agents, insurance adjusters, reinsurance intermediaries,
151viatical settlement brokers, customer representatives, service
152representatives, property insurance appraisers, and property
153insurance appraisal umpires agencies.
154     Section 4.  Subsection (1) of section 626.022, Florida
155Statutes, is amended to read:
156     626.022  Scope of part.-
157     (1)  This part applies as to insurance agents, service
158representatives, adjusters, property insurance appraisal
159umpires, property insurance appraisers, and insurance agencies;
160as to any and all kinds of insurance; and as to stock insurers,
161mutual insurers, reciprocal insurers, and all other types of
162insurers, except that:
163     (a)  It does not apply as to reinsurance, except that ss.
164626.011-626.022, ss. 626.112-626.181, ss. 626.191-626.211, ss.
165626.291-626.301, s. 626.331, ss. 626.342-626.521, ss. 626.541-
166626.591, and ss. 626.601-626.711 shall apply as to reinsurance
167intermediaries as defined in s. 626.7492.
168     (b)  The applicability of this chapter as to fraternal
169benefit societies shall be as provided in chapter 632.
170     (c)  It does not apply to a bail bond agent, as defined in
171s. 648.25, except as provided in chapter 648 or chapter 903.
172     (d)  It This part does not apply to a certified public
173accountant licensed under chapter 473 who is acting within the
174scope of the practice of public accounting, as defined in s.
175473.302, if provided that the activities of the certified public
176accountant are limited to advising a client of the necessity of
177obtaining insurance, the amount of insurance needed, or the line
178of coverage needed, and if provided that the certified public
179accountant does not directly or indirectly receive or share in
180any commission or referral fee.
181     Section 5.  Section 626.112, Florida Statutes, is amended
182to read:
183     626.112  License and appointment required; agents, customer
184representatives, adjusters, insurance agencies, service
185representatives, managing general agents, property insurance
186appraisers, and property insurance appraisal umpires.-
187     (1)(a)  No person may be, act as, or advertise or hold
188himself or herself out to be an insurance agent, insurance
189adjuster, property insurance appraiser, property insurance
190appraisal umpire, or customer representative unless he or she is
191currently licensed by the department and appointed by an
192appropriate appointing entity or person.
193     (b)  Except as provided in subsection (8) (6) or in
194applicable department rules, and in addition to other conduct
195described in this chapter with respect to particular types of
196agents, a license as an insurance agent, service representative,
197customer representative, or limited customer representative is
198required in order to engage in the solicitation of insurance.
199For purposes of this requirement, as applicable to any of the
200license types described in this section, the solicitation of
201insurance is the attempt to persuade any person to purchase an
202insurance product by:
203     1.  Describing the benefits or terms of insurance coverage,
204including premiums or rates of return;
205     2.  Distributing an invitation to contract to prospective
206purchasers;
207     3.  Making general or specific recommendations as to
208insurance products;
209     4.  Completing orders or applications for insurance
210products;
211     5.  Comparing insurance products, advising as to insurance
212matters, or interpreting policies or coverages; or
213     6.  Offering or attempting to negotiate on behalf of
214another person a viatical settlement contract as defined in s.
215626.9911.
216
217However, an employee leasing company licensed pursuant to
218chapter 468 which is seeking to enter into a contract with an
219employer that identifies products and services offered to
220employees may deliver proposals for the purchase of employee
221leasing services to prospective clients of the employee leasing
222company setting forth the terms and conditions of doing
223business; classify employees as permitted by s. 468.529; collect
224information from prospective clients and other sources as
225necessary to perform due diligence on the prospective client and
226to prepare a proposal for services; provide and receive
227enrollment forms, plans, and other documents; and discuss or
228explain in general terms the conditions, limitations, options,
229or exclusions of insurance benefit plans available to the client
230or employees of the employee leasing company were the client to
231contract with the employee leasing company. Any advertising
232materials or other documents describing specific insurance
233coverages must identify and be from a licensed insurer or its
234licensed agent or a licensed and appointed agent employed by the
235employee leasing company. The employee leasing company may not
236advise or inform the prospective business client or individual
237employees of specific coverage provisions, exclusions, or
238limitations of particular plans. As to clients for which the
239employee leasing company is providing services pursuant to s.
240468.525(4), the employee leasing company may engage in
241activities permitted by ss. 626.7315, 626.7845, and 626.8305,
242subject to the restrictions specified in those sections. If a
243prospective client requests more specific information concerning
244the insurance provided by the employee leasing company, the
245employee leasing company must refer the prospective business
246client to the insurer or its licensed agent or to a licensed and
247appointed agent employed by the employee leasing company.
248     (2)  No agent or customer representative shall solicit or
249otherwise transact as agent or customer representative, or
250represent or hold himself or herself out to be an agent or
251customer representative as to, any kind or kinds of insurance
252for as to which he or she is not then licensed and appointed.
253     (3)  No person shall act as an adjuster as to any class of
254business for which he or she is not then licensed and appointed.
255     (4)  No property insurance appraiser shall act as an
256adjuster as to any class of business for which he or she is not
257licensed and appointed.
258     (5)  No property insurance appraisal umpire shall act as an
259adjuster as to any class of business for which he or she is not
260licensed and appointed.
261     (6)(4)  No person shall be, act as, or represent or hold
262himself or herself out to be a service representative unless he
263or she then holds a currently effective service representative
264license and appointment. This subsection does not apply as to
265similar representatives or employees of casualty insurers whose
266duties are restricted to health insurance.
267     (7)(5)  No person shall be, act as, or represent or hold
268himself or herself out to be a managing general agent unless he
269or she then holds a currently effective managing general agent
270license and appointment.
271     (8)(6)  An individual employed by a life or health insurer
272as an officer or other salaried representative may solicit and
273effect contracts of life insurance or annuities or of health
274insurance, without being licensed as an agent, when and only if
275when he or she is accompanied by and solicits for and on the
276behalf of a licensed and appointed agent.
277     (9)(7)(a)  Effective October 1, 2006, No individual, firm,
278partnership, corporation, association, or any other entity shall
279act in its own name or under a trade name, directly or
280indirectly, as an insurance agency, unless it complies with s.
281626.172 with respect to possessing an insurance agency license
282for each place of business at which it engages in any activity
283which may be performed only by a licensed insurance agent. Each
284agency engaged in business in this state before January 1, 2003,
285which is wholly owned by insurance agents currently licensed and
286appointed under this chapter, each incorporated agency whose
287voting shares are traded on a securities exchange, each agency
288designated and subject to supervision and inspection as a branch
289office under the rules of the National Association of Securities
290Dealers, and each agency whose primary function is offering
291insurance as a service or member benefit to members of a
292nonprofit corporation may file an application for registration
293in lieu of licensure in accordance with s. 626.172(3). Each
294agency engaged in business before October 1, 2006, shall file an
295application for licensure or registration on or before October
2961, 2006.
297     1.  If an agency is required to be licensed but fails to
298file an application for licensure in accordance with this
299section, the department shall impose on the agency an
300administrative penalty in an amount of up to $10,000.
301     2.  If an agency is eligible for registration but fails to
302file an application for registration or an application for
303licensure in accordance with this section, the department shall
304impose on the agency an administrative penalty in an amount of
305up to $5,000.
306     (b)  A registered insurance agency shall, as a condition
307precedent to continuing business, obtain an insurance agency
308license if the department finds that, with respect to any
309majority owner, partner, manager, director, officer, or other
310person who manages or controls the agency, any person has:
311     1.  Been found guilty of, or has pleaded guilty or nolo
312contendere to, a felony in this state or any other state
313relating to the business of insurance or to an insurance agency,
314without regard to whether a judgment of conviction has been
315entered by the court having jurisdiction of the cases.
316     2.  Employed any individual in a managerial capacity or in
317a capacity dealing with the public who is under an order of
318revocation or suspension issued by the department. An insurance
319agency may request, on forms prescribed by the department,
320verification of any person's license status. If a request is
321mailed within 5 working days after an employee is hired, and the
322employee's license is currently suspended or revoked, the agency
323shall not be required to obtain a license, if the unlicensed
324person's employment is immediately terminated.
325     3.  Operated the agency or permitted the agency to be
326operated in violation of s. 626.747.
327     4.  With such frequency as to have made the operation of
328the agency hazardous to the insurance-buying public or other
329persons:
330     a.  Solicited or handled controlled business. This
331subparagraph shall not prohibit the licensing of any lending or
332financing institution or creditor, with respect to insurance
333only, under credit life or disability insurance policies of
334borrowers from the institutions, which policies are subject to
335part IX of chapter 627.
336     b.  Misappropriated, converted, or unlawfully withheld
337moneys belonging to insurers, insureds, beneficiaries, or others
338and received in the conduct of business under the license.
339     c.  Unlawfully rebated, attempted to unlawfully rebate, or
340unlawfully divided or offered to divide commissions with
341another.
342     d.  Misrepresented any insurance policy or annuity
343contract, or used deception with regard to any policy or
344contract, done either in person or by any form of dissemination
345of information or advertising.
346     e.  Violated any provision of this code or any other law
347applicable to the business of insurance in the course of dealing
348under the license.
349     f.  Violated any lawful order or rule of the department.
350     g.  Failed or refused, upon demand, to pay over to any
351insurer he or she represents or has represented any money coming
352into his or her hands belonging to the insurer.
353     h.  Violated the provision against twisting as defined in
354s. 626.9541(1)(l).
355     i.  In the conduct of business, engaged in unfair methods
356of competition or in unfair or deceptive acts or practices, as
357prohibited under part IX of this chapter.
358     j.  Willfully overinsured any property insurance risk.
359     k.  Engaged in fraudulent or dishonest practices in the
360conduct of business arising out of activities related to
361insurance or the insurance agency.
362     l.  Demonstrated lack of fitness or trustworthiness to
363engage in the business of insurance arising out of activities
364related to insurance or the insurance agency.
365     m.  Authorized or knowingly allowed individuals to transact
366insurance who were not then licensed as required by this code.
367     5.  Knowingly employed any person who within the preceding
3683 years has had his or her relationship with an agency
369terminated in accordance with paragraph (d).
370     6.  Willfully circumvented the requirements or prohibitions
371of this code.
372     (10)(8)  No insurance agent, insurance agency, or other
373person licensed under the Insurance Code may pay any fee or
374other consideration to an unlicensed person other than an
375insurance agency for the referral of prospective purchasers to
376an insurance agent which is in any way dependent upon whether
377the referral results in the purchase of an insurance product.
378     (11)(9)  Any person who knowingly transacts insurance or
379otherwise engages in insurance activities in this state without
380a license in violation of this section commits a felony of the
381third degree, punishable as provided in s. 775.082, s. 775.083,
382or s. 775.084.
383     (12)  Effective July 1, 2012, a person may not act as,
384represent himself or herself as, or hold himself or herself out
385to be a property insurance appraisal umpire unless he or she
386holds a current property insurance appraisal umpire license
387issued by the department.
388     Section 6.  Part XII of chapter 626, Florida Statutes,
389consisting of sections 626.9931, 626.9932, 626.9933, 626.9934,
390626.9935, 626.9936, 626.9937, 626.9938, 626.9939, 626.9940,
391626.9941, 626.9942, and 626.9943, is created to read:
392     626.9931  Purpose.-The Legislature finds that it is in the
393interest of the public welfare to regulate property insurance
394loss appraisers and property insurance appraisal umpires in this
395state.
396     626.9932  Scope of part.-This part applies to residential
397and commercial residential property insurance contracts that
398contain an appraisal clause and to the umpires and appraisers
399who participate in the appraisal process as a result of an
400appraisal clause.
401     626.9933  Definitions.-As used in this part, the term:
402     (1)  "Appraisal" means the process of estimating or
403evaluating actual cash value, the amount of loss, or the cost of
404repair or replacement of property for the purpose of quantifying
405the monetary value of a property loss claim when an insurer and
406an insured have failed to mutually agree on the value of the
407loss pursuant to a residential or commercial residential
408property insurance contract that is required in the residential
409or commercial residential property insurance contract for the
410resolution of a claim dispute by appraisal.
411     (2)  "Competent" means properly licensed, sufficiently
412qualified and capable to perform an appraisal.
413     (3)  "Independent" means not subject to control,
414restriction, modification, and limitation by the appointing
415party.
416     (4)  "Property insurance appraisal umpire" or "umpire"
417means a competent, independent, licensed, and impartial third
418party selected by the licensed appraisers for the insurer and
419the insured to resolve issues for which the licensed appraisers
420are unable to reach an agreement in the course of the appraisal
421process pursuant to a residential or commercial residential
422property insurance contract that is required to provide for the
423resolution of a claim dispute by appraisal.
424     (5)  "Property insurance loss appraiser" or "appraiser"
425mean a competent, licensed, and independent third party selected
426by an insurer or an insured to develop an appraisal for purposes
427of the appraisal process under a residential or commercial
428residential property insurance contract that is required to
429provide for the resolution of a claim dispute by appraisal.
430     626.9934  Property insurance appraisal umpire and property
431insurance appraiser applications; fingerprinting required;
432umpire list.-
433     (1)  Application for a license under this part shall be
434made as provided in s. 626.171 and related sections of this
435code.
436     (2)  At the time of application, the applicant must be
437fingerprinted by a law enforcement agency or other entity
438approved by the department and must pay the fingerprint
439processing fee specified in s. 624.501. Fingerprints must be
440processed in accordance with s. 624.34.
441     (3)  The department shall develop and maintain as a public
442record a current list of licensed property insurance appraisal
443umpires and licensed property insurance appraisers.
444     626.9935  Rulemaking authority.-The department may adopt
445rules to administer the requirements of this part.
446     626.9936  Qualifications for licensure as a property
447insurance appraisal umpire or property insurance appraiser.-
448     (1)  The department may not issue a license as a property
449insurance appraisal umpire or a property insurance appraiser to
450any individual found by it to be untrustworthy or incompetent,
451or who has not met the following qualifications:
452     (a)  The applicant has filed an application with the
453department in accordance with s. 626.171.
454     (b)  The applicant is a natural person who is at least 18
455years of age.
456     (c)  The applicant is a United States citizen or legal
457alien who possesses work authorization from the United States
458Bureau of Citizenship and Immigration Services.
459     (d)  The applicant has completed the education, experience,
460or licensing requirements in s. 626.9937.
461     (2)  An incomplete application expires 6 months after the
462date it is received.
463     (3)  An applicant seeking to become licensed under this
464part may not be rejected solely by virtue of membership or lack
465of membership in any particular appraisal organization.
466     626.9937  Professional or educational requirements for
467insurance appraisal umpires and property insurance appraisers
468applicants.-The department may not issue a license to an
469applicant for licensure as a property insurance appraisal umpire
470or property insurance appraiser unless the applicant meets one
471of the following requirements:
472     (1)  The applicant is currently licensed, registered,
473certified, or approved as an engineer as defined in s. 471.005,
474or as a retired professional engineer as defined in s. 471.005
475and has taught or successfully completed 4 hours of classroom
476coursework, approved by the department, specifically related to
477construction, building codes, appraisal procedure, appraisal
478preparation, and any other related material deemed appropriate
479by the department.
480     (2)  The applicant is currently or, within the 5 years
481immediately preceding the date on which the application is filed
482with the department, has been licensed, registered, certified,
483or approved as a general contractor, building contractor, or
484residential contractor as defined in s. 489.105 and has taught
485or successfully completed 4 hours of classroom coursework,
486approved by the department, specifically related to
487construction, building codes, appraisal procedure, appraisal
488preparation, and any other related material deemed appropriate
489by the department.
490     (3)  The applicant is currently or, within the 5 years
491immediately preceding the date on which the application is filed
492with the department, has been licensed or registered as an
493architect to engage in the practice of architecture pursuant to
494part I of chapter 481 and has taught or successfully completed 4
495hours of classroom coursework, approved by the department,
496specifically related to construction, building codes, appraisal
497procedure, appraisal preparation, and any other related material
498deemed appropriate by the department.
499     (4)  The applicant is currently or, within the 5 years
500immediately preceding the date on which the application is filed
501with the department, has been a qualified geologist or
502professional geologist as defined in s. 492.102 and has taught
503or successfully completed 4 hours of classroom coursework,
504approved by the department, specifically related to
505construction, building codes, appraisal procedure, appraisal
506preparation, and any other related material deemed appropriate
507by the department.
508     (5)  The applicant is currently or, within the 5 years
509immediately preceding the date on which the application is filed
510with the department, has been licensed as a certified public
511accountant as defined in s. 473.302 and has taught or
512successfully completed 4 hours of classroom coursework, approved
513by the department, specifically related to construction,
514building codes, appraisal procedure, appraisal preparation, and
515any other related material deemed appropriate by the department.
516     (6)  The applicant is currently or, within the 5 years
517immediately preceding the date on which the application is filed
518with the department, has been licensed as an attorney at law in
519this state and has taught or successfully completed 4 hours of
520classroom coursework, approved by the department, specifically
521related to construction, building codes, appraisal procedure,
522appraisal preparation, and any other related material deemed
523appropriate by the department.
524     (7)  The applicant has received a baccalaureate degree from
525an accredited 4-year college in the field of engineering,
526architecture, or building construction and has taught or
527successfully completed 4 hours of classroom coursework, approved
528by the department, specifically related to construction,
529building codes, appraisal procedure, appraisal preparation, and
530any other related material deemed appropriate by the department.
531     (8)  The applicant is a currently licensed adjuster whose
532license covers all lines of insurance except the life and
533annuities class. The adjuster's license must include the
534property and casualty class of insurance. The currently licensed
535adjuster must be licensed for at least 3 years to qualify for a
536property insurance appraiser's license. The currently licensed
537adjuster must be licensed for at least 5 years to qualify for a
538property insurance appraisal umpire's license.
539     (a)  Has 1 year of proven experience as an employee of a
540general contractor, building contractor, or residential
541contractor; or
542     (b)  Has received a minimum of 8 semester hours or 12
543quarter hours of credit from an accredited college in the field
544of accounting, geology, engineering, architecture, or building
545construction.
546     (9)  The applicant has successfully completed 40 hours of
547classroom coursework, approved by the department, specifically
548related to construction, building codes, appraisal procedure,
549appraisal preparation, property insurance, and any other related
550material deemed appropriate by the department.
551     626.9938  Regulation of umpire and property appraiser
552course providers, instructors, and courses.-
553     (1)  Each umpire or property appraiser course provider,
554instructor, and classroom course must be approved by and
555registered with the department before prelicensure courses for
556property insurance appraisal umpires or property insurance
557appraisers may be offered. Each classroom course must include a
558written examination at the conclusion of the course and must
559cover all of the material contained in the course. A student may
560not receive credit for the course unless the student achieves a
561grade of at least 75 on the examination.
562     (2)  The department shall adopt rules establishing:
563     (a)  Standards for the approval, registration, discipline,
564or removal from registration of course providers, instructors,
565and courses. The standards must be designed to ensure that
566instructors have the knowledge, competence, and integrity to
567fulfill the educational objectives of the prelicensure
568requirements of this part.
569     (b)  A process for determining compliance with the
570prelicensure requirements of this part. The department shall
571adopt rules prescribing the forms necessary to administer the
572prelicensure requirements of this part.
573     (3)  Approval to teach prescribed or approved appraisal
574courses does not entitle the instructor to teach any courses
575outside the scope of this part.
576     626.9939  Grounds for compulsory refusal, suspension, or
577revocation of an umpire's or appraiser's license.-In addition to
578the grounds set forth in s. 626.611, the department shall deny
579an application for, and suspend, revoke, or refuse to renew or
580continue, a license as a property insurance appraisal umpire or
581property insurance appraiser if the applicant or licensee has:
582     (1)  Violated a duty imposed upon her or him by law or by
583the terms of a contract, whether written, oral, express, or
584implied, in an appraisal; has aided, assisted, or conspired with
585any other person engaged in any such misconduct and in
586furtherance thereof; or has formed an intent, design, or scheme
587to engage in such misconduct and committed an overt act in
588furtherance of such intent, design, or scheme. It is immaterial
589to a finding that a licensee has committed a violation of this
590subsection that the victim or intended victim of the misconduct
591has sustained no damage or loss, that the damage or loss has
592been settled and paid after the discovery of misconduct, or that
593such victim or intended victim was a customer or a person in a
594confidential relation with the licensee or was an identified
595member of the general public.
596     (2)  Violated any provision of this part or any lawful
597order or rule of the department.
598     (3)  Had a registration, license, or certification as an
599appraiser revoked, suspended, or otherwise acted against; has
600had his or her registration, license, or certificate to practice
601or conduct any regulated profession, business, or vocation
602revoked or suspended by this or any other state, any nation, or
603any possession or district of the United States; or has had an
604application for such registration, licensure, or certification
605to practice or conduct any regulated profession, business, or
606vocation denied by this or any other state, any nation, or any
607possession or district of the United States.
608     (4)  Made or filed a report or record, written or oral,
609which the licensee knows to be false; has willfully failed to
610file a report or record required by state or federal law; has
611willfully impeded or obstructed such filing; or has induced
612another person to impede or obstruct such filing.
613     (5)  Accepted an appointment as an umpire or appraiser if
614the appointment is contingent upon the umpire or appraiser
615reporting a predetermined result, analysis, or opinion, or if
616the fee to be paid for the services of the umpire or appraiser
617is contingent upon the opinion, conclusion, or valuation reached
618by the umpire or appraiser.
619     626.9940  Grounds for discretionary denial, suspension, or
620revocation of a license as a property insurance appraisal umpire
621or property insurance appraiser.-
622     (1)  In addition to the applicable grounds set forth in s.
623626.621, the department may deny an application for and suspend,
624revoke, or refuse to renew or continue a license as a property
625insurance appraisal umpire if the applicant or licensee has:
626     (a)  Failed to timely communicate with the appraisers
627without good cause.
628     (b)  Failed or refused to exercise reasonable diligence in
629submitting recommendations to the appraisers.
630     (c)  Violated any ethical standard for property insurance
631appraisal umpires set forth in s. 626.9941.
632     (d)  Failed to inform the department in writing within 30
633days after pleading guilty or nolo contendere to, or being
634convicted or found guilty of, any felony.
635     (e)  Failed to timely notify the department of any change
636in business location, or has failed to fully disclose all
637business locations from which he or she operates as a property
638insurance appraisal umpire.
639     (2)  In addition to the applicable grounds set forth in s.
640626.621, the department may deny an application for and suspend,
641revoke, or refuse to renew or continue a license as a property
642insurance appraiser if the applicant or licensee has:
643     (a)  Violated any ethical standard for property insurance
644appraisal umpires set forth in s. 626.9942.
645     (b)  Failed to inform the department in writing within 30
646days after pleading guilty or nolo contendere to, or being
647convicted or found guilty of, any felony.
648     (c)  Failed to timely notify the department of any change
649in business location, or has failed to fully disclose all
650business locations from which he or she operates as a property
651insurance appraisal umpire.
652     626.9941  Ethical standards for property insurance
653appraisal umpires.-
654     (1)  CONFIDENTIALITY.-An umpire shall maintain
655confidentiality of all information revealed during an appraisal
656except where disclosure is required by law.
657     (2)  RECORDKEEPING.-An umpire shall maintain
658confidentiality in the storage and disposal of records and may
659not disclose any identifying information when materials are used
660for research, training, or statistical compilations.
661     (3)  FEES AND EXPENSES.-An umpire holds a position of
662trust. Fees charged for appraisal services shall be reasonable
663and consistent with the nature of the case. An umpire shall be
664guided by the following general principles in determining fees:
665     (a)  Any charges for services as an umpire based on time
666may not exceed actual time spent or allocated;
667     (b)  Charges for costs shall be for those actually
668incurred; and
669     (c)  An umpire may not charge, agree to, or accept as
670compensation or reimbursement any payment, commission, or fee
671that is based on a percentage basis, or that is contingent upon
672arriving at a particular value or any future happening or
673outcome of the assignment.
674     (4)  MAINTENANCE OF RECORDS.-An umpire shall maintain
675records necessary to support charges for services and expenses,
676and upon request shall provide an accounting of all applicable
677charges to the parties.
678     (5)  ADVERTISING.-An umpire may not engage in marketing
679practices that contain false or misleading information. An
680umpire shall ensure that any advertisements of the umpire's
681qualifications, services to be rendered, or the appraisal
682process are accurate and honest. An umpire may not make claims
683of achieving specific outcomes or promises implying favoritism
684for the purpose of obtaining business.
685     (6)  INTEGRITY AND IMPARTIALITY.-An umpire may not accept
686any engagement, provide any service, or perform any act that
687would compromise the umpire's integrity or impartiality.
688     (7)  SKILL AND EXPERIENCE.-An umpire shall decline an
689appointment or selection, withdraw, or request appropriate
690assistance when the facts and circumstances of the appraisal are
691beyond the umpire's skill or experience.
692     626.9942  Retention of records.-An umpire or appraiser
693licensed under this part shall retain for at least 5 years
694original or true copies of any contracts engaging the umpire's
695services, appraisal reports, and supporting data assembled and
696formulated by the umpire in preparing appraisal reports. The
697period for retaining the records applicable to each engagement
698starts on the date of the submission of the appraisal report to
699the client. These records must be made available by the umpire
700or appraiser for inspection and copying by the department upon
701reasonable notice to the umpire. If an appraisal has been the
702subject of, or has been admitted as evidence in, a lawsuit,
703reports and records must be retained for at least 2 years after
704the date the trial ends.
705     626.9943  Ethical standards for property insurance
706appraisers.-
707     (1)  INTEGRITY AND IMPARTIALITY.-
708     (a)  A licensed appraiser may not accept an appointment
709unless he or she can serve impartially; can serve independently
710from the party appointing him or her; is competent to serve; and
711is available to promptly commence the appraisal, and thereafter
712devote the time and attention for its completion that the
713parties are reasonably entitled to expect.
714     (b)  A licensed appraiser shall conduct the appraisal
715process in a manner that advances the fair and efficient
716resolution of the matters submitted for decision. A licensed
717appraiser shall make all reasonable efforts to prevent delays in
718the appraisal process, the harassment of parties or other
719participants, or other abuse or disruption of the appraisal
720process.
721     (c)  Once a licensed appraiser has accepted an appointment,
722the appraiser may not withdraw or abandon the appointment unless
723compelled to do so by unanticipated circumstances that would
724render it impossible or impracticable to continue.
725     (d)  The licensed appraiser shall, after careful
726deliberation, decide all issues submitted for determination and
727no other issues. A licensed appraiser shall decide all matters
728justly, exercising independent judgment, and may not allow
729outside pressure to affect the decision. An appraiser may not
730delegate the duty to decide to any other person.
731     (2)  COMMUNICATIONS WITH PARTIES.-
732     (a)  If an agreement of the parties establishes the manner
733or content of the communications between the appraisers and the
734parties, the appraiser shall abide by such agreement. In the
735absence of agreement, an appraiser may not discuss a proceeding
736with any party in the absence of any other party, except in the
737following circumstances:
738     1.  If the appointment of the appraiser is being
739considered, the prospective appraiser may ask about the
740identities of the parties, counsel, and the general nature of
741the case, and may respond to inquiries from a party or its
742counsel designed to determine his or her suitability and
743availability for the appointment;
744     2.  To consult with the party who appointed the appraiser
745concerning the selection of a neutral umpire;
746     3.  To make arrangements for any compensation to be paid by
747the party who appointed the appraiser; or
748     4.  To make arrangements for obtaining materials and
749inspection of the property with the party who appointed the
750appraiser. Such communication is limited to scheduling and the
751exchange of materials.
752     (b)  There may be no communications whereby a party
753dictates to an appraiser what the result of the proceedings must
754be, what matters or elements may be included or considered by
755the appraiser, or what actions the appraiser may take.
756     (3)  GIFTS AND SOLICITATION.-An appraiser may not give or
757accept any gift, favor, loan, or other item of value in an
758appraisal process except for their reasonable fee. During the
759appraisal process, an appraiser may not solicit or otherwise
760attempt to procure future professional services.
761     (4)  FEES and EXPENSES.-An appraiser holds a position of
762trust. Fees charged for appraisal services shall be reasonable
763and consistent with the nature of the case. An appraiser shall
764be guided by the following general principles in determining
765fees:
766     (a)  Any charges for services as an appraiser based on time
767may not exceed the actual time spent or allocated; and
768     (b)  Charges for costs shall be only for those costs
769actually incurred.
770     (5)  MAINTENANCE OF RECORDS.-An appraiser shall maintain
771records to support charges for services, fees, and expenses, and
772upon request shall provide an accounting of all applicable
773charges to the parties.
774     (6)  ADVERTISING.-An appraiser may not engage in marketing
775practices that contain false or misleading information. An
776appraiser shall ensure that any advertisements of the
777appraiser's qualifications, services to be rendered, or the
778appraisal process are accurate and honest. An appraiser may not
779make claims of achieving specific outcomes or promises implying
780favoritism for the purpose of obtaining business.
781     (7)  SKILL AND EXPERIENCE.-An appraiser shall decline an
782appointment or selection, withdraw, or request appropriate
783assistance when the facts and circumstances of the appraisal are
784beyond the appraiser's skill or experience.
785     Section 7.  Section 627.4141, Florida Statutes, is created
786to read:
787     627.4141  Residential or commercial property insurance loss
788appraisal.-A residential or commercial residential property
789insurance contract must provide that either party may submit a
790written demand to enter into the process of appraisal if the
791insured and the insurer fail to mutually agree as to the actual
792cash value, the amount of loss, or the cost of repair or
793replacement of property for which a claim has been filed, that
794process shall be governed by this section. The insurer may
795refuse to accept the demand only if the insured materially fails
796to comply with the proof-of-loss obligations of the insured as
797set forth in the policy conditions. The insurer is deemed to
798have waived its right to demand an appraisal if it fails to
799invoke an appraisal within 30 days after the insured
800substantially complies with the proof-of-loss obligation as set
801forth in the policy conditions.
802     (1)  Each party shall select a competent, licensed, and
803independent appraiser and notify the other party of the
804appraiser selected within 20 days after the date of the demand
805for an appraisal. The appraisers shall select a competent,
806independent, and impartial umpire who is on the department's
807list of licensed property insurance appraisal umpires or who is
808otherwise qualified and exempt from licensure as provided in s.
809626.112(10). If the appraisers are unable to agree on an umpire
810within 15 days, the insured or the insurer may file a petition
811with a county or circuit court in the jurisdiction in which the
812covered property is located to designate a licensed property
813insurance appraisal umpire for the appraisal.
814     (2)  Appraisal proceedings are informal unless the insured
815and the insurer mutually agree otherwise. For purposes of this
816section, "informal" means that no formal discovery shall be
817conducted, including depositions, interrogatories, requests for
818admission, or other forms of formal civil discovery; no formal
819rules of evidence shall be applied; and no court reporter shall
820be used for the proceedings. However, either appraiser may rely
821on experts in reaching the value of loss.
822     (3)  Within 60 days after being appointed, each appraiser
823shall appraise the loss and submit a written report to the other
824appraiser, separately stating the cost of the loss, the actual
825cash value, or the cost to repair or replace each item. Within
82630 days after submitting the reports, the appraisers shall
827attempt to resolve any differences in the appraisals and reach a
828mutual agreement on all matters. If the appraisers are unable to
829agree, they shall, within 5 days, submit the differences in
830their findings in writing to the umpire. However, the appraisers
831have an additional 60 days after appointment to appraise the
832loss and submit a written report if the loss is covered under a
833commercial property insurance policy and the insured structure
834is 10,000 square feet or more, or is covered under a commercial
835residential or residential insurance policy and the claim is
836based on and made subsequent to a hurricane designated by the
837National Hurricane Center or a declared emergency by the
838Governor.
839     (4)  The umpire shall review any differences in appraisals
840submitted by the appraisers and determine the amount of the loss
841for each item submitted. Within 10 days after receipt of any
842differences in appraisals, the umpire shall submit the umpire's
843conclusions in writing to each appraiser.
844     (5)  If either appraiser agrees with the conclusions of the
845umpire, an itemized written appraisal award signed by the umpire
846and the appraiser shall be filed with the insurer and shall
847determine the amount of the loss.
848     (6)  The appraisal award is binding on the insurer and the
849insured with regard to the amount of the loss. If the insurance
850policy so provides, the insurer may assert that there is no
851coverage under the policy for the loss as a whole or that there
852has been a violation of the policy conditions with respect to
853fraud, lack of notice, or failure to cooperate.
854     (7)  Each appraiser shall be paid by the party who selects
855the appraiser and the expenses of the appraisal and fees of the
856umpire shall be paid by the parties equally, except that if the
857final determination of the amount of the loss is 50 percent
858greater than the insurer's preappraisal estimate of the loss
859communicated to the insured in writing, the insurer shall pay
860all the expenses, including any fees and expenses charged by the
861insured's appraiser and all fees and expenses of the umpire.
862This subsection does not affect an insured's claim for
863attorney's fees under s. 627.428.
864     (8)  The provisions of the Florida Arbitration Code do not
865apply to residential and commercial residential property
866insurance loss appraisal proceedings. However, the provisions
867regarding proceedings to compel and stay arbitration in s.
868682.03; procedures for correcting, vacating, or modifying an
869award in ss. 682.10, 682.13, and 682.14; procedures for entry of
870judgment on the award in s. 682.15; and procedures regarding
871confirmation of an award in s. 682.12 do apply.
872     (9)  The appraisal process may not address issues involving
873whether or not the loss or damage is covered under the terms of
874the insurance contract. However, the appraisers and the umpire
875may consider causation issues, if necessary, to determine the
876amount of loss.
877     Section 8.  Subsection (3) of section 626.172, Florida
878Statutes, is amended to read:
879     626.172  Application for insurance agency license.-
880     (3)  The department shall issue a registration as an
881insurance agency to any agency that files a written application
882with the department and qualifies for registration. The
883application for registration shall require the agency to provide
884the same information required for an agency licensed under
885subsection (2), the agent identification number for each owner
886who is a licensed agent, proof that the agency qualifies for
887registration as provided in s. 626.112(9)(7), and any other
888additional information that the department determines is
889necessary in order to demonstrate that the agency qualifies for
890registration. The application must be signed by the owner or
891owners of the agency. If the agency is incorporated, the
892application must be signed by the president and the secretary of
893the corporation. An agent who owns the agency need not file
894fingerprints with the department if the agent obtained a license
895under this chapter and the license is currently valid.
896     (a)  If an application for registration is denied, the
897agency must file an application for licensure no later than 30
898days after the date of the denial of registration.
899     (b)  A registered insurance agency must file an application
900for licensure no later than 30 days after the date that any
901person who is not a licensed and appointed agent in this state
902acquires any ownership interest in the agency. If an agency
903fails to file an application for licensure in compliance with
904this paragraph, the department shall impose an administrative
905penalty in an amount of up to $5,000 on the agency.
906     (c)  Sections 626.6115 and 626.6215 do not apply to
907agencies registered under this subsection.
908     Section 9.  Subsection (2) of section 626.7845, Florida
909Statutes, is amended to read:
910     626.7845  Prohibition against unlicensed transaction of
911life insurance.-
912     (2)  Except as provided in s. 626.112(8)(6), with respect
913to any line of authority specified in s. 626.015(10), no
914individual shall, unless licensed as a life agent:
915     (a)  Solicit insurance or annuities or procure
916applications;
917     (b)  In this state, engage or hold himself or herself out
918as engaging in the business of analyzing or abstracting
919insurance policies or of counseling or advising or giving
920opinions to persons relative to insurance or insurance contracts
921other than:
922     1.  As a consulting actuary advising an insurer; or
923     2.  As to the counseling and advising of labor unions,
924associations, trustees, employers, or other business entities,
925the subsidiaries and affiliates of each, relative to their
926interests and those of their members or employees under
927insurance benefit plans; or
928     (c)  In this state, from this state, or with a resident of
929this state, offer or attempt to negotiate on behalf of another
930person a viatical settlement contract as defined in s. 626.9911.
931     Section 10.  Section 626.8305, Florida Statutes, is amended
932to read:
933     626.8305  Prohibition against the unlicensed transaction of
934health insurance.-Except as provided in s. 626.112(8)(6), with
935respect to any line of authority specified in s. 626.015(6), no
936individual shall, unless licensed as a health agent:
937     (1)  Solicit insurance or procure applications; or
938     (2)  In this state, engage or hold himself or herself out
939as engaging in the business of analyzing or abstracting
940insurance policies or of counseling or advising or giving
941opinions to persons relative to insurance contracts other than:
942     (a)  As a consulting actuary advising insurers; or
943     (b)  As to the counseling and advising of labor unions,
944associations, trustees, employers, or other business entities,
945the subsidiaries and affiliates of each, relative to their
946interests and those of their members or employees under
947insurance benefit plans.
948     Section 11.  Paragraph (a) of subsection (2) of section
949626.8411, Florida Statutes, is amended to read:
950     626.8411  Application of Florida Insurance Code provisions
951to title insurance agents or agencies.-
952     (2)  The following provisions of part I do not apply to
953title insurance agents or title insurance agencies:
954     (a)  Section 626.112(9)(7), relating to licensing of
955insurance agencies.
956     Section 12.  This act shall take effect July 1, 2011.


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