Florida Senate - 2012                        COMMITTEE AMENDMENT
       Bill No. SB 1844
                                Barcode 425232                          
                              LEGISLATIVE ACTION                        
                    Senate             .             House              
                  Comm: RCS            .                                
                  02/02/2012           .                                

       The Committee on Banking and Insurance (Hays) recommended the
    1         Senate Amendment (with title amendment)
    3         Delete everything after the enacting clause
    4  and insert:
    5         Section 1. Subsection (8) of section 624.402, Florida
    6  Statutes, is amended, and subsection (9) is added to that
    7  section, to read:
    8         624.402 Exceptions, certificate of authority required.—A
    9  certificate of authority shall not be required of an insurer
   10  with respect to:
   11         (8)(a) An insurer domiciled outside the United States
   12  covering only persons who, at the time of issuance or renewal,
   13  are nonresidents of the United States if:
   14         1. The insurer or any affiliated person as defined in s.
   15  624.04 under common ownership or control with the insurer does
   16  not solicit, sell, or accept application for any insurance
   17  policy or contract to be delivered or issued for delivery to any
   18  person in any state;
   19         2. The insurer registers with the office via a letter of
   20  notification upon commencing business from this state;
   21         3. The insurer provides the following information, in
   22  English, to the office annually by March 1:
   23         a. The name of the insurer; the country of domicile; the
   24  address of the insurer’s principal office and office in this
   25  state; the names of the owners of the insurer and their
   26  percentage of ownership; the names of the officers and directors
   27  of the insurer; the name, e-mail, and telephone number of a
   28  contact person for the insurer; and the number of individuals
   29  who are employed by the insurer or its affiliates in this state;
   30         b. The lines of insurance and types of products offered by
   31  the insurer;
   32         c. A statement from the applicable regulatory body of the
   33  insurer’s domicile certifying that the insurer is licensed or
   34  registered for those lines of insurance and types of products in
   35  that domicile; and
   36         d. A copy of the filings required by the applicable
   37  regulatory body of the insurer’s country of domicile in that
   38  country’s official language or in English, if available;
   39         4. All certificates, policies, or contracts issued in this
   40  state showing coverage under the insurer’s policy include the
   41  following statement in a contrasting color and at least 10-point
   42  type: “The policy providing your coverage and the insurer
   43  providing this policy have not been approved by the Florida
   44  Office of Insurance Regulation”; and
   45         5. If In the event the insurer ceases to do business from
   46  this state, the insurer will provide written notification to the
   47  office within 30 days after cessation.
   48         (b) For purposes of this subsection, “nonresident” means a
   49  trust or other entity organized and domiciled under the laws of
   50  a country other than the United States or a person who resides
   51  in and maintains a physical place of domicile in a country other
   52  than the United States, which he or she recognizes as and
   53  intends to maintain as his or her permanent home. A nonresident
   54  does not include an unauthorized immigrant present in the United
   55  States. Notwithstanding any other provision of law, it is
   56  conclusively presumed, for purposes of this subsection, that a
   57  person is a resident of the United States if the such person
   58  has:
   59         1. Had his or her principal place of domicile in the United
   60  States for 180 days or more in the 365 days before prior to
   61  issuance or renewal of the policy;
   62         2. Registered to vote in any state;
   63         3. Made a statement of domicile in any state; or
   64         4. Filed for homestead tax exemption on property in any
   65  state.
   66         (c) Subject to the limitations provided in this subsection,
   67  services, including those listed in s. 624.10, may be provided
   68  by the insurer or an affiliated person as defined in s. 624.04
   69  under common ownership or control with the insurer.
   70         (d) An alien insurer transacting insurance in this state
   71  without complying with this subsection is shall be in violation
   72  of this chapter and subject to the penalties provided in s.
   73  624.15.
   74         (9)(a) Life insurance policies or annuity contracts may be
   75  solicited, sold, or issued in this state by an insurer domiciled
   76  outside the United States, covering only persons who, at the
   77  time of issuance are nonresidents of the United States, provided
   78  that:
   79         1. The insurer is currently an authorized insurer in his or
   80  her country of domicile as to the kind or kinds of insurance
   81  proposed to be offered and must have been such an insurer for
   82  not fewer than the immediately preceding 3 years, or must be the
   83  wholly owned subsidiary of such authorized insurer or must be
   84  the wholly owned subsidiary of an already eligible authorized
   85  insurer as to the kind or kinds of insurance proposed for a
   86  period of not fewer than the immediately preceding 3 years.
   87  However, the office may waive the 3-year requirement if the
   88  insurer has operated successfully for a period of at least the
   89  immediately preceding year and has capital and surplus of not
   90  less than $25 million.
   91         2. Before the office may grant eligibility, the requesting
   92  insurer furnishes the office with a duly authenticated copy of
   93  its current annual financial statement, in English, and with all
   94  monetary values therein expressed in United States dollars, at
   95  an exchange rate then-current and shown in the statement, in the
   96  case of statements originally made in the currencies of other
   97  countries, and with such additional information relative to the
   98  insurer as the office may request.
   99         3. The insurer has and maintains surplus as to
  100  policyholders of not less than $15 million. Any such surplus as
  101  to policyholders shall be represented by investments consisting
  102  of eligible investments for like funds of like domestic insurers
  103  under part II of chapter 625; however, any such surplus as to
  104  policyholders may be represented by investments permitted by the
  105  domestic regulator of such alien insurance company if such
  106  investments are substantially similar in terms of quality,
  107  liquidity, and security to eligible investments for like funds
  108  of like domestic insurers under part II of chapter 625.
  109         4. The insurer has of good reputation as to providing
  110  service to its policyholders and the payment of losses and
  111  claims.
  112         5. To maintain eligibility, the insurer furnishes the
  113  office within the time period specified in s. 624.424(1), a duly
  114  authenticated copy of its current annual and quarterly financial
  115  statements, in English, and with all monetary values therein
  116  expressed in United States dollars, at an exchange rate then
  117  current and shown in the statement, in the case of statements
  118  originally made in the currencies of other countries, and with
  119  such additional information relative to the insurer as the
  120  office may request.
  121         6. An insurer receiving eligibility under this subsection
  122  agrees to make its books and records pertaining to its
  123  operations in this state available for inspection during normal
  124  business hours upon request of the office.
  125         7. The insurer notifies the applicant in clear and
  126  conspicuous 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. This paragraph does not
  136  impose upon the office any duty or responsibility to determine
  137  the actual financial condition or claims practices of any
  138  unauthorized insurer, and the status of eligibility, if granted
  139  by the office, indicates only that the insurer appears to be
  140  financially sound and to have satisfactory claims practices and
  141  that the office has no credible evidence to the contrary.
  142         (b) If the office has reason to believe that an insurer
  143  issuing policies or contracts pursuant to this subsection is
  144  insolvent or is in unsound financial condition, does not make
  145  reasonable prompt payment of benefits, or is no longer eligible
  146  under the conditions specified in this subsection, the office
  147  may conduct an examination or investigation in accordance with
  148  s. 624.316, s. 624.3161, or s. 624.320 and, if the findings of
  149  the examination or investigation warrant, may withdraw the
  150  eligibility of the insurer to issue policies or contracts
  151  pursuant to this subsection without having a certificate of
  152  authority issued by the office.
  153         (c) This subsection does not provide an exception to the
  154  agent licensure requirements of chapter 626. A insurer issuing
  155  policies or contracts pursuant to this subsection shall appoint
  156  the agents that the insurer uses to sell such policies or
  157  contracts as provided in chapter 626.
  158         (d) An insurer issuing policies or contracts pursuant to
  159  this subsection is subject to part IX of chapter 626, Unfair
  160  Insurance Trade Practices Act, and the office may take such
  161  actions against the insurer for a violation as are provided in
  162  that part.
  163         (e) Policies and contracts issued pursuant to this
  164  subsection are not subject to the premium tax specified in s.
  165  624.509.
  166         (f) Applications for life insurance coverage offered under
  167  this subsection must contain, in contrasting color and not less
  168  than 12-point type, the following statement on the same page as
  169  the applicant’s signature:
  171         This policy is primarily governed by the laws of a
  172         foreign country. As a result, all of the rating and
  173         underwriting laws applicable to policies filed in this
  174         state do not apply to this coverage, which may result
  175         in your premiums being higher than would be
  176         permissible under a Florida-approved policy. A
  177         purchase of individual life insurance should be
  178         considered carefully, as future medical conditions may
  179         make it impossible to qualify for another individual
  180         life policy. If the insurer issuing your policy
  181         becomes insolvent, this policy is not covered by the
  182         Florida Life and Health Insurance Guaranty
  183         Association. For information concerning individual
  184         life coverage under a Florida-approved policy, consult
  185         your agent or the Florida Department of Financial
  186         Services.
  188         (g) All life insurance policies and annuity contracts
  189  issued pursuant to this subsection must contain on the first
  190  page of the policy or contract, in contrasting color and not
  191  less than 10-point type, the following statement:
  193         The benefits of the policy providing your coverage are
  194         governed primarily by the law of a country other than
  195         the United States.
  197         (h) All single-premium life insurance policies and single
  198  premium annuity contracts issued to persons who are not
  199  residents of the United States and are not nonresidents
  200  illegally residing in the United States pursuant to this
  201  subsection are subject to chapter 896.
  202         (i) For purposes of this subsection, the term “nonresident”
  203  means a trust or other entity or person as defined in subsection
  204  624.402(8).
  205         (j) An alien insurer transacting insurance in this state
  206  without complying with this subsection is in violation of this
  207  chapter and subject to the penalties provided in s. 624.15, and
  208  must also pay the fine required for each violation as prescribed
  209  by s. 626.10.
  210         Section 2. This act shall take effect upon becoming a law.
  212  ================= T I T L E  A M E N D M E N T ================
  213         And the title is amended as follows:
  214         Delete everything before the enacting clause
  215  and insert:
  216                        A bill to be entitled                      
  217         An act relating to alien insurers; amending s.
  218         624.402, F.S.; revising a provision exempting alien
  219         insurers from the requirement to obtain a certificate
  220         of authority; revising the definition of the term
  221         “nonresident”; providing that a life insurance policy
  222         and annuity contract may be issued by an insurer
  223         domiciled outside the United States under certain
  224         conditions; specifying the terms and conditions that
  225         must be satisfied before an alien insured may issue a
  226         policy or contract; authorizing the Office of
  227         Insurance Regulation to conduct an examination of an
  228         alien insurer if the office has reason to believe that
  229         the insurer is insolvent or is in unsound financial
  230         condition; providing that an alien insurer issuing
  231         policies or contracts in this state is subject to part
  232         IX of ch. 626, F.S., relating to unfair insurance
  233         trade practices; authorizing the office to enforce
  234         part IX of ch. 626, F.S.; providing that policies and
  235         contracts issued pursuant to the act are not subject
  236         to the premium tax; requiring that an application for
  237         a life insurance policy or an annuity contract contain
  238         certain specified statements to protect consumers;
  239         providing an effective date.