Florida Senate - 2013                        COMMITTEE AMENDMENT
       Bill No. SB 1046
                                Barcode 457546                          
                              LEGISLATIVE ACTION                        
                    Senate             .             House              
                   Comm: RS            .                                
                  04/02/2013           .                                

       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. Paragraph (b) of subsection (6) of section
    6  215.555, Florida Statutes, is amended to read:
    7         215.555 Florida Hurricane Catastrophe Fund.—
    8         (6) REVENUE BONDS.—
    9         (b) Emergency assessments.—
   10         1. If the board determines that the amount of revenue
   11  produced under subsection (5) is insufficient to fund the
   12  obligations, costs, and expenses of the fund and the
   13  corporation, including repayment of revenue bonds and that
   14  portion of the debt service coverage not met by reimbursement
   15  premiums, the board shall direct the Office of Insurance
   16  Regulation to levy, by order, an emergency assessment on direct
   17  premiums for all property and casualty lines of business in this
   18  state, including property and casualty business of surplus lines
   19  insurers regulated under part VIII of chapter 626, but not
   20  including any workers’ compensation premiums or medical
   21  malpractice premiums. As used in this subsection, the term
   22  “property and casualty business” includes all lines of business
   23  identified on Form 2, Exhibit of Premiums and Losses, in the
   24  annual statement required of authorized insurers by s. 624.424
   25  and any rule adopted under this section, except for those lines
   26  identified as accident and health insurance and except for
   27  policies written under the National Flood Insurance Program. The
   28  assessment shall be specified as a percentage of direct written
   29  premium and is subject to annual adjustments by the board in
   30  order to meet debt obligations. The same percentage shall apply
   31  to all policies in lines of business subject to the assessment
   32  issued or renewed during the 12-month period beginning on the
   33  effective date of the assessment.
   34         2. A premium is not subject to an annual assessment under
   35  this paragraph in excess of 6 percent of premium with respect to
   36  obligations arising out of losses attributable to any one
   37  contract year, and a premium is not subject to an aggregate
   38  annual assessment under this paragraph in excess of 10 percent
   39  of premium. An annual assessment under this paragraph shall
   40  continue as long as the revenue bonds issued with respect to
   41  which the assessment was imposed are outstanding, including any
   42  bonds the proceeds of which were used to refund the revenue
   43  bonds, unless adequate provision has been made for the payment
   44  of the bonds under the documents authorizing issuance of the
   45  bonds.
   46         3. Emergency assessments shall be collected from
   47  policyholders. Emergency assessments shall be remitted by
   48  insurers as a percentage of direct written premium for the
   49  preceding calendar quarter as specified in the order from the
   50  Office of Insurance Regulation. The office shall verify the
   51  accurate and timely collection and remittance of emergency
   52  assessments and shall report the information to the board in a
   53  form and at a time specified by the board. Each insurer
   54  collecting assessments shall provide the information with
   55  respect to premiums and collections as may be required by the
   56  office to enable the office to monitor and verify compliance
   57  with this paragraph.
   58         4. With respect to assessments of surplus lines premiums,
   59  each surplus lines agent shall collect the assessment at the
   60  same time as the agent collects the surplus lines tax required
   61  by s. 626.932, and the surplus lines agent shall remit the
   62  assessment to the Florida Surplus Lines Service Office created
   63  by s. 626.921 at the same time as the agent remits the surplus
   64  lines tax to the Florida Surplus Lines Service Office. The
   65  emergency assessment on each insured procuring coverage and
   66  filing under s. 626.938 shall be remitted by the insured to the
   67  Florida Surplus Lines Service Office at the time the insured
   68  pays the surplus lines tax to the Florida Surplus Lines Service
   69  Office. The Florida Surplus Lines Service Office shall remit the
   70  collected assessments to the fund or corporation as provided in
   71  the order levied by the Office of Insurance Regulation. The
   72  Florida Surplus Lines Service Office shall verify the proper
   73  application of such emergency assessments and shall assist the
   74  board in ensuring the accurate and timely collection and
   75  remittance of assessments as required by the board. The Florida
   76  Surplus Lines Service Office shall annually calculate the
   77  aggregate written premium on property and casualty business,
   78  other than workers’ compensation and medical malpractice,
   79  procured through surplus lines agents and insureds procuring
   80  coverage and filing under s. 626.938 and shall report the
   81  information to the board in a form and at a time specified by
   82  the board.
   83         5. Any assessment authority not used for a particular
   84  contract year may be used for a subsequent contract year. If,
   85  for a subsequent contract year, the board determines that the
   86  amount of revenue produced under subsection (5) is insufficient
   87  to fund the obligations, costs, and expenses of the fund and the
   88  corporation, including repayment of revenue bonds and that
   89  portion of the debt service coverage not met by reimbursement
   90  premiums, the board shall direct the Office of Insurance
   91  Regulation to levy an emergency assessment up to an amount not
   92  exceeding the amount of unused assessment authority from a
   93  previous contract year or years, plus an additional 4 percent
   94  provided that the assessments in the aggregate do not exceed the
   95  limits specified in subparagraph 2.
   96         6. The assessments otherwise payable to the corporation
   97  under this paragraph shall be paid to the fund unless and until
   98  the Office of Insurance Regulation and the Florida Surplus Lines
   99  Service Office have received from the corporation and the fund a
  100  notice, which shall be conclusive and upon which they may rely
  101  without further inquiry, that the corporation has issued bonds
  102  and the fund has no agreements in effect with local governments
  103  under paragraph (c). On or after the date of the notice and
  104  until the date the corporation has no bonds outstanding, the
  105  fund shall have no right, title, or interest in or to the
  106  assessments, except as provided in the fund’s agreement with the
  107  corporation.
  108         7. Emergency assessments are not premium and are not
  109  subject to the premium tax, to the surplus lines tax, to any
  110  fees, or to any commissions. An insurer is liable for all
  111  assessments that it collects and must treat the failure of an
  112  insured to pay an assessment as a failure to pay the premium. An
  113  insurer is not liable for uncollectible assessments.
  114         8. When an insurer is required to return an unearned
  115  premium, it shall also return any collected assessment
  116  attributable to the unearned premium. A credit adjustment to the
  117  collected assessment may be made by the insurer with regard to
  118  future remittances that are payable to the fund or corporation,
  119  but the insurer is not entitled to a refund.
  120         9. When a surplus lines insured or an insured who has
  121  procured coverage and filed under s. 626.938 is entitled to the
  122  return of an unearned premium, the Florida Surplus Lines Service
  123  Office shall provide a credit or refund to the agent or such
  124  insured for the collected assessment attributable to the
  125  unearned premium before prior to remitting the emergency
  126  assessment collected to the fund or corporation.
  127         10. The exemption of medical malpractice insurance premiums
  128  from emergency assessments under this paragraph is repealed May
  129  31, 2013, and medical malpractice insurance premiums shall be
  130  subject to emergency assessments attributable to loss events
  131  occurring in the contract years commencing on June 1, 2013.
  132         Section 2. Subsection (1) of section 316.646, Florida
  133  Statutes, is amended, and subsection (5) is added to that
  134  section, to read:
  135         316.646 Security required; proof of security and display
  136  thereof; dismissal of cases.—
  137         (1) Any person required by s. 324.022 to maintain property
  138  damage liability security, required by s. 324.023 to maintain
  139  liability security for bodily injury or death, or required by s.
  140  627.733 to maintain personal injury protection security on a
  141  motor vehicle shall have in his or her immediate possession at
  142  all times while operating such motor vehicle proper proof of
  143  maintenance of the required security. Such proof shall be a
  144  uniform proof-of-insurance card, in paper or electronic format,
  145  in a form prescribed by the department, a valid insurance
  146  policy, an insurance policy binder, a certificate of insurance,
  147  or such other proof as may be prescribed by the department. If a
  148  person presents an electronic device to a law enforcement
  149  officer for the purpose of displaying a proof-of-insurance card
  150  in an electronic format:
  151         (a) The person presenting the device is not deemed to
  152  consent to access to any information on the electronic device
  153  other than the displayed proof-of-insurance card.
  154         (b) The law enforcement officer is not liable for any
  155  damage to the electronic device.
  156         (5) The department may adopt rules to implement this
  157  section.
  158         Section 3. Paragraph (a) of subsection (5) of section
  159  320.02, Florida Statutes, is amended to read:
  160         320.02 Registration required; application for registration;
  161  forms.—
  162         (5)(a) Proof that personal injury protection benefits have
  163  been purchased when required under s. 627.733, that property
  164  damage liability coverage has been purchased as required under
  165  s. 324.022, that bodily injury or death coverage has been
  166  purchased if required under s. 324.023, and that combined bodily
  167  liability insurance and property damage liability insurance have
  168  been purchased when required under s. 627.7415 shall be provided
  169  in the manner prescribed by law by the applicant at the time of
  170  application for registration of any motor vehicle that is
  171  subject to such requirements. The issuing agent shall refuse to
  172  issue registration if such proof of purchase is not provided.
  173  Insurers shall furnish uniform proof-of-purchase cards, in paper
  174  or electronic format, in a form prescribed by the department and
  175  shall include the name of the insured’s insurance company, the
  176  coverage identification number, and the make, year, and vehicle
  177  identification number of the vehicle insured. The card shall
  178  contain a statement notifying the applicant of the penalty
  179  specified in s. 316.646(4). The card or insurance policy,
  180  insurance policy binder, or certificate of insurance or a
  181  photocopy of any of these; an affidavit containing the name of
  182  the insured’s insurance company, the insured’s policy number,
  183  and the make and year of the vehicle insured; or such other
  184  proof as may be prescribed by the department shall constitute
  185  sufficient proof of purchase. If an affidavit is provided as
  186  proof, it shall be in substantially the following form:
  188  Under penalty of perjury, I ...(Name of insured)... do hereby
  189  certify that I have ...(Personal Injury Protection, Property
  190  Damage Liability, and, when required, Bodily Injury
  191  Liability)... Insurance currently in effect with ...(Name of
  192  insurance company)... under ...(policy number)... covering
  193  ...(make, year, and vehicle identification number of
  194  vehicle).... ...(Signature of Insured)...
  196  Such affidavit shall include the following warning:
  203  When an application is made through a licensed motor vehicle
  204  dealer as required in s. 319.23, the original or a photostatic
  205  copy of such card, insurance policy, insurance policy binder, or
  206  certificate of insurance or the original affidavit from the
  207  insured shall be forwarded by the dealer to the tax collector of
  208  the county or the Department of Highway Safety and Motor
  209  Vehicles for processing. By executing the aforesaid affidavit,
  210  no licensed motor vehicle dealer will be liable in damages for
  211  any inadequacy, insufficiency, or falsification of any statement
  212  contained therein. A card shall also indicate the existence of
  213  any bodily injury liability insurance voluntarily purchased.
  214         Section 4. Subsection (8) is added to section 554.1021,
  215  Florida Statutes, to read:
  216         554.1021 Definitions.—As used in ss. 554.1011-554.115:
  217         (8) “Authorized inspection agency” means:
  218         (a) Any county, city, town, or other governmental
  219  subdivision that has adopted and administers, at a minimum,
  220  Section I of the A.S.M.E. Boiler and Pressure Vessel Code as a
  221  legal requirement and whose inspectors hold valid certificates
  222  of competency in accordance with s. 554.113; or
  223         (b) Any insurance company that is licensed or registered by
  224  an appropriate authority of any state of the United States or
  225  province of Canada and whose inspectors hold valid certificates
  226  of competency in accordance with s. 554.113.
  227         Section 5. Section 554.107, Florida Statutes, is amended to
  228  read:
  229         554.107 Special inspectors.—
  230         (1) Upon application by any authorized inspection agency
  231  company licensed to insure boilers in this state, the chief
  232  inspector shall issue a certificate of competency as a special
  233  inspector to any inspector employed by the authorized inspection
  234  agency company, provided that such inspector satisfies the
  235  competency requirements for inspectors as provided in s.
  236  554.113.
  237         (2) The certificate of competency of a special inspector
  238  shall remain in effect only so long as the special inspector is
  239  employed by an authorized inspection agency a company licensed
  240  to insure boilers in this state. Upon termination of employment
  241  with such agency company, a special inspector shall, in writing,
  242  notify the chief inspector of such termination. Such notice
  243  shall be given within 15 days following the date of termination.
  244         Section 6. Subsection (1) of section 554.109, Florida
  245  Statutes, is amended to read:
  246         554.109 Exemptions.—
  247         (1) Any insurance company insuring a boiler located in a
  248  public assembly location in this state shall inspect or contract
  249  with an authorized inspection agency to inspect such boiler so
  250  insured, and shall annually report to the department the
  251  identity of any authorized inspection agency performing any
  252  required boiler inspection on behalf of the company. A any
  253  county, city, town, or other governmental subdivision that which
  254  has adopted into law the Boiler and Pressure Vessel Code of the
  255  American Society of Mechanical Engineers and the National Board
  256  Inspection Code for the construction, installation, inspection,
  257  maintenance, and repair of boilers, regulating such boilers in
  258  public assembly locations, shall inspect such boilers so
  259  regulated; provided that such inspection shall be conducted by a
  260  special inspector licensed pursuant to ss. 554.1011-554.115.
  261  Upon filing of a report of satisfactory inspection with the
  262  department, such boiler is exempt from inspection by the
  263  department.
  264         Section 7. Paragraph (f) of subsection (1) of section
  265  624.413, Florida Statutes, is amended to read:
  266         624.413 Application for certificate of authority.—
  267         (1) To apply for a certificate of authority, an insurer
  268  shall file its application therefor with the office, upon a form
  269  adopted by the commission and furnished by the office, showing
  270  its name; location of its home office and, if an alien insurer,
  271  its principal office in the United States; kinds of insurance to
  272  be transacted; state or country of domicile; and such additional
  273  information as the commission reasonably requires, together with
  274  the following documents:
  275         (f) If a foreign or alien insurer, a copy of the report of
  276  the most recent examination of the insurer certified by the
  277  public official having supervision of insurance in its state of
  278  domicile or of entry into the United States. The end of the most
  279  recent year covered by the examination must be within the 5-year
  280  3-year period preceding the date of application. In lieu of the
  281  certified examination report, the office may accept an audited
  282  certified public accountant’s report prepared on a basis
  283  consistent with the insurance laws of the insurer’s state of
  284  domicile, certified by the public official having supervision of
  285  insurance in its state of domicile or of entry into the United
  286  States.
  287         Section 8. Subsection (4) is added to section 626.0428,
  288  Florida Statutes, to read:
  289         626.0428 Agency personnel powers, duties, and limitations.—
  290         (4)(a) Each place of business established by an agent or
  291  agency, firm, corporation, or association shall be in the active
  292  full-time charge of a licensed and appointed agent holding the
  293  required agent licenses to transact the lines of insurance being
  294  handled at the location.
  295         (b) Notwithstanding paragraph (a), the licensed agent in
  296  charge of an insurance agency may also be the agent in charge of
  297  additional branch office locations of the agency if insurance
  298  activities requiring licensure as an insurance agent do not
  299  occur at any location when the agent is not physically present
  300  and unlicensed employees at the location do not engage in any
  301  insurance activities requiring licensure as an insurance agent
  302  or customer representative.
  303         (c) An insurance agency and each branch place of business
  304  of an insurance agency shall designate an agent in charge and
  305  file the name and license number of the agent in charge and the
  306  physical address of the insurance agency location with the
  307  department at the department’s designated website. The
  308  designation of the agent in charge may be changed at the option
  309  of the agency, and any change shall be effective upon
  310  notification to the department. Notice to the department must be
  311  provided within 30 days after such change.
  312         (d) For the purposes of this subsection, an “agent in
  313  charge” is the licensed and appointed agent who is responsible
  314  for the supervision of all individuals within an insurance
  315  agency location, regardless of whether such individuals deal
  316  with the general public in the solicitation or negotiation of
  317  insurance contracts or the collection or accounting of moneys.
  318         (e) An agent in charge of an insurance agency is
  319  accountable for any wrongful acts, misconduct, or violations of
  320  provisions of this code committed by the agent or by any person
  321  under his or her supervision while acting on behalf of the
  322  agency. This section may not be construed to render the agent in
  323  charge criminally liable for an act unless he or she personally
  324  committed or knew or should have known of the act and of the
  325  facts constituting a violation of this chapter.
  326         (f)An insurance agency location may not conduct the
  327  business of insurance unless the agency designates an agent in
  328  charge at all times. If the agency fails to update the
  329  designation of the agent in charge within 90 days after the date
  330  of a change in designation, the department shall automatically
  331  revoke the agency’s license.
  332         Section 9. Subsection (7) of section 626.112, Florida
  333  Statutes, is amended to read:
  334         626.112 License and appointment required; agents, customer
  335  representatives, adjusters, insurance agencies, service
  336  representatives, managing general agents.—
  337         (7)(a) Effective October 1, 2006, No individual, firm,
  338  partnership, corporation, association, or any other entity shall
  339  act in its own name or under a trade name, directly or
  340  indirectly, as an insurance agency, unless it complies with s.
  341  626.172 with respect to possessing an insurance agency license
  342  for each place of business at which it engages in any activity
  343  which may be performed only by a licensed insurance agent.
  344  However, an insurance agency that is owned and operated by a
  345  single licensed agent conducting business in his or her
  346  individual name and not employing or otherwise using the
  347  services of or appointing other licensees shall be exempt from
  348  the agency licensing requirements of this subsection. A branch
  349  place of business that is established by a licensed agency is
  350  considered a branch agency and is not required to be licensed so
  351  long as it transacts business under the same name and federal
  352  tax identification number as the licensed agency and has
  353  designated a licensed agent in charge of the location as
  354  required by s. 626.0428 and the address and telephone number of
  355  the location have been submitted to the department for inclusion
  356  in the licensing record of the licensed agency within 30 days
  357  after insurance transactions begin at the location Each agency
  358  engaged in business in this state before January 1, 2003, which
  359  is wholly owned by insurance agents currently licensed and
  360  appointed under this chapter, each incorporated agency whose
  361  voting shares are traded on a securities exchange, each agency
  362  designated and subject to supervision and inspection as a branch
  363  office under the rules of the National Association of Securities
  364  Dealers, and each agency whose primary function is offering
  365  insurance as a service or member benefit to members of a
  366  nonprofit corporation may file an application for registration
  367  in lieu of licensure in accordance with s. 626.172(3). Each
  368  agency engaged in business before October 1, 2006, shall file an
  369  application for licensure or registration on or before October
  370  1, 2006.
  371         (b)1. If an agency is required to be licensed but fails to
  372  file an application for licensure in accordance with this
  373  section, the department shall impose on the agency an
  374  administrative penalty in an amount of up to $10,000.
  375         2. If an agency is eligible for registration but fails to
  376  file an application for registration or an application for
  377  licensure in accordance with this section, the department shall
  378  impose on the agency an administrative penalty in an amount of
  379  up to $5,000.
  380         (c)(b)Effective October 1, 2013, the department must
  381  automatically convert the registration of an approved a
  382  registered insurance agency to shall, as a condition precedent
  383  to continuing business, obtain an insurance agency license if
  384  the department finds that, with respect to any majority owner,
  385  partner, manager, director, officer, or other person who manages
  386  or controls the agency, any person has:
  387         1. Been found guilty of, or has pleaded guilty or nolo
  388  contendere to, a felony in this state or any other state
  389  relating to the business of insurance or to an insurance agency,
  390  without regard to whether a judgment of conviction has been
  391  entered by the court having jurisdiction of the cases.
  392         2. Employed any individual in a managerial capacity or in a
  393  capacity dealing with the public who is under an order of
  394  revocation or suspension issued by the department. An insurance
  395  agency may request, on forms prescribed by the department,
  396  verification of any person’s license status. If a request is
  397  mailed within 5 working days after an employee is hired, and the
  398  employee’s license is currently suspended or revoked, the agency
  399  shall not be required to obtain a license, if the unlicensed
  400  person’s employment is immediately terminated.
  401         3. Operated the agency or permitted the agency to be
  402  operated in violation of s. 626.747.
  403         4. With such frequency as to have made the operation of the
  404  agency hazardous to the insurance-buying public or other
  405  persons:
  406         a. Solicited or handled controlled business. This
  407  subparagraph shall not prohibit the licensing of any lending or
  408  financing institution or creditor, with respect to insurance
  409  only, under credit life or disability insurance policies of
  410  borrowers from the institutions, which policies are subject to
  411  part IX of chapter 627.
  412         b. Misappropriated, converted, or unlawfully withheld
  413  moneys belonging to insurers, insureds, beneficiaries, or others
  414  and received in the conduct of business under the license.
  415         c. Unlawfully rebated, attempted to unlawfully rebate, or
  416  unlawfully divided or offered to divide commissions with
  417  another.
  418         d. Misrepresented any insurance policy or annuity contract,
  419  or used deception with regard to any policy or contract, done
  420  either in person or by any form of dissemination of information
  421  or advertising.
  422         e. Violated any provision of this code or any other law
  423  applicable to the business of insurance in the course of dealing
  424  under the license.
  425         f. Violated any lawful order or rule of the department.
  426         g. Failed or refused, upon demand, to pay over to any
  427  insurer he or she represents or has represented any money coming
  428  into his or her hands belonging to the insurer.
  429         h. Violated the provision against twisting as defined in s.
  430  626.9541(1)(l).
  431         i. In the conduct of business, engaged in unfair methods of
  432  competition or in unfair or deceptive acts or practices, as
  433  prohibited under part IX of this chapter.
  434         j. Willfully overinsured any property insurance risk.
  435         k. Engaged in fraudulent or dishonest practices in the
  436  conduct of business arising out of activities related to
  437  insurance or the insurance agency.
  438         l. Demonstrated lack of fitness or trustworthiness to
  439  engage in the business of insurance arising out of activities
  440  related to insurance or the insurance agency.
  441         m. Authorized or knowingly allowed individuals to transact
  442  insurance who were not then licensed as required by this code.
  443         5. Knowingly employed any person who within the preceding 3
  444  years has had his or her relationship with an agency terminated
  445  in accordance with paragraph (d).
  446         6. Willfully circumvented the requirements or prohibitions
  447  of this code.
  448         Section 10. Subsections (2), (3), and (4) of section
  449  626.172, Florida Statutes, are amended to read:
  450         626.172 Application for insurance agency license.—
  451         (2) An application for an insurance agency license must
  452  shall be signed by the owner or owners of the agency. If the
  453  agency is incorporated, the application must shall be signed by
  454  the president and secretary of the corporation. The application
  455  for an insurance agency license must shall include:
  456         (a) The name of each majority owner, partner, officer, and
  457  director of the insurance agency.
  458         (b) The residence address of each person required to be
  459  listed in the application under paragraph (a).
  460         (c) The name of the insurance agency, and its principal
  461  business street address and a valid e-mail address of the
  462  insurance agency.
  463         (d) The physical address location of each branch agency,
  464  including its name, e-mail address, and telephone number and the
  465  date that the branch location began transacting insurance office
  466  and the name under which each agency office conducts or will
  467  conduct business.
  468         (e) The name of each agent to be in full-time charge of an
  469  agency office and specification of which office, including
  470  branch locations.
  471         (f) The fingerprints of each of the following:
  472         1. A sole proprietor;
  473         2. Each partner;
  474         3. Each owner of an unincorporated agency;
  475         4. Each owner who directs or participates in the management
  476  or control of an incorporated agency whose shares are not traded
  477  on a securities exchange;
  478         5. The president, senior vice presidents, treasurer,
  479  secretary, and directors of the agency; and
  480         6. Any other person who directs or participates in the
  481  management or control of the agency, whether through the
  482  ownership of voting securities, by contract, by ownership of any
  483  agency bank accounts, or otherwise.
  485  Fingerprints must be taken by a law enforcement agency or other
  486  entity approved by the department and must be accompanied by the
  487  fingerprint processing fee specified in s. 624.501. Fingerprints
  488  must shall be processed in accordance with s. 624.34. However,
  489  fingerprints need not be filed for any individual who is
  490  currently licensed and appointed under this chapter. This
  491  paragraph does not apply to corporations whose voting shares are
  492  traded on a securities exchange.
  493         (g) Such additional information as the department requires
  494  by rule to ascertain the trustworthiness and competence of
  495  persons required to be listed on the application and to
  496  ascertain that such persons meet the requirements of this code.
  497  However, the department may not require that credit or character
  498  reports be submitted for persons required to be listed on the
  499  application.
  500         (h) Beginning October 1, 2005, The department must shall
  501  accept the uniform application for nonresident agency licensure.
  502  The department may adopt by rule revised versions of the uniform
  503  application.
  504         (3) The department shall issue a registration as an
  505  insurance agency to any agency that files a written application
  506  with the department and qualifies for registration. The
  507  application for registration shall require the agency to provide
  508  the same information required for an agency licensed under
  509  subsection (2), the agent identification number for each owner
  510  who is a licensed agent, proof that the agency qualifies for
  511  registration as provided in s. 626.112(7), and any other
  512  additional information that the department determines is
  513  necessary in order to demonstrate that the agency qualifies for
  514  registration. The application must be signed by the owner or
  515  owners of the agency. If the agency is incorporated, the
  516  application must be signed by the president and the secretary of
  517  the corporation. An agent who owns the agency need not file
  518  fingerprints with the department if the agent obtained a license
  519  under this chapter and the license is currently valid.
  520         (a) If an application for registration is denied, the
  521  agency must file an application for licensure no later than 30
  522  days after the date of the denial of registration.
  523         (b) A registered insurance agency must file an application
  524  for licensure no later than 30 days after the date that any
  525  person who is not a licensed and appointed agent in this state
  526  acquires any ownership interest in the agency. If an agency
  527  fails to file an application for licensure in compliance with
  528  this paragraph, the department shall impose an administrative
  529  penalty in an amount of up to $5,000 on the agency.
  530         (c) Sections 626.6115 and 626.6215 do not apply to agencies
  531  registered under this subsection.
  532         (3)(4) The department must shall issue a license or
  533  registration to each agency upon approval of the application,
  534  and each agency location must shall display the license or
  535  registration prominently in a manner that makes it clearly
  536  visible to any customer or potential customer who enters the
  537  agency.
  538         Section 11. Paragraph (d) of subsection (1) of section
  539  626.321, Florida Statutes, is amended to read:
  540         626.321 Limited licenses.—
  541         (1) The department shall issue to a qualified applicant a
  542  license as agent authorized to transact a limited class of
  543  business in any of the following categories of limited lines
  544  insurance:
  545         (d) Motor vehicle rental insurance.—
  546         1. License covering only insurance of the risks set forth
  547  in this paragraph when offered, sold, or solicited with and
  548  incidental to the rental or lease of a motor vehicle and which
  549  applies only to the motor vehicle that is the subject of the
  550  lease or rental agreement and the occupants of the motor
  551  vehicle:
  552         a. Excess motor vehicle liability insurance providing
  553  coverage in excess of the standard liability limits provided by
  554  the lessor in the lessor’s lease to a person renting or leasing
  555  a motor vehicle from the licensee’s employer for liability
  556  arising in connection with the negligent operation of the leased
  557  or rented motor vehicle.
  558         b. Insurance covering the liability of the lessee to the
  559  lessor for damage to the leased or rented motor vehicle.
  560         c. Insurance covering the loss of or damage to baggage,
  561  personal effects, or travel documents of a person renting or
  562  leasing a motor vehicle.
  563         d. Insurance covering accidental personal injury or death
  564  of the lessee and any passenger who is riding or driving with
  565  the covered lessee in the leased or rented motor vehicle.
  566         2. Insurance under a motor vehicle rental insurance license
  567  may be issued only if the lease or rental agreement is for no
  568  more than 60 days, the lessee is not provided coverage for more
  569  than 60 consecutive days per lease period, and the lessee is
  570  given written notice that his or her personal insurance policy
  571  providing coverage on an owned motor vehicle may provide
  572  coverage of such risks and that the purchase of the insurance is
  573  not required in connection with the lease or rental of a motor
  574  vehicle. If the lease is extended beyond 60 days, the coverage
  575  may be extended one time only for a period not to exceed an
  576  additional 60 days. Insurance may be provided to the lessee as
  577  an additional insured on a policy issued to the licensee’s
  578  employer.
  579         3. The license may be issued only to the full-time salaried
  580  employee of a licensed general lines agent or to a business
  581  entity that offers motor vehicles for rent or lease if insurance
  582  sales activities authorized by the license are in connection
  583  with and incidental to the rental or lease of a motor vehicle.
  584         a. A license issued to a business entity that offers motor
  585  vehicles for rent or lease encompasses each office, branch
  586  office, employee, or place of business making use of the
  587  entity’s business name in order to offer, solicit, and sell
  588  insurance pursuant to this paragraph.
  589         b. The application for licensure must list the name,
  590  address, and phone number for each office, branch office, or
  591  place of business that is to be covered by the license. The
  592  licensee shall notify the department of the name, address, and
  593  phone number of any new location that is to be covered by the
  594  license before the new office, branch office, or place of
  595  business engages in the sale of insurance pursuant to this
  596  paragraph. The licensee must notify the department within 30
  597  days after closing or terminating an office, branch office, or
  598  place of business. Upon receipt of the notice, the department
  599  shall delete the office, branch office, or place of business
  600  from the license.
  601         c. A licensed and appointed entity is directly responsible
  602  and accountable for all acts of the licensee’s employees.
  603         Section 12. Section 626.382, Florida Statutes, is amended
  604  to read:
  605         626.382 Continuation, expiration of license; insurance
  606  agencies.—The license of any insurance agency shall be issued
  607  for a period of 3 years and shall continue in force until
  608  canceled, suspended, revoked, or otherwise terminated. A license
  609  may be renewed by submitting a renewal request to the department
  610  on a form adopted by department rule.
  611         Section 13. Section 626.601, Florida Statutes, is amended
  612  to read:
  613         626.601 Improper conduct; inquiry; fingerprinting.—
  614         (1) The department or office may, upon its own motion or
  615  upon a written complaint signed by any interested person and
  616  filed with the department or office, inquire into any alleged
  617  improper conduct of any licensed, approved, or certified
  618  insurance agency, agent, adjuster, service representative,
  619  managing general agent, customer representative, title insurance
  620  agent, title insurance agency, mediator, neutral evaluator,
  621  continuing education course provider, instructor, school
  622  official, or monitor group under this code. The department or
  623  office may thereafter initiate an investigation of any such
  624  individual or entity licensee if it has reasonable cause to
  625  believe that the individual or entity licensee has violated any
  626  provision of the insurance code. During the course of its
  627  investigation, the department or office shall contact the
  628  individual or entity licensee being investigated unless it
  629  determines that contacting such individual or entity person
  630  could jeopardize the successful completion of the investigation
  631  or cause injury to the public.
  632         (2) In the investigation by the department or office of the
  633  alleged misconduct, the individual or entity licensee shall,
  634  whenever so required by the department or office, cause the
  635  individual’s or entity’s his or her books and records to be open
  636  for inspection for the purpose of such inquiries.
  637         (3) The complaints against any individual or entity
  638  licensee may be informally alleged and need not be in any such
  639  language as is necessary to charge a crime on an indictment or
  640  information.
  641         (4) The expense for any hearings or investigations under
  642  this law, as well as the fees and mileage of witnesses, may be
  643  paid out of the appropriate fund.
  644         (5) If the department or office, after investigation, has
  645  reason to believe that an individual a licensee may have been
  646  found guilty of or pleaded guilty or nolo contendere to a felony
  647  or a crime related to the business of insurance in this or any
  648  other state or jurisdiction, the department or office may
  649  require the individual licensee to file with the department or
  650  office a complete set of his or her fingerprints, which shall be
  651  accompanied by the fingerprint processing fee set forth in s.
  652  624.501. The fingerprints shall be taken by an authorized law
  653  enforcement agency or other department-approved entity.
  654         (6) The complaint and any information obtained pursuant to
  655  the investigation by the department or office are confidential
  656  and are exempt from the provisions of s. 119.07, unless the
  657  department or office files a formal administrative complaint,
  658  emergency order, or consent order against the individual or
  659  entity licensee. Nothing in This subsection does not shall be
  660  construed to prevent the department or office from disclosing
  661  the complaint or such information as it deems necessary to
  662  conduct the investigation, to update the complainant as to the
  663  status and outcome of the complaint, or to share such
  664  information with any law enforcement agency.
  665         Section 14. Section 626.747, Florida Statutes, is repealed.
  666         Section 15. Paragraph (b) of subsection (1) of section
  667  626.8411, Florida Statutes, is amended to read:
  668         626.8411 Application of Florida Insurance Code provisions
  669  to title insurance agents or agencies.—
  670         (1) The following provisions of part II applicable to
  671  general lines agents or agencies also apply to title insurance
  672  agents or agencies:
  673         (b) Section 626.0428(4)(a) and (b) 626.747, relating to
  674  branch agencies.
  675         Section 16. Subsection (1) of section 626.9914, Florida
  676  Statutes, is amended to read:
  677         626.9914 Suspension, revocation, denial, or nonrenewal of
  678  viatical settlement provider license; grounds; administrative
  679  fine.—
  680         (1) The office shall suspend, revoke, deny, or refuse to
  681  renew the license of any viatical settlement provider if the
  682  office finds that the licensee:
  683         (a) Has made a misrepresentation in the application for the
  684  license;
  685         (b) Has engaged in fraudulent or dishonest practices, or
  686  otherwise has been shown to be untrustworthy or incompetent to
  687  act as a viatical settlement provider;
  688         (c) Demonstrates a pattern of unreasonable payments to
  689  viators;
  690         (d) Has been found guilty of, or has pleaded guilty or nolo
  691  contendere to, any felony, or a misdemeanor involving fraud or
  692  moral turpitude, regardless of whether a judgment of conviction
  693  has been entered by the court;
  694         (e) Has issued viatical settlement contracts that have not
  695  been approved pursuant to this act;
  696         (f) Has failed to honor contractual obligations related to
  697  the business of viatical settlement contracts;
  698         (g) Deals in bad faith with viators;
  699         (h) Has violated any provision of the insurance code or of
  700  this act;
  701         (i) Employs any person who materially influences the
  702  licensee’s conduct and who fails to meet the requirements of
  703  this act; or
  704         (j) No longer meets the requirements for initial licensure;
  705  or
  706         (k) Obtains or utilizes life expectancies from life
  707  expectancy providers who are not registered with the office
  708  pursuant to this act.
  709         Section 17. Section 626.99175, Florida Statutes, is
  710  repealed.
  711         Section 18. Section 626.9919, Florida Statutes, is amended
  712  to read:
  713         626.9919 Notice of change of licensee or registrant’s
  714  address or name.—Each viatical settlement provider licensee and
  715  registered life expectancy provider must provide the office at
  716  least 30 days’ advance notice of any change in the licensee’s or
  717  registrant’s name, residence address, principal business
  718  address, or mailing address.
  719         Section 19. Section 626.992, Florida Statutes, is amended
  720  to read:
  721         626.992 Use of licensed viatical settlement providers and,
  722  viatical settlement brokers, and registered life expectancy
  723  providers required.—
  724         (1) A licensed viatical settlement provider may not use any
  725  person to perform the functions of a viatical settlement broker
  726  as defined in this act unless such person holds a current, valid
  727  life agent license and has appointed himself or herself in
  728  conformance with this chapter.
  729         (2) A viatical settlement broker may not use any person to
  730  perform the functions of a viatical settlement provider as
  731  defined in this act unless such person holds a current, valid
  732  license as a viatical settlement provider.
  733         (3) After July 1, 2006, a person may not operate as a life
  734  expectancy provider unless such person is registered as a life
  735  expectancy provider pursuant to this act.
  736         (4) After July 1, 2006, a viatical settlement provider,
  737  viatical settlement broker, or any other person in the business
  738  of viatical settlements may not obtain life expectancies from a
  739  person who is not registered as a life expectancy provider
  740  pursuant to this act.
  741         Section 20. Section 626.9925, Florida Statutes, is amended
  742  to read:
  743         626.9925 Rules.—The commission may adopt rules to
  744  administer this act, including rules establishing standards for
  745  evaluating advertising by licensees; rules providing for the
  746  collection of data, for disclosures to viators, and for the
  747  reporting of life expectancies, and for the registration of life
  748  expectancy providers; and rules defining terms used in this act
  749  and prescribing recordkeeping requirements relating to executed
  750  viatical settlement contracts.
  751         Section 21. Section 626.99278, Florida Statutes, is amended
  752  to read:
  753         626.99278 Viatical provider anti-fraud plan.—Every licensed
  754  viatical settlement provider and registered life expectancy
  755  provider must adopt an anti-fraud plan and file it with the
  756  Division of Insurance Fraud of the department. Each anti-fraud
  757  plan shall include:
  758         (1) A description of the procedures for detecting and
  759  investigating possible fraudulent acts and procedures for
  760  resolving material inconsistencies between medical records and
  761  insurance applications.
  762         (2) A description of the procedures for the mandatory
  763  reporting of possible fraudulent insurance acts and prohibited
  764  practices set forth in s. 626.99275 to the Division of Insurance
  765  Fraud of the department.
  766         (3) A description of the plan for anti-fraud education and
  767  training of its underwriters or other personnel.
  768         (4) A written description or chart outlining the
  769  organizational arrangement of the anti-fraud personnel who are
  770  responsible for the investigation and reporting of possible
  771  fraudulent insurance acts and for the investigation of
  772  unresolved material inconsistencies between medical records and
  773  insurance applications.
  774         (5) For viatical settlement providers, a description of the
  775  procedures used to perform initial and continuing review of the
  776  accuracy of life expectancies used in connection with a viatical
  777  settlement contract or viatical settlement investment.
  778         Section 22. Paragraph (b) of subsection (2) of section
  779  627.062, Florida Statutes, is amended to read:
  780         627.062 Rate standards.—
  781         (2) As to all such classes of insurance:
  782         (b) Upon receiving a rate filing, the office shall review
  783  the filing to determine if a rate is excessive, inadequate, or
  784  unfairly discriminatory. In making that determination, the
  785  office shall, in accordance with generally accepted and
  786  reasonable actuarial techniques, consider the following factors:
  787         1. Past and prospective loss experience within and without
  788  this state.
  789         2. Past and prospective expenses.
  790         3. The degree of competition among insurers for the risk
  791  insured.
  792         4. Investment income reasonably expected by the insurer,
  793  consistent with the insurer’s investment practices, from
  794  investable premiums anticipated in the filing, plus any other
  795  expected income from currently invested assets representing the
  796  amount expected on unearned premium reserves and loss reserves.
  797  The commission may adopt rules using reasonable techniques of
  798  actuarial science and economics to specify the manner in which
  799  insurers calculate investment income attributable to classes of
  800  insurance written in this state and the manner in which
  801  investment income is used to calculate insurance rates. Such
  802  manner must contemplate allowances for an underwriting profit
  803  factor and full consideration of investment income which produce
  804  a reasonable rate of return; however, investment income from
  805  invested surplus may not be considered.
  806         5. The reasonableness of the judgment reflected in the
  807  filing.
  808         6. Dividends, savings, or unabsorbed premium deposits
  809  allowed or returned to Florida policyholders, members, or
  810  subscribers.
  811         7. The adequacy of loss reserves.
  812         8. The cost of reinsurance. The office may not disapprove a
  813  rate as excessive solely due to the insurer having obtained
  814  catastrophic reinsurance to cover the insurer’s estimated 250
  815  year probable maximum loss or any lower level of loss.
  816         9. Trend factors, including trends in actual losses per
  817  insured unit for the insurer making the filing.
  818         10. Conflagration and catastrophe hazards, if applicable.
  819         11. Projected hurricane losses, if applicable, which must
  820  be estimated using a model or method, or a straight average of
  821  model results or output ranges, independently found to be
  822  acceptable or reliable by the Florida Commission on Hurricane
  823  Loss Projection Methodology, and as further provided in s.
  824  627.0628.
  825         12. A reasonable margin for underwriting profit and
  826  contingencies.
  827         13. The cost of medical services, if applicable.
  828         14. Other relevant factors that affect the frequency or
  829  severity of claims or expenses.
  830         Section 23. Paragraph (d) of subsection (3) of section
  831  627.0628, Florida Statutes, is amended to read:
  832         627.0628 Florida Commission on Hurricane Loss Projection
  833  Methodology; public records exemption; public meetings
  834  exemption.—
  836         (d) With respect to a rate filing under s. 627.062, an
  837  insurer shall employ and may not modify or adjust actuarial
  838  methods, principles, standards, models, or output ranges found
  839  by the commission to be accurate or reliable in determining
  840  hurricane loss factors for use in a rate filing under s.
  841  627.062. An insurer shall employ and may not modify or adjust
  842  models found by the commission to be accurate or reliable in
  843  determining probable maximum loss levels pursuant to paragraph
  844  (b) with respect to a rate filing under s. 627.062 made more
  845  than 180 60 days after the commission has made such findings.
  846  This paragraph does not prohibit an insurer from using a
  847  straight average of model results or output ranges or using
  848  straight averages for the purposes of a rate filing under s.
  849  627.062.
  850         Section 24. Subsections (2) through (4) of section 627.072,
  851  Florida Statutes, are renumbered as subsections (3) through (5),
  852  respectively, and a new subsection (2) is added to that section,
  853  to read:
  854         627.072 Making and use of rates.—
  855         (2) A retrospective rating plan may contain a provision
  856  that allows negotiation between the employer and the insurer to
  857  determine the retrospective rating factors used to calculate the
  858  premium for employers that have exposure in more than one state
  859  and an estimated annual countrywide standard premium of $1
  860  million or more for workers’ compensation.
  861         Section 25. Subsection (2) of section 627.281, Florida
  862  Statutes, is amended to read:
  863         627.281 Appeal from rating organization; workers’
  864  compensation and employer’s liability insurance filings.—
  865         (2) If such appeal is based upon the failure of the rating
  866  organization to make a filing on behalf of such member or
  867  subscriber which is based on a system of expense provisions
  868  which differs, in accordance with the right granted in s.
  869  627.072(3) 627.072(2), from the system of expense provisions
  870  included in a filing made by the rating organization, the office
  871  shall, if it grants the appeal, order the rating organization to
  872  make the requested filing for use by the appellant. In deciding
  873  such appeal, the office shall apply the applicable standards set
  874  forth in ss. 627.062 and 627.072.
  875         Section 26. Section 627.3519, Florida Statutes, is
  876  repealed.
  877         Section 27. Paragraph (b) of subsection (2) of section
  878  627.4133, Florida Statutes, is amended to read:
  879         627.4133 Notice of cancellation, nonrenewal, or renewal
  880  premium.—
  881         (2) With respect to any personal lines or commercial
  882  residential property insurance policy, including, but not
  883  limited to, any homeowner’s, mobile home owner’s, farmowner’s,
  884  condominium association, condominium unit owner’s, apartment
  885  building, or other policy covering a residential structure or
  886  its contents:
  887         (b) The insurer shall give the first-named insured written
  888  notice of nonrenewal, cancellation, or termination at least 120
  889  100 days before the effective date of the nonrenewal,
  890  cancellation, or termination. However, the insurer shall give at
  891  least 100 days’ written notice, or written notice by June 1,
  892  whichever is earlier, for any nonrenewal, cancellation, or
  893  termination that would be effective between June 1 and November
  894  30. The notice must include the reason or reasons for the
  895  nonrenewal, cancellation, or termination, except that:
  896         1. The insurer shall give the first-named insured written
  897  notice of nonrenewal, cancellation, or termination at least 120
  898  days prior to the effective date of the nonrenewal,
  899  cancellation, or termination for a first-named insured whose
  900  residential structure has been insured by that insurer or an
  901  affiliated insurer for at least a 5-year period immediately
  902  prior to the date of the written notice.
  903         1.2. If cancellation is for nonpayment of premium, at least
  904  10 days’ written notice of cancellation accompanied by the
  905  reason therefor must be given. As used in this subparagraph, the
  906  term “nonpayment of premium” means failure of the named insured
  907  to discharge when due her or his obligations for in connection
  908  with the payment of premiums on a policy or any installment of
  909  such premium, whether the premium is payable directly to the
  910  insurer or its agent or indirectly under any premium finance
  911  plan or extension of credit, or failure to maintain membership
  912  in an organization if such membership is a condition precedent
  913  to insurance coverage. The term also means the failure of a
  914  financial institution to honor an insurance applicant’s check
  915  after delivery to a licensed agent for payment of a premium,
  916  even if the agent has previously delivered or transferred the
  917  premium to the insurer. If a dishonored check represents the
  918  initial premium payment, the contract and all contractual
  919  obligations are void ab initio unless the nonpayment is cured
  920  within the earlier of 5 days after actual notice by certified
  921  mail is received by the applicant or 15 days after notice is
  922  sent to the applicant by certified mail or registered mail., and
  923  If the contract is void, any premium received by the insurer
  924  from a third party must be refunded to that party in full.
  925         2.3. If such cancellation or termination occurs during the
  926  first 90 days the insurance is in force and the insurance is
  927  canceled or terminated for reasons other than nonpayment of
  928  premium, at least 20 days’ written notice of cancellation or
  929  termination accompanied by the reason therefor must be given
  930  unless there has been a material misstatement or
  931  misrepresentation or failure to comply with the underwriting
  932  requirements established by the insurer.
  933         3. After the policy has been in effect for 90 days, the
  934  policy may not be canceled by the insurer unless there has been
  935  a material misstatement, a nonpayment of premium, a failure to
  936  comply with underwriting requirements established by the insurer
  937  within 90 days after the date of effectuation of coverage, or a
  938  substantial change in the risk covered by the policy or if the
  939  cancellation is for all insureds under such policies for a given
  940  class of insureds. This subparagraph does not apply to
  941  individually rated risks having a policy term of less than 90
  942  days.
  943         4. The requirement for providing written notice by June 1
  944  of any nonrenewal that would be effective between June 1 and
  945  November 30 does not apply to the following situations, but the
  946  insurer remains subject to the requirement to provide such
  947  notice at least 100 days before the effective date of
  948  nonrenewal:
  949         a. A policy that is nonrenewed due to a revision in the
  950  coverage for sinkhole losses and catastrophic ground cover
  951  collapse pursuant to s. 627.706.
  952         4.b. A policy that is nonrenewed by Citizens Property
  953  Insurance Corporation, pursuant to s. 627.351(6), for a policy
  954  that has been assumed by an authorized insurer offering
  955  replacement coverage to the policyholder is exempt from the
  956  notice requirements of paragraph (a) and this paragraph. In such
  957  cases, the corporation must give the named insured written
  958  notice of nonrenewal at least 45 days before the effective date
  959  of the nonrenewal.
  961  After the policy has been in effect for 90 days, the policy may
  962  not be canceled by the insurer unless there has been a material
  963  misstatement, a nonpayment of premium, a failure to comply with
  964  underwriting requirements established by the insurer within 90
  965  days after the date of effectuation of coverage, or a
  966  substantial change in the risk covered by the policy or if the
  967  cancellation is for all insureds under such policies for a given
  968  class of insureds. This paragraph does not apply to individually
  969  rated risks having a policy term of less than 90 days.
  970         5. Notwithstanding any other provision of law, an insurer
  971  may cancel or nonrenew a property insurance policy after at
  972  least 45 days’ notice if the office finds that the early
  973  cancellation of some or all of the insurer’s policies is
  974  necessary to protect the best interests of the public or
  975  policyholders and the office approves the insurer’s plan for
  976  early cancellation or nonrenewal of some or all of its policies.
  977  The office may base such finding upon the financial condition of
  978  the insurer, lack of adequate reinsurance coverage for hurricane
  979  risk, or other relevant factors. The office may condition its
  980  finding on the consent of the insurer to be placed under
  981  administrative supervision pursuant to s. 624.81 or to the
  982  appointment of a receiver under chapter 631.
  983         6. A policy covering both a home and motor vehicle may be
  984  nonrenewed for any reason applicable to either the property or
  985  motor vehicle insurance after providing 90 days’ notice.
  986         Section 28. Subsection (1) of section 627.4137, Florida
  987  Statutes, is amended to read:
  988         627.4137 Disclosure of certain information required.—
  989         (1) Each insurer that provides which does or may provide
  990  liability insurance coverage to pay all or a portion of any
  991  claim that which might be made shall provide, within 30 days
  992  after of the written request of the claimant, a statement, under
  993  oath, of a corporate officer or the insurer’s claims manager, or
  994  superintendent, or licensed company adjuster setting forth the
  995  following information with regard to each known policy of
  996  insurance, including excess or umbrella insurance:
  997         (a) The name of the insurer.
  998         (b) The name of each insured.
  999         (c) The limits of the liability coverage.
 1000         (d) A statement of any policy or coverage defense that the
 1001  which such insurer reasonably believes is available to the such
 1002  insurer at the time of filing such statement.
 1003         (e) A copy of the policy.
 1005  In addition, the insured, or her or his insurance agent, upon
 1006  written request of the claimant or the claimant’s attorney,
 1007  shall disclose the name and coverage of each known insurer to
 1008  the claimant and shall forward such request for information as
 1009  required by this subsection to all affected insurers. The
 1010  insurer shall then supply the information required in this
 1011  subsection to the claimant within 30 days after of receipt of
 1012  such request.
 1013         Section 29. Subsection (1) of section 627.421, Florida
 1014  Statutes, is amended to read:
 1015         627.421 Delivery of policy.—
 1016         (1) Subject to the insurer’s requirement as to payment of
 1017  premium, every policy shall be mailed or delivered to the
 1018  insured or to the person entitled thereto not later than 60 days
 1019  after the effectuation of coverage. Notwithstanding any other
 1020  provision of law, an insurer may allow a policyholder to
 1021  affirmatively elect delivery of the policy documents, including,
 1022  but not limited to, policies, endorsements, notices, or
 1023  documents, by electronic means in lieu of delivery by mail.
 1024         Section 30. Subsection (2) of section 627.43141, Florida
 1025  Statutes, is amended to read:
 1026         627.43141 Notice of change in policy terms.—
 1027         (2) A renewal policy may contain a change in policy terms.
 1028  If a renewal policy contains does contain such change, the
 1029  insurer must give the named insured written notice of the
 1030  change, which may either must be enclosed along with the written
 1031  notice of renewal premium required by ss. 627.4133 and 627.728
 1032  or be sent in a separate notice that complies with the
 1033  nonrenewal mailing time requirement for that particular line of
 1034  business. The insurer must also provide a sample copy of the
 1035  notice to the insured’s insurance agent before or at the same
 1036  time that notice is given to the insured. Such notice shall be
 1037  entitled “Notice of Change in Policy Terms.”
 1038         Section 31. Subsection (7) of section 627.701, Florida
 1039  Statutes, is amended to read:
 1040         627.701 Liability of insureds; coinsurance; deductibles.—
 1041         (7) Before Prior to issuing a personal lines residential
 1042  property insurance policy on or after January 1, 2014 April 1,
 1043  1997, or before prior to the first renewal of a residential
 1044  property insurance policy on or after January 1, 2014 April 1,
 1045  1997, the insurer must offer a deductible equal to $500, or
 1046  equal to 1 percent of the policy dwelling limits if such amount
 1047  is not less than $500, applicable to losses from perils other
 1048  than hurricane. The insurer must provide the policyholder with
 1049  notice of the availability of the deductible specified in this
 1050  subsection in a form approved by the office at least once every
 1051  3 years. The failure to provide such notice constitutes a
 1052  violation of this code but does not affect the coverage provided
 1053  under the policy. An insurer may require a higher deductible
 1054  only as part of a deductible program lawfully in effect on June
 1055  1, 1996, or as part of a similar deductible program.
 1056         Section 32. Paragraph (b) of subsection (4) of section
 1057  627.7015, Florida Statutes, is amended to read:
 1058         627.7015 Alternative procedure for resolution of disputed
 1059  property insurance claims.—
 1060         (4) The department shall adopt by rule a property insurance
 1061  mediation program to be administered by the department or its
 1062  designee. The department may also adopt special rules which are
 1063  applicable in cases of an emergency within the state. The rules
 1064  shall be modeled after practices and procedures set forth in
 1065  mediation rules of procedure adopted by the Supreme Court. The
 1066  rules shall provide for:
 1067         (b) Qualifications, denial of application, suspension,
 1068  revocation, and other penalties for of mediators as provided in
 1069  s. 627.745 and in the Florida Rules of Certified and Court
 1070  Appointed Mediators, and for such other individuals as are
 1071  qualified by education, training, or experience as the
 1072  department determines to be appropriate.
 1073         Section 33. Section 627.70151, Florida Statutes, is created
 1074  to read:
 1075         627.70151 Appraisal; conflicts of interest.—An insurer that
 1076  offers residential coverage, as defined in s. 627.4025, or a
 1077  policyholder that uses an appraisal clause in the property
 1078  insurance contract to establish a process of estimating or
 1079  evaluating the amount of the loss through the use of an
 1080  impartial umpire may challenge the umpire’s impartiality and
 1081  disqualify the proposed umpire only if:
 1082         (1) A familial relationship within the third degree exists
 1083  between the umpire and any party or a representative of any
 1084  party;
 1085         (2) The umpire has previously represented any party or a
 1086  representative of any party in a professional capacity in the
 1087  same or a substantially related matter;
 1088         (3) The umpire has represented another person in a
 1089  professional capacity on the same or a substantially related
 1090  matter, which includes the claim, same property, or an adjacent
 1091  property and that other person’s interests are materially
 1092  adverse to the interests of any party; or
 1093         (4) The umpire has worked as an employer or employee of any
 1094  party within the preceding 5 years.
 1095         Section 34. Paragraph (c) of subsection (2) of section
 1096  627.706, Florida Statutes, is amended to read:
 1097         627.706 Sinkhole insurance; catastrophic ground cover
 1098  collapse; definitions.—
 1099         (2) As used in ss. 627.706-627.7074, and as used in
 1100  connection with any policy providing coverage for a catastrophic
 1101  ground cover collapse or for sinkhole losses, the term:
 1102         (c) “Neutral evaluator” means a professional engineer or a
 1103  professional geologist who has completed a course of study in
 1104  alternative dispute resolution designed or approved by the
 1105  department for use in the neutral evaluation process, and who is
 1106  determined by the department to be fair and impartial, and who
 1107  is not otherwise ineligible for certification as provided in s.
 1108  627.7074.
 1109         Section 35. Subsection (1) of section 627.7074, Florida
 1110  Statutes, is amended to read:
 1111         627.7074 Alternative procedure for resolution of disputed
 1112  sinkhole insurance claims.—
 1113         (1) The department shall:
 1114         (a) Certify and maintain a list of persons who are neutral
 1115  evaluators.
 1116         (b) Adopt rules for certifying, denying certification,
 1117  suspending certification, and revoking certification as a
 1118  neutral evaluator, in keeping with qualifications specified in
 1119  this section and ss. 627.706 and 627.745(4).
 1120         (c)(b) Prepare a consumer information pamphlet for
 1121  distribution by insurers to policyholders which clearly
 1122  describes the neutral evaluation process and includes
 1123  information necessary for the policyholder to request a neutral
 1124  evaluation.
 1125         Section 36. Paragraph (a) of subsection (5) of section
 1126  627.736, Florida Statutes, is amended to read:
 1127         627.736 Required personal injury protection benefits;
 1128  exclusions; priority; claims.—
 1130         (a) A physician, hospital, clinic, or other person or
 1131  institution lawfully rendering treatment to an injured person
 1132  for a bodily injury covered by personal injury protection
 1133  insurance may charge the insurer and injured party only a
 1134  reasonable amount pursuant to this section for the services and
 1135  supplies rendered, and the insurer providing such coverage may
 1136  pay for such charges directly to such person or institution
 1137  lawfully rendering such treatment if the insured receiving such
 1138  treatment or his or her guardian has countersigned the properly
 1139  completed invoice, bill, or claim form approved by the office
 1140  upon which such charges are to be paid for as having actually
 1141  been rendered, to the best knowledge of the insured or his or
 1142  her guardian. However, such a charge may not exceed the amount
 1143  the person or institution customarily charges for like services
 1144  or supplies. In determining whether a charge for a particular
 1145  service, treatment, or otherwise is reasonable, consideration
 1146  may be given to evidence of usual and customary charges and
 1147  payments accepted by the provider involved in the dispute,
 1148  reimbursement levels in the community and various federal and
 1149  state medical fee schedules applicable to motor vehicle and
 1150  other insurance coverages, and other information relevant to the
 1151  reasonableness of the reimbursement for the service, treatment,
 1152  or supply.
 1153         1. The insurer may limit reimbursement to 80 percent of the
 1154  following schedule of maximum charges:
 1155         a. For emergency transport and treatment by providers
 1156  licensed under chapter 401, 200 percent of Medicare.
 1157         b. For emergency services and care provided by a hospital
 1158  licensed under chapter 395, 75 percent of the hospital’s usual
 1159  and customary charges.
 1160         c. For emergency services and care as defined by s. 395.002
 1161  provided in a facility licensed under chapter 395 rendered by a
 1162  physician or dentist, and related hospital inpatient services
 1163  rendered by a physician or dentist, the usual and customary
 1164  charges in the community.
 1165         d. For hospital inpatient services, other than emergency
 1166  services and care, 200 percent of the Medicare Part A
 1167  prospective payment applicable to the specific hospital
 1168  providing the inpatient services.
 1169         e. For hospital outpatient services, other than emergency
 1170  services and care, 200 percent of the Medicare Part A Ambulatory
 1171  Payment Classification for the specific hospital providing the
 1172  outpatient services.
 1173         f. For all other medical services, supplies, and care, 200
 1174  percent of the allowable amount under:
 1175         (I) The participating physicians fee schedule of Medicare
 1176  Part B, except as provided in sub-sub-subparagraphs (II) and
 1177  (III).
 1178         (II) Medicare Part B, in the case of services, supplies,
 1179  and care provided by ambulatory surgical centers and clinical
 1180  laboratories.
 1181         (III) The Durable Medical Equipment Prosthetics/Orthotics
 1182  and Supplies fee schedule of Medicare Part B, in the case of
 1183  durable medical equipment.
 1185  However, if such services, supplies, or care is not reimbursable
 1186  under Medicare Part B, as provided in this sub-subparagraph, the
 1187  insurer may limit reimbursement to 80 percent of the maximum
 1188  reimbursable allowance under workers’ compensation, as
 1189  determined under s. 440.13 and rules adopted thereunder which
 1190  are in effect at the time such services, supplies, or care is
 1191  provided. Services, supplies, or care that is not reimbursable
 1192  under Medicare or workers’ compensation is not required to be
 1193  reimbursed by the insurer.
 1194         2. For purposes of subparagraph 1., the applicable fee
 1195  schedule or payment limitation under Medicare is the fee
 1196  schedule or payment limitation in effect on March 1 of the year
 1197  in which the services, supplies, or care is rendered and for the
 1198  area in which such services, supplies, or care is rendered, and
 1199  the applicable fee schedule or payment limitation applies from
 1200  March 1 until the last day of the following February throughout
 1201  the remainder of that year, notwithstanding any subsequent
 1202  change made to the fee schedule or payment limitation, except
 1203  that it may not be less than the allowable amount under the
 1204  applicable schedule of Medicare Part B for 2007 for medical
 1205  services, supplies, and care subject to Medicare Part B.
 1206         3. Subparagraph 1. does not allow the insurer to apply any
 1207  limitation on the number of treatments or other utilization
 1208  limits that apply under Medicare or workers’ compensation. An
 1209  insurer that applies the allowable payment limitations of
 1210  subparagraph 1. must reimburse a provider who lawfully provided
 1211  care or treatment under the scope of his or her license,
 1212  regardless of whether such provider is entitled to reimbursement
 1213  under Medicare due to restrictions or limitations on the types
 1214  or discipline of health care providers who may be reimbursed for
 1215  particular procedures or procedure codes. However, subparagraph
 1216  1. does not prohibit an insurer from using the Medicare coding
 1217  policies and payment methodologies of the federal Centers for
 1218  Medicare and Medicaid Services, including applicable modifiers,
 1219  to determine the appropriate amount of reimbursement for medical
 1220  services, supplies, or care if the coding policy or payment
 1221  methodology does not constitute a utilization limit.
 1222         4. If an insurer limits payment as authorized by
 1223  subparagraph 1., the person providing such services, supplies,
 1224  or care may not bill or attempt to collect from the insured any
 1225  amount in excess of such limits, except for amounts that are not
 1226  covered by the insured’s personal injury protection coverage due
 1227  to the coinsurance amount or maximum policy limits.
 1228         5. Effective July 1, 2012, an insurer may limit payment as
 1229  authorized by this paragraph only if the insurance policy
 1230  includes a notice at the time of issuance or renewal that the
 1231  insurer may limit payment pursuant to the schedule of charges
 1232  specified in this paragraph. A policy form approved by the
 1233  office satisfies this requirement. If a provider submits a
 1234  charge for an amount less than the amount allowed under
 1235  subparagraph 1., the insurer may pay the amount of the charge
 1236  submitted.
 1237         Section 37. Subsection (3) of section 627.745, Florida
 1238  Statutes, is amended, present subsections (4) and (5) of that
 1239  section are renumbered as subsections (5) and (6), respectively,
 1240  and a new subsection (4) is added to that section, to read:
 1241         627.745 Mediation of claims.—
 1242         (3)(a) The department shall approve mediators to conduct
 1243  mediations pursuant to this section. All mediators must file an
 1244  application under oath for approval as a mediator.
 1245         (b) To qualify for approval as a mediator, an individual a
 1246  person must meet one of the following qualifications:
 1247         1. Possess an active certification as a Florida Circuit
 1248  Court Mediator. A Florida Circuit Court Mediator in a lapsed,
 1249  suspended, or decertified status is not eligible to participate
 1250  in the mediation program a masters or doctorate degree in
 1251  psychology, counseling, business, accounting, or economics, be a
 1252  member of The Florida Bar, be licensed as a certified public
 1253  accountant, or demonstrate that the applicant for approval has
 1254  been actively engaged as a qualified mediator for at least 4
 1255  years prior to July 1, 1990.
 1256         2. Be an approved department mediator as of July 1, 2013,
 1257  and have conducted at least one mediation on behalf of the
 1258  department within 4 years immediately preceding that the date
 1259  the application for approval is filed with the department, have
 1260  completed a minimum of a 40-hour training program approved by
 1261  the department and successfully passed a final examination
 1262  included in the training program and approved by the department.
 1263  The training program shall include and address all of the
 1264  following:
 1265         a. Mediation theory.
 1266         b. Mediation process and techniques.
 1267         c. Standards of conduct for mediators.
 1268         d. Conflict management and intervention skills.
 1269         e. Insurance nomenclature.
 1270         (4) The department shall deny an application, or suspend or
 1271  revoke its approval of a mediator or its certification of a
 1272  neutral evaluator to serve in such capacity, if the department
 1273  finds that any of the following grounds exist:
 1274         (a) Lack of one or more of the qualifications specified in
 1275  this section for approval or certification.
 1276         (b) Material misstatement, misrepresentation, or fraud in
 1277  obtaining or attempting to obtain the approval or certification.
 1278         (c) Demonstrated lack of fitness or trustworthiness to act
 1279  as a mediator or neutral evaluator.
 1280         (d) Fraudulent or dishonest practices in the conduct of
 1281  mediation or neutral evaluation or in the conduct of business in
 1282  the financial services industry.
 1283         (e) Violation of any provision of this code, a lawful order
 1284  or rule of the department, the Florida Rules for Certified and
 1285  Court-Appointed Mediators, or aiding, instructing, or
 1286  encouraging another party in committing such a violation.
 1288  The department may adopt rules to administer this subsection.
 1289         Section 38. Paragraph (b) of subsection (1) of section
 1290  627.952, Florida Statutes, is amended to read:
 1291         627.952 Risk retention and purchasing group agents.—
 1292         (1) Any person offering, soliciting, selling, purchasing,
 1293  administering, or otherwise servicing insurance contracts,
 1294  certificates, or agreements for any purchasing group or risk
 1295  retention group to any resident of this state, either directly
 1296  or indirectly, by the use of mail, advertising, or other means
 1297  of communication, shall obtain a license and appointment to act
 1298  as a resident general lines agent, if a resident of this state,
 1299  or a nonresident general lines agent if not a resident. Any such
 1300  person shall be subject to all requirements of the Florida
 1301  Insurance Code.
 1302         (b) Any person required to be licensed and appointed under
 1303  this subsection, in order to place business through Florida
 1304  eligible surplus lines carriers, must, if a resident of this
 1305  state, be licensed and appointed as a surplus lines agent. If
 1306  not a resident of this state, such person must be licensed and
 1307  appointed as a nonresident surplus lines agent in this her or
 1308  his state of residence and file and maintain a fidelity bond in
 1309  favor of the people of the State of Florida executed by a surety
 1310  company admitted in this state and payable to the State of
 1311  Florida; however, such nonresident is limited to the provision
 1312  of insurance for purchasing groups. The bond must be continuous
 1313  in form and in the amount of not less than $50,000, aggregate
 1314  liability. The bond must remain in force and effect until the
 1315  surety is released from liability by the department or until the
 1316  bond is canceled by the surety. The surety may cancel the bond
 1317  and be released from further liability upon 30 days’ prior
 1318  written notice to the department. The cancellation does not
 1319  affect any liability incurred or accrued before the termination
 1320  of the 30-day period. Upon receipt of a notice of cancellation,
 1321  the department shall immediately notify the agent.
 1322         Section 39. Subsection (6) of section 627.971, Florida
 1323  Statutes, is amended to read:
 1324         627.971 Definitions.—As used in this part:
 1325         (6) “Financial guaranty insurance corporation” means a
 1326  stock or mutual insurer licensed to transact financial guaranty
 1327  insurance business in this state.
 1328         Section 40. Subsection (1) of section 627.972, Florida
 1329  Statutes, is amended to read:
 1330         627.972 Organization; financial requirements.—
 1331         (1) A financial guaranty insurance corporation must be
 1332  organized and licensed in the manner prescribed in this code for
 1333  stock or mutual property and casualty insurers except that:
 1334         (a) A corporation organized to transact financial guaranty
 1335  insurance may, subject to the provisions of this code, be
 1336  licensed to transact:
 1337         1. Residual value insurance, as defined by s. 624.6081;
 1338         2. Surety insurance, as defined by s. 624.606;
 1339         3. Credit insurance, as defined by s. 624.605(1)(i); and
 1340         4. Mortgage guaranty insurance as defined in s. 635.011,
 1341  provided that the provisions of chapter 635 are met.
 1342         (b)1. Before Prior to the issuance of a license, a
 1343  corporation must submit to the office for approval, a plan of
 1344  operation detailing:
 1345         a. The types and projected diversification of guaranties to
 1346  be issued;
 1347         b. The underwriting procedures to be followed;
 1348         c. The managerial oversight methods;
 1349         d. The investment policies; and
 1350         e. Any other matters prescribed by the office;
 1351         2. An insurer which is writing only the types of insurance
 1352  allowed under this part on July 1, 1988, and otherwise meets the
 1353  requirements of this part, is exempt from the requirements of
 1354  this paragraph.
 1355         (c) An insurer transacting financial guaranty insurance is
 1356  subject to all provisions of this code that are applicable to
 1357  property and casualty insurers to the extent that those
 1358  provisions are not inconsistent with this part.
 1359         (d) The investments of an insurer transacting financial
 1360  guaranty insurance in any entity insured by the corporation may
 1361  not exceed 2 percent of its admitted assets as of the end of the
 1362  prior calendar year.
 1363         (e) An insurer transacting financial guaranty insurance may
 1364  only assume those lines of insurance for which it is licensed to
 1365  write direct business.
 1366         Section 41. Subsection (13) of section 628.901, Florida
 1367  Statutes, is amended to read:
 1368         628.901 Definitions.—As used in this part, the term:
 1369         (13) “Qualifying reinsurer parent company” means a
 1370  reinsurer that which currently holds a certificate of authority
 1371  or a, letter of eligibility or is a trusteed reinsurer or an
 1372  accredited or a satisfactory non-approved reinsurer in this
 1373  state possessing a consolidated GAAP net worth of at least $500
 1374  million and a consolidated debt to total capital ratio of not
 1375  greater than 0.50.
 1376         Section 42. Paragraph (a) of subsection (2) and paragraph
 1377  (a) of subsection (3) of section 628.909, Florida Statutes, are
 1378  amended to read:
 1379         628.909 Applicability of other laws.—
 1380         (2) The following provisions of the Florida Insurance Code
 1381  apply to captive insurers who are not industrial insured captive
 1382  insurers to the extent that such provisions are not inconsistent
 1383  with this part:
 1384         (a) Chapter 624, except for ss. 624.407, 624.408, 624.4085,
 1385  624.40851, 624.4095, 624.411, 624.425, and 624.426.
 1386         (3) The following provisions of the Florida Insurance Code
 1387  apply to industrial insured captive insurers to the extent that
 1388  such provisions are not inconsistent with this part:
 1389         (a) Chapter 624, except for ss. 624.407, 624.408, 624.4085,
 1390  624.40851, 624.4095, 624.411, 624.425, 624.426, and 624.609(1).
 1391         Section 43. Subsection (8) of section 634.406, Florida
 1392  Statutes, is renumbered as subsection (7), and present
 1393  subsections (6) and (7) of that section are amended, to read:
 1394         634.406 Financial requirements.—
 1395         (6) An association that which holds a license under this
 1396  part and which does not hold any other license under this
 1397  chapter may allow its premiums for service warranties written
 1398  under this part to exceed the ratio to net assets limitations of
 1399  this section if the association meets all of the following:
 1400         (a) Maintains net assets of at least $750,000.
 1401         (b) Utilizes a contractual liability insurance policy
 1402  approved by the office which:
 1403         1. Reimburses the service warranty association for 100
 1404  percent of its claims liability and is issued by an insurer that
 1405  maintains a policyholder surplus of at least $100 million; or
 1406         2. Complies with the requirements of subsection (3) and is
 1407  issued by an insurer that maintains a policyholder surplus of at
 1408  least $200 million.
 1409         (c) The insurer issuing the contractual liability insurance
 1410  policy:
 1411         1. Maintains a policyholder surplus of at least $100
 1412  million.
 1413         1.2. Is rated “A” or higher by A.M. Best Company or an
 1414  equivalent rating by another national rating service acceptable
 1415  to the office.
 1416         3. Is in no way affiliated with the warranty association.
 1417         2.4. In conjunction with the warranty association’s filing
 1418  of the quarterly and annual reports, provides, on a form
 1419  prescribed by the commission, a statement certifying the gross
 1420  written premiums in force reported by the warranty association
 1421  and a statement that all of the warranty association’s gross
 1422  written premium in force is covered under the contractual
 1423  liability policy, whether or not it has been reported.
 1424         (7) A contractual liability policy must insure 100 percent
 1425  of an association’s claims exposure under all of the
 1426  association’s service warranty contracts, wherever written,
 1427  unless all of the following are satisfied:
 1428         (a) The contractual liability policy contains a clause that
 1429  specifically names the service warranty contract holders as sole
 1430  beneficiaries of the contractual liability policy and claims are
 1431  paid directly to the person making a claim under the contract;
 1432         (b) The contractual liability policy meets all other
 1433  requirements of this part, including subsection (3) of this
 1434  section, which are not inconsistent with this subsection;
 1435         (c) The association has been in existence for at least 5
 1436  years or the association is a wholly owned subsidiary of a
 1437  corporation that has been in existence and has been licensed as
 1438  a service warranty association in the state for at least 5
 1439  years, and:
 1440         1. Is listed and traded on a recognized stock exchange; is
 1441  listed in NASDAQ (National Association of Security Dealers
 1442  Automated Quotation system) and publicly traded in the over-the
 1443  counter securities market; is required to file either of Form
 1444  10-K, Form 100, or Form 20-G with the United States Securities
 1445  and Exchange Commission; or has American Depository Receipts
 1446  listed on a recognized stock exchange and publicly traded or is
 1447  the wholly owned subsidiary of a corporation that is listed and
 1448  traded on a recognized stock exchange; is listed in NASDAQ
 1449  (National Association of Security Dealers Automated Quotation
 1450  system) and publicly traded in the over-the-counter securities
 1451  market; is required to file Form 10-K, Form 100, or Form 20-G
 1452  with the United States Securities and Exchange Commission; or
 1453  has American Depository Receipts listed on a recognized stock
 1454  exchange and is publicly traded;
 1455         2. Maintains outstanding debt obligations, if any, rated in
 1456  the top four rating categories by a recognized rating service;
 1457         3. Has and maintains at all times a minimum net worth of
 1458  not less than $10 million as evidenced by audited financial
 1459  statements prepared by an independent certified public
 1460  accountant in accordance with generally accepted accounting
 1461  principles and submitted to the office annually; and
 1462         4. Is authorized to do business in this state; and
 1463         (d) The insurer issuing the contractual liability policy:
 1464         1. Maintains and has maintained for the preceding 5 years,
 1465  policyholder surplus of at least $100 million and is rated “A”
 1466  or higher by A.M. Best Company or has an equivalent rating by
 1467  another rating company acceptable to the office;
 1468         2. Holds a certificate of authority to do business in this
 1469  state and is approved to write this type of coverage; and
 1470         3. Acknowledges to the office quarterly that it insures all
 1471  of the association’s claims exposure under contracts delivered
 1472  in this state.
 1474  If all the preceding conditions are satisfied, then the scope of
 1475  coverage under a contractual liability policy shall not be
 1476  required to exceed an association’s claims exposure under
 1477  service warranty contracts delivered in this state.
 1478         Section 44. This act shall take effect upon becoming a law.
 1480  ================= T I T L E  A M E N D M E N T ================
 1481         And the title is amended as follows:
 1482         Delete everything before the enacting clause
 1483  and insert:
 1484                        A bill to be entitled                      
 1485         An act relating to insurance; amending s. 215.555,
 1486         F.S.; deleting the future repeal of an exemption of
 1487         medical malpractice insurance premiums from emergency
 1488         assessments imposed to fund certain obligations,
 1489         costs, and expenses of the Florida Hurricane
 1490         Catastrophe Fund and the Florida Hurricane Catastrophe
 1491         Fund Finance Corporation; amending s. 316.646, F.S.;
 1492         authorizing a uniform motor vehicle proof-of-insurance
 1493         card to be in an electronic format; providing
 1494         construction with respect to the parameters of a
 1495         person’s consent to access information on an
 1496         electronic device presented to provide proof of
 1497         insurance; providing immunity from liability to a law
 1498         enforcement officer for damage to an electronic device
 1499         presented to provide proof of insurance; authorizing
 1500         the Department of Highway Safety and Motor Vehicles to
 1501         adopt rules; amending s. 320.02, F.S.; authorizing
 1502         insurers to furnish uniform proof-of-purchase cards in
 1503         an electronic format for use by insureds to prove the
 1504         purchase of required insurance coverage when
 1505         registering a motor vehicle; amending s. 554.1021,
 1506         F.S.; defining the term “authorized inspection
 1507         agency”; amending s. 554.107, F.S.; requiring the
 1508         chief inspector of the state boiler inspection program
 1509         to issue a certificate of competency as a special
 1510         inspector to certain individuals; specifying how long
 1511         such certificate remains in effect; amending s.
 1512         554.109, F.S.; authorizing specified insurers to
 1513         contract with an authorized inspection agency for
 1514         boiler inspections; requiring such insurers to
 1515         annually report the identity of contracted authorized
 1516         inspection agencies to the Department of Financial
 1517         Services; amending s. 624.413, F.S.; revising a
 1518         specified time period applicable to a certified
 1519         examination that must be filed by a foreign or alien
 1520         insurer applying for a certificate of authority;
 1521         amending s. 626.0428, F.S.; requiring each insurance
 1522         agency to be under the control of an agent licensed to
 1523         transact certain lines of insurance; authorizing an
 1524         agent to be in charge of more than one branch office
 1525         under certain circumstances; providing requirements
 1526         relating to the designation of an agent in charge;
 1527         prohibiting an insurance agency from conducting
 1528         insurance business at a location without a designated
 1529         agent in charge; providing a definition for the term
 1530         “agent in charge”; providing that the designated agent
 1531         in charge is liable for certain acts of misconduct;
 1532         providing grounds for the Department of Financial
 1533         Services to order operations to cease at certain
 1534         insurance agency locations until an agent in charge is
 1535         properly designated; amending s. 626.112, F.S.;
 1536         providing licensure exemptions that allow specified
 1537         individuals or entities to conduct insurance business
 1538         at specified locations under certain circumstances;
 1539         revising licensure requirements and penalties with
 1540         respect to registered insurance agencies; providing
 1541         that the registration of an approved registered
 1542         insurance agency automatically converts to an
 1543         insurance agency license on a specified date; amending
 1544         s. 626.172, F.S.; revising requirements relating to
 1545         applications for insurance agency licenses; conforming
 1546         provisions to changes made by the act; amending s.
 1547         626.321, F.S.; providing that a limited license to
 1548         offer motor vehicle rental insurance issued to a
 1549         business that rents or leases motor vehicles
 1550         encompasses the employees of such business; amending
 1551         s. 626.382, F.S.; providing that an insurance agency
 1552         license continues in force until canceled, suspended,
 1553         revoked, or terminated; amending s. 626.601, F.S.;
 1554         revising terminology relating to investigations
 1555         conducted by the Department of Financial Services and
 1556         the Office of Insurance Regulation with respect to
 1557         individuals and entities involved in the insurance
 1558         industry; repealing s. 626.747, F.S., relating to
 1559         branch agencies, agents in charge, and the payment of
 1560         additional county tax under certain circumstances;
 1561         amending s. 626.8411, F.S.; conforming a cross
 1562         reference; amending s. 626.9914, F.S.; conforming a
 1563         provision to changes made by the act; repealing s.
 1564         626.99175, F.S., relating to the registration of life
 1565         expectancy providers; amending ss. 626.9919, 626.992,
 1566         626.9925, and 626.99278, F.S.; conforming provisions
 1567         to changes made by the act; amending s. 627.062, F.S.;
 1568         requiring the Office of Insurance Regulation to use
 1569         certain models or straight averages of certain models
 1570         to estimate hurricane losses when determining whether
 1571         the rates in a rate filing are excessive, inadequate,
 1572         or unfairly discriminatory; amending s. 627.0628,
 1573         F.S.; increasing the length of time during which an
 1574         insurer must adhere to certain findings made by the
 1575         Commission on Hurricane Loss Projection Methodology
 1576         with respect to certain methods, principles,
 1577         standards, models, or output ranges used in a rate
 1578         finding; providing that the requirement to adhere to
 1579         such findings does not limit an insurer from using a
 1580         straight average of results of certain models or
 1581         output ranges under specified circumstances; amending
 1582         s. 627.072, F.S.; authorizing retrospective rating
 1583         plans relating to workers’ compensation and employer’s
 1584         liability insurance to allow negotiations between
 1585         certain employers and insurers with respect to rating
 1586         factors used to calculate premiums; amending s.
 1587         627.281, F.S.; conforming a cross-reference; repealing
 1588         s. 627.3519, F.S., relating to an annual report from
 1589         the Financial Services Commission to the Legislature
 1590         of aggregate net probable maximum losses, financing
 1591         options, and potential assessments of the Florida
 1592         Hurricane Catastrophe Fund and Citizens Property
 1593         Insurance Corporation; amending s. 627.4133, F.S.;
 1594         increasing the amount of prior notice required with
 1595         respect to the nonrenewal, cancellation, or
 1596         termination of certain insurance policies; deleting
 1597         certain provisions that require extended periods of
 1598         prior notice with respect to the nonrenewal,
 1599         cancellation, or termination of certain insurance
 1600         policies; prohibiting the cancellation of certain
 1601         policies that have been in effect for a specified
 1602         amount of time except under certain circumstances;
 1603         amending s. 627.4137, F.S.; adding licensed company
 1604         adjusters to the list of persons who may respond to a
 1605         claimant’s written request for information relating to
 1606         liability insurance coverage; amending s. 627.421,
 1607         F.S.; authorizing the electronic delivery of certain
 1608         insurance documents; amending s. 627.43141, F.S.;
 1609         authorizing a notice of change in policy terms to be
 1610         sent in a separate mailing to an insured under certain
 1611         circumstances; requiring an insurer to provide such
 1612         notice to insured’s insurance agent; amending s.
 1613         627.701, F.S.; revising requirements to issue or renew
 1614         personal lines residential property insurance after a
 1615         certain date; amending s. 627.7015, F.S.; revising the
 1616         rulemaking authority of the department with respect to
 1617         qualifications and specified types of penalties
 1618         covered under the property insurance mediation
 1619         program; creating s. 627.70151, F.S.; providing
 1620         criteria for an insurer or policyholder to challenge
 1621         the impartiality of a loss appraisal umpire for
 1622         purposes of disqualifying such umpire; amending s.
 1623         627.706, F.S.; revising the definition of the term
 1624         “neutral evaluator”; amending s. 627.7074, F.S.;
 1625         requiring the department to adopt rules relating to
 1626         the certification of neutral evaluators; amending s.
 1627         627.736, F.S.; revising the time period for
 1628         applicability of certain Medicare fee schedules or
 1629         payment limitations; amending s. 627.745, F.S.;
 1630         revising qualifications for approval as a mediator by
 1631         the department; providing grounds for the department
 1632         to deny an application, or suspend or revoke approval
 1633         of a mediator or certification of a neutral evaluator;
 1634         authorizing the department to adopt rules; amending s.
 1635         627.952, F.S.; providing that certain persons who are
 1636         not residents of this state must be licensed and
 1637         appointed as nonresident surplus lines agents in this
 1638         state in order to engage in specified activities with
 1639         respect to servicing insurance contracts,
 1640         certificates, or agreements for purchasing or risk
 1641         retention groups; deleting a fidelity bond requirement
 1642         applicable to certain nonresident agents who are
 1643         licensed as surplus lines agents in another state;
 1644         amending ss. 627.971 and 627.972, F.S.; including
 1645         licensed mutual insurers in financial guaranty
 1646         insurance corporations; amending s. 628.901, F.S.;
 1647         revising the definition of the term “qualifying
 1648         reinsurer parent company”; amending s. 628.909, F.S.;
 1649         providing for applicability of certain provisions of
 1650         the Insurance Code to specified captive insurers;
 1651         amending s. 634.406, F.S.; revising criteria
 1652         authorizing premiums of certain service warranty
 1653         associations to exceed their specified net assets
 1654         limitations; revising requirements relating to
 1655         contractual liability policies that insure warranty
 1656         associations; providing an effective date.