Florida Senate - 2013                        COMMITTEE AMENDMENT
       Bill No. SB 1046
                                Barcode 511142                          
                              LEGISLATIVE ACTION                        
                    Senate             .             House              
                  Comm: RCS            .                                
                  04/02/2013           .                                

       The Committee on Banking and Insurance (Hays) recommended the
    1         Senate Substitute for Amendment (457546) (with title
    2  amendment)
    4         Delete everything after the enacting clause
    5  and insert:
    6         Section 1. Subsection (1) of section 316.646, Florida
    7  Statutes, is amended, and subsection (5) is added to that
    8  section, to read:
    9         316.646 Security required; proof of security and display
   10  thereof; dismissal of cases.—
   11         (1) A Any person required by s. 324.022 to maintain
   12  property damage liability security, required by s. 324.023 to
   13  maintain liability security for bodily injury or death, or
   14  required by s. 627.733 to maintain personal injury protection
   15  security on a motor vehicle shall have in his or her immediate
   16  possession at all times while operating such motor vehicle
   17  proper proof of maintenance of the required security. Such proof
   18  shall be a uniform proof-of-insurance card, in paper or
   19  electronic format, in a form prescribed by the department, a
   20  valid insurance policy, an insurance policy binder, a
   21  certificate of insurance, or such other proof as may be
   22  prescribed by the department. If a person presents an electronic
   23  device to a law enforcement officer for the purpose of
   24  displaying a proof-of-insurance card in an electronic format:
   25         (a) The person presenting the device is not deemed to
   26  consent to access to any information on the electronic device
   27  other than the displayed proof-of-insurance card.
   28         (b) The law enforcement officer is not liable for damage to
   29  the electronic device.
   30         (5) The department may adopt rules to implement this
   31  section.
   32         Section 2. Paragraph (a) of subsection (5) of section
   33  320.02, Florida Statutes, is amended to read:
   34         320.02 Registration required; application for registration;
   35  forms.—
   36         (5)(a) Proof that personal injury protection benefits have
   37  been purchased when required under s. 627.733, that property
   38  damage liability coverage has been purchased as required under
   39  s. 324.022, that bodily injury or death coverage has been
   40  purchased if required under s. 324.023, and that combined bodily
   41  liability insurance and property damage liability insurance have
   42  been purchased when required under s. 627.7415 shall be provided
   43  in the manner prescribed by law by the applicant at the time of
   44  application for registration of any motor vehicle that is
   45  subject to such requirements. The issuing agent shall refuse to
   46  issue registration if such proof of purchase is not provided.
   47  Insurers shall furnish uniform proof-of-purchase cards, in paper
   48  or electronic format, in a form prescribed by the department and
   49  shall include the name of the insured’s insurance company, the
   50  coverage identification number, and the make, year, and vehicle
   51  identification number of the vehicle insured. The card must
   52  shall contain a statement notifying the applicant of the penalty
   53  specified in s. 316.646(4). The card or insurance policy,
   54  insurance policy binder, or certificate of insurance or a
   55  photocopy of any of these; an affidavit containing the name of
   56  the insured’s insurance company, the insured’s policy number,
   57  and the make and year of the vehicle insured; or such other
   58  proof as may be prescribed by the department constitutes shall
   59  constitute sufficient proof of purchase. If an affidavit is
   60  provided as proof, it must shall be in substantially the
   61  following form:
   63  Under penalty of perjury, I ...(Name of insured)... do hereby
   64  certify that I have ...(Personal Injury Protection, Property
   65  Damage Liability, and, when required, Bodily Injury
   66  Liability)... Insurance currently in effect with ...(Name of
   67  insurance company)... under ...(policy number)... covering
   68  ...(make, year, and vehicle identification number of
   69  vehicle).... ...(Signature of Insured)...
   71  Such affidavit shall include the following warning:
   78  When an application is made through a licensed motor vehicle
   79  dealer as required in s. 319.23, the original or a photostatic
   80  copy of such card, insurance policy, insurance policy binder, or
   81  certificate of insurance or the original affidavit from the
   82  insured shall be forwarded by the dealer to the tax collector of
   83  the county or the Department of Highway Safety and Motor
   84  Vehicles for processing. By executing the aforesaid affidavit,
   85  no licensed motor vehicle dealer will be liable in damages for
   86  any inadequacy, insufficiency, or falsification of any statement
   87  contained therein. A card shall also indicate the existence of
   88  any bodily injury liability insurance voluntarily purchased.
   89         Section 3. Subsection (8) is added to section 554.1021,
   90  Florida Statutes, to read:
   91         554.1021 Definitions.—As used in ss. 554.1011-554.115:
   92         (8) “Authorized inspection agency” means:
   93         (a) A county, city, town, or other governmental subdivision
   94  that has adopted and administers, at a minimum, Section I of the
   95  A.S.M.E. Boiler and Pressure Vessel Code as a legal requirement
   96  and whose inspectors hold valid certificates of competency in
   97  accordance with s. 554.113; or
   98         (b) An insurance company that is licensed or registered by
   99  an appropriate authority of any state of the United States or
  100  province of Canada and whose inspectors hold valid certificates
  101  of competency in accordance with s. 554.113.
  102         Section 4. Section 554.107, Florida Statutes, is amended to
  103  read:
  104         554.107 Special inspectors.—
  105         (1) Upon application by any an authorized inspection agency
  106  company licensed to insure boilers in this state, the chief
  107  inspector shall issue a certificate of competency as a special
  108  inspector to an any inspector employed by the agency if he or
  109  she company, provided that such inspector satisfies the
  110  competency requirements for inspectors as provided in s.
  111  554.113.
  112         (2) The certificate of competency of a special inspector
  113  remains shall remain in effect only so long as the special
  114  inspector is employed by an authorized inspection agency a
  115  company licensed to insure boilers in this state. Upon
  116  termination of employment with such agency company, a special
  117  inspector shall, in writing, notify the chief inspector of such
  118  termination. Such notice shall be given within 15 days following
  119  the date of termination.
  120         Section 5. Subsection (1) of section 554.109, Florida
  121  Statutes, is amended to read:
  122         554.109 Exemptions.—
  123         (1) An Any insurance company that insures insuring a boiler
  124  located in a public assembly location in this state shall
  125  inspect or contract with an authorized inspection agency to
  126  inspect such boiler so insured, and shall annually report to the
  127  department the identity of the authorized inspection agency that
  128  performs a required boiler inspection on behalf of the company.
  129  A any county, city, town, or other governmental subdivision that
  130  which has adopted into law the Boiler and Pressure Vessel Code
  131  of the American Society of Mechanical Engineers and the National
  132  Board Inspection Code for the construction, installation,
  133  inspection, maintenance, and repair of boilers, regulating such
  134  boilers in public assembly locations, shall inspect such boilers
  135  so regulated; provided that such inspection shall be conducted
  136  by a special inspector licensed pursuant to ss. 554.1011
  137  554.115. Upon filing of a report of satisfactory inspection with
  138  the department, such boiler is exempt from inspection by the
  139  department.
  140         Section 6. Paragraph (f) of subsection (1) of section
  141  624.413, Florida Statutes, is amended to read:
  142         624.413 Application for certificate of authority.—
  143         (1) To apply for a certificate of authority, an insurer
  144  shall file its application therefor with the office, upon a form
  145  adopted by the commission and furnished by the office, showing
  146  its name; location of its home office and, if an alien insurer,
  147  its principal office in the United States; kinds of insurance to
  148  be transacted; state or country of domicile; and such additional
  149  information as the commission reasonably requires, together with
  150  the following documents:
  151         (f) If a foreign or alien insurer, a copy of the report of
  152  the most recent examination of the insurer certified by the
  153  public official having supervision of insurance in its state of
  154  domicile or of entry into the United States. The end of the most
  155  recent year covered by the examination must be within the 5-year
  156  3-year period preceding the date of application. In lieu of the
  157  certified examination report, the office may accept an audited
  158  certified public accountant’s report prepared on a basis
  159  consistent with the insurance laws of the insurer’s state of
  160  domicile, certified by the public official having supervision of
  161  insurance in its state of domicile or of entry into the United
  162  States.
  163         Section 7. Subsection (4) is added to section 626.0428,
  164  Florida Statutes, to read:
  165         626.0428 Agency personnel powers, duties, and limitations.—
  166         (4)(a) Each place of business established by an agent or
  167  agency, firm, corporation, or association must be in the active
  168  full-time charge of a licensed and appointed agent holding the
  169  required agent licenses to transact the lines of insurance being
  170  handled at the location.
  171         (b) Notwithstanding paragraph (a), the licensed agent in
  172  charge of an insurance agency may also be the agent in charge of
  173  additional branch office locations of the agency if insurance
  174  activities requiring licensure as an insurance agent do not
  175  occur at any location when the agent is not physically present
  176  and unlicensed employees at the location do not engage in
  177  insurance activities requiring licensure as an insurance agent
  178  or customer representative.
  179         (c) An insurance agency and each branch place of business
  180  of an insurance agency shall designate an agent in charge and
  181  file the name and license number of the agent in charge and the
  182  physical address of the insurance agency location with the
  183  department at the department’s designated website. The
  184  designation of the agent in charge may be changed at the option
  185  of the agency. A change of the designated agent in charge is
  186  effective upon notification to the department, which shall be
  187  provided within 30 days after such change.
  188         (d) For the purposes of this subsection, an “agent in
  189  charge” is the licensed and appointed agent who is responsible
  190  for the supervision of all individuals within an insurance
  191  agency location, regardless of whether such individuals deal
  192  with the general public in the solicitation or negotiation of
  193  insurance contracts or the collection or accounting of moneys.
  194         (e) An agent in charge of an insurance agency is
  195  accountable for wrongful acts, misconduct, or violations of
  196  provisions of this code committed by the agent or by any person
  197  under his or her supervision while acting on behalf of the
  198  agency. This section may not be construed to render the agent in
  199  charge criminally liable for an act unless he or she personally
  200  committed or knew or should have known of the act and of the
  201  facts constituting a violation of this chapter.
  202         (f)An insurance agency location may not conduct the
  203  business of insurance unless the agency designates an agent in
  204  charge at all times. If the agency fails to update the
  205  designation of the agent in charge within 90 days after the date
  206  of a change in designation, the department shall automatically
  207  revoke the agency’s license.
  208         Section 8. Subsection (7) of section 626.112, Florida
  209  Statutes, is amended to read:
  210         626.112 License and appointment required; agents, customer
  211  representatives, adjusters, insurance agencies, service
  212  representatives, managing general agents.—
  213         (7)(a) Effective October 1, 2006, No individual, firm,
  214  partnership, corporation, association, or any other entity shall
  215  act in its own name or under a trade name, directly or
  216  indirectly, as an insurance agency, unless it complies with s.
  217  626.172 with respect to possessing an insurance agency license
  218  for each place of business at which it engages in an any
  219  activity that which may be performed only by a licensed
  220  insurance agent. However, an insurance agency that is owned and
  221  operated by a single licensed agent conducting business in his
  222  or her individual name and not employing or otherwise using the
  223  services of or appointing other licensees is exempt from the
  224  agency licensing requirements of this subsection. A branch place
  225  of business that is established by a licensed agency is
  226  considered a branch agency and is not required to be licensed so
  227  long as it transacts business under the same name and federal
  228  tax identification number as the licensed agency and has
  229  designated a licensed agent in charge of the location as
  230  required by s. 626.0428 and the address and telephone number of
  231  the location have been submitted to the department for inclusion
  232  in the licensing record of the licensed agency within 30 days
  233  after insurance transactions begin at the location Each agency
  234  engaged in business in this state before January 1, 2003, which
  235  is wholly owned by insurance agents currently licensed and
  236  appointed under this chapter, each incorporated agency whose
  237  voting shares are traded on a securities exchange, each agency
  238  designated and subject to supervision and inspection as a branch
  239  office under the rules of the National Association of Securities
  240  Dealers, and each agency whose primary function is offering
  241  insurance as a service or member benefit to members of a
  242  nonprofit corporation may file an application for registration
  243  in lieu of licensure in accordance with s. 626.172(3). Each
  244  agency engaged in business before October 1, 2006, shall file an
  245  application for licensure or registration on or before October
  246  1, 2006.
  247         (b)1. If an agency is required to be licensed but fails to
  248  file an application for licensure in accordance with this
  249  section, the department shall impose on the agency an
  250  administrative penalty in an amount of up to $10,000.
  251         2. If an agency is eligible for registration but fails to
  252  file an application for registration or an application for
  253  licensure in accordance with this section, the department shall
  254  impose on the agency an administrative penalty in an amount of
  255  up to $5,000.
  256         (c)(b)Effective October 1, 2013, the department must
  257  automatically convert the registration of an approved a
  258  registered insurance agency to shall, as a condition precedent
  259  to continuing business, obtain an insurance agency license if
  260  the department finds that, with respect to any majority owner,
  261  partner, manager, director, officer, or other person who manages
  262  or controls the agency, any person has:
  263         1. Been found guilty of, or has pleaded guilty or nolo
  264  contendere to, a felony in this state or any other state
  265  relating to the business of insurance or to an insurance agency,
  266  without regard to whether a judgment of conviction has been
  267  entered by the court having jurisdiction of the cases.
  268         2. Employed any individual in a managerial capacity or in a
  269  capacity dealing with the public who is under an order of
  270  revocation or suspension issued by the department. An insurance
  271  agency may request, on forms prescribed by the department,
  272  verification of any person’s license status. If a request is
  273  mailed within 5 working days after an employee is hired, and the
  274  employee’s license is currently suspended or revoked, the agency
  275  shall not be required to obtain a license, if the unlicensed
  276  person’s employment is immediately terminated.
  277         3. Operated the agency or permitted the agency to be
  278  operated in violation of s. 626.747.
  279         4. With such frequency as to have made the operation of the
  280  agency hazardous to the insurance-buying public or other
  281  persons:
  282         a. Solicited or handled controlled business. This
  283  subparagraph shall not prohibit the licensing of any lending or
  284  financing institution or creditor, with respect to insurance
  285  only, under credit life or disability insurance policies of
  286  borrowers from the institutions, which policies are subject to
  287  part IX of chapter 627.
  288         b. Misappropriated, converted, or unlawfully withheld
  289  moneys belonging to insurers, insureds, beneficiaries, or others
  290  and received in the conduct of business under the license.
  291         c. Unlawfully rebated, attempted to unlawfully rebate, or
  292  unlawfully divided or offered to divide commissions with
  293  another.
  294         d. Misrepresented any insurance policy or annuity contract,
  295  or used deception with regard to any policy or contract, done
  296  either in person or by any form of dissemination of information
  297  or advertising.
  298         e. Violated any provision of this code or any other law
  299  applicable to the business of insurance in the course of dealing
  300  under the license.
  301         f. Violated any lawful order or rule of the department.
  302         g. Failed or refused, upon demand, to pay over to any
  303  insurer he or she represents or has represented any money coming
  304  into his or her hands belonging to the insurer.
  305         h. Violated the provision against twisting as defined in s.
  306  626.9541(1)(l).
  307         i. In the conduct of business, engaged in unfair methods of
  308  competition or in unfair or deceptive acts or practices, as
  309  prohibited under part IX of this chapter.
  310         j. Willfully overinsured any property insurance risk.
  311         k. Engaged in fraudulent or dishonest practices in the
  312  conduct of business arising out of activities related to
  313  insurance or the insurance agency.
  314         l. Demonstrated lack of fitness or trustworthiness to
  315  engage in the business of insurance arising out of activities
  316  related to insurance or the insurance agency.
  317         m. Authorized or knowingly allowed individuals to transact
  318  insurance who were not then licensed as required by this code.
  319         5. Knowingly employed any person who within the preceding 3
  320  years has had his or her relationship with an agency terminated
  321  in accordance with paragraph (d).
  322         6. Willfully circumvented the requirements or prohibitions
  323  of this code.
  324         Section 9. Subsections (2), (3), and (4) of section
  325  626.172, Florida Statutes, are amended to read:
  326         626.172 Application for insurance agency license.—
  327         (2) An application for an insurance agency license must
  328  shall be signed by the owner or owners of the agency. If the
  329  agency is incorporated, the application must shall be signed by
  330  the president and secretary of the corporation. The application
  331  for an insurance agency license must shall include:
  332         (a) The name of each majority owner, partner, officer, and
  333  director of the insurance agency.
  334         (b) The residence address of each person required to be
  335  listed in the application under paragraph (a).
  336         (c) The name of the insurance agency, and its principal
  337  business street address and a valid e-mail address of the
  338  insurance agency.
  339         (d) The physical address location of each branch agency,
  340  including its name, e-mail address, and telephone number and the
  341  date that the branch location began transacting insurance office
  342  and the name under which each agency office conducts or will
  343  conduct business.
  344         (e) The name of each agent to be in full-time charge of an
  345  agency office and specification of which office, including
  346  branch locations.
  347         (f) The fingerprints of each of the following:
  348         1. A sole proprietor;
  349         2. Each partner;
  350         3. Each owner of an unincorporated agency;
  351         4. Each owner who directs or participates in the management
  352  or control of an incorporated agency whose shares are not traded
  353  on a securities exchange;
  354         5. The president, senior vice presidents, treasurer,
  355  secretary, and directors of the agency; and
  356         6. Any other person who directs or participates in the
  357  management or control of the agency, whether through the
  358  ownership of voting securities, by contract, by ownership of
  359  agency bank accounts, or otherwise.
  361  Fingerprints must be taken by a law enforcement agency or other
  362  entity approved by the department and must be accompanied by the
  363  fingerprint processing fee specified in s. 624.501. Fingerprints
  364  must shall be processed in accordance with s. 624.34. However,
  365  fingerprints need not be filed for an any individual who is
  366  currently licensed and appointed under this chapter. This
  367  paragraph does not apply to corporations whose voting shares are
  368  traded on a securities exchange.
  369         (g) Such additional information as the department requires
  370  by rule to ascertain the trustworthiness and competence of
  371  persons required to be listed on the application and to
  372  ascertain that such persons meet the requirements of this code.
  373  However, the department may not require that credit or character
  374  reports be submitted for persons required to be listed on the
  375  application.
  376         (h) Beginning October 1, 2005, The department must shall
  377  accept the uniform application for nonresident agency licensure.
  378  The department may adopt by rule revised versions of the uniform
  379  application.
  380         (3) The department shall issue a registration as an
  381  insurance agency to any agency that files a written application
  382  with the department and qualifies for registration. The
  383  application for registration shall require the agency to provide
  384  the same information required for an agency licensed under
  385  subsection (2), the agent identification number for each owner
  386  who is a licensed agent, proof that the agency qualifies for
  387  registration as provided in s. 626.112(7), and any other
  388  additional information that the department determines is
  389  necessary in order to demonstrate that the agency qualifies for
  390  registration. The application must be signed by the owner or
  391  owners of the agency. If the agency is incorporated, the
  392  application must be signed by the president and the secretary of
  393  the corporation. An agent who owns the agency need not file
  394  fingerprints with the department if the agent obtained a license
  395  under this chapter and the license is currently valid.
  396         (a) If an application for registration is denied, the
  397  agency must file an application for licensure no later than 30
  398  days after the date of the denial of registration.
  399         (b) A registered insurance agency must file an application
  400  for licensure no later than 30 days after the date that any
  401  person who is not a licensed and appointed agent in this state
  402  acquires any ownership interest in the agency. If an agency
  403  fails to file an application for licensure in compliance with
  404  this paragraph, the department shall impose an administrative
  405  penalty in an amount of up to $5,000 on the agency.
  406         (c) Sections 626.6115 and 626.6215 do not apply to agencies
  407  registered under this subsection.
  408         (3)(4) The department must shall issue a license or
  409  registration to each agency upon approval of the application,
  410  and each agency location must shall display the license or
  411  registration prominently in a manner that makes it clearly
  412  visible to a any customer or potential customer who enters the
  413  agency.
  414         Section 10. Paragraph (d) of subsection (1) of section
  415  626.321, Florida Statutes, is amended to read:
  416         626.321 Limited licenses.—
  417         (1) The department shall issue to a qualified applicant a
  418  license as agent authorized to transact a limited class of
  419  business in any of the following categories of limited lines
  420  insurance:
  421         (d) Motor vehicle rental insurance.—
  422         1. License covering only insurance of the risks set forth
  423  in this paragraph when offered, sold, or solicited with and
  424  incidental to the rental or lease of a motor vehicle and which
  425  applies only to the motor vehicle that is the subject of the
  426  lease or rental agreement and the occupants of the motor
  427  vehicle:
  428         a. Excess motor vehicle liability insurance providing
  429  coverage in excess of the standard liability limits provided by
  430  the lessor in the lessor’s lease to a person renting or leasing
  431  a motor vehicle from the licensee’s employer for liability
  432  arising in connection with the negligent operation of the leased
  433  or rented motor vehicle.
  434         b. Insurance covering the liability of the lessee to the
  435  lessor for damage to the leased or rented motor vehicle.
  436         c. Insurance covering the loss of or damage to baggage,
  437  personal effects, or travel documents of a person renting or
  438  leasing a motor vehicle.
  439         d. Insurance covering accidental personal injury or death
  440  of the lessee and any passenger who is riding or driving with
  441  the covered lessee in the leased or rented motor vehicle.
  442         2. Insurance under a motor vehicle rental insurance license
  443  may be issued only if the lease or rental agreement is for no
  444  more than 60 days, the lessee is not provided coverage for more
  445  than 60 consecutive days per lease period, and the lessee is
  446  given written notice that his or her personal insurance policy
  447  providing coverage on an owned motor vehicle may provide
  448  coverage of such risks and that the purchase of the insurance is
  449  not required in connection with the lease or rental of a motor
  450  vehicle. If the lease is extended beyond 60 days, the coverage
  451  may be extended one time only for a period not to exceed an
  452  additional 60 days. Insurance may be provided to the lessee as
  453  an additional insured on a policy issued to the licensee’s
  454  employer.
  455         3. The license may be issued only to the full-time salaried
  456  employee of a licensed general lines agent or to a business
  457  entity that offers motor vehicles for rent or lease if insurance
  458  sales activities authorized by the license are in connection
  459  with and incidental to the rental or lease of a motor vehicle.
  460         a. A license issued to a business entity that offers motor
  461  vehicles for rent or lease encompasses each office, branch
  462  office, employee, or place of business making use of the
  463  entity’s business name in order to offer, solicit, and sell
  464  insurance pursuant to this paragraph.
  465         b. The application for licensure must list the name,
  466  address, and phone number for each office, branch office, or
  467  place of business that is to be covered by the license. The
  468  licensee shall notify the department of the name, address, and
  469  phone number of any new location that is to be covered by the
  470  license before the new office, branch office, or place of
  471  business engages in the sale of insurance pursuant to this
  472  paragraph. The licensee must notify the department within 30
  473  days after closing or terminating an office, branch office, or
  474  place of business. Upon receipt of the notice, the department
  475  shall delete the office, branch office, or place of business
  476  from the license.
  477         c. A licensed and appointed entity is directly responsible
  478  and accountable for all acts of the licensee’s employees.
  479         Section 11. Section 626.382, Florida Statutes, is amended
  480  to read:
  481         626.382 Continuation, expiration of license; insurance
  482  agencies.—An insurance agency license continues The license of
  483  any insurance agency shall be issued for a period of 3 years and
  484  shall continue in force until it is canceled, suspended,
  485  revoked, or otherwise terminated. A license may be renewed by
  486  submitting a renewal request to the department on a form adopted
  487  by department rule.
  488         Section 12. Section 626.601, Florida Statutes, is amended
  489  to read:
  490         626.601 Improper conduct; inquiry; fingerprinting.—
  491         (1) The department or office may, upon its own motion or
  492  upon a written complaint signed by an any interested person and
  493  filed with the department or office, inquire into any alleged
  494  improper conduct of a any licensed, approved, or certified
  495  insurance agency, agent, adjuster, service representative,
  496  managing general agent, customer representative, title insurance
  497  agent, title insurance agency, mediator, neutral evaluator,
  498  continuing education course provider, instructor, school
  499  official, or monitor group under this code. The department or
  500  office may thereafter initiate an investigation of any such
  501  individual or entity licensee if it has reasonable cause to
  502  believe that the individual or entity licensee has violated any
  503  provision of the insurance code. During the course of its
  504  investigation, the department or office shall contact the
  505  individual or entity licensee being investigated unless it
  506  determines that contacting such individual or entity person
  507  could jeopardize the successful completion of the investigation
  508  or cause injury to the public.
  509         (2) In the investigation by the department or office of the
  510  alleged misconduct, the individual or entity licensee shall,
  511  whenever so required by the department or office, cause the
  512  individual’s or entity’s his or her books and records to be open
  513  for inspection for the purpose of such inquiries.
  514         (3) The complaints against an individual or entity any
  515  licensee may be informally alleged and are not required to
  516  include language need not be in any such language as is
  517  necessary to charge a crime on an indictment or information.
  518         (4) The expense for any hearings or investigations
  519  conducted under this law, as well as the fees and mileage of
  520  witnesses, may be paid out of the appropriate fund.
  521         (5) If the department or office, after investigation, has
  522  reason to believe that an individual a licensee may have been
  523  found guilty of or pleaded guilty or nolo contendere to a felony
  524  or a crime related to the business of insurance in this or any
  525  other state or jurisdiction, the department or office may
  526  require the individual licensee to file with the department or
  527  office a complete set of his or her fingerprints, which must
  528  shall be accompanied by the fingerprint processing fee set forth
  529  in s. 624.501. The fingerprints shall be taken by an authorized
  530  law enforcement agency or other department-approved entity.
  531         (6) The complaint and any information obtained pursuant to
  532  the investigation by the department or office are confidential
  533  and are exempt from the provisions of s. 119.07, unless the
  534  department or office files a formal administrative complaint,
  535  emergency order, or consent order against the individual or
  536  entity licensee. Nothing in This subsection does not shall be
  537  construed to prevent the department or office from disclosing
  538  the complaint or such information as it deems necessary to
  539  conduct the investigation, to update the complainant as to the
  540  status and outcome of the complaint, or to share such
  541  information with a any law enforcement agency.
  542         Section 13. Section 626.747, Florida Statutes, is repealed.
  543         Section 14. Paragraph (b) of subsection (1) of section
  544  626.8411, Florida Statutes, is amended to read:
  545         626.8411 Application of Florida Insurance Code provisions
  546  to title insurance agents or agencies.—
  547         (1) The following provisions of part II applicable to
  548  general lines agents or agencies also apply to title insurance
  549  agents or agencies:
  550         (b) Section 626.0428(4)(a) and (b) 626.747, relating to
  551  branch agencies.
  552         Section 15. Paragraph (c) of subsection (2) and subsection
  553  (3) of section 626.8805, Florida Statutes, is amended to read:
  554         626.8805 Certificate of authority to act as administrator.—
  555         (2) The administrator shall file with the office an
  556  application for a certificate of authority upon a form to be
  557  adopted by the commission and furnished by the office, which
  558  application shall include or have attached the following
  559  information and documents:
  560         (c) The names, addresses, official positions, and
  561  professional qualifications of the individuals who are employed
  562  or retained by the administrator and who are responsible for the
  563  conduct of the affairs of the administrator, including all
  564  members of the board of directors, board of trustees, executive
  565  committee, or other governing board or committee, and the
  566  principal officers in the case of a corporation or, the partners
  567  or members in the case of a partnership or association of the
  568  administrator, and any other person who exercises control or
  569  influence over the affairs of the administrator.
  570         (3) The applicant shall make available for inspection by
  571  the office copies of all contracts relating to services provided
  572  by the administrator to with insurers or other persons utilizing
  573  the services of the administrator.
  574         Section 16. Subsections (1) and (3) of section 626.8817,
  575  Florida Statutes, are amended to read:
  576         626.8817 Responsibilities of insurance company with respect
  577  to administration of coverage insured.—
  578         (1) If an insurer uses the services of an administrator,
  579  the insurer is responsible for determining the benefits, premium
  580  rates, underwriting criteria, and claims payment procedures
  581  applicable to the coverage and for securing reinsurance, if any.
  582  The rules pertaining to these matters shall be provided, in
  583  writing, by the insurer, or its designee, to the administrator.
  584  The responsibilities of the administrator as to any of these
  585  matters shall be set forth in a the written agreement binding
  586  upon between the administrator and the insurer.
  587         (3) In cases in which an administrator administers benefits
  588  for more than 100 certificateholders on behalf of an insurer,
  589  the insurer shall, at least semiannually, conduct a review of
  590  the operations of the administrator. At least one such review
  591  must be an onsite audit of the operations of the administrator.
  592  The insurer may contract with a qualified third party to conduct
  593  such examination.
  594         Section 17. Subsections (1) and (4) of section 626.882,
  595  Florida Statutes, are amended to read:
  596         626.882 Agreement between administrator and insurer;
  597  required provisions; maintenance of records.—
  598         (1) A No person may not act as an administrator without a
  599  written agreement, as required under s. 626.8817, which
  600  specifies the rights, duties and obligations of the between such
  601  person as administrator and an insurer.
  602         (4) If a policy is issued to a trustee or trustees, a copy
  603  of the trust agreement and any amendments to that agreement
  604  shall be furnished to the insurer or its designee by the
  605  administrator and shall be retained as part of the official
  606  records of both the administrator and the insurer for the
  607  duration of the policy and for 5 years thereafter.
  608         Section 18. Subsections (3), (4), and (5) of section
  609  626.883, Florida Statutes, are amended to read:
  610         626.883 Administrator as intermediary; collections held in
  611  fiduciary capacity; establishment of account; disbursement;
  612  payments on behalf of insurer.—
  613         (3) If charges or premiums deposited in a fiduciary account
  614  have been collected on behalf of or for more than one insurer,
  615  the administrator shall keep records clearly recording the
  616  deposits in and withdrawals from such account on behalf of or
  617  for each insurer. The administrator shall, upon request of an
  618  insurer or its designee, furnish such insurer with copies of
  619  records pertaining to deposits and withdrawals on behalf of or
  620  for such insurer.
  621         (4) The administrator may not pay a any claim by
  622  withdrawals from a fiduciary account. Withdrawals from such
  623  account shall be made as provided in the written agreement
  624  required under ss. 626.8817 and 626.882 between the
  625  administrator and the insurer for any of the following:
  626         (a) Remittance to an insurer entitled to such remittance.
  627         (b) Deposit in an account maintained in the name of such
  628  insurer.
  629         (c) Transfer to and deposit in a claims-paying account,
  630  with claims to be paid as provided by such insurer.
  631         (d) Payment to a group policyholder for remittance to the
  632  insurer entitled to such remittance.
  633         (e) Payment to the administrator of the commission, fees,
  634  or charges of the administrator.
  635         (f) Remittance of return premium to the person or persons
  636  entitled to such return premium.
  637         (5) All claims paid by the administrator from funds
  638  collected on behalf of the insurer shall be paid only on drafts
  639  of, and as authorized by, such insurer or its designee.
  640         Section 19. Subsection (3) of section 626.884, Florida
  641  Statutes, is amended to read:
  642         626.884 Maintenance of records by administrator; access;
  643  confidentiality.—
  644         (3) The insurer shall retain the right of continuing access
  645  to books and records maintained by the administrator sufficient
  646  to permit the insurer to fulfill all of its contractual
  647  obligations to insured persons, subject to any restrictions in
  648  the written agreement pertaining to between the insurer and the
  649  administrator on the proprietary rights of the parties in such
  650  books and records.
  651         Section 20. Subsections (1) and (2) of section 626.89,
  652  Florida Statutes, are amended to read:
  653         626.89 Annual financial statement and filing fee; notice of
  654  change of ownership.—
  655         (1) Each authorized administrator shall file with the
  656  office a full and true statement of its financial condition,
  657  transactions, and affairs. The statement shall be filed annually
  658  on or before April March 1 or within such extension of time
  659  therefor as the office for good cause may have granted and shall
  660  be for the preceding calendar year or fiscal year, if the
  661  administrator’s accounting is on a fiscal year basis. The
  662  statement shall be in such form and contain such matters as the
  663  commission prescribes and shall be verified by at least two
  664  officers of such administrator. An administrator whose sole
  665  stockholder is an association representing health care providers
  666  which is not an affiliate of an insurer, an administrator of a
  667  pooled governmental self-insurance program, or an administrator
  668  that is a university may submit the preceding fiscal year’s
  669  statement within 2 months after its fiscal year end.
  670         (2) Each authorized administrator shall also file an
  671  audited financial statement performed by an independent
  672  certified public accountant. The audited financial statement
  673  shall be filed with the office on or before July June 1 for the
  674  preceding calendar or fiscal year ending December 31. An
  675  administrator whose sole stockholder is an association
  676  representing health care providers which is not an affiliate of
  677  an insurer, an administrator of a pooled governmental self
  678  insurance program, or an administrator that is a university may
  679  submit the preceding fiscal year’s audited financial statement
  680  within 5 months after the end of its fiscal year. An audited
  681  financial statement prepared on a consolidated basis must
  682  include a columnar consolidating or combining worksheet that
  683  must be filed with the statement and must comply with the
  684  following:
  685         (a) Amounts shown on the consolidated audited financial
  686  statement must be shown on the worksheet;
  687         (b) Amounts for each entity must be stated separately; and
  688         (c) Explanations of consolidating and eliminating entries
  689  must be included.
  690         Section 21. Section 626.931, Florida Statutes, is amended
  691  to read:
  692         626.931 Agent affidavit and Insurer reporting
  693  requirements.—
  694         (1) Each surplus lines agent shall on or before the 45th
  695  day following each calendar quarter file with the Florida
  696  Surplus Lines Service Office an affidavit, on forms as
  697  prescribed and furnished by the Florida Surplus Lines Service
  698  Office, stating that all surplus lines insurance transacted by
  699  him or her during such calendar quarter has been submitted to
  700  the Florida Surplus Lines Service Office as required.
  701         (2) The affidavit of the surplus lines agent shall include
  702  efforts made to place coverages with authorized insurers and the
  703  results thereof.
  704         (1)(3) Each foreign insurer accepting premiums shall, on or
  705  before the end of the month following each calendar quarter,
  706  file with the Florida Surplus Lines Service Office a verified
  707  report of all surplus lines insurance transacted by such insurer
  708  for insurance risks located in this state during such calendar
  709  quarter.
  710         (2)(4) Each alien insurer accepting premiums shall, on or
  711  before June 30 of each year, file with the Florida Surplus Lines
  712  Service Office a verified report of all surplus lines insurance
  713  transacted by such insurer for insurance risks located in this
  714  state during the preceding calendar year.
  715         (3)(5) The department may waive the filing requirements
  716  described in subsections (1) (3) and (2) (4).
  717         (4)(6) Each insurer’s report and supporting information
  718  shall be in a computer-readable format as determined by the
  719  Florida Surplus Lines Service Office or shall be submitted on
  720  forms prescribed by the Florida Surplus Lines Service Office and
  721  shall show for each applicable agent:
  722         (a) A listing of all policies, certificates, cover notes,
  723  or other forms of confirmation of insurance coverage or any
  724  substitutions thereof or endorsements thereto and the
  725  identifying number; and
  726         (b) Any additional information required by the department
  727  or Florida Surplus Lines Service Office.
  728         Section 22. Paragraph (a) of subsection (2) of section
  729  626.932, Florida Statutes, is amended to read:
  730         626.932 Surplus lines tax.—
  731         (2)(a) The surplus lines agent shall make payable to the
  732  department the tax related to each calendar quarter’s business
  733  as reported to the Florida Surplus Lines Service Office, and
  734  remit the tax to the Florida Surplus Lines Service Office on or
  735  before the 45th day following each calendar quarter at the same
  736  time as provided for the filing of the quarterly affidavit,
  737  under s. 626.931. The Florida Surplus Lines Service Office shall
  738  forward to the department the taxes and any interest collected
  739  pursuant to paragraph (b), within 10 days after of receipt.
  740         Section 23. Subsection (1) of section 626.935, Florida
  741  Statutes, is amended to read:
  742         626.935 Suspension, revocation, or refusal of surplus lines
  743  agent’s license.—
  744         (1) The department shall deny an application for, suspend,
  745  revoke, or refuse to renew the appointment of a surplus lines
  746  agent and all other licenses and appointments held by the
  747  licensee under this code, on any of the following grounds:
  748         (a) Removal of the licensee’s office from the licensee’s
  749  state of residence.
  750         (b) Removal of the accounts and records of his or her
  751  surplus lines business from this state or the licensee’s state
  752  of residence during the period when such accounts and records
  753  are required to be maintained under s. 626.930.
  754         (c) Closure of the licensee’s office for more than 30
  755  consecutive days.
  756         (d) Failure to make and file his or her affidavit or
  757  reports when due as required by s. 626.931.
  758         (d)(e) Failure to pay the tax or service fee on surplus
  759  lines premiums, as provided in the Surplus Lines Law.
  760         (e)(f) Suspension, revocation, or refusal to renew or
  761  continue the license or appointment as a general lines agent,
  762  service representative, or managing general agent.
  763         (f)(g) Lack of qualifications as for an original surplus
  764  lines agent’s license.
  765         (g)(h) Violation of this Surplus Lines Law.
  766         (h)(i) For any other applicable cause for which the license
  767  of a general lines agent could be suspended, revoked, or refused
  768  under s. 626.611 or s. 626.621.
  769         Section 24. Subsection (1) of section 626.936, Florida
  770  Statutes, is amended to read:
  771         626.936 Failure to file reports or pay tax or service fee;
  772  administrative penalty.—
  773         (1) A Any licensed surplus lines agent who neglects to file
  774  a report or an affidavit in the form and within the time
  775  required or provided for in the Surplus Lines Law may be fined
  776  up to $50 per day for each day the neglect continues, beginning
  777  the day after the report or affidavit was due until the date the
  778  report or affidavit is received. All sums collected under this
  779  section shall be deposited into the Insurance Regulatory Trust
  780  Fund.
  781         Section 25. Subsection (1) of section 626.9914, Florida
  782  Statutes, is amended to read:
  783         626.9914 Suspension, revocation, denial, or nonrenewal of
  784  viatical settlement provider license; grounds; administrative
  785  fine.—
  786         (1) The office shall suspend, revoke, deny, or refuse to
  787  renew the license of a any viatical settlement provider if the
  788  office finds that the licensee:
  789         (a) Has made a misrepresentation in the application for the
  790  license;
  791         (b) Has engaged in fraudulent or dishonest practices, or
  792  otherwise has been shown to be untrustworthy or incompetent to
  793  act as a viatical settlement provider;
  794         (c) Demonstrates a pattern of unreasonable payments to
  795  viators;
  796         (d) Has been found guilty of, or has pleaded guilty or nolo
  797  contendere to, a any felony, or a misdemeanor involving fraud or
  798  moral turpitude, regardless of whether a judgment of conviction
  799  has been entered by the court;
  800         (e) Has issued viatical settlement contracts that have not
  801  been approved pursuant to this act;
  802         (f) Has failed to honor contractual obligations related to
  803  the business of viatical settlement contracts;
  804         (g) Deals in bad faith with viators;
  805         (h) Has violated any provision of the insurance code or of
  806  this act;
  807         (i) Employs a any person who materially influences the
  808  licensee’s conduct and who fails to meet the requirements of
  809  this act; or
  810         (j) No longer meets the requirements for initial licensure;
  811  or
  812         (k) Obtains or utilizes life expectancies from life
  813  expectancy providers who are not registered with the office
  814  pursuant to this act.
  815         Section 26. Section 626.99175, Florida Statutes, is amended
  816  to read:
  817         626.99175 Life expectancy providers; registration required;
  818  denial, suspension, revocation.—
  819         (1) After July 1, 2006, a person may not perform the
  820  functions of a life expectancy provider without first having
  821  registered as a life expectancy provider, except as provided in
  822  subsection (6).
  823         (2) Application for registration as a life expectancy
  824  provider must be made to the office by the applicant on a form
  825  prescribed by the office, under oath and signed by the
  826  applicant. The application must be accompanied by a fee of $500.
  827         (3) A completed application shall be evidenced on a form
  828  and in a manner prescribed by the office and shall require the
  829  registered life expectancy provider to update such information
  830  and renew such registration as required by the office.
  831         (4) In the application, the applicant must provide all of
  832  the following:
  833         (a) The full name, age, residence address, and business
  834  address, and all occupations engaged in by the applicant during
  835  the 5 years preceding the date of the application.
  836         (b) A copy of the applicant’s basic organizational
  837  documents, if any, including the articles of incorporation,
  838  articles of association, partnership agreement, trust agreement,
  839  or other similar documents, together with all amendments to such
  840  documents.
  841         (c) Copies of all bylaws, rules, regulations, or similar
  842  documents regulating the conduct of the applicant’s internal
  843  affairs.
  844         (d) A list showing the name, business and residence
  845  addresses, and official position of each individual who is
  846  responsible for conduct of the applicant’s affairs, including,
  847  but not limited to, any member of the board of directors, board
  848  of trustees, executive committee, or other governing board or
  849  committee and any other person or entity owning or having the
  850  right to acquire 10 percent or more of the voting securities of
  851  the applicant, and any person performing life expectancies by
  852  the applicant.
  853         (e) A sworn biographical statement on forms supplied by the
  854  office with respect to each individual identified under
  855  paragraph (d), including whether such individual has been
  856  associated with any other life expectancy provider or has
  857  performed any services for a person in the business of viatical
  858  settlements.
  859         (f) A sworn statement of any criminal and civil actions
  860  pending or final against the registrant or any individual
  861  identified under paragraph (d).
  862         (g) A general description of the following policies and
  863  procedures covering all life expectancy determination criteria
  864  and protocols:
  865         1. The plan or plans of policies and procedures used to
  866  determine life expectancies.
  867         2. A description of the training, including continuing
  868  training, of the individuals who determine life expectancies.
  869         3. A description of how the life expectancy provider
  870  updates its manuals, underwriting guides, mortality tables, and
  871  other reference works and ensures that the provider bases its
  872  determination of life expectancies on current data.
  873         (h) A plan for assuring confidentiality of personal,
  874  medical, and financial information in accordance with federal
  875  and state laws.
  876         (i) An anti-fraud plan as required pursuant to s.
  877  626.99278.
  878         (j) A list of any agreements, contracts, or any other
  879  arrangement to provide life expectancies to a viatical
  880  settlement provider, viatical settlement broker, or any other
  881  person in the business of viatical settlements in connection
  882  with any viatical settlement contract or viatical settlement
  883  investment.
  884         (5) As part of the application, and on or before March 1 of
  885  every 3 years thereafter, a registered life expectancy provider
  886  shall file with the office an audit of all life expectancies by
  887  the life expectancy provider for the 5 calendar years
  888  immediately preceding such audit, which audit shall be conducted
  889  and certified by a nationally recognized actuarial firm and
  890  shall include only the following:
  891         (a) A mortality table.
  892         (b) The number, percentage, and an actual-to-expected ratio
  893  of life expectancies in the following categories: life
  894  expectancies of less than 24 months, life expectancies of 25
  895  months to 48 months, life expectancies of 49 months to 72
  896  months, life expectancies of 73 months to 108 months, life
  897  expectancies of 109 months to 144 months, life expectancies of
  898  145 months to 180 months, and life expectancies of more than 180
  899  months.
  900         (6)A No viatical settlement broker, viatical settlement
  901  provider, or insurance agent in the business of viatical
  902  settlements in this state may not shall directly or indirectly
  903  own or be an officer, director, or employee of a life expectancy
  904  provider.
  905         (7) Each registered life expectancy provider shall provide
  906  the office, as applicable, at least 30 days’ advance notice of
  907  any change in the registrant’s name, residence address,
  908  principal business address, or mailing address.
  909         (8) A person required to be registered by this section
  910  shall for 5 years retain copies of all life expectancies and
  911  supporting documents and medical records unless those personal
  912  medical records are subject to different retention or
  913  destruction requirements of a federal or state personal health
  914  information law.
  915         (9) An application for life expectancy provider
  916  registration shall be approved or denied by the commissioner
  917  within 60 calendar days following receipt of a completed
  918  application by the commissioner. The office shall notify the
  919  applicant that the application is complete. A completed
  920  application that is not approved or denied in 60 calendar days
  921  following its receipt shall be deemed approved.
  922         (10) The office may, in its discretion, deny the
  923  application for a life expectancy provider registration or
  924  suspend, revoke, or refuse to renew or continue the registration
  925  of a life expectancy provider if the office finds:
  926         (a) Any cause for which registration could have been
  927  refused had it then existed and been known to the office;
  928         (b) A violation of any provision of this code or of any
  929  other law applicable to the applicant or registrant;
  930         (c) A violation of any lawful order or rule of the
  931  department, commission, or office; or
  932         (d) That the applicant or registrant:
  933         1. Has been found guilty of or pled guilty or nolo
  934  contendere to a felony or a crime punishable by imprisonment of
  935  1 year or more under the law of the United States of America or
  936  of any state thereof or under the law of any other country;
  937         2. Has knowingly and willfully aided, assisted, procured,
  938  advised, or abetted any person in the violation of a provision
  939  of the insurance code or any order or rule of the department,
  940  commission, or office;
  941         3. Has knowingly and with intent to defraud, provided a
  942  life expectancy that does not conform to an applicant’s or
  943  registrant’s general practice;
  944         4. Does not have a good business reputation or does not
  945  have experience, training, or education that qualifies the
  946  applicant or registrant to conduct the business of a life
  947  expectancy provider; or
  948         5. Has demonstrated a lack of fitness or trustworthiness to
  949  engage in the business of issuing life expectancies.
  950         (11) The office may, in lieu of or in addition to any
  951  suspension or revocation, assess an administrative fine not to
  952  exceed $2,500 for each nonwillful violation or $10,000 for each
  953  willful violation by a registered life expectancy provider. The
  954  office may also place a registered life expectancy provider on
  955  probation for a period not to exceed 2 years.
  956         (12) It is a violation of this section for a person to
  957  represent, orally or in writing, that a life expectancy
  958  provider’s registration pursuant to this act is in any way a
  959  recommendation or approval of the entity or means that the
  960  qualifications or abilities have in any way been approved of.
  961         (13) The Financial Services Commission may, by rule,
  962  require that all or part of the statements or filings required
  963  under this section be submitted by electronic means and in a
  964  computer-readable format specified by the commission.
  965         Section 27. Section 626.9919, Florida Statutes, is amended
  966  to read:
  967         626.9919 Notice of change of licensee or registrant’s
  968  address or name.—Each viatical settlement provider licensee and
  969  registered life expectancy provider must provide the office at
  970  least 30 days’ advance notice of any change in the licensee’s or
  971  registrant’s name, residence address, principal business
  972  address, or mailing address.
  973         Section 28. Section 626.992, Florida Statutes, is amended
  974  to read:
  975         626.992 Use of licensed viatical settlement providers and,
  976  viatical settlement brokers, and registered life expectancy
  977  providers required.—
  978         (1) A licensed viatical settlement provider may not use a
  979  any person to perform the functions of a viatical settlement
  980  broker as defined in this act unless such person holds a
  981  current, valid life agent license and has appointed himself or
  982  herself in conformance with this chapter.
  983         (2) A viatical settlement broker may not use a any person
  984  to perform the functions of a viatical settlement provider as
  985  defined in this act unless such person holds a current, valid
  986  license as a viatical settlement provider.
  987         (3) After July 1, 2006, a person may not operate as a life
  988  expectancy provider unless such person is registered as a life
  989  expectancy provider pursuant to this act.
  990         (4) After July 1, 2006, a viatical settlement provider,
  991  viatical settlement broker, or any other person in the business
  992  of viatical settlements may not obtain life expectancies from a
  993  person who is not registered as a life expectancy provider
  994  pursuant to this act.
  995         Section 29. Section 626.9925, Florida Statutes, is amended
  996  to read:
  997         626.9925 Rules.—The commission may adopt rules to
  998  administer this act, including rules establishing standards for
  999  evaluating advertising by licensees; rules providing for the
 1000  collection of data, for disclosures to viators, and for the
 1001  reporting of life expectancies, and for the registration of life
 1002  expectancy providers; and rules defining terms used in this act
 1003  and prescribing recordkeeping requirements relating to executed
 1004  viatical settlement contracts.
 1005         Section 30. Section 626.99278, Florida Statutes, is amended
 1006  to read:
 1007         626.99278 Viatical provider anti-fraud plan.—Every licensed
 1008  viatical settlement provider and registered life expectancy
 1009  provider must adopt an anti-fraud plan and file it with the
 1010  Division of Insurance Fraud of the department. Each anti-fraud
 1011  plan shall include:
 1012         (1) A description of the procedures for detecting and
 1013  investigating possible fraudulent acts and procedures for
 1014  resolving material inconsistencies between medical records and
 1015  insurance applications.
 1016         (2) A description of the procedures for the mandatory
 1017  reporting of possible fraudulent insurance acts and prohibited
 1018  practices set forth in s. 626.99275 to the Division of Insurance
 1019  Fraud of the department.
 1020         (3) A description of the plan for anti-fraud education and
 1021  training of its underwriters or other personnel.
 1022         (4) A written description or chart outlining the
 1023  organizational arrangement of the anti-fraud personnel who are
 1024  responsible for the investigation and reporting of possible
 1025  fraudulent insurance acts and for the investigation of
 1026  unresolved material inconsistencies between medical records and
 1027  insurance applications.
 1028         (5) For viatical settlement providers, a description of the
 1029  procedures used to perform initial and continuing review of the
 1030  accuracy of life expectancies used in connection with a viatical
 1031  settlement contract or viatical settlement investment.
 1032         Section 31. Paragraph (b) of subsection (2) of section
 1033  627.062, Florida Statutes, is amended to read:
 1034         627.062 Rate standards.—
 1035         (2) As to all such classes of insurance:
 1036         (b) Upon receiving a rate filing, the office shall review
 1037  the filing to determine if a rate is excessive, inadequate, or
 1038  unfairly discriminatory. In making that determination, the
 1039  office shall, in accordance with generally accepted and
 1040  reasonable actuarial techniques, consider the following factors:
 1041         1. Past and prospective loss experience within and without
 1042  this state.
 1043         2. Past and prospective expenses.
 1044         3. The degree of competition among insurers for the risk
 1045  insured.
 1046         4. Investment income reasonably expected by the insurer,
 1047  consistent with the insurer’s investment practices, from
 1048  investable premiums anticipated in the filing, plus any other
 1049  expected income from currently invested assets representing the
 1050  amount expected on unearned premium reserves and loss reserves.
 1051  The commission may adopt rules using reasonable techniques of
 1052  actuarial science and economics to specify the manner in which
 1053  insurers calculate investment income attributable to classes of
 1054  insurance written in this state and the manner in which
 1055  investment income is used to calculate insurance rates. Such
 1056  manner must contemplate allowances for an underwriting profit
 1057  factor and full consideration of investment income which produce
 1058  a reasonable rate of return; however, investment income from
 1059  invested surplus may not be considered.
 1060         5. The reasonableness of the judgment reflected in the
 1061  filing.
 1062         6. Dividends, savings, or unabsorbed premium deposits
 1063  allowed or returned to Florida policyholders, members, or
 1064  subscribers.
 1065         7. The adequacy of loss reserves.
 1066         8. The cost of reinsurance. The office may not disapprove a
 1067  rate as excessive solely due to the insurer having obtained
 1068  catastrophic reinsurance to cover the insurer’s estimated 250
 1069  year probable maximum loss or any lower level of loss.
 1070         9. Trend factors, including trends in actual losses per
 1071  insured unit for the insurer making the filing.
 1072         10. Conflagration and catastrophe hazards, if applicable.
 1073         11. Projected hurricane losses, if applicable, which must
 1074  be estimated using a model or method, or a straight average of
 1075  model results or output ranges, independently found to be
 1076  acceptable or reliable by the Florida Commission on Hurricane
 1077  Loss Projection Methodology, and as further provided in s.
 1078  627.0628.
 1079         12. A reasonable margin for underwriting profit and
 1080  contingencies.
 1081         13. The cost of medical services, if applicable.
 1082         14. Other relevant factors that affect the frequency or
 1083  severity of claims or expenses.
 1084         Section 32. Paragraph (d) of subsection (3) of section
 1085  627.0628, Florida Statutes, is amended to read:
 1086         627.0628 Florida Commission on Hurricane Loss Projection
 1087  Methodology; public records exemption; public meetings
 1088  exemption.—
 1090         (d) With respect to a rate filing under s. 627.062, an
 1091  insurer shall employ and may not modify or adjust actuarial
 1092  methods, principles, standards, models, or output ranges found
 1093  by the commission to be accurate or reliable in determining
 1094  hurricane loss factors for use in a rate filing under s.
 1095  627.062. An insurer shall employ and may not modify or adjust
 1096  models found by the commission to be accurate or reliable in
 1097  determining probable maximum loss levels pursuant to paragraph
 1098  (b) with respect to a rate filing under s. 627.062 made more
 1099  than 180 60 days after the commission has made such findings.
 1100  This paragraph does not prohibit an insurer from using a
 1101  straight average of model results or output ranges or using
 1102  straight averages for the purposes of a rate filing under s.
 1103  627.062.
 1104         Section 33. Present subsections (2) through (4) of section
 1105  627.072, Florida Statutes, are renumbered as subsections (3)
 1106  through (5), respectively, and a new subsection (2) is added to
 1107  that section, to read:
 1108         627.072 Making and use of rates.—
 1109         (2) A retrospective rating plan may contain a provision
 1110  that allows negotiation between the employer and the insurer to
 1111  determine the retrospective rating factors used to calculate the
 1112  premium for employers that have exposure in more than one state
 1113  and an estimated annual countrywide standard premium of $1
 1114  million or more for workers’ compensation.
 1115         Section 34. Subsection (2) of section 627.281, Florida
 1116  Statutes, is amended to read:
 1117         627.281 Appeal from rating organization; workers’
 1118  compensation and employer’s liability insurance filings.—
 1119         (2) If such appeal is based upon the failure of the rating
 1120  organization to make a filing on behalf of such member or
 1121  subscriber which is based on a system of expense provisions
 1122  which differs, in accordance with the right granted in s.
 1123  627.072(3) 627.072(2), from the system of expense provisions
 1124  included in a filing made by the rating organization, the office
 1125  shall, if it grants the appeal, order the rating organization to
 1126  make the requested filing for use by the appellant. In deciding
 1127  such appeal, the office shall apply the applicable standards set
 1128  forth in ss. 627.062 and 627.072.
 1129         Section 35. Section 627.3519, Florida Statutes, is
 1130  repealed.
 1131         Section 36. Paragraph (b) of subsection (2) of section
 1132  627.4133, Florida Statutes, is amended to read:
 1133         627.4133 Notice of cancellation, nonrenewal, or renewal
 1134  premium.—
 1135         (2) With respect to any personal lines or commercial
 1136  residential property insurance policy, including, but not
 1137  limited to, any homeowner’s, mobile home owner’s, farmowner’s,
 1138  condominium association, condominium unit owner’s, apartment
 1139  building, or other policy covering a residential structure or
 1140  its contents:
 1141         (b) The insurer shall give the first-named insured written
 1142  notice of nonrenewal, cancellation, or termination at least 120
 1143  100 days before the effective date of the nonrenewal,
 1144  cancellation, or termination. However, the insurer shall give at
 1145  least 100 days’ written notice, or written notice by June 1,
 1146  whichever is earlier, for any nonrenewal, cancellation, or
 1147  termination that would be effective between June 1 and November
 1148  30. The notice must include the reason or reasons for the
 1149  nonrenewal, cancellation, or termination, except that:
 1150         1. The insurer shall give the first-named insured written
 1151  notice of nonrenewal, cancellation, or termination at least 120
 1152  days prior to the effective date of the nonrenewal,
 1153  cancellation, or termination for a first-named insured whose
 1154  residential structure has been insured by that insurer or an
 1155  affiliated insurer for at least a 5-year period immediately
 1156  prior to the date of the written notice.
 1157         1.2. If cancellation is for nonpayment of premium, at least
 1158  10 days’ written notice of cancellation accompanied by the
 1159  reason therefor must be given. As used in this subparagraph, the
 1160  term “nonpayment of premium” means failure of the named insured
 1161  to discharge when due her or his obligations for in connection
 1162  with the payment of premiums on a policy or an any installment
 1163  of such premium, whether the premium is payable directly to the
 1164  insurer or its agent or indirectly under a any premium finance
 1165  plan or extension of credit, or failure to maintain membership
 1166  in an organization if such membership is a condition precedent
 1167  to insurance coverage. The term also means the failure of a
 1168  financial institution to honor an insurance applicant’s check
 1169  after delivery to a licensed agent for payment of a premium,
 1170  even if the agent has previously delivered or transferred the
 1171  premium to the insurer. If a dishonored check represents the
 1172  initial premium payment, the contract and all contractual
 1173  obligations are void ab initio unless the nonpayment is cured
 1174  within the earlier of 5 days after actual notice by certified
 1175  mail is received by the applicant or 15 days after notice is
 1176  sent to the applicant by certified mail or registered mail., and
 1177  If the contract is void, any premium received by the insurer
 1178  from a third party must be refunded to that party in full.
 1179         2.3. If such cancellation or termination occurs during the
 1180  first 90 days the insurance is in force and the insurance is
 1181  canceled or terminated for reasons other than nonpayment of
 1182  premium, at least 20 days’ written notice of cancellation or
 1183  termination accompanied by the reason therefor must be given
 1184  unless there has been a material misstatement or
 1185  misrepresentation or failure to comply with the underwriting
 1186  requirements established by the insurer.
 1187         3. After the policy has been in effect for 90 days, the
 1188  policy may not be canceled by the insurer unless there has been
 1189  a material misstatement, a nonpayment of premium, a failure to
 1190  comply with underwriting requirements established by the insurer
 1191  within 90 days after the date of effectuation of coverage, a
 1192  substantial change in the risk covered by the policy, or the
 1193  cancellation is for all insureds under such policies for a given
 1194  class of insureds. This subparagraph does not apply to
 1195  individually rated risks having a policy term of less than 90
 1196  days.
 1197         4. The requirement for providing written notice by June 1
 1198  of any nonrenewal that would be effective between June 1 and
 1199  November 30 does not apply to the following situations, but the
 1200  insurer remains subject to the requirement to provide such
 1201  notice at least 100 days before the effective date of
 1202  nonrenewal:
 1203         a. A policy that is nonrenewed due to a revision in the
 1204  coverage for sinkhole losses and catastrophic ground cover
 1205  collapse pursuant to s. 627.706.
 1206         4.b. A policy that is nonrenewed by Citizens Property
 1207  Insurance Corporation, pursuant to s. 627.351(6), for a policy
 1208  that has been assumed by an authorized insurer offering
 1209  replacement coverage to the policyholder is exempt from the
 1210  notice requirements of paragraph (a) and this paragraph. In such
 1211  cases, the corporation must give the named insured written
 1212  notice of nonrenewal at least 45 days before the effective date
 1213  of the nonrenewal.
 1215  After the policy has been in effect for 90 days, the policy may
 1216  not be canceled by the insurer unless there has been a material
 1217  misstatement, a nonpayment of premium, a failure to comply with
 1218  underwriting requirements established by the insurer within 90
 1219  days after the date of effectuation of coverage, or a
 1220  substantial change in the risk covered by the policy or if the
 1221  cancellation is for all insureds under such policies for a given
 1222  class of insureds. This paragraph does not apply to individually
 1223  rated risks having a policy term of less than 90 days.
 1224         5. Notwithstanding any other provision of law, an insurer
 1225  may cancel or nonrenew a property insurance policy after at
 1226  least 45 days’ notice if the office finds that the early
 1227  cancellation of some or all of the insurer’s policies is
 1228  necessary to protect the best interests of the public or
 1229  policyholders and the office approves the insurer’s plan for
 1230  early cancellation or nonrenewal of some or all of its policies.
 1231  The office may base such finding upon the financial condition of
 1232  the insurer, lack of adequate reinsurance coverage for hurricane
 1233  risk, or other relevant factors. The office may condition its
 1234  finding on the consent of the insurer to be placed under
 1235  administrative supervision pursuant to s. 624.81 or to the
 1236  appointment of a receiver under chapter 631.
 1237         6. A policy covering both a home and motor vehicle may be
 1238  nonrenewed for any reason applicable to either the property or
 1239  motor vehicle insurance after providing 90 days’ notice.
 1240         Section 37. Subsection (1) of section 627.4137, Florida
 1241  Statutes, is amended to read:
 1242         627.4137 Disclosure of certain information required.—
 1243         (1) Each insurer that provides which does or may provide
 1244  liability insurance coverage to pay all or a portion of a any
 1245  claim that which might be made shall provide, within 30 days
 1246  after of the written request of the claimant, a statement, under
 1247  oath, of a corporate officer or the insurer’s claims manager, or
 1248  superintendent, or licensed company adjuster setting forth the
 1249  following information with regard to each known policy of
 1250  insurance, including excess or umbrella insurance:
 1251         (a) The name of the insurer.
 1252         (b) The name of each insured.
 1253         (c) The limits of the liability coverage.
 1254         (d) A statement of any policy or coverage defense that the
 1255  which such insurer reasonably believes is available to the such
 1256  insurer at the time of filing such statement.
 1257         (e) A copy of the policy.
 1259  In addition, the insured, or her or his insurance agent, upon
 1260  written request of the claimant or the claimant’s attorney,
 1261  shall disclose the name and coverage of each known insurer to
 1262  the claimant and shall forward such request for information as
 1263  required by this subsection to all affected insurers. The
 1264  insurer shall then supply the information required in this
 1265  subsection to the claimant within 30 days after of receipt of
 1266  such request.
 1267         Section 38. Subsection (1) of section 627.421, Florida
 1268  Statutes, is amended to read:
 1269         627.421 Delivery of policy.—
 1270         (1) Subject to the insurer’s requirement as to payment of
 1271  premium, every policy shall be mailed or delivered to the
 1272  insured or to the person entitled thereto not later than 60 days
 1273  after the effectuation of coverage. Notwithstanding any other
 1274  provision of law, an insurer may allow a policyholder of
 1275  personal lines insurance to affirmatively elect delivery of the
 1276  policy documents, including, but not limited to, policies,
 1277  endorsements, notices, or documents, by electronic means in lieu
 1278  of delivery by mail.
 1279         Section 39. Subsection (2) of section 627.43141, Florida
 1280  Statutes, is amended to read:
 1281         627.43141 Notice of change in policy terms.—
 1282         (2) A renewal policy may contain a change in policy terms.
 1283  If a renewal policy contains does contain such change, the
 1284  insurer must give the named insured written notice of the
 1285  change, which may either must be enclosed along with the written
 1286  notice of renewal premium required by ss. 627.4133 and 627.728
 1287  or sent in a separate notice that complies with the nonrenewal
 1288  mailing time requirement for that particular line of business.
 1289  The insurer must also provide a sample copy of the notice to the
 1290  insured’s insurance agent before or at the same time that notice
 1291  is given to the insured. Such notice shall be entitled “Notice
 1292  of Change in Policy Terms.”
 1293         Section 40. Section 627.6484, Florida Statutes, is amended
 1294  to read:
 1295         627.6484 Dissolution of association; termination of
 1296  enrollment; availability of other coverage.—
 1297         (1) The association shall accept applications for insurance
 1298  only until June 30, 1991, after which date no further
 1299  applications may be accepted. Upon receipt of an application for
 1300  insurance, the association shall issue coverage for an eligible
 1301  applicant. When appropriate, the administrator shall forward a
 1302  copy of the application to a market assistance plan created by
 1303  the office, which shall conduct a diligent search of the private
 1304  marketplace for a carrier willing to accept the application.
 1305         (2) Coverage for each policyholder of the association
 1306  terminates at midnight, June 30, 2014, or on the date that
 1307  health insurance coverage is effective with another insurer,
 1308  whichever occurs first, and such coverage may not be renewed.
 1309         (3) The association shall provide assistance to each
 1310  policyholder concerning how to obtain health insurance coverage.
 1311  Such assistance must include:
 1312         (a) The identification of insurers and health maintenance
 1313  organizations offering coverage in the individual market,
 1314  including coverage inside and outside of the Health Insurance
 1315  Exchange;
 1316         (b) A basic explanation of the levels of coverage
 1317  available; and
 1318         (c) Specific information relating to local and online
 1319  sources from which a policyholder may obtain detailed policy and
 1320  premium comparisons and directly obtain coverage.
 1321         (4) The association shall provide written notice to all
 1322  policyholders by September 1, 2013, which informs each
 1323  policyholder with respect to:
 1324         (a) The date that coverage with the association is
 1325  terminated and that such coverage may not be renewed.
 1326         (b) The opportunity for the policyholder to obtain
 1327  individual health insurance coverage on a guaranteed-issue
 1328  basis, regardless of policyholder’s health status, from a health
 1329  insurer or health maintenance organization that offers coverage
 1330  in the individual market, including the dates of open enrollment
 1331  periods for obtaining such coverage.
 1332         (c) How to access coverage through the Health Insurance
 1333  Exchange established for this state pursuant to the Patient
 1334  Protection and Affordable Care Act and the potential for
 1335  obtaining reduced premiums and cost-sharing provisions depending
 1336  on the policyholder’s family income level.
 1337         (d) Contact information for a representative of the
 1338  association who is able to provide additional information about
 1339  obtaining individual health insurance coverage both inside and
 1340  outside of the Health Insurance Exchange.
 1341         (5) After termination of coverage, the association must
 1342  continue to receive and process timely submitted claims in
 1343  accordance with the laws of this state.
 1344         (6) By March 15, 2015, the association shall determine the
 1345  final assessment to be collected from insurers for funding
 1346  claims and administrative expenses of the association or, if
 1347  surplus funds remain, shall determine the refund amount to be
 1348  provided to each insurer based on the same pro rata formula used
 1349  for determining each insurer’s assessment.
 1350         (7) By September 1, 2015, the board must:
 1351         (a) Complete performance of all program responsibilities.
 1352         (b) Sell or otherwise dispose of all physical assets of the
 1353  association.
 1354         (c) Make a final accounting of the finances of the
 1355  association.
 1356         (d) Transfer all records to the Office of Insurance
 1357  Regulation, which shall serve as custodian of such records.
 1358         (e) Execute a legal dissolution of the association and
 1359  report such action to the Chief Financial Officer, the Insurance
 1360  Commissioner, the President of the Senate, and the Speaker of
 1361  the House of Representatives.
 1362         (2) The office shall, after consultation with the health
 1363  insurers licensed in this state, adopt a market assistance plan
 1364  to assist in the placement of risks of Florida Comprehensive
 1365  Health Association applicants. All health insurers and health
 1366  maintenance organizations licensed in this state shall
 1367  participate in the plan.
 1368         (3) Guidelines for the use of such program shall be a part
 1369  of the association’s plan of operation. The guidelines shall
 1370  describe which types of applications are to be exempt from
 1371  submission to the market assistance plan. An exemption shall be
 1372  based upon a determination that due to a specific health
 1373  condition an applicant is ineligible for coverage in the
 1374  standard market. The guidelines shall also describe how the
 1375  market assistance plan is to be conducted, and how the periodic
 1376  reviews to depopulate the association are to be conducted.
 1377         (4) If a carrier is found through the market assistance
 1378  plan, the individual shall apply to that company. If the
 1379  individual’s application is accepted, association coverage shall
 1380  terminate upon the effective date of the coverage with the
 1381  private carrier. For the purpose of applying a preexisting
 1382  condition limitation or exclusion, any carrier accepting a risk
 1383  pursuant to this section shall provide coverage as if it began
 1384  on the date coverage was effectuated on behalf of the
 1385  association, and shall be indemnified by the association for
 1386  claims costs incurred as a result of utilizing such effective
 1387  date.
 1388         (5) The association shall establish a policyholder
 1389  assistance program by July 1, 1991, to assist in placing
 1390  eligible policyholders in other coverage programs, including
 1391  Medicare and Medicaid.
 1392         Section 41. Section 627.64872, Florida Statutes, is
 1393  repealed.
 1394         Section 42. Effective October 1, 2015, sections 627.648,
 1395  627.6482, 627.6484, 627.6486, 627.6488, 627.6489, 627.649,
 1396  627.6492, 627.6494, 627.6496, 627.6498, and 627.6499, Florida
 1397  Statutes, are repealed.
 1398         Section 43. Subsection (7) of section 627.701, Florida
 1399  Statutes, is amended to read:
 1400         627.701 Liability of insureds; coinsurance; deductibles.—
 1401         (7) Before Prior to issuing a personal lines residential
 1402  property insurance policy on or after January 1, 2014 April 1,
 1403  1997, or before prior to the first renewal of a residential
 1404  property insurance policy on or after January 1, 2014 April 1,
 1405  1997, the insurer must, at a minimum, offer a deductible equal
 1406  to $750 and a deductible equal to 1 percent of the policy
 1407  dwelling limits if such amount is not less than $750, $500
 1408  applicable to losses from perils other than hurricane. Beginning
 1409  July 1, 2018, and every 5 years thereafter, the office shall
 1410  calculate and publish an adjustment to the $750 deductible based
 1411  on the average percentage change in the Consumer Price Index for
 1412  All Urban Consumers, U.S. City Average, all items, compiled by
 1413  the United States Department of Labor for the immediately
 1414  preceding 5 calendar years. The adjustment to the $750
 1415  deductible shall be rounded to the nearest $50 increment and
 1416  take effect on the January 1 following the publication of the
 1417  adjustment by the office. The first initial adjusted deductible
 1418  shall take effect upon the renewal or issuance of policies on or
 1419  after January 1, 2019 The insurer must provide the policyholder
 1420  with notice of the availability of the deductible specified in
 1421  this subsection in a form approved by the office at least once
 1422  every 3 years. The failure to provide such notice constitutes a
 1423  violation of this code but does not affect the coverage provided
 1424  under the policy. An insurer may require a higher deductible
 1425  only as part of a deductible program lawfully in effect on June
 1426  1, 1996, or as part of a similar deductible program.
 1427         Section 44. Paragraph (b) of subsection (4) of section
 1428  627.7015, Florida Statutes, is amended to read:
 1429         627.7015 Alternative procedure for resolution of disputed
 1430  property insurance claims.—
 1431         (4) The department shall adopt by rule a property insurance
 1432  mediation program to be administered by the department or its
 1433  designee. The department may also adopt special rules which are
 1434  applicable in cases of an emergency within the state. The rules
 1435  shall be modeled after practices and procedures set forth in
 1436  mediation rules of procedure adopted by the Supreme Court. The
 1437  rules shall provide for:
 1438         (b) Qualifications, denial of application, suspension,
 1439  revocation, and other penalties for of mediators as provided in
 1440  s. 627.745 and in the Florida Rules of Certified and Court
 1441  Appointed Mediators, and for such other individuals as are
 1442  qualified by education, training, or experience as the
 1443  department determines to be appropriate.
 1444         Section 45. Section 627.70151, Florida Statutes, is created
 1445  to read:
 1446         627.70151 Appraisal; conflicts of interest.—An insurer that
 1447  offers residential coverage, as defined in s. 627.4025, or a
 1448  policyholder that uses an appraisal clause in the property
 1449  insurance contract to establish a process of estimating or
 1450  evaluating the amount of the loss through the use of an
 1451  impartial umpire may challenge the umpire’s impartiality and
 1452  disqualify the proposed umpire only if:
 1453         (1) A familial relationship within the third degree exists
 1454  between the umpire and any party or a representative of any
 1455  party;
 1456         (2) The umpire has previously represented any party or a
 1457  representative of any party in a professional capacity in the
 1458  same or a substantially related matter;
 1459         (3) The umpire has represented another person in a
 1460  professional capacity on the same or a substantially related
 1461  matter, which includes the claim, same property, or an adjacent
 1462  property and that other person’s interests are materially
 1463  adverse to the interests of any party; or
 1464         (4) The umpire has worked as an employer or employee of any
 1465  party within the preceding 5 years.
 1466         Section 46. Paragraph (c) of subsection (2) of section
 1467  627.706, Florida Statutes, is amended to read:
 1468         627.706 Sinkhole insurance; catastrophic ground cover
 1469  collapse; definitions.—
 1470         (2) As used in ss. 627.706-627.7074, and as used in
 1471  connection with any policy providing coverage for a catastrophic
 1472  ground cover collapse or for sinkhole losses, the term:
 1473         (c) “Neutral evaluator” means a professional engineer or a
 1474  professional geologist who has completed a course of study in
 1475  alternative dispute resolution designed or approved by the
 1476  department for use in the neutral evaluation process, and who is
 1477  determined by the department to be fair and impartial, and who
 1478  is not otherwise ineligible for certification as provided in s.
 1479  627.7074.
 1480         Section 47. Subsection (1) of section 627.7074, Florida
 1481  Statutes, is amended to read:
 1482         627.7074 Alternative procedure for resolution of disputed
 1483  sinkhole insurance claims.—
 1484         (1) The department shall:
 1485         (a) Certify and maintain a list of persons who are neutral
 1486  evaluators.
 1487         (b) Adopt rules for certifying, denying certification,
 1488  suspending certification, and revoking certification as a
 1489  neutral evaluator, in keeping with qualifications specified in
 1490  this section and ss. 627.706 and 627.745(4).
 1491         (c)(b) Prepare a consumer information pamphlet for
 1492  distribution by insurers to policyholders which clearly
 1493  describes the neutral evaluation process and includes
 1494  information necessary for the policyholder to request a neutral
 1495  evaluation.
 1496         Section 48. Paragraph (a) of subsection (5) of section
 1497  627.736, Florida Statutes, is amended to read:
 1498         627.736 Required personal injury protection benefits;
 1499  exclusions; priority; claims.—
 1501         (a) A physician, hospital, clinic, or other person or
 1502  institution lawfully rendering treatment to an injured person
 1503  for a bodily injury covered by personal injury protection
 1504  insurance may charge the insurer and injured party only a
 1505  reasonable amount pursuant to this section for the services and
 1506  supplies rendered, and the insurer providing such coverage may
 1507  pay for such charges directly to such person or institution
 1508  lawfully rendering such treatment if the insured receiving such
 1509  treatment or his or her guardian has countersigned the properly
 1510  completed invoice, bill, or claim form approved by the office
 1511  upon which such charges are to be paid for as having actually
 1512  been rendered, to the best knowledge of the insured or his or
 1513  her guardian. However, such a charge may not exceed the amount
 1514  the person or institution customarily charges for like services
 1515  or supplies. In determining whether a charge for a particular
 1516  service, treatment, or otherwise is reasonable, consideration
 1517  may be given to evidence of usual and customary charges and
 1518  payments accepted by the provider involved in the dispute,
 1519  reimbursement levels in the community and various federal and
 1520  state medical fee schedules applicable to motor vehicle and
 1521  other insurance coverages, and other information relevant to the
 1522  reasonableness of the reimbursement for the service, treatment,
 1523  or supply.
 1524         1. The insurer may limit reimbursement to 80 percent of the
 1525  following schedule of maximum charges:
 1526         a. For emergency transport and treatment by providers
 1527  licensed under chapter 401, 200 percent of Medicare.
 1528         b. For emergency services and care provided by a hospital
 1529  licensed under chapter 395, 75 percent of the hospital’s usual
 1530  and customary charges.
 1531         c. For emergency services and care as defined by s. 395.002
 1532  provided in a facility licensed under chapter 395 rendered by a
 1533  physician or dentist, and related hospital inpatient services
 1534  rendered by a physician or dentist, the usual and customary
 1535  charges in the community.
 1536         d. For hospital inpatient services, other than emergency
 1537  services and care, 200 percent of the Medicare Part A
 1538  prospective payment applicable to the specific hospital
 1539  providing the inpatient services.
 1540         e. For hospital outpatient services, other than emergency
 1541  services and care, 200 percent of the Medicare Part A Ambulatory
 1542  Payment Classification for the specific hospital providing the
 1543  outpatient services.
 1544         f. For all other medical services, supplies, and care, 200
 1545  percent of the allowable amount under:
 1546         (I) The participating physicians fee schedule of Medicare
 1547  Part B, except as provided in sub-sub-subparagraphs (II) and
 1548  (III).
 1549         (II) Medicare Part B, in the case of services, supplies,
 1550  and care provided by ambulatory surgical centers and clinical
 1551  laboratories.
 1552         (III) The Durable Medical Equipment Prosthetics/Orthotics
 1553  and Supplies fee schedule of Medicare Part B, in the case of
 1554  durable medical equipment.
 1556  However, if such services, supplies, or care is not reimbursable
 1557  under Medicare Part B, as provided in this sub-subparagraph, the
 1558  insurer may limit reimbursement to 80 percent of the maximum
 1559  reimbursable allowance under workers’ compensation, as
 1560  determined under s. 440.13 and rules adopted thereunder which
 1561  are in effect at the time such services, supplies, or care is
 1562  provided. Services, supplies, or care that is not reimbursable
 1563  under Medicare or workers’ compensation is not required to be
 1564  reimbursed by the insurer.
 1565         2. For purposes of subparagraph 1., the applicable fee
 1566  schedule or payment limitation under Medicare is the fee
 1567  schedule or payment limitation in effect on March 1 of the year
 1568  in which the services, supplies, or care is rendered and for the
 1569  area in which such services, supplies, or care is rendered, and
 1570  the applicable fee schedule or payment limitation applies from
 1571  March 1 until the last day of the following February throughout
 1572  the remainder of that year, notwithstanding any subsequent
 1573  change made to the fee schedule or payment limitation, except
 1574  that it may not be less than the allowable amount under the
 1575  applicable schedule of Medicare Part B for 2007 for medical
 1576  services, supplies, and care subject to Medicare Part B.
 1577         3. Subparagraph 1. does not allow the insurer to apply any
 1578  limitation on the number of treatments or other utilization
 1579  limits that apply under Medicare or workers’ compensation. An
 1580  insurer that applies the allowable payment limitations of
 1581  subparagraph 1. must reimburse a provider who lawfully provided
 1582  care or treatment under the scope of his or her license,
 1583  regardless of whether such provider is entitled to reimbursement
 1584  under Medicare due to restrictions or limitations on the types
 1585  or discipline of health care providers who may be reimbursed for
 1586  particular procedures or procedure codes. However, subparagraph
 1587  1. does not prohibit an insurer from using the Medicare coding
 1588  policies and payment methodologies of the federal Centers for
 1589  Medicare and Medicaid Services, including applicable modifiers,
 1590  to determine the appropriate amount of reimbursement for medical
 1591  services, supplies, or care if the coding policy or payment
 1592  methodology does not constitute a utilization limit.
 1593         4. If an insurer limits payment as authorized by
 1594  subparagraph 1., the person providing such services, supplies,
 1595  or care may not bill or attempt to collect from the insured any
 1596  amount in excess of such limits, except for amounts that are not
 1597  covered by the insured’s personal injury protection coverage due
 1598  to the coinsurance amount or maximum policy limits.
 1599         5. Effective July 1, 2012, an insurer may limit payment as
 1600  authorized by this paragraph only if the insurance policy
 1601  includes a notice at the time of issuance or renewal that the
 1602  insurer may limit payment pursuant to the schedule of charges
 1603  specified in this paragraph. A policy form approved by the
 1604  office satisfies this requirement. If a provider submits a
 1605  charge for an amount less than the amount allowed under
 1606  subparagraph 1., the insurer may pay the amount of the charge
 1607  submitted.
 1608         Section 49. Subsection (3) of section 627.745, Florida
 1609  Statutes, is amended, present subsections (4) and (5) of that
 1610  section are renumbered as subsections (5) and (6), respectively,
 1611  and a new subsection (4) is added to that section, to read:
 1612         627.745 Mediation of claims.—
 1613         (3)(a) The department shall approve mediators to conduct
 1614  mediations pursuant to this section. All mediators must file an
 1615  application under oath for approval as a mediator.
 1616         (b) To qualify for approval as a mediator, an individual a
 1617  person must meet one of the following qualifications:
 1618         1. Possess an active certification as a Florida Circuit
 1619  Court Mediator. A Florida Circuit Court Mediator in a lapsed,
 1620  suspended, or decertified status is not eligible to participate
 1621  in the mediation program a masters or doctorate degree in
 1622  psychology, counseling, business, accounting, or economics, be a
 1623  member of The Florida Bar, be licensed as a certified public
 1624  accountant, or demonstrate that the applicant for approval has
 1625  been actively engaged as a qualified mediator for at least 4
 1626  years prior to July 1, 1990.
 1627         2. Be an approved department mediator as of July 1, 2013,
 1628  and have conducted at least one mediation on behalf of the
 1629  department within 4 years immediately preceding that the date
 1630  the application for approval is filed with the department, have
 1631  completed a minimum of a 40-hour training program approved by
 1632  the department and successfully passed a final examination
 1633  included in the training program and approved by the department.
 1634  The training program shall include and address all of the
 1635  following:
 1636         a. Mediation theory.
 1637         b. Mediation process and techniques.
 1638         c. Standards of conduct for mediators.
 1639         d. Conflict management and intervention skills.
 1640         e. Insurance nomenclature.
 1641         (4) The department shall deny an application, or suspend or
 1642  revoke its approval of a mediator or its certification of a
 1643  neutral evaluator to serve in such capacity, if it finds that
 1644  any of the following grounds exist:
 1645         (a) Lack of one or more of the qualifications specified in
 1646  this section for approval or certification.
 1647         (b) Material misstatement, misrepresentation, or fraud in
 1648  obtaining or attempting to obtain the approval or certification.
 1649         (c) Demonstrated lack of fitness or trustworthiness to act
 1650  as a mediator or neutral evaluator.
 1651         (d) Fraudulent or dishonest practices in the conduct of
 1652  mediation or neutral evaluation or in the conduct of business in
 1653  the financial services industry.
 1654         (e) Violation of any provision of this code, a lawful order
 1655  or rule of the department, the Florida Rules for Certified and
 1656  Court-Appointed Mediators, or aiding, instructing, or
 1657  encouraging another party in committing such a violation.
 1659  The department may adopt rules to administer this subsection.
 1660         Section 50. Subsection (4) of section 627.841, Florida
 1661  Statutes, is amended to read:
 1662         627.841 Delinquency, collection, cancellation, and payment
 1663  check return charge charges; attorney attorney’s fees.—
 1664         (4) In the event that a payment is made to a premium
 1665  finance company by debit, credit, electronic funds transfer,
 1666  check, or draft and such payment the instrument is returned,
 1667  declined, or cannot be processed due to because of insufficient
 1668  funds to pay it, the premium finance company may, if the premium
 1669  finance agreement so provides, impose a return payment charge of
 1670  $15.
 1671         Section 51. Paragraph (b) of subsection (1) of section
 1672  627.952, Florida Statutes, is amended to read:
 1673         627.952 Risk retention and purchasing group agents.—
 1674         (1) Any person offering, soliciting, selling, purchasing,
 1675  administering, or otherwise servicing insurance contracts,
 1676  certificates, or agreements for any purchasing group or risk
 1677  retention group to a any resident of this state, either directly
 1678  or indirectly, by the use of mail, advertising, or other means
 1679  of communication, shall obtain a license and appointment to act
 1680  as a resident general lines agent, if a resident of this state,
 1681  or a nonresident general lines agent if not a resident. Any such
 1682  person shall be subject to all requirements of the Florida
 1683  Insurance Code.
 1684         (b) A Any person required to be licensed and appointed
 1685  under this subsection, in order to place business through
 1686  Florida eligible surplus lines carriers, must, if a resident of
 1687  this state, be licensed and appointed as a surplus lines agent.
 1688  If not a resident of this state, such person must be licensed
 1689  and appointed as a nonresident surplus lines agent in this her
 1690  or his state of residence and file and maintain a fidelity bond
 1691  in favor of the people of the State of Florida executed by a
 1692  surety company admitted in this state and payable to the State
 1693  of Florida; however, such nonresident is limited to the
 1694  provision of insurance for purchasing groups. The bond must be
 1695  continuous in form and in the amount of not less than $50,000,
 1696  aggregate liability. The bond must remain in force and effect
 1697  until the surety is released from liability by the department or
 1698  until the bond is canceled by the surety. The surety may cancel
 1699  the bond and be released from further liability upon 30 days’
 1700  prior written notice to the department. The cancellation does
 1701  not affect any liability incurred or accrued before the
 1702  termination of the 30-day period. Upon receipt of a notice of
 1703  cancellation, the department shall immediately notify the agent.
 1704         Section 52. Subsection (6) of section 627.971, Florida
 1705  Statutes, is amended to read:
 1706         627.971 Definitions.—As used in this part:
 1707         (6) “Financial guaranty insurance corporation” means a
 1708  stock or mutual insurer licensed to transact financial guaranty
 1709  insurance business in this state.
 1710         Section 53. Subsection (1) of section 627.972, Florida
 1711  Statutes, is amended to read:
 1712         627.972 Organization; financial requirements.—
 1713         (1) A financial guaranty insurance corporation must be
 1714  organized and licensed in the manner prescribed in this code for
 1715  stock or mutual property and casualty insurers except that:
 1716         (a) A corporation organized to transact financial guaranty
 1717  insurance may, subject to the provisions of this code, be
 1718  licensed to transact:
 1719         1. Residual value insurance, as defined by s. 624.6081;
 1720         2. Surety insurance, as defined by s. 624.606;
 1721         3. Credit insurance, as defined by s. 624.605(1)(i); and
 1722         4. Mortgage guaranty insurance as defined in s. 635.011,
 1723  provided that the provisions of chapter 635 are met.
 1724         (b)1. Before Prior to the issuance of a license, a
 1725  corporation must submit to the office for approval, a plan of
 1726  operation detailing:
 1727         a. The types and projected diversification of guaranties to
 1728  be issued;
 1729         b. The underwriting procedures to be followed;
 1730         c. The managerial oversight methods;
 1731         d. The investment policies; and
 1732         e. Any Other matters prescribed by the office;
 1733         2. An insurer which is writing only the types of insurance
 1734  allowed under this part on July 1, 1988, and otherwise meets the
 1735  requirements of this part, is exempt from the requirements of
 1736  this paragraph.
 1737         (c) An insurer transacting financial guaranty insurance is
 1738  subject to all provisions of this code that are applicable to
 1739  property and casualty insurers to the extent that those
 1740  provisions are not inconsistent with this part.
 1741         (d) The investments of an insurer transacting financial
 1742  guaranty insurance in an any entity insured by the corporation
 1743  may not exceed 2 percent of its admitted assets as of the end of
 1744  the prior calendar year.
 1745         (e) An insurer transacting financial guaranty insurance may
 1746  only assume those lines of insurance for which it is licensed to
 1747  write direct business.
 1748         Section 54. Subsections (8), (9), and (13) of section
 1749  628.901, Florida Statutes, are amended to read:
 1750         628.901 Definitions.—As used in this part, the term:
 1751         (8) “Industrial insured” means an insured that:
 1752         (a) Has gross assets in excess of $50 million;
 1753         (b) Procures insurance through the use of a full-time
 1754  employee of the insured who acts as an insurance manager or
 1755  buyer or through the services of a person licensed as a property
 1756  and casualty insurance agent, broker, or consultant in such
 1757  person’s state of domicile;
 1758         (c) Has at least 100 full-time employees; and
 1759         (d) Pays annual premiums of at least $200,000 for each line
 1760  of insurance purchased from the industrial insured captive
 1761  insurance company insurer or at least $75,000 for any line of
 1762  coverage in excess of at least $25 million in the annual
 1763  aggregate. The purchase of umbrella or general liability
 1764  coverage in excess of $25 million in the annual aggregate shall
 1765  be deemed to be the purchase of a single line of insurance.
 1766         (9) “Industrial insured captive insurance company” means a
 1767  captive insurance company that provides insurance only to the
 1768  industrial insureds that are its stockholders or members, and
 1769  affiliates thereof, or to the stockholders, and affiliates
 1770  thereof, of its parent corporation. An industrial insured
 1771  captive insurance company can also provide reinsurance to
 1772  insurers only on risks written by such insurers for the
 1773  industrial insureds that are the stockholders or members, and
 1774  affiliates thereof, of the industrial insured captive insurance
 1775  company insurer, or the stockholders, and affiliates thereof, of
 1776  the parent corporation of the industrial insured captive
 1777  insurance company insurer.
 1778         (13) “Qualifying reinsurer parent company” means a
 1779  reinsurer that which currently holds a certificate of authority,
 1780  letter of eligibility or is an accredited or trusteed under s.
 1781  624.610(3)(c) a satisfactory non-approved reinsurer in this
 1782  state possessing a consolidated GAAP net worth of at least $500
 1783  million and a consolidated debt to total capital ratio of not
 1784  greater than 0.50.
 1785         Section 55. Subsections (1), (2), (4), and (5) of section
 1786  628.905, Florida Statutes, are amended to read:
 1787         628.905 Licensing; authority.—
 1788         (1) A captive insurance company insurer, if permitted by
 1789  its charter or articles of incorporation, may apply to the
 1790  office for a license to do any and all insurance authorized
 1791  under the insurance code, other than workers’ compensation and
 1792  employer’s liability, life, health, personal motor vehicle, and
 1793  personal residential property insurance, except that:
 1794         (a) A pure captive insurance company may not insure any
 1795  risks other than those of its parent, affiliated companies,
 1796  controlled unaffiliated businesses, or a combination thereof.
 1797         (b) An industrial insured captive insurance company may not
 1798  insure any risks other than those of the industrial insureds
 1799  that comprise the industrial insured group and their affiliated
 1800  companies, or its stockholders or members, and affiliates
 1801  thereof, of the industrial insured captive, or the stockholders
 1802  or affiliates of the parent corporation of the industrial
 1803  insured captive insurance company.
 1804         (c) A special purpose captive insurance company may insure
 1805  only the risks of its parent.
 1806         (d) A captive insurance company may not accept or cede
 1807  reinsurance except as provided in this part.
 1808         (e) An industrial insured captive insurance company with
 1809  unencumbered capital and surplus of at least $20 million may be
 1810  licensed to provide workers’ compensation and employer’s
 1811  liability insurance in excess of $25 million in the annual
 1812  aggregate. An industrial insured captive insurance company must
 1813  maintain unencumbered capital and surplus of at least $20
 1814  million to continue to write excess workers’ compensation
 1815  insurance.
 1816         (2) To conduct insurance business in this state, a captive
 1817  insurance company insurer must:
 1818         (a) Obtain from the office a license authorizing it to
 1819  conduct insurance business in this state;
 1820         (b) Hold at least one board of directors’ meeting each year
 1821  in this state;
 1822         (c) Maintain its principal place of business in this state;
 1823  and
 1824         (d) Appoint a resident registered agent to accept service
 1825  of process and to otherwise act on its behalf in this state. In
 1826  the case of a captive insurance company formed as a corporation
 1827  or a nonprofit corporation, if the registered agent cannot with
 1828  reasonable diligence be found at the registered office of the
 1829  captive insurance company, the Chief Financial Officer of this
 1830  state must be an agent of the captive insurance company upon
 1831  whom any process, notice, or demand may be served.
 1832         (4) A captive insurance company or captive reinsurance
 1833  company must pay to the office a nonrefundable fee of $1,500 for
 1834  processing its application for license.
 1835         (a) A captive insurance company or captive reinsurance
 1836  company must also pay an annual renewal fee of $1,000.
 1837         (b) The office may charge a fee of $5 for a any document
 1838  requiring certification of authenticity or the signature of the
 1839  office commissioner or his or her designee.
 1840         (5) If the office commissioner is satisfied that the
 1841  documents and statements filed by the captive insurance company
 1842  comply with this chapter, the office commissioner may grant a
 1843  license authorizing the company to conduct insurance business in
 1844  this state until the next succeeding March 1, at which time the
 1845  license may be renewed.
 1846         Section 56. Subsection (1) of section 628.907, Florida
 1847  Statutes, is amended to read:
 1848         628.907 Minimum capital and net assets requirements;
 1849  restriction on payment of dividends.—
 1850         (1) A captive insurance company insurer may not be issued a
 1851  license unless it possesses and thereafter maintains unimpaired
 1852  paid-in capital of:
 1853         (a) In the case of a pure captive insurance company, at
 1854  least $100,000.
 1855         (b) In the case of an industrial insured captive insurance
 1856  company incorporated as a stock insurer, at least $200,000.
 1857         (c) In the case of a special purpose captive insurance
 1858  company, an amount determined by the office after giving due
 1859  consideration to the company’s business plan, feasibility study,
 1860  and pro forma financial statements and projections, including
 1861  the nature of the risks to be insured.
 1862         Section 57. Section 628.909, Florida Statutes, is amended
 1863  to read:
 1864         628.909 Applicability of other laws.—
 1865         (1) The Florida Insurance Code does not apply to captive
 1866  insurance companies insurers or industrial insured captive
 1867  insurance companies insurers except as provided in this part and
 1868  subsections (2) and (3).
 1869         (2) The following provisions of the Florida Insurance Code
 1870  apply to captive insurance companies insurers who are not
 1871  industrial insured captive insurance companies insurers to the
 1872  extent that such provisions are not inconsistent with this part:
 1873         (a) Chapter 624, except for ss. 624.407, 624.408, 624.4085,
 1874  624.40851, 624.4095, 624.411, 624.425, and 624.426.
 1875         (b) Chapter 625, part II.
 1876         (c) Chapter 626, part IX.
 1877         (d) Sections 627.730-627.7405, when no-fault coverage is
 1878  provided.
 1879         (e) Chapter 628.
 1880         (3) The following provisions of the Florida Insurance Code
 1881  apply to industrial insured captive insurance companies insurers
 1882  to the extent that such provisions are not inconsistent with
 1883  this part:
 1884         (a) Chapter 624, except for ss. 624.407, 624.408, 624.4085,
 1885  624.40851, 624.4095, 624.411, 624.425, 624.426, and 624.609(1).
 1886         (b) Chapter 625, part II, if the industrial insured captive
 1887  insurance companies insurer is incorporated in this state.
 1888         (c) Chapter 626, part IX.
 1889         (d) Sections 627.730-627.7405 when no-fault coverage is
 1890  provided.
 1891         (e) Chapter 628, except for ss. 628.341, 628.351, and
 1892  628.6018.
 1893         Section 58. Subsection (2) of section 628.9142, Florida
 1894  Statutes, is amended to read:
 1895         628.9142 Reinsurance; effect on reserves.—
 1896         (2) A captive insurance company may take credit for
 1897  reserves on risks or portions of risks ceded to authorized
 1898  insurers or reinsurers and unauthorized insurers or reinsurers
 1899  complying with s. 624.610. A captive insurance company insurer
 1900  may not take credit for reserves on risks or portions of risks
 1901  ceded to an unauthorized insurer or reinsurer if the insurer or
 1902  reinsurer is not in compliance with s. 624.610.
 1903         Section 59. Section 628.915, Florida Statutes, is amended
 1904  to read:
 1905         628.915 Exemption from compulsory association.—
 1906         (1) A No captive insurance company may not insurer shall be
 1907  permitted to join or contribute financially to a any joint
 1908  underwriting association or guaranty fund in this state, and a ;
 1909  nor shall any captive insurance company insurer, its insured, or
 1910  its parent or any affiliated company may not receive any benefit
 1911  from any such joint underwriting association or guaranty fund
 1912  for claims arising out of the operations of such captive
 1913  insurer.
 1914         (2) An No industrial insured captive insurance company may
 1915  not insurer shall be permitted to join or contribute financially
 1916  to any joint underwriting association or guaranty fund in this
 1917  state; nor shall any industrial insured captive insurance
 1918  company insurer, its industrial insured, or its parent or any
 1919  affiliated company receive any benefit from any such joint
 1920  underwriting association or guaranty fund for claims arising out
 1921  of the operations of such industrial insured captive insurance
 1922  company insurer.
 1923         Section 60. Section 628.917, Florida Statutes, is amended
 1924  to read:
 1925         628.917 Insolvency and liquidation.—In the event that a
 1926  captive insurance company insurer is insolvent as defined in
 1927  chapter 631, the office shall liquidate the captive insurance
 1928  company insurer pursuant to the provisions of part I of chapter
 1929  631.; except that The office may not shall make no attempt to
 1930  rehabilitate such insurer.
 1931         Section 61. Section 628.919, Florida Statutes, is amended
 1932  to read:
 1933         628.919 Standards to ensure risk management control by
 1934  parent company.—A pure captive insurance company shall submit to
 1935  the office for approval The Financial Services Commission shall
 1936  adopt rules establishing standards to ensure that a parent or
 1937  affiliated company is able to exercise control of the risk
 1938  management function of any controlled unaffiliated business to
 1939  be insured by the pure captive insurance company.
 1940         Section 62. Subsection (8) of section 634.406, Florida
 1941  Statutes, is renumbered as subsection (7), and present
 1942  subsections (6) and (7) of that section are amended, to read:
 1943         634.406 Financial requirements.—
 1944         (6) An association that which holds a license under this
 1945  part and which does not hold any other license under this
 1946  chapter may allow its premiums for service warranties written
 1947  under this part to exceed the ratio to net assets limitations of
 1948  this section if the association meets all of the following:
 1949         (a) Maintains net assets of at least $750,000.
 1950         (b) Utilizes a contractual liability insurance policy
 1951  approved by the office which:
 1952         1. Reimburses the service warranty association for 100
 1953  percent of its claims liability and is issued by an insurer that
 1954  maintains a policyholder surplus of at least $100 million; or
 1955         2. Complies with the requirements of subsection (3) and is
 1956  issued by an insurer that maintains a policyholder surplus of at
 1957  least $200 million.
 1958         (c) The insurer issuing the contractual liability insurance
 1959  policy:
 1960         1. Maintains a policyholder surplus of at least $100
 1961  million.
 1962         1.2. Is rated “A” or higher by A.M. Best Company or an
 1963  equivalent rating by another national rating service acceptable
 1964  to the office.
 1965         3. Is in no way affiliated with the warranty association.
 1966         2.4. In conjunction with the warranty association’s filing
 1967  of the quarterly and annual reports, provides, on a form
 1968  prescribed by the commission, a statement certifying the gross
 1969  written premiums in force reported by the warranty association
 1970  and a statement that all of the warranty association’s gross
 1971  written premium in force is covered under the contractual
 1972  liability policy, whether or not it has been reported.
 1973         (7) A contractual liability policy must insure 100 percent
 1974  of an association’s claims exposure under all of the
 1975  association’s service warranty contracts, wherever written,
 1976  unless all of the following are satisfied:
 1977         (a) The contractual liability policy contains a clause that
 1978  specifically names the service warranty contract holders as sole
 1979  beneficiaries of the contractual liability policy and claims are
 1980  paid directly to the person making a claim under the contract;
 1981         (b) The contractual liability policy meets all other
 1982  requirements of this part, including subsection (3) of this
 1983  section, which are not inconsistent with this subsection;
 1984         (c) The association has been in existence for at least 5
 1985  years or the association is a wholly owned subsidiary of a
 1986  corporation that has been in existence and has been licensed as
 1987  a service warranty association in the state for at least 5
 1988  years, and:
 1989         1. Is listed and traded on a recognized stock exchange; is
 1990  listed in NASDAQ (National Association of Security Dealers
 1991  Automated Quotation system) and publicly traded in the over-the
 1992  counter securities market; is required to file either of Form
 1993  10-K, Form 100, or Form 20-G with the United States Securities
 1994  and Exchange Commission; or has American Depository Receipts
 1995  listed on a recognized stock exchange and publicly traded or is
 1996  the wholly owned subsidiary of a corporation that is listed and
 1997  traded on a recognized stock exchange; is listed in NASDAQ
 1998  (National Association of Security Dealers Automated Quotation
 1999  system) and publicly traded in the over-the-counter securities
 2000  market; is required to file Form 10-K, Form 100, or Form 20-G
 2001  with the United States Securities and Exchange Commission; or
 2002  has American Depository Receipts listed on a recognized stock
 2003  exchange and is publicly traded;
 2004         2. Maintains outstanding debt obligations, if any, rated in
 2005  the top four rating categories by a recognized rating service;
 2006         3. Has and maintains at all times a minimum net worth of
 2007  not less than $10 million as evidenced by audited financial
 2008  statements prepared by an independent certified public
 2009  accountant in accordance with generally accepted accounting
 2010  principles and submitted to the office annually; and
 2011         4. Is authorized to do business in this state; and
 2012         (d) The insurer issuing the contractual liability policy:
 2013         1. Maintains and has maintained for the preceding 5 years,
 2014  policyholder surplus of at least $100 million and is rated “A”
 2015  or higher by A.M. Best Company or has an equivalent rating by
 2016  another rating company acceptable to the office;
 2017         2. Holds a certificate of authority to do business in this
 2018  state and is approved to write this type of coverage; and
 2019         3. Acknowledges to the office quarterly that it insures all
 2020  of the association’s claims exposure under contracts delivered
 2021  in this state.
 2023  If all the preceding conditions are satisfied, then the scope of
 2024  coverage under a contractual liability policy shall not be
 2025  required to exceed an association’s claims exposure under
 2026  service warranty contracts delivered in this state.
 2027         Section 63. Except as otherwise expressly provided in this
 2028  act, this act shall take effect upon becoming a law.
 2030  ================= T I T L E  A M E N D M E N T ================
 2031         And the title is amended as follows:
 2032         Delete everything before the enacting clause
 2033  and insert:
 2034                        A bill to be entitled                      
 2035         An act relating to insurance; amending s. 316.646,
 2036         F.S.; authorizing a uniform motor vehicle proof-of
 2037         insurance card to be in an electronic format;
 2038         providing construction with respect to the parameters
 2039         of a person’s consent to access information on an
 2040         electronic device presented to provide proof of
 2041         insurance; providing immunity from liability to a law
 2042         enforcement officer for damage to an electronic device
 2043         presented to provide proof of insurance; authorizing
 2044         the Department of Highway Safety and Motor Vehicles to
 2045         adopt rules; amending s. 320.02, F.S.; authorizing
 2046         insurers to furnish uniform proof-of-purchase cards in
 2047         an electronic format for use by insureds to prove the
 2048         purchase of required insurance coverage when
 2049         registering a motor vehicle; amending s. 554.1021,
 2050         F.S.; defining the term “authorized inspection
 2051         agency”; amending s. 554.107, F.S.; requiring the
 2052         chief inspector of the state boiler inspection program
 2053         to issue a certificate of competency as a special
 2054         inspector to certain individuals; specifying how long
 2055         such certificate remains in effect; amending s.
 2056         554.109, F.S.; authorizing specified insurers to
 2057         contract with an authorized inspection agency for
 2058         boiler inspections; requiring such insurers to
 2059         annually report the identity of contracted authorized
 2060         inspection agencies to the Department of Financial
 2061         Services; amending s. 624.413, F.S.; revising a
 2062         specified time period applicable to a certified
 2063         examination that must be filed by a foreign or alien
 2064         insurer applying for a certificate of authority;
 2065         amending s. 626.0428, F.S.; requiring each insurance
 2066         agency to be under the control of an agent licensed to
 2067         transact certain lines of insurance; authorizing an
 2068         agent to be in charge of more than one branch office
 2069         under certain circumstances; providing requirements
 2070         relating to the designation of an agent in charge;
 2071         prohibiting an insurance agency from conducting
 2072         insurance business at a location without a designated
 2073         agent in charge; providing a definition for the term
 2074         “agent in charge”; providing that the designated agent
 2075         in charge is liable for certain acts of misconduct;
 2076         providing grounds for the Department of Financial
 2077         Services to order operations to cease at certain
 2078         insurance agency locations until an agent in charge is
 2079         properly designated; amending s. 626.112, F.S.;
 2080         providing licensure exemptions that allow specified
 2081         individuals or entities to conduct insurance business
 2082         at specified locations under certain circumstances;
 2083         revising licensure requirements and penalties with
 2084         respect to registered insurance agencies; providing
 2085         that the registration of an approved registered
 2086         insurance agency automatically converts to an
 2087         insurance agency license on a specified date; amending
 2088         s. 626.172, F.S.; revising requirements relating to
 2089         applications for insurance agency licenses; conforming
 2090         provisions to changes made by the act; amending s.
 2091         626.321, F.S.; providing that a limited license to
 2092         offer motor vehicle rental insurance issued to a
 2093         business that rents or leases motor vehicles
 2094         encompasses the employees of such business; amending
 2095         s. 626.382, F.S.; providing that an insurance agency
 2096         license continues in force until canceled, suspended,
 2097         revoked, or terminated; amending s. 626.601, F.S.;
 2098         revising terminology relating to investigations
 2099         conducted by the Department of Financial Services and
 2100         the Office of Insurance Regulation with respect to
 2101         individuals and entities involved in the insurance
 2102         industry; repealing s. 626.747, F.S., relating to
 2103         branch agencies, agents in charge, and the payment of
 2104         additional county tax under certain circumstances;
 2105         amending s. 626.8411, F.S.; conforming a cross
 2106         reference; amending s. 626.8805, F.S.; revising
 2107         insurance administrator application requirements;
 2108         amending s. 626.8817, F.S.; authorizing an insurer’s
 2109         designee to provide certain coverage information to an
 2110         insurance administrator; authorizing an insurer to
 2111         subcontract the audit of an insurance administrator;
 2112         amending s. 626.882, F.S.; prohibiting a person from
 2113         acting as an insurance administrator without a
 2114         specific written agreement; amending s. 626.883, F.S.;
 2115         requiring insurance administrators to furnish
 2116         fiduciary account records to an insurer’s designee;
 2117         providing that administrator withdrawals from a
 2118         fiduciary account be made according to specific
 2119         written agreements; providing that an insurer’s
 2120         designee may authorize payment of claims; amending s.
 2121         626.884, F.S.; revising an insurer’s right of access
 2122         to certain administrator records; amending s. 626.89,
 2123         F.S.; revising the deadline for filing certain
 2124         financial statements; amending s. 626.931, F.S.;
 2125         deleting provisions requiring a surplus lines agent to
 2126         file a quarterly affidavit with the Florida Surplus
 2127         Lines Service Office; amending s. 626.932, F.S.;
 2128         revising the due date of surplus lines tax; amending
 2129         s. 626.935, F.S.; conforming provisions to changes
 2130         made by the act; amending s. 626.936, F.S.; conforming
 2131         provisions to changes made by the act; amending s.
 2132         626.9914, F.S.; conforming a provision to changes made
 2133         by the act; amending s. 626.99175, F.S.; deleting
 2134         provisions requiring registration of life expectancy
 2135         providers; deleting procedures, qualifying criteria,
 2136         and violations with respect thereto; amending ss.
 2137         626.9919, 626.992, 626.9925, and 626.99278, F.S.;
 2138         conforming provisions to changes made by the act;
 2139         amending s. 627.062, F.S.; requiring the Office of
 2140         Insurance Regulation to use certain models or straight
 2141         averages of certain models to estimate hurricane
 2142         losses when determining whether the rates in a rate
 2143         filing are excessive, inadequate, or unfairly
 2144         discriminatory; amending s. 627.0628, F.S.; increasing
 2145         the length of time during which an insurer must adhere
 2146         to certain findings made by the Commission on
 2147         Hurricane Loss Projection Methodology with respect to
 2148         certain methods, principles, standards, models, or
 2149         output ranges used in a rate finding; providing that
 2150         the requirement to adhere to such findings does not
 2151         limit an insurer from using a straight average of
 2152         results of certain models or output ranges under
 2153         specified circumstances; amending s. 627.072, F.S.;
 2154         authorizing retrospective rating plans relating to
 2155         workers’ compensation and employer’s liability
 2156         insurance to allow negotiations between certain
 2157         employers and insurers with respect to rating factors
 2158         used to calculate premiums; amending s. 627.281, F.S.;
 2159         conforming a cross-reference; repealing s. 627.3519,
 2160         F.S., relating to an annual report from the Financial
 2161         Services Commission to the Legislature of aggregate
 2162         net probable maximum losses, financing options, and
 2163         potential assessments of the Florida Hurricane
 2164         Catastrophe Fund and Citizens Property Insurance
 2165         Corporation; amending s. 627.4133, F.S.; increasing
 2166         the amount of prior notice required with respect to
 2167         the nonrenewal, cancellation, or termination of
 2168         certain insurance policies; deleting certain
 2169         provisions that require extended periods of prior
 2170         notice with respect to the nonrenewal, cancellation,
 2171         or termination of certain insurance policies;
 2172         prohibiting the cancellation of certain policies that
 2173         have been in effect for a specified amount of time
 2174         except under certain circumstances; amending s.
 2175         627.4137, F.S.; adding licensed company adjusters to
 2176         the list of persons who may respond to a claimant’s
 2177         written request for information relating to liability
 2178         insurance coverage; amending s. 627.421, F.S.;
 2179         authorizing the electronic delivery of certain
 2180         insurance documents; amending s. 627.43141, F.S.;
 2181         authorizing a notice of change in policy terms to be
 2182         sent in a separate mailing to an insured under certain
 2183         circumstances; requiring an insurer to provide such
 2184         notice to the insured’s insurance agent; amending s.
 2185         627.6484, F.S.; providing that coverage for each
 2186         policyholder of the Florida Comprehensive Health
 2187         Association terminates on a specified date; requiring
 2188         the association to provide assistance to
 2189         policyholders; requiring the association to notify
 2190         policyholders of termination of coverage and provide
 2191         information concerning how to obtain other coverage;
 2192         requiring the association to impose a final assessment
 2193         or provide a refund to member insurers, sell or
 2194         dispose of physical assets, perform a final
 2195         accounting, legally dissolve the association, submit a
 2196         required report, and transfer all records to the
 2197         Office of Insurance Regulation; repealing s.
 2198         627.64872, F.S., relating to the Florida Health
 2199         Insurance Plan; providing for the future repeal of ss.
 2200         627.648, 627.6482, 627.6484, 627.6486, 627.6488,
 2201         627.6489, 627.649, 627.6492, 627.6494, 627.6496,
 2202         627.6498, and 627.6499, F.S., relating to the Florida
 2203         Comprehensive Health Association Act, definitions,
 2204         termination of enrollment and availability of other
 2205         coverage, eligibility, the Florida Comprehensive
 2206         Health Association, the Disease Management Program,
 2207         the administrator of the health insurance plan,
 2208         participation of insurers, insurer assessments,
 2209         deferment, and assessment limitations, issuing of
 2210         policies, minimum benefits coverage and exclusions,
 2211         premiums, and deductibles, and reporting by insurers
 2212         and third-party administrators, respectively; amending
 2213         s. 627.701, F.S.; revising requirements to issue or
 2214         renew personal lines residential property insurance
 2215         after a certain date; increasing the deductible amount
 2216         for losses from perils other than hurricane; amending
 2217         s. 627.7015, F.S.; revising the rulemaking authority
 2218         of the department with respect to qualifications and
 2219         specified types of penalties covered under the
 2220         property insurance mediation program; creating s.
 2221         627.70151, F.S.; providing criteria for an insurer or
 2222         policyholder to challenge the impartiality of a loss
 2223         appraisal umpire for purposes of disqualifying such
 2224         umpire; amending s. 627.706, F.S.; revising the
 2225         definition of the term “neutral evaluator”; amending
 2226         s. 627.7074, F.S.; requiring the department to adopt
 2227         rules relating to the certification of neutral
 2228         evaluators; amending s. 627.736, F.S.; revising the
 2229         time period for applicability of certain Medicare fee
 2230         schedules or payment limitations; amending s. 627.745,
 2231         F.S.; revising qualifications for approval as a
 2232         mediator by the department; providing grounds for the
 2233         department to deny an application, or suspend or
 2234         revoke approval of a mediator or certification of a
 2235         neutral evaluator; authorizing the department to adopt
 2236         rules; amending s. 627.841, F.S.; providing that an
 2237         insurance premium finance company may impose a fee for
 2238         payments returned due to insufficient funds; amending
 2239         s. 627.952, F.S.; providing that certain persons who
 2240         are not residents of this state must be licensed and
 2241         appointed as nonresident surplus lines agents in this
 2242         state in order to engage in specified activities with
 2243         respect to servicing insurance contracts,
 2244         certificates, or agreements for purchasing or risk
 2245         retention groups; deleting a fidelity bond requirement
 2246         applicable to certain nonresident agents who are
 2247         licensed as surplus lines agents in another state;
 2248         amending ss. 627.971 and 627.972, F.S.; including
 2249         licensed mutual insurers in financial guaranty
 2250         insurance corporations; amending s. 628.901, F.S.;
 2251         revising the definition of terms applicable to captive
 2252         insurers; amending s. 628.905, F.S.; authorizing an
 2253         industrial insured captive insurance company to write
 2254         workers compensation and employer liability insurance
 2255         in excess of a certain amount under certain
 2256         conditions; conforming provisions to changes made by
 2257         the act; redesignating the Office of Insurance
 2258         Regulation instead of the Insurance Commissioner as
 2259         the collector of certain fees and issuer of licenses;
 2260         amending s. 628.907, F.S.; conforming provisions to
 2261         changes made by the act; amending s. 628.909, F.S.;
 2262         providing for applicability of certain provisions of
 2263         the Insurance Code to specified captive insurers;
 2264         conforming provisions to changes made by the act;
 2265         amending s. 628.9142, F.S.; conforming provisions to
 2266         changes made by the act; amending s. 628.915, F.S.;
 2267         conforming provisions to changes made by the act;
 2268         amending s. 628.917, F.S.; conforming provisions to
 2269         changes made by the act; amending s. 628.919, F.S.;
 2270         requiring a pure captive insurance company to submit
 2271         certain risk management standards to the Office of
 2272         Insurance Regulation; amending s. 634.406, F.S.;
 2273         revising criteria authorizing premiums of certain
 2274         service warranty associations to exceed their
 2275         specified net assets limitations; revising
 2276         requirements relating to contractual liability
 2277         policies that insure warranty associations; providing
 2278         an effective date.