Senate Bill sb2526c1

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    Florida Senate - 2006                           CS for SB 2526

    By the Committee on Banking and Insurance; and Senator Posey





    597-2366-06

  1                      A bill to be entitled

  2         An act relating to insurance agents; amending

  3         s. 626.171, F.S.; providing additional

  4         requirements for applications for certain

  5         licenses; requiring applicants to submit

  6         fingerprints and pay a processing fee;

  7         providing for fingerprints to be taken by a

  8         designated examination center; requiring the

  9         Department of Financial Services to require

10         designated examination centers to have certain

11         equipment; prohibiting the department from

12         approving licensure applications without

13         submitted fingerprints; amending s. 626.211,

14         F.S.; deleting a prohibition against the

15         department denying, delaying, or withholding

16         approval of applications lacking a criminal

17         history report; revising circumstances under

18         which the department must notify an applicant

19         about examinations; amending s. 626.221, F.S.;

20         expanding the authorized adjuster designations

21         for exemptions from adjuster license

22         examinations; amending s. 626.231, F.S.;

23         providing authorization and procedures for

24         applying on the department's Internet website

25         to take a licensure examination prior to

26         applying for licensure; specifying required

27         application information; requiring an

28         application disclosure statement; requiring

29         payment of an examination fee with an

30         application; amending s. 626.241, F.S.;

31         providing for application of certain

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    Florida Senate - 2006                           CS for SB 2526
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 1         examination provisions to certain persons;

 2         creating s. 626.2415, F.S.; requiring the

 3         department to annually prepare, publicly

 4         announce, and publish reports of certain

 5         examination statistical information; providing

 6         report requirements; authorizing the department

 7         to provide certain contracted testing service

 8         providers with certain demographic application

 9         information under certain circumstances;

10         amending s. 626.251, F.S.; requiring the

11         department to provide certain information to

12         examination applicants; amending s. 626.261,

13         F.S.; requiring examination applicants to

14         personally take the examination; amending s.

15         626.281, F.S.; applying reexamination

16         provisions to examination applicants; amending

17         s. 626.291, F.S.; requiring the department to

18         issue a license for certain applicants after

19         the department approves the application;

20         specifying a period of validity of a passing

21         examination grade; prohibiting the department

22         from issuing a license based on an examination

23         taken more than 1 year prior to filing an

24         application; providing appropriations;

25         authorizing additional positions; providing

26         effective dates.

27  

28  Be It Enacted by the Legislature of the State of Florida:

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    Florida Senate - 2006                           CS for SB 2526
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 1         Section 1.  Effective January 1, 2007, subsections (2)

 2  and (4) of section 626.171, Florida Statutes, are amended to

 3  read:

 4         626.171  Application for license as an agent, customer

 5  representative, adjuster, service representative, managing

 6  general agent, or reinsurance intermediary.--

 7         (2)  In the application, the applicant shall set forth:

 8         (a)  His or her full name, age, social security number,

 9  residence address, business address, and mailing address.

10         (b)  Proof that he or she has completed or is in the

11  process of completing any required prelicensing course.

12         (c)  Whether he or she has been refused or has

13  voluntarily surrendered or has had suspended or revoked a

14  license to solicit insurance by the department or by the

15  supervising officials of any state.

16         (d)  Whether any insurer or any managing general agent

17  claims the applicant is indebted under any agency contract or

18  otherwise and, if so, the name of the claimant, the nature of

19  the claim, and the applicant's defense thereto, if any.

20         (e)  Proof that the applicant meets the requirements

21  for the type of license for which he or she is applying.

22         (f)  The applicant's gender (male or female).

23         (g)  The applicant's native language.

24         (h)  The highest level of education achieved by the

25  applicant.

26         (i)  The applicant's race or ethnicity (African

27  American, white, American Indian, Asian, Hispanic, or other).

28         (j)(f)  Such other or additional information as the

29  department may deem proper to enable it to determine the

30  character, experience, ability, and other qualifications of

31  

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    Florida Senate - 2006                           CS for SB 2526
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 1  the applicant to hold himself or herself out to the public as

 2  an insurance representative.

 3  

 4  However, the application must contain a statement that an

 5  applicant is not required to disclose his or her race or

 6  ethnicity, gender, or native language, that he or she will not

 7  be penalized for not doing so, and that the department will

 8  use this information exclusively for research and statistical

 9  purposes and to improve the quality and fairness of the

10  examinations.

11         (4)  An applicant application for a license as an

12  agent, customer representative, adjuster, service

13  representative, managing general agent, or reinsurance

14  intermediary must submit be accompanied by a set of the

15  individual applicant's fingerprints, or, if the applicant is

16  not an individual, by a set of the fingerprints of the sole

17  proprietor, majority owner, partners, officers, and directors,

18  to the department and must pay on a form adopted by rule of

19  the department and accompanied by the fingerprint processing

20  fee set forth in s. 624.501. Fingerprints shall be used to

21  investigate the applicant's qualifications pursuant to s.

22  626.201. The fingerprints shall be taken by a law enforcement

23  agency, designated examination center, or other

24  department-approved entity. The department shall require all

25  designated examination centers to have fingerprinting

26  equipment and to take fingerprints from any applicant or

27  prospective applicant who pays the applicable fee. The

28  department may not approve an application for licensure as an

29  agent, customer service representative, adjuster, service

30  representative, managing general agent, or reinsurance

31  intermediary if fingerprints have not been submitted.

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    Florida Senate - 2006                           CS for SB 2526
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 1         Section 2.  Effective January 1, 2007, subsections (1)

 2  and (2) of section 626.211, Florida Statutes, are amended to

 3  read:

 4         626.211  Approval, disapproval of application.--

 5         (1)  If upon the basis of a completed application for

 6  license and such further inquiry or investigation as the

 7  department may make concerning an applicant the department is

 8  satisfied that, subject to any examination required to be

 9  taken and passed by the applicant for a license, the applicant

10  is qualified for the license applied for and that all

11  pertinent fees have been paid, it shall approve the

12  application.  The department shall not deny, delay, or

13  withhold approval of an application due to the fact that it

14  has not received a criminal history report based on the

15  applicant's fingerprints.

16         (2)  Upon approval of an applicant for license as

17  agent, customer representative, or adjuster who is subject to

18  written examination, the department shall notify the applicant

19  when and where he or she may take the required examination

20  unless the applicant has taken and passed the examination

21  within 1 year before the date of filing the application.

22         Section 3.  Paragraph (k) of subsection (2) of section

23  626.221, Florida Statutes, is amended to read:

24         626.221  Examination requirement; exemptions.--

25         (2)  However, no such examination shall be necessary in

26  any of the following cases:

27         (k)  An applicant for license as an adjuster who has

28  the designation of Accredited Claims Adjuster (ACA) from a

29  regionally accredited postsecondary institution in this state,

30  or the designation of Professional Claims Adjuster (PCA) from

31  the Professional Career Institute, or Certified Claims

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    Florida Senate - 2006                           CS for SB 2526
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 1  Adjuster (CCA) from the Association of Property and Casualty

 2  Claims Professionals, whose curriculum has been approved by

 3  the department and whose curriculum includes comprehensive

 4  analysis of basic property and casualty lines of insurance and

 5  testing at least equal to that of standard department testing

 6  for the all-lines adjuster license. The department shall adopt

 7  rules establishing standards for the approval of curriculum.

 8         Section 4.  Effective January 1, 2007, section 626.231,

 9  Florida Statutes, is amended to read:

10         626.231  Eligibility; application for examination.--

11         (1)  A No person may not shall be permitted to take an

12  examination for license until his or her application for

13  examination or application for the license has been approved

14  and the required fees have been received by the department or

15  a person designated by the department to administer the

16  examination.

17         (2)  A person required to take an examination for a

18  license may be permitted to take an examination prior to

19  submitting an application for licensure pursuant to s. 626.171

20  by submitting an application for examination through the

21  department's Internet website. In the application, the

22  applicant shall set forth:

23         (a)  His or her full name, age, social security number,

24  residence address, business address, and mailing address.

25         (b)  The type of license that the applicant intends to

26  apply for.

27         (c)  The name of any required prelicensing course he or

28  she has completed or is in the process of completing.

29         (d)  The method by which the applicant intends to

30  qualify for the type of license if other than by completing a

31  prelicensing course.

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    Florida Senate - 2006                           CS for SB 2526
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 1         (e)  The applicant's gender (male or female).

 2         (f)  The applicant's native language.

 3         (g)  The highest level of education achieved by the

 4  applicant.

 5         (h)  The applicant's race or ethnicity (African

 6  American, white, American Indian, Asian, Hispanic, or other).

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 8  However, the application must contain a statement that an

 9  applicant is not required to disclose his or her race or

10  ethnicity, gender, or native language, that he or she will not

11  be penalized for not doing so, and that the department will

12  use this information exclusively for research and statistical

13  purposes and to improve the quality and fairness of the

14  examinations.

15         (3)  Each application must be accompanied by payment of

16  the applicable examination fee.

17         Section 5.  Subsection (9) is added to section 626.241,

18  Florida Statutes, to read:

19         626.241  Scope of examination.--

20         (9)  This section applies to any person who submits an

21  application for license and to any person who submits an

22  application for examination prior to filing an application for

23  license.

24         Section 6.  Section 626.2415, Florida Statutes, is

25  created to read:

26         626.2415  Annual report of results of life insurance

27  examinations.--

28         (1)  No later than May 1 of each year, the department

29  or a person designated by the department shall prepare,

30  publicly announce, and publish a report that summarizes

31  statistical information relating to life insurance agent

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    Florida Senate - 2006                           CS for SB 2526
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 1  examinations administered during the preceding calendar year.

 2  Each report shall include the following information for all

 3  examinees, combined and separately by race or ethnicity,

 4  gender, race or ethnicity within gender, education level, and

 5  native language:

 6         (a)  The total number of examinees.

 7         (b)  The percentage and number of examinees who passed

 8  the examination.

 9         (c)  The mean scaled scores on the examination.

10         (d)  Standard deviation of scaled scores on the

11  examination.

12         (2)  No later than May 1 of each year, the department

13  or a person designated by the department shall prepare and

14  make available upon request a report of summary statistical

15  information relating to each operational item on each life

16  insurance test form administered during the preceding calendar

17  year. The report shall show, for each operational item, for

18  all examinees combined and separately for African-American

19  examinees, white examinees, American Indian examinees, Asian

20  examinees, Hispanic examinees, and other examinees, the

21  correct-answer rates and correlations.

22         (3)  The department may provide a testing service

23  provider, under contract with the department, demographic

24  information received by the department on applications

25  relating to examinations taken to qualify for an insurance

26  agent license if the department requires the provider to

27  review and analyze examination results in conjunction with the

28  race or ethnicity, gender, education level, and native

29  language of examinees.

30         Section 7.  Subsection (1) of section 626.251, Florida

31  Statutes, is amended to read:

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    Florida Senate - 2006                           CS for SB 2526
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 1         626.251  Time and place of examination; notice.--

 2         (1)  The department or a person designated by the

 3  department shall mail written notice of the time and place of

 4  the examination to each applicant for examination and each

 5  applicant for license required to take an examination who will

 6  be eligible to take the examination as of the examination

 7  date.  The notice shall be so mailed, postage prepaid, and

 8  addressed to the applicant at his or her address shown on the

 9  application for license or at such other address as requested

10  by the applicant in writing filed with the department prior to

11  the mailing of the notice. Notice shall be deemed given when

12  so mailed.

13         Section 8.  Effective January 1, 2007, subsection (1)

14  of section 626.261, Florida Statutes, is amended to read:

15         626.261  Conduct of examination.--

16         (1)  The applicant for license or the applicant for

17  examination shall appear in person and personally take the

18  examination for license at the time and place specified by the

19  department or by a person designated by the department.

20         Section 9.  Subsection (1) of section 626.281, Florida

21  Statutes, is amended to read:

22         626.281  Reexamination.--

23         (1)  Any applicant for license or applicant for

24  examination who has either:

25         (a)  Taken an examination and failed to make a passing

26  grade, or

27         (b)  Failed to appear for the examination or to take or

28  complete the examination at the time and place specified in

29  the notice of the department,

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    Florida Senate - 2006                           CS for SB 2526
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 1  may take additional examinations, after filing with the

 2  department an application for reexamination together with

 3  applicable fees.  The failure of an applicant to pass an

 4  examination or the failure to appear for the examination or to

 5  take or complete the examination does not preclude the

 6  applicant from taking subsequent examinations.

 7         Section 10.  Effective January 1, 2007, section

 8  626.291, Florida Statutes, is amended to read:

 9         626.291  Examination results; denial, issuance of

10  license.--

11         (1)  Within 30 days after the applicant has completed

12  any examination required under s. 626.221, the department or

13  its designee shall provide a score report; and, if it finds

14  that the applicant has received a passing grade, the

15  department shall within such period notify the applicant and

16  issue and transmit the license to which such examination

17  related.  If it finds that the applicant did not make a

18  passing grade on the examination for a particular license, the

19  department or its designee shall within this period provide

20  notice to the applicant to that effect and of its denial of

21  the license. For those applicants who have completed the

22  examination and received a passing grade prior to submitting

23  the license application, the department shall promptly issue

24  the license applied for as soon as the department approves the

25  application.

26         (2)  As to an applicant for a license for which no

27  examination is required, the department shall promptly issue

28  the license applied for as soon as it has approved the

29  application.

30         (3)  A passing grade on an examination is valid for a

31  period of 1 year. The department may not issue a license to an

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    Florida Senate - 2006                           CS for SB 2526
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 1  applicant based on an examination taken more than 1 year prior

 2  to the date that an application for license is filed. The

 3  department shall not deny, delay, or withhold issuance of a

 4  license due to the fact that it has not received a criminal

 5  history report based on the applicant's fingerprints.

 6         Section 11.  The sums of $158,995 in recurring funds

 7  and $120,069 in nonrecurring funds are appropriated from the

 8  Insurance Regulatory Trust Fund in the Department of Financial

 9  Services for the 2006-2007 fiscal year for the purposes of

10  funding this act, and three full-time equivalent positions

11  with $103,285 in associated salary rate are authorized.

12         Section 12.  Except as otherwise expressly provided in

13  this act, this act shall take effect July 1, 2006.

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    Florida Senate - 2006                           CS for SB 2526
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 1          STATEMENT OF SUBSTANTIAL CHANGES CONTAINED IN
                       COMMITTEE SUBSTITUTE FOR
 2                         Senate Bill 2526

 3                                 

 4  1.   Allows fingerprints of insurance agent applicants to be
         taken at a designated examination center and requires DFS
 5       to have fingerprinting equipment available.

 6  2.   Deletes a prohibition against the Department of Financial
         Services (DFS) denying, delaying, or withholding approval
 7       of license applications without a criminal history
         report.
 8  
    3.   Revises circumstances under which the department must
 9       notify an applicant about license examinations.

10  4.   Exempts from the examination requirement for a claims
         adjuster an individual who has obtained certification as
11       a claims adjuster from the Association of Property and
         Casualty Claims Professionals.
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    5.   Provides procedures for applying for agent licensure
13       examination prior to applying for licensure.

14  6.   Allows insurance agent applicants to voluntarily disclose
         their race, ethnicity, gender, and native language on
15       license applications to the (DFS) which will use the
         information for research and statistical purposes to
16       improve the fairness of the license examinations.

17  7.   Requires DFS to annually publish a report summarizing
         information relating to life insurance agent examinations
18       administered each year, including ethnic classifications
         (race, ethnicity, gender, or native language) pertaining
19       to passing rates and correct-answer rates.

20  8.   Requires DFS to provide certain information to
         examination applicants.
21  
    9.   Appropriates to DFS $158,995 (recurring) and $120,069
22       (non-recurring), from the Insurance Regulatory Trust
         Fund, and 3 full-time positions with a $103,285
23       associated salary rate.

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