Florida Senate - 2007 SENATOR AMENDMENT
Bill No. CS for SB 2702
Barcode 383526
CHAMBER ACTION
Senate House
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05/01/2007 11:43 AM .
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11 Senator Aronberg moved the following amendment:
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13 Senate Amendment (with title amendment)
14 On page 2, line 6, through
15 page 9, line 10, delete those lines
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17 and insert:
18 Section 1. Paragraph (a) of subsection (7) of section
19 626.112, Florida Statutes, is amended to read:
20 626.112 License and appointment required; agents,
21 customer representatives, adjusters, insurance agencies,
22 service representatives, managing general agents.--
23 (7)(a) Effective October 1, 2006, no individual, firm,
24 partnership, corporation, association, or any other entity
25 shall act in its own name or under a trade name, directly or
26 indirectly, as an insurance agency, unless it complies with s.
27 626.172 with respect to possessing an insurance agency license
28 for each place of business at which it engages in any activity
29 which may be performed only by a licensed insurance agent.
30 Each agency engaged in business in this state before January
31 1, 2003, which is wholly owned by insurance agents currently
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Florida Senate - 2007 SENATOR AMENDMENT
Bill No. CS for SB 2702
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1 licensed and appointed under this chapter, each incorporated
2 agency whose voting shares are traded on a securities
3 exchange, each agency designated and subject to supervision
4 and inspection as a branch office under the rules of the
5 National Association of Securities Dealers, and each agency
6 whose primary function is offering insurance as a service or
7 member benefit to members of a nonprofit corporation may file
8 an application for registration in lieu of licensure in
9 accordance with s. 626.172(3). Each agency engaged in business
10 before October 1, 2006, shall file an application for
11 licensure or registration on or before October 1, 2006.
12 1. If an agency is required to be licensed but fails
13 to file an application for licensure in accordance with this
14 section, the department shall impose on the agency an
15 administrative penalty in an amount of up to $10,000.
16 2. If an agency is eligible for registration but fails
17 to file an application for registration or an application for
18 licensure in accordance with this section, the department
19 shall impose on the agency an administrative penalty in an
20 amount of up to $5,000.
21 Section 2. Paragraph (k) of subsection (2) of section
22 626.221, Florida Statutes, is amended to read:
23 626.221 Examination requirement; exemptions.--
24 (2) However, no such examination shall be necessary in
25 any of the following cases:
26 (k) An applicant for license as an independent or
27 company employee adjuster who has the designation of
28 Accredited Claims Adjuster (ACA) from a regionally accredited
29 postsecondary institution in this state, Professional Claims
30 Adjuster (PCA) from the Professional Career Institute,
31 Professional Property Insurance Adjuster (PPIA) from the
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Florida Senate - 2007 SENATOR AMENDMENT
Bill No. CS for SB 2702
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1 HurriClaim Training Academy, Certified Adjuster (CA) from
2 All-Lines Training, or Certified Claims Adjuster (CCA) from
3 the Association of Property and Casualty Claims Professionals
4 whose curriculum has been approved by the department and whose
5 curriculum includes comprehensive analysis of basic property
6 and casualty lines of insurance and testing at least equal to
7 that of standard department testing for the all-lines adjuster
8 license. The department shall adopt rules establishing
9 standards for the approval of curriculum.
10 Section 3. Section 626.7851, Florida Statutes, is
11 amended to read:
12 626.7851 Requirement as to knowledge, experience, or
13 instruction.--No applicant for a license as a life agent,
14 except for a chartered life underwriter (CLU), shall be
15 qualified or licensed unless within the 4 years immediately
16 preceding the date the application for a license is filed with
17 the department he or she has:
18 (1) Successfully completed 40 hours of classroom
19 courses in insurance, 3 hours of which shall be on the subject
20 matter of ethics, satisfactory to the department at a school
21 or college, or extension division thereof, or other authorized
22 course of study, approved by the department. Courses must
23 include instruction on the subject matter of unauthorized
24 entities engaging in the business of insurance, to include the
25 Florida Nonprofit Multiple-Employer Welfare Arrangement Act
26 and the Employee Retirement Income Security Act, 29 U.S.C. ss.
27 1001 et seq., as it relates to the provision of life insurance
28 by employers to their employees and the regulation thereof;
29 (2) Successfully completed a correspondence course in
30 insurance, 3 hours of which shall be on the subject matter of
31 ethics, satisfactory to the department and regularly offered
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Florida Senate - 2007 SENATOR AMENDMENT
Bill No. CS for SB 2702
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1 by accredited institutions of higher learning in this state or
2 by independent programs of study, approved by the department.
3 Courses must include instruction on the subject matter of
4 unauthorized entities engaging in the business of insurance,
5 to include the Florida Nonprofit Multiple-Employer Welfare
6 Arrangement Act and the Employee Retirement Income Security
7 Act, 29 U.S.C. ss. 1001 et seq., as it relates to the
8 provision of life insurance by employers to their employees
9 and the regulation thereof;
10 (3) Held an active license in life, or life and
11 health, insurance in another state. This provision may not be
12 utilized unless the other state grants reciprocal treatment to
13 licensees formerly licensed in Florida; or
14 (4) Been employed by the department or office for at
15 least 1 year, full time in life or life and health insurance
16 regulatory matters and who was not terminated for cause, and
17 application for examination is made within 90 days after the
18 date of termination of his or her employment with the
19 department or office.
20 Section 4. Section 626.8311, Florida Statutes, is
21 amended to read:
22 626.8311 Requirement as to knowledge, experience, or
23 instruction.--No applicant for a license as a health agent,
24 except for a chartered life underwriter (CLU), shall be
25 qualified or licensed unless within the 4 years immediately
26 preceding the date the application for license is filed with
27 the department he or she has:
28 (1) Successfully completed 40 hours of classroom
29 courses in insurance, 3 hours of which shall be on the subject
30 matter of ethics, satisfactory to the department at a school
31 or college, or extension division thereof, or other authorized
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Florida Senate - 2007 SENATOR AMENDMENT
Bill No. CS for SB 2702
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1 course of study, approved by the department. Courses must
2 include instruction on the subject matter of unauthorized
3 entities engaging in the business of insurance, to include the
4 Florida Nonprofit Multiple-Employer Welfare Arrangement Act
5 and the Employee Retirement Income Security Act, 29 U.S.C. ss.
6 1001 et seq., as it relates to the provision of health
7 insurance by employers to their employees and the regulation
8 thereof;
9 (2) Successfully completed a correspondence course in
10 insurance, 3 hours of which shall be on the subject matter of
11 ethics, satisfactory to the department and regularly offered
12 by accredited institutions of higher learning in this state or
13 by independent programs of study, approved by the department.
14 Courses must include instruction on the subject matter of
15 unauthorized entities engaging in the business of insurance,
16 to include the Florida Nonprofit Multiple-Employer Welfare
17 Arrangement Act and the Employee Retirement Income Security
18 Act, 29 U.S.C. ss. 1001 et seq., as it relates to the
19 provision of health insurance by employers to their employees
20 and the regulation thereof;
21 (3) Held an active license in health, or life and
22 health, insurance in another state. This provision may not be
23 utilized unless the other state grants reciprocal treatment to
24 licensees formerly licensed in Florida; or
25 (4) Been employed by the department or office for at
26 least 1 year, full time in health insurance regulatory matters
27 and who was not terminated for cause, and application for
28 examination is made within 90 days after the date of
29 termination of his or her employment with the department or
30 office.
31 Section 5. Effective January 1, 2008, subsection (1)
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Florida Senate - 2007 SENATOR AMENDMENT
Bill No. CS for SB 2702
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1 of section 626.747, Florida Statutes, is amended to read:
2 626.747 Branch agencies.--
3 (1)(a) Each branch place of business established by an
4 agent or agency, firm, corporation, or association shall be in
5 the active full-time charge of a licensed general lines agent
6 or life or health agent who is appointed to represent one or
7 more insurers. Any agent or agency, firm, corporation, or
8 association which has established one or more branch places of
9 business shall be required to have at least one licensed
10 general lines agent who is appointed to represent one or more
11 insurers at each location of the agency including its
12 headquarters location.
13 (b) Notwithstanding paragraph (a), the licensed agent
14 in charge of an insurance agency may also be the agent in
15 charge of additional branch office locations of the agency if
16 insurance activities requiring licensure as an insurance agent
17 do not occur at any location when the agent is not physically
18 present and unlicensed employees at the location do not engage
19 in any insurance activities requiring licensure as an
20 insurance agent or customer service representative.
21 Section 6. Subsection (2) of section 626.865, Florida
22 Statutes, is amended to read:
23 626.865 Public adjuster's qualifications, bond.--
24 (2) At the time of application for license as a public
25 adjuster, the applicant shall file with the department a bond
26 executed and issued by a surety insurer authorized to transact
27 such business in this state, in the amount of $50,000,
28 conditioned for the faithful performance of his or her duties
29 as a public adjuster under the license for which the applicant
30 has applied, and thereafter maintain the bond unimpaired
31 throughout the existence of the license and for at least 1
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Florida Senate - 2007 SENATOR AMENDMENT
Bill No. CS for SB 2702
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1 year after termination of the license for. The bond shall be
2 in favor of the department and shall specifically authorize
3 recovery by the department of the damages sustained in case
4 the licensee is guilty of fraud or unfair practices in
5 connection with his or her business as public adjuster. The
6 aggregate liability of the surety for all such damages shall
7 in no event exceed the amount of the bond. Such bond shall
8 not be terminated unless at least 30 days' written notice is
9 given to the licensee and filed with the department.
10 Section 7. Paragraph (c) of subsection (4) of section
11 626.869, Florida Statutes, is amended to read:
12 626.869 License, adjusters.--
13 (4)
14 (c) The department shall adopt rules necessary to
15 implement and administer the continuing education requirements
16 of this subsection. For good cause shown, the department may
17 grant an extension of time during which the requirements
18 imposed by this section may be completed, but such extension
19 of time may not exceed 1 year.
20 Section 8. Section 626.8698, Florida Statutes, is
21 amended to read:
22 626.8698 Disciplinary guidelines for public
23 adjusters.--The department may deny, suspend, or revoke the
24 license of a public adjuster, and administer a fine not to
25 exceed $5,000 per act, for any of the following:
26 (1) Violating any provision of this chapter or a rule
27 or order of the department office or commission;
28 (2) Receiving payment or anything of value as a result
29 of an unfair or deceptive practice;
30 (3) Receiving or accepting any fee, kickback, or other
31 thing of value pursuant to any agreement or understanding,
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1 oral or otherwise; entering into a split-fee arrangement with
2 another person who is not a public adjuster; or being
3 otherwise paid or accepting payment for services that have not
4 been performed;
5 (4) Violating s. 316.066 or s. 817.234;
6 (5) Soliciting or otherwise taking advantage of a
7 person who is vulnerable, emotional, or otherwise upset as the
8 result of a trauma, accident, or other similar occurrence; or
9 (6) Violating any ethical rule of the department.
10 Section 9. Paragraphs (a) and (c) of section 626.921,
11 Florida Statutes, are amended to read:
12 626.921 Florida Surplus Lines Service Office.--
13 (5)(a) The association shall submit to the office a
14 plan of operation, and any amendments thereto, to provide
15 operating procedures for the administration of the service
16 office. The plan of operation and any amendments thereto shall
17 become effective upon approval by order of the office. The
18 association shall submit to the department an agents' manual,
19 and any amendments thereto, which shall provide administrative
20 procedures that surplus lines insurance agents must follow
21 with respect to their duties to the service office. The manual
22 shall be prepared in cooperation with the department, and any
23 changes, updates, or amendments shall be submitted to the
24 department before distribution. The manual shall be approved
25 by order of the department.
26 (c) All surplus lines agents licensed in this state
27 must comply with the plan of operation and the agent's manual.
28 Section 10. Section 626.9611, Florida Statutes, is
29 amended to read:
30 626.9611 Rules.--
31 (1) The department or commission may, in accordance
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1 with chapter 120, adopt reasonable rules as are necessary or
2 proper to identify specific methods of competition or acts or
3 practices which are prohibited by s. 626.9541 or s. 626.9551,
4 but the rules shall not enlarge upon or extend the provisions
5 of ss. 626.9541 and 626.9551.
6 (2) The department and the commission shall, in
7 accordance with chapter 120, adopt rules to protect members of
8 the United States Armed Forces from dishonest or predatory
9 insurance sales practices by insurers and insurance agents.
10 The rules shall identify specific false, misleading,
11 deceptive, or unfair methods of competition, acts, or
12 practices which are prohibited by s. 626.9541 or s. 626.9551.
13 The rules shall be based upon model rules or model laws
14 adopted by the National Association of Insurance Commissioners
15 which identify certain insurance practices involving the
16 solicitation or sale of insurance and annuities to members of
17 the United States Armed Forces which are false, misleading,
18 deceptive, or unfair.
19 Section 11. For the 2007-2008 fiscal year, the sum of
20 $132,000 in nonrecurring funds is appropriated from the
21 Insurance Regulatory Trust Fund to the Department of Financial
22 Services for computer system changes necessary to implement
23 the provisions of s. 626.747, Florida Statutes.
24 Section 12. Section 626.9531, Florida Statutes, is
25 amended to read:
26 626.9531 Identification of insurers, agents, and
27 insurance contracts.--
28 (1) Advertising materials and other communications
29 developed by insurers, or other risk bearing entities
30 authorized under this code and approved by the office to do
31 business in this state, regarding insurance products shall
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1 clearly indicate that the communication relates to insurance
2 products. When soliciting or selling insurance products,
3 agents shall clearly indicate to prospective insureds that
4 they are acting as insurance agents with regard to insurance
5 products and identified insurers, or other risk bearing
6 entities authorized under this code and approved by the office
7 to do business in this state.
8 (2) There shall be no liability to the insured on the
9 part of, and no cause of action of any nature shall arise
10 against, any licensed and appointed insurance agent for the
11 insolvency of any risk bearing entity when such entity has
12 been duly authorized or approved by the office to do business
13 in this state. However if the licensed and appointed agent was
14 a controlling producer, as defined in s. 626.7491(2), of the
15 risk bearing entity within 2 years preceding the insolvency,
16 the agent is subject to penalty as provided in s. 626.7491(8).
17 (3) For the purposes of this section, the term "risk
18 bearing entity" means a reciprocal insurer as defined in s.
19 629.021, a commercial self-insurance fund as defined in s.
20 624.462, a group self-insurance fund as defined in s.
21 624.4621, a local government self-insurance fund as defined in
22 s. 624.4622, a self-insured public utility as defined in s.
23 624.46225, or an independent educational institution
24 self-insurance fund as defined in s. 624.4623. For the
25 purposes of this section, the term "risk bearing entity" does
26 not include an authorized insurer as defined in s. 624.09.
27 Section 13. Except as otherwise expressly provided in
28 this act, this act shall take effect July 1, 2007.
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1 ================ T I T L E A M E N D M E N T ===============
2 And the title is amended as follows:
3 Delete everything before the enacting clause
4
5 and insert:
6 A bill to be entitled
7 An act relating to insurance representatives;
8 amending s. 626.112, F.S.; authorizing certain
9 agencies designated as a branch office to file
10 an application for registration in lieu of
11 licensure; amending s. 626.221, F.S.; providing
12 an exemption from the required written
13 examination to certain applicants for licensure
14 as a claims adjuster; amending s. 626.7851,
15 F.S.; authorizing certain programs to offer
16 correspondence courses to applicants for
17 licensure as a life insurance agent; amending
18 s. 626.8311, F.S.; authorizing certain programs
19 to offer correspondence courses to applicants
20 for licensure as a health insurance agent;
21 amending s. 626.747, F.S.; authorizing certain
22 licensed agents to be the agent in charge of
23 branch locations under certain circumstances;
24 amending s. 626.865, F.S.; requiring public
25 adjusters to maintain their surety bond
26 unimpaired for a certain period; amending s.
27 626.869, F.S.; authorizing an extension of time
28 to complete continuing education requirements
29 for public adjusters; amending s. 626.8698,
30 F.S.; designating the Department of Financial
31 Services as the appropriate agency responsible
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Florida Senate - 2007 SENATOR AMENDMENT
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1 for disciplinary action against public
2 adjusters; amending s. 626.921, F.S.; providing
3 that the department is responsible for approval
4 of the surplus lines agent manual; amending s.
5 626.9611, F.S.; requiring that the department
6 adopt rules prohibiting the use of unfair and
7 deceptive practices in the sale of insurance to
8 members of the United States Armed Forces;
9 providing limitations; providing an
10 appropriation; amending s. 626.9531, F.S.;
11 revising requirements for identification of
12 insurers, agents, and insurance contracts;
13 specifying absence of liability and prohibiting
14 causes of action against certain agents for
15 insolvency of certain entities under certain
16 circumstances; providing definitions; providing
17 effective dates.
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