Florida Senate - 2011 CS for SB 1252
By the Committee on Budget; and Senator Smith
576-04684-11 20111252c1
1 A bill to be entitled
2 An act relating to insurance; amending s. 120.80,
3 F.S.; allowing the Division of Administrative Hearings
4 to have final order authority with respect to certain
5 license applicants; amending ss. 440.12 and 440.20,
6 F.S.; authorizing the payment of workers’ compensation
7 benefits through the use of a prepaid card; providing
8 requirements; amending s. 624.402, F.S.; revising
9 provisions relating to certain insurers serving
10 nonresidents domiciled outside the United States who
11 are exempt from requirements to obtain a certificate
12 of authority; amending s. 626.207, F.S., relating to
13 penalties; providing definitions; barring persons
14 convicted of certain crimes from licensure as an
15 insurance agent; revising provisions relating to
16 disqualifying periods for persons convicted of other
17 crimes; providing an exemption from the limitation
18 against state employment for persons convicted of
19 certain crimes; amending s. 627.4133, F.S.; changing
20 the designated person or persons who must be notified
21 by an insurer from the “insured” to the “first-named
22 insured” in situations involving the nonrenewal,
23 renewal premium, cancellation, or termination of
24 workers’ compensation, employer liability, or certain
25 property and casualty insurance coverage; specifying
26 the effective date for the cancellation of a policy
27 requested in writing by the insured; amending s.
28 627.4137, F.S.; requiring a claimant’s request about
29 insurance coverage to be appropriately served upon the
30 disclosing entity; amending s. 627.442, F.S.;
31 providing that premium audits for workers’
32 compensation or property and casualty coverages are
33 not required; providing exceptions; amending s.
34 627.7277, F.S.; making a conforming change that
35 specifies the “first-named insured” as the person who
36 is to receive notification of a renewal premium;
37 amending s. 627.728, F.S.; changing the designated
38 person or persons who must be notified by an insurer
39 from the “insured” to the “first-named insured” in
40 certain situations involving the cancellation or
41 nonrenewal of motor vehicle insurance coverage; making
42 a conforming change that specifies the “first-named
43 insured’s insurance agent” as a person who is to
44 receive certain notifications relating to motor
45 vehicle insurance coverage; amending s. 627.7281,
46 F.S.; making a conforming change that specifies the
47 “first-named insured” as the person who is to receive
48 notification of cancellation of motor vehicle
49 insurance coverage; creating s. 634.1711, F.S.;
50 allowing a consumer to purchase a service agreement
51 for a premium negotiated with the salesperson;
52 authorizing the service agreement company to establish
53 the premium rate; amending s. 634.403, F.S.; exempting
54 certain persons from service warranty licensure
55 requirements under certain circumstances; providing
56 effective dates.
57
58 Be It Enacted by the Legislature of the State of Florida:
59
60 Section 1. Subsection (17) of section 120.80, Florida
61 Statutes, is created to read:
62 120.80 Exceptions and special requirements; agencies.—
63 (17) DEPARTMENT OF FINANCIAL SERVICES.—Notwithstanding ss.
64 120.569, 120.57, and 120.60, if an applicant for licensure as an
65 agent or adjuster pursuant to the Florida Insurance Code has
66 been convicted of, or pled guilty or nolo contendere to, a
67 felony, the disqualifying periods have been met, and the
68 department has denied the application pursuant to s. 626.207(6),
69 the division shall have final order authority.
70 Section 2. Subsection (1) of section 440.12, Florida
71 Statutes, is amended to read:
72 440.12 Time for commencement and limits on weekly rate of
73 compensation.—
74 (1) No Compensation is not shall be allowed for the first 7
75 days of the disability, except for benefits provided under for
76 in s. 440.13. However, if the injury results in disability of
77 more than 21 days, compensation shall be allowed from the
78 commencement of the disability.
79 (a) All weekly compensation payments, except for the first
80 payment, shall be paid by check or, if authorized by the
81 employee, on a prepaid card pursuant to paragraph (b) or
82 deposited directly into the employee’s account at a financial
83 institution. As used in this subsection, the term “financial
84 institution” means a financial institution as defined in s.
85 655.005(1)(h).
86 (b) Upon receipt of authorization by the employee as
87 provided in paragraph (a), a carrier may use a prepaid card to
88 deliver compensation payments to an employee if the employee:
89 1. Has at least one means of accessing his or her entire
90 compensation payment once per week without incurring fees;
91 2. Has the ability to make point-of-sale purchases without
92 incurring fees from the financial institution issuing the
93 prepaid card; and
94 3. Is provided with terms and conditions of the prepaid
95 card program, including a description of any fees that may be
96 assessed.
97 (c) Each carrier shall keep a record of all payments made
98 under this subsection and the time and manner of such payments,
99 and shall furnish these records, or a report based on these
100 records, to the Division of Insurance Fraud and the Division of
101 Workers’ Compensation upon request.
102 (d) The department may adopt rules to administer this
103 subsection.
104 Section 3. Paragraph (a) of subsection (1) of section
105 440.20, Florida Statutes, is amended to read:
106 440.20 Time for payment of compensation and medical bills;
107 penalties for late payment.—
108 (1)(a) Unless the carrier it denies compensability or
109 entitlement to benefits, the carrier shall pay compensation
110 directly to the employee as required by ss. 440.14, 440.15, and
111 440.16, in accordance with the obligations set forth in those
112 such sections. Upon receipt of the employee’s authorization as
113 provided in s. 440.12(1) If authorized by the employee, the
114 carrier’s obligation to pay compensation directly to the
115 employee is satisfied when the carrier directly deposits, by
116 electronic transfer or other means, compensation into the
117 employee’s account at a financial institution or onto a prepaid
118 card in accordance with s. 440.12(1). As used in this paragraph,
119 the term “financial institution” means a financial institution
120 as defined in s. 655.005(1)(h). Compensation by direct deposit
121 or through the use of a prepaid card is considered paid on the
122 date the funds become available for withdrawal by the employee.
123 Section 4. Subsection (8) of section 624.402, Florida
124 Statutes, is amended to read:
125 624.402 Exceptions, certificate of authority required.—A
126 certificate of authority shall not be required of an insurer
127 with respect to:
128 (8) An insurer domiciled outside the United States covering
129 only persons who, at the time of issuance or renewal, are
130 nonresidents of the United States.
131 (a) In order to qualify for this exemption, the insurer:
132 1. Must register with the office via a letter of
133 notification upon commencing business from this state.
134 2. Must provide the following information to the office
135 annually by March 1:
136 a. The name of the insurer; the insurer’s country of
137 domicile; the address of the insurer’s principal office and
138 office in this state; the names of the owners of the insurer and
139 their percentage of ownership; the names of the officers and
140 directors of the insurer; the name, e-mail, and telephone number
141 of a contact person for the insurer; and the number of
142 individuals who are employed by the insurer or its affiliates in
143 this state;
144 b. The type of products offered by the insurer;
145 c. A statement from the applicable regulatory body of the
146 insurer’s domicile certifying that the insurer is licensed or
147 registered in that domicile; and
148 d. A copy of the filings required by the applicable
149 regulatory body of the insurer’s domicile.
150 3. Or any affiliated person as defined in s. 624.04 under
151 common ownership or control with the insurer, may not solicit,
152 sell, or accept an application for any insurance policy or
153 contract to be delivered or issued for delivery to any
154 individual other than a nonresident.
155 (b) All policies or certificates delivered to nonresidents
156 in this state must include the following statement in a
157 contrasting color and at least 10-point type: “The policy
158 providing your coverage and the insurer providing this policy
159 have not been approved by the Florida Office of Insurance
160 Regulation.”
161 (c) If the insurer ceases to do business from this state,
162 the insurer must agree to provide written notification to the
163 office within 30 days after cessation.
164 (d) Subject to the limitations contained in this
165 subsection, services, including those listed in s. 624.10, may
166 be provided by the insurer or an affiliated person as defined in
167 s. 624.04 under common ownership or control with the insurer.
168 (e) An alien insurer transacting insurance in this state
169 without complying with this subsection is in violation of this
170 chapter and subject to the penalties under s. 624.15.
171 (f) An insurer that holds a certificate of authority in
172 this state may issue and deliver policies to nonresidents at
173 temporary or secondary addresses in this state, along with a
174 notice that the policy form and rate is not subject to the
175 approval of the Office of Insurance Regulation.
176 (g) The term “nonresident” means an individual who resides
177 in and maintains a physical place of domicile in a country other
178 than the United States, which he or she recognizes as and
179 intends to maintain as his or her permanent home. The term does
180 not include an unauthorized immigrant present in the United
181 States. Notwithstanding any other provision of law, it is
182 conclusively presumed that an individual is a resident of the
183 United States if such individual:
184 1. Has had his or her principal place of domicile in the
185 United States for 180 days or more in the 365 days before
186 issuance or renewal the policy;
187 2. Has registered to vote in any state;
188 3. Has made a statement of domicile in any state; or
189 4. Has filed for homestead tax exemption on property in any
190 state.
191 (a) Life insurance policies or annuity contracts issued by
192 an insurer domiciled outside the United States covering only
193 persons who, at the time of issuance, are not residents of the
194 United States and are not nonresidents illegally residing in the
195 United States, provided:
196 1. The insurer must currently be an authorized insurer in
197 its country of domicile as to the kind or kinds of insurance
198 proposed to be offered and must have been such an insurer for
199 not fewer than the immediately preceding 3 years, or must be the
200 wholly owned subsidiary of such authorized insurer or must be
201 the wholly owned subsidiary of an already eligible authorized
202 insurer as to the kind or kinds of insurance proposed for a
203 period of not fewer than the immediately preceding 3 years.
204 However, the office may waive the 3-year requirement if the
205 insurer has operated successfully for a period of at least the
206 immediately preceding year and has capital and surplus of not
207 less than $25 million.
208 2. Before the office may grant eligibility, the requesting
209 insurer shall furnish the office with a duly authenticated copy
210 of its current annual financial statement, in English, and with
211 all monetary values therein expressed in United States dollars,
212 at an exchange rate then-current and shown in the statement, in
213 the case of statements originally made in the currencies of
214 other countries, and with such additional information relative
215 to the insurer as the office may request.
216 3. The insurer must have and maintain surplus as to
217 policyholders of not less than $15 million. Any such surplus as
218 to policyholders shall be represented by investments consisting
219 of eligible investments for like funds of like domestic insurers
220 under part II of chapter 625; however, any such surplus as to
221 policyholders may be represented by investments permitted by the
222 domestic regulator of such alien insurance company if such
223 investments are substantially similar in terms of quality,
224 liquidity, and security to eligible investments for like funds
225 of like domestic insurers under part II of chapter 625.
226 4. The insurer must be of good reputation as to the
227 providing of service to its policyholders and the payment of
228 losses and claims.
229 5. To maintain eligibility, the insurer shall furnish the
230 office within the time period specified in s. 624.424(1)(a) a
231 duly authenticated copy of its current annual and quarterly
232 financial statements, in English, and with all monetary values
233 therein expressed in United States dollars, at an exchange rate
234 then-current and shown in the statement, in the case of
235 statements originally made in the currencies of other countries,
236 and with such additional information relative to the insurer as
237 the office may request.
238 6. An insurer receiving eligibility under this subsection
239 shall agree to make its books and records pertaining to its
240 operations in this state available for inspection during normal
241 business hours upon request of the office.
242 7. The insurer shall provide to the applicant for the
243 policy or contract a copy of the most recent quarterly financial
244 statements of the insurer providing, in clear and conspicuous
245 language:
246 a. The date of organization of the insurer.
247 b. The identity of and rating assigned by each recognized
248 insurance company rating organization that has rated the insurer
249 or, if applicable, that the insurer is unrated.
250 c. That the insurer does not hold a certificate of
251 authority issued in this state and that the office does not
252 exercise regulatory oversight over the insurer.
253 d. The identity and address of the regulatory authority
254 exercising oversight of the insurer.
255
256 This paragraph does not impose upon the office any duty or
257 responsibility to determine the actual financial condition or
258 claims practices of any unauthorized insurer, and the status of
259 eligibility, if granted by the office, indicates only that the
260 insurer appears to be financially sound and to have satisfactory
261 claims practices and that the office has no credible evidence to
262 the contrary.
263 (b) If at any time the office has reason to believe that an
264 insurer issuing policies or contracts pursuant to this
265 subsection is insolvent or is in unsound financial condition,
266 does not make reasonable prompt payment of benefits, or is no
267 longer eligible under the conditions specified in this
268 subsection, the office may conduct an examination or
269 investigation in accordance with s. 624.316, s. 624.3161, or s.
270 624.320 and, if the findings of such examination or
271 investigation warrant, may withdraw the eligibility of the
272 insurer to issue policies or contracts pursuant to this
273 subsection without having a certificate of authority issued by
274 the office.
275 (c) This subsection does not provide an exception to the
276 agent licensure requirements of chapter 626. Any insurer issuing
277 policies or contracts pursuant to this subsection shall appoint
278 the agents that the insurer uses to sell such policies or
279 contracts as provided in chapter 626.
280 (d) An insurer issuing policies or contracts pursuant to
281 this subsection is subject to part IX of chapter 626, Unfair
282 Insurance Trade Practices, and the office may take such actions
283 against the insurer for a violation as are provided in that
284 part.
285 (e) Policies and contracts issued pursuant to this
286 subsection are not subject to the premium tax specified in s.
287 624.509.
288 (f) Applications for life insurance coverage offered under
289 this subsection must contain, in contrasting color and not less
290 than 12-point type, the following statement on the same page as
291 the applicant’s signature:
292
293 This policy is primarily governed by the laws of a
294 foreign country. As a result, all of the rating and
295 underwriting laws applicable to policies filed in this
296 state do not apply to this coverage, which may result
297 in your premiums being higher than would be
298 permissible under a Florida-approved policy. Any
299 purchase of individual life insurance should be
300 considered carefully, as future medical conditions may
301 make it impossible to qualify for another individual
302 life policy. If the insurer issuing your policy
303 becomes insolvent, this policy is not covered by the
304 Florida Life and Health Insurance Guaranty
305 Association. For information concerning individual
306 life coverage under a Florida-approved policy, consult
307 your agent or the Florida Department of Financial
308 Services.
309
310 (g) All life insurance policies and annuity contracts
311 issued pursuant to this subsection must contain on the first
312 page of the policy or contract, in contrasting color and not
313 less than 10-point type, the following statement:
314
315 The benefits of the policy providing your coverage are
316 governed primarily by the law of a country other than
317 the United States.
318
319 (h) All single-premium life insurance policies and single
320 premium annuity contracts issued to persons who are not
321 residents of the United States and are not nonresidents
322 illegally residing in the United States pursuant to this
323 subsection shall be subject to the provisions of chapter 896.
324 Section 5. Effective upon this act becoming a law, section
325 626.207, Florida Statutes, is amended to read:
326 626.207 Department rulemaking authority; waiting periods
327 for applicants; Penalties against licensees.—
328 (1) As used in this section, the term:
329 (a) “Financial services business” means any financial
330 activity regulated by the Department of Financial Services, the
331 Office of Insurance Regulation, or the Office of Financial
332 Regulation.
333 (b) “First-degree felony” and “capital felony” include all
334 felonies designated as such by state law, as well as any felony
335 so designated in the jurisdiction in which the plea is entered
336 or judgment is rendered.
337 (1) The department shall adopt rules establishing specific
338 waiting periods for applicants to become eligible for licensure
339 following denial, suspension, or revocation pursuant to s.
340 626.611, s. 626.621, s. 626.8437, s. 626.844, s. 626.935, s.
341 634.181, s. 634.191, s. 634.320, s. 634.321, s. 634.422, s.
342 634.423, s. 642.041, or s. 642.043. The purpose of the waiting
343 periods is to provide sufficient time to demonstrate reformation
344 of character and rehabilitation. The waiting periods shall vary
345 based on the type of conduct and the length of time since the
346 conduct occurred and shall also be based on the probability that
347 the propensity to commit illegal conduct has been overcome. The
348 waiting periods may be adjusted based on aggravating and
349 mitigating factors established by rule and consistent with this
350 purpose.
351 (2) An applicant who commits a first-degree felony; a
352 capital felony; a felony involving money laundering, fraud, or
353 embezzlement; or a felony directly related to a financial
354 services business is permanently barred from applying for a
355 license under this part. This bar applies to convictions, guilty
356 pleas, or nolo contendere pleas, regardless of adjudication, by
357 an applicant, officer, director, majority owner, partner,
358 manager, or other person who manages or controls an applicant.
359 (3) For all other crimes not included in subsection (2),
360 the department shall adopt rules establishing the process and
361 application of disqualifying periods:
362 (a) A 15-year disqualifying period for all felonies
363 involving moral turpitude that are not specifically included in
364 the permanent bar in subsection (2).
365 (b) A 7-year disqualifying period for all felonies to which
366 the permanent bar in subsection (2) and the 15 year
367 disqualifying period in paragraph (a) do not apply.
368 (c) A 7-year disqualifying period for all misdemeanors
369 directly related to the financial services business.
370 (4) The department shall adopt rules providing for
371 additional disqualifying periods due to the commitment of
372 multiple crimes and other factors reasonably related to the
373 applicant’s criminal history. The rules shall provide for
374 mitigating and aggravating factors. However, mitigation may not
375 result in a period of disqualification of less than 7 years and
376 may not mitigate the disqualifying periods in paragraphs (3)(b)
377 and (c).
378 (5) For purposes of this section, the disqualifying periods
379 begin upon the applicant’s final release from supervision or
380 upon completion of the applicant’s criminal sentence, including
381 payment of fines, restitution, and court costs, for the crime
382 for which the disqualifying period applies.
383 (6) After the disqualifying period has been met, the burden
384 is on the applicant to demonstrate that the applicant has been
385 rehabilitated, does not pose a risk to the insurance buying
386 public, is fit and trustworthy to engage in the business of
387 insurance pursuant to s. 626.611(7), and is otherwise qualified
388 for licensure. Hearings shall be conducted in accordance with s.
389 120.80(17).
390 (7)(2) The department shall adopt rules establishing
391 specific penalties against licensees in accordance with ss.
392 626.641 and 626.651 for violations of s. 626.611, s. 626.621, s.
393 626.8437, s. 626.844, s. 626.935, s. 634.181, s. 634.191, s.
394 634.320, s. 634.321, s. 634.422, s. 634.423, s. 642.041, or s.
395 642.043. The purpose of the revocation or suspension is to
396 provide a sufficient penalty to deter future violations of the
397 Florida Insurance Code. The imposition of a revocation or the
398 length of suspension shall be based on the type of conduct and
399 the probability that the propensity to commit further illegal
400 conduct has been overcome at the time of eligibility for
401 relicensure. The revocation or the length of suspension may be
402 adjusted based on aggravating or mitigating factors, established
403 by rule and consistent with this purpose.
404 (8) The provisions of s. 112.011 do not apply to applicants
405 for licensure under the Florida Insurance Code, including, but
406 not limited to agents, agencies, adjusters, adjusting firms,
407 customer representatives, or managing general agents.
408 Section 6. Paragraphs (a) and (b) of subsection (1),
409 paragraphs (a) and (b) of subsection (2), and subsection (4) of
410 section 627.4133, Florida Statutes, are amended to read:
411 627.4133 Notice of cancellation, nonrenewal, or renewal
412 premium.—
413 (1) Except as provided in subsection (2):
414 (a) An insurer issuing a policy providing coverage for
415 workers’ compensation and employer’s liability insurance,
416 property, casualty, except mortgage guaranty, surety, or marine
417 insurance, other than motor vehicle insurance subject to s.
418 627.728, shall give the first-named named insured at least 45
419 days’ advance written notice of nonrenewal or of the renewal
420 premium. If the policy is not to be renewed, the written notice
421 must shall state the reason or reasons as to why the policy is
422 not to be renewed. This requirement applies only if the insured
423 has furnished all of the necessary information so as to enable
424 the insurer to develop the renewal premium before prior to the
425 expiration date of the policy to be renewed.
426 (b) An insurer issuing a policy providing coverage for
427 property, casualty, except mortgage guaranty, surety, or marine
428 insurance, other than motor vehicle insurance subject to s.
429 627.728 or s. 627.7281, shall give the first-named named insured
430 written notice of cancellation or termination other than
431 nonrenewal at least 45 days before prior to the effective date
432 of the cancellation or termination, including in the written
433 notice the reason or reasons for the cancellation or
434 termination, except that:
435 1. If When cancellation is for nonpayment of premium, at
436 least 10 days’ written notice of cancellation accompanied by the
437 reason for cancellation must therefor shall be given. As used in
438 this subparagraph and s. 440.42(3), the term “nonpayment of
439 premium” means failure of the named insured to discharge when
440 due any of her or his obligations in connection with the payment
441 of premiums on a policy or any installment of such premium,
442 whether the premium is payable directly to the insurer or its
443 agent or indirectly under any premium finance plan or extension
444 of credit, or failure to maintain membership in an organization
445 if such membership is a condition precedent to insurance
446 coverage. The term “Nonpayment of premium” also means the
447 failure of a financial institution to honor an insurance
448 applicant’s check after delivery to a licensed agent for payment
449 of a premium, even if the agent has previously delivered or
450 transferred the premium to the insurer. If a dishonored check
451 represents the initial premium payment, the contract and all
452 contractual obligations are shall be void ab initio unless the
453 nonpayment is cured within the earlier of 5 days after actual
454 notice by certified mail is received by the applicant or 15 days
455 after notice is sent to the applicant by certified mail or
456 registered mail., and If the contract is void, any premium
457 received by the insurer from a third party must shall be
458 refunded to that party in full.; and
459 2. If When such cancellation or termination occurs during
460 the first 90 days during which the insurance is in force and the
461 insurance is canceled or terminated for reasons other than
462 nonpayment of premium, at least 20 days’ written notice of
463 cancellation or termination accompanied by the reason for
464 cancellation must therefor shall be given except where there has
465 been a material misstatement or misrepresentation or failure to
466 comply with the underwriting requirements established by the
467 insurer.
468
469 After the policy has been in effect for 90 days, no such policy
470 may not shall be canceled by the insurer except when there has
471 been a material misstatement, a nonpayment of premium, a failure
472 to comply with underwriting requirements established by the
473 insurer within 90 days after of the date of effectuation of
474 coverage, or a substantial change in the risk covered by the
475 policy or when the cancellation is for all insureds under such
476 policies for a given class of insureds. This subsection does not
477 apply to individually rated risks having a policy term of less
478 than 90 days.
479 (2) With respect to any personal lines or commercial
480 residential property insurance policy, including, but not
481 limited to, any homeowner’s, mobile home owner’s, farmowner’s,
482 condominium association, condominium unit owner’s, apartment
483 building, or other policy covering a residential structure or
484 its contents:
485 (a) The insurer shall give the first-named named insured at
486 least 45 days’ advance written notice of the renewal premium.
487 (b) The insurer shall give the first-named named insured
488 written notice of nonrenewal, cancellation, or termination at
489 least 100 days before prior to the effective date of the
490 nonrenewal, cancellation, or termination. However, the insurer
491 shall give at least 100 days’ written notice, or written notice
492 by June 1, whichever is earlier, for any nonrenewal,
493 cancellation, or termination that would be effective between
494 June 1 and November 30. The notice must include the reason or
495 reasons for the nonrenewal, cancellation, or termination, except
496 that:
497 1. The insurer shall give the first-named named insured
498 written notice of nonrenewal, cancellation, or termination at
499 least 180 days before prior to the effective date of the
500 nonrenewal, cancellation, or termination for a first-named named
501 insured whose residential structure has been insured by that
502 insurer or an affiliated insurer for at least a 5-year period
503 immediately before prior to the date of the written notice.
504 2. If When cancellation is for nonpayment of premium, at
505 least 10 days’ written notice of cancellation accompanied by the
506 reason for cancellation must therefor shall be given. As used in
507 this subparagraph, the term “nonpayment of premium” means
508 failure of the named insured to discharge when due any of her or
509 his obligations in connection with the payment of premiums on a
510 policy or any installment of such premium, whether the premium
511 is payable directly to the insurer or its agent or indirectly
512 under any premium finance plan or extension of credit, or
513 failure to maintain membership in an organization if such
514 membership is a condition precedent to insurance coverage. The
515 term “Nonpayment of premium” also means the failure of a
516 financial institution to honor an insurance applicant’s check
517 after delivery to a licensed agent for payment of a premium,
518 even if the agent has previously delivered or transferred the
519 premium to the insurer. If a dishonored check represents the
520 initial premium payment, the contract and all contractual
521 obligations are shall be void ab initio unless the nonpayment is
522 cured within the earlier of 5 days after actual notice by
523 certified mail is received by the applicant or 15 days after
524 notice is sent to the applicant by certified mail or registered
525 mail., and If the contract is void, any premium received by the
526 insurer from a third party must shall be refunded to that party
527 in full.
528 3. If When such cancellation or termination occurs during
529 the first 90 days during which the insurance is in force and the
530 insurance is canceled or terminated for reasons other than
531 nonpayment of premium, at least 20 days’ written notice of
532 cancellation or termination accompanied by the reason for
533 cancellation must therefor shall be given except where there has
534 been a material misstatement or misrepresentation or failure to
535 comply with the underwriting requirements established by the
536 insurer.
537 4. The requirement for providing written notice of
538 nonrenewal by June 1 of any nonrenewal that would be effective
539 between June 1 and November 30 does not apply to the following
540 situations, but the insurer remains subject to the requirement
541 to provide such notice at least 100 days before prior to the
542 effective date of nonrenewal:
543 a. A policy that is nonrenewed due to a revision in the
544 coverage for sinkhole losses and catastrophic ground cover
545 collapse pursuant to s. 627.706, as amended by s. 30, chapter
546 2007-1, Laws of Florida.
547 b. A policy that is nonrenewed by Citizens Property
548 Insurance Corporation, pursuant to s. 627.351(6), for a policy
549 that has been assumed by an authorized insurer offering
550 replacement or renewal coverage to the policyholder.
551
552 After the policy has been in effect for 90 days, the policy may
553 shall not be canceled by the insurer except when there has been
554 a material misstatement, a nonpayment of premium, a failure to
555 comply with underwriting requirements established by the insurer
556 within 90 days of the date of effectuation of coverage, or a
557 substantial change in the risk covered by the policy or if when
558 the cancellation is for all insureds under such policies for a
559 given class of insureds. This paragraph does not apply to
560 individually rated risks having a policy term of less than 90
561 days.
562 (4) Notwithstanding the provisions of s. 440.42(3), if
563 cancellation of a policy providing coverage for workers’
564 compensation and employer’s liability insurance is requested in
565 writing by the insured, such cancellation is shall be effective
566 on the date requested by the insured, or if no date is
567 specified, cancellation is effective as of the date of the
568 written request the carrier sends the notice of cancellation to
569 the insured. The carrier is not required to send notice of
570 cancellation to the insured if the cancellation is requested in
571 writing. Any retroactive assumption of coverage and liabilities
572 under a policy providing workers’ compensation and employer’s
573 liability insurance may not exceed 21 days.
574 Section 7. Subsection (3) is added to section 627.4137,
575 Florida Statutes, to read:
576 627.4137 Disclosure of certain information required.—
577 (3) Any request made to a self-insured corporation pursuant
578 to this section shall be sent by certified mail to the
579 registered agent of the disclosing entity.
580 Section 8. Section 627.442, Florida Statutes, is amended to
581 read:
582 627.442 Insurance contracts.—
583 (1) A person who requires a workers’ compensation insurance
584 policy pursuant to a construction contract may not reject a
585 workers’ compensation insurance policy issued by a self
586 insurance fund that is subject to part V of chapter 631 based
587 upon the self-insurance fund not being rated by a nationally
588 recognized insurance rating service.
589 (2) Notwithstanding s. 440.381(3), premium audits are not
590 required for workers’ compensation or property and casualty
591 coverages, except as provided by the insurance policy, by an
592 order of the office, or at least every 2 years if requested by
593 the employer.
594 Section 9. Subsection (2) of section 627.7277, Florida
595 Statutes, is amended to read:
596 627.7277 Notice of renewal premium.—
597 (2) An insurer shall mail or deliver to the first-named
598 insured its policyholder at least 30 days’ advance written
599 notice of the renewal premium for the policy.
600 Section 10. Paragraph (a) of subsection (3), paragraphs (a)
601 and (d) of subsection (4), and subsections (5) and (6) of
602 section 627.728, Florida Statutes, are amended to read:
603 627.728 Cancellations; nonrenewals.—
604 (3)(a) No Notice of cancellation of a policy to which this
605 section applies is not shall be effective unless mailed or
606 delivered by the insurer to the first-named named insured and to
607 the first-named named insured’s insurance agent at least 45 days
608 before prior to the effective date of cancellation, except that,
609 if when cancellation is for nonpayment of premium, at least 10
610 days’ notice of cancellation accompanied by the reason for
611 cancellation must therefor shall be given. A No notice of
612 cancellation is not of a policy to which this section applies
613 shall be effective unless the reason or reasons for cancellation
614 accompany the notice of cancellation.
615 (4)(a) An No insurer must shall fail to renew a policy
616 unless it mails or delivers to the first-named named insured, at
617 the address shown in the policy, and to the first-named named
618 insured’s insurance agent at her or his business address, at
619 least 45 days’ advance notice of its intention not to renew; and
620 the reasons for refusal to renew must accompany such notice.
621 This subsection does not apply:
622 1. If the insurer has manifested its willingness to renew;
623 or
624 2. In case of nonpayment of premium.
625
626 Notwithstanding the failure of an insurer to comply with this
627 subsection, the policy terminates shall terminate on the
628 effective date of any other automobile liability insurance
629 policy procured by the insured with respect to any automobile
630 designated in both policies. Unless a written explanation for
631 refusal to renew accompanies the notice of intention not to
632 renew, the policy remains shall remain in full force and effect.
633 (d) Instead of canceling or nonrenewing a policy, an
634 insurer may, upon expiration of the policy term, transfer a
635 policy to another insurer under the same ownership or management
636 as the transferring insurer, by giving the first-named named
637 insured at least 45 days’ advance notice of its intent to
638 transfer the policy and of the premium and the specific reasons
639 for any increase in the premium.
640 (5) United States postal proof of mailing or certified or
641 registered mailing of notice of cancellation, of intention not
642 to renew, or of reasons for cancellation, or of the intention of
643 the insurer to issue a policy by an insurer under the same
644 ownership or management, to the first-named named insured at the
645 address shown in the policy is shall be sufficient proof of
646 notice.
647 (6) If When a policy is canceled, other than for nonpayment
648 of premium, or in the event of failure to renew a policy to
649 which subsection (4) applies, the insurer shall notify the
650 first-named named insured of her or his possible eligibility for
651 insurance through the Automobile Joint Underwriting Association.
652 Such notice must shall accompany or be included in the notice of
653 cancellation or the notice of intent not to renew and shall
654 state that the such notice of availability of the Automobile
655 Joint Underwriting Association is given pursuant to this
656 section.
657 Section 11. Section 627.7281, Florida Statutes, is amended
658 to read:
659 627.7281 Cancellation notice.—An insurer issuing a policy
660 of motor vehicle insurance not covered under the cancellation
661 provisions of s. 627.728 shall give the first-named named
662 insured notice of cancellation at least 45 days before prior to
663 the effective date of cancellation, except that if, when
664 cancellation is for nonpayment of premium, at least 10 days’
665 notice of cancellation accompanied by the reason for
666 cancellation must therefor shall be given. As used in this
667 section, the term “policy” does not include a binder as defined
668 in s. 627.420 unless the duration of the binder period exceeds
669 60 days.
670 Section 12. Section 634.1711, Florida Statutes, is created
671 to read:
672 634.1711 Premium payable.—Notwithstanding s. 634.1815 and
673 s. 634.282(6), (7), and (13), a consumer may purchase a service
674 agreement for a premium amount negotiated with the salesperson.
675 The service agreement company is responsible for establishing
676 minimum premium rates to ensure its solvency under this part.
677 Other than the premium rates, no other terms or conditions of
678 the service agreement may be revised, amended, or changed by the
679 salesperson.
680 Section 13. Section 634.403, Florida Statutes, is amended
681 to read:
682 634.403 License required; exemptions.—
683 (1) No person in this state shall provide or offer to
684 provide service warranties to residents of this state unless
685 authorized therefor under a subsisting license issued by the
686 office. The service warranty association shall pay to the office
687 a license fee of $200 for such license for each license year, or
688 part thereof, the license is in force.
689 (2) An insurer, while authorized to transact property or
690 casualty insurance in this state, may also transact a service
691 warranty business without additional qualifications or
692 authority, but is shall be otherwise subject to the applicable
693 provisions of this part.
694 (3) The office may, pursuant to s. 120.569, in its
695 discretion and without advance notice and hearing, issue an
696 immediate final order to cease and desist to any person or
697 entity which violates this section. The Legislature finds that a
698 violation of this section constitutes an imminent and immediate
699 threat to the public health, safety, and welfare of the
700 residents of this state.
701 (4) Any person that is an affiliate of a domestic insurer
702 as defined in chapter 624 is exempt from application of this
703 part if the person does not issue, or market or cause to be
704 marketed, service warranties to residents of this state and does
705 not administer service warranties that were originally issued to
706 residents of this state. The domestic insurer or its wholly
707 owned Florida licensed insurer must be the direct obligor of all
708 service warranties issued by such affiliate or must issue a
709 contractual liability insurance policy to such affiliate that
710 meets the conditions described in s. 634.406(3). If the office
711 of Insurance Regulation determines, after notice and opportunity
712 for a hearing, that a person’s intentional business practices do
713 not comply with any of the exemption requirements of this
714 subsection, the person is shall be subject to this part.
715 (5) A person is exempt from licensure under this section if
716 it complies with the following:
717 (a) The service warranties are sold only to persons who are
718 not residents of this state and the person does not issue,
719 market, or cause to be marketed service warranties to residents
720 of this state and does not administer service warranties that
721 were originally issued to residents of this state.
722 (b) The person submits a letter of notification to the
723 office upon the start of business from this state and annually
724 by March 1, which provides the following information:
725 1. The type of products offered and a statement certifying
726 that the products are not regulated in the state in which it is
727 transacting business or that the person is licensed in the state
728 in which it is transacting business.
729 2. The name of the person; the state of domicile; the home
730 address and Florida address of the person; the names of the
731 owners and their percentage of ownership; the names of the
732 officers and directors; the name, e-mail, and telephone number
733 of a contact person; the states in which it is transacting
734 business; and how many individuals are employed in this state.
735 (c) If the person ceases to do business from this state, it
736 provides written notification to the office within 30 days after
737 cessation.
738 (6)(5) Any person who provides, offers to provide, or holds
739 oneself out as providing or offering to provide a service
740 warranty to residents of in this state or from this state
741 without holding a subsisting license commits, in addition to any
742 other violation, a misdemeanor of the first degree, punishable
743 as provided in s. 775.082 or s. 775.083.
744 Section 14. Except as otherwise expressly provided in this
745 act and except for this section, which shall take effect upon
746 this act becoming a law, this act shall take effect July 1,
747 2011.