Florida Senate - 2014                      CS for CS for SB 1260
       
       
        
       By the Committees on Appropriations; and Banking and Insurance;
       and Senators Brandes and Soto
       
       
       
       
       576-04548-14                                          20141260c2
    1                        A bill to be entitled                      
    2         An act relating to insurance; amending s. 624.4625,
    3         F.S.; revising requirements for corporations not for
    4         profit to qualify to form a self-insurance fund;
    5         amending s. 624.501, F.S.; revising original
    6         appointment and renewal fees related to certain
    7         insurance representatives; amending s. 626.015, F.S.;
    8         defining the term “unaffiliated insurance agent”;
    9         amending s. 626.0428, F.S.; requiring a branch place
   10         of business to have an agent in charge; authorizing an
   11         agent to be in charge of more than one branch office
   12         under certain circumstances; providing requirements
   13         relating to the designation of an agent in charge;
   14         prohibiting an insurance agency from conducting
   15         insurance business at a location without a designated
   16         agent in charge; providing that the agent in charge is
   17         accountable for misconduct and violations committed by
   18         the licensee and any person under his or her
   19         supervision; amending s. 626.112, F.S.; prohibiting
   20         limited customer representative licenses from being
   21         issued after a specified date; providing licensure
   22         exemptions that allow specified individuals or
   23         entities to conduct insurance business at specified
   24         locations under certain circumstances; revising
   25         licensure requirements and penalties with respect to
   26         registered insurance agencies; providing that the
   27         registration of an approved registered insurance
   28         agency automatically converts to an insurance agency
   29         license on a specified date; amending s. 626.172,
   30         F.S.; revising requirements relating to applications
   31         for insurance agency licenses; conforming provisions
   32         to changes made by the act; amending s. 626.311, F.S.;
   33         limiting the types of business that may be transacted
   34         by certain agents; amending s. 626.321, F.S.;
   35         providing that a limited license to offer motor
   36         vehicle rental insurance issued to a business that
   37         rents or leases motor vehicles encompasses the
   38         employees of such business; amending s. 626.382, F.S.;
   39         providing that an insurance agency license continues
   40         in force until canceled, suspended, revoked,
   41         terminated, or expired; amending s. 626.601, F.S.;
   42         revising terminology relating to investigations
   43         conducted by the Department of Financial Services and
   44         the Office of Insurance Regulation with respect to
   45         individuals and entities involved in the insurance
   46         industry; revising a confidentiality provision;
   47         amending s. 626.621, F.S.; providing an additional
   48         ground for disciplinary action against the license or
   49         appointment of certain insurance-related personnel for
   50         accepting compensation for referring the owner of a
   51         property to an inspector or inspection company;
   52         repealing s. 626.747, F.S., relating to branch
   53         agencies, agents in charge, and the payment of
   54         additional county tax under certain circumstances;
   55         amending s. 626.8411, F.S.; conforming a cross
   56         reference; amending s. 626.854, F.S.; deleting the
   57         requirement that a 48 hours’ notice be provided before
   58         scheduling an onsite inspection of insured property;
   59         conforming a cross-reference; amending s. 626.8805,
   60         F.S.; revising insurance administrator application
   61         requirements; amending s. 626.8817, F.S.; authorizing
   62         an insurer’s designee to provide certain coverage
   63         information to an insurance administrator; authorizing
   64         an insurer to subcontract the review of an insurance
   65         administrator; amending s. 626.882, F.S.; prohibiting
   66         a person from acting as an insurance administrator
   67         without a specific written agreement; amending s.
   68         626.883, F.S.; requiring an insurance administrator to
   69         furnish fiduciary account records to an insurer;
   70         requiring administrator withdrawals from a fiduciary
   71         account to be made according to a specific written
   72         agreement; providing that an insurer’s designee may
   73         authorize payment of claims; amending s. 626.884,
   74         F.S.; revising an insurer’s right of access to certain
   75         administrator records; amending s. 626.89, F.S.;
   76         revising the deadline for filing certain financial
   77         statements; deleting provisions allowing an extension
   78         for administrator to submit certain financial
   79         statements; amending s. 626.931, F.S.; deleting
   80         provisions requiring a surplus lines agent to file a
   81         quarterly affidavit with the Florida Surplus Lines
   82         Service Office; amending s. 626.932, F.S.; revising
   83         the due date of surplus lines tax; amending ss.
   84         626.935 and 626.936, F.S.; conforming provisions to
   85         changes made by the act; amending s. 626.9541, F.S.;
   86         revising provisions for unfair methods of competition
   87         and unfair or deceptive acts relating to conducting
   88         certain insurance transactions through credit card
   89         facilities; amending s. 627.062, F.S.; authorizing the
   90         Office of Insurance Regulation to use a straight
   91         average of model results or output ranges to estimate
   92         hurricane losses when determining whether the rates in
   93         a rate filing are excessive, inadequate, or unfairly
   94         discriminatory; amending s. 627.0628, F.S.; increasing
   95         the length of time during which an insurer must adhere
   96         to certain findings made by the Commission on
   97         Hurricane Loss Projection Methodology with respect to
   98         certain methods, principles, standards, models, or
   99         output ranges used in a rate filing; providing that
  100         the requirement to adhere to such findings does not
  101         limit an insurer from using straight averages of model
  102         results or output ranges under specified
  103         circumstances; amending s. 627.0651, F.S.; revising
  104         provisions for making and use of rates for motor
  105         vehicle insurance; amending s. 627.0653, F.S.;
  106         authorizing the office to approve motor vehicle
  107         premium discounts for vehicles equipped with
  108         electronic crash avoidance technology; amending s.
  109         627.072, F.S.; authorizing retrospective rating plans
  110         relating to workers’ compensation and employer’s
  111         liability insurance to allow negotiations between
  112         certain employers and insurers with respect to rating
  113         factors used to calculate premiums; amending s.
  114         627.281, F.S.; conforming a cross-reference; amending
  115         s. 627.311, F.S.; providing that certain dividends may
  116         be retained by the joint underwriting plan for future
  117         use; amending s. 627.3518, F.S.; conforming a cross
  118         reference; repealing s. 627.3519, F.S., relating to an
  119         annual report on the aggregate report of maximum
  120         losses of the Florida Hurricane Catastrophe Fund and
  121         Citizens Property Insurance Corporation; amending s.
  122         627.409, F.S.; providing that a claim for residential
  123         property insurance may not be denied based on certain
  124         credit information; amending s. 627.4133, F.S.;
  125         extending the period for prior notice required with
  126         respect to the nonrenewal, cancellation, or
  127         termination of certain insurance policies; deleting
  128         certain provisions that require extended periods of
  129         prior notice with respect to the nonrenewal,
  130         cancellation, or termination of certain insurance
  131         policies; prohibiting the cancellation of certain
  132         policies that have been in effect for a specified
  133         amount of time, except under certain circumstances;
  134         prohibiting the cancellation of a policy or contract
  135         that has been in effect for a specified amount of time
  136         based on certain credit information; amending s.
  137         627.4137, F.S.; adding licensed company adjusters to
  138         the list of persons who may respond to a claimant’s
  139         written request for information relating to liability
  140         insurance coverage; amending s. 627.421, F.S.;
  141         authorizing a policyholder of personal lines insurance
  142         to affirmatively elect delivery of policy documents by
  143         electronic means; amending s. 627.43141, F.S.;
  144         authorizing a notice of change in policy terms to be
  145         sent in a separate mailing to an insured under certain
  146         circumstances; requiring an insurer to provide such
  147         notice to the insured’s insurance agent; creating s.
  148         627.4553, F.S.; providing requirements for the
  149         recommendation to surrender an annuity or life
  150         insurance policy; amending s. 627.7015, F.S.; revising
  151         the rulemaking authority of the department with
  152         respect to qualifications and specified types of
  153         penalties covered under the property insurance
  154         mediation program; creating s. 627.70151, F.S.;
  155         providing criteria for an insurer or policyholder to
  156         challenge the impartiality of a loss appraisal umpire
  157         for purposes of disqualifying such umpire; amending s.
  158         627.706, F.S.; revising the definition of the term
  159         “neutral evaluator”; amending s. 627.7074, F.S.;
  160         revising notification requirements for participation
  161         in the neutral evaluation program; providing grounds
  162         for the department to deny an application, or suspend
  163         or revoke certification, of a neutral evaluator;
  164         requiring the department to adopt rules relating to
  165         certification of neutral evaluators; amending s.
  166         627.711, F.S.; revising verification requirements for
  167         uniform mitigation verification forms; amending s.
  168         627.7283, F.S.; providing for the electronic transfer
  169         of unearned premiums returned when a policy is
  170         canceled; amending s. 627.736, F.S.; revising the time
  171         period for applicability of certain Medicare fee
  172         schedules or payment limitations; amending s. 627.744,
  173         F.S.; revising preinsurance inspection requirements
  174         for private passenger motor vehicles; amending s.
  175         627.745, F.S.; revising qualifications for approval as
  176         a mediator by the department; providing grounds for
  177         the department to deny an application, or suspend or
  178         revoke approval of a mediator or certification of a
  179         neutral evaluator; authorizing the department to adopt
  180         rules; amending s. 627.782, F.S.; revising the date by
  181         which title insurance agencies and certain insurers
  182         must annually submit specified information to the
  183         Office of Insurance Regulation; amending s. 628.461,
  184         F.S.; revising filing requirements relating to the
  185         acquisition of controlling stock; revising the amount
  186         of outstanding voting securities of a domestic stock
  187         insurer or a controlling company that a person is
  188         prohibited from acquiring unless certain requirements
  189         have been met; prohibiting persons acquiring a certain
  190         percentage of voting securities from acquiring certain
  191         securities; providing that a presumption of control
  192         may be rebutted by filing a disclaimer of control;
  193         deleting a definition; amending ss. 631.717 and
  194         631.734, F.S.; transferring a provision relating to
  195         the obligations of the Florida Life and Health
  196         Insurance Guaranty Association; amending s. 634.406,
  197         F.S.; revising criteria authorizing premiums of
  198         certain service warranty associations to exceed their
  199         specified net assets limitations; revising
  200         requirements relating to contractual liability
  201         policies that insure warranty associations; providing
  202         effective dates.
  203          
  204  Be It Enacted by the Legislature of the State of Florida:
  205  
  206         Section 1. Paragraph (b) of subsection (1) of section
  207  624.4625, Florida Statutes, is amended to read:
  208         624.4625 Corporation not for profit self-insurance funds.—
  209         (1) Notwithstanding any other provision of law, any two or
  210  more corporations not for profit located in and organized under
  211  the laws of this state may form a self-insurance fund for the
  212  purpose of pooling and spreading liabilities of its group
  213  members in any one or combination of property or casualty risk,
  214  provided the corporation not for profit self-insurance fund that
  215  is created:
  216         (b) Requires for qualification that each participating
  217  member receive at least 75 percent of its revenues from local,
  218  state, or federal governmental sources or a combination of such
  219  sources, or qualify as a publicly supported organization under
  220  s. 501(c)(3) or s. 4947(a)(1) of the United States Internal
  221  Revenue Code which normally receives a substantial part of its
  222  support from a governmental unit or from the general public as
  223  evidenced on the organization’s most recently filed Internal
  224  Revenue Service Form 990 or 990-EZ, Schedule A.
  225         Section 2. Paragraphs (a) and (c) of subsection (6) and
  226  subsections (7) and (8) of section 624.501, Florida Statutes,
  227  are amended to read:
  228         624.501 Filing, license, appointment, and miscellaneous
  229  fees.—The department, commission, or office, as appropriate,
  230  shall collect in advance, and persons so served shall pay to it
  231  in advance, fees, licenses, and miscellaneous charges as
  232  follows:
  233         (6) Insurance representatives, property, marine, casualty,
  234  and surety insurance.
  235         (a) Agent’s original appointment and biennial renewal or
  236  continuation thereof, each insurer or unaffiliated agent making
  237  an appointment:
  238  Appointment fee...........................................$42.00
  239  State tax..................................................12.00
  240  County tax..................................................6.00
  241  Total.....................................................$60.00
  242         (c) Nonresident agent’s original appointment and biennial
  243  renewal or continuation thereof, appointment fee, each insurer
  244  or unaffiliated agent making an appointment...............$60.00
  245         (7) Life insurance agents.
  246         (a) Agent’s original appointment and biennial renewal or
  247  continuation thereof, each insurer or unaffiliated agent making
  248  an appointment:
  249  Appointment fee...........................................$42.00
  250  State tax..................................................12.00
  251  County tax..................................................6.00
  252  Total.....................................................$60.00
  253         (b) Nonresident agent’s original appointment and biennial
  254  renewal or continuation thereof, appointment fee, each insurer
  255  or unaffiliated agent making an appointment...............$60.00
  256         (8) Health insurance agents.
  257         (a) Agent’s original appointment and biennial renewal or
  258  continuation thereof, each insurer or unaffiliated agent making
  259  an appointment:
  260  Appointment fee...........................................$42.00
  261  State tax..................................................12.00
  262  County tax..................................................6.00
  263  Total.....................................................$60.00
  264         (b) Nonresident agent’s original appointment and biennial
  265  renewal or continuation thereof, appointment fee, each insurer
  266  or unaffiliated agent making an appointment...............$60.00
  267         Section 3. Present subsection (18) of section 626.015,
  268  Florida Statutes, is renumbered as subsection (19), and a new
  269  subsection (18) is added to that section, to read:
  270         626.015 Definitions.—As used in this part:
  271         (18) “Unaffiliated insurance agent” means a licensed
  272  insurance agent, except a limited lines agent, who is self
  273  appointed and who practices as an independent consultant in the
  274  business of analyzing or abstracting insurance policies,
  275  providing insurance advice or counseling, or making specific
  276  recommendations or comparisons of insurance products for a fee
  277  established in advance by written contract signed by the
  278  parties. An unaffiliated insurance agent may not be affiliated
  279  with an insurer, insurer-appointed insurance agent, or insurance
  280  agency contracted with or employing insurer-appointed insurance
  281  agents.
  282         Section 4. Effective January 1, 2015, section 626.0428,
  283  Florida Statutes, is amended to read:
  284         626.0428 Agency personnel powers, duties, and limitations.—
  285         (1) An individual employed by an agent or agency on salary
  286  who devotes full time to clerical work, with incidental taking
  287  of insurance applications or quoting or receiving premiums on
  288  incoming inquiries in the office of the agent or agency, is not
  289  deemed to be an agent or customer representative if his or her
  290  compensation does not include in whole or in part any
  291  commissions on such business and is not related to the
  292  production of applications, insurance, or premiums.
  293         (2) An employee or authorized representative located at a
  294  designated branch of an agent or agency may not bind insurance
  295  coverage unless licensed and appointed as an agent or customer
  296  representative.
  297         (3) An employee or authorized representative of an agent or
  298  agency may not initiate contact with any person for the purpose
  299  of soliciting insurance unless licensed and appointed as an
  300  agent or customer representative. As to title insurance, an
  301  employee of an agent or agency may not initiate contact with any
  302  individual proposed insured for the purpose of soliciting title
  303  insurance unless licensed as a title insurance agent or exempt
  304  from such licensure pursuant to s. 626.8417(4).
  305         (4)(a) Each place of business established by an agent or
  306  agency, firm, corporation, or association must be in the active
  307  full-time charge of a licensed and appointed agent holding the
  308  required agent licenses to transact the lines of insurance being
  309  handled at the location.
  310         (b) Notwithstanding paragraph (a), the licensed agent in
  311  charge of an insurance agency may also be the agent in charge of
  312  additional branch office locations of the agency if insurance
  313  activities requiring licensure as an insurance agent do not
  314  occur at any location when an agent is not physically present
  315  and unlicensed employees at the location do not engage in
  316  insurance activities requiring licensure as an insurance agent
  317  or customer representative.
  318         (c) An insurance agency and each branch place of business
  319  of an insurance agency shall designate an agent in charge and
  320  file the name and license number of the agent in charge and the
  321  physical address of the insurance agency location with the
  322  department and the department’s website. The designation of the
  323  agent in charge may be changed at the option of the agency. A
  324  change of the designated agent in charge is effective upon
  325  notice to the department. Notice to the department must be
  326  provided within 30 days after such change.
  327         (d) An insurance agency location may not conduct the
  328  business of insurance unless an agent in charge is designated by
  329  and providing services to the agency at all times. If the agent
  330  in charge designated with the department ends his or her
  331  affiliation with the agency for any reason and the agency fails
  332  to designate another agent in charge within 30 days as provided
  333  in paragraph (c) and such failure continues for 90 days, the
  334  agency license automatically expires on the 91st day after the
  335  date the designated agent in charge ended his or her affiliation
  336  with the agency.
  337         (e) For purposes of this subsection, an “agent in charge”
  338  is the licensed and appointed agent responsible for the
  339  supervision of all individuals within an insurance agency
  340  location, regardless of whether the agent in charge handles a
  341  specific transaction or deals with the general public in the
  342  solicitation or negotiation of insurance contracts or the
  343  collection or accounting of money.
  344         (f) An agent in charge of an insurance agency is
  345  accountable for the wrongful acts, misconduct, or violations of
  346  this code committed by the licensee or by any person under his
  347  or her supervision while acting on behalf of the agency.
  348  However, an agent in charge is not criminally liable for any act
  349  unless the agent in charge personally committed the act or knew
  350  or should have known of the act and of the facts constituting a
  351  violation of this code.
  352         Section 5. Paragraph (b) of subsection (1) and subsection
  353  (7) of section 626.112, Florida Statutes, is amended to read:
  354         626.112 License and appointment required; agents, customer
  355  representatives, adjusters, insurance agencies, service
  356  representatives, managing general agents.—
  357         (1)
  358         (b) Except as provided in subsection (6) or in applicable
  359  department rules, and in addition to other conduct described in
  360  this chapter with respect to particular types of agents, a
  361  license as an insurance agent, service representative, customer
  362  representative, or limited customer representative is required
  363  in order to engage in the solicitation of insurance. Effective
  364  October 1, 2014, limited customer representative licenses may
  365  not be issued. For purposes of this requirement, as applicable
  366  to any of the license types described in this section, the
  367  solicitation of insurance is the attempt to persuade any person
  368  to purchase an insurance product by:
  369         1. Describing the benefits or terms of insurance coverage,
  370  including premiums or rates of return;
  371         2. Distributing an invitation to contract to prospective
  372  purchasers;
  373         3. Making general or specific recommendations as to
  374  insurance products;
  375         4. Completing orders or applications for insurance
  376  products;
  377         5. Comparing insurance products, advising as to insurance
  378  matters, or interpreting policies or coverages; or
  379         6. Offering or attempting to negotiate on behalf of another
  380  person a viatical settlement contract as defined in s. 626.9911.
  381  
  382  However, an employee leasing company licensed under pursuant to
  383  chapter 468 which is seeking to enter into a contract with an
  384  employer that identifies products and services offered to
  385  employees may deliver proposals for the purchase of employee
  386  leasing services to prospective clients of the employee leasing
  387  company setting forth the terms and conditions of doing
  388  business; classify employees as permitted by s. 468.529; collect
  389  information from prospective clients and other sources as
  390  necessary to perform due diligence on the prospective client and
  391  to prepare a proposal for services; provide and receive
  392  enrollment forms, plans, and other documents; and discuss or
  393  explain in general terms the conditions, limitations, options,
  394  or exclusions of insurance benefit plans available to the client
  395  or employees of the employee leasing company were the client to
  396  contract with the employee leasing company. Any advertising
  397  materials or other documents describing specific insurance
  398  coverages must identify and be from a licensed insurer or its
  399  licensed agent or a licensed and appointed agent employed by the
  400  employee leasing company. The employee leasing company may not
  401  advise or inform the prospective business client or individual
  402  employees of specific coverage provisions, exclusions, or
  403  limitations of particular plans. As to clients for which the
  404  employee leasing company is providing services pursuant to s.
  405  468.525(4), the employee leasing company may engage in
  406  activities permitted by ss. 626.7315, 626.7845, and 626.8305,
  407  subject to the restrictions specified in those sections. If a
  408  prospective client requests more specific information concerning
  409  the insurance provided by the employee leasing company, the
  410  employee leasing company must refer the prospective business
  411  client to the insurer or its licensed agent or to a licensed and
  412  appointed agent employed by the employee leasing company.
  413         Section 6. Effective January 1, 2015, subsection (7) of
  414  section 626.112, Florida Statutes, is amended to read:
  415         626.112 License and appointment required; agents, customer
  416  representatives, adjusters, insurance agencies, service
  417  representatives, managing general agents.—
  418         (7)(a) An Effective October 1, 2006, no individual, firm,
  419  partnership, corporation, association, or any other entity may
  420  not shall act in its own name or under a trade name, directly or
  421  indirectly, as an insurance agency, unless it possesses complies
  422  with s. 626.172 with respect to possessing an insurance agency
  423  license issued pursuant to s. 626.172 for each place of business
  424  at which it engages in any activity that which may be performed
  425  only by a licensed insurance agent. However, an insurance agency
  426  that is owned and operated by a single licensed agent conducting
  427  business in his or her individual name and not employing or
  428  otherwise using the services of or appointing other licensees is
  429  exempt from the agency licensing requirements of this
  430  subsection.
  431         (b) A branch place of business which is established by a
  432  licensed agency is considered a branch agency and is not
  433  required to be licensed if it transacts business under the same
  434  name and federal tax identification number as the licensed
  435  agency, has designated a licensed agent in charge of the
  436  location as required by s. 626.0428, and has submitted the
  437  address and telephone number of the location to the department
  438  for inclusion in the licensing record of the licensed agency
  439  within 30 days after insurance transactions begin at the
  440  location Each agency engaged in business in this state before
  441  January 1, 2003, which is wholly owned by insurance agents
  442  currently licensed and appointed under this chapter, each
  443  incorporated agency whose voting shares are traded on a
  444  securities exchange, each agency designated and subject to
  445  supervision and inspection as a branch office under the rules of
  446  the National Association of Securities Dealers, and each agency
  447  whose primary function is offering insurance as a service or
  448  member benefit to members of a nonprofit corporation may file an
  449  application for registration in lieu of licensure in accordance
  450  with s. 626.172(3). Each agency engaged in business before
  451  October 1, 2006, shall file an application for licensure or
  452  registration on or before October 1, 2006.
  453         (c)1. If an agency is required to be licensed but fails to
  454  file an application for licensure in accordance with this
  455  section, the department shall impose on the agency an
  456  administrative penalty in an amount of up to $10,000.
  457         2. If an agency is eligible for registration but fails to
  458  file an application for registration or an application for
  459  licensure in accordance with this section, the department shall
  460  impose on the agency an administrative penalty in an amount of
  461  up to $5,000.
  462         (d)(b)Effective October 1, 2015, the department must
  463  automatically convert the registration of an approved a
  464  registered insurance agency to shall, as a condition precedent
  465  to continuing business, obtain an insurance agency license if
  466  the department finds that, with respect to any majority owner,
  467  partner, manager, director, officer, or other person who manages
  468  or controls the agency, any person has:
  469         1. Been found guilty of, or has pleaded guilty or nolo
  470  contendere to, a felony in this state or any other state
  471  relating to the business of insurance or to an insurance agency,
  472  without regard to whether a judgment of conviction has been
  473  entered by the court having jurisdiction of the cases.
  474         2. Employed any individual in a managerial capacity or in a
  475  capacity dealing with the public who is under an order of
  476  revocation or suspension issued by the department. An insurance
  477  agency may request, on forms prescribed by the department,
  478  verification of any person’s license status. If a request is
  479  mailed within 5 working days after an employee is hired, and the
  480  employee’s license is currently suspended or revoked, the agency
  481  shall not be required to obtain a license, if the unlicensed
  482  person’s employment is immediately terminated.
  483         3. Operated the agency or permitted the agency to be
  484  operated in violation of s. 626.747.
  485         4. With such frequency as to have made the operation of the
  486  agency hazardous to the insurance-buying public or other
  487  persons:
  488         a. Solicited or handled controlled business. This
  489  subparagraph shall not prohibit the licensing of any lending or
  490  financing institution or creditor, with respect to insurance
  491  only, under credit life or disability insurance policies of
  492  borrowers from the institutions, which policies are subject to
  493  part IX of chapter 627.
  494         b. Misappropriated, converted, or unlawfully withheld
  495  moneys belonging to insurers, insureds, beneficiaries, or others
  496  and received in the conduct of business under the license.
  497         c. Unlawfully rebated, attempted to unlawfully rebate, or
  498  unlawfully divided or offered to divide commissions with
  499  another.
  500         d. Misrepresented any insurance policy or annuity contract,
  501  or used deception with regard to any policy or contract, done
  502  either in person or by any form of dissemination of information
  503  or advertising.
  504         e. Violated any provision of this code or any other law
  505  applicable to the business of insurance in the course of dealing
  506  under the license.
  507         f. Violated any lawful order or rule of the department.
  508         g. Failed or refused, upon demand, to pay over to any
  509  insurer he or she represents or has represented any money coming
  510  into his or her hands belonging to the insurer.
  511         h. Violated the provision against twisting as defined in s.
  512  626.9541(1)(l).
  513         i. In the conduct of business, engaged in unfair methods of
  514  competition or in unfair or deceptive acts or practices, as
  515  prohibited under part IX of this chapter.
  516         j. Willfully overinsured any property insurance risk.
  517         k. Engaged in fraudulent or dishonest practices in the
  518  conduct of business arising out of activities related to
  519  insurance or the insurance agency.
  520         l. Demonstrated lack of fitness or trustworthiness to
  521  engage in the business of insurance arising out of activities
  522  related to insurance or the insurance agency.
  523         m. Authorized or knowingly allowed individuals to transact
  524  insurance who were not then licensed as required by this code.
  525         5. Knowingly employed any person who within the preceding 3
  526  years has had his or her relationship with an agency terminated
  527  in accordance with paragraph (d).
  528         6. Willfully circumvented the requirements or prohibitions
  529  of this code.
  530         Section 7. Subsections (2), (3), and (4) of section
  531  626.172, Florida Statutes, are amended to read:
  532         626.172 Application for insurance agency license.—
  533         (2) An application for an insurance agency license must
  534  shall be signed by an individual required to be listed in the
  535  application under paragraph (a) the owner or owners of the
  536  agency. If the agency is incorporated, the application shall be
  537  signed by the president and secretary of the corporation. An
  538  insurance agency may allow a third party to complete, submit,
  539  and sign an application on the insurance agency’s behalf, but
  540  the insurance agency is responsible for ensuring that the
  541  information on the application is true and correct and is
  542  accountable for any misstatements or misrepresentations. The
  543  application for an insurance agency license must shall include:
  544         (a) The name of each majority owner, partner, officer, and
  545  director, president, senior vice president, secretary,
  546  treasurer, and limited liability company member, who directs or
  547  participates in the management or control of the insurance
  548  agency, whether through ownership of voting securities, by
  549  contract, by ownership of an agency bank account, or otherwise.
  550         (b) The residence address of each person required to be
  551  listed in the application under paragraph (a).
  552         (c) The name, principal business street address, and e-mail
  553  address of the insurance agency and the name, address, and e
  554  mail address of the agency’s registered agent or person or
  555  company authorized to accept service on behalf of the agency its
  556  principal business address.
  557         (d) The name, physical address, e-mail address, and
  558  telephone number location of each branch agency and the date
  559  that the branch location begins transacting insurance office and
  560  the name under which each agency office conducts or will conduct
  561  business.
  562         (e) The name of each agent to be in full-time charge of an
  563  agency office and specification of which office, including
  564  branch locations.
  565         (f) The fingerprints of each of the following:
  566         1. A sole proprietor;
  567         2. Each individual required to be listed in the application
  568  under paragraph (a) partner; and
  569         3. Each owner of an unincorporated agency;
  570         3.4. Each individual owner who directs or participates in
  571  the management or control of an incorporated agency whose shares
  572  are not traded on a securities exchange;
  573         5. The president, senior vice presidents, treasurer,
  574  secretary, and directors of the agency; and
  575         6. Any other person who directs or participates in the
  576  management or control of the agency, whether through the
  577  ownership of voting securities, by contract, or otherwise.
  578  
  579  Fingerprints must be taken by a law enforcement agency or other
  580  entity approved by the department and must be accompanied by the
  581  fingerprint processing fee specified in s. 624.501. Fingerprints
  582  must shall be processed in accordance with s. 624.34. However,
  583  fingerprints need not be filed for an any individual who is
  584  currently licensed and appointed under this chapter. This
  585  paragraph does not apply to corporations whose voting shares are
  586  traded on a securities exchange.
  587         (g) Such additional information as the department requires
  588  by rule to ascertain the trustworthiness and competence of
  589  persons required to be listed on the application and to
  590  ascertain that such persons meet the requirements of this code.
  591  However, the department may not require that credit or character
  592  reports be submitted for persons required to be listed on the
  593  application.
  594         (3)(h)Beginning October 1, 2005, The department must shall
  595  accept the uniform application for nonresident agency licensure.
  596  The department may adopt by rule revised versions of the uniform
  597  application.
  598         (3)The department shall issue a registration as an
  599  insurance agency to any agency that files a written application
  600  with the department and qualifies for registration. The
  601  application for registration shall require the agency to provide
  602  the same information required for an agency licensed under
  603  subsection (2), the agent identification number for each owner
  604  who is a licensed agent, proof that the agency qualifies for
  605  registration as provided in s. 626.112(7), and any other
  606  additional information that the department determines is
  607  necessary in order to demonstrate that the agency qualifies for
  608  registration. The application must be signed by the owner or
  609  owners of the agency. If the agency is incorporated, the
  610  application must be signed by the president and the secretary of
  611  the corporation. An agent who owns the agency need not file
  612  fingerprints with the department if the agent obtained a license
  613  under this chapter and the license is currently valid.
  614         (a) If an application for registration is denied, the
  615  agency must file an application for licensure no later than 30
  616  days after the date of the denial of registration.
  617         (b) A registered insurance agency must file an application
  618  for licensure no later than 30 days after the date that any
  619  person who is not a licensed and appointed agent in this state
  620  acquires any ownership interest in the agency. If an agency
  621  fails to file an application for licensure in compliance with
  622  this paragraph, the department shall impose an administrative
  623  penalty in an amount of up to $5,000 on the agency.
  624         (c) Sections 626.6115 and 626.6215 do not apply to agencies
  625  registered under this subsection.
  626         (4) The department must shall issue a license or
  627  registration to each agency upon approval of the application,
  628  and each agency location must shall display the license or
  629  registration prominently in a manner that makes it clearly
  630  visible to any customer or potential customer who enters the
  631  agency location.
  632         Section 8. Present subsection (6) of section 626.311,
  633  Florida Statutes, is redesignated as subsection (7), and a new
  634  subsection (6) is added to that section, to read:
  635         626.311 Scope of license.—
  636         (6) An agent who appoints his or her license as an
  637  unaffiliated insurance agent may not hold an appointment from an
  638  insurer for any license he or she holds; transact, solicit, or
  639  service an insurance contract on behalf of an insurer; interfere
  640  with commissions received or to be received by an insurer
  641  appointed insurance agent or an insurance agency contracted with
  642  or employing insurer-appointed insurance agents; or receive
  643  compensation or any other thing of value from an insurer, an
  644  insurer-appointed insurance agent, or an insurance agency
  645  contracted with or employing insurer-appointed insurance agents
  646  for any transaction or referral occurring after the date of
  647  appointment as an unaffiliated insurance agent. An unaffiliated
  648  insurance agent may continue to receive commissions on sales
  649  that occurred before the date of appointment as an unaffiliated
  650  insurance agent if the receipt of such commissions is disclosed
  651  when making recommendations or evaluating products for a client
  652  that involve products of the entity from which the commissions
  653  are received.
  654         Section 9. Paragraph (d) of subsection (1) of section
  655  626.321, Florida Statutes, is amended to read:
  656         626.321 Limited licenses.—
  657         (1) The department shall issue to a qualified applicant a
  658  license as agent authorized to transact a limited class of
  659  business in any of the following categories of limited lines
  660  insurance:
  661         (d) Motor vehicle rental insurance.—
  662         1. License covering only insurance of the risks set forth
  663  in this paragraph when offered, sold, or solicited with and
  664  incidental to the rental or lease of a motor vehicle and which
  665  applies only to the motor vehicle that is the subject of the
  666  lease or rental agreement and the occupants of the motor
  667  vehicle:
  668         a. Excess motor vehicle liability insurance providing
  669  coverage in excess of the standard liability limits provided by
  670  the lessor in the lessor’s lease to a person renting or leasing
  671  a motor vehicle from the licensee’s employer for liability
  672  arising in connection with the negligent operation of the leased
  673  or rented motor vehicle.
  674         b. Insurance covering the liability of the lessee to the
  675  lessor for damage to the leased or rented motor vehicle.
  676         c. Insurance covering the loss of or damage to baggage,
  677  personal effects, or travel documents of a person renting or
  678  leasing a motor vehicle.
  679         d. Insurance covering accidental personal injury or death
  680  of the lessee and any passenger who is riding or driving with
  681  the covered lessee in the leased or rented motor vehicle.
  682         2. Insurance under a motor vehicle rental insurance license
  683  may be issued only if the lease or rental agreement is for up to
  684  no more than 60 days, the lessee is not provided coverage for
  685  more than 60 consecutive days per lease period, and the lessee
  686  is given written notice that his or her personal insurance
  687  policy providing coverage on an owned motor vehicle may provide
  688  coverage of such risks and that the purchase of the insurance is
  689  not required in connection with the lease or rental of a motor
  690  vehicle. If the lease is extended beyond 60 days, the coverage
  691  may be extended one time only once for up to a period not to
  692  exceed an additional 60 days. Insurance may be provided to the
  693  lessee as an additional insured on a policy issued to the
  694  licensee’s employer.
  695         3. The license may be issued only to the full-time salaried
  696  employee of a licensed general lines agent or to a business
  697  entity that offers motor vehicles for rent or lease if insurance
  698  sales activities authorized by the license are in connection
  699  with and incidental to the rental or lease of a motor vehicle.
  700         a. A license issued to a business entity that offers motor
  701  vehicles for rent or lease encompasses each office, branch
  702  office, employee, authorized representative located at a
  703  designated branch, or place of business making use of the
  704  entity’s business name in order to offer, solicit, and sell
  705  insurance pursuant to this paragraph.
  706         b. The application for licensure must list the name,
  707  address, and phone number for each office, branch office, or
  708  place of business which that is to be covered by the license.
  709  The licensee shall notify the department of the name, address,
  710  and phone number of any new location that is to be covered by
  711  the license before the new office, branch office, or place of
  712  business engages in the sale of insurance pursuant to this
  713  paragraph. The licensee must notify the department within 30
  714  days after closing or terminating an office, branch office, or
  715  place of business. Upon receipt of the notice, the department
  716  shall delete the office, branch office, or place of business
  717  from the license.
  718         c. A licensed and appointed entity is directly responsible
  719  and accountable for all acts of the licensee’s employees.
  720         Section 10. Effective January, 1, 2015, section 626.382,
  721  Florida Statutes, is amended to read:
  722         626.382 Continuation, expiration of license; insurance
  723  agencies.—The license of an any insurance agency shall be issued
  724  for a period of 3 years and shall continue in force until
  725  canceled, suspended, or revoked, or until it is otherwise
  726  terminated or becomes expired by operation of law. A license may
  727  be renewed by submitting a renewal request to the department on
  728  a form adopted by department rule.
  729         Section 11. Section 626.601, Florida Statutes, is amended
  730  to read:
  731         626.601 Improper conduct; investigation inquiry;
  732  fingerprinting.—
  733         (1) The department or office may, upon its own motion or
  734  upon a written complaint signed by an any interested person and
  735  filed with the department or office, inquire into the any
  736  alleged improper conduct of any licensed, approved, or certified
  737  licensee, insurance agency, agent, adjuster, service
  738  representative, managing general agent, customer representative,
  739  title insurance agent, title insurance agency, mediator, neutral
  740  evaluator, navigator, continuing education course provider,
  741  instructor, school official, or monitor group under this code.
  742  The department or office may thereafter initiate an
  743  investigation of any such individual or entity licensee if it
  744  has reasonable cause to believe that the individual or entity
  745  licensee has violated any provision of the insurance code.
  746  During the course of its investigation, the department or office
  747  shall contact the individual or entity licensee being
  748  investigated unless it determines that contacting such
  749  individual or entity person could jeopardize the successful
  750  completion of the investigation or cause injury to the public.
  751         (2) In the investigation by the department or office of the
  752  alleged misconduct, the individual or entity licensee shall, if
  753  whenever so required by the department or office, open the
  754  individual’s or entity’s cause his or her books and records to
  755  be open for inspection for the purpose of such investigation
  756  inquiries.
  757         (3) The Complaints against an individual or entity any
  758  licensee may be informally alleged and are not required to
  759  include need not be in any such language as is necessary to
  760  charge a crime on an indictment or information.
  761         (4) The expense for any hearings or investigations
  762  conducted pursuant to this section under this law, as well as
  763  the fees and mileage of witnesses, may be paid out of the
  764  appropriate fund.
  765         (5) If the department or office, after investigation, has
  766  reason to believe that an individual a licensee may have been
  767  found guilty of or pleaded guilty or nolo contendere to a felony
  768  or a crime related to the business of insurance in this or any
  769  other state or jurisdiction, the department or office may
  770  require the individual licensee to file with the department or
  771  office a complete set of his or her fingerprints, which shall be
  772  accompanied by the fingerprint processing fee set forth in s.
  773  624.501. The fingerprints shall be taken by an authorized law
  774  enforcement agency or other department-approved entity.
  775         (6) The complaint and any information obtained pursuant to
  776  the investigation by the department or office are confidential
  777  and are exempt from the provisions of s. 119.07, unless the
  778  department or office files a formal administrative complaint,
  779  emergency order, or consent order against the individual or
  780  entity licensee. Nothing in This subsection does not shall be
  781  construed to prevent the department or office from disclosing
  782  the complaint or such information as it deems necessary to
  783  conduct the investigation, to update the complainant as to the
  784  status and outcome of the complaint, or to share such
  785  information with any law enforcement agency or other regulatory
  786  body.
  787         Section 12. Subsection (15) is added to section 626.621,
  788  Florida Statutes, to read:
  789         626.621 Grounds for discretionary refusal, suspension, or
  790  revocation of agent’s, adjuster’s, customer representative’s,
  791  service representative’s, or managing general agent’s license or
  792  appointment.—The department may, in its discretion, deny an
  793  application for, suspend, revoke, or refuse to renew or continue
  794  the license or appointment of any applicant, agent, adjuster,
  795  customer representative, service representative, or managing
  796  general agent, and it may suspend or revoke the eligibility to
  797  hold a license or appointment of any such person, if it finds
  798  that as to the applicant, licensee, or appointee any one or more
  799  of the following applicable grounds exist under circumstances
  800  for which such denial, suspension, revocation, or refusal is not
  801  mandatory under s. 626.611:
  802         (15) Directly or indirectly accepting any compensation,
  803  inducement, or reward from an inspector or inspection company
  804  for referring the owner of property requiring inspection to the
  805  inspector or inspection company. This prohibition applies to any
  806  inspection of property intended for submission to a carrier in
  807  order to obtain insurance coverage or to determine the
  808  appropriate amount of the insurance premium.
  809         Section 13. Effective January 1, 2015, section 626.747,
  810  Florida Statutes, is repealed.
  811         Section 14. Effective January 1, 2015, subsection (1) of
  812  section 626.8411, Florida Statutes, is amended to read:
  813         626.8411 Application of Florida Insurance Code provisions
  814  to title insurance agents or agencies.—
  815         (1) The following provisions of part II applicable to
  816  general lines agents or agencies also apply to title insurance
  817  agents or agencies:
  818         (a) Section 626.734, relating to liability of certain
  819  agents.
  820         (b) Section 626.0428(4)(a) and (b) 626.747, relating to
  821  branch agencies.
  822         (c) Section 626.749, relating to place of business in
  823  residence.
  824         (d) Section 626.753, relating to sharing of commissions.
  825         (e) Section 626.754, relating to rights of agent following
  826  termination of appointment.
  827         Section 15. Subsections (14) and (18) of section 626.854,
  828  Florida Statutes, are amended to read:
  829         626.854 “Public adjuster” defined; prohibitions.—The
  830  Legislature finds that it is necessary for the protection of the
  831  public to regulate public insurance adjusters and to prevent the
  832  unauthorized practice of law.
  833         (14) A company employee adjuster, independent adjuster,
  834  attorney, investigator, or other persons acting on behalf of an
  835  insurer that needs access to an insured or claimant or to the
  836  insured property that is the subject of a claim must provide at
  837  least 48 hours’ notice to the insured or claimant, public
  838  adjuster, or legal representative before scheduling a meeting
  839  with the claimant or an onsite inspection of the insured
  840  property. The insured or claimant may deny access to the
  841  property if the notice has not been provided. The insured or
  842  claimant may waive the 48-hour notice.
  843         (17)(18)The provisions of Subsections (5)-(16) (5)-(17)
  844  apply only to residential property insurance policies and
  845  condominium unit owner policies as defined in s. 718.111(11).
  846         Section 16. Paragraph (c) of subsection (2) and subsection
  847  (3) of section 626.8805, Florida Statutes, are amended to read:
  848         626.8805 Certificate of authority to act as administrator.—
  849         (2) The administrator shall file with the office an
  850  application for a certificate of authority upon a form to be
  851  adopted by the commission and furnished by the office, which
  852  application shall include or have attached the following
  853  information and documents:
  854         (c) The names, addresses, official positions, and
  855  professional qualifications of the individuals employed or
  856  retained by the administrator who are responsible for the
  857  conduct of the affairs of the administrator, including all
  858  members of the board of directors, board of trustees, executive
  859  committee, or other governing board or committee, and the
  860  principal officers in the case of a corporation or, the partners
  861  or members in the case of a partnership or association, and any
  862  other person who exercises control or influence over the affairs
  863  of the administrator.
  864         (3) The applicant shall make available for inspection by
  865  the office copies of all contracts relating to services provided
  866  by the administrator to with insurers or other persons using
  867  utilizing the services of the administrator.
  868         Section 17. Subsections (1) and (3) of section 626.8817,
  869  Florida Statutes, are amended to read:
  870         626.8817 Responsibilities of insurance company with respect
  871  to administration of coverage insured.—
  872         (1) If an insurer uses the services of an administrator,
  873  the insurer is responsible for determining the benefits, premium
  874  rates, underwriting criteria, and claims payment procedures
  875  applicable to the coverage and for securing reinsurance, if any.
  876  The rules pertaining to these matters shall be provided, in
  877  writing, by the insurer or its designee to the administrator.
  878  The responsibilities of the administrator as to any of these
  879  matters shall be set forth in a the written agreement binding
  880  upon between the administrator and the insurer.
  881         (3) If In cases in which an administrator administers
  882  benefits for more than 100 certificateholders on behalf of an
  883  insurer, the insurer shall, at least semiannually, conduct a
  884  review of the operations of the administrator. At least one such
  885  review must be an onsite audit of the operations of the
  886  administrator. The insurer may contract with a qualified third
  887  party to conduct such review.
  888         Section 18. Subsections (1) and (4) of section 626.882,
  889  Florida Statutes, are amended to read:
  890         626.882 Agreement between administrator and insurer;
  891  required provisions; maintenance of records.—
  892         (1) A No person may not act as an administrator without a
  893  written agreement, as required under s. 626.8817, which
  894  specifies the rights, duties, and obligations of the between
  895  such person as administrator and an insurer.
  896         (4) If a policy is issued to a trustee or trustees, a copy
  897  of the trust agreement and any amendments to that agreement
  898  shall be furnished to the insurer or its designee by the
  899  administrator and shall be retained as part of the official
  900  records of both the administrator and the insurer for the
  901  duration of the policy and for 5 years thereafter.
  902         Section 19. Subsections (3), (4), and (5) of section
  903  626.883, Florida Statutes, are amended to read:
  904         626.883 Administrator as intermediary; collections held in
  905  fiduciary capacity; establishment of account; disbursement;
  906  payments on behalf of insurer.—
  907         (3) If charges or premiums deposited in a fiduciary account
  908  have been collected on behalf of or for more than one insurer,
  909  the administrator shall keep records clearly recording the
  910  deposits in and withdrawals from such account on behalf of or
  911  for each insurer. The administrator shall, upon request of an
  912  insurer or its designee, furnish such insurer or designee with
  913  copies of records pertaining to deposits and withdrawals on
  914  behalf of or for such insurer.
  915         (4) The administrator may not pay any claim by withdrawals
  916  from a fiduciary account. Withdrawals from such account shall be
  917  made as provided in the written agreement required under ss.
  918  626.8817 and 626.882 between the administrator and the insurer
  919  for any of the following:
  920         (a) Remittance to an insurer entitled to such remittance.
  921         (b) Deposit in an account maintained in the name of such
  922  insurer.
  923         (c) Transfer to and deposit in a claims-paying account,
  924  with claims to be paid as provided by such insurer.
  925         (d) Payment to a group policyholder for remittance to the
  926  insurer entitled to such remittance.
  927         (e) Payment to the administrator of the commission, fees,
  928  or charges of the administrator.
  929         (f) Remittance of return premium to the person or persons
  930  entitled to such return premium.
  931         (5) All claims paid by the administrator from funds
  932  collected on behalf of the insurer shall be paid only on drafts
  933  of, and as authorized by, such insurer or its designee.
  934         Section 20. Subsection (3) of section 626.884, Florida
  935  Statutes, is amended to read:
  936         626.884 Maintenance of records by administrator; access;
  937  confidentiality.—
  938         (3) The insurer shall retain the right of continuing access
  939  to books and records maintained by the administrator sufficient
  940  to permit the insurer to fulfill all of its contractual
  941  obligations to insured persons, subject to any restrictions in
  942  the written agreement pertaining to between the insurer and the
  943  administrator on the proprietary rights of the parties in such
  944  books and records.
  945         Section 21. Subsections (1) and (2) of section 626.89,
  946  Florida Statutes, are amended to read:
  947         626.89 Annual financial statement and filing fee; notice of
  948  change of ownership.—
  949         (1) Each authorized administrator shall annually file with
  950  the office a full and true statement of its financial condition,
  951  transactions, and affairs within 3 months after the end of the
  952  administrator’s fiscal year. The statement shall be filed
  953  annually on or before March 1 or within such extension of time
  954  therefor as the office for good cause may have granted. The
  955  statement must and shall be for the preceding fiscal calendar
  956  year and must. The statement shall be in such form and contain
  957  such matters as the commission prescribes and must shall be
  958  verified by at least two officers of the such administrator. An
  959  administrator whose sole stockholder is an association
  960  representing health care providers which is not an affiliate of
  961  an insurer, an administrator of a pooled governmental self
  962  insurance program, or an administrator that is a university may
  963  submit the preceding fiscal year’s statement within 2 months
  964  after its fiscal year end.
  965         (2) Each authorized administrator shall also file an
  966  audited financial statement performed by an independent
  967  certified public accountant. The audited financial statement
  968  shall be filed with the office within 5 months after the end of
  969  the administrator’s fiscal year and be on or before June 1 for
  970  the preceding fiscal calendar year ending December 31. An
  971  administrator whose sole stockholder is an association
  972  representing health care providers which is not an affiliate of
  973  an insurer, an administrator of a pooled governmental self
  974  insurance program, or an administrator that is a university may
  975  submit the preceding fiscal year’s audited financial statement
  976  within 5 months after the end of its fiscal year. An audited
  977  financial statement prepared on a consolidated basis must
  978  include a columnar consolidating or combining worksheet that
  979  must be filed with the statement and must comply with the
  980  following:
  981         (a) Amounts shown on the consolidated audited financial
  982  statement must be shown on the worksheet;
  983         (b) Amounts for each entity must be stated separately; and
  984         (c) Explanations of consolidating and eliminating entries
  985  must be included.
  986         Section 22. Section 626.931, Florida Statutes, is amended
  987  to read:
  988         626.931 Agent affidavit and Insurer reporting
  989  requirements.—
  990         (1) Each surplus lines agent shall on or before the 45th
  991  day following each calendar quarter file with the Florida
  992  Surplus Lines Service Office an affidavit, on forms as
  993  prescribed and furnished by the Florida Surplus Lines Service
  994  Office, stating that all surplus lines insurance transacted by
  995  him or her during such calendar quarter has been submitted to
  996  the Florida Surplus Lines Service Office as required.
  997         (2) The affidavit of the surplus lines agent shall include
  998  efforts made to place coverages with authorized insurers and the
  999  results thereof.
 1000         (1)(3) Each foreign insurer accepting premiums shall, on or
 1001  before the end of the month following each calendar quarter,
 1002  file with the Florida Surplus Lines Service Office a verified
 1003  report of all surplus lines insurance transacted by such insurer
 1004  for insurance risks located in this state during the such
 1005  calendar quarter.
 1006         (2)(4) Each alien insurer accepting premiums shall, on or
 1007  before June 30 of each year, file with the Florida Surplus Lines
 1008  Service Office a verified report of all surplus lines insurance
 1009  transacted by such insurer for insurance risks located in this
 1010  state during the preceding calendar year.
 1011         (3)(5) The department may waive the filing requirements
 1012  described in subsections (1) (3) and (2) (4).
 1013         (4)(6) Each insurer’s report and supporting information
 1014  shall be in a computer-readable format as determined by the
 1015  Florida Surplus Lines Service Office or shall be submitted on
 1016  forms prescribed by the Florida Surplus Lines Service Office and
 1017  shall show for each applicable agent:
 1018         (a) A listing of all policies, certificates, cover notes,
 1019  or other forms of confirmation of insurance coverage or any
 1020  substitutions thereof or endorsements thereto and the
 1021  identifying number; and
 1022         (b) Any additional information required by the department
 1023  or Florida Surplus Lines Service Office.
 1024         Section 23. Paragraph (a) of subsection (2) of section
 1025  626.932, Florida Statutes, is amended to read:
 1026         626.932 Surplus lines tax.—
 1027         (2)(a) The surplus lines agent shall make payable to the
 1028  department the tax related to each calendar quarter’s business
 1029  as reported to the Florida Surplus Lines Service Office, and
 1030  remit the tax to the Florida Surplus Lines Service Office on or
 1031  before the 45th day after each calendar quarter at the same time
 1032  as provided for the filing of the quarterly affidavit, under s.
 1033  626.931. The Florida Surplus Lines Service Office shall forward
 1034  to the department the taxes and any interest collected pursuant
 1035  to paragraph (b), within 10 days after of receipt.
 1036         Section 24. Subsection (1) of section 626.935, Florida
 1037  Statutes, is amended to read:
 1038         626.935 Suspension, revocation, or refusal of surplus lines
 1039  agent’s license.—
 1040         (1) The department shall deny an application for, suspend,
 1041  revoke, or refuse to renew the appointment of a surplus lines
 1042  agent and all other licenses and appointments held by the
 1043  licensee under this code, on any of the following grounds:
 1044         (a) Removal of the licensee’s office from the licensee’s
 1045  state of residence.
 1046         (b) Removal of the accounts and records of his or her
 1047  surplus lines business from this state or the licensee’s state
 1048  of residence during the period when such accounts and records
 1049  are required to be maintained under s. 626.930.
 1050         (c) Closure of the licensee’s office for more than 30
 1051  consecutive days.
 1052         (d) Failure to make and file his or her affidavit or
 1053  reports when due as required by s. 626.931.
 1054         (d)(e) Failure to pay the tax or service fee on surplus
 1055  lines premiums, as provided in the Surplus Lines Law.
 1056         (e)(f) Suspension, revocation, or refusal to renew or
 1057  continue the license or appointment as a general lines agent,
 1058  service representative, or managing general agent.
 1059         (f)(g) Lack of qualifications as for an original surplus
 1060  lines agent’s license.
 1061         (g)(h) Violation of this Surplus Lines Law.
 1062         (h)(i)For Any other applicable cause for which the license
 1063  of a general lines agent could be suspended, revoked, or refused
 1064  under s. 626.611 or s. 626.621.
 1065         Section 25. Subsection (1) of section 626.936, Florida
 1066  Statutes, is amended to read:
 1067         626.936 Failure to file reports or pay tax or service fee;
 1068  administrative penalty.—
 1069         (1) A Any licensed surplus lines agent who neglects to file
 1070  a report or an affidavit in the form and within the time
 1071  required under or provided for in the Surplus Lines Law may be
 1072  fined up to $50 per day for each day the neglect continues,
 1073  beginning the day after the report or affidavit was due until
 1074  the date the report or affidavit is received. All sums collected
 1075  under this section shall be deposited into the Insurance
 1076  Regulatory Trust Fund.
 1077         Section 26. Paragraph (q) of subsection (1) of section
 1078  626.9541, Florida Statutes, is amended to read:
 1079         626.9541 Unfair methods of competition and unfair or
 1080  deceptive acts or practices defined.—
 1081         (1) UNFAIR METHODS OF COMPETITION AND UNFAIR OR DECEPTIVE
 1082  ACTS.—The following are defined as unfair methods of competition
 1083  and unfair or deceptive acts or practices:
 1084         (q) Certain insurance transactions through credit card
 1085  facilities prohibited.—
 1086         1. Except as provided in subparagraph 3., no person shall
 1087  knowingly solicit or negotiate any insurance; seek or accept
 1088  applications for insurance; issue or deliver any policy;
 1089  receive, collect, or transmit premiums, to or for an any
 1090  insurer; or otherwise transact insurance in this state, or
 1091  relative to a subject of insurance resident, located, or to be
 1092  performed in this state, through the arrangement or facilities
 1093  of a credit card facility or organization, for the purpose of
 1094  insuring credit card holders or prospective credit card holders.
 1095  The term “credit card holder” as used in this paragraph means a
 1096  any person who may pay the charge for purchases or other
 1097  transactions through the credit card facility or organization,
 1098  whose credit with such facility or organization is evidenced by
 1099  a credit card identifying such person as being one whose charges
 1100  the credit card facility or organization will pay, and who is
 1101  identified as such upon the credit card either by name, account
 1102  number, symbol, insignia, or any other method or device of
 1103  identification. This subparagraph does not apply as to health
 1104  insurance or to credit life, credit disability, or credit
 1105  property insurance.
 1106         2. If Whenever any person does or performs in this state
 1107  any of the acts in violation of subparagraph 1. for or on behalf
 1108  of an any insurer or credit card facility, such insurer or
 1109  credit card facility shall be deemed held to be doing business
 1110  in this state and, if an insurer, shall be subject to the same
 1111  state, county, and municipal taxes as insurers that have been
 1112  legally qualified and admitted to do business in this state by
 1113  agents or otherwise are subject, the same to be assessed and
 1114  collected against such insurers; and such person so doing or
 1115  performing any of such acts is shall be personally liable for
 1116  all such taxes.
 1117         3. A licensed agent or insurer may solicit or negotiate any
 1118  insurance; seek or accept applications for insurance; issue or
 1119  deliver any policy; receive, collect, or transmit premiums, to
 1120  or for an any insurer; or otherwise transact insurance in this
 1121  state, or relative to a subject of insurance resident, located,
 1122  or to be performed in this state, through the arrangement or
 1123  facilities of a credit card facility or organization, for the
 1124  purpose of insuring credit card holders or prospective credit
 1125  card holders if:
 1126         a. The insurance or policy which is the subject of the
 1127  transaction is noncancelable by any person other than the named
 1128  insured, the policyholder, or the insurer;
 1129         b. Any refund of unearned premium is made directly to the
 1130  credit card holder by mail or electronic transfer; and
 1131         c. The credit card transaction is authorized by the
 1132  signature of the credit card holder or other person authorized
 1133  to sign on the credit card account.
 1134  
 1135  The conditions enumerated in sub-subparagraphs a.-c. do not
 1136  apply to health insurance or to credit life, credit disability,
 1137  or credit property insurance; and sub-subparagraph c. does not
 1138  apply to property and casualty insurance if so long as the
 1139  transaction is authorized by the insured.
 1140         4. No person may use or disclose information resulting from
 1141  the use of a credit card in conjunction with the purchase of
 1142  insurance if, when such information is to the advantage of the
 1143  such credit card facility or an insurance agent, or is to the
 1144  detriment of the insured or any other insurance agent; except
 1145  that this provision does not prohibit a credit card facility
 1146  from using or disclosing such information in a any judicial
 1147  proceeding or consistent with applicable law on credit
 1148  reporting.
 1149         5. No Such insurance may not shall be sold through a credit
 1150  card facility in conjunction with membership in any automobile
 1151  club. The term “automobile club” means a legal entity that
 1152  which, in consideration of dues, assessments, or periodic
 1153  payments of money, promises its members or subscribers to assist
 1154  them in matters relating to the ownership, operation, use, or
 1155  maintenance of a motor vehicle; however, the term definition of
 1156  automobile clubs does not include persons, associations, or
 1157  corporations that which are organized and operated solely for
 1158  the purpose of conducting, sponsoring, or sanctioning motor
 1159  vehicle races, exhibitions, or contests upon racetracks, or upon
 1160  race courses established and marked as such for the duration of
 1161  such particular event. The words “motor vehicle” used herein
 1162  shall be the same as defined in chapter 320.
 1163         Section 27. Paragraph (b) of subsection (2) of section
 1164  627.062, Florida Statutes, is amended to read:
 1165         627.062 Rate standards.—
 1166         (2) As to all such classes of insurance:
 1167         (b) Upon receiving a rate filing, the office shall review
 1168  the filing to determine whether the if a rate is excessive,
 1169  inadequate, or unfairly discriminatory. In making that
 1170  determination, the office shall, in accordance with generally
 1171  accepted and reasonable actuarial techniques, consider the
 1172  following factors:
 1173         1. Past and prospective loss experience within and without
 1174  this state.
 1175         2. Past and prospective expenses.
 1176         3. The degree of competition among insurers for the risk
 1177  insured.
 1178         4. Investment income reasonably expected by the insurer,
 1179  consistent with the insurer’s investment practices, from
 1180  investable premiums anticipated in the filing, plus any other
 1181  expected income from currently invested assets representing the
 1182  amount expected on unearned premium reserves and loss reserves.
 1183  The commission may adopt rules using reasonable techniques of
 1184  actuarial science and economics to specify the manner in which
 1185  insurers calculate investment income attributable to classes of
 1186  insurance written in this state and the manner in which
 1187  investment income is used to calculate insurance rates. Such
 1188  manner must contemplate allowances for an underwriting profit
 1189  factor and full consideration of investment income that which
 1190  produce a reasonable rate of return; however, investment income
 1191  from invested surplus may not be considered.
 1192         5. The reasonableness of the judgment reflected in the
 1193  filing.
 1194         6. Dividends, savings, or unabsorbed premium deposits
 1195  allowed or returned to Florida policyholders, members, or
 1196  subscribers.
 1197         7. The adequacy of loss reserves.
 1198         8. The cost of reinsurance. The office may not disapprove a
 1199  rate as excessive solely due to the insurer’s insurer having
 1200  obtained catastrophic reinsurance to cover the insurer’s
 1201  estimated 250-year probable maximum loss or any lower level of
 1202  loss.
 1203         9. Trend factors, including trends in actual losses per
 1204  insured unit for the insurer making the filing.
 1205         10. Conflagration and catastrophe hazards, if applicable.
 1206         11. Projected hurricane losses, if applicable, which must
 1207  be estimated using a model or method, or a straight average of
 1208  model results or output ranges, which are independently found to
 1209  be acceptable or reliable by the Florida Commission on Hurricane
 1210  Loss Projection Methodology, and as further provided in s.
 1211  627.0628.
 1212         12. A reasonable margin for underwriting profit and
 1213  contingencies.
 1214         13. The cost of medical services, if applicable.
 1215         14. Other relevant factors that affect the frequency or
 1216  severity of claims or expenses.
 1217         Section 28. Paragraph (d) of subsection (3) of section
 1218  627.0628, Florida Statutes, is amended to read:
 1219         627.0628 Florida Commission on Hurricane Loss Projection
 1220  Methodology; public records exemption; public meetings
 1221  exemption.—
 1222         (3) ADOPTION AND EFFECT OF STANDARDS AND GUIDELINES.—
 1223         (d) With respect to a rate filing under s. 627.062, an
 1224  insurer shall employ and may not modify or adjust actuarial
 1225  methods, principles, standards, models, or output ranges found
 1226  by the commission to be accurate or reliable in determining
 1227  hurricane loss factors for use in a rate filing under s.
 1228  627.062. An insurer shall employ and may not modify or adjust
 1229  models found by the commission to be accurate or reliable in
 1230  determining probable maximum loss levels pursuant to paragraph
 1231  (b) with respect to a rate filing under s. 627.062 made more
 1232  than 180 60 days after the commission has made such findings.
 1233  This paragraph does not prohibit an insurer from using a
 1234  straight average of model results or output ranges or using
 1235  straight averages for the purposes of a rate filing under s.
 1236  627.062.
 1237         Section 29. Subsection (8) of section 627.0651, Florida
 1238  Statutes, is amended to read:
 1239         627.0651 Making and use of rates for motor vehicle
 1240  insurance.—
 1241         (8) Rates are not unfairly discriminatory if averaged
 1242  broadly among members of a group; nor are rates unfairly
 1243  discriminatory even though they are lower than rates for
 1244  nonmembers of the group. However, such rates are unfairly
 1245  discriminatory if they are not actuarially measurable and
 1246  credible and sufficiently related to actual or expected loss and
 1247  expense experience of the group so as to ensure assure that
 1248  nonmembers of the group are not unfairly discriminated against.
 1249  Use of a single United States Postal Service zip code as a
 1250  rating territory shall be deemed unfairly discriminatory unless
 1251  filed pursuant to paragraph (1)(a) and such rating territory
 1252  incorporates sufficient actual or expected loss and loss
 1253  adjustment expense experience so as to be actuarially measurable
 1254  and credible.
 1255         Section 30. Subsection (6) is added to section 627.0653,
 1256  Florida Statutes, to read:
 1257         627.0653 Insurance discounts for specified motor vehicle
 1258  equipment.—
 1259         (6) The office may approve a premium discount applicable to
 1260  any rates, rating schedules, or rating manuals for liability,
 1261  personal injury protection, and collision coverages for motor
 1262  vehicle insurance policies filed with the office for vehicles
 1263  equipped with electronic vehicle crash avoidance technology that
 1264  is factory installed or with a retrofitted system that complies
 1265  with National Highway Traffic Safety Administration standards.
 1266         Section 31. Present subsections (2) through (4) of section
 1267  627.072, Florida Statutes, are redesignated as subsections (3)
 1268  through (5), respectively, and a new subsection (2) is added to
 1269  that section, to read:
 1270         627.072 Making and use of rates.—
 1271         (2) A retrospective rating plan may contain a provision
 1272  that allows for the negotiation of premium between the employer
 1273  and the insurer for employers having exposure in more than one
 1274  state, an estimated annual standard premium in this state of
 1275  $100,000 or more for workers’ compensation, and an estimated
 1276  annual countrywide standard premium of $750,000 or more for
 1277  workers’ compensation. Provisions within a retrospective rating
 1278  plan which authorize negotiated premiums are exempt from
 1279  subsection (1). Such plans and associated forms must be filed by
 1280  a rating organization and approved by the office. However, a
 1281  premium negotiated between the employer and the insurer pursuant
 1282  to an approved retrospective rating plan is not subject to this
 1283  part. Only insurers having at least $500 million in surplus as
 1284  to policyholders may engage in the negotiation of premium with
 1285  eligible employers.
 1286         Section 32. Subsection (2) of section 627.281, Florida
 1287  Statutes, is amended to read:
 1288         627.281 Appeal from rating organization; workers’
 1289  compensation and employer’s liability insurance filings.—
 1290         (2) If the such appeal is based on upon the failure of the
 1291  rating organization to make a filing on behalf of a such member
 1292  or subscriber which is based on a system of expense provisions
 1293  which differs, in accordance with the right granted in s.
 1294  627.072(3) 627.072(2), differs from the system of expense
 1295  provisions included in a filing made by the rating organization,
 1296  the office shall, if it grants the appeal, order the rating
 1297  organization to make the requested filing for use by the
 1298  appellant. In deciding such appeal, the office shall apply the
 1299  applicable standards set forth in ss. 627.062 and 627.072.
 1300         Section 33. Paragraph (h) of subsection (5) of section
 1301  627.311, Florida Statutes, is amended to read:
 1302         627.311 Joint underwriters and joint reinsurers; public
 1303  records and public meetings exemptions.—
 1304         (5)
 1305         (h) Any premium or assessments collected by the plan in
 1306  excess of the amount necessary to fund projected ultimate
 1307  incurred losses and expenses of the plan and not paid to
 1308  insureds of the plan in conjunction with loss prevention or
 1309  dividend programs shall be retained by the plan for future use.
 1310  Any state funds received by the plan in excess of the amount
 1311  necessary to fund deficits in subplan D or any tier shall be
 1312  returned to the state. Any dividend payable to a former insured
 1313  of the plan may be retained by the plan for future use upon such
 1314  terms as set forth in the declaration of dividend.
 1315         Section 34. Subsection (9) of section 627.3518, Florida
 1316  Statutes, is amended to read:
 1317         627.3518 Citizens Property Insurance Corporation
 1318  policyholder eligibility clearinghouse program.—The purpose of
 1319  this section is to provide a framework for the corporation to
 1320  implement a clearinghouse program by January 1, 2014.
 1321         (9) The 45-day notice of nonrenewal requirement set forth
 1322  in s. 627.4133(2)(b)5. 627.4133(2)(b)4.b. applies when a policy
 1323  is nonrenewed by the corporation because the risk has received
 1324  an offer of coverage pursuant to this section which renders the
 1325  risk ineligible for coverage by the corporation.
 1326         Section 35. Section 627.3519, Florida Statutes, is
 1327  repealed.
 1328         Section 36. Section 627.409, Florida Statutes, is amended
 1329  to read:
 1330         627.409 Representations in applications; warranties.—
 1331         (1) Any statement or description made by or on behalf of an
 1332  insured or annuitant in an application for an insurance policy
 1333  or annuity contract, or in negotiations for a policy or
 1334  contract, is a representation and is not a warranty. Except as
 1335  provided in subsection (3), a misrepresentation, omission,
 1336  concealment of fact, or incorrect statement may prevent recovery
 1337  under the contract or policy only if any of the following apply:
 1338         (a) The misrepresentation, omission, concealment, or
 1339  statement is fraudulent or is material either to the acceptance
 1340  of the risk or to the hazard assumed by the insurer.
 1341         (b) If the true facts had been known to the insurer
 1342  pursuant to a policy requirement or other requirement, the
 1343  insurer in good faith would not have issued the policy or
 1344  contract, would not have issued it at the same premium rate,
 1345  would not have issued a policy or contract in as large an
 1346  amount, or would not have provided coverage with respect to the
 1347  hazard resulting in the loss.
 1348         (2) A breach or violation by the insured of a any warranty,
 1349  condition, or provision of a any wet marine or transportation
 1350  insurance policy, contract of insurance, endorsement, or
 1351  application therefor does not void the policy or contract, or
 1352  constitute a defense to a loss thereon, unless such breach or
 1353  violation increased the hazard by any means within the control
 1354  of the insured.
 1355         (3) For residential property insurance, if a policy or
 1356  contract is in effect for more than 90 days, a claim filed by
 1357  the insured may not be denied based on credit information
 1358  available in public records.
 1359         Section 37. Paragraph (b) of subsection (2) of section
 1360  627.4133, Florida Statutes, is amended to read:
 1361         627.4133 Notice of cancellation, nonrenewal, or renewal
 1362  premium.—
 1363         (2) With respect to a any personal lines or commercial
 1364  residential property insurance policy, including a, but not
 1365  limited to, any homeowner’s, mobile home owner’s, farmowner’s,
 1366  condominium association, condominium unit owner’s, apartment
 1367  building, or other policy covering a residential structure or
 1368  its contents:
 1369         (b) The insurer shall give the first-named insured written
 1370  notice of nonrenewal, cancellation, or termination at least 120
 1371  100 days before the effective date of the nonrenewal,
 1372  cancellation, or termination. However, the insurer shall give at
 1373  least 100 days’ written notice, or written notice by June 1,
 1374  whichever is earlier, for any nonrenewal, cancellation, or
 1375  termination that would be effective between June 1 and November
 1376  30. The notice must include the reason or reasons for the
 1377  nonrenewal, cancellation, or termination, except that:
 1378         1. The insurer shall give the first-named insured written
 1379  notice of nonrenewal, cancellation, or termination at least 120
 1380  days prior to the effective date of the nonrenewal,
 1381  cancellation, or termination for a first-named insured whose
 1382  residential structure has been insured by that insurer or an
 1383  affiliated insurer for at least a 5-year period immediately
 1384  prior to the date of the written notice.
 1385         1.2. If cancellation is for nonpayment of premium, at least
 1386  10 days’ written notice of cancellation accompanied by the
 1387  reason therefor must be given. As used in this subparagraph, the
 1388  term “nonpayment of premium” means failure of the named insured
 1389  to discharge when due her or his obligations for paying the
 1390  premium in connection with the payment of premiums on a policy
 1391  or an any installment of such premium, whether the premium is
 1392  payable directly to the insurer or its agent or indirectly under
 1393  any premium finance plan or extension of credit, or failure to
 1394  maintain membership in an organization if such membership is a
 1395  condition precedent to insurance coverage. The term also means
 1396  the failure of a financial institution to honor an insurance
 1397  applicant’s check after delivery to a licensed agent for payment
 1398  of a premium, even if the agent has previously delivered or
 1399  transferred the premium to the insurer. If a dishonored check
 1400  represents the initial premium payment, the contract and all
 1401  contractual obligations are void ab initio unless the nonpayment
 1402  is cured within the earlier of 5 days after actual notice by
 1403  certified mail is received by the applicant or 15 days after
 1404  notice is sent to the applicant by certified mail or registered
 1405  mail., and If the contract is void, any premium received by the
 1406  insurer from a third party must be refunded to that party in
 1407  full.
 1408         2.3. If such cancellation or termination occurs during the
 1409  first 90 days the insurance is in force and the insurance is
 1410  canceled or terminated for reasons other than nonpayment of
 1411  premium, at least 20 days’ written notice of cancellation or
 1412  termination accompanied by the reason therefor must be given
 1413  unless there has been a material misstatement or
 1414  misrepresentation or failure to comply with the underwriting
 1415  requirements established by the insurer.
 1416         3. After the policy has been in effect for 90 days, the
 1417  insurer may not cancel the policy unless there has been a
 1418  material misstatement, a nonpayment of premium, a failure to
 1419  comply with underwriting requirements established by the insurer
 1420  within 90 days after the date of effectuation of coverage, or a
 1421  substantial change in the risk covered by the policy or the
 1422  cancellation is for all insureds under such policies for a class
 1423  of insureds. This subparagraph does not apply to individually
 1424  rated risks having a policy term of less than 90 days.
 1425         4. After a policy or contract has been in effect for 90
 1426  days, the insurer may not cancel or terminate the policy or
 1427  contract based on credit information available in public
 1428  records. The requirement for providing written notice by June 1
 1429  of any nonrenewal that would be effective between June 1 and
 1430  November 30 does not apply to the following situations, but the
 1431  insurer remains subject to the requirement to provide such
 1432  notice at least 100 days before the effective date of
 1433  nonrenewal:
 1434         a. A policy that is nonrenewed due to a revision in the
 1435  coverage for sinkhole losses and catastrophic ground cover
 1436  collapse pursuant to s. 627.706.
 1437         5.b. A policy that is nonrenewed by Citizens Property
 1438  Insurance Corporation, pursuant to s. 627.351(6), for a policy
 1439  that has been assumed by an authorized insurer offering
 1440  replacement coverage to the policyholder is exempt from the
 1441  notice requirements of paragraph (a) and this paragraph. In such
 1442  cases, the corporation must give the named insured written
 1443  notice of nonrenewal at least 45 days before the effective date
 1444  of the nonrenewal.
 1445  
 1446  After the policy has been in effect for 90 days, the policy may
 1447  not be canceled by the insurer unless there has been a material
 1448  misstatement, a nonpayment of premium, a failure to comply with
 1449  underwriting requirements established by the insurer within 90
 1450  days after the date of effectuation of coverage, or a
 1451  substantial change in the risk covered by the policy or if the
 1452  cancellation is for all insureds under such policies for a given
 1453  class of insureds. This paragraph does not apply to individually
 1454  rated risks having a policy term of less than 90 days.
 1455         6.5. Notwithstanding any other provision of law, an insurer
 1456  may cancel or nonrenew a property insurance policy after at
 1457  least 45 days’ notice if the office finds that the early
 1458  cancellation of some or all of the insurer’s policies is
 1459  necessary to protect the best interests of the public or
 1460  policyholders and the office approves the insurer’s plan for
 1461  early cancellation or nonrenewal of some or all of its policies.
 1462  The office may base such finding upon the financial condition of
 1463  the insurer, lack of adequate reinsurance coverage for hurricane
 1464  risk, or other relevant factors. The office may condition its
 1465  finding on the consent of the insurer to be placed under
 1466  administrative supervision pursuant to s. 624.81 or to the
 1467  appointment of a receiver under chapter 631.
 1468         7.6. A policy covering both a home and a motor vehicle may
 1469  be nonrenewed for any reason applicable to either the property
 1470  or motor vehicle insurance after providing 90 days’ notice.
 1471         Section 38. Subsection (1) of section 627.4137, Florida
 1472  Statutes, is amended to read:
 1473         627.4137 Disclosure of certain information required.—
 1474         (1) Each insurer that provides which does or may provide
 1475  liability insurance coverage to pay all or a portion of a any
 1476  claim that which might be made shall provide, within 30 days
 1477  after of the written request of the claimant, provide a
 1478  statement, under oath, of a corporate officer or the insurer’s
 1479  claims manager, or superintendent, or licensed company adjuster
 1480  setting forth the following information with regard to each
 1481  known policy of insurance, including excess or umbrella
 1482  insurance:
 1483         (a) The name of the insurer.
 1484         (b) The name of each insured.
 1485         (c) The limits of the liability coverage.
 1486         (d) A statement of any policy or coverage defense that the
 1487  which such insurer reasonably believes is available to the such
 1488  insurer at the time of filing such statement.
 1489         (e) A copy of the policy.
 1490  
 1491  In addition, The insured, or her or his insurance agent, upon
 1492  written request of the claimant or the claimant’s attorney,
 1493  shall also disclose the name and coverage of each known insurer
 1494  to the claimant and shall forward the such request for
 1495  information as required by this subsection to all affected
 1496  insurers. The insurer shall then supply the required information
 1497  required in this subsection to the claimant within 30 days after
 1498  of receipt of such request.
 1499         Section 39. Subsection (1) of section 627.421, Florida
 1500  Statutes, is amended to read:
 1501         627.421 Delivery of policy.—
 1502         (1) Subject to the insurer’s requirement as to payment of
 1503  premium, every policy shall be mailed, delivered, or
 1504  electronically transmitted to the insured or to the person
 1505  entitled thereto within not later than 60 days after the
 1506  effectuation of coverage. Notwithstanding any other provision of
 1507  law, an insurer may allow a policyholder of personal lines
 1508  insurance to affirmatively elect delivery of the policy
 1509  documents, including policies, endorsements, notices, or other
 1510  documents, by electronic means in lieu of delivery by mail.
 1511  Electronic transmission of a policy for commercial risks,
 1512  including, but not limited to, workers’ compensation and
 1513  employers’ liability, commercial automobile liability,
 1514  commercial automobile physical damage, commercial lines
 1515  residential property, commercial nonresidential property, farm
 1516  owners’ insurance, and the types of commercial lines risks set
 1517  forth in s. 627.062(3)(d), constitute shall constitute delivery
 1518  to the insured or to the person entitled to delivery, unless the
 1519  insured or the person entitled to delivery communicates to the
 1520  insurer in writing or electronically that he or she does not
 1521  agree to delivery by electronic means. Electronic transmission
 1522  must shall include a notice to the insured or to the person
 1523  entitled to delivery of a policy of his or her right to receive
 1524  the policy via United States mail rather than via electronic
 1525  transmission. A paper copy of the policy shall be provided to
 1526  the insured or to the person entitled to delivery at his or her
 1527  request.
 1528         Section 40. Subsection (2) of section 627.43141, Florida
 1529  Statutes, is amended to read:
 1530         627.43141 Notice of change in policy terms.—
 1531         (2) A renewal policy may contain a change in policy terms.
 1532  If a renewal policy contains does contain such change, the
 1533  insurer must give the named insured written notice of the
 1534  change, which may must be enclosed along with the written notice
 1535  of renewal premium required by ss. 627.4133 and 627.728 or be
 1536  sent in a separate notice that complies with the nonrenewal
 1537  mailing time requirement for that particular line of business.
 1538  The insurer must also provide a sample copy of the notice to the
 1539  insured’s insurance agent before or at the same time that notice
 1540  is given to the insured. Such notice shall be entitled “Notice
 1541  of Change in Policy Terms.”
 1542         Section 41. Section 627.4553, Florida Statutes, is created
 1543  to read:
 1544         627.4553 Recommendations to surrender.—If an insurance
 1545  agent recommends the surrender of an annuity or life insurance
 1546  policy containing a cash value and is not recommending that the
 1547  proceeds from the surrender be used to fund or purchase another
 1548  annuity or life insurance policy, before execution of the
 1549  surrender, the insurance agent, or the insurance company if no
 1550  agent is involved, shall provide, on a form adopted by rule by
 1551  the department, information concerning the annuity or policy to
 1552  be surrendered, including the amount of any surrender charge,
 1553  the loss of any minimum interest rate guarantees, the amount of
 1554  any tax consequences resulting from the surrender, the amount of
 1555  any forfeited death benefit, and the value of any other
 1556  investment performance guarantees being forfeited as a result of
 1557  the surrender. This section also applies to a person performing
 1558  insurance agent activities pursuant to an exemption from
 1559  licensure under this part.
 1560         Section 42. Paragraph (b) of subsection (4) of section
 1561  627.7015, Florida Statutes, is amended to read:
 1562         627.7015 Alternative procedure for resolution of disputed
 1563  property insurance claims.—
 1564         (4) The department shall adopt by rule a property insurance
 1565  mediation program to be administered by the department or its
 1566  designee. The department may also adopt special rules which are
 1567  applicable in cases of an emergency within the state. The rules
 1568  shall be modeled after practices and procedures set forth in
 1569  mediation rules of procedure adopted by the Supreme Court. The
 1570  rules must shall provide for:
 1571         (b) Qualifications, denial of application, suspension,
 1572  revocation of approval, and other penalties for of mediators as
 1573  provided in s. 627.745 and in the Florida Rules for of Certified
 1574  and Court-Appointed Court Appointed Mediators, and for such
 1575  other individuals as are qualified by education, training, or
 1576  experience as the department determines to be appropriate.
 1577         Section 43. Section 627.70151, Florida Statutes, is created
 1578  to read:
 1579         627.70151 Appraisal; conflicts of interest.—An insurer that
 1580  offers residential coverage, as defined in s. 627.4025, or a
 1581  policyholder that uses an appraisal clause in the property
 1582  insurance contract to establish a process for estimating or
 1583  evaluating the amount of the loss through the use of an
 1584  impartial umpire may challenge the umpire’s impartiality and
 1585  disqualify the proposed umpire only if:
 1586         (1) A familial relationship within the third degree exists
 1587  between the umpire and a party or a representative of a party;
 1588         (2) The umpire has previously represented a party or a
 1589  representative of a party in a professional capacity in the same
 1590  or a substantially related matter;
 1591         (3) The umpire has represented another person in a
 1592  professional capacity on the same or a substantially related
 1593  matter, which includes the claim, same property, or an adjacent
 1594  property and that other person’s interests are materially
 1595  adverse to the interests of any party; or
 1596         (4) The umpire has worked as an employer or employee of a
 1597  party within the preceding 5 years.
 1598         Section 44. Paragraph (c) of subsection (2) of section
 1599  627.706, Florida Statutes, is amended to read:
 1600         627.706 Sinkhole insurance; catastrophic ground cover
 1601  collapse; definitions.—
 1602         (2) As used in ss. 627.706-627.7074, and as used in
 1603  connection with any policy providing coverage for a catastrophic
 1604  ground cover collapse or for sinkhole losses, the term:
 1605         (c) “Neutral evaluator” means a professional engineer or a
 1606  professional geologist who has completed a course of study in
 1607  alternative dispute resolution designed or approved by the
 1608  department for use in the neutral evaluation process, and who is
 1609  determined by the department to be fair and impartial, and who
 1610  is not otherwise ineligible for certification as provided in s.
 1611  627.7074.
 1612         Section 45. Subsections (3), (7), and (18) of section
 1613  627.7074, Florida Statutes, are amended to read:
 1614         627.7074 Alternative procedure for resolution of disputed
 1615  sinkhole insurance claims.—
 1616         (3) Following the receipt of the report required provided
 1617  under s. 627.7073 or the denial of a claim for a sinkhole loss,
 1618  the insurer shall notify the policyholder of his or her right to
 1619  participate in the neutral evaluation program under this section
 1620  if coverage is available under the policy and the claim was
 1621  submitted within the timeframe provided in s. 627.706(5).
 1622  Neutral evaluation supersedes the alternative dispute resolution
 1623  process under s. 627.7015 but does not invalidate the appraisal
 1624  clause of the insurance policy. The insurer shall provide to the
 1625  policyholder the consumer information pamphlet prepared by the
 1626  department pursuant to subsection (1) electronically or by
 1627  United States mail.
 1628         (7) Upon receipt of a request for neutral evaluation, the
 1629  department shall provide the parties a list of certified neutral
 1630  evaluators. The department shall allow the parties to submit
 1631  requests for disqualifying to disqualify evaluators on the list
 1632  for cause.
 1633         (a) The department shall disqualify neutral evaluators for
 1634  cause based only on any of the following grounds:
 1635         1. A familial relationship exists between the neutral
 1636  evaluator and either party or a representative of either party
 1637  within the third degree.
 1638         2. The proposed neutral evaluator has, in a professional
 1639  capacity, previously represented either party or a
 1640  representative of either party, in the same or a substantially
 1641  related matter.
 1642         3. The proposed neutral evaluator has, in a professional
 1643  capacity, represented another person in the same or a
 1644  substantially related matter and that person’s interests are
 1645  materially adverse to the interests of the parties. The term
 1646  “substantially related matter” means participation by the
 1647  neutral evaluator on the same claim, property, or adjacent
 1648  property.
 1649         4. The proposed neutral evaluator has, within the preceding
 1650  5 years, worked as an employer or employee of a any party to the
 1651  case.
 1652         (b) The department shall deny an application, or suspend or
 1653  revoke the certification, of a neutral evaluator to serve in the
 1654  neutral evaluator capacity if the department finds that one or
 1655  more of the following grounds exist:
 1656         1. Lack of one or more of the qualifications for
 1657  certification specified in this section.
 1658         2. Material misstatement, misrepresentation, or fraud in
 1659  obtaining or attempting to obtain the certification.
 1660         3. Demonstrated lack of fitness or trustworthiness to act
 1661  as a neutral evaluator.
 1662         4. Fraudulent or dishonest practices in the conduct of an
 1663  evaluation or in the conduct of business in the financial
 1664  services industry.
 1665         5. Violation of any provision of this code or of a lawful
 1666  order or rule of the department or aiding, instructing, or
 1667  encouraging another party to commit such violation.
 1668         (c)(b) The parties shall appoint a neutral evaluator from
 1669  the department list and promptly inform the department. If the
 1670  parties cannot agree to a neutral evaluator within 14 business
 1671  days, the department shall appoint a neutral evaluator from the
 1672  list of certified neutral evaluators. The department shall allow
 1673  each party to disqualify two neutral evaluators without cause.
 1674  Upon selection or appointment, the department shall promptly
 1675  refer the request to the neutral evaluator.
 1676         (d)(c) Within 14 business days after the referral, the
 1677  neutral evaluator shall notify the policyholder and the insurer
 1678  of the date, time, and place of the neutral evaluation
 1679  conference. The conference may be held by telephone, if feasible
 1680  and desirable. The neutral evaluator shall make reasonable
 1681  efforts to hold the conference within 90 days after the receipt
 1682  of the request by the department. Failure of the neutral
 1683  evaluator to hold the conference within 90 days does not
 1684  invalidate either party’s right to neutral evaluation or to a
 1685  neutral evaluation conference held outside this timeframe.
 1686         (18) The department shall adopt rules of procedure for the
 1687  neutral evaluation process and for certifying, denying or
 1688  suspending the certification of, and revoking certification as,
 1689  a neutral evaluator.
 1690         Section 46. Subsection (8) of section 627.711, Florida
 1691  Statutes, is amended to read:
 1692         627.711 Notice of premium discounts for hurricane loss
 1693  mitigation; uniform mitigation verification inspection form.—
 1694         (8) At its expense, the insurer may require that a uniform
 1695  mitigation verification form provided by a policyholder, a
 1696  policyholder’s agent, or an authorized mitigation inspector or
 1697  inspection company be independently verified by an inspector, an
 1698  inspection company, or an independent third-party quality
 1699  assurance provider that which possesses a quality assurance
 1700  program before accepting the uniform mitigation verification
 1701  form as valid. The insurer may exempt from additional
 1702  independent verification any uniform mitigation verification
 1703  form provided by a policyholder, a policyholder’s agent, an
 1704  authorized mitigation inspector, or an inspection company that
 1705  possesses a quality assurance program that meets the standards
 1706  established by the insurer. A uniform mitigation verification
 1707  form provided by a policyholder, a policyholder’s agent, an
 1708  authorized mitigation inspector, or an inspection company to
 1709  Citizens Property Insurance Corporation is not subject to
 1710  additional verification, and the property is not subject to
 1711  reinspection by the corporation, absent material changes to the
 1712  structure for the term stated on the form if the form signed by
 1713  a qualified inspector was submitted to, reviewed, and verified
 1714  by a quality assurance program approved by the corporation
 1715  before submission to the corporation.
 1716         Section 47. Subsections (1), (2), and (3) of section
 1717  627.7283, Florida Statutes, are amended to read:
 1718         627.7283 Cancellation; return of premium.—
 1719         (1) If the insured cancels a policy of motor vehicle
 1720  insurance, the insurer must mail or electronically transfer the
 1721  unearned portion of any premium paid within 30 days after the
 1722  effective date of the policy cancellation or receipt of notice
 1723  or request for cancellation, whichever is later. This
 1724  requirement applies to a cancellation initiated by an insured
 1725  for any reason.
 1726         (2) If an insurer cancels a policy of motor vehicle
 1727  insurance, the insurer must mail or electronically transfer the
 1728  unearned premium portion of any premium within 15 days after the
 1729  effective date of the policy cancellation.
 1730         (3) If the unearned premium is not mailed or electronically
 1731  transferred within the applicable period, the insurer must pay
 1732  to the insured 8 percent interest on the amount due. If the
 1733  unearned premium is not mailed or electronically transferred
 1734  within 45 days after the applicable period, the insured may
 1735  bring an action against the insurer pursuant to s. 624.155.
 1736         Section 48. Paragraph (a) of subsection (5) of section
 1737  627.736, Florida Statutes, is amended to read:
 1738         627.736 Required personal injury protection benefits;
 1739  exclusions; priority; claims.—
 1740         (5) CHARGES FOR TREATMENT OF INJURED PERSONS.—
 1741         (a) A physician, hospital, clinic, or other person or
 1742  institution lawfully rendering treatment to an injured person
 1743  for a bodily injury covered by personal injury protection
 1744  insurance may charge the insurer and injured party only a
 1745  reasonable amount pursuant to this section for the services and
 1746  supplies rendered, and the insurer providing such coverage may
 1747  directly pay for such charges directly to the such person or
 1748  institution lawfully rendering such treatment if the insured
 1749  receiving such treatment or his or her guardian has
 1750  countersigned the properly completed invoice, bill, or claim
 1751  form approved by the office upon which such charges are to be
 1752  paid for as having actually been rendered, to the best knowledge
 1753  of the insured or his or her guardian. However, such a charge
 1754  may not exceed the amount the person or institution customarily
 1755  charges for like services or supplies. In determining whether a
 1756  charge for a particular service, treatment, or otherwise is
 1757  reasonable, consideration may be given to evidence of usual and
 1758  customary charges and payments accepted by the provider involved
 1759  in the dispute, reimbursement levels in the community and
 1760  various federal and state medical fee schedules applicable to
 1761  motor vehicle and other insurance coverages, and other
 1762  information relevant to the reasonableness of the reimbursement
 1763  for the service, treatment, or supply.
 1764         1. The insurer may limit reimbursement to 80 percent of the
 1765  following schedule of maximum charges:
 1766         a. For emergency transport and treatment by providers
 1767  licensed under chapter 401, 200 percent of Medicare.
 1768         b. For emergency services and care provided by a hospital
 1769  licensed under chapter 395, 75 percent of the hospital’s usual
 1770  and customary charges.
 1771         c. For emergency services and care as defined by s. 395.002
 1772  provided in a facility licensed under chapter 395 rendered by a
 1773  physician or dentist, and related hospital inpatient services
 1774  rendered by a physician or dentist, the usual and customary
 1775  charges in the community.
 1776         d. For hospital inpatient services, other than emergency
 1777  services and care, 200 percent of the Medicare Part A
 1778  prospective payment applicable to the specific hospital
 1779  providing the inpatient services.
 1780         e. For hospital outpatient services, other than emergency
 1781  services and care, 200 percent of the Medicare Part A Ambulatory
 1782  Payment Classification for the specific hospital providing the
 1783  outpatient services.
 1784         f. For all other medical services, supplies, and care, 200
 1785  percent of the allowable amount under:
 1786         (I) The participating physicians fee schedule of Medicare
 1787  Part B, except as provided in sub-sub-subparagraphs (II) and
 1788  (III).
 1789         (II) Medicare Part B, in the case of services, supplies,
 1790  and care provided by ambulatory surgical centers and clinical
 1791  laboratories.
 1792         (III) The Durable Medical Equipment Prosthetics/Orthotics
 1793  and Supplies fee schedule of Medicare Part B, in the case of
 1794  durable medical equipment.
 1795  
 1796  However, if such services, supplies, or care is not reimbursable
 1797  under Medicare Part B, as provided in this sub-subparagraph, the
 1798  insurer may limit reimbursement to 80 percent of the maximum
 1799  reimbursable allowance under workers’ compensation, as
 1800  determined under s. 440.13 and rules adopted thereunder which
 1801  are in effect at the time such services, supplies, or care is
 1802  provided. Services, supplies, or care that is not reimbursable
 1803  under Medicare or workers’ compensation is not required to be
 1804  reimbursed by the insurer.
 1805         2. For purposes of subparagraph 1., the applicable fee
 1806  schedule or payment limitation under Medicare is the fee
 1807  schedule or payment limitation in effect on March 1 of the year
 1808  in which the services, supplies, or care is rendered and for the
 1809  area in which such services, supplies, or care is rendered, and
 1810  the applicable fee schedule or payment limitation applies from
 1811  March 1 until the last day of February throughout the remainder
 1812  of the following that year, notwithstanding any subsequent
 1813  change made to the fee schedule or payment limitation, except
 1814  that it may not be less than the allowable amount under the
 1815  applicable schedule of Medicare Part B for 2007 for medical
 1816  services, supplies, and care subject to Medicare Part B.
 1817         3. Subparagraph 1. does not allow the insurer to apply a
 1818  any limitation on the number of treatments or other utilization
 1819  limits that apply under Medicare or workers’ compensation. An
 1820  insurer that applies the allowable payment limitations of
 1821  subparagraph 1. must reimburse a provider who lawfully provided
 1822  care or treatment under the scope of his or her license,
 1823  regardless of whether such provider is entitled to reimbursement
 1824  under Medicare due to restrictions or limitations on the types
 1825  or discipline of health care providers who may be reimbursed for
 1826  particular procedures or procedure codes. However, subparagraph
 1827  1. does not prohibit an insurer from using the Medicare coding
 1828  policies and payment methodologies of the federal Centers for
 1829  Medicare and Medicaid Services, including applicable modifiers,
 1830  to determine the appropriate amount of reimbursement for medical
 1831  services, supplies, or care if the coding policy or payment
 1832  methodology does not constitute a utilization limit.
 1833         4. If an insurer limits payment as authorized by
 1834  subparagraph 1., the person providing such services, supplies,
 1835  or care may not bill or attempt to collect from the insured any
 1836  amount in excess of such limits, except for amounts that are not
 1837  covered by the insured’s personal injury protection coverage due
 1838  to the coinsurance amount or maximum policy limits.
 1839         5. Effective July 1, 2012, An insurer may limit payment as
 1840  authorized by this paragraph only if the insurance policy
 1841  includes a notice at the time of issuance or renewal that the
 1842  insurer may limit payment pursuant to the schedule of charges
 1843  specified in this paragraph. A policy form approved by the
 1844  office satisfies this requirement. If a provider submits a
 1845  charge for an amount less than the amount allowed under
 1846  subparagraph 1., the insurer may pay the amount of the charge
 1847  submitted.
 1848         Section 49. Subsection (1) and paragraphs (a) and (b) of
 1849  subsection (2) of section 627.744, Florida Statutes, are amended
 1850  to read:
 1851         627.744 Required preinsurance inspection of private
 1852  passenger motor vehicles.—
 1853         (1) A private passenger motor vehicle insurance policy
 1854  providing physical damage coverage, including collision or
 1855  comprehensive coverage, may not be issued in this state unless
 1856  the insurer has inspected the motor vehicle in accordance with
 1857  this section. Physical damage coverage on a motor vehicle may
 1858  not be suspended during the term of the policy due to the
 1859  applicant’s failure to provide required documents. However,
 1860  payment of a claim may be conditioned upon the insurer’s receipt
 1861  of the required documents, and physical damage loss occurring
 1862  after the effective date of coverage is not payable until the
 1863  documents are provided to the insurer.
 1864         (2) This section does not apply:
 1865         (a) To a policy for a policyholder who has been insured for
 1866  2 years or longer, without interruption, under a private
 1867  passenger motor vehicle policy that which provides physical
 1868  damage coverage for any vehicle, if the agent of the insurer
 1869  verifies the previous coverage.
 1870         (b) To a new, unused motor vehicle purchased or leased from
 1871  a licensed motor vehicle dealer or leasing company, if the
 1872  insurer is provided with:
 1873         1. A bill of sale, or buyer’s order, or lease agreement
 1874  that which contains a full description of the motor vehicle,
 1875  including all options and accessories; or
 1876         2. A copy of the title or registration that which
 1877  establishes transfer of ownership from the dealer or leasing
 1878  company to the customer and a copy of the window sticker or the
 1879  dealer invoice showing the itemized options and equipment and
 1880  the total retail price of the vehicle.
 1881  
 1882  For the purposes of this paragraph, the physical damage coverage
 1883  on the motor vehicle may not be suspended during the term of the
 1884  policy due to the applicant’s failure to provide the required
 1885  documents. However, payment of a claim is conditioned upon the
 1886  receipt by the insurer of the required documents, and no
 1887  physical damage loss occurring after the effective date of the
 1888  coverage is payable until the documents are provided to the
 1889  insurer.
 1890         Section 50. Paragraph (b) of subsection (3) of section
 1891  627.745, Florida Statutes, is amended, present subsections (4)
 1892  and (5) of that section are redesignated as subsections (5) and
 1893  (6), respectively, and a new subsection (4) is added to that
 1894  section, to read:
 1895         627.745 Mediation of claims.—
 1896         (3)
 1897         (b) To qualify for approval as a mediator, an individual a
 1898  person must meet one of the following qualifications:
 1899         1. Possess an active certification as a Florida Supreme
 1900  Court certified circuit court mediator. A circuit court mediator
 1901  whose certification is in a lapsed, suspended, or decertified
 1902  status is not eligible to participate in the program a masters
 1903  or doctorate degree in psychology, counseling, business,
 1904  accounting, or economics, be a member of The Florida Bar, be
 1905  licensed as a certified public accountant, or demonstrate that
 1906  the applicant for approval has been actively engaged as a
 1907  qualified mediator for at least 4 years prior to July 1, 1990.
 1908         2. Be an approved department mediator as of July 1, 2014,
 1909  and have conducted at least one mediation on behalf of the
 1910  department within the 4 years immediately preceding that the
 1911  date the application for approval is filed with the department,
 1912  have completed a minimum of a 40-hour training program approved
 1913  by the department and successfully passed a final examination
 1914  included in the training program and approved by the department.
 1915  The training program shall include and address all of the
 1916  following:
 1917         a. Mediation theory.
 1918         b. Mediation process and techniques.
 1919         c. Standards of conduct for mediators.
 1920         d. Conflict management and intervention skills.
 1921         e. Insurance nomenclature.
 1922         (4) The department shall deny an application, or suspend or
 1923  revoke its approval of a mediator or certification of a neutral
 1924  evaluator to serve in such capacity, if the department finds
 1925  that any of the following grounds exist:
 1926         (a) Lack of one or more of the qualifications for approval
 1927  or certification specified in this section.
 1928         (b) Material misstatement, misrepresentation, or fraud in
 1929  obtaining, or attempting to obtain, the approval or
 1930  certification.
 1931         (c) Demonstrated lack of fitness or trustworthiness to act
 1932  as a mediator or neutral evaluator.
 1933         (d) Fraudulent or dishonest practices in the conduct of
 1934  mediation or neutral evaluation or in the conduct of business in
 1935  the financial services industry.
 1936         (e) Violation of any provision of this code or of a lawful
 1937  order or rule of the department, violation of the Florida Rules
 1938  of Certified and Court Appointed Mediators, or aiding,
 1939  instructing, or encouraging another party in committing such a
 1940  violation.
 1941  
 1942  The department may adopt rules to administer this subsection.
 1943         Section 51. Subsection (8) of section 627.782, Florida
 1944  Statutes, is amended to read:
 1945         627.782 Adoption of rates.—
 1946         (8) Each title insurance agency and insurer licensed to do
 1947  business in this state and each insurer’s direct or retail
 1948  business in this state shall maintain and submit information,
 1949  including revenue, loss, and expense data, as the office
 1950  determines necessary to assist in the analysis of title
 1951  insurance premium rates, title search costs, and the condition
 1952  of the title insurance industry in this state. This information
 1953  must be transmitted to the office annually by May March 31 of
 1954  the year after the reporting year. The commission shall adopt
 1955  rules regarding the collection and analysis of the data from the
 1956  title insurance industry.
 1957         Section 52. Subsections (1), (3), (10), and (12) of section
 1958  628.461, Florida Statutes, are amended to read:
 1959         628.461 Acquisition of controlling stock.—
 1960         (1) A person may not, individually or in conjunction with
 1961  an any affiliated person of such person, acquire directly or
 1962  indirectly, conclude a tender offer or exchange offer for, enter
 1963  into any agreement to exchange securities for, or otherwise
 1964  finally acquire 10 5 percent or more of the outstanding voting
 1965  securities of a domestic stock insurer or of a controlling
 1966  company, unless:
 1967         (a) The person or affiliated person has filed with the
 1968  office and sent to the insurer and controlling company a letter
 1969  of notification regarding the transaction or proposed
 1970  transaction within no later than 5 days after any form of tender
 1971  offer or exchange offer is proposed, or within no later than 5
 1972  days after the acquisition of the securities if no tender offer
 1973  or exchange offer is involved. The notification must be provided
 1974  on forms prescribed by the commission containing information
 1975  determined necessary to understand the transaction and identify
 1976  all purchasers and owners involved;
 1977         (b) The person or affiliated person has filed with the
 1978  office a statement as specified in subsection (3). The statement
 1979  must be completed and filed within 30 days after:
 1980         1. Any definitive acquisition agreement is entered;
 1981         2. Any form of tender offer or exchange offer is proposed;
 1982  or
 1983         3. The acquisition of the securities, if no definitive
 1984  acquisition agreement, tender offer, or exchange offer is
 1985  involved; and
 1986         (c) The office has approved the tender or exchange offer,
 1987  or acquisition if no tender offer or exchange offer is involved,
 1988  and approval is in effect.
 1989  
 1990  In lieu of a filing as required under this subsection, a party
 1991  acquiring less than 10 percent of the outstanding voting
 1992  securities of an insurer may file a disclaimer of affiliation
 1993  and control. The disclaimer shall fully disclose all material
 1994  relationships and basis for affiliation between the person and
 1995  the insurer as well as the basis for disclaiming the affiliation
 1996  and control. After a disclaimer has been filed, the insurer
 1997  shall be relieved of any duty to register or report under this
 1998  section which may arise out of the insurer’s relationship with
 1999  the person unless and until the office disallows the disclaimer.
 2000  The office shall disallow a disclaimer only after furnishing all
 2001  parties in interest with notice and opportunity to be heard and
 2002  after making specific findings of fact to support the
 2003  disallowance. A filing as required under this subsection must be
 2004  made as to any acquisition that equals or exceeds 10 percent of
 2005  the outstanding voting securities.
 2006         (3) The statement to be filed with the office under
 2007  subsection (1) and furnished to the insurer and controlling
 2008  company must shall contain the following information and any
 2009  additional information as the office deems necessary to
 2010  determine the character, experience, ability, and other
 2011  qualifications of the person or affiliated person of such person
 2012  for the protection of the policyholders and shareholders of the
 2013  insurer and the public:
 2014         (a) The identity of, and the background information
 2015  specified in subsection (4) on, each natural person by whom, or
 2016  on whose behalf, the acquisition is to be made; and, if the
 2017  acquisition is to be made by, or on behalf of, a corporation,
 2018  association, or trust, as to the corporation, association, or
 2019  trust and as to any person who controls either directly or
 2020  indirectly controls the corporation, association, or trust, the
 2021  identity of, and the background information specified in
 2022  subsection (4) on, each director, officer, trustee, or other
 2023  natural person performing duties similar to those of a director,
 2024  officer, or trustee for the corporation, association, or trust;
 2025         (b) The source and amount of the funds or other
 2026  consideration used, or to be used, in making the acquisition;
 2027         (c) Any plans or proposals that which such persons may have
 2028  made to liquidate such insurer, to sell any of its assets or
 2029  merge or consolidate it with any person, or to make any other
 2030  major change in its business or corporate structure or
 2031  management; and any plans or proposals that which such persons
 2032  may have made to liquidate any controlling company of such
 2033  insurer, to sell any of its assets or merge or consolidate it
 2034  with any person, or to make any other major change in its
 2035  business or corporate structure or management;
 2036         (d) The number of shares or other securities which the
 2037  person or affiliated person of such person proposes to acquire,
 2038  the terms of the proposed acquisition, and the manner in which
 2039  the securities are to be acquired; and
 2040         (e) Information as to any contract, arrangement, or
 2041  understanding with any party with respect to any of the
 2042  securities of the insurer or controlling company, including, but
 2043  not limited to, information relating to the transfer of any of
 2044  the securities, option arrangements, puts or calls, or the
 2045  giving or withholding of proxies, which information names the
 2046  party with whom the contract, arrangement, or understanding has
 2047  been entered into and gives the details thereof.
 2048         (10) Upon notification to the office by the domestic stock
 2049  insurer or a controlling company that any person or any
 2050  affiliated person of such person has acquired 10 5 percent or
 2051  more of the outstanding voting securities of the domestic stock
 2052  insurer or controlling company without complying with the
 2053  provisions of this section, the office shall order that the
 2054  person and any affiliated person of such person cease
 2055  acquisition of any further securities of the domestic stock
 2056  insurer or controlling company; however, the person or any
 2057  affiliated person of such person may request a proceeding, which
 2058  proceeding shall be convened within 7 days after the rendering
 2059  of the order for the sole purpose of determining whether the
 2060  person, individually or in connection with an any affiliated
 2061  person of such person, has acquired 10 5 percent or more of the
 2062  outstanding voting securities of a domestic stock insurer or
 2063  controlling company. Upon the failure of the person or
 2064  affiliated person to request a hearing within 7 days, or upon a
 2065  determination at a hearing convened pursuant to this subsection
 2066  that the person or affiliated person has acquired voting
 2067  securities of a domestic stock insurer or controlling company in
 2068  violation of this section, the office may order the person and
 2069  affiliated person to divest themselves of any voting securities
 2070  so acquired.
 2071         (12)(a)A presumption of control may be rebutted by filing
 2072  a disclaimer of control. A person may file a disclaimer of
 2073  control with the office. The disclaimer must fully disclose all
 2074  material relationships and bases for affiliation between the
 2075  person and the insurer as well as the basis for disclaiming the
 2076  affiliation. The disclaimer of control shall be filed on a form
 2077  prescribed by the office, or a person or acquiring party may
 2078  file with the office a copy of a Schedule 13G on file with the
 2079  Securities and Exchange Commission pursuant to Rule 13d-1(b) or
 2080  Rule 13d-1(c) under the Securities Exchange Act of 1934, as
 2081  amended. After a disclaimer is filed, the insurer is relieved of
 2082  any duty to register or report under this section which may
 2083  arise out of the insurer’s relationship with the person, unless
 2084  the office disallows the disclaimer. For the purpose of this
 2085  section, the term “affiliated person” of another person means:
 2086         1. The spouse of such other person;
 2087         2. The parents of such other person and their lineal
 2088  descendants and the parents of such other person’s spouse and
 2089  their lineal descendants;
 2090         3. Any person who directly or indirectly owns or controls,
 2091  or holds with power to vote, 5 percent or more of the
 2092  outstanding voting securities of such other person;
 2093         4. Any person 5 percent or more of the outstanding voting
 2094  securities of which are directly or indirectly owned or
 2095  controlled, or held with power to vote, by such other person;
 2096         5. Any person or group of persons who directly or
 2097  indirectly control, are controlled by, or are under common
 2098  control with such other person;
 2099         6. Any officer, director, partner, copartner, or employee
 2100  of such other person;
 2101         7. If such other person is an investment company, any
 2102  investment adviser of such company or any member of an advisory
 2103  board of such company;
 2104         8. If such other person is an unincorporated investment
 2105  company not having a board of directors, the depositor of such
 2106  company; or
 2107         9. Any person who has entered into an agreement, written or
 2108  unwritten, to act in concert with such other person in acquiring
 2109  or limiting the disposition of securities of a domestic stock
 2110  insurer or controlling company.
 2111         (b) For the purposes of this section, the term “controlling
 2112  company” means any corporation, trust, or association owning,
 2113  directly or indirectly, 25 percent or more of the voting
 2114  securities of one or more domestic stock insurance companies.
 2115         Section 53. Subsection (11) of section 631.717, Florida
 2116  Statutes, is amended to read:
 2117         631.717 Powers and duties of the association.—
 2118         (11) The association is shall not be liable for any civil
 2119  action under s. 624.155 arising from any acts alleged to have
 2120  been committed by a member insurer before prior to its
 2121  liquidation. This subsection does not affect the association’s
 2122  obligation to pay valid insurance policy or contract claims if
 2123  warranted after its independent de novo review of the policies,
 2124  contracts, and claims presented to it, whether domestic or
 2125  foreign, after a Florida domestic rehabilitation or a
 2126  liquidation.
 2127         Section 54. Section 631.737, Florida Statutes, is amended
 2128  to read:
 2129         631.737 Rescission and review generally.—The association
 2130  shall review claims and matters regarding covered policies based
 2131  upon the record available to it on and after the date of
 2132  liquidation. Notwithstanding any other provision of this part,
 2133  in order to allow for orderly claims administration by the
 2134  association, entry of a liquidation order by a court of
 2135  competent jurisdiction tolls shall be deemed to toll for 1 year
 2136  any rescission or noncontestable period allowed by the contract,
 2137  the policy, or by law. The association’s obligation is to pay
 2138  any valid insurance policy or contract claims, if warranted,
 2139  after its independent de novo review of the policies, contracts,
 2140  and claims presented to it, whether domestic or foreign, after a
 2141  rehabilitation or a liquidation.
 2142         Section 55. Subsections (6) and (7) of section 634.406,
 2143  Florida Statutes, are amended to read:
 2144         634.406 Financial requirements.—
 2145         (6) An association that which holds a license under this
 2146  part and which does not hold any other license under this
 2147  chapter may allow its premiums for service warranties written
 2148  under this part to exceed the ratio to net assets limitations of
 2149  this section if the association meets all of the following
 2150  conditions:
 2151         (a) Maintains net assets of at least $750,000.
 2152         (b) Uses Utilizes a contractual liability insurance policy
 2153  approved by the office that: which
 2154         1. Reimburses the service warranty association for 100
 2155  percent of its claims liability and is issued by an insurer that
 2156  maintains a policyholder surplus of at least $100 million; or
 2157         2. Complies with subsection (3) and is issued by an insurer
 2158  that maintains a policyholder surplus of at least $200 million.
 2159         (c) The insurer issuing the contractual liability insurance
 2160  policy:
 2161         1. Maintains a policyholder surplus of at least $100
 2162  million.
 2163         1.2. Is rated “A” or higher by A.M. Best Company or an
 2164  equivalent rating by another national rating service acceptable
 2165  to the office.
 2166         3. Is in no way affiliated with the warranty association.
 2167         2.4. In conjunction with the warranty association’s filing
 2168  of the quarterly and annual reports, provides, on a form
 2169  prescribed by the commission, a statement certifying the gross
 2170  written premiums in force reported by the warranty association
 2171  and a statement that all of the warranty association’s gross
 2172  written premium in force is covered under the contractual
 2173  liability policy, regardless of whether or not it has been
 2174  reported.
 2175         (7) A contractual liability policy must insure 100 percent
 2176  of an association’s claims exposure under all of the
 2177  association’s service warranty contracts, wherever written,
 2178  unless all of the following are satisfied:
 2179         (a) The contractual liability policy contains a clause that
 2180  specifically names the service warranty contract holders as sole
 2181  beneficiaries of the contractual liability policy and claims are
 2182  paid directly to the person making a claim under the contract;
 2183         (b) The contractual liability policy meets all other
 2184  requirements of this part, including subsection (3) of this
 2185  section, which are not inconsistent with this subsection;
 2186         (c) The association has been in existence for at least 5
 2187  years or the association is a wholly owned subsidiary of a
 2188  corporation that has been in existence and has been licensed as
 2189  a service warranty association in the state for at least 5
 2190  years, and:
 2191         1. Is listed and traded on a recognized stock exchange; is
 2192  listed in NASDAQ (National Association of Security Dealers
 2193  Automated Quotation system) and publicly traded in the over-the
 2194  counter securities market; is required to file either of Form
 2195  10-K, Form 100, or Form 20-G with the United States Securities
 2196  and Exchange Commission; or has American Depository Receipts
 2197  listed on a recognized stock exchange and publicly traded or is
 2198  the wholly owned subsidiary of a corporation that is listed and
 2199  traded on a recognized stock exchange; is listed in NASDAQ
 2200  (National Association of Security Dealers Automated Quotation
 2201  system) and publicly traded in the over-the-counter securities
 2202  market; is required to file Form 10-K, Form 100, or Form 20-G
 2203  with the United States Securities and Exchange Commission; or
 2204  has American Depository Receipts listed on a recognized stock
 2205  exchange and is publicly traded;
 2206         2. Maintains outstanding debt obligations, if any, rated in
 2207  the top four rating categories by a recognized rating service;
 2208         3. Has and maintains at all times a minimum net worth of
 2209  not less than $10 million as evidenced by audited financial
 2210  statements prepared by an independent certified public
 2211  accountant in accordance with generally accepted accounting
 2212  principles and submitted to the office annually; and
 2213         4. Is authorized to do business in this state; and
 2214         (d) The insurer issuing the contractual liability policy:
 2215         1. Maintains and has maintained for the preceding 5 years,
 2216  policyholder surplus of at least $100 million and is rated “A”
 2217  or higher by A.M. Best Company or has an equivalent rating by
 2218  another rating company acceptable to the office;
 2219         2. Holds a certificate of authority to do business in this
 2220  state and is approved to write this type of coverage; and
 2221         3. Acknowledges to the office quarterly that it insures all
 2222  of the association’s claims exposure under contracts delivered
 2223  in this state.
 2224  
 2225  If all the preceding conditions are satisfied, then the scope of
 2226  coverage under a contractual liability policy shall not be
 2227  required to exceed an association’s claims exposure under
 2228  service warranty contracts delivered in this state.
 2229         Section 56. Except as otherwise expressly provided in this
 2230  act, this act shall take effect July 1, 2014.