Florida Senate - 2015 COMMITTEE AMENDMENT
Bill No. SB 252
Ì180092ÊÎ180092
LEGISLATIVE ACTION
Senate . House
Comm: RCS .
03/04/2015 .
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The Committee on Banking and Insurance (Smith) recommended the
following:
1 Senate Amendment (with title amendment)
2
3 Delete lines 22 - 57
4 and insert:
5 Section 2. Paragraph (a) of subsection (1) of section
6 626.916, Florida Statutes, is amended to read:
7 626.916 Eligibility for export.—
8 (1) No insurance coverage shall be eligible for export
9 unless it meets all of the following conditions:
10 (a) The full amount of insurance required must not be
11 procurable, after a diligent effort has been made by the
12 producing agent to do so, from among the insurers authorized to
13 transact and actually writing that kind and class of insurance
14 in this state, and the amount of insurance exported shall be
15 only the excess over the amount so procurable from authorized
16 insurers. Surplus lines agents must verify that a diligent
17 effort has been made by requiring a properly documented
18 statement of diligent effort, which must be in the form
19 prescribed by department rule or, if a form is not prescribed by
20 rule, in the form of an affidavit, from the retail or producing
21 agent. However, to be in compliance with the diligent effort
22 requirement, the surplus lines agent’s reliance must be
23 reasonable under the particular circumstances surrounding the
24 export of that particular risk. Reasonableness shall be assessed
25 by taking into account factors which include, but are not
26 limited to, a regularly conducted program of verification of the
27 information provided by the retail or producing agent.
28 Declinations must be documented on a risk-by-risk basis. If it
29 is not possible to obtain the full amount of insurance required
30 by layering the risk, it is permissible to export the full
31 amount.
32 Section 3. Section 626.931, Florida Statutes, is amended to
33 read:
34 626.931 Agent affidavit and Insurer reporting
35 requirements.—
36 (1) Each surplus lines agent shall on or before the 45th
37 day following each calendar quarter file with the Florida
38 Surplus Lines Service Office an affidavit, on forms as
39 prescribed and furnished by the Florida Surplus Lines Service
40 Office, stating that all surplus lines insurance transacted by
41 him or her during such calendar quarter has been submitted to
42 the Florida Surplus Lines Service Office as required.
43 (2) The affidavit of the surplus lines agent shall include
44 efforts made to place coverages with authorized insurers and the
45 results thereof.
46 (1)(3) Each foreign insurer accepting premiums shall, on or
47 before the end of the month following each calendar quarter,
48 file with the Florida Surplus Lines Service Office a verified
49 report of all surplus lines insurance transacted by such insurer
50 for insurance risks located in this state during such calendar
51 quarter.
52 (2)(4) Each alien insurer accepting premiums shall, on or
53 before June 30 of each year, file with the Florida Surplus Lines
54 Service Office a verified report of all surplus lines insurance
55 transacted by such insurer for insurance risks located in this
56 state during the preceding calendar year.
57 (3)(5) The department may waive the filing requirements
58 described in subsections (1) and (2) (3) and (4).
59 (4)(6) Each insurer’s report and supporting information
60 shall be in a computer-readable format as determined by the
61 Florida Surplus Lines Service Office or shall be submitted on
62 forms prescribed by the Florida Surplus Lines Service Office and
63 shall show for each applicable agent:
64 (a) A listing of all policies, certificates, cover notes,
65 or other forms of confirmation of insurance coverage or any
66 substitutions thereof or endorsements thereto and the
67 identifying number; and
68 (b) Any additional information required by the department
69 or Florida Surplus Lines Service Office.
70 Section 4. Paragraph (a) of subsection (2) of section
71 626.932, Florida Statutes, is amended to read:
72 626.932 Surplus lines tax.—
73 (2)(a) The surplus lines agent shall make payable to the
74 department the tax related to each calendar quarter’s business
75 as reported to the Florida Surplus Lines Service Office, and
76 remit the tax to the Florida Surplus Lines Service Office on or
77 before the 45th day following each calendar quarter at the same
78 time as provided for the filing of the quarterly affidavit,
79 under s. 626.931. The Florida Surplus Lines Service Office shall
80 forward to the department the taxes and any interest collected
81 pursuant to paragraph (b), within 10 days of receipt.
82 Section 5. Paragraph (d) of subsection (1) of section
83 626.935, Florida Statutes, is amended to read:
84 626.935 Suspension, revocation, or refusal of surplus lines
85 agent’s license.—
86 (1) The department shall deny an application for, suspend,
87 revoke, or refuse to renew the appointment of a surplus lines
88 agent and all other licenses and appointments held by the
89 licensee under this code, on any of the following grounds:
90 (d) Failure to make and file his or her affidavit or
91 reports when due as required by s. 626.931.
92 Section 6. Subsection (1) of section 626.936, Florida
93 Statutes, is amended to read:
94 626.936 Failure to file reports or pay tax or service fee;
95 administrative penalty.—
96 (1) Any licensed surplus lines agent who neglects to file a
97 report or an affidavit in the form and within the time required
98 or provided for in the Surplus Lines Law may be fined up to $50
99 per day for each day the neglect continues, beginning the day
100 after the report or affidavit was due until the date the report
101 or affidavit is received. All sums collected under this section
102 shall be deposited into the Insurance Regulatory Trust Fund.
103
104 ================= T I T L E A M E N D M E N T ================
105 And the title is amended as follows:
106 Delete lines 2 - 9
107 and insert:
108 An act relating to insurance; amending s. 624.425,
109 F.S.; providing that the absence of a countersignature
110 does not affect the validity of a policy or contract
111 of insurance; amending s. 626.916, F.S.; requiring the
112 statement of diligent effort from a retail or
113 producing agent be in a specified form; amending s.
114 626.931, F.S.; deleting provisions that require
115 surplus lines agents to file a quarterly affidavit
116 with the Florida Surplus Lines Office; amending ss.
117 626.932, 626.935, and 626.936, F.S.; conforming
118 provisions to changes made by act; providing that the
119 act is remedial and