The Florida Senate

624.01  Short title.

624.02  "Insurance" defined.

624.03  "Insurer" defined.

624.031  "Self-insurance" defined.

624.04  "Person" defined.

624.05  "Department" defined.

624.06  "Domestic," "foreign," "alien" insurer defined.

624.07  "Domicile" defined.

624.075  "Commercially domiciled insurer" defined.

624.08  "State" defined.

624.09  "Authorized," "unauthorized" insurer defined.

624.10  Transacting insurance.

624.11  Compliance required.

624.12  Application of code as to fraternal benefit societies.

624.123  Certain international health insurance policies; exemption from code.

624.124  Motor vehicle services; exemption from code.

624.125  Certain motor vehicle service agreements; exemption from code.

624.126  Certain mutual aid associations; exemption from code.

624.127  Certain political subdivisions offering prepaid ambulance service plans; exemption from code.

624.128  Crime victims exemption.

624.129  Certain location and recovery services; exemption from code.

624.13  Particular provisions prevail.

624.15  General penalty.

624.155  Civil remedy.

624.19  Existing forms and filings.

624.21  Prospective operation of amendments to code.

624.215  Proposals for legislation which mandates health benefit coverage; review by Legislature.

624.01  Short title.--Chapters 624 through 632, 634, 635, 641, 642, 648, and 651 constitute the "Florida Insurance Code."

History.--s. 1, ch. 59-205; s. 3, ch. 76-168; s. 1, ch. 77-457; ss. 2, 3, ch. 81-318; ss. 1, 15, 809(1st), ch. 82-243; s. 1, ch. 85-321; s. 49, ch. 90-131; ss. 2, 187, 188, ch. 91-108; s. 4, ch. 91-429; s. 114, ch. 93-399; s. 10, ch. 99-3.

624.02  "Insurance" defined.--"Insurance" is a contract whereby one undertakes to indemnify another or pay or allow a specified amount or a determinable benefit upon determinable contingencies.

History.--s. 2, ch. 59-205; s. 3, ch. 76-168; s. 1, ch. 77-457; ss. 2, 3, ch. 81-318; ss. 15, 809(1st), ch. 82-243; ss. 187, 188, ch. 91-108; s. 4, ch. 91-429.

624.03  "Insurer" defined.--"Insurer" includes every person engaged as indemnitor, surety, or contractor in the business of entering into contracts of insurance or of annuity.

History.--s. 3, ch. 59-205; s. 3, ch. 76-168; s. 1, ch. 77-457; ss. 2, 3, ch. 81-318; ss. 15, 809(1st), ch. 82-243; ss. 187, 188, ch. 91-108; s. 4, ch. 91-429.

624.031  "Self-insurance" defined.--For the purposes of ss. 627.551 and 627.651, self-insurance includes any plan, fund, or program which is communicated or the benefits of which are described in writing to employees and which has heretofore been or is hereafter established by or on behalf of any individual, partnership, association, corporation, trustee, governmental unit, employer, or employee organization, or any other organized group, for the purpose of providing for employees or their beneficiaries through such individual, partnership, association, corporation, trustee, governmental unit, employer, or employee organization, or any other group, benefits in the event of sickness, accident, disability, or death. Self-insurance does not include:

(1)  Any plan with respect to which benefits are insured or reinsured by an insurance company or are provided by a health maintenance organization.

(2)  Any plan covering fewer than 10 employees in this state.

(3)  Any plan established and maintained as a pension or profit-sharing plan for the exclusive benefit of employees and their beneficiaries.

(4)  Any plan established and maintained for the purpose of complying with any workers' compensation law.

(5)  Any plan administered by or for the Federal Government.

(6)  Any plan with respect to payments by an employer continuing an employee's regular compensation, or part thereof, during an illness or disability.

(7)  Any plan which is primarily for the purpose of providing first aid care and treatment, at a dispensary of an employer, for injury or sickness of employees while engaged in their employment.

(8)  Any plan established and maintained for the purpose of providing malpractice coverage or professional liability coverage.

History.--ss. 2, 10, ch. 80-341; s. 2, ch. 81-318; s. 809(1st), ch. 82-243; s. 1, ch. 82-386; s. 77, ch. 83-216; ss. 3, 187, 188, ch. 91-108; s. 4, ch. 91-429.

624.04  "Person" defined.--"Person" includes an individual, insurer, company, association, organization, Lloyds, society, reciprocal insurer or interinsurance exchange, partnership, syndicate, business trust, corporation, agent, general agent, broker, solicitor, service representative, adjuster, and every legal entity.

History.--s. 4, ch. 59-205; s. 3, ch. 76-168; s. 1, ch. 77-457; ss. 2, 3, ch. 81-318; ss. 15, 809(1st), ch. 82-243; ss. 187, 188, ch. 91-108; s. 4, ch. 91-429.

624.05  "Department" defined.--"Department" means the Department of Insurance of this state, unless the context otherwise requires.

History.--s. 5, ch. 59-205; ss. 13, 35, ch. 69-106; s. 262, ch. 71-377; s. 3, ch. 76-168; s. 1, ch. 77-457; ss. 2, 3, ch. 81-318; ss. 15, 809(1st), ch. 82-243; ss. 187, 188, ch. 91-108; s. 4, ch. 91-429.

624.06  "Domestic," "foreign," "alien" insurer defined.--

(1)  A "domestic" insurer is one formed under the laws of this state.

(2)  A "foreign" insurer is one formed under the laws of any state, district, territory, or commonwealth of the United States other than this state.

(3)  An "alien" insurer is an insurer other than a domestic or foreign insurer.

History.--s. 6, ch. 59-205; s. 3, ch. 76-168; s. 1, ch. 77-457; ss. 2, 3, ch. 81-318; ss. 2, 15, 809(1st), ch. 82-243; ss. 187, 188, ch. 91-108; s. 4, ch. 91-429.

624.07  "Domicile" defined.--Except as provided in s. 631.011, the "domicile" of an insurer means:

(1)  As to Canadian insurers, Canada and the province under the laws of which the insurer was formed.

(2)  As to other alien insurers authorized to transact insurance in one or more states, the state designated by the insurer in writing filed with the department at the time of admission to this state or within 6 months after the effective date of this code, whichever date is the later, and may be any of the following states:

(a)  That in which the insurer was first authorized to transact insurance if the insurer is still so authorized.

(b)  That in which is located the insurer's principal place of business in the United States.

(c)  That in which is held the larger deposit of trusteed assets of the insurer for the protection of its policyholders and creditors in the United States.

If the insurer makes no such designation, its domicile shall be deemed to be that state in which is located its principal place of business in the United States.

(3)  As to alien insurers not authorized to transact insurance in one or more states, the country under the laws of which the insurer was formed.

(4)  As to all other insurers, the state under the laws of which the insurer was formed.

History.--s. 7, ch. 59-205; s. 3, ch. 76-168; s. 1, ch. 77-457; ss. 2, 3, ch. 81-318; ss. 3, 15, 809(1st), ch. 82-243; s. 2, ch. 82-386; ss. 187, 188, ch. 91-108; s. 4, ch. 91-429.

624.075  "Commercially domiciled insurer" defined.--Every foreign or alien insurer which is authorized to do business in this state and which, during its 3 preceding fiscal years taken together, or during any lesser period of time if it has been licensed to transact its business in this state only for the lesser period of time, has written an average of 25 percent or more direct premiums in this state than it has written in its state of domicile during the same period, and the direct premiums written constitute more than 55 percent of its total direct premiums written everywhere in the United States during its 3 preceding fiscal years taken together, or during any lesser period of time if it has been authorized to transact its business in this state only for the lesser period of time, as reported in its most recent applicable annual or quarterly statements, shall be deemed a "commercially domiciled insurer" within this state.

History.--s. 1, ch. 85-214; s. 1, ch. 86-286; ss. 187, 188, ch. 91-108; s. 4, ch. 91-429.

624.08  "State" defined.--When used in context signifying a jurisdiction other than the State of Florida, "state" means any state, district, territory, or commonwealth of the United States.

History.--s. 8, ch. 59-205; s. 3, ch. 76-168; s. 1, ch. 77-457; ss. 2, 3, ch. 81-318; ss. 5, 15, 809(1st), ch. 82-243; ss. 187, 188, ch. 91-108; s. 4, ch. 91-429.

624.09  "Authorized," "unauthorized" insurer defined.--

(1)  An "authorized" insurer is one duly authorized by a subsisting certificate of authority issued by the department to transact insurance in this state.

(2)  An "unauthorized" insurer is one not so authorized.

History.--s. 9, ch. 59-205; s. 13, 35, ch. 69-106; s. 3, ch. 76-168; s. 1, ch. 77-457; ss. 2, 3, ch. 81-318; ss. 15, 809(1st), ch. 82-243; ss. 187, 188, ch. 91-108; s. 4, ch. 91-429.

624.10  Transacting insurance.--"Transact" with respect to insurance includes any of the following, in addition to other applicable provisions of this code:

(1)  Solicitation or inducement.

(2)  Preliminary negotiations.

(3)  Effectuation of a contract of insurance.

(4)  Transaction of matters subsequent to effectuation of a contract of insurance and arising out of it.

History.--s. 10, ch. 59-205; s. 3, ch. 76-168; s. 1, ch. 77-457; ss. 2, 3, ch. 81-318; ss. 15, 809(1st), ch. 82-243; ss. 187, 188, ch. 91-108; s. 4, ch. 91-429.

624.11  Compliance required.--

(1)  No person shall transact insurance in this state, or relative to a subject of insurance resident, located, or to be performed in this state, without complying with the applicable provisions of this code.

(2)  Any risk retention group organized and existing under the provisions of the Product Liability Risk Retention Act of 1981 (Pub. L. No. 97-45), which has been licensed as an insurance company and authorized to engage in the business of insurance may transact insurance in this state and shall be subject to the provisions of ss. 624.15, 624.316, 624.418, 624.421, 624.4211, 624.422, 624.509, 626.041, 626.112, 626.611, 626.621, 626.741, 626.932, 626.938, 626.9541, 627.351, and 627.915; part I of chapter 631; and all other applicable provisions of the laws of this state. Any such group formed in another jurisdiction shall furnish to the department, upon request, a copy of any financial report submitted by the group in the licensing jurisdiction.

History.--s. 11, ch. 59-205; s. 3, ch. 76-168; s. 1, ch. 77-457; ss. 2, 3, ch. 81-318; ss. 6, 15, 809(1st), ch. 82-243; s. 3, ch. 82-386; s. 20, ch. 90-119; s. 10, ch. 90-248; ss. 184, 187, 188, ch. 91-108; s. 4, ch. 91-429.

624.12  Application of code as to fraternal benefit societies.--No provision of this code shall apply with respect to fraternal benefit societies (as identified in chapter 632), except as stated in chapter 632.

History.--s. 12, ch. 59-205; s. 3, ch. 76-168; s. 1, ch. 77-457; ss. 2, 3, ch. 81-318; ss. 15, 809(1st), ch. 82-243; ss. 187, 188, ch. 91-108; s. 4, ch. 91-429.

624.123  Certain international health insurance policies; exemption from code.--

(1)  International health insurance policies and applications may be solicited and sold in this state at any international airport to a resident of a foreign country. Such international health insurance policies shall be solicited and sold only by a licensed health insurance agent and underwritten only by an admitted insurer. For purposes of this subsection:

(a)  "International airport" means any airport in Florida with United States Customs service, which enplanes more than 1 million passengers per year.

(b)  "International health insurance policy" means health insurance, as defined in s. 627.6561(5)(a)2., which is offered to an individual, covering only a resident of a foreign country on an annual basis.

(c)  "Resident of a foreign country" does not include any United States citizen, any natural person maintaining his or her residence in this country, or any natural person staying in this state continuously for more than 120 days.

(2)  Any international health insurance policy sold, and any application provided, to residents of foreign countries pursuant to this subsection shall contain the following conspicuous, boldfaced disclaimer in at least 12-point type: "This individual health insurance policy may be sold only to a person not a resident of the United States. This policy does not comply with coverage, underwriting, and other provisions of the Florida Insurance Code, and must comply with coverage, underwriting, and other insurance regulatory provisions of your country of residence."

(3)  Any insurer underwriting international health insurance policies pursuant to this subsection is subject to all applicable provisions of the insurance code, except as otherwise provided in this subsection. International health insurance policies are not subject to any form approval, rate approval, underwriting restrictions, guaranteed availability, or coverage mandates provided in the insurance code. Health insurance agents who are licensed and appointed pursuant to chapter 626 may solicit, sell, effect, collect premium on, and deliver international health insurance policies in accordance with this section. Solicitation or sale of an international health insurance policy to a United States citizen or to a natural person not a resident of a foreign country is a willful violation of the provisions of s. 626.611.

(4)  Any international health insurance policy or application solicited, provided, entered into, issued, or delivered pursuant to this subsection is exempt from all provisions of the insurance code, except that such policy, contract, or agreement is subject to the provisions of ss. 624.155, 624.316, 624.3161, 626.951, 626.9511, 626.9521, 626.9541, 626.9551, 626.9561, 626.9571, 626.9581, 626.9591, 626.9601, 627.413, 627.4145, 627.428, and 627.6043.

History.--s. 82, ch. 98-199; s. 1, ch. 98-399; s. 11, ch. 99-3.

624.124  Motor vehicle services; exemption from code.--Any person may, in exchange for fees, dues, charges, or other consideration, provide any of the following services related to the ownership, operation, use, or maintenance of a motor vehicle without being deemed an insurer and without being subject to the provisions of this code:

(1)  Towing service.

(2)  Procuring from an insurer group coverage for bail and arrest bonds or for accidental death and dismemberment.

(3)  Emergency service.

(4)  Procuring prepaid legal services, or providing reimbursement for legal services, except that this shall not be deemed to be an exemption from chapter 642.

(5)  Offering assistance in locating or recovering stolen or missing motor vehicles.

(6)  Paying emergency living and transportation expenses of the owner of a motor vehicle when the motor vehicle is damaged.

For purposes of this section, "motor vehicle" has the same meaning specified by s. 634.011(6).

History.--s. 1, ch. 82-233; s. 1, ch. 86-286; ss. 187, 188, ch. 91-108; s. 4, ch. 91-429; s. 1, ch. 95-335.

624.125  Certain motor vehicle service agreements; exemption from code.--

(1)  Any person may, in exchange for fees, charges, or other consideration, solicit, offer, provide, enter into, issue, or deliver a motor vehicle service agreement indemnifying the service agreement holder against loss caused by the failure of any mechanical or component part or parts of a motor vehicle listed in the agreement arising out of the ownership, operation, and use of such motor vehicle when:

(a)1.  The premium charged for the motor vehicle service agreement does not exceed a total of $50 annually or $50 for the term of the agreement; or

2.  The difference in the price of substantially similar parts, or service connected therewith, sold with and without the agreement does not exceed a total of $50 annually or $50 for the term of the agreement;

(b)  The agreement is entered into incidentally to the sale of the part or parts or to the service connected therewith by the person soliciting, offering, providing, entering into, issuing, or delivering the motor vehicle service agreement; and

(c)  No other agreements are solicited, offered, provided, entered into, issued, or delivered by such person at any time on any other mechanical or component part or parts or service connected therewith on the same motor vehicle where the total of all payments exceeds $50 annually or $50 for the term of the agreement;

without being deemed an insurer and without being subject to the provisions of this code, provided that the agreement is not renewable or subject to extension or extendible.

(2)  Any person soliciting, offering, providing, entering into, issuing, or delivering a motor vehicle service agreement without being deemed an insurer and without being subject to this code pursuant to subsection (1) shall, as to any such agreement, be subject to the provisions of the Florida Deceptive and Unfair Trade Practices Act, part II of chapter 501.

History.--ss. 2, 50, ch. 85-321; ss. 4, 187, 188, ch. 91-108; s. 4, ch. 91-429.

624.126  Certain mutual aid associations; exemption from code.--

(1)  Any beneficial, relief, or mutual aid society, however organized, established prior to 1935 and formed by a religious organization, which religious organization qualifies as an exempt religious organization under Title 26, s. 501, of the Internal Revenue Code, and which society is formed for the purpose of aiding members who sustain property losses, and in which the coverages, privileges, and memberships in the society are confined to members of the religious organization, is exempt from the provisions of this code except as otherwise provided in this section, and to that extent any such society shall not be deemed to be an insurer.

(2)  Any person soliciting, offering, providing, entering into, issuing, or delivering a contract or agreement providing membership in a society pursuant to subsection (1) shall, as to any such contract or agreement, be subject to the provisions of ss. 626.951, 626.9511, 626.9521, 626.9541, 626.9551, 626.9561, 626.9571, 626.9581, 626.9591, 626.9601, and 626.9631.

History.--ss. 62, 70, ch. 89-360; ss. 187, 188, ch. 91-108; s. 4, ch. 91-429.

624.127  Certain political subdivisions offering prepaid ambulance service plans; exemption from code.--A political subdivision of this state which, on October 1, 1991, was operating an emergency medical services system established by special act and offers a prepaid ambulance service plan as part of its emergency medical services system shall, with respect to the prepaid ambulance services plan, be exempt from the provisions of the Florida Insurance Code.

History.--s. 35, ch. 92-78.

624.128  Crime victims exemption.--Any other provision of the Florida Statutes to the contrary notwithstanding, the deductible or copayment provision of any insurance policy shall not be applicable to a person determined eligible pursuant to the Florida Crimes Compensation Act, excluding s. 960.28.

History.--s. 17, ch. 94-342.

624.129  Certain location and recovery services; exemption from code.--

(1)  Any person may, in exchange for fees, dues, charges, or other consideration, not exceeding $300 annually (adjusted for increases in the Consumer Price Index after 1994) for each covered individual, provide services involving the registration of natural persons and related services identified in this section concerning the location and recovery of natural persons who are lost, missing, or abducted, without being deemed an insurer and without being subject to the provisions of this code.

(2)  For purposes of this section, the following shall be considered services related to the registration of natural persons:

(a)  Obtaining, compiling, storing, and retrieving biographical, statistical, pictorial, and similar information regarding natural persons desiring such services.

(b)  Providing educational, preventive, or remedial information or assistance relating to the possibility of natural persons being or becoming missing, lost, or abducted.

(c)  Contacting, assisting, or obtaining assistance from law enforcement officials, organizations concerned with missing persons, or the media regarding the search for and location and recovery of a natural person reported missing.

(d)  Providing or arranging to provide investigative, psychological, or social services and assistance in connection with the search for and location and recovery of a natural person reported missing.

(e)  In the discretion of the provider and as part of its investigative or search methods, offering a reward (but not a ransom) for information leading to the location or recovery of a natural person who is lost, missing, or abducted.

(3)  The written agreement or enrollment form used by the provider of such services for subscribers in this state shall contain a conspicuous legend to the effect that the services are not regulated by the department as insurance.

(4)  Any person soliciting, offering, providing, entering into, issuing, or delivering an agreement for services under this section, without being deemed an insurer and without being subject to this code pursuant to subsection (1), shall, as to any such agreement, be subject to the provisions of the Florida Deceptive and Unfair Trade Practices Act, part II of chapter 501.

History.--s. 2, ch. 95-335.

624.13  Particular provisions prevail.--Provisions of this code relative to a particular kind of insurance or a particular type of insurer or to a particular matter shall prevail over provisions relating to insurance in general or insurers in general or to such matter in general.

History.--s. 13, ch. 59-205; s. 3, ch. 76-168; s. 1, ch. 77-457; ss. 2, 3, ch. 81-318; ss. 15, 809(1st), ch. 82-243; ss. 187, 188, ch. 91-108; s. 4, ch. 91-429.

624.15  General penalty.--Each willful violation of this code as to which a greater penalty is not provided by another provision of this code or by other applicable laws of this state is a misdemeanor of the second degree and is, in addition to any prescribed applicable denial, suspension, or revocation of certificate of authority, license, or permit, punishable as provided in s. 775.082 or s. 775.083. Each instance of such violation shall be considered a separate offense.

History.--s. 15, ch. 59-205; s. 641, ch. 71-136; s. 3, ch. 76-168; s. 1, ch. 77-457; ss. 2, 3, ch. 81-318; ss. 8, 15, 809(1st), ch. 82-243; ss. 187, 188, ch. 91-108; s. 153, ch. 91-224; s. 4, ch. 91-429.

624.155  Civil remedy.--

(1)  Any person may bring a civil action against an insurer when such person is damaged:

(a)  By a violation of any of the following provisions by the insurer:

1.  Section 626.9541(1)(i), (o), or (x);

2.  Section 626.9551;

3.  Section 626.9705;

4.  Section 626.9706;

5.  Section 626.9707; or

6.  Section 627.7283.

(b)  By the commission of any of the following acts by the insurer:

1.  Not attempting in good faith to settle claims when, under all the circumstances, it could and should have done so, had it acted fairly and honestly toward its insured and with due regard for her or his interests;

2.  Making claims payments to insureds or beneficiaries not accompanied by a statement setting forth the coverage under which payments are being made; or

3.  Except as to liability coverages, failing to promptly settle claims, when the obligation to settle a claim has become reasonably clear, under one portion of the insurance policy coverage in order to influence settlements under other portions of the insurance policy coverage.

Notwithstanding the provisions of the above to the contrary, a person pursuing a remedy under this section need not prove that such act was committed or performed with such frequency as to indicate a general business practice.

(2)(a)  As a condition precedent to bringing an action under this section, the department and the insurer must have been given 60 days' written notice of the violation. If the department returns a notice for lack of specificity, the 60-day time period shall not begin until a proper notice is filed.

(b)  The notice shall be on a form provided by the department and shall state with specificity the following information, and such other information as the department may require:

1.  The statutory provision, including the specific language of the statute, which the insurer allegedly violated.

2.  The facts and circumstances giving rise to the violation.

3.  The name of any individual involved in the violation.

4.  Reference to specific policy language that is relevant to the violation, if any. If the person bringing the civil action is a third party claimant, she or he shall not be required to reference the specific policy language if the insurer has not provided a copy of the policy to the third party claimant pursuant to written request.

5.  A statement that the notice is given in order to perfect the right to pursue the civil remedy authorized by this section.

(c)  Within 20 days of receipt of the notice, the department may return any notice that does not provide the specific information required by this section, and the department shall indicate the specific deficiencies contained in the notice. A determination by the department to return a notice for lack of specificity shall be exempt from the requirements of chapter 120.

(d)  No action shall lie if, within 60 days after filing notice, the damages are paid or the circumstances giving rise to the violation are corrected.

(e)  The insurer that is the recipient of a notice filed pursuant to this section shall report to the department on the disposition of the alleged violation.

(f)  The applicable statute of limitations for an action under this section shall be tolled for a period of 65 days by the mailing of the notice required by this subsection or the mailing of a subsequent notice required by this subsection.

(3)  Upon adverse adjudication at trial or upon appeal, the insurer shall be liable for damages, together with court costs and reasonable attorney's fees incurred by the plaintiff.

(4)  No punitive damages shall be awarded under this section unless the acts giving rise to the violation occur with such frequency as to indicate a general business practice and these acts are:

(a)  Willful, wanton, and malicious;

(b)  In reckless disregard for the rights of any insured; or

(c)  In reckless disregard for the rights of a beneficiary under a life insurance contract.

Any person who pursues a claim under this subsection shall post in advance the costs of discovery. Such costs shall be awarded to the insurer if no punitive damages are awarded to the plaintiff.

(5)  This section shall not be construed to authorize a class action suit against an insurer or a civil action against the department, its employees, or the Insurance Commissioner, or to create a cause of action when a health insurer refuses to pay a claim for reimbursement on the ground that the charge for a service was unreasonably high or that the service provided was not medically necessary.

(6)  In the absence of expressed language to the contrary, this section shall not be construed to authorize a civil action or create a cause of action against an insurer or its employees who, in good faith, release information about an insured or an insurance policy to a law enforcement agency in furtherance of an investigation of a criminal or fraudulent act relating to a motor vehicle theft or a motor vehicle insurance claim.

(7)  The civil remedy specified in this section does not preempt any other remedy or cause of action provided for pursuant to any other statute or pursuant to the common law of this state. Any person may obtain a judgment under either the common-law remedy of bad faith or this statutory remedy, but shall not be entitled to a judgment under both remedies. This section shall not be construed to create a common-law cause of action. The damages recoverable pursuant to this section shall include those damages which are a reasonably foreseeable result of a specified violation of this section by the insurer and may include an award or judgment in an amount that exceeds the policy limits.

History.--ss. 9, 809(1st), ch. 82-243; s. 78, ch. 83-216; s. 2, ch. 83-288; s. 2, ch. 86-262; s. 1, ch. 87-278; s. 1, ch. 88-166; s. 30, ch. 90-119; ss. 187, 188, ch. 91-108; s. 4, ch. 91-429; s. 176, ch. 97-102.

624.19  Existing forms and filings.--Every form of insurance document and every rate or other filing lawfully in use immediately prior to October 1, 1959, may continue to be so used or be effective until the department otherwise prescribes pursuant to this code.

History.--s. 811, ch. 59-205; ss. 13, 35, ch. 69-106; s. 3, ch. 76-168; s. 1, ch. 77-457; ss. 2, 3, ch. 81-318; ss. 12, 15, 809(1st), ch. 82-243; ss. 187, 188, ch. 91-108; s. 4, ch. 91-429.

624.21  Prospective operation of amendments to code.--Each amendment to this code shall be construed to operate prospectively, unless a contrary legislative intent is specified.

History.--s. 4, ch. 82-386; s. 1, ch. 86-286; ss. 187, 188, ch. 91-108; s. 4, ch. 91-429.

624.215  Proposals for legislation which mandates health benefit coverage; review by Legislature.--

(1)  LEGISLATIVE INTENT.--The Legislature finds that there is an increasing number of proposals which mandate that certain health benefits be provided by insurers and health maintenance organizations as components of individual and group policies. The Legislature further finds that many of these benefits provide beneficial social and health consequences which may be in the public interest. However, the Legislature also recognizes that most mandated benefits contribute to the increasing cost of health insurance premiums. Therefore, it is the intent of the Legislature to conduct a systematic review of current and proposed mandated or mandatorily offered health coverages and to establish guidelines for such a review. This review will assist the Legislature in determining whether mandating a particular coverage is in the public interest.

(2)  MANDATED HEALTH COVERAGE; REPORT TO AGENCY FOR HEALTH CARE ADMINISTRATION AND LEGISLATIVE COMMITTEES; GUIDELINES FOR ASSESSING IMPACT.--Every person or organization seeking consideration of a legislative proposal which would mandate a health coverage or the offering of a health coverage by an insurance carrier, health care service contractor, or health maintenance organization as a component of individual or group policies, shall submit to the Agency for Health Care Administration and the legislative committees having jurisdiction a report which assesses the social and financial impacts of the proposed coverage. Guidelines for assessing the impact of a proposed mandated or mandatorily offered health coverage, to the extent that information is available, shall include:

(a)  To what extent is the treatment or service generally used by a significant portion of the population.

(b)  To what extent is the insurance coverage generally available.

(c)  If the insurance coverage is not generally available, to what extent does the lack of coverage result in persons avoiding necessary health care treatment.

(d)  If the coverage is not generally available, to what extent does the lack of coverage result in unreasonable financial hardship.

(e)  The level of public demand for the treatment or service.

(f)  The level of public demand for insurance coverage of the treatment or service.

(g)  The level of interest of collective bargaining agents in negotiating for the inclusion of this coverage in group contracts.

(h)  To what extent will the coverage increase or decrease the cost of the treatment or service.

(i)  To what extent will the coverage increase the appropriate uses of the treatment or service.

(j)  To what extent will the mandated treatment or service be a substitute for a more expensive treatment or service.

(k)  To what extent will the coverage increase or decrease the administrative expenses of insurance companies and the premium and administrative expenses of policyholders.

(l)  The impact of this coverage on the total cost of health care.

History.--ss. 1, 2, ch. 87-188; s. 188, ch. 91-108; s. 4, ch. 91-429; s. 31, ch. 92-33.

624.302  Offices.

624.303  Seal; certified copies as evidence.

624.305  Prohibited interests, rewards.

624.307  General powers; duties.

624.308  Rules.

624.310  Enforcement; cease and desist orders; removal of certain persons; fines.

624.3101  False or misleading financial statements or supporting documents; penalty.

624.3102  Immunity from civil liability for providing department with information about condition of insurer.

624.311  Records; reproductions; destruction.

624.312  Reproductions and certified copies of records as evidence.

624.313  Publications.

624.314  Publications; Insurance Commissioner's Regulatory Trust Fund.

624.315  Department; annual report.

624.316  Examination of insurers.

624.3161  Market conduct examinations.

624.317  Investigation of agents, adjusters, administrators, service companies, and others.

624.318  Conduct of examination or investigation; access to records; correction of accounts; appraisals.

624.319  Examination and investigation reports.

624.320  Examination expenses.

624.321  Witnesses and evidence.

624.322  Testimony compelled; immunity from prosecution.

624.324  Hearings.

624.33  Jurisdiction regarding health or life coverage.

624.34  Authority of Department of Law Enforcement to accept fingerprints of, and exchange criminal history records with respect to, certain persons.

624.302  Offices.--The department shall establish and maintain offices at the State Capitol in Tallahassee, and in such other places throughout the state as it may from time to time designate.

History.--s. 17, ch. 59-205; ss. 13, 35, ch. 69-106; s. 3, ch. 76-168; s. 1, ch. 77-457; ss. 2, 3, ch. 81-318; ss. 37, 809(1st), ch. 82-243; ss. 187, 188, ch. 91-108; s. 4, ch. 91-429.

624.303  Seal; certified copies as evidence.--

(1)  The department shall have an official seal by which its proceedings are authenticated.

(2)  All certificates executed by the department, other than licenses of agents, solicitors, or adjusters or similar licenses or permits, shall bear its seal.

(3)  Any written instrument purporting to be a copy of any action, proceeding, or finding of fact by the department or any record of the department or copy of any document on file in its office when authenticated under hand of the commissioner by the seal shall be accepted by all the courts of this state as prima facie evidence of its contents.

History.--s. 18, ch. 59-205; ss. 13, 35, ch. 69-106; s. 3, ch. 76-168; s. 1, ch. 77-457; ss. 2, 3, ch. 81-318; ss. 16, 37, 809(1st), ch. 82-243; ss. 187, 188, ch. 91-108; s. 4, ch. 91-429.

624.305  Prohibited interests, rewards.--

(1)  No employee of the department, including the Insurance Commissioner and Treasurer shall:

(a)  Be financially interested, directly or indirectly, in any insurer or insurance agency authorized to transact insurance in this state, or in any insurance transaction except as a policyholder or claimant under a policy; or

(b)  Be given or receive any fee, compensation, loan, gift, or other thing of value in addition to the compensation and expense allowance provided by law, for any service rendered or to be rendered in her or his capacity as a department employee.

(2)  This section shall not be deemed to prohibit an insurer from making, in the regular course of business, a loan to any employee of the department, if such loan is adequately secured by a mortgage upon real estate or other collateral and qualifies as an eligible investment of the insurer under part II of chapter 625.

(3)  When there is no conflict of interest, the department may employ or retain from time to time an insurance actuary, accountant, or other professional person who is independently practicing her or his profession even though such person is similarly employed or retained by insurers or others.

History.--s. 20, ch. 59-205; ss. 13, 35, ch. 69-106; s. 3, ch. 76-168; s. 1, ch. 77-457; ss. 2, 3, ch. 81-318; ss. 18, 37, 809(1st), ch. 82-243; ss. 187, 188, ch. 91-108; s. 4, ch. 91-429; s. 177, ch. 97-102.

624.307  General powers; duties.--

(1)  The department shall enforce the provisions of this code and shall execute the duties imposed upon it by this code.

(2)  The department shall have the powers and authority expressly conferred upon it by, or reasonably implied from, the provisions of this code.

(3)  The department may conduct such investigations of insurance matters, in addition to investigations expressly authorized, as it may deem proper to determine whether any person has violated any provision of this code or to secure information useful in the lawful administration of any such provision. The cost of such investigations shall be borne by the state.

(4)  The department may collect, propose, publish, and disseminate information relating to the subject matter of any duties imposed upon it by law.

(5)  The department shall have such additional powers and duties as may be provided by other laws of this state.

(6)  The department may employ actuaries who shall be at-will employees and who shall serve at the pleasure of the Insurance Commissioner. Actuaries employed pursuant to this paragraph shall be members of the Society of Actuaries or the Casualty Actuarial Society and shall be exempt from the Career Service System established under chapter 110. The salaries of the actuaries employed pursuant to this paragraph by the department shall be set in accordance with s. 216.251(2)(a)5. and shall be set at levels which are commensurate with salary levels paid to actuaries by the insurance industry.

(7)  The department shall, within existing resources, develop and implement an outreach program for the purpose of encouraging the entry of additional insurers into the Florida market.

History.--s. 22, ch. 59-205; ss. 13, 35, ch. 69-106; s. 3, ch. 76-168; s. 1, ch. 77-457; ss. 2, 3, ch. 81-318; ss. 20, 37, 809(1st), ch. 82-243; s. 5, ch. 86-160; ss. 187, 188, ch. 91-108; s. 4, ch. 91-429; s. 1, ch. 93-410.

624.308  Rules.--

(1)  The department has authority to adopt rules pursuant to ss. 120.536(1) and 120.54 to implement provisions of law conferring duties upon it.

(2)  In addition to any other penalty provided, willful violation of any such rule shall subject the violator to such suspension or revocation of certificate of authority or license as may be applicable under this code as for violation of the provision as to which such rule relates.

History.--s. 23, ch. 59-205; ss. 10, 13, 35, ch. 69-106; s. 3, ch. 76-168; s. 1, ch. 77-457; s. 21, ch. 78-95; ss. 2, 3, ch. 81-318; ss. 21, 37, 809(1st), 811, ch. 82-243; ss. 185, 187, 188, ch. 91-108; s. 4, ch. 91-429; s. 201, ch. 98-200.

624.310  Enforcement; cease and desist orders; removal of certain persons; fines.--

(1)  DEFINITIONS.--For the purposes of this section, the term:

(a)  "Affiliated party" means any person who directs or participates in the conduct of the affairs of a licensee and who is:

1.  A director, officer, employee, trustee, committee member, or controlling stockholder of a licensee or a subsidiary or service corporation of the licensee, other than a controlling stockholder which is a holding company, or an agent of a licensee or a subsidiary or service corporation of the licensee;

2.  A person who has filed or is required to file a statement or any other information required to be filed under s. 628.461 or s. 628.4615;

3.  A stockholder, other than a stockholder that is a holding company of the licensee, who participates in the conduct of the affairs of the licensee; or

4.  An independent contractor who:

a.  Renders a written opinion required by the laws of this state under her or his professional credentials on behalf of the licensee, which opinion is reasonably relied on by the department in the performance of its duties; or

b.  Affirmatively and knowingly conceals facts, through a written misrepresentation to the department, with knowledge that such misrepresentation:

(I)  Constitutes a violation of the insurance code or a lawful rule or order of the department; and

(II)  Directly and materially endangers the ability of the licensee to meet its obligations to policyholders.

For the purposes of this subparagraph, any representation of fact made by an independent contractor on behalf of a licensee, affirmatively communicated as a representation of the licensee to the independent contractor, shall not be considered a misrepresentation by the independent contractor to the department.

(b)  "Licensee" means a person issued a license or certificate of authority or approval under this code or a person registered under a provision of this code.

(2)  ENFORCEMENT GENERALLY.--The department may institute such suits or other legal proceedings as may be required to enforce any provision of this code. If it appears that any person has violated any provision of this code for which criminal prosecution is provided, the department shall provide the appropriate state attorney or other prosecuting agency having jurisdiction with respect to such prosecution with the relevant information in its possession.

(3)  CEASE AND DESIST ORDERS.--

(a)  The department may issue and serve a complaint stating charges upon any licensee or upon any affiliated party, whenever the department has reasonable cause to believe that the person or individual named therein is engaging in or has engaged in conduct that is:

1.  An act that demonstrates a lack of fitness or trustworthiness to engage in the business of insurance, is hazardous to the insurance buying public, or constitutes business operations that are a detriment to policyholders, stockholders, investors, creditors, or the public;

2.  A violation of any provision of the Florida Insurance Code;

3.  A violation of any rule of the department;

4.  A violation of any order of the department; or

5.  A breach of any written agreement with the department.

(b)  The complaint shall contain a statement of facts and notice of opportunity for a hearing pursuant to ss. 120.569 and 120.57.

(c)  If no hearing is requested within the time allowed by ss. 120.569 and 120.57, or if a hearing is held and the department finds that any of the charges are proven, the department may enter an order directing the licensee or the affiliated party named in the complaint to cease and desist from engaging in the conduct complained of and take corrective action to remedy the effects of past improper conduct and assure future compliance.

(d)  If the licensee or affiliated party named in the order fails to respond to the complaint within the time allotted by ss. 120.569 and 120.57, the failure constitutes a default and justifies the entry of a cease and desist order.

(e)  A contested or default cease and desist order is effective when reduced to writing and served upon the licensee or affiliated party named therein. An uncontested cease and desist order is effective as agreed.

(f)  Whenever the department finds that conduct described in paragraph (a) is likely to cause insolvency, substantial dissipation or misvaluation of assets or earnings of the licensee, substantial inability to pay claims on a timely basis, or substantial prejudice to prospective or existing insureds, policyholders, subscribers, or the public, it may issue an emergency cease and desist order requiring the licensee or any affiliated party to immediately cease and desist from engaging in the conduct complained of and to take corrective and remedial action. The emergency order is effective immediately upon service of a copy of the order upon the licensee or affiliated party named therein and remains effective for 90 days. If the department begins nonemergency cease and desist proceedings under this subsection, the emergency order remains effective until the conclusion of the proceedings under ss. 120.569 and 120.57. Any emergency order entered under this subsection is exempt from s. 119.07(1) and is confidential until it is made permanent unless the department finds that the confidentiality will result in substantial risk of financial loss to the public. All emergency cease and desist orders that are not made permanent are available for public inspection 1 year from the date the emergency cease and desist order expires; however, portions of an emergency cease and desist order remain confidential and exempt from the provisions of s. 119.07(1) if disclosure would:

1.  Jeopardize the integrity of another active investigation;

2.  Impair the safety and financial soundness of the licensee or affiliated party;

3.  Reveal personal financial information;

4.  Reveal the identity of a confidential source;

5.  Defame or cause unwarranted damage to the good name or reputation of an individual or jeopardize the safety of an individual; or

6.  Reveal investigative techniques or procedures.

(4)  REMOVAL OF AFFILIATED PARTIES BY THE DEPARTMENT.--

(a)  The department may issue and serve a complaint stating charges upon any affiliated party and upon the licensee involved, whenever the department has reason to believe that an affiliated party is engaging in or has engaged in conduct that constitutes:

1.  An act that demonstrates a lack of fitness or trustworthiness to engage in the business of insurance through engaging in illegal activity or mismanagement of business activities;

2.  A willful violation of any law relating to the business of insurance; however, if the violation constitutes a misdemeanor, no complaint shall be served as provided in this section until the affiliated party is notified in writing of the matter of the violation and has been afforded a reasonable period of time, as set forth in the notice, to correct the violation and has failed to do so;

3.  A violation of any other law involving fraud or moral turpitude that constitutes a felony;

4.  A willful violation of any rule of the department;

5.  A willful violation of any order of the department;

6.  A material misrepresentation of fact, made knowingly and willfully or made with reckless disregard for the truth of the matter; or

7.  An act of commission or omission or a practice which is a breach of trust or a breach of fiduciary duty.

(b)  The complaint shall contain a statement of facts and notice of opportunity for a hearing pursuant to ss. 120.569 and 120.57.

(c)  If no hearing is requested within the time allotted by ss. 120.569 and 120.57, or if a hearing is held and the department finds that any of the charges in the complaint are proven true and that:

1.  The licensee has suffered or will likely suffer loss or other damage;

2.  The interests of the policyholders, creditors, or public are, or could be, seriously prejudiced by reason of the violation or act or breach of fiduciary duty;

3.  The affiliated party has received financial gain by reason of the violation, act, or breach of fiduciary duty; or

4.  The violation, act, or breach of fiduciary duty is one involving personal dishonesty on the part of the affiliated party or the conduct jeopardizes or could reasonably be anticipated to jeopardize the financial soundness of the licensee,

The department may enter an order removing the affiliated party or restricting or prohibiting participation by the person in the affairs of that particular licensee or of any other licensee.

(d)  If the affiliated party fails to respond to the complaint within the time allotted by ss. 120.569 and 120.57, the failure constitutes a default and justifies the entry of an order of removal, suspension, or restriction.

(e)  A contested or default order of removal, restriction, or prohibition is effective when reduced to writing and served on the licensee and the affiliated party. An uncontested order of removal, restriction, or prohibition is effective as agreed.

(f)1.  The chief executive officer, or the person holding the equivalent office, of a licensee shall promptly notify the department if she or he has actual knowledge that any affiliated party is charged with a felony in a state or federal court.

2.  Whenever any affiliated party is charged with a felony in a state or federal court or with the equivalent of a felony in the courts of any foreign country with which the United States maintains diplomatic relations, and the charge alleges violation of any law involving fraud, theft, or moral turpitude, the department may enter an emergency order suspending the affiliated party or restricting or prohibiting participation by the affiliated party in the affairs of the particular licensee or of any other licensee upon service of the order upon the licensee and the affiliated party charged. The order shall contain notice of opportunity for a hearing pursuant to ss. 120.569 and 120.57, where the affiliated party may request a postsuspension hearing to show that continued service to or participation in the affairs of the licensee does not pose a threat to the interests of the licensee's policyholders or creditors and does not threaten to impair public confidence in the licensee. In accordance with applicable departmental rules, the department shall notify the affiliated party whether the order suspending or prohibiting the person from participation in the affairs of a licensee will be rescinded or otherwise modified. The emergency order remains in effect, unless otherwise modified by the department, until the criminal charge is disposed of. The acquittal of the person charged, or the final, unappealed dismissal of all charges against the person, dissolves the emergency order, but does not prohibit the department from instituting proceedings under paragraph (a). If the person charged is convicted or pleads guilty or nolo contendere, whether or not an adjudication of guilt is entered by the court, the emergency order shall become final.

(g)  Any affiliated party removed from office pursuant to this section is not eligible for reelection or appointment to the position or to any other official position in any licensee in this state except upon the written consent of the department. Any affiliated party who is removed, restricted, or prohibited from participation in the affairs of a licensee pursuant to this section may petition the department for modification or termination of the removal, restriction, or prohibition.

(h)  Resignation or termination of an affiliated party does not affect the department's jurisdiction to proceed under this subsection.

(5)  ADMINISTRATIVE FINES; ENFORCEMENT.--

(a)  The department may, in a proceeding initiated pursuant to chapter 120, impose an administrative fine against any person found in the proceeding to have violated any provision of this code, a cease and desist order of the department, or any written agreement with the department. No proceeding shall be initiated and no fine shall accrue until after the person has been notified in writing of the nature of the violation and has been afforded a reasonable period of time, as set forth in the notice, to correct the violation and has failed to do so.

(b)  A fine imposed under this subsection may not exceed the amounts specified in s. 624.4211, per violation.

(c)  The department may, in addition to the imposition of an administrative fine under this subsection, also suspend or revoke the license or certificate of authority of the licensee fined under this subsection.

(d)  Any administrative fine levied by the department under this subsection may be enforced by the department by appropriate proceedings in the circuit court of the county in which the person resides or in which the principal office of a licensee is located, or, in the case of a foreign insurer or person not residing in this state, in Leon County. In any administrative or judicial proceeding arising under this section, a party may elect to correct the violation asserted by the department, and, upon doing so, any fine shall cease to accrue; however, the election to correct the violation does not render any administrative or judicial proceeding moot. All fines collected under this section shall be paid to the Insurance Commissioner's Regulatory Trust Fund.

(e)  In imposing any administrative penalty or remedy provided for under this section, the department shall take into account the appropriateness of the penalty with respect to the size of the financial resources and the good faith of the person charged, the gravity of the violation, the history of previous violations, and other matters as justice may require.

(f)  The imposition of an administrative fine under this subsection may be in addition to any other penalty or administrative fine authorized under this code.

(6)  ADMINISTRATIVE PROCEDURES.--All administrative proceedings under subsections (3), (4), and (5) shall be conducted in accordance with chapter 120. Any service required or authorized to be made by the department under this code shall be made by certified mail, return receipt requested, delivered to the addressee only; by personal delivery; or in accordance with chapter 48. The service provided for herein shall be effective from the date of delivery.

(7)  OTHER LAWS NOT SUPERSEDED.--The provisions of this section are in addition to other provisions of this code, and shall not be construed to curtail, impede, replace, or delete any other similar provision or power of the department under the insurance code as defined in s. 624.01 or any power of the department which may exist under the common law of this state. The procedures set forth in s. 626.9581 do not apply to regulatory action taken pursuant to the provisions of this section.

History.--s. 25, ch. 59-205; ss. 13, 35, ch. 69-106; s. 26, ch. 73-334; s. 3, ch. 76-168; s. 1, ch. 77-457; ss. 2, 3, ch. 81-318; ss. 22, 37, 809(1st), ch. 82-243; ss. 5, 187, 188, ch. 91-108; s. 4, ch. 91-429; s. 1, ch. 93-78; s. 9, ch. 95-211; s. 363, ch. 96-406; s. 267, ch. 96-410; s. 1719, ch. 97-102.

624.3101  False or misleading financial statements or supporting documents; penalty.--Any person who willfully files with the department, or who willfully signs for filing with the department, a materially false or materially misleading financial statement or document in support thereof required by law or rule, with intent to deceive and with knowledge that the statement or document is materially false or materially misleading, commits a felony of the third degree, punishable as provided in s. 775.082, s. 775.083, or s. 775.084.

History.--s. 2, ch. 93-410.

624.3102  Immunity from civil liability for providing department with information about condition of insurer.--A person, other than a person filing a required report or other required information, who provides the department with information about the financial condition of an insurer is immune from civil liability arising out of the provision of the information unless the person acted with knowledge that the information was false or with reckless disregard for the truth or falsity of the information.

History.--s. 3, ch. 93-410.

624.311  Records; reproductions; destruction.--

(1)  Except as provided in this section, the department shall preserve in permanent form records of its proceedings, hearings, investigations, and examinations and shall file such records in its office.

(2)  The records of insurance claim negotiations of any state agency or political subdivision are confidential and exempt from s. 119.07(1) until termination of all litigation and settlement of all claims arising out of the same incident.

(3)  The department may photograph, microphotograph, or reproduce on film, whereby each page will be reproduced in exact conformity with the original, all financial records, financial statements of domestic insurers, reports of business transacted in this state by foreign insurers and alien insurers, reports of examination of domestic insurers, and such other records and documents on file in its office as it may in its discretion select.

(4)  To facilitate the efficient use of floor space and filing equipment in its offices, the department may destroy the following records and documents pursuant to chapter 257:

(a)  General closed correspondence files over 3 years old;

(b)  Agent, solicitor, adjuster, and similar license files, including license files of the Division of State Fire Marshal, over 2 years old; except that the department shall preserve by reproduction or otherwise a copy of the original records upon the basis of which each such licensee qualified for her or his initial license, except a competency examination, and of any disciplinary proceeding affecting the licensee;

(c)  All agent, solicitor, adjuster, and similar license files and records, including original license qualification records and records of disciplinary proceedings 5 years after a licensee has ceased to be qualified for a license;

(d)  Insurer certificate of authority files over 2 years old, except that the department shall preserve by reproduction or otherwise a copy of the initial certificate of authority of each insurer;

(e)  All documents and records which have been photographed or otherwise reproduced as provided in subsection (3), if such reproductions have been filed and an audit of the department has been completed for the period embracing the dates of such documents and records; and

(f)  All other records, documents, and files not expressly provided for in paragraphs (a) through (e).

History.--s. 26, ch. 59-205; ss. 13, 35, ch. 69-106; s. 3, ch. 76-168; s. 1, ch. 77-457; s. 1, ch. 79-52; ss. 2, 3, ch. 81-318; ss. 23, 37, 809(1st), ch. 82-243; s. 41, ch. 83-215; ss. 187, 188, ch. 91-108; s. 4, ch. 91-429; s. 2, ch. 93-78; s. 10, ch. 95-211; s. 364, ch. 96-406; s. 1720, ch. 97-102.

624.312  Reproductions and certified copies of records as evidence.--

(1)  Photographs or microphotographs in the form of film or prints of documents and records made under s. 624.311(3), or made under former s. 624.311(3) before October 1, 1982, shall have the same force and effect as the originals thereof and shall be treated as originals for the purpose of their admissibility in evidence. Duly certified or authenticated reproductions of such photographs or microphotographs shall be as admissible in evidence as the originals.

(2)  Upon the request of any person and payment of the applicable fee, the department shall give a certified copy of any record in its office which is then subject to public inspection.

(3)  Copies of original records or documents in its office certified by the department shall be received in evidence in all courts as if they were originals.

History.--s. 27, ch. 59-205; ss. 13, 35, ch. 69-106; s. 3, ch. 76-168; s. 1, ch. 77-457; ss. 2, 3, ch. 81-318; ss. 37, 809(1st), ch. 82-243; s. 42, ch. 83-215; ss. 187, 188, ch. 91-108; s. 4, ch. 91-429; s. 3, ch. 93-78.

624.313  Publications.--

(1)  As early as reasonably possible, the department shall annually have printed and made available a statistical report which must include all of the following information on either a calendar year or fiscal year basis:

(a)  A summary of all information reported to the department under s. 627.915(1).

(b)  The total amount of premiums written and earned by line of insurance.

(c)  The total amount of losses paid and losses incurred by line of insurance.

(d)  The ratio of premiums written to losses paid by line of insurance.

(e)  The ratio of premiums earned to losses incurred by line of insurance.

(f)  The market share of the 10 largest insurers or insurer groups by line of insurance and of each insurer or insurer group that has a market share of at least 1 percent of a line of insurance in this state.

(g)  The profitability of each major line of insurance.

(h)  An analysis of the impact of the insurance industry on the economy of the state.

(i)  A complaint ratio by line of insurance for the insurers referred to in paragraph (f). The department shall determine the most appropriate ratio or ratios for quantifying complaints.

(j)  An analysis of such lines or kinds of insurance for which the department determines that an availability problem exists in this state.

(k)  A summary of the findings of market examinations performed by the department under s. 624.3161 during the preceding year.

(l)  Such other information as the department deems relevant.

(2)  The department may prepare and have printed and published in pamphlet or book form the following:

(a)  As needed, questions and answers for the use of persons applying for an examination for licensing as agents or solicitors for property, casualty, surety, health, and miscellaneous insurers.

(b)  As needed, questions and answers for the use of persons applying for an examination for licensing as agents for life and health insurers.

(c)  As needed, questions and answers for the use of persons applying for an examination for licensing as adjusters.

(3)  The department shall sell the publications mentioned in subsections (1) and (2) to purchasers at a price fixed by it at not less than the cost of printing and binding such publications, plus packaging and postage costs for mailing; except that the department may deliver copies of such publications free of cost to state agencies and officers; insurance supervisory authorities of other states and jurisdictions; institutions of higher learning located in Florida; the Library of Congress; insurance officers of Naval, Military, and Air Force bases located in Florida; and to persons serving as advisers to the department in preparation of the publications.

(4)  The department may contract with outside vendors, in accordance with chapter 287, to compile data in an electronic data processing format that is compatible with the systems of the department.

History.--s. 28, ch. 59-205; ss. 13, 35, ch. 69-106; s. 1, ch. 73-305; s. 3, ch. 76-168; s. 1, ch. 77-457; ss. 2, 3, ch. 81-318; ss. 24, 37, 809(1st), ch. 82-243; ss. 6, 187, 188, ch. 91-108; s. 4, ch. 91-429.

624.314  Publications; Insurance Commissioner's Regulatory Trust Fund.--The department shall deposit all moneys received from the sale of publications under s. 624.313 in the Insurance Commissioner's Regulatory Trust Fund for the purpose of paying costs for the preparation, printing, and delivery to the department of the publications mentioned in s. 624.313(2), packaging and mailing costs, and banking, accounting, and incidental expenses connected with the sale and delivery of such publications by the department. All moneys so deposited and all funds hereafter transferred to the Insurance Commissioner's Regulatory Trust Fund are appropriated for the uses and purposes above mentioned.

History.--s. 29, ch. 59-205; s. 2, ch. 61-119; ss. 13, 35, ch. 69-106; s. 1, ch. 74-298; s. 3, ch. 76-168; s. 1, ch. 77-457; ss. 2, 3, ch. 81-318; ss. 37, 809(1st), ch. 82-243; ss. 187, 188, ch. 91-108; s. 4, ch. 91-429.

624.315  Department; annual report.--

(1)  As early as reasonably possible, the department shall annually prepare a report to the Speaker and Minority Leader of the House of Representatives, the President and Minority Leader of the Senate, the chairs of the legislative committees with jurisdiction over matters of insurance, and the Governor showing, with respect to the preceding calendar year:

(a)  Names of the authorized insurers transacting insurance in this state, with abstracts of their financial statements including assets, liabilities, and net worth.

(b)  Names of insurers whose business was closed during the year, the cause thereof, and amounts of assets and liabilities as ascertainable.

(c)  Names of insurers against which delinquency or similar proceedings were instituted, and a concise statement of the circumstances and results of each such proceeding.

(d)  The receipts and estimated expenses of the department for the year.

(e)  Such other pertinent information and matters as the department deems to be in the public interest.

(f)  Annually after each regular session of the Legislature, a compilation of the laws of this state relating to insurance. Any such publication may be printed, revised, or reprinted upon the basis of the original low bid.

(g)  An analysis and summary report of the state of the insurance industry in this state evaluated as of the end of the most recent calendar year.

(2)  The department shall maintain the following information and make such information available upon request:

(a)  Calendar year profitability, including investment income from policyholders' unearned premium and loss reserves (Florida and countrywide).

(b)  Aggregate Florida loss reserves.

(c)  Premiums written (Florida and countrywide).

(d)  Premiums earned (Florida and countrywide).

(e)  Incurred losses (Florida and countrywide).

(f)  Paid losses (Florida and countrywide).

(g)  Allocated Florida loss adjustment expenses.

(h)  Renewal ratio (countrywide).

(i)  Variation of premiums charged by the industry as compared to rates promulgated by the Insurance Services Office (Florida and countrywide).

(j)  An analysis of policy size limits (Florida and countrywide).

(k)  Insureds' selection of claims-made versus occurrence coverage (Florida and countrywide).

(l)  A subreport on the involuntary market in Florida encompassing such joint underwriting plans and assigned risk plans operating in the state.

(m)  A subreport providing information relevant to emerging markets and alternate marketing mechanisms, such as self-insured trusts, risk retention groups, purchasing groups, and the excess-surplus lines market.

(n)  Trends; emerging trends as exemplified by the percentage change in frequency and severity of both paid and incurred claims, and pure premium (Florida and countrywide).

(o)  Fast track loss ratios as defined and assimilated by the Insurance Services Office (Florida and countrywide).

(3)  The department may contract with outside vendors, in accordance with chapter 287, to compile data in an electronic data processing format that is compatible with the systems of the department.

History.--s. 30, ch. 59-205; ss. 13, 35, ch. 69-106; s. 3, ch. 76-168; s. 1, ch. 77-457; s. 13, ch. 77-468; ss. 2, 3, ch. 81-318; ss. 25, 37, 809(1st), ch. 82-243; s. 5, ch. 82-386; s. 1, ch. 88-390; s. 1, ch. 90-119; ss. 7, 187, 188, ch. 91-108; s. 4, ch. 91-429; s. 178, ch. 97-102.

624.316  Examination of insurers.--

(1)(a)  The department shall examine the affairs, transactions, accounts, records, and assets of each authorized insurer and of the attorney in fact of a reciprocal insurer as to its transactions affecting the insurer as often as it deems advisable, except as provided in this section. The examination may include examination of the affairs, transactions, accounts, and records relating directly or indirectly to the insurer and of the assets of the insurer's managing general agents and controlling or controlled person, as defined in s. 625.012. The examination shall be pursuant to a written order of the department. Such order shall expire upon receipt by the department of the written report of the examination.

(b)  As a part of its examination procedure, the department shall examine each insurer regarding all of the information required by s. 627.915.

(c)  The department shall examine each insurer according to accounting procedures designed to fulfill the requirements of generally accepted insurance accounting principles and practices and good internal control and in keeping with generally accepted accounting forms, accounts, records, methods, and practices relating to insurers. To facilitate uniformity in examinations, the department may adopt, by rule, the Market and Financial Conduct Examination Handbook of the National Association of Insurance Commissioners, 1990, and may adopt subsequent amendments thereto, if the examination methodology remains substantially consistent.

(2)(a)  Except as provided in paragraph (f), the department may examine each insurer as often as may be warranted for the protection of the policyholders and in the public interest, and shall examine each domestic insurer not less frequently than once every 3 years. The examination shall cover the preceding 3 fiscal years of the insurer and shall be commenced within 12 months after the end of the most recent fiscal year being covered by the examination. The examination may cover any period of the insurer's operations since the last previous examination. The examination may include examination of events subsequent to the end of the most recent fiscal year and the events of any prior period that affect the present financial condition of the insurer. In lieu of making its own examination, the department may accept an independent certified public accountant's audit report prepared on a statutory basis consistent with the Florida Insurance Code on that specific company. The department may not accept the report in lieu of the requirement imposed by paragraph (1)(b). When an examination is conducted by the department for the sole purpose of examining the 3 preceding fiscal years of the insurer within 12 months after the opinion date of an independent certified public accountant's audit report prepared on a statutory basis on that specific company consistent with the Florida Insurance Code, the cost of the examination as charged to the insurer pursuant to s. 624.320 shall be reduced by the cost to the insurer of the independent certified public accountant's audit reports. Requests for the reduction in cost of examination must be submitted to the department in writing no later than 90 days after the conclusion of the examination and shall include sufficient documentation to support the charges incurred for the statutory audit performed by the independent certified public accountant.

(b)  The department shall examine each insurer applying for an initial certificate of authority to transact insurance in this state before granting the initial certificate.

(c)  In lieu of making its own examination, the department may accept a full report of the last recent examination of a foreign insurer, certified to by the insurance supervisory official of another state.

(d)  The examination by the department of an alien insurer shall be limited to the alien insurer's insurance transactions and affairs in the United States, except as otherwise required by the department.

(e)  The department shall adopt rules providing that, upon agreement between the department and the insurer, an examination under this section may be conducted by independent certified public accountants, actuaries meeting criteria specified by rule, and reinsurance specialists meeting criteria specified by rule. The rules shall provide:

1.  That the agreement of the insurer is not required if the department reasonably suspects criminal misconduct on the part of the insurer.

2.  That the department shall provide the insurer with a list of three firms acceptable to the department, and that the insurer shall select the firm to conduct the examination from the list provided by the department.

3.  That the insurer being examined must make payment for the examination directly to the firm performing the examination in accordance with the rates and terms agreed to by the department, the insurer, and the firm performing the examination.

4.  That if the examination is conducted without the consent of the insurer, the insurer must pay all reasonable charges of the examining firm if the examination finds impairment, insolvency, or criminal misconduct on the part of the insurer.

(f)1.a.  An examination under this section must be conducted at least once every year with respect to a domestic insurer that has continuously held a certificate of authority for less than 3 years. The examination must cover the preceding fiscal year or the period since the last examination of the insurer. The department may limit the scope of the examination.

b.  The department may not accept an independent certified public accountant's audit report in lieu of an examination required by this subparagraph.

c.  An insurer may not be required to pay more than $25,000 to cover the costs of any one examination under this subparagraph.

2.  An examination under this section must be conducted not less frequently than once every 5 years with respect to an insurer that has continuously held a certificate of authority, without a change in ownership subject to s. 624.4245 or s. 628.461, for more than 15 years. The examination must cover the preceding 5 fiscal years of the insurer or the period since the last examination of the insurer. This subparagraph does not limit the ability of the department to conduct more frequent examinations.

History.--s. 31, ch. 59-205; ss. 12, 13, 35, ch. 69-106; s. 1, ch. 70-324; s. 3, ch. 76-168; s. 1, ch. 77-457; s. 14, ch. 77-468; ss. 2, 3, ch. 81-318; ss. 26, 37, 809(1st), ch. 82-243; s. 1, ch. 85-245; s. 20, ch. 90-119; s. 1, ch. 90-248; ss. 8, 187, 188, ch. 91-108; s. 4, ch. 91-429; s. 4, ch. 93-410; s. 87, ch. 98-199.

624.3161  Market conduct examinations.--

(1)  As often as it deems necessary, the department shall examine each licensed rating organization, each advisory organization, each group, association, or other organization of insurers which engages in joint underwriting or joint reinsurance, and each authorized insurer transacting in this state any class of insurance to which the provisions of chapter 627 are applicable. The examination shall be for the purpose of ascertaining compliance by the person examined with the applicable provisions of chapters 624, 626, 627, and 635.

(2)  In lieu of any such examination, the department may accept the report of a similar examination made by the insurance supervisory official of another state.

(3)  The examination may be conducted by an independent professional examiner under contract to the department, in which case payment shall be made directly to the contracted examiner by the insurer examined in accordance with the rates and terms agreed to by the department and the examiner.

(4)  The reasonable cost of the examination shall be paid by the person examined, and such person shall be subject, as though an insurer, to the provisions of s. 624.320.

(5)  Such examinations shall also be subject to the applicable provisions of ss. 624.318, 624.319, 624.321, and 624.322.

History.--s. 442, ch. 59-205; s. 18, ch. 67-9; ss. 13, 35, ch. 69-106; s. 3, ch. 76-168; s. 1, ch. 77-457; s. 27, ch. 77-468; ss. 2, 3, ch. 81-318; ss. 349, 357, 809(2nd), ch. 82-243; ss. 49, 79, ch. 82-386; s. 17, ch. 85-245; ss. 9, 188, ch. 91-108; s. 4, ch. 91-429; s. 114, ch. 92-318; s. 5, ch. 97-292.

Note.--Former s. 627.321.

624.317  Investigation of agents, adjusters, administrators, service companies, and others.--If it has reason to believe that any person has violated or is violating any provision of this code, or upon the written complaint signed by any interested person indicating that any such violation may exist, the department shall conduct such investigation as it deems necessary of the accounts, records, documents, and transactions pertaining to or affecting the insurance affairs of any:

(1)  General agent, surplus line agent, adjuster, administrator, service company, or other person.

(2)  Insurance agent, customer representative, or solicitor, subject to the requirements of s. 626.601.

(3)  Person having a contract or power of attorney under which she or he enjoys in fact the exclusive or dominant right to manage or control an insurer.

(4)  Person engaged in or proposing to be engaged in the promotion or formation of:

(a)  A domestic insurer;

(b)  An insurance holding corporation; or

(c)  A corporation to finance a domestic insurer or in the production of the domestic insurer's business.

History.--s. 32, ch. 59-205; ss. 13, 35, ch. 69-106; s. 1, ch. 70-55; s. 3, ch. 76-168; s. 1, ch. 77-457; ss. 2, 3, ch. 81-318; ss. 27, 37, 809(1st), ch. 82-243; s. 1, ch. 83-203; ss. 10, 187, 188, ch. 91-108; s. 4, ch. 91-429; s. 179, ch. 97-102.

624.318  Conduct of examination or investigation; access to records; correction of accounts; appraisals.--

(1)  The examination or investigation may be conducted by the accredited examiners or investigators of the department at the offices wherever located of the person being examined or investigated and at such other places as may be required for determination of matters under examination or investigation. In the case of alien insurers, the examination may be so conducted in the insurer's offices and places in the United States, except as otherwise required by the department.

(2)  Every person being examined or investigated, and its officers, attorneys, employees, agents, and representatives, shall make freely available to the department or its examiners or investigators the accounts, records, documents, files, information, assets, and matters in their possession or control relating to the subject of the examination or investigation.

(3)  If the department finds any accounts or records to be inadequate, or inadequately kept or posted, it may employ experts to reconstruct, rewrite, post, or balance them at the expense of the person being examined if such person has failed to maintain, complete, or correct such records or accounting after the department has given her or him notice and a reasonable opportunity to do so.

(4)  If the department deems it necessary to value any asset involved in such an examination of an insurer, it may make written request of the insurer to designate one or more competent appraisers acceptable to the department, who shall promptly make an appraisal of the asset and furnish a copy thereof to the department. If the insurer fails to designate such an appraiser or appraisers within 20 days after the request of the department, the department may designate the appraiser or appraisers. The reasonable expense of any such appraisal shall be a part of the expense of examination, to be borne by the insurer.

(5)  Neither the department nor any examiner shall remove any record, account, document, file, or other property of the person being examined from the offices of such person except with the written consent of such person given in advance of such removal or pursuant to an order of court duly obtained.

(6)  Any individual who willfully obstructs the department or its examiner in the examinations or investigations authorized by this part is guilty of a misdemeanor and upon conviction shall be punished as provided in s. 624.15.

History.--s. 33, ch. 59-205; ss. 13, 35, ch. 69-106; s. 3, ch. 76-168; s. 1, ch. 77-457; ss. 2, 3, ch. 81-318; ss. 28, 37, 809(1st), ch. 82-243; ss. 187, 188, ch. 91-108; s. 4, ch. 91-429; s. 180, ch. 97-102.

624.319  Examination and investigation reports.--

(1)  The department or its examiner shall make a full and true written report of each examination. The examination report shall contain only information obtained from examination of the records, accounts, files, and documents of or relative to the insurer examined or from testimony of individuals under oath, together with relevant conclusions and recommendations of the examiner based thereon. The department shall furnish a copy of the examination report to the insurer examined not less than 30 days prior to filing the examination report in its office. If such insurer so requests in writing within such 30-day period, the department shall grant a hearing with respect to the examination report and shall not so file the examination report until after the hearing and after such modifications have been made therein as the department deems proper.

(2)  The examination report when so filed shall be admissible in evidence in any action or proceeding brought by the department against the person examined, or against its officers, employees, or agents. In all other proceedings, the admissibility of the examination report is governed by the evidence code. The department or its examiners may at any time testify and offer other proper evidence as to information secured or matters discovered during the course of an examination, whether or not a written report of the examination has been either made, furnished, or filed in the department.

(3)(a)  Examination reports, until filed, are confidential and exempt from the provisions of s. 119.07(1). Investigation reports are confidential and exempt from the provisions of s. 119.07(1) until the investigation is completed or ceases to be active. For purposes of this subsection, an investigation is active while it is being conducted by the department with a reasonable, good faith belief that it could lead to the filing of administrative, civil, or criminal proceedings. An investigation does not cease to be active if the department is proceeding with reasonable dispatch and has a good faith belief that action could be initiated by the department or other administrative or law enforcement agency. After an investigation is completed or ceases to be active, portions of the investigation report relating to the investigation remain confidential and exempt from the provisions of s. 119.07(1) if disclosure would:

1.  Jeopardize the integrity of another active investigation;

2.  Impair the safety and financial soundness of the licensee or affiliated party;

3.  Reveal personal financial information;

4.  Reveal the identity of a confidential source;

5.  Defame or cause unwarranted damage to the good name or reputation of an individual or jeopardize the safety of an individual; or

6.  Reveal investigative techniques or procedures.

(b)  Lists of insurers or regulated companies are confidential and exempt from the provisions of s. 119.07(1) if:

1.  The financial solvency, condition, or soundness of such insurers or regulated companies is being monitored by the department;

2.  The list is prepared to internally coordinate regulation by the department of the financial solvency, condition, or soundness of the insurers or regulated companies; and

3.  The Insurance Commissioner and Treasurer determine that public inspection of such list could impair the financial solvency, condition, or soundness of such insurers or regulated companies.

(4)  After the examination report has been filed pursuant to subsection (1), the department may publish the results of any such examination in one or more newspapers published in this state whenever it deems it to be in the public interest.

(5)  After the examination report of an insurer has been filed pursuant to subsection (1), an affidavit shall be filed with the department, not more than 30 days after the report has been filed, on a form furnished by the department and signed by the officer of the company in charge of the insurer's business in this state, stating that she or he has read the report and that the recommendations made in the report will be considered within a reasonable time.

History.--s. 34, ch. 59-205; ss. 13, 35, ch. 69-106; s. 1, ch. 71-46; s. 3, ch. 76-168; s. 1, ch. 77-457; ss. 2, 3, ch. 81-318; ss. 29, 37, 809(1st), ch. 82-243; s. 1, ch. 86-126; ss. 187, 188, ch. 91-108; s. 4, ch. 91-429; s. 5, ch. 93-78; s. 365, ch. 96-406; s. 1721, ch. 97-102.

624.320  Examination expenses.--

(1)  Each insurer so examined shall pay to the department the expenses of the examination at the rates adopted by the department. Such expenses shall include actual travel expenses, reasonable living expense allowance, compensation of the examiner or other person making the examination, and necessary attendant administrative costs of the department directly related to the examination. Such travel expense and living expense allowance shall be limited to those expenses necessarily incurred on account of the examination and shall be paid by the examined insurer together with compensation upon presentation by the department to such insurer of a detailed account of such charges and expenses after a detailed statement has been filed by the examiner and approved by the department.

(2)  All moneys collected from insurers for examinations shall be deposited into the Insurance Commissioner's Regulatory Trust Fund, and the department is authorized to make deposits from time to time into such fund from moneys appropriated for the operation of the department.

(3)  Notwithstanding the provisions of s. 112.061, the department is authorized to pay to the examiner or person making the examination out of such trust fund the actual travel expenses, reasonable living expense allowance, and compensation in accordance with the statement filed with the department by the examiner or other person, as provided in subsection (1) upon approval by the department.

(4)  When not examining an insurer, the travel expenses, per diem, and compensation for the examiners and other persons employed to make examinations, if approved, shall be paid out of moneys budgeted for such purpose as regular employees, reimbursements for such travel expenses and per diem to be at rates no more than as provided in s. 112.061.

(5)  The department is authorized to pay to regular insurance examiners, not residents of Leon County, Florida, per diem for periods not exceeding 30 days for each such examiner while at the office of the department in Tallahassee, Florida, for the purpose of auditing insurers' annual statements. Such expenses shall be paid out of moneys budgeted for such purpose, as for regular employees at rates provided in s. 112.061.

(6)  The provisions of this section shall apply to rate analysts and rate examiners in the discharge of their duties under s. 624.3161.

History.--s. 35, ch. 59-205; s. 1, ch. 61-208; s. 1, ch. 63-125; ss. 13, 35, ch. 69-106; ss. 2, 3, ch. 71-46; s. 3, ch. 76-168; s. 1, ch. 77-457; ss. 2, 3, ch. 81-318; ss. 30, 37, 809(1st), ch. 82-243; ss. 11, 187, 188, ch. 91-108; s. 4, ch. 91-429.

624.321  Witnesses and evidence.--

(1)  As to any examination, investigation, or hearing being conducted under this code, the Insurance Commissioner and Treasurer or her or his designee:

(a)  May administer oaths, examine and cross-examine witnesses, receive oral and documentary evidence; and

(b)  Shall have the power to subpoena witnesses, compel their attendance and testimony, and require by subpoena the production of books, papers, records, files, correspondence, documents, or other evidence which is relevant to the inquiry.

(2)  If any person refuses to comply with any such subpoena or to testify as to any matter concerning which she or he may be lawfully interrogated, the Circuit Court of Leon County or of the county wherein such examination, investigation, or hearing is being conducted, or of the county wherein such person resides, may, on the application of the department, issue an order requiring such person to comply with the subpoena and to testify.

(3)  Subpoenas shall be served, and proof of such service made, in the same manner as if issued by a circuit court. Witness fees, cost, and reasonable travel expenses, if claimed, shall be allowed the same as for testimony in a circuit court.

History.--s. 36, ch. 59-205; ss. 13, 35, ch. 69-106; s. 3, ch. 76-168; s. 1, ch. 77-457; ss. 2, 3, ch. 81-318; ss. 31, 37, 809(1st), ch. 82-243; ss. 187, 188, ch. 91-108; s. 4, ch. 91-429; s. 181, ch. 97-102.

624.322  Testimony compelled; immunity from prosecution.--

(1)  If any natural person asks to be excused from attending or testifying or from producing any books, papers, records, contracts, documents, or other evidence in connection with any examination, hearing, or investigation being conducted by the department or its examiner, on the ground that the testimony or evidence required of her or him may tend to incriminate the person or subject her or him to a penalty or forfeiture, and shall notwithstanding be directed to give such testimony or produce such evidence, the person must, if so directed by the department and the Department of Legal Affairs, nonetheless comply with such direction; but she or he shall not thereafter be prosecuted or subjected to any penalty or forfeiture for or on account of any transaction, matter, or thing concerning which she or he may have so testified or produced evidence; and no testimony so given or evidence produced shall be received against the person upon any criminal action, investigation, or proceeding. However, no such person so testifying shall be exempt from prosecution or punishment for any perjury committed by her or him in such testimony, and the testimony or evidence so given or produced shall be admissible against her or him upon any criminal action, investigation, or proceeding concerning such perjury. No license or permit conferred or to be conferred to such person shall be refused, suspended, or revoked based upon the use of such testimony.

(2)  Any such individual may execute, acknowledge, and file in the office of the Department of Insurance a statement expressly waiving such immunity or privilege in respect to any transaction, matter, or thing specified in such statement; and thereupon the testimony of such individual or such evidence in relation to such transaction, matter, or thing may be received or produced before any judge or justice, court, tribunal, grand jury, or otherwise; and, if so received or produced, such individual shall not be entitled to any immunity or privileges on account of any testimony she or he may so give or evidence so produced.

History.--s. 37, ch. 59-205; ss. 11, 13, 35, ch. 69-106; s. 3, ch. 76-168; s. 1, ch. 77-457; ss. 2, 3, ch. 81-318; ss. 32, 37, 809(1st), ch. 82-243; ss. 187, 188, ch. 91-108; s. 4, ch. 91-429; s. 182, ch. 97-102.

624.324  Hearings.--The department may hold hearings for any purpose within the scope of this code deemed to be necessary.

History.--s. 39, ch. 59-205; ss. 13, 35, ch. 69-106; s. 3, ch. 76-168; s. 1, ch. 77-457; s. 21, ch. 78-95; ss. 2, 3, ch. 81-318; ss. 34, 37, 809(1st), ch. 82-243; ss. 187, 188, ch. 91-108; s. 4, ch. 91-429.

624.33  Jurisdiction regarding health or life coverage.--

(1)  Notwithstanding any other provision of law, and except as provided in this section, any person or other entity which in this state provides life insurance coverage; annuities; or coverage for medical, surgical, chiropractic, physical therapy, speech-language pathology, audiology, professional mental health, dental, hospital, or optometric expenses, or any other health insurance coverage, whether such coverage is by direct payment, reimbursement, or otherwise, shall, upon request, file with the Department of Insurance a copy of Internal Revenue Service form 5500 and attached schedules as filed with the Internal Revenue Service and the United States Department of Labor, and an annual summary, as required by the Employee Retirement Income Security Act of 1974, 29 U.S.C. ss. 1001 et seq., as amended.

(2)  Any person or entity providing any of the coverages or benefits referred to in subsection (1) which does not meet the filing requirements referred to in subsection (1), or which otherwise fails to demonstrate to the department that, while providing such services, it is exempt from state law, shall submit to an examination by the department to determine the organization and solvency of the person or entity and to determine whether or not such entity is in compliance with the applicable provisions of chapters 624-651.

(3)  A governmental trust which is established or maintained entirely by the state, counties, municipalities, or special taxing districts or any agency or instrumentality thereof or any combination thereof exclusively for the benefit of their employees is exempt from the terms of this section.

(4)  Any licensed agent, administrator, service company, or other person which, in connection with coverage offered by an entity subject to examination by the department in accordance with subsection (2), is engaged in this state in the solicitation, negotiation, or effectuation of any such coverage or the inspection of risks or the setting of rates, the investigation or adjustment of losses, the collection of premiums, or any other function connected with any such coverage is subject to the jurisdiction of the department and to such examination as the department deems necessary of the accounts, records, documents, and transactions pertaining to or affecting such coverage to the same extent as the person or entity affording such coverage.

(5)  This section does not apply to an insurer, health maintenance organization, professional service plan corporation, or person providing continuing care, which person or entity possesses a valid certificate of authority issued by the department, except to the extent that such person or entity provides the coverages described in subsection (1) to its employees other than under a policy or contract which is otherwise subject to regulation under the Florida Insurance Code.

History.--s. 2, ch. 83-203; s. 13, ch. 84-70; s. 3, ch. 84-94; s. 1, ch. 85-212; ss. 12, 187, 188, ch. 91-108; s. 4, ch. 91-429.

624.34  Authority of Department of Law Enforcement to accept fingerprints of, and exchange criminal history records with respect to, certain persons.--

(1)  The Department of Law Enforcement may accept fingerprints of organizers, incorporators, subscribers, officers, stockholders, directors, or any other persons involved, directly or indirectly, in the organization, operation, or management of:

(a)  Any insurer or proposed insurer transacting or proposing to transact insurance in this state.

(b)  Any other entity which is examined or investigated or which is eligible to be examined or investigated under the provisions of the Florida Insurance Code.

(2)  The Department of Law Enforcement may accept fingerprints of individuals who apply for a license as an agent, customer representative, adjuster, service representative, or managing general agent or the fingerprints of the majority owner, sole proprietor, partners, officers, and directors of a corporation or other legal entity that applies for licensure with the department under the provisions of the Florida Insurance Code.

(3)  The Department of Law Enforcement may, to the extent provided for by federal law, exchange state, multistate, and federal criminal history records with the department for the purpose of the issuance, suspension, or revocation of a certificate of authority or license to operate in this state.

History.--s. 1, ch. 84-131; s. 1, ch. 86-286; s. 3, ch. 88-166; s. 191, ch. 90-363; ss. 187, 188, ch. 91-108; s. 4, ch. 91-429.

624.401  Certificate of authority required.

624.402  Exceptions, certificate of authority required.

624.4031  Church benefit plans and church benefit board.

624.404  General eligibility of insurers for certificate of authority.

624.406  Combinations of insuring powers, one insurer.

624.407  Capital funds required; new insurers.

624.4071  Special purpose homeowner insurance company.

624.4072  Minority-owned property and casualty insurers; limited exemption for taxation and assessments.

624.4075  Captive conversion or expansion.

624.408  Surplus as to policyholders required; new and existing insurers.

624.4085  Risk-based capital requirements for insurers.

624.40851  Confidentiality of risk-based capital information.

624.4095  Premiums written; restrictions.

624.410  Permissible insuring combinations without additional capital funds.

624.411  Deposit requirement; domestic insurers and foreign insurers.

624.412  Deposit of alien insurers.

624.413  Application for certificate of authority.

624.414  Issuance or refusal of authority.

624.415  Ownership of certificate of authority; return.

624.416  Continuance, expiration, reinstatement, and amendment of certificate of authority.

624.418  Suspension, revocation of certificate of authority for violations and special grounds.

624.420  Order, notice of suspension or revocation of certificate of authority; effect; publication.

624.421  Duration of suspension; insurer's obligations during suspension period; reinstatement.

624.4211  Administrative fine in lieu of suspension or revocation.

624.422  Service of process; appointment of Insurance Commissioner and Treasurer as process agent.

624.423  Serving process.

624.424  Annual statement and other information.

624.4241  NAIC filing requirements.

624.4243  Reporting of premium growth.

624.4245  Change in controlling interest of foreign or alien insurer; report required.

624.425  Resident agent and countersignature required, property, casualty, surety insurance.

624.426  Exceptions to resident agent and countersignature law.

624.428  Licensed agent law, life and health insurances.

624.430  Withdrawal of insurer or discontinuance of writing certain kinds or lines of insurance.

624.436  Florida Nonprofit Multiple-Employer Welfare Arrangement Act.

624.4361  Definitions.

624.437  "Multiple-employer welfare arrangement" defined; certificate of authority required; penalty.

624.438  General eligibility.

624.4385  Certain words prohibited in name of organization.

624.439  Filing of application.

624.4392  Fund balance.

624.44  Examination by the department.

624.441  Insolvency protection.

624.4411  Administrative, provider, and management contracts.

624.4412  Policy forms.

624.4414  Employer participants' liability.

624.4415  Assessments.

624.4416  Assessments by receiver.

624.4417  Certain sales prohibited.

624.442  Annual reports; actuarial certification; quarterly reports; penalties.

624.443  Place of business; maintenance of records.

624.4431  Administration; rules.

624.4432  Assets, liabilities, and investments.

624.4435  Assets of insurers; reporting requirements.

624.444  Suspension, revocation of approval.

624.445  Order, notice, duration, effect of suspension or revocation; administrative fine.

624.446  Rehabilitation, dissolution.

624.447  Certificate of insurance for contractors.

624.45  Participation of financial institutions in reinsurance and in insurance exchanges.

624.460  Short title.

624.461  Definition.

624.462  Commercial self-insurance funds.

624.4621  Group self-insurance funds.

624.4622  Local government self-insurance funds.

624.46225  Self-insured public utilities.

624.463  Conversion of self-insurance fund.

624.464  Certificate of authority required; penalties.

624.466  Application requirements for certificate of authority.

624.468  Continuing requirements for certificate of authority.

624.469  Premiums written; restrictions.

624.470  Annual reports.

624.472  Member's liability.

624.473  Dividends.

624.474  Assessments.

624.4741  Venue in assessment actions.

624.475  Tax on premiums, contributions, and assessments.

624.476  Impaired self-insurance funds.

624.477  Liquidation, rehabilitation, reorganization, and conservation.

624.480  Filing, approval, and disapproval of forms.

624.482  Making and use of rates.

624.483  Self-insurer members; payment of delinquent premiums and assessments.

624.484  Registration of agent.

624.486  Examination.

624.487  Enforcement of specified insurance provisions; adoption of rules.

624.488  Applicability of related laws.

624.489  Liability of trustees of self-insurance trust fund and directors of self-insurance funds operating as corporations.

624.401  Certificate of authority required.--

(1)  No person shall act as an insurer, and no insurer or its agents, attorneys, subscribers, or representatives shall directly or indirectly transact insurance, in this state except as authorized by a subsisting certificate of authority issued to the insurer by the department, except as to such transactions as are expressly otherwise provided for in this code.

(2)  No insurer shall from offices or by personnel or facilities located in this state solicit insurance applications or otherwise transact insurance in another state or country unless it holds a subsisting certificate of authority issued to it by the department authorizing it to transact the same kind or kinds of insurance in this state.

(3)  This state hereby preempts the field of regulating insurers and their agents and representatives; and no county, city, municipality, district, school district, or political subdivision shall require of any insurer, agent, or representative regulated under this code any authorization, permit, or registration of any kind for conducting transactions lawful under the authority granted by the state under this code.

(4)  Any person who acts as an insurer, transacts insurance, or otherwise engages in insurance activities in this state without a certificate of authority in violation of this section commits a felony of the third degree, punishable as provided in s. 775.082, s. 775.083, or s. 775.084.

History.--s. 45, ch. 59-205; s. 1, ch. 61-75; ss. 13, 35, ch. 69-106; s. 3, ch. 76-168; s. 1, ch. 77-457; ss. 2, 3, ch. 81-318; ss. 64, 809(1st), ch. 82-243; ss. 13, 187, 188, ch. 91-108; s. 4, ch. 91-429.

624.402  Exceptions, certificate of authority required.--A certificate of authority shall not be required of an insurer with respect to:

(1)  Investigation, settlement, or litigation of claims under its policies lawfully written in this state, or liquidation of assets and liabilities of the insurer (other than collection of new premiums), all as resulting from its former authorized operations in this state.

(2)  Transactions involving a policy, subsequent to issuance thereof, covering only subjects of insurance not resident, located, or expressly to be performed in this state at the time of issuance, and lawfully solicited, written, or delivered outside this state.

(3)  Transactions pursuant to surplus lines coverages lawfully written under part VIII of chapter 626.

(4)  Reinsurance, when transacted as authorized under s. 624.610.

(5)  Continuation and servicing of life insurance or health insurance policies or annuity contracts remaining in force as to residents of this state when the insurer has withdrawn from the state and is not transacting new insurance therein.

(6)  Investment by a foreign insurer of its funds in real estate in this state or in securities secured thereby, if the foreign insurer complies with the laws of this state relating generally to foreign business corporations.

(7)  Transactions involving hospital professional, hospital liability, and hospital general liability insurance issued to a resident of this state by a captive insurance company, provided:

(a)  The captive insurance company is domiciled in a United States jurisdiction, the insurance regulatory body of which has been accredited by the National Association of Insurance Commissioners;

(b)  The insured owns or controls, or holds with the power to vote, a percentage of the voting securities of such captive insurance company which is equal to or greater than the greatest percentage of voting securities owned or controlled by any other person;

(c)  The captive insurance company files an insurance premium tax return in this state and pays the tax on such insurance premiums imposed by s. 624.509(1) or s. 624.5091, whichever is greater;

(d)  The captive insurance company has insured no more than three hospitals in Florida;

(e)  The captive insurance company has been in existence for at least 3 years as of July 1, 1992; and

(f)  The captive insurance company maintains a surplus of at least $1.5 million in accordance with the laws of its state of domicile.

History.--s. 46, ch. 59-205; s. 3, ch. 76-168; s. 1, ch. 77-457; ss. 2, 3, ch. 81-318; ss. 38, 64, 809(1st), ch. 82-243; s. 8, ch. 87-226; ss. 184, 187, 188, ch. 91-108; s. 4, ch. 91-429; s. 2, ch. 92-328.

624.4031  Church benefit plans and church benefit board.--

(1)  For purposes of this section, "church benefits board" means an organization as described in s. 414(e)(3)(A) of the Internal Revenue Code of 1986, as amended, that:

(a)  Has the principal purpose or function of administering or funding a plan or program for providing retirement benefits or welfare benefits for the ministers or employees of a church or a conference, convention, or association of churches.

(b)  Is controlled by or affiliated with a church or a conference, convention, or association of churches.

(2)  If authorized by its members or as otherwise provided by law, a domestic or foreign nonprofit corporation formed for a religious purpose may provide, directly or through a separate church benefits board, for the support and payment of pensions and benefits to its ministers, teachers, employees, trustees, directors, or other functionaries and to the ministers, teachers, employees, trustees, directors, or functionaries of organizations controlled by or affiliated with a church or a conference, convention, or association of churches under its jurisdiction and control and may provide for the payment of pensions and benefits to the spouse, children, dependents, or other beneficiaries of such persons.

(3)  A church benefits board may provide for the collection of contributions and other payments to aid in providing pensions and benefits under this act and for the creation, maintenance, investment, management, and disbursement of necessary annuities, endowments, reserves, and other funds for such purposes. Payments may be received from a trust fund or corporation that funds a "church plan" as defined by s. 414(e) of the Internal Revenue Code of 1986, as amended.

(4)  A church benefits board may provide certificates or agreements of participation and debentures and indemnification agreements to its program participants as appropriate to accomplish its purposes, may act as trustee under a lawful trust committed to it by contract, will, or otherwise, and may act as agent for the performance of a lawful act relating to the purposes of the trust.

(5)  A church benefits board, directly or through an affiliate wholly owned by the board, may agree to indemnify against damage or risk of loss:

(a)  Its affiliated ministers, teachers, employees, trustees, functionaries, and directors and their families, dependents, and beneficiaries.

(b)  A church, or a convention, conference, or association of churches, or an organization that is controlled by or affiliated with a church or a convention, conference, or association of churches.

(6)  Money or other benefits that have been or will be provided to a participant or a beneficiary under a plan or program of retirement income, relief, welfare, or employee benefit provided by or through a church benefits board is not subject to execution, attachment, garnishment, or other process and may not be seized, taken, appropriated, or applied as part of a judicial, legal, or equitable process or operation of a law other than a constitution to pay a debt or liability of the participant or beneficiary. This section does not apply to a qualified domestic relations order or an amount required by the church benefits board to recover costs or expenses it incurred in the plan or program.

(7)  If a plan or program under this act contains a provision prohibiting assignment or other transfer by a beneficiary of money or benefits to be paid or rendered or of other rights under the plan or program without the written consent of the church benefits board, a prohibited assignment or transfer or an attempt to make a prohibited assignment or transfer is void if made without that consent.

(8)  The Florida Insurance Code does not apply to a church benefits board that has operated more than 5 years in its state of domicile and has more than $2 million in reserves. This exemption extends to the programs, plans, benefits, activities, or affiliates of the church benefits board. A church benefits board may qualify for this exemption if an authorized representative of the church benefits board submits to the department an affidavit stating that the church benefits board meets or exceeds the requirements of this section. If the department believes the information provided on the affidavit is inaccurate, the department has the burden of proving that the church benefits board fails to meet the requirements of this section.

(9)  Church benefits boards may not issue life insurance policies.

History.--s. 6, ch. 96-168.

624.404  General eligibility of insurers for certificate of authority.--To qualify for and hold authority to transact insurance in this state, an insurer must be otherwise in compliance with this code and with its charter powers and must be an incorporated stock insurer, an incorporated mutual insurer, or a reciprocal insurer, of the same general type as may be formed as a domestic insurer under this code; except that:

(1)  No insurer shall be authorized to transact insurance in this state which does not maintain reserves as required by part I of chapter 625 applicable to the kind or kinds of insurance transacted by such insurer, wherever transacted in the United States, or which transacts insurance in the United States on the assessment premium plan, stipulated premium plan, cooperative plan, or any similar plan.

(2)  No foreign or alien insurer or exchange shall be authorized to transact insurance in this state unless it is otherwise qualified therefor under this code and has operated satisfactorily for at least 3 years in its state or country of domicile; however, the department may waive the 3-year requirement if the foreign or alien insurer or exchange:

(a)  Has operated successfully and has capital and surplus of $5 million;

(b)  Is the wholly owned subsidiary of an insurer which is an authorized insurer in this state;

(c)  Is the successor in interest through merger or consolidation of an authorized insurer; or

(d)  Provides a product or service not readily available to the consumers of this state.

(3)(a)  The department shall not grant or continue authority to transact insurance in this state as to any insurer the management, officers, or directors of which are found by it to be incompetent or untrustworthy; or so lacking in insurance company managerial experience as to make the proposed operation hazardous to the insurance-buying public; or so lacking in insurance experience, ability, and standing as to jeopardize the reasonable promise of successful operation; or which it has good reason to believe are affiliated directly or indirectly through ownership, control, reinsurance transactions, or other insurance or business relations, with any person or persons whose business operations are or have been marked, to the detriment of policyholders or stockholders or investors or creditors or of the public, by manipulation of assets, accounts, or reinsurance or by bad faith.

(b)  The department shall not grant or continue authority to transact insurance in this state as to any insurer if any person, including any subscriber, stockholder, or incorporator, who exercises or has the ability to exercise effective control of the insurer, or who influences or has the ability to influence the transaction of the business of the insurer, does not possess the financial standing and business experience for the successful operation of the insurer.

(c)  The department may deny, suspend, or revoke the authority to transact insurance in this state of any insurer if any person, including any subscriber, stockholder, or incorporator, who exercises or has the ability to exercise effective control of the insurer, or who influences or has the ability to influence the transaction of the business of the insurer, has been found guilty of, or has pleaded guilty or nolo contendere to, any felony or crime punishable by imprisonment of 1 year or more under the law of the United States or any state thereof or under the law of any other country which involves moral turpitude, without regard to whether a judgment of conviction has been entered by the court having jurisdiction in such case. However, in the case of an insurer operating under a subsisting certificate of authority, the insurer shall remove any such person immediately upon discovery of the conditions set forth in this paragraph when applicable to such person or upon the order of the department, and the failure to so act by said insurer shall be grounds for revocation or suspension of the insurer's certificate of authority.

(d)  The department may deny, suspend, or revoke the authority of an insurer to transact insurance in this state if any person, including any subscriber, stockholder, or incorporator, who exercises or has the ability to exercise effective control of the insurer, or who influences or has the ability to influence the transaction of the business of the insurer, which person the department has good reason to believe is now or was in the past affiliated directly or indirectly, through ownership interest of 10 percent or more, control, or reinsurance transactions, with any business, corporation, or other entity that has been found guilty of or has pleaded guilty or nolo contendere to any felony or crime punishable by imprisonment for 1 year or more under the laws of the United States, any state, or any other country, regardless of adjudication. However, in the case of an insurer operating under a subsisting certificate of authority, the insurer shall immediately remove such person or immediately notify the department of such person upon discovery of the conditions set forth in this paragraph, either when applicable to such person or upon order of the department; the failure to remove such person, provide such notice, or comply with such order constitutes grounds for suspension or revocation of the insurer's certificate of authority.

(4)(a)  No authorized insurer shall act as a fronting company for any unauthorized insurer which is not an approved reinsurer.

(b)  A "fronting company" is an authorized insurer which by reinsurance or otherwise generally transfers more than 50 percent to one unauthorized insurer which is not an approved reinsurer, or more than 75 percent to two or more unauthorized insurers which are not approved reinsurers, of the entire risk of loss on all of the insurance written by it in this state, or on one or more lines of insurance, on all of the business produced through one or more agents or agencies, or on all of the business from a designated geographical territory, without obtaining the prior approval of the department.

(c)  The department may, in its discretion, approve a transfer of risk in excess of the limits in paragraph (b) upon presentation of evidence, satisfactory to the department, that the transfer would be in the best interests of the financial condition of the insurer and in the best interests of the policyholders.

(5)  No insurer shall be authorized to transact insurance in this state which, during the 3 years immediately preceding its application for a certificate of authority, has violated any of the insurance laws of this state and after being informed of such violation has failed to correct the same; except that, if all other requirements are met, the department may nevertheless issue a certificate of authority to such an insurer upon the filing by the insurer of a sworn statement of all such insurance so written in violation of law, and upon payment to the department of a sum of money as additional filing fee equivalent to all premium taxes and other state taxes and fees as would have been payable by the insurer if such insurance had been lawfully written by an authorized insurer under the laws of this state. This fee, when collected, shall be deposited to the credit of the Insurance Commissioner's Regulatory Trust Fund.

(6)  Nothing in this code shall be deemed to prohibit the granting and continuance of a certificate of authority to a domestic title insurer organized as a business trust, if the declaration of trust of such insurer was filed in the office of the Secretary of State prior to January 1, 1959, and if the insurer otherwise meets the applicable requirements of this code. Such an insurer may hereinafter in this code be referred to as a "business trust insurer."

(7)  For the purpose of satisfying the requirements of ss. 624.407 and 624.408, the investment portfolio of an insurer applying for an initial certificate of authority to do business in this state shall value its bonds and stocks in accordance with the provisions of the latest edition of the publication "Valuations of Securities" by the National Association of Insurance Commissioners, 1990, and subsequent amendments thereto, if the valuation methodology remains substantially unchanged.

History.--s. 48, ch. 59-205; s. 3, ch. 65-269; ss. 13, 35, ch. 69-106; s. 1, ch. 74-44; s. 3, ch. 76-168; s. 1, ch. 77-457; s. 15, ch. 77-468; ss. 2, 3, ch. 81-318; ss. 40, 64, 809(1st), ch. 82-243; s. 3, ch. 83-288; s. 1, ch. 84-65; s. 1, ch. 86-140; s. 4, ch. 88-166; s. 24, ch. 89-360; ss. 14, 187, 188, ch. 91-108; s. 4, ch. 91-429.

624.406  Combinations of insuring powers, one insurer.--An insurer which otherwise qualifies therefor may be authorized to transact any one kind or combination of kinds of insurance as defined in part V except:

(1)  A life insurer may also grant annuities, but shall not be authorized to transact any other kind of insurance except health insurance, disability income insurance, excess coverage for health maintenance organizations, or excess insurance, specific and aggregate, for self-insurers of a plan of health insurance and multiple-employer welfare arrangements.

(2)  A reciprocal insurer shall not transact life insurance.

(3)  Except as to domestic business trust title insurers as referred to in s. 624.404(6), so authorized prior to the effective date of this code, a title insurer shall be a stock insurer.

(4)  A health insurer may also transact excess insurance, specific and aggregate, for self-insurers of a plan of health insurance and multiple-employer welfare arrangements.

History.--s. 50, ch. 59-205; ss. 13, 35, ch. 69-106; s. 3, ch. 76-168; s. 1, ch. 77-457; ss. 2, 3, ch. 81-318; ss. 42, 64, 809(1st), ch. 82-243; s. 2, ch. 84-65; ss. 187, 188, ch. 91-108; s. 4, ch. 91-429.

624.407  Capital funds required; new insurers.--

(1)  To receive authority to transact any one kind or combinations of kinds of insurance, as defined in part V of this chapter, an insurer applying for its original certificate of authority in this state after the effective date of this section shall possess surplus as to policyholders not less than the greater of:

(a)  Five million dollars for a property and casualty insurer, or $2.5 million for any other insurer;

(b)  For life insurers, 4 percent of the insurer's total liabilities;

(c)  For life and health insurers, 4 percent of the insurer's total liabilities, plus 6 percent of the insurer's liabilities relative to health insurance; or

(d)  For all insurers other than life insurers and life and health insurers, 10 percent of the insurer's total liabilities;

however, no insurer shall be required under this subsection to have surplus as to policyholders greater than $100 million.

(2)  The requirements of this section shall be based upon all the kinds of insurance actually transacted or to be transacted by the insurer in any and all areas in which it operates, whether or not only a portion of such kinds are to be transacted in this state.

(3)  As to surplus as to policyholders required for qualification to transact one or more kinds of insurance, domestic mutual insurers are governed by chapter 628, and domestic reciprocal insurers are governed by chapter 629.

(4)  For the purposes of this section, liabilities shall not include liabilities required under s. 625.041(4). For purposes of computing minimum surplus as to policyholders pursuant to s. 625.305(1), liabilities shall include liabilities required under s. 625.041(4).

(5)  The provisions of this section, as amended by this act, shall apply only to insurers applying for a certificate of authority on or after the effective date of this act.

History.--s. 51, ch. 59-205; s. 1, ch. 63-29; s. 1, ch. 67-235; s. 3, ch. 76-168; s. 1, ch. 77-457; ss. 2, 3, ch. 81-318; ss. 43, 64, 809(1st), ch. 82-243; s. 2, ch. 85-245; s. 25, ch. 89-360; ss. 15, 187, 188, ch. 91-108; s. 4, ch. 91-429; s. 5, ch. 93-410.

624.4071  Special purpose homeowner insurance company.--

(1)  The department may issue to a qualified applicant a certificate of authority to operate a special purpose homeowner insurance company in order to provide residential coverage to policyholders in this state. The purpose of a special purpose homeowner insurance company is to provide, on a temporary basis, a new, limited authority insurance company in order to accelerate the restoration of the Florida homeowner insurance marketplace, which includes depopulation of the Residential Property and Casualty Joint Underwriting Association.

(2)  A special purpose homeowner insurance company must have a parent company, and both companies must meet the requirements of this subsection in order for the subsidiary to qualify for and maintain a certificate of authority under this section.

(a)  The parent company must be an admitted insurer in at least one state in the United States and must have over $50 million in capital and surplus.

(b)  The parent company must have and maintain at least 51 percent of the equity and at least 51 percent of the control of the special purpose homeowner insurance company.

(c)  An insurer not authorized to transact business in this state, but that otherwise meets the requirements of this section, may apply as a special purpose homeowner insurance company.

(d)  The special purpose homeowner insurance company must:

1.  Have and maintain at least $10 million in surplus and otherwise satisfy the requirements of s. 624.4095.

2.  Be a member of the Florida Insurance Guaranty Association and the Florida Hurricane Catastrophe Fund, and be subject to any of their required assessments and premium charges. However, a special purpose homeowner insurance company may not be a member of the Florida Windstorm Underwriting Association or the Florida Residential Property and Casualty Joint Underwriting Association, and neither the company nor its policyholders are subject to any assessments by these associations except for emergency assessments collected from policyholders pursuant to s. 627.351(2)(b)2.d.(III) and (6)(b)3.d. For the sole purpose of levying and collecting emergency assessments and determining the statewide written premium for property insurance, special purpose homeowner insurance companies shall be considered member insurers of the Florida Windstorm Underwriting Association and the Florida Residential Property and Casualty Joint Underwriting Association.

3.  Offer coverage for all perils, including windstorm, in providing residential coverage as defined in s. 627.4025. A special purpose homeowner insurance company's rates must be filed with the department. After a period of 1 year from the date a company receives a certificate of authority, the company's rates are subject to department approval under s. 627.062.

(3)(a)  The special purpose homeowner insurance company may charge a policyholder an initial premium of up to 110 percent of the premium charged to that policyholder for substantially similar coverage by the authorized insurer that last insured the policyholder, or the Residential Property and Casualty Joint Underwriting Association if the Residential Property and Casualty Joint Underwriting Association last insured the policyholder; or the special purpose homeowner insurance company may charge a policyholder the same premium that the policyholder would have been charged for substantially similar coverage upon renewal by the authorized insurer last insuring the policyholder or by the Residential Property and Casualty Joint Underwriting Association, if the Residential Property and Casualty Joint Underwriting Association last insured the policyholder.

(b)  A special purpose homeowner insurance company's forms must be substantially similar to standard ISO homeowner forms and must be filed with the department at least 30 days prior to use and must be approved by the department.

(4)  An application for a certificate of authority to operate a special purpose homeowner insurance company must be approved by the department, or be denied for good cause, under an expedited approval process within 75 days after receipt of the application. Both the special purpose homeowner insurance company and its parent company must demonstrate that its management is competent and trustworthy as required by s. 624.404(3).

(5)  The special purpose homeowner insurance company may write only policies that are directly taken from the Residential Property and Casualty Joint Underwriting Association or from an unaffiliated authorized insurer; may assume such policies either during the policy period or at the time of renewal; and must offer to renew such policies for two additional policy periods of 12 months each in accordance with subsection (3).

(a)  If the policy is to be nonrenewed by the Residential Property and Casualty Joint Underwriting Association or by an unaffiliated authorized insurer, the policyholder must be given 45 days' notice of nonrenewal along with a concurrent offer of coverage from the special purpose homeowner insurance company. If the policyholder declines coverage by nonpayment of premium or by notice given prior to the effective date of the new policy, the policyholder is ineligible for coverage by the Residential Property and Casualty Joint Underwriting Association, and the offer made by the special purpose homeowner insurance company terminates.

(b)  If the policy is to be nonrenewed by the Residential Property and Casualty Joint Underwriting Association or by an unaffiliated authorized insurer as the result of an assumption by a special purpose homeowner insurance company, the policyholder must be given 45 days' notice of assumption. If the policyholder declines coverage by nonpayment of premium or by notice given prior to the effective date of the new policy, the policyholder is ineligible for coverage with the ceding insurer or the Residential Property and Casualty Joint Underwriting Association, and the policy will not be assumed by the special purpose homeowner insurance company.

(c)  If a special purpose homeowner insurance company assumes a policy other than at nonrenewal, the authorized insurer last insuring the policyholder or the Residential Property and Casualty Joint Underwriting Association must pay any rate charge in excess of the current policy rate until the date the policy would have been renewed, at which time the policyholder is responsible for the entire rate at the time the policy is renewed with the special purpose homeowner company.

(d)  If a policy is assumed at any time other than at its renewal, the coverage and terms provided by the assumed policy continue in force until the original policy would have been renewed.

(e)  A policyholder who, at time of assumption, is covered for wind damage by the Florida Windstorm Underwriting Association shall have that peril assumed by the special purpose homeowner insurance company at the normal expiration of the Florida Windstorm Underwriting Association policy.

(6)  A special purpose homeowner insurance company must report, in writing, twice annually to the department, its most current estimate of probable maximum loss, and must furnish the department with copies of its reinsurance treaties in effect as of the reporting date. The first report must be filed with the department within 6 months after the company receives its certificate of authority, and subsequent reports must be filed at 6-month intervals.

(7)  A special purpose homeowner insurance company shall file with the department full and true statements of its financial condition, transactions, and affairs in accordance with s. 624.424. This annual statement covering the preceding calendar year must be filed on or before March 1. Such statements must contain information generally included in insurers' financial statements prepared in accordance with generally accepted insurance accounting principles and practices and in a form generally used by insurers for financial statements. Each special purpose homeowner insurance company shall submit no later than June 1 an audited financial statement pursuant to s. 624.424(8) which shall verify the unaudited statement previously filed.

(a)  Such statements must contain a statement of opinion on loss and loss adjustment expense reserves made by a member of the American Academy of Actuaries.

(b)  The parent company and the subsidiary must file such statements as a material part of an application to receive a certificate of authority for operating a special purpose homeowner insurance company. From the date a special purpose homeowner insurance company receives a certificate of authority, the company shall file such statements with the department every 6 months.

(c)  The department may refuse to continue, or may suspend or revoke, the certificate of authority of a special purpose homeowner insurance company that fails to comply with the requirements of this section or that meets the grounds specified in s. 624.418.

(8)  The department shall draft and formally propose rules within 60 days after the effective date of this section. The rules shall set forth the contents of the notice that insurers and the special purpose homeowner insurance company shall provide policyholders when a policy is canceled or nonrenewed for any reason and when an offer of new coverage is made. In developing the rule, the department shall consider factors necessary to inform the policyholder with respect to the policyholder's rights and responsibilities and the significant features of the policy.

(9)  A certificate of authority to operate a special purpose homeowner insurance company may not be issued after December 31, 1998. After December 31, 1998, a certificate of authority issued pursuant to the requirements of this section continues to be effective and subject to the requirements of this section until surrendered to the Department of Insurance. A certificate of authority issued pursuant to this section may not be sold or otherwise transferred without the approval of the department.

History.--s. 1, ch. 96-345; s. 1, ch. 97-55.

624.4072  Minority-owned property and casualty insurers; limited exemption for taxation and assessments.--

(1)  A minority business that is at least 51 percent owned by minority persons, as defined in s. 288.703(3), initially issued a certificate of authority in this state as an authorized insurer after May 1, 1998, to write property and casualty insurance shall be exempt, for a period not to exceed 5 years from the date of receiving its certificate of authority, from the following taxes and assessments:

(a)  Taxes imposed under ss. 175.101, 185.08, and 624.509;

(b)  Assessments by the Florida Residential Property and Casualty Joint Underwriting Association or by the Florida Windstorm Underwriting Association, as provided under s. 627.351, except for emergency assessments collected from policyholders pursuant to s. 627.351(2)(b)2.d.(III) and (6)(b)3.d. Any such insurer shall be a member insurer of the Florida Windstorm Underwriting Association and the Florida Residential Property and Casualty Joint Underwriting Association. The premiums of such insurer shall be included in determining, for the Florida Windstorm Underwriting Association, the aggregate statewide direct written premium for property insurance and in determining, for the Florida Residential Property and Casualty Joint Underwriting Association, the aggregate statewide direct written premium for the subject lines of business for all member insurers.

(2)  Subsection (1) applies only to personal lines and commercial lines residential property insurance policies as defined in s. 627.4025, and applies only to an insurer that has employees in this state and has a home office or a regional office in this state. With respect to any tax year or assessment year, the exemptions provided by subsection (1) apply only if during the year an average of at least 10 percent of the insurer's Florida residential property policies in force covered properties located in enterprise zones designated pursuant to s. 290.0065.

(3)  The provision of the definition of "minority person" in s. 288.703(3) that requires residency in Florida shall not apply to the term "minority person" as used in this section or s. 627.3511.

(4)  This section is repealed effective July 1, 2003, and the tax and assessment exemptions authorized by this section shall terminate on such date.

History.--s. 81, ch. 98-199.

¹624.4075  Captive conversion or expansion.--

(1)  With respect to any attempt by a captive insurer to convert its license to a certificate of authority as a domestic insurer authorized to transact property and casualty insurance whose permit to form a domestic insurer was pending before the department on October 1, 1989, the applicable surplus as to policyholders requirement shall be the greater of $1,500,000 or the amount set forth in s. 624.407(1)(d), rather than the greater of $2,500,000 or the amount set forth in s. 624.407(1)(d).

(2)  With respect to the shareholders of any captive insurer in existence on October 1, 1989, desiring to obtain a certificate of authority as a domestic insurer authorized to transact property and casualty insurance, they shall be permitted to form a domestic insurer with a surplus as to policyholders requirement that is the greater of $1,500,000 or the amount set forth in s. 624.407(1)(d), rather than the greater of $2,500,000 or the amount set forth in s. 624.407(1)(d).

History.--s. 8, ch. 90-248; s. 188, ch. 91-108; s. 2, ch. 92-29.

¹Note.--Repealed effective October 1, 2001, by s. 188, ch. 91-108, and scheduled for review pursuant to s. 11.61. Section 4, ch. 91-429, repealed s. 11.61 effective April 5, 1993. Section 33, ch. 96-318, confirmed the repeal of s. 11.61.

624.408  Surplus as to policyholders required; new and existing insurers.--

(1)(a)  To maintain a certificate of authority to transact any one kind or combinations of kinds of insurance, as defined in part V of this chapter, an insurer in this state shall at all times maintain surplus as to policyholders not less than the greater of:

1.  Except as provided in subparagraph 5. and paragraph (b), $1.5 million;

2.  For life insurers, 4 percent of the insurer's total liabilities;

3.  For life and health insurers, 4 percent of the insurer's total liabilities plus 6 percent of the insurer's liabilities relative to health insurance; or

4.  For all insurers other than life insurers and life and health insurers, 10 percent of the insurer's total liabilities.

5.  For property and casualty insurers, $4 million.

(b)  For any property and casualty insurer holding a certificate of authority on December 1, 1993, the following amounts apply instead of the $4 million required by subparagraph (a)5.:

1.  On December 31, 1998, and until December 30, 1999, $2.25 million.

2.  On December 31, 1999, and until December 30, 2000, $2.5 million.

3.  On December 31, 2000, and until December 30, 2001, $2.75 million.

4.  On December 31, 2001, and until December 30, 2002, $3 million.

5.  On December 31, 2002, and until December 30, 2003, $3.25 million.

6.  On December 31, 2003, and until December 30, 2004, $3.6 million.

7.  On December 31, 2004, and thereafter, $4 million.

(2)  For purposes of this section, liabilities shall not include liabilities required under s. 625.041(4). For purposes of computing minimum surplus as to policyholders pursuant to s. 625.305(1), liabilities shall include liabilities required under s. 625.041(4).

(3)  No insurer shall be required under this section to have surplus as to policyholders greater than $100 million.

History.--s. 52, ch. 59-205; s. 2, ch. 63-29; s. 2, ch. 67-235; s. 3, ch. 76-168; s. 1, ch. 77-457; ss. 1, 2, ch. 79-72; ss. 2, 3, ch. 81-318; ss. 44, 64, 809(1st), ch. 82-243; s. 4, ch. 83-288; s. 3, ch. 85-245; s. 26, ch. 89-360; ss. 16, 187, 188, ch. 91-108; s. 4, ch. 91-429; s. 6, ch. 93-410; s. 12, ch. 99-3.

624.4085  Risk-based capital requirements for insurers.--

(1)  As used in this section, the term:

(a)  "Adjusted risk-based capital report" means a risk-based capital report that has been adjusted by the department in accordance with this section.

(b)  "Authorized control level risk-based capital" means the number determined under the risk-based capital formula in the risk-based capital instructions.

(c)  "Company action level risk-based capital" means the product of 2.0 and an insurer's authorized control level risk-based capital.

(d)  "Corrective order" means an order issued by the department specifying corrective actions that the department has determined are required.

(e)  "Department" means the Department of Insurance.

(f)  "Domestic insurer" means any insurer domiciled in this state.

(g)  "Foreign insurer" means any insurer that is authorized or eligible to do business in this state but that is not domiciled in this state.

(h)  "Life and health insurer" means any insurer authorized or eligible under the Florida Insurance Code to underwrite life or health insurance. The term includes a property and casualty insurer that writes accident and health insurance only.

(i)  "Mandatory control level risk-based capital" means the product of 0.70 and the authorized control level risk-based capital.

(j)  "Negative trend" means, with respect to a life and health insurer, a negative trend over a period of time, as determined in accordance with the trend test calculation included in the risk-based capital instructions.

(k)  "Property and casualty insurer" means any insurer licensed under the Florida Insurance Code, but does not include a single-line mortgage guaranty insurer, financial guaranty insurer, or title insurer or a life and health insurer.

(l)  "Regulatory action level risk-based capital" means the product of 1.5 and an insurer's authorized control level risk-based capital.

(m)  "Revised risk-based capital plan" means the revision of the risk-based capital plan which is prepared by an insurer after the department rejects the original plan.

(n)  "Risk-based capital instructions" means the instructions for preparing a risk-based capital report as adopted by the National Association of Insurance Commissioners.

(o)  "Risk-based capital level" means an insurer's company action level risk-based capital, regulatory action level risk-based capital, authorized control level risk-based capital, or mandatory control level risk-based capital.

(p)  "Risk-based capital plan" means a comprehensive financial plan specified in paragraph (4)(b).

(q)  "Risk-based capital report" means the report required in subsection (2).

(r)  "Total adjusted capital" means the sum of:

1.  An insurer's statutory capital and surplus; and

2.  Any other item required by the risk-based capital instructions.

(2)(a)  Each domestic insurer that is subject to this section shall, on or before March 1 of each year, prepare and file with the National Association of Insurance Commissioners a report of its risk-based capital levels as of the end of the calendar year just ended, in a form and containing the information required in the risk-based capital instructions. In addition, each domestic insurer shall file a printed copy of its risk-based capital report:

1.  With the department on or before March 1 of each year.

2.  With the insurance department in any other state in which the insurer is authorized to do business, if that department has notified the insurer of its request in writing, in which case the insurer shall file its risk-based capital report not later than the later of:

a.  Fifteen days after the receipt of notice to file its risk-based capital report with that state; or

b.  March 1.

(b)  The comparison of an insurer's total adjusted capital to any of its risk-based capital levels is a regulatory tool that may indicate the need for possible corrective action with respect to the insurer, and may not be used as a means to rank insurers generally. Therefore, except as otherwise required under this section, the making, publishing, disseminating, circulating, or placing before the public, or causing, directly or indirectly, to be made, published, disseminated, circulated, or placed before the public, in a newspaper, magazine, or other publication, or in the form of a notice, circular, pamphlet, letter, or poster, or over any radio or television station, or in any other way, an advertisement, announcement, or statement containing an assertion, representation, or statement with regard to the risk-based capital levels of any insurer, or of any component derived in the calculation, by any insurer, agent, broker, or other person engaged in any manner in the insurance business would be misleading and is therefore prohibited; however, if any materially false statement with respect to the comparison regarding an insurer's total adjusted capital to its risk-based capital levels (or any of them) or an inappropriate comparison of any other amount to the insurer's risk-based capital levels is published in any written publication and the insurer is able to demonstrate to the commissioner with substantial proof the falsity or inappropriateness of the statement, the insurer may publish in a written publication an announcement the sole purpose of which is to rebut the materially false statement.

(c)  The department shall use the risk-based capital instructions, risk-based capital reports, adjusted risk-based capital reports, risk-based capital plans, and revised risk-based capital plans solely for monitoring the solvency of insurers and assessing the need for corrective action with respect to insurers. The department may not use that information for ratemaking, as evidence in any rate proceeding, or for calculating or deriving any elements of an appropriate premium level or rate of return for any line of insurance which an insurer or an affiliate of such insurer is authorized to write.

(d)  A life and health insurer's risk-based capital is determined in accordance with the formula set forth in the risk-based capital instructions. The formula takes into account and may adjust for the covariance between:

1.  The risk with respect to the insurer's assets;

2.  The risk of adverse insurance experience with respect to the insurer's liabilities and obligations;

3.  The interest rate risk with respect to the insurer's business; and

4.  Any other business or other relevant risk set out in the risk-based capital instructions,

determined in each case by applying the factors in the manner set forth in the risk-based capital instructions.

(e)  A property and casualty insurer's risk-based capital is determined in accordance with the formula set forth in the risk-based capital instructions. The formula takes into account and may adjust for the covariance between:

1.  The asset risk;

2.  The credit risk;

3.  The underwriting risk; and

4.  Any other business or other relevant risk set out in the risk-based capital instructions,

determined in each case by applying the factors in the manner set forth in the risk-based capital instructions.

(f)  The Legislature finds that an excess of capital over the amount produced by the risk-based capital requirements and the formulas, schedules, and instructions specified in this section is a desirable goal with respect to the business of insurance. Accordingly, insurers should seek to maintain capital above the risk-based capital levels required by this section. Additional capital is used and useful in the insurance business and helps to secure an insurer against various risks inherent in, or affecting, the business of insurance and not accounted for or only partially measured by the risk-based capital requirements contained in this section.

(g)  If a domestic insurer files a risk-based capital report that the department finds is inaccurate, the department shall adjust the risk-based capital report to correct the inaccuracy and shall notify the insurer of the adjustment. The notice must state the reason for the adjustment. A risk-based capital report that is so adjusted is referred to as the adjusted risk-based capital report. The adjusted risk-based capital report must also be filed by the insurer with the National Association of Insurance Commissioners.

(3)(a)  A company action level event includes:

1.  The filing of a risk-based capital report by an insurer which indicates that:

a.  The insurer's total adjusted capital is greater than or equal to its regulatory action level risk-based capital but less than its company action level risk-based capital; or

b.  If a life and health insurer, the insurer has total adjusted capital that is greater than or equal to its company action level risk-based capital, but is less than the product of its authorized control level risk-based capital and 2.5, and has a negative trend;

2.  The notification by the department to the insurer of an adjusted risk-based capital report that indicates an event in subparagraph 1., unless the insurer challenges the adjusted risk-based capital report under subsection (7); or

3.  If, under subsection (7), an insurer challenges an adjusted risk-based capital report that indicates an event in subparagraph 1., the notification by the department to the insurer that the department has, after a hearing, rejected the insurer's challenge.

(b)  If a company action level event occurs, the insurer shall prepare and submit to the department a risk-based capital plan, which must:

1.  Identify the conditions that contribute to the company action level event;

2.  Contain proposals of corrective actions that the insurer intends to take and that are reasonably expected to result in the elimination of the company action level event;

3.  Provide projections of the insurer's financial results in the current year and at least the 4 succeeding years, both in the absence of proposed corrective actions and giving effect to the proposed corrective actions, including projections of statutory operating income, net income, capital, and surplus. The projections for both new and renewal business may include separate projections for each major line of business and, if separate projections are provided, must separately identify each significant income, expense, and benefit component;

4.  Identify the key assumptions affecting the insurer's projections and the sensitivity of the projections to the assumptions; and

5.  Identify the quality of, and problems associated with, the insurer's business, including, but not limited to, its assets, anticipated business growth and associated surplus strain, extraordinary exposure to risk, mix of business, and any use of reinsurance.

(c)  The risk-based capital plan must be submitted:

1.  Within 45 days after the company action level event; or

2.  If the insurer challenges an adjusted risk-based capital report under subsection (7), within 45 days after notification to the insurer that the department has, after a hearing, rejected the insurer's challenge.

(d)  Within 60 days after the submission by an insurer of a risk-based capital plan to the department, the department shall notify the insurer whether the risk-based capital plan must be implemented or is, in the judgment of the department, unsatisfactory. If the department determines that the risk-based capital plan is unsatisfactory, the notification to the insurer must set forth the reasons for the determination and may set forth proposed revisions. Upon notification from the department, the insurer shall prepare a revised risk-based capital plan, which may incorporate by reference any revisions proposed by the department, and shall submit the revised risk-based capital plan to the department:

1.  Within 45 days after the notification from the department; or

2.  If the insurer challenges the notification from the department under subsection (7), within 45 days after a notification to the insurer that the department has, after a hearing, rejected the insurer's challenge.

(e)  If the department notifies an insurer that the insurer's risk-based capital plan or revised risk-based capital plan is unsatisfactory, the department may, at its discretion and subject to the insurer's right to a hearing under subsection (7), specify in the notification that the notification is a regulatory action level event.

(f)  Each domestic insurer that files a risk-based capital plan or a revised risk-based capital plan with the department shall file a copy of the risk-based capital plan or the revised risk-based capital plan with the insurance department in any other state in which the insurer is authorized to do business if:

1.  That state has a risk-based capital law that is substantially similar to paragraph (8)(a); and

2.  The insurance department of that state has notified the insurer of its request for the filing in writing, in which case the insurer shall file a copy of the risk-based capital plan or the revised risk-based capital plan in that state no later than the later of:

a.  Fifteen days after the receipt of notice to file a copy of its risk-based capital plan or revised risk-based capital plan with the state; or

b.  The date on which the risk-based capital plan or the revised risk-based capital plan is filed under paragraph (c) or paragraph (d).

(4)(a)  A regulatory action level event includes:

1.  The filing of a risk-based capital report by the insurer which indicates that the insurer's total adjusted capital is greater than or equal to its authorized control level risk-based capital but is less than its regulatory action level risk-based capital;

2.  The notification by the department to the insurer of an adjusted risk-based capital report that indicates the event described in subparagraph 1., unless the insurer challenges the adjusted risk-based capital report under subsection (7);

3.  If, under subsection (7), the insurer challenges an adjusted risk-based capital report that indicates the event described in subparagraph 1., the notification by the department to the insurer that the department has, after a hearing, rejected the insurer's challenge;

4.  The failure of the insurer to file a risk-based capital report by the filing date, unless the insurer provides an explanation for such failure which is satisfactory to the department and cures the failure within 10 days after the filing date;

5.  The failure of the insurer to submit a risk-based capital plan to the department within the time period set forth in paragraph (3)(c);

6.  Notification by the department to the insurer that:

a.  The risk-based capital plan or the revised risk-based capital plan submitted by the insurer is, in the judgment of the department, unsatisfactory; and

b.  This notification constitutes a regulatory action level event with respect to the insurer, unless the insurer challenges the determination under subsection (7);

7.  If, under subsection (7), the insurer challenges a determination by the department under subparagraph 6., the notification by the department to the insurer that the department has, after a hearing, rejected the challenge;

8.  Notification by the department to the insurer that the insurer has failed to adhere to its risk-based capital plan or revised risk-based capital plan, but only if this failure has a substantial adverse effect on the ability of the insurer to eliminate the company action level event in accordance with its risk-based capital plan or revised risk-based capital plan and the department has so stated in the notification, unless the insurer challenges the determination under subsection (7); or

9.  If, under subsection (7), the insurer challenges a determination by the department under subparagraph 8., the notification by the department to the insurer that the department has, after a hearing, rejected the challenge.

(b)  If a regulatory action level event occurs, the department shall:

1.  Require the insurer to prepare and submit a risk-based capital plan or, if applicable, a revised risk-based capital plan;

2.  Perform an examination pursuant to s. 624.316 or an analysis, as the department considers necessary, of the assets, liabilities, and operations of the insurer, including a review of the risk-based capital plan or the revised risk-based capital plan; and

3.  After the examination or analysis, issue a corrective order specifying such corrective actions as the department determines are required.

(c)  In determining corrective actions, the department shall consider any factor relevant to the insurer based upon the department's examination or analysis of the assets, liabilities, and operations of the insurer, including, but not limited to, the results of any sensitivity tests undertaken as provided in the risk-based capital instructions. The risk-based capital plan or the revised risk-based capital plan must be submitted:

1.  Within 45 days after the occurrence of the regulatory action level event;

2.  If the insurer challenges an adjusted risk-based capital report under subsection (7), within 45 days after the notification to the insurer that the department has, after a hearing, rejected the insurer's challenge; or

3.  If the insurer challenges a revised risk-based capital plan under subsection (7), within 45 days after the notification to the insurer that the department has, after a hearing, rejected the insurer's challenge.

(d)  The department may retain actuaries, investment experts, and other consultants to review an insurer's risk-based capital plan or revised risk-based capital plan, examine or analyze the assets, liabilities, and operations of an insurer, and formulate the corrective order with respect to the insurer. The fees, costs, and expenses relating to consultants must be borne by the affected insurer or by any other party as directed by the department.

(5)(a)  An authorized control level event includes:

1.  The filing of a risk-based capital report by the insurer which indicates that the insurer's total adjusted capital is greater than or equal to its mandatory control level risk-based capital but is less than its authorized control level risk-based capital;

2.  The notification by the department to the insurer of an adjusted risk-based capital report that indicates the event in subparagraph 1., unless the insurer challenges the adjusted risk-based capital report under subsection (7);

3.  If, under subsection (7), the insurer challenges an adjusted risk-based capital report that indicates the event in subparagraph 1., notification by the department to the insurer that the department has, after a hearing, rejected the insurer's challenge;

4.  The failure of the insurer to respond, in a manner satisfactory to the department, to a corrective order, unless the insurer challenges the corrective order under subsection (7); or

5.  If the insurer challenges a corrective order under subsection (7) and the department has, after a hearing, rejected the challenge or modified the corrective order, the failure of the insurer to respond, in a manner satisfactory to the department, to the corrective order after rejection or modification by the department.

(b)  If an authorized control level event occurs, the department shall:

1.  Take any action required under subsection (4) regarding the insurer with respect to which a regulatory action level event has occurred; or

2.  If the department considers it to be in the best interests of the policyholders and creditors of the insurer and of the public, take any action as necessary to cause the insurer to be placed under regulatory control under chapter 631. An authorized control level event is sufficient ground for the department to be appointed as receiver as provided in chapter 631.

(6)(a)  A mandatory control level event includes:

1.  The filing of a risk-based capital report that indicates that the insurer's total adjusted capital is less than its mandatory control level risk-based capital;

2.  Notification by the department to the insurer of an adjusted risk-based capital report that indicates the event in subparagraph 1., unless the insurer challenges the adjusted risk-based capital report under subsection (7); or

3.  If, under subsection (7), the insurer challenges an adjusted risk-based capital report that indicates the event in subparagraph 1., notification by the department to the insurer that the department has, after a hearing, rejected the insurer's challenge.

(b)  If a mandatory control level event occurs:

1.  With respect to a life and health insurer, the department shall, after due consideration of s. 624.408, take any action necessary to place the insurer under regulatory control, including any remedy available under chapter 631. A mandatory control level event is sufficient ground for the department to be appointed as receiver as provided in chapter 631. The department may forego taking action for up to 90 days after the mandatory control level event if the department finds there is a reasonable expectation that the mandatory control level event may be eliminated within the 90-day period.

2.  With respect to a property and casualty insurer, the department shall, after due consideration of s. 624.408, take any action necessary to place the insurer under regulatory control, including any remedy available under chapter 631, or, in the case of an insurer that is not writing new business, may allow the insurer to continue to operate under the supervision of the department. In either case, the mandatory control level event is sufficient ground for the department to be appointed as receiver as provided in chapter 631. The department may forego taking action for up to 90 days after the mandatory control level event if the department finds there is a reasonable expectation that the mandatory control level event will be eliminated within the 90-day period.

(7)(a)  An insurer has a right to a hearing before the department upon:

1.  Notification to an insurer by the department of an adjusted risk-based capital report;

2.  Notification to an insurer by the department that the insurer's risk-based capital plan or revised risk-based capital plan is unsatisfactory, and that the notification constitutes a regulatory action level event with respect to such insurer;

3.  Notification to any insurer by the department that the insurer has failed to adhere to its risk-based capital plan or revised risk-based capital plan and that the failure has a substantial adverse effect on the ability of the insurer to eliminate the company action level event in accordance with its risk-based capital plan or its revised risk-based capital plan; or

4.  Notification to an insurer by the department of a corrective order with respect to the insurer.

(b)  At such hearing the insurer may challenge any determination or action by the department. The insurer shall notify the department of its request for a hearing within 5 days after receipt of the notification by the department under this subsection. Upon receipt of the request for a hearing, the department shall set a date for the hearing, which date must be no fewer than 10 nor more than 30 days after the date the department receives the insurer's request. The hearing must be conducted as provided in s. 624.324, with the right to appellate review under s. 120.68.

(8)(a)  Any foreign insurer shall, upon the written request of the department, submit to the department a risk-based capital report, as of the end of the calendar year just ended, no later than the later of:

1.  The date a risk-based capital report is required to be filed by a domestic insurer under this section; or

2.  Fifteen days after the request is received by the foreign insurer.

(b)  Any foreign insurer shall, upon the written request of the department, promptly submit to the department a copy of any risk-based capital plan that is filed with the insurance department of another state.

(c)  The department may require a foreign insurer to file a risk-based capital plan if:

1.  A company action level event, regulatory action level event, or authorized control level event occurs with respect to any foreign insurer as determined under the risk-based capital law of the state of domicile of the insurer, or, if there is no risk-based capital law in that state, under this section.

2.  The insurance department of the state of domicile of the foreign insurer fails to require the foreign insurer to file a risk-based capital plan in the manner specified under the risk-based capital law of that state, or, if there is no risk-based capital law in that state, under subsection (3).

The failure of the foreign insurer to file a risk-based capital plan with the department when required under this paragraph is a ground for the department to take any action under s. 624.418 which it determines is necessary.

(d)  If a mandatory control level event occurs with respect to any foreign insurer and a domiciliary receiver has not been appointed with respect to the foreign insurer under the rehabilitation and liquidation law of the state of domicile of the foreign insurer, the department may apply to the Circuit Court of Leon County and such event constitutes grounds for the department to be appointed as receiver as provided in chapter 631 with respect to the liquidation of property of foreign insurers found in this state. The occurrence of a mandatory control level event is a ground for such application.

(9)  There shall be no liability on the part of, and no cause of action shall arise against, the commissioner, the department, or its employees or agents for any action taken by them in the performance of their powers and duties under this section.

(10)  The department shall transmit any notice that may result in regulatory action by registered mail, certified mail, or any other method of transmission. Notice is effective when the insurer receives it.

(11)  For the purposes of the risk-based capital reports required to be filed by life and health insurers with respect to their 1997 annual statement data and the risk-based capital reports required to be filed by property and casualty insurers with respect to their 1997 annual statement data, the following requirements apply in lieu of the provisions of subsections (3), (4), (5), and (6):

(a)  If a company action level event occurs with respect to a domestic insurer, the department may not take any regulatory action.

(b)  If a regulatory action level event occurs under subparagraph (4)(a)1., 2., or 3., the department shall take the actions required under subsection (3).

(c)  If a regulatory action level event occurs under subparagraph (4)(a)4., 5., 6., 7., 8., or 9., or an authorized control level event occurs, the department shall take the actions required under subsection (4).

(d)  If a mandatory control level event occurs with respect to an insurer, the department shall take the actions required under subsection (5).

(12)  This section is supplemental to the other laws of this state and does not preclude or limit any power or duty of the department under those laws or under the rules adopted under those laws.

(13)  This section does not apply to a domestic property and casualty insurer that meets all of the following conditions:

(a)  Writes direct business only in this state;

(b)  Writes direct annual premiums of $2 million or less; and

(c)  Assumes no reinsurance in excess of 5 percent of direct premiums written.

(14)  The department may adopt rules to administer this section, including, but not limited to, those regarding risk-based capital reports, adjusted risk-based capital reports, risk-based capital plans, corrective orders and procedures to be followed in the event of a triggering of a company action level event, a regulatory action level event, an authorized control level event, or a mandatory control level event.

History.--s. 3, ch. 97-292.

624.40851  Confidentiality of risk-based capital information.--

(1)  The initial risk-based capital report made, furnished, or filed with the Department of Insurance, any risk-based capital plan, revised risk-based capital plan, adjusted risk-based capital report, and working papers and reports of examination or analysis of an insurer performed pursuant to a plan or corrective order, or regulatory action level, subsequently filed at the request of the department, with respect to any domestic insurer or foreign insurer, and transcripts of hearings conducted pursuant to this section, are confidential and exempt from s. 119.07(1) and s. 24(a), Art. I of the State Constitution.

(2)  Proceedings and hearings conducted pursuant to ¹section 1 of SB 620, section 1 of HB 1943, or section 1 of SB 898 relating to the department's actions regarding any insurer's risk-based capital plan, revised risk-based capital plan, risk-based capital report or adjusted risk-based capital report, are exempt from the provisions of s. 286.011 and s. 24(b), Art. I of the State Constitution, except as otherwise provided in this section. All portions of such hearings or proceedings shall be recorded by a court reporter. The Department of Insurance shall open such proceedings or hearings or provide a copy of the transcript of such hearings or proceedings, or disclose the contents of notices, correspondence, reports, records, or other information to a department, agency, or instrumentality of this or another state or of the United States if the department determines the disclosure is necessary or proper for the enforcement of the laws of the United States or of this or another state.

(3)  This section does not apply to proceedings, hearings, notices, correspondence, reports, records, or other information obtained upon the appointment of a receiver for the insurer by a court of competent jurisdiction.

(4)  The exemptions provided by this section shall terminate:

(a)  One year following the conclusion of any risk-based capital plan or revised risk-based capital plan; or

(b)  On the date of entry of an order of seizure, rehabilitation, or liquidation pursuant to chapter 631.

(5)  This section is subject to the Open Government Sunset Review Act of 1995 in accordance with s. 119.15 and shall stand repealed on October 2, 2002, unless reviewed and saved from repeal through reenactment by the Legislature.

History.--s. 1, ch. 97-293.

¹Note.--Senate Bills 620 and 898 and House Bill 1943 did not become law during the 1997 legislative session; however, Senate Bill 840 (ch. 97-292) relating to the same subject did become law.

624.4095  Premiums written; restrictions.--

(1)  Whenever an insurer's ratio of actual or projected annual written premiums as adjusted in accordance with subsection (4) to current or projected surplus as to policyholders as adjusted in accordance with ¹subsection (5) exceeds 10 to 1 for gross written premiums or exceeds 4 to 1 for net written premiums, the department shall suspend the insurer's certificate of authority or establish by order maximum gross or net annual premiums to be written by the insurer consistent with maintaining the ratios specified herein unless the insurer demonstrates to the department's satisfaction that exceeding the ratios of this section does not endanger the financial condition of the insurer or endanger the interests of the insurer's policyholders.

(2)  Projected annual net or gross premiums shall be based on the actual writings to date for the insurer's current calendar year or the insurer's writings for the previous calendar year or both. Ratios shall be computed on an annualized basis.

(3)  For the purposes of this section, gross premiums written means direct premiums written and reinsurance assumed.

(4)  For the purposes of this section, for the calendar year ending December 31, 1990, and each subsequent year, premiums shall be calculated as the product of the actual or projected premiums and the following:

(a)  For property insurance, 0.90.

(b)  For casualty insurance, 1.25.

(c)  For health insurance, 0.80.

(d)  For all other kinds of insurance, 1.00.

(5)  This section shall not apply to:

(a)  Life insurance written by life or life and health insurers; or

(b)  Life and health insurers which have a surplus as to policyholders greater than $40 million and which have written health insurance during each of the immediately preceding five calendar years.

(6)  For the purposes of this section, surplus as to policyholders for life and health insurers shall be calculated as follows: (actual or projected surplus as to policyholders) minus (surplus as to policyholders required to be maintained under s. 624.408 for liabilities relating to life insurance).

History.--s. 4, ch. 85-245; s. 1, ch. 86-286; s. 27, ch. 89-360; ss. 187, 188, ch. 91-108; s. 4, ch. 91-429.

¹Note.--Subsection (6) relates to calculation of surplus as to policyholders.

624.410  Permissible insuring combinations without additional capital funds.--A property insurer may include such amount and kind of insurance against legal liability for injury, damage, or loss to the person or property of others, and for medical, hospital, and surgical expense related to such injury, as the department deems to be reasonably incidental to insurance of real property against fire and other perils under policies covering residential properties involving not more than four families, with or without incidental office, professional, private school or studio occupancy by an insured, whether or not the premium or rate charged for certain perils so covered is specified in the policy. Any provision of s. 624.609 to the contrary notwithstanding, no insurer authorized as to property insurance only shall, pursuant to this subsection, retain risk as to any one subject of insurance as to hazards other than property insurance hazards, in an amount exceeding 5 percent of its surplus as to policyholders.

History.--s. 54, ch. 59-205; ss. 13, 35, ch. 69-106; s. 3, ch. 76-168; s. 1, ch. 77-457; ss. 2, 3, ch. 81-318; ss. 46, 64, 809(1st), ch. 82-243; s. 28, ch. 89-360; ss. 187, 188, ch. 91-108; s. 4, ch. 91-429.

624.411  Deposit requirement; domestic insurers and foreign insurers.--

(1)  As to domestic insurers, the department shall not issue or permit to exist a certificate of authority unless such insurer has deposited and maintains deposited in trust for the protection of the insurer's policyholders or its policyholders and creditors with the department securities eligible for such deposit under s. 625.52, having at all times a value of not less than as follows:

(a)  To transact casualty insurance, $250,000.

(b)  To transact all other kinds of insurance, $100,000 per kind of insurance.

(c)  A domestic insurer authorized to transact more than one kind of insurance shall not be required to deposit more than $300,000 under this subsection.

(2)  As to foreign insurers, the department, upon issuing or permitting to exist a certificate of authority, may require for good cause a deposit and maintenance of the deposit in trust for the protection of the insured's policyholders or its policyholders and creditors with the department securities eligible for such deposit under s. 625.52, having at all times a value of not less than as follows:

(a)  To transact casualty insurance, $150,000.

(b)  To transact all other kinds of insurance, $100,000 per kind of insurance.

(c)  A foreign insurer authorized to transact more than one kind of insurance in this state shall not be required to deposit more than $200,000 under this subsection.

(d)  A foreign insurer with surplus as to policyholders of more than $10 million according to its latest annual statement shall not be required to make a deposit under this subsection.

(3)  Whenever the department determines that the financial condition of an insurer has deteriorated or that the policyholders' best interests are not being preserved by the activities of an insurer, the department may require such insurer to deposit and maintain deposited in trust with the department for the protection of the insurer's policyholders or its policyholders and creditors, for such time as the department deems necessary, securities eligible for such deposit under s. 625.52, having a market value of not less than the amount which the department determines is necessary, which amount shall be not less than $100,000, or more than 25 percent of the insurer's obligations in this state, as determined from the latest annual financial statement of the insured. The deposit required under this subsection shall not exceed $2 million and is in addition to any other deposits required of an insurer pursuant to subsections (1) and (2) or any other provisions of the Florida Insurance Code.

(4)  All such deposits in this state are subject to the applicable provisions of part III of chapter 625.

History.--s. 55, ch. 59-205; s. 1, ch. 61-166; s. 1, ch. 63-19; ss. 13, 35, ch. 69-106; s. 1, ch. 71-89; s. 3, ch. 76-168; s. 1, ch. 77-457; s. 16, ch. 77-468; ss. 2, 3, ch. 81-318; ss. 47, 64, 809(1st), ch. 82-243; s. 5, ch. 85-245; s. 10, ch. 87-226; s. 29, ch. 89-360; s. 9, ch. 90-249; s. 13, ch. 90-366; ss. 187, 188, ch. 91-108; s. 4, ch. 91-429.

624.412  Deposit of alien insurers.--

(1)  An alien insurer shall not have authority to transact insurance in this state unless it has and maintains within the United States as trust deposits with public officials having supervision over insurers, or with trustees, public depositories, or trust institutions approved by the department, assets available for discharge of its United States insurance obligations, which assets shall be in amount not less than the outstanding reserves and other liabilities of the insurer arising out of its insurance transactions in the United States together with the amount of surplus as to policyholders required by s. 624.408 of a domestic stock insurer transacting like kinds of insurance.

(2)  Any such deposit made in this state shall be held for the protection of the insurer's policyholders or policyholders and creditors in the United States and shall be subject to the applicable provisions of part III of chapter 625 and chapter 630.

History.--s. 56, ch. 59-205; ss. 13, 35, ch. 69-106; s. 3, ch. 76-168; s. 1, ch. 77-457; ss. 2, 3, ch. 81-318; ss. 48, 64, 809(1st), ch. 82-243; ss. 17, 187, 188, ch. 91-108; s. 4, ch. 91-429; s. 80, ch. 98-199.

624.413  Application for certificate of authority.--

(1)  To apply for a certificate of authority, an insurer shall file its application therefor with the department, upon a form furnished by it, showing its name; location of its home office and, if an alien insurer, its principal office in the United States; kinds of insurance to be transacted; state or country of domicile; and such additional information as the department may reasonably require, together with the following documents:

(a)  One copy of its corporate charter, articles of incorporation, existing and proposed nonfacultative reinsurance contracts, declaration of trust, or other charter documents, with all amendments thereto, certified by the public official with whom the originals are on file in the state or country of domicile.

(b)  If a mutual insurer, a copy of its bylaws, as amended, certified by its secretary or other officer having custody thereof.

(c)  If a foreign or alien reciprocal insurer, a copy of the power of attorney of its attorney in fact and of its subscribers' agreement, if any, certified by the attorney in fact; and, if a domestic reciprocal insurer, the declaration provided for in s. 629.081.

(d)  A copy of its financial statement as of December 31 next preceding, containing information generally included in insurer financial statements prepared in accordance with generally accepted insurance accounting principles and practices and in a form generally utilized by insurers for financial statements, sworn to by at least two executive officers of the insurer, or certified by the public official having supervision of insurance in the insurer's state of domicile or of entry into the United States. To facilitate uniformity in financial statements, the department may by rule adopt the form for financial statements approved by the National Association of Insurance Commissioners in 1990, and may adopt subsequent amendments thereto if the form remains substantially consistent.

(e)  Supplemental quarterly financial statements for each calendar quarter since the beginning of the year of its application for the certificate of authority, sworn to by at least two of its executive officers. To facilitate uniformity in financial statements, the department may by rule adopt the form for quarterly financial statements approved by the National Association of Insurance Commissioners in 1990, and may adopt subsequent amendments thereto if the form remains substantially consistent.

(f)  If a foreign or alien insurer, a copy of the report of the most recent examination of the insurer certified by the public official having supervision of insurance in its state of domicile or of entry into the United States. The end of the most recent year covered by the examination must be within the 3-year period preceding the date of application. In lieu of the certified examination report, the department may accept an audited certified public accountant's report prepared on a basis consistent with the insurance laws of the insurer's state of domicile, certified by the public official having supervision of insurance in its state of domicile or of entry into the United States.

(g)  If a foreign or alien insurer, a certificate of compliance from the public official having supervision of insurance in its state or country of domicile showing that it is duly organized and authorized to transact insurance therein and the kinds of insurance it is so authorized to transact.

(h)  If a foreign or alien insurer, a certificate of the public official having custody of any deposit maintained by the insurer in another state in lieu of a deposit or part thereof required in this state under s. 624.411 or s. 624.412, showing the amount of such deposit and the assets or securities of which comprised.

(i)  If a life insurer, a certificate of valuation.

(j)  If an alien insurer, a copy of the appointment and authority of its United States manager, certified by its officer having custody of its records.

(2)  The application shall be accompanied by the applicable fees and license tax as specified in s. 624.501.

History.--s. 57, ch. 59-205; ss. 13, 35, ch. 69-106; s. 3, ch. 76-168; s. 1, ch. 77-457; ss. 2, 3, ch. 81-318; ss. 49, 64, 809(1st), ch. 82-243; s. 6, ch. 85-245; s. 30, ch. 89-360; ss. 18, 187, 188, ch. 91-108; s. 4, ch. 91-429.

624.414  Issuance or refusal of authority.--The fee for filing application for a certificate of authority shall not be subject to refund. The department shall issue to the applicant insurer a proper certificate of authority if it finds that the insurer has met the requirements of this code, exclusive of the requirements relative to the filing and approval of an insurer's policy forms, riders, endorsements, applications, and rates. If it does not so find, the department shall issue its order refusing the certificate. The certificate, if issued, shall specify the kind or kinds and line or lines of insurance the insurer is authorized to transact in this state. The issuance of a certificate of authority does not signify that an insurer has met the requirements of this code relative to the filing and approval of an insurer's policy forms, riders, endorsements, applications, and rates which may be required prior to an insurer actually writing any premiums.

History.--s. 58, ch. 59-205; s. 1, ch. 65-242; ss. 13, 35, ch. 69-106; s. 3, ch. 76-168; s. 1, ch. 77-457; s. 21, ch. 78-95; ss. 2, 3, ch. 81-318; ss. 50, 64, 809(1st), ch. 82-243; s. 31, ch. 89-360; ss. 187, 188, ch. 91-108; s. 4, ch. 91-429.

624.415  Ownership of certificate of authority; return.--Although issued to the insurer, the certificate of authority is at all times the property of this state. Upon any expiration, suspension, or termination thereof, the insurer shall promptly deliver the certificate of authority to the department.

History.--s. 59, ch. 59-205; ss. 13, 35, ch. 69-106; s. 3, ch. 76-168; s. 1, ch. 77-457; ss. 2, 3, ch. 81-318; ss. 64, 809(1st), ch. 82-243; ss. 187, 188, ch. 91-108; s. 4, ch. 91-429.

624.416  Continuance, expiration, reinstatement, and amendment of certificate of authority.--

(1)  A certificate of authority issued under this code shall continue in force as long as the insurer is entitled thereto under this code and until suspended, revoked, or terminated at the request of the insurer; subject, however, to continuance of the certificate by the insurer each year by:

(a)  Payment prior to June 1 of the annual license tax provided for in s. 624.501(3);

(b)  Due filing by the insurer of its annual statement for the calendar year preceding as required under s. 624.424; and

(c)  Payment by the insurer of applicable taxes with respect to the preceding calendar year as required under this code.

(2)  If not so continued by the insurer, its certificate of authority shall expire at midnight on the May 31 next following such failure of the insurer so to continue it in force. The department shall promptly notify the insurer of the occurrence of any failure resulting in impending expiration of its certificate of authority.

(3)  The department may, in its discretion, reinstate a certificate of authority which the insurer has inadvertently permitted to expire, after the insurer has fully cured all its failures which resulted in the expiration, and upon payment by the insurer of the fee for reinstatement, in the amount provided in s. 624.501(1)(b). Otherwise, the insurer shall be granted another certificate of authority only after filing application therefor and meeting all other requirements as for an original certificate of authority in this state.

(4)  The department may amend a certificate of authority at any time to accord with changes in the insurer's charter or insuring powers.

History.--s. 60, ch. 59-205; s. 1, ch. 63-149; ss. 13, 35, ch. 69-106; s. 3, ch. 76-168; s. 1, ch. 77-457; ss. 2, 3, ch. 81-318; ss. 51, 64, 809(1st), ch. 82-243; ss. 19, 187, 188, ch. 91-108; s. 4, ch. 91-429.

624.418  Suspension, revocation of certificate of authority for violations and special grounds.--

(1)  The department shall suspend or revoke an insurer's certificate of authority if it finds that the insurer:

(a)  Is in unsound financial condition.

(b)  Is using such methods and practices in the conduct of its business as to render its further transaction of insurance in this state hazardous or injurious to its policyholders or to the public.

(c)  Has failed to pay any final judgment rendered against it in this state within 60 days after the judgment became final.

(d)  No longer meets the requirements for the authority originally granted.

(2)  The department may, in its discretion, suspend or revoke the certificate of authority of an insurer if it finds that the insurer:

(a)  Has violated any lawful order or rule of the department or any provision of this code.

(b)  Has refused to be examined or to produce its accounts, records, and files for examination, or if any of its officers have refused to give information with respect to its affairs or to perform any other legal obligation as to such examination, when required by the department.

(c)  Has for any line, class, or combination thereof, with such frequency as to indicate its general business practice in this state, without just cause refused to pay proper claims arising under its policies, whether any such claim is in favor of an insured or is in favor of a third person with respect to the liability of an insured to such third person, or without just cause compels such insureds or claimants to accept less than the amount due them or to employ attorneys or to bring suit against the insurer or such an insured to secure full payment or settlement of such claims.

(d)  Is affiliated with and under the same general management or interlocking directorate or ownership as another insurer which transacts direct insurance in this state without having a certificate of authority therefor, except as permitted as to surplus lines insurers under part VIII of chapter 626.

(e)  Has been convicted of, or entered a plea of guilty or nolo contendere to, a felony relating to the transaction of insurance, in this state or in any other state, without regard to whether adjudication was withheld.

(f)  Has a ratio of net premiums written to surplus as to policyholders that exceeds 4 to 1, and the department has reason to believe that the financial condition of the insurer endangers the interests of the policyholders. The ratio of net premiums written to surplus as to policyholders shall be on an annualized actual or projected basis. The ratio shall be based on the insurer's current calendar year activities and experience to date or the insurer's previous calendar year activities and experience, or both, and shall be calculated to represent a 12-month period. However, the provisions of this paragraph do not apply to any insurance or insurer exempted from s. 624.4095.

(g)  Is under suspension or revocation in another state.

(3)  The insolvency or impairment of an insurer constitutes an immediate serious danger to the public health, safety, or welfare; and the department may, at its discretion, without prior notice and the opportunity for hearing immediately suspend the certificate of authority of an insurer upon a determination that:

(a)  The insurer is impaired or insolvent; or

(b)  Receivership, conservatorship, rehabilitation, or other delinquency proceedings have been initiated against the insurer by the public insurance supervisory official of any state.

History.--s. 62, ch. 59-205; ss. 13, 35, ch. 69-106; s. 1, ch. 71-320; s. 3, ch. 76-168; s. 1, ch. 77-457; s. 17, ch. 77-468; s. 21, ch. 78-95; ss. 2, 3, ch. 81-318; ss. 53, 64, 809(1st), ch. 82-243; s. 7, ch. 85-245; s. 11, ch. 87-226; s. 2, ch. 90-119; ss. 187, 188, ch. 91-108; s. 4, ch. 91-429.

624.420  Order, notice of suspension or revocation of certificate of authority; effect; publication.--

(1)  Suspension or revocation of an insurer's certificate of authority shall be by the order of the department. The department shall promptly also give notice of such suspension or revocation to the insurer's agents in this state of record in the office of the department. The insurer shall not solicit or write any new coverages in this state during the period of any such suspension and may renew coverages only upon a finding by the department that the insurer is capable of servicing the renewal coverage. The insurer shall not solicit or write any new or renewal coverages after any such revocation.

(2)  In its discretion, the department may cause notice of any such suspension or revocation to be published in one or more newspapers of general circulation published in this state.

History.--s. 64, ch. 59-205; ss. 13, 35, ch. 69-106; s. 3, ch. 76-168; s. 1, ch. 77-457; s. 21, ch. 78-95; ss. 2, 3, ch. 81-318; ss. 64, 809(1st), ch. 82-243; s. 32, ch. 89-360; ss. 187, 188, ch. 91-108; s. 4, ch. 91-429.

624.421  Duration of suspension; insurer's obligations during suspension period; reinstatement.--

(1)  Suspension of an insurer's certificate of authority shall be for:

(a)  A fixed period of time not to exceed 2 years; or

(b)  Until the occurrence of a specific event necessary for remedying the reasons for suspension.

Such suspension may be modified, rescinded, or reversed.

(2)  During the period of suspension, the insurer shall file with the department all documents and information and pay all license fees and taxes as required under this code as if the certificate had continued in full force.

(3)  If the suspension of the certificate of authority is for a fixed period of time and the certificate of authority has not been otherwise terminated, upon expiration of the suspension period the insurer's certificate of authority shall be reinstated unless the department finds that the insurer is not in compliance with the requirements of this code. The department shall promptly notify the insurer of such reinstatement, and the insurer shall not consider its certificate of authority reinstated until so notified by the department. If not reinstated, the certificate of authority shall be deemed to have expired as of the end of the suspension period or upon failure of the insurer to continue the certificate during the suspension period in accordance with subsection (2), whichever event first occurs.

(4)  If the suspension of the certificate of authority was until the occurrence of a specific event or events and the certificate of authority has not been otherwise terminated, upon the presentation of evidence satisfactory to the department that the specific event or events have occurred, the insurer's certificate of authority shall be reinstated unless the department finds that the insurer is otherwise not in compliance with the requirements of this code. The department shall promptly notify the insurer of such reinstatement, and the insurer shall not consider its certificate of authority reinstated until so notified by the department. If satisfactory evidence as to the occurrence of the specific event or events has not been presented to the department within 2 years of the date of such suspension, the certificate of authority shall be deemed to have expired as of 2 years from the date of suspension or upon failure of the insurer to continue the certificate during the suspension period in accordance with subsection (2), whichever first occurs.

(5)  Upon reinstatement of the insurer's certificate of authority, the authority of its agents in this state to represent the insurer shall likewise reinstate. The department shall promptly notify the insurer of such reinstatement.

History.--s. 65, ch. 59-205; ss. 13, 35, ch. 69-106; s. 3, ch. 76-168; s. 1, ch. 77-457; s. 21, ch. 78-95; ss. 2, 3, ch. 81-318; ss. 54, 64, 809(1st), ch. 82-243; s. 33, ch. 89-360; ss. 187, 188, ch. 91-108; s. 4, ch. 91-429.

624.4211  Administrative fine in lieu of suspension or revocation.--

(1)  If the department finds that one or more grounds exist for the discretionary revocation or suspension of a certificate of authority issued under this chapter, the department may, in lieu of such revocation or suspension, impose a fine upon the insurer.

(2)  With respect to any nonwillful violation, such fine shall not exceed $2,500 per violation. In no event shall such fine exceed an aggregate amount of $10,000 for all nonwillful violations arising out of the same action. When an insurer discovers a nonwillful violation, the insurer shall correct the violation and, if restitution is due, make restitution to all affected persons. Such restitution shall include interest at 12 percent per year from either the date of the violation or the date of inception of the affected person's policy, at the insurer's option. The restitution may be a credit against future premiums due provided that the interest shall accumulate until the premiums are due. If the amount of restitution due to any person is $50 or more and the insurer wishes to credit it against future premiums, it shall notify such person that she or he may receive a check instead of a credit. If the credit is on a policy which is not renewed, the insurer shall pay the restitution to the person to whom it is due.

(3)  With respect to any knowing and willful violation of a lawful order or rule of the department or a provision of this code, the department may impose a fine upon the insurer in an amount not to exceed $20,000 for each such violation. In no event shall such fine exceed an aggregate amount of $100,000 for all knowing and willful violations arising out of the same action. In addition to such fines, such insurer shall make restitution when due in accordance with the provisions of subsection (2).

(4)  The failure of an insurer to make restitution when due as required under this section constitutes a willful violation of this code. However, if an insurer in good faith is uncertain as to whether any restitution is due or as to the amount of such restitution, it shall promptly notify the department of the circumstances; and the failure to make restitution pending a determination thereof shall not constitute a violation of this code.

History.--s. 1, ch. 72-248; s. 3, ch. 76-168; s. 1, ch. 77-457; s. 21, ch. 78-95; ss. 2, 3, ch. 81-318; ss. 55, 64, 809(1st), ch. 82-243; ss. 187, 188, ch. 91-108; s. 4, ch. 91-429; s. 183, ch. 97-102.

624.422  Service of process; appointment of Insurance Commissioner and Treasurer as process agent.--

(1)  Each licensed insurer, whether domestic, foreign, or alien, shall be deemed to have appointed the Insurance Commissioner and Treasurer and her or his successors in office as its attorney to receive service of all legal process issued against it in any civil action or proceeding in this state; and process so served shall be valid and binding upon the insurer.

(2)  Prior to its authorization to transact insurance in this state, each insurer shall file with the department designation of the name and address of the person to whom process against it served upon the Insurance Commissioner and Treasurer is to be forwarded. The insurer may change the designation at any time by a new filing.

(3)  Service of process upon the Insurance Commissioner and Treasurer as the insurer's attorney pursuant to such an appointment shall be the sole method of service of process upon an authorized domestic, foreign, or alien insurer in this state.

History.--s. 66, ch. 59-205; ss. 13, 35, ch. 69-106; s. 3, ch. 76-168; s. 1, ch. 77-457; ss. 2, 3, ch. 81-318; ss. 56, 64, 809(1st), ch. 82-243; ss. 187, 188, ch. 91-108; s. 4, ch. 91-429; s. 184, ch. 97-102.

624.423  Serving process.--

(1)  Service of process upon the Insurance Commissioner and Treasurer as process agent of the insurer (under s. 624.422) shall be made by serving copies in triplicate of the process upon the Insurance Commissioner and Treasurer or upon her or his assistant, deputy, or other person in charge of her or his office. Upon receiving such service, the Insurance Commissioner and Treasurer shall file one copy in her or his office, return one copy with her or his admission of service, and promptly forward one copy of the process by registered or certified mail to the person last designated by the insurer to receive the same, as provided under s. 624.422(2).

(2)  Where process is served upon the Insurance Commissioner and Treasurer as an insurer's process agent, the insurer shall not be required to answer or plead except within 20 days after the date upon which the Insurance Commissioner and Treasurer mailed a copy of the process served upon her or him as required by subsection (1).

(3)  Process served upon the Insurance Commissioner and Treasurer and copy thereof forwarded as in this section provided shall for all purposes constitute valid and binding service thereof upon the insurer.

History.--s. 67, ch. 59-205; ss. 13, 35, ch. 69-106; s. 3, ch. 76-168; s. 1, ch. 77-457; ss. 2, 3, ch. 81-318; ss. 64, 809(1st), ch. 82-243; ss. 187, 188, ch. 91-108; s. 4, ch. 91-429; s. 185, ch. 97-102.

624.424  Annual statement and other information.--

(1)(a)  Each authorized insurer shall file with the department full and true statements of its financial condition, transactions, and affairs. An annual statement covering the preceding calendar year shall be filed on or before March 1, and quarterly statements covering the periods ending on March 31, June 30, and September 30 shall be filed within 45 days after each such date. The department may, for good cause, grant an extension of time for filing of an annual or quarterly statement. The statements shall contain information generally included in insurers' financial statements prepared in accordance with generally accepted insurance accounting principles and practices and in a form generally utilized by insurers for financial statements, sworn to by at least two executive officers of the insurer or, if a reciprocal insurer, by the oath of the attorney in fact or its like officer if a corporation. To facilitate uniformity in financial statements and to facilitate department analysis, the department may by rule adopt the form for financial statements approved by the National Association of Insurance Commissioners in 1990, and may adopt subsequent amendments thereto if the methodology remains substantially consistent, and may by rule require each insurer to submit to the department or such organization as the department may designate all or part of the information contained in the financial statement in a computer-readable form compatible with the electronic data processing system specified by the department.

(b)  Each insurer's annual statement must contain a statement of opinion on loss and loss adjustment expense reserves made by a member of the American Academy of Actuaries or by a qualified loss reserve specialist, under criteria established by rule of the department. In adopting the rule, the department must consider any criteria established by the National Association of Insurance Commissioners. The department may require semiannual updates of the annual statement of opinion as to a particular insurer if the department has reasonable cause to believe that such reserves are understated to the extent of materially misstating the financial position of the insurer. Workpapers in support of the statement of opinion must be provided to the department upon request. This paragraph does not apply to life insurance or title insurance.

(c)  The department may by rule require reports or filings required under the insurance code to be submitted on a computer-diskette compatible with the electronic data processing equipment specified by the department.

(2)  The statement of an alien insurer shall be verified by the insurer's United States manager or other officer duly authorized. It shall be a separate statement, to be known as its general statement, of its transactions, assets, and affairs within the United States unless the department requires otherwise. If the department requires a statement as to the insurer's affairs elsewhere, the insurer shall file such statement with the department as soon as reasonably possible.

(3)  Each insurer having a deposit as required under s. 624.411 shall file with the department annually with its annual statement a certificate to the effect that the assets so deposited have a market value equal to or in excess of the amount of deposit so required.

(4)  At the time of filing, the insurer shall pay the fee for filing its annual statement in the amount specified in s. 624.501.

(5)  The department may refuse to continue, or may suspend or revoke, the certificate of authority of an insurer failing to file its annual or quarterly statements and accompanying certificates when due.

(6)  In addition to information called for and furnished in connection with its annual or quarterly statements, an insurer shall furnish to the department as soon as reasonably possible such information as to its transactions or affairs as the department may from time to time request in writing. All such information furnished pursuant to the department's request shall be verified by the oath of two executive officers of the insurer or, if a reciprocal insurer, by the oath of the attorney in fact or its like officers if a corporation.

(7)  The signatures of all such persons when written on annual or quarterly statements or other reports required by this section shall be presumed to have been so written by authority of the person whose signature is affixed thereon. The affixing of any signature by anyone other than the purported signer constitutes a felony of the second degree, punishable as provided in s. 775.082, s. 775.083, or s. 775.084.

(8)(a)  All authorized insurers must have conducted an annual audit by an independent certified public accountant and must file an audited financial report with the department on or before June 1 for the preceding year ending December 31. The department may require an insurer to file an audited financial report earlier than June 1 upon 90 days' advance notice to the insurer. The department may immediately suspend an insurer's certificate of authority by order if an insurer's failure to file required reports, financial statements, or information required by this subsection or rule adopted pursuant thereto creates a significant uncertainty as to the insurer's continuing eligibility for a certificate of authority.

(b)  Any authorized insurer otherwise subject to this section having direct premiums written in this state of less than $1 million in any calendar year and less than 1,000 policyholders or certificateholders of directly written policies nationwide at the end of such calendar year is exempt from this section for such year unless the department makes a specific finding that compliance is necessary in order for the department to carry out its statutory responsibilities. However, any insurer having assumed premiums pursuant to contracts or treaties or reinsurance of $1 million or more is not exempt. Any insurer subject to an exemption must submit by March 1 following the year to which the exemption applies an affidavit sworn to by a responsible officer of the insurer specifying the amount of direct premiums written in this state and number of policyholders or certificateholders.

(c)  The board of directors of an insurer shall hire the certified public accountant that prepares the audit required by this subsection and the board shall establish an audit committee of three or more directors of the insurer or an affiliated company. The audit committee shall be responsible for discussing audit findings and interacting with the certified public accountant with regard to her or his findings. The audit committee shall be comprised solely of members who are free from any relationship that, in the opinion of its board of directors, would interfere with the exercise of independent judgment as a committee member. The audit committee shall report to the board any findings of adverse financial conditions or significant deficiencies in internal controls that have been noted by the accountant. The insurer may request the department to waive this requirement of the audit committee membership based upon unusual hardship to the insurer.

(d)  An insurer may not use the same accountant or partner of an accounting firm responsible for preparing the report required by this subsection for more than 7 consecutive years. Following this period, the insurer may not use such accountant or partner for a period of 2 years, but may use another accountant or partner of the same firm. An insurer may request the department to waive this prohibition based upon an unusual hardship to the insurer and a determination that the accountant is exercising independent judgment that is not unduly influenced by the insurer considering such factors as the number of partners, expertise of the partners or the number of insurance clients of the accounting firm; the premium volume of the insurer; and the number of jurisdictions in which the insurer transacts business.

(e)  The department shall adopt rules to implement this subsection, which rules must be in substantial conformity with the 1990 Model Rule Requiring Annual Audited Financial Reports adopted by the National Association of Insurance Commissioners, except where inconsistent with the requirements of this subsection. Any exception to, waiver of, or interpretation of accounting requirements of the department must be in writing and signed by an authorized representative of the department. No insurer may raise as a defense in any action, any exception to, waiver of, or interpretation of accounting requirements, unless previously issued in writing by an authorized representative of the department.

(9)(a)  Each authorized insurer shall, pursuant to s. 409.910(20), provide records and information to the Agency for Health Care Administration to identify potential insurance coverage for claims filed with that agency and its fiscal agents for payment of medical services under the Medicaid program.

(b)  Each authorized insurer shall, pursuant to s. 409.2561(5)(c), notify the Medicaid agency of a cancellation or discontinuance of a policy within 30 days if the insurer received notification from the Medicaid agency to do so.

(c)  Any information provided by an insurer under this subsection does not violate any right of confidentiality or contract that the insurer may have with covered persons. The insurer is immune from any liability that it may otherwise incur through its release of such information to the Agency for Health Care Administration.

(10)  Each insurer or insurer group doing business in this state shall file on a quarterly basis in conjunction with financial reports required by paragraph (1)(a) a supplemental report on an individual and group basis on a form prescribed by the department with information on personal lines and commercial lines residential property insurance policies in this state. The supplemental report shall include separate information for personal lines property policies and for commercial lines property policies and totals for each item specified, including premiums written for each of the property lines of business as described in ss. 215.555(2)(c) and 627.351(6)(a). The report shall include the following information for each county on a monthly basis:

(a)  Total number of policies in force at the end of each month.

(b)  Total number of policies canceled.

(c)  Total number of policies nonrenewed.

(d)  Number of policies canceled due to hurricane risk.

(e)  Number of policies nonrenewed due to hurricane risk.

(f)  Number of new policies written.

(g)  Total dollar value of structure exposure under policies that include wind coverage.

(h)  Number of policies that exclude wind coverage.

History.--s. 68, ch. 59-205; ss. 13, 35, ch. 69-106; ss. 1, 2, ch. 70-56; s. 1, ch. 70-439; s. 3, ch. 76-168; s. 1, ch. 77-457; s. 18, ch. 77-468; ss. 2, 3, ch. 81-318; ss. 57, 64, 809(1st), ch. 82-243; s. 5, ch. 83-288; s. 8, ch. 85-245; s. 5, ch. 87-377; s. 9, ch. 89-183; s. 34, ch. 89-360; s. 3, ch. 90-119; s. 6, ch. 90-232; s. 35, ch. 90-295; ss. 20, 187, 188, ch. 91-108; s. 65, ch. 91-282; s. 4, ch. 91-429; s. 7, ch. 93-410; s. 81, ch. 95-211; s. 3, ch. 95-276; s. 186, ch. 97-102; s. 3, ch. 97-214; s. 6, ch. 97-292; s. 2, ch. 98-411; s. 258, ch. 99-8.

624.4241  NAIC filing requirements.--

(1)  Each domestic, foreign, and alien insurer who is authorized to transact insurance in this state shall file one extra copy of its annual statement convention blank, along with such additional filings as prescribed by the department for the preceding year. Such extra copy shall be for the explicit purpose of allowing the department to forward it to the National Association of Insurance Commissioners.

(2)  Coincident with the filing of the documents required in subsection (1), each insurer shall pay to the department a reasonable fee to cover the costs associated with the filing and analysis of the documents by the National Association of Insurance Commissioners and the department.

(3)  The provisions of this section shall not apply to any foreign, domestic, or alien insurer which has filed such documents directly with the National Association of Insurance Commissioners if the National Association of Insurance Commissioners has certified receipt of the required documents to the department.

History.--s. 9, ch. 85-245; s. 1, ch. 86-286; ss. 187, 188, ch. 91-108; s. 4, ch. 91-429.

624.4243  Reporting of premium growth.--

(1)  Each insurer that has been authorized to transact property and casualty insurance in this state for a continuous period of less than 3 years shall monthly calculate its premium growth as follows:

(a)  For the 12-month period ending on the last day of the previous month, obtain the amount of the insurer's direct and assumed written premiums for the United States and its territories.

(b)  For the 12-month period immediately preceding the 12-month period specified in paragraph (a), obtain the amount of the insurer's direct and assumed written premiums for the United States and its territories.

(c)  Subtract the amount of premiums calculated under paragraph (b) from the amount of premiums calculated under paragraph (a).

(d)  Divide the amount of premiums determined under paragraph (c) by the amount of premiums determined under paragraph (b).

(2)  Until an insurer has held a certificate of authority in this state for 24 months, the insurer shall, instead of making the calculations required under subsection (1), report to the department no later than the last day of each month the insurer's direct and assumed written premiums from the United States and its territories for the previous month.

(3)  If the amount of the premium growth calculated by an insurer under this section exceeds 33 percent, the insurer shall, within 30 days after the end of the 12-month period ending on the last day of the previous month, file with the department a statement of the premium growth calculations under this section. The department shall adopt rules specifying the form for the report. In response to a report under this section, the department may require the insurer to submit an explanation of the insurer's pattern of premium growth.

(4)  For the purposes of this section, direct and assumed written premiums shall be calculated in the same manner as for the preparation of the insurer's annual statement under s. 624.424.

History.--s. 8, ch. 93-410; s. 1, ch. 93-412.

624.4245  Change in controlling interest of foreign or alien insurer; report required.--In the event of a change in the controlling capital stock or a change of 50 percent or more of the assets of a foreign or alien insurer, such insurer shall report such change in writing to the department within 30 days of the effective date thereof. The report shall contain the name and address of the new owner or owners of the controlling stock or assets, the nature and value of the new assets, and such other relevant information as the department may reasonably require. For the purposes of this section, the term "controlling capital stock" means a sufficient number of shares of the issued and outstanding capital stock of such insurer or person so as to give the owner thereof power to exercise a controlling influence over the management or policies of such insurer or person.

History.--s. 1, ch. 70-323; s. 3, ch. 76-168; s. 1, ch. 77-457; ss. 2, 3, ch. 81-318; ss. 58, 64, 809(1st), ch. 82-243; ss. 187, 188, ch. 91-108; s. 4, ch. 91-429.

624.425  Resident agent and countersignature required, property, casualty, surety insurance.--

(1)  Except as stated in s. 624.426, no authorized property, casualty, or surety insurer shall assume direct liability as to a subject of insurance resident, located, or to be performed in this state unless the policy or contract of insurance is issued by or through, and is countersigned by, a local producing agent who is a resident of this state, regularly commissioned and licensed currently as an agent and appointed as an agent for the insurer under this code. If two or more authorized insurers issue a single policy of insurance against legal liability for loss or damage to person or property caused by the nuclear energy hazard, or a single policy insuring against loss or damage to property by radioactive contamination, whether or not also insuring against one or more other perils proper to insure against in this state, such policy if otherwise lawful may be countersigned on behalf of all of the insurers by a licensed and appointed resident agent of any insurer appearing thereon. Such agent shall receive on each policy or contract the full and usual commission allowed and paid by the insurer to its agents on business written or transacted by them for the insurer.

(2)  If any subject of insurance referred to in subsection (1) is insured under a policy, or contract, or certificate of renewal or continuation thereof, issued in another state and covering also property and risks outside this state, a certificate evidencing such insurance as to subjects located, resident, or to be performed in this state, shall be issued by or through and shall be countersigned by the insurer's commissioned and appointed local producing agent resident in this state in the same manner and subject to the same conditions as is provided in subsection (1) as to policies and contracts; except that the compensation to be paid to the agent may relate only to the Florida portion of the insurance risks represented by such policy or contract.

(3)  An agent shall not sign or countersign in blank any policy to be issued outside her or his office, or countersign in blank any countersignature endorsement therefor, or certificate issued thereunder. An agent may give a written power of attorney to the issuing insurance company to countersign such documents by imprinting her or his name, or the name of the agency or other entity with which the agent may be sharing commission pursuant to s. 626.753(1)(a) and (2), thereon in lieu of manually countersigning such documents; but an agent shall not give a power of attorney to any other person to countersign any such document in her or his name unless the person so authorized is directly employed by the agent and by no other person, and is so employed in the office of the agent.

(4)  This section shall not be deemed to prohibit insurers from using salaried licensed and appointed agents for the production and servicing of business in this state and the issuance and countersignature by such agents of insurance policies or contracts, when required under subsection (1), and without payment of commission therefor.

(5)  This section shall not be deemed to prohibit an insurer from authorizing an agent who is not regularly commissioned and appointed currently as an agent of the insurer from countersigning a policy or contract of insurance issued pursuant to the provisions of ss. 627.311 and 627.351. This section does not apply to reissuance of insurance policies or endorsements thereto which are part of a mass reissuance of such policies or endorsements and do not involve a change of premium or payment of agent's commissions.

History.--s. 69, ch. 59-205; s. 1, ch. 74-64; s. 3, ch. 76-168; s. 1, ch. 77-457; ss. 2, 3, ch. 81-318; ss. 59, 64, 809(1st), ch. 82-243; s. 6, ch. 83-288; ss. 187, 188, ch. 91-108; s. 4, ch. 91-429; s. 187, ch. 97-102; s. 1, ch. 98-199; s. 37, ch. 99-7.

624.426  Exceptions to resident agent and countersignature law.--Section 624.425 does not apply to:

(1)  Contracts of reinsurance.

(2)  Policies of insurance on the rolling stock of railroad companies doing a general freight and passenger business.

(3)  United States Customs surety bonds that are issued by a corporate surety approved by the United States Department of Treasury and that name the United States as the beneficiary.

(4)  Policies of insurance issued by insurers whose agents represent only one company or group of companies under common ownership if a company within one group is transferring policies to another company within the same group and the agent of record remains the same.

History.--s. 70, ch. 59-205; s. 3, ch. 76-168; s. 1, ch. 77-457; ss. 2, 3, ch. 81-318; ss. 64, 809(1st), ch. 82-243; ss. 187, 188, ch. 91-108; s. 4, ch. 91-429; s. 57, ch. 97-278; s. 88, ch. 98-199.

624.428  Licensed agent law, life and health insurances.--

(1)  No life insurer shall deliver or issue for delivery in this state any policy of life insurance, master group life insurance contract, master credit life policy or agreement, annuity contract, or contract or policy of health insurance, unless the application for such policy or contract is taken by, and the delivery of such policy or contract is made through, an insurance agent of the insurer duly licensed and appointed under the law of this state, who shall receive the usual commission due to an agent from such insurer.

(2)  Each such insurer shall maintain a licensed and appointed agent at all times for the purpose of and through whom policies or contracts issued or delivered in this state shall be serviced.

(3)  This section does not apply to policies of insurance or annuity contracts on nonresidents which are applied for outside, and delivered in, the state or to reissuance of insurance policies or endorsements thereto which are part of a mass reissuance of such policies or endorsements and do not involve a change of premium or payment of agent's commissions.

History.--s. 72, ch. 59-205; s. 3, ch. 76-168; s. 1, ch. 77-457; ss. 2, 3, ch. 81-318; ss. 61, 64, 809(1st), ch. 82-243; s. 7, ch. 83-288; ss. 187, 188, ch. 91-108; s. 4, ch. 91-429; s. 2, ch. 98-199.

624.430  Withdrawal of insurer or discontinuance of writing certain kinds or lines of insurance.--

(1)  Any insurer desiring to surrender its certificate of authority, withdraw from this state, or discontinue the writing of any one or multiple kinds or lines of insurance in this state shall give 90 days' notice in writing to the department setting forth its reasons for such action. Any insurer who does not write any premiums in a kind or line of insurance within a calendar year shall have that kind or line of insurance removed from its certificate of authority; however, such line of insurance shall be restored to the insurer's certificate upon the insurer demonstrating that it has available the expertise necessary and meets the other requirements of this code to write that line of insurance.

(2)  Any insurer withdrawing from this state or discontinuing the writing of all kinds of insurance in this state shall surrender its certificate of authority.

(3)  This section does not apply to life insurance and corresponding lines of insurance as long as the insurer has in force life insurance policies and corresponding lines in this state.

(4)  This section does not apply to insurers during the calendar year in which they first receive their certificate of authority.

(5)  This section does not apply to insurers who have discontinued writing in accordance with an order issued by the department.

History.--s. 2, ch. 63-149; s. 1, ch. 67-10; ss. 13, 35, ch. 69-106; s. 3, ch. 76-168; s. 1, ch. 77-457; s. 21, ch. 78-95; ss. 2, 3, ch. 81-318; ss. 63, 64, 809(1st), ch. 82-243; s. 35, ch. 89-360; ss. 21, 187, 188, ch. 91-108; s. 4, ch. 91-429.

624.436  Florida Nonprofit Multiple-Employer Welfare Arrangement Act.--Sections 624.436-624.446 may be cited as the "Florida Nonprofit Multiple-Employer Welfare Arrangement Act."

History.--s. 3, ch. 83-203; s. 3, ch. 84-94; ss. 22, 187, 188, ch. 91-108; s. 4, ch. 91-429.

624.4361  Definitions.--As used in ss. 624.436-624.446:

(1)  "Arrangement" means a multiple-employer welfare arrangement.

(2)  "Fund balance" means total statutory assets in excess of total statutory liabilities, except that assets pledged to secure debts not reflected on the books of the multiple-employer welfare arrangement shall not be included in the fund balance. "Fund balance" includes other contributed capital, retained earnings, and surplus notes.

(3)  "Insolvent" or "insolvency" means that all the assets of the multiple-employer welfare arrangement, if made immediately available, would not be sufficient to discharge all of its liabilities, or that the multiple-employer welfare arrangement is unable to pay its debts as they become due in the usual course of business.

(4)  "Reporting period" means the annual accounting period or fiscal year of the multiple-employer welfare arrangement.

(5)  "Statutory accounting principles" means generally accepted accounting principles, except as modified by part I of chapter 625 and by rules adopted by the department which recognize the difference between an arrangement and an insurer.

(6)  "Surplus notes" means funds borrowed by a multiple-employer welfare arrangement which result in a written instrument which includes all of the following:

(a)  The effective date, amount, interest, and parties involved are clearly set forth.

(b)  The principal sum and any interest accrued thereon are subject to and subordinate to all other liabilities of the multiple-employer welfare arrangement.

(c)  The instrument states that the parties agree that the multiple-employer welfare arrangement shall satisfy the department that all claims of participants and general creditors of the organization have been paid or otherwise discharged prior to any payment of interest or repayment of principal.

(d)  The instrument is executed by both parties and a certified copy of the instrument is filed with the department.

(e)  The parties agree not to modify, terminate, or cancel the surplus note without the prior approval of the department.

(7)  "Qualified actuary" means an actuary who is a member of the American Academy of Actuaries or the Society of Actuaries and has experience in establishing rates for a self-insured trust and the health services being provided.

History.--ss. 23, 188, ch. 91-108; s. 4, ch. 91-429.

624.437  "Multiple-employer welfare arrangement" defined; certificate of authority required; penalty.--

(1)  For the purposes of ss. 624.436-624.446, the term "multiple-employer welfare arrangement" means an employee welfare benefit plan or any other arrangement which is established or maintained for the purpose of offering or providing health insurance benefits or any other benefits described in s. 624.33, other than life insurance benefits, to the employees of two or more employers, or to their beneficiaries.

(2)  No person shall operate, maintain, or, after October 1, 1983, establish a multiple-employer welfare arrangement unless such arrangement has a valid certificate of authority issued by the department.

(3)  This section does not apply to a multiple-employer welfare arrangement which offers or provides benefits which are fully insured by an authorized insurer or to an arrangement which is exempt from state insurance regulation in accordance with Pub. L. No. 93-406, the Employee Retirement Income Security Act.

(4)(a)  Any person failing to hold a subsisting certificate of authority from the department while operating or maintaining a multiple-employer welfare arrangement shall be subject to a fine of not less than $5,000 or more than $100,000 for each violation.

(b)  Any person who operates or maintains a multiple-employer welfare arrangement without a subsisting certificate of authority from the department shall be subject to the cease and desist penalty powers of the department as set forth in ss. 626.9571, 626.9581, 626.9591, and 626.9601.

(c)1.  Any person who operates or maintains a multiple-employer welfare arrangement without a subsisting certificate of authority as required under this section commits a felony of the third degree, punishable as provided in s. 775.082 or s. 775.083.

2.  Except as provided in subparagraph 1., any person who violates the provisions of ss. 624.437-624.446 commits a misdemeanor of the first degree, punishable as provided in s. 775.082 or s. 775.083.

(d)  In addition to the penalties and other enforcement provisions of the Florida Insurance Code, the department is vested with the power to seek both temporary and permanent injunctive relief when:

1.  A multiple-employer welfare arrangement is being operated by any person or entity without a subsisting certificate of authority.

2.  Any person, entity, or multiple-employer welfare arrangement has engaged in any activity prohibited by the Florida Insurance Code or by any rule adopted pursuant thereto.

3.  Any multiple-employer welfare arrangement, person, or entity is renewing, issuing, or delivering a policy, contract, certificate, summary plan description, or other evidence of the benefits and coverages provided to employees or employee family members without a subsisting certificate of authority.

The department's authority to seek injunctive relief shall not be conditioned on having conducted any proceeding pursuant to chapter 120. The authority vested in the department by virtue of the operation of this section shall not act to reduce any other enforcement remedy or power to seek injunctive relief that may otherwise be available to the department.

History.--s. 3, ch. 83-203; s. 3, ch. 84-94; s. 2, ch. 85-212; ss. 24, 187, 188, ch. 91-108; s. 4, ch. 91-429.

624.438  General eligibility.--

(1)  To meet the requirements for issuance of a certificate of authority and to maintain a multiple-employer welfare arrangement, an arrangement:

(a)  Must be nonprofit.

(b)1.  Must be established by a trade association, industry association, or professional association of employers or professionals which has a constitution or bylaws specifically stating its purpose and which has been organized and maintained in good faith for a continuous period of 1 year for purposes other than that of obtaining or providing insurance.

2.  Must not combine member employers from disparate trades, industries, or professions as defined by the appropriate licensing agencies, and must not combine member employers from more than one of the employer categories defined in sub-subparagraphs a.-c.

a.  A trade association consists of member employers who are in the same trade as recognized by the appropriate licensing agency.

b.  An industry association consists of member employers who are in the same major group code, as defined by the Standard Industrial Classification Manual issued by the federal Office of Management and Budget, unless restricted by sub-subparagraph a. or sub-subparagraph c.

c.  A professional association consists of member employers who are of the same profession as recognized by the appropriate licensing agency.

The requirements of this subparagraph do not apply to an arrangement licensed prior to April 1, 1995, regardless of the nature of its business. However, an arrangement exempt from the requirements of this subparagraph may not expand the nature of its business beyond that set forth in the articles of incorporation of its sponsoring association as of April 1, 1995, except as authorized in this subparagraph.

(c)  Must be operated pursuant to a trust agreement by a board of trustees which shall have complete fiscal control over the arrangement and which shall be responsible for all operations of the arrangement. The trustees selected shall be owners, partners, officers, directors, or employees of one or more employers in the arrangement. A trustee may not be an owner, officer, or employee of the administrator or service company of the arrangement. The trustees shall have the authority to approve applications of association members for participation in the arrangement and to contract with an authorized administrator or service company to administer the day-to-day affairs of the arrangement.

(d)  Must be neither offered nor advertised to the public generally.

(e)  Must be offered only to eligible employers who have been members of the sponsoring association for at least 2 consecutive months. The requirements of this paragraph shall not apply to an arrangement that has been operating under a certificate for at least 3 years.

(f)  Must be operated in accordance with sound actuarial principles.

(g)  May, notwithstanding the provisions of paragraph (e), be offered to eligible physician employers. An eligible physician employer may participate in an arrangement's employer health benefit plans without being a member of the arrangement's sponsoring association if:

1.  The physician has more than one employee.

2.  The physician employer enters into a contract to render medical services to the arrangement's plan participants.

3.  The physician employer agrees to waive any fee due from the arrangement in the event that the arrangement becomes insolvent.

4.  The physician employer agrees to be subject to the same assessments and surcharges as apply to arrangement members.

(2)  The arrangement shall issue to each covered employee a policy, contract, certificate, summary plan description, or other evidence of the benefits and coverages provided. This evidence of the benefits and coverages provided shall contain in boldfaced print and in at least 12-point type in a conspicuous location, the following statement: "The benefits and coverages described herein are provided through a trust fund established and funded by a group of employers. It is not an insurance company and it is not protected by a guaranty fund in the event of insolvency. Participating employers are assessable for any losses incurred by the trust."

(3)  Each arrangement shall maintain specific excess insurance with a retention level determined in accordance with s. 624.439(6) and sound actuarial principles.

(4)  Each arrangement shall establish and maintain appropriate loss reserves determined in accordance with sound actuarial principles.

(5)  The department shall not grant or continue a certificate of authority for any arrangement if the department determines any trustee, manager, or administrator to be incompetent, untrustworthy, or so lacking in insurance expertise as to make the operations of the arrangement hazardous to potential and existing insureds; that any trustee, manager, or administrator has been found guilty of, or has pled guilty or no contest to a felony, a crime involving moral turpitude, or a crime punishable by imprisonment of 1 year or more under the law of any state, territory, or country, whether or not a judgment or conviction has been entered; that any trustee, manager, or administrator has had any type of insurance license revoked in this or any other state; or that the business operations of the arrangement are or have been marked, to the detriment of the employers participating in the arrangement, of persons receiving benefits from the arrangement, or of creditors or the public, by the improper manipulation of assets, accounts, or specific excess insurance or by bad faith.

(6)  To qualify for and retain approval to transact business, an arrangement shall make all contracts with administrators or service companies available for inspection by the department initially, and annually thereafter upon reasonable notice.

(7)  Failure to maintain compliance with the eligibility requirements established by this section and the filing requirements of ss. 624.33(1) and 624.439 shall be grounds for suspension or revocation of the certificate of authority of an arrangement.

History.--s. 3, ch. 83-203; s. 3, ch. 84-94; s. 3, ch. 85-212; ss. 25, 187, 188, ch. 91-108; s. 4, ch. 91-429; s. 1, ch. 94-133; s. 2, ch. 95-340.

624.4385  Certain words prohibited in name of organization.--No entity holding a certificate as a multiple-employer welfare arrangement other than a licensed insurer may use in its name, contracts, or literature the term "insurance," "casualty," "surety," or "mutual," or any other words descriptive of the insurance, casualty, or surety business or deceptively similar to the name or description of any insurance or surety company doing business in the state.

History.--ss. 26, 188, ch. 91-108; s. 4, ch. 91-429.

624.439  Filing of application.--The sponsoring association shall file with the department an application for a certificate of authority upon a form to be furnished by the department, signed under oath by officers of the trust, which shall include or have attached the following:

(1)  A copy of the articles of incorporation, constitution, and bylaws of the association, if any.

(2)  A list of the names, addresses, and official capacities within the arrangement of the individuals who are to be responsible for the management of and the conduct of the affairs of the arrangement, including all trustees, officers, and directors. Such individuals shall fully disclose to the department the extent and nature of any contracts or arrangements between themselves and the arrangement, including any possible conflicts of interest.

(3)  A copy of the articles of incorporation, bylaws, or trust agreement which governs the operation of the arrangement.

(4)  A copy of the policy, contract, certificate, summary plan description, or other evidence of the benefits and coverages provided to covered employees, which shall be in accordance with s. 627.651(4), and which shall include a table of the rates charged, or proposed to be charged, for each form of such contract. A qualified actuary shall certify that:

(a)  The rates are not inadequate.

(b)  The rates are appropriate for the class of risks for which they have been computed.

(c)  An adequate description of the rating methodology has been filed with the department and such methodology follows consistent and equitable actuarial principles.

(5)  A copy of the fidelity bond in an amount equal to not less than 10 percent of the funds handled annually and issued in the name of the arrangement covering its trustees, directors, officers, employees, administrator, or other individuals managing or handling the funds or assets of the arrangement. In no case may such bond be less than $50,000 or more than $500,000, except that the department, after due notice to all interested parties and opportunity for hearing, and after consideration of the record, may prescribe an amount in excess of $500,000, subject to the 10-percent limitation of the preceding sentence.

(6)(a)  A copy of the arrangement's excess insurance agreement, which shall provide that the net retention level for any one risk shall not exceed $50,000, and which shall otherwise be in accordance with sound actuarial principles.

(b)  The department may waive or modify the maximum net retention requirement if:

1.  The excess insurance is not available for a reasonable cost; or

2.  The arrangement:

a.  Has 150 percent of the statutory reserve requirement as specified in s. 624.441;

b.  Has a fund balance in excess of that required by statute; and

c.  Has a ratio of current assets to current liabilities of at least 2.0 to 1.0.

(7)(a)  A feasibility study, done by an independent qualified actuary and an independent certified public accountant, determined by the department to satisfactorily address market potential, market penetration, market competition, operating expenses, gross revenues, net income, total assets and liabilities, cash flow, and such other items as the department may reasonably require. The study shall be for the greater of 3 years or until the arrangement has been projected to be profitable for 12 consecutive months. The study must show that the arrangement would not, at any month-end of the projection period, have less than the minimum statutory deposit as required by s. 624.441 or have a fund balance less than the amount required by s. 624.4392.

(b)  The feasibility study shall reflect and support that initial gross premiums for the first year of operation will be at least $100,000.

(8)  Evidence satisfactory to the department showing that the arrangement will be operated in accordance with sound actuarial principles. The department shall not approve the arrangement unless the department determines that the plan is designed to provide sufficient revenues to pay current and future liabilities, as determined in accordance with sound actuarial principles.

(9)  Confirmation of insolvency protection as required by s. 624.441.

(10)  A copy of each contract between the arrangement and any administrator or service company which may be made available for review rather than filed or attached.

(11)  Such additional information as the department may reasonably require.

History.--s. 3, ch. 83-203; s. 3, ch. 84-94; s. 4, ch. 85-212; ss. 27, 187, 188, ch. 91-108; s. 4, ch. 91-429; s. 13, ch. 99-3.

624.4392  Fund balance.--

(1)  Each multiple-employer welfare arrangement licensed on or after October 1, 1991, shall have a fund balance equal to $200,000 before a certificate of authority may be issued by the department. After it has received a certificate of authority, the arrangement must maintain a fund balance equal to $100,000 or 10 percent of total liabilities, whichever is greater.

(2)  A multiple-employer welfare arrangement holding a certificate of authority on October 1, 1991, shall increase and maintain its fund balance as follows:

(a)  As of January 1, 1992, the balance shall be equal to $75,000 or 5 percent of total liabilities, whichever is greater.

(b)  As of January 1, 1993, the balance shall be equal to $100,000 or 10 percent of total liabilities, whichever is greater.

(3)  The department shall order the arrangement to assess participating employers at any time the fund balance does not meet the requirements of this section.

History.--ss. 1, 5, ch. 88-116; ss. 28, 187, 188, ch. 91-108; s. 4, ch. 91-429.

624.44  Examination by the department.--

(1)(a)  The department shall examine the affairs, transactions, accounts, business records, and assets of any multiple-employer welfare arrangement as often as it deems necessary for the protection of the people of the state, but not less frequently than once every 3 years. For the purpose of examinations, the department may administer oaths and examine the trustees, directors, officers, and agents of an arrangement concerning its business and affairs.

(b)  The expenses of examination of each arrangement by the department shall be subject to the same terms and conditions as apply to insurers under part II.

(c)  The department may contract, at reasonable fees for work performed, with qualified, impartial, outside sources to perform audits or examinations or portions thereof to determine continued compliance with the requirements of ss. 624.436-624.446. Any contracted assistance shall be under direct supervision of the department. The results of any contracted assistance shall be subject to review, approval, disapproval, or modification by the department.

(2)  If the department preliminarily finds that an arrangement is insolvent, the department shall notify the arrangement of such insolvency. Upon being so notified, the arrangement shall within 15 days file with the department all information that proves that the arrangement is not insolvent.

(3)  If the arrangement fails within the 15-day period provided in subsection (2) to supply information showing to the satisfaction of the department that the arrangement is not insolvent, the department may:

(a)1.  Suspend any new enrollment;

2.  Suspend or revoke the arrangement's certificate of authority; or

3.  Place the arrangement in administrative supervision under ¹s. 624.80; or

(b)  For the purposes of dissolution, liquidation, or rehabilitation, place the arrangement under the supervision of the department pursuant to chapter 631.

History.--s. 3, ch. 83-203; s. 3, ch. 84-94; s. 9, ch. 85-62; s. 5, ch. 85-212; ss. 29, 187, 188, ch. 91-108; s. 4, ch. 91-429.

¹Note.--Section 624.80 defines terms applicable to part VI, dealing with administrative supervision.

624.441  Insolvency protection.--

(1)  To assure the faithful performance of its obligations to its member employers and covered employees and their dependents, every arrangement shall deposit with the department cash, securities of the type eligible for deposit by insurers under s. 625.52, or any combination of these, in an amount equal to 25 percent of the preceding 12 months' health care claims expenditures or 5 percent of gross annual premiums for the succeeding year, whichever is greater, which deposit shall be made within 30 days after the close of each fiscal year; however, in no case shall the amount of the deposit exceed $500,000.

(2)  All income from deposits shall belong to the depositing arrangement and shall be paid to it as it becomes available. An arrangement that has made a securities deposit may withdraw that deposit, or any part thereof, after making a substitute deposit of cash, securities, or any combination of these or other measures of equal amount and value, upon approval by the department. No judgment creditor or other claimant of a multiple-employer welfare association shall have the right to levy upon any of the assets or securities held in this state as a deposit under this section.

(3)  Deposits of securities or cash pursuant to this section shall be administered by the department in accordance with part III of chapter 625.

History.--s. 6, ch. 85-212; s. 1, ch. 86-286; ss. 30, 187, 188, ch. 91-108; s. 4, ch. 91-429.

624.4411  Administrative, provider, and management contracts.--

(1)  The department may require a multiple-employer welfare arrangement to submit any contract for administrative services, contract with a provider other than an individual physician, contract for management services, or contract with an affiliated person to the department, if the department has reason to believe that the arrangement has entered into a contract which requires it to pay a fee which is unreasonably high in relation to the services provided. Multiple-employer welfare arrangements are prohibited from paying a fee to a sponsoring association unless such fee is directly related to services provided by the association for the arrangement.

(2)  After review of a contract, the department may order the arrangement to cancel the contract in accordance with the terms of the contract and applicable law if the department determines that the fees to be paid by the arrangement under the contract are so unreasonably high in relation to the services provided that the contract is detrimental to the policyholders or certificateholders of the arrangement.

(3)  All contracts for administrative services, management services, and provider services other than individual physician contracts, and all contracts with affiliated entities, entered into or renewed by an arrangement on or after October 1, 1991, shall contain a provision that the contract shall be canceled upon issuance of an order by the department pursuant to this section.

History.--ss. 31, 188, ch. 91-108; s. 4, ch. 91-429.

624.4412  Policy forms.--

(1)  No policy or contract form, application form, certificate, rider, endorsement, summary plan description, or other evidence of coverage shall be issued by an arrangement unless the form and all changes thereto have been filed with the department at its offices in Tallahassee by or on behalf of the arrangement which proposes to use such form and have been approved by the department. Filing of all forms shall be in accordance with the provisions of s. 627.410(2).

(2)  The department shall disapprove any form filed under this section, or withdraw any previous approval thereof, only if the form:

(a)  Is in any respect in violation of, or does not comply with, this code;

(b)  Contains or incorporates by reference, where such incorporation is otherwise permissible, any inconsistent, ambiguous, or misleading clauses, or exceptions and conditions which deceptively affect the risk purported to be assumed in the general coverage of the contract;

(c)  Has any title, heading, or other indication of its provisions which is misleading;

(d)  Is printed or otherwise reproduced in such manner as to render any material provision of the form substantially illegible; or

(e)  Contains provisions which are unfair or inequitable, or contrary to the public policy of this state or which encourage misrepresentation.

History.--ss. 2, 5, ch. 88-116; ss. 187, 188, ch. 91-108; s. 4, ch. 91-429.

624.4414  Employer participants' liability.--

(1)  The liability of each employer participant for the obligations of the multiple-employer welfare arrangement shall be individual, several, and proportionate, but not joint, except as provided in this section and s. 624.4415.

(2)  Each employer participant shall have a contingent assessment liability pursuant to s. 624.4415 for payment of actual losses and expenses incurred while the policy was in force.

(3)  Each policy issued by the arrangement shall contain a statement of the contingent liability. Both the application for insurance and policy shall contain, in contrasting color and not less than 10-point type, the following statement: "This is a fully assessable policy. In the event the arrangement is unable to pay its obligations, policyholders (employers) will be required to contribute on a pro rata earned premium basis the money necessary to meet any unfilled obligations."

History.--ss. 3, 5, ch. 88-116; ss. 184, 187, 188, ch. 91-108; s. 4, ch. 91-429.

624.4415  Assessments.--

(1)  All multiple-employer welfare arrangements shall provide that employers are assessable in accordance with this section.

(2)  Each multiple-employer welfare arrangement may assess all employers if its prior fiscal year statement of operations reflected a loss.

(3)  Each multiple-employer welfare arrangement shall assess all employers if the arrangement's fund balance at the end of any accounting period is less than the fund balance required by statute.

(4)(a)  The minimum assessment shall be the amount necessary to comply with the requirements of s. 624.4392. Each employer's assessment shall be computed by applying the earned premium for each employer's plan of benefits during the prior fiscal year as a percent of the amount of the total of all employers' earned premium for the same year. Each employer's assessment shall be that employer's percent times the total assessment levied.

(b)  In the event members fail to pay assessments, the other members shall be liable on a proportionate basis for an additional assessment.

(c)  The multiple-employer welfare arrangement, acting on behalf of all members who paid the additional assessment, shall institute legal action, when necessary and appropriate, to recover the assessment from the members who fail to pay their assessment.

History.--ss. 4, 5, ch. 88-116; ss. 32, 187, 188, ch. 91-108; s. 4, ch. 91-429.

624.4416  Assessments by receiver.--

(1)  In the event of delinquency proceedings against a multiple-employer welfare arrangement, the department as receiver may assess employer participants. Any person or entity that was an employer participant in the arrangement at any time is liable for the assessments, regardless of whether or not it was a participant during the entire assessment period. The assessment period is the 12 months immediately preceding the date of the delinquency order or the period from the date of creation of the arrangement through the date of the delinquency order, whichever is shorter. Employer participants assessed under this section shall be assessed in the amounts specified by s. 624.4415.

(2)  The total assessment must equal the projected amount which the department reasonably estimates to be necessary to pay all class four claims as defined in s. 631.271, whenever accrued, together with the costs and expenses of collecting the assessments, a reasonable loading factor for uncollected assessments, and the costs and expenses of the delinquency proceeding in full.

(3)  To the extent not inconsistent with this section, the assessment must follow the procedure for assessments for reciprocal insurers provided in ss. 631.311, 631.321, and 631.331.

(4)  No offset may be allowed against any assessment.

(5)  If an arrangement, in violation of applicable laws or rules, issues coverage to a person or entity not eligible for coverage, the insured is eligible to participate in the proceeds of the assessment, and is assessable, subject to the relief provisions of s. 624.4417, if applicable.

History.--ss. 33, 188, ch. 91-108; s. 4, ch. 91-429.

624.4417  Certain sales prohibited.--

(1)  A multiple-employer welfare arrangement may not offer, advertise, or sell insurance coverage to the general public.

(2)  As used in this section, a member of the general public is a person who:

(a)  Purchases insurance directly from the arrangement or an agent rather than through an employer;

(b)  Makes premium payments directly to the arrangement or through an agent rather than through an employer; or

(c)  Is not employed by an employer subject to assessment.

(3)  A person who violates this section is jointly and severally liable for the payment of assessments on behalf of any person who is sold coverage in violation of this section. A person to whom coverage is sold in violation of this section is not subject to assessment until the department determines that the assessment is not collectible in full from the agent, trustee, officer, or other person.

(4)  Any person in violation of this section commits a felony of the third degree, punishable as provided in s. 775.082 or s. 775.083.

History.--ss. 34, 188, ch. 91-108; s. 4, ch. 91-429.

624.442  Annual reports; actuarial certification; quarterly reports; penalties.--

(1)  Every arrangement shall, annually within 3 months after the end of the fiscal year or within such extension of time therefor as the department for good cause may grant, file a report with the department, on forms prescribed by the department, verified by the oath of a member of the board of trustees and by an administrative executive appointed by the board, showing its condition on the last day of the preceding fiscal year. The report shall contain an audited financial statement of the arrangement prepared in accordance with statutory accounting principles, including its balance sheet and a statement of operations for the preceding year certified by an independent certified public accountant. The report shall also include an analysis of the adequacy of reserves and contributions or premiums charged, based on a review of past and projected claims and expenses.

(2)  In addition to information called for and furnished in connection with the annual report, if reasonable grounds exist, the department may request information which summarizes paid and incurred expenses, and contributions or premiums received, and may request evidence satisfactory to the department that the arrangement is actuarially sound. Such information and evidence shall be furnished to the department by the arrangement as soon as reasonably possible after requested by the department, but not later than 30 days after such request, unless the department, for good cause, grants an extension.

(3)  Annually, in conjunction with the annual report required by subsection (1), each arrangement shall submit an actuarial certification prepared by an independent actuary certifying that:

(a)  The arrangement is actuarially sound. The certification shall consider the rates, benefits, and expenses of, and any other funds available for the payment of the obligations of, the arrangement.

(b)  The rates being charged and to be charged for contracts are actuarially adequate through the end of the period for which rates have been guaranteed.

(c)  Incurred but not reported claims and claims reported but not fully paid have been adequately provided for.

(d)  Such other information relating to the performance of the arrangement as the department requires.

(4)  Each arrangement shall file quarterly, within 45 days after the end of each of its four quarterly reporting periods, an unaudited financial statement of the arrangement on forms prescribed by the department, verified according to the best of their information, knowledge, and belief by the oath of a member of the board of trustees and by an administrative executive appointed by the board showing its condition on the last day of the preceding quarter.

(5)  Any arrangement that fails to file an annual financial report, actuarial report, or quarterly financial report in the form and within the time required by this section shall forfeit to the department an amount set by order of the department which does not exceed $1,000 for each of the first 10 days of noncompliance and does not exceed $2,000 for each subsequent day of noncompliance. Upon notice by the department that the arrangement is not in compliance with this section, the arrangement's authority to enroll new enrollees or to do business in this state ceases until the department determines the arrangement to be in compliance. The department may not collect more than $100,000 under this paragraph with respect to any particular report.

(6)  All moneys collected by the department under this section shall be deposited to the credit of the Insurance Commissioner's Regulatory Trust Fund.

(7)  Each authorized arrangement must retain an independent certified public accountant, referred to in this subsection as "CPA," who agrees by written contract with the arrangement to comply with ss. 624.436-624.445. The contract must state that:

(a)  The CPA will provide to the arrangement audited financial statements consistent with ss. 624.436-624.445.

(b)  Any determination by the CPA that the arrangement does not meet the minimum surplus requirements set forth in ss. 624.436-624.445 will be stated by the CPA, in writing, in the audited financial statement.

(c)  The completed workpapers and any written communications between the CPA and the arrangement will be made available for review on a visual inspection-only basis by the department at the offices of the arrangement, the department, or any other reasonable place agreeable to both the department and the arrangement.

(d)  The CPA will retain for review the workpapers and written communications with the arrangement for not less than 6 years.

History.--s. 6, ch. 85-212; s. 1, ch. 86-286; ss. 35, 187, 188, ch. 91-108; s. 4, ch. 91-429.

624.443  Place of business; maintenance of records.--Each arrangement shall have and maintain its principal place of business in this state and shall therein make available to the department complete records of its assets, transactions, and affairs in accordance with such methods and systems as are customary for, or suitable to, the kind or kinds of business transacted.

History.--s. 6, ch. 85-212; s. 1, ch. 86-286; ss. 187, 188, ch. 91-108; s. 4, ch. 91-429.

624.4431  Administration; rules.--The administration of ss. 624.436-624.446 is vested in the department. The department has authority to adopt rules pursuant to ss. 120.536(1) and 120.54 to implement the provisions of ss. 624.436-624.446.

History.--ss. 36, 188, ch. 91-108; s. 4, ch. 91-429; s. 202, ch. 98-200.

624.4432  Assets, liabilities, and investments.--Each arrangement that obtains or maintains a certificate of authority is subject to parts I and II of chapter 625 as they apply to domestic insurers.

History.--ss. 37, 188, ch. 91-108; s. 4, ch. 91-429.

624.4435  Assets of insurers; reporting requirements.--

(1)  As used in this section, the term:

(a)  "Material acquisition of assets" or "material disposition of assets" means one or more transactions occurring during any 30-day period which are nonrecurring and not in the ordinary course of business and involve more than 5 percent of the reporting insurer's total admitted assets as reported in its most recent statutory statement filed with the insurance department of the insurer's state of domicile.

(b)  "Material nonrenewal, cancellation, or revision of a ceded reinsurance agreement" is one that affects:

1.  With respect to property and casualty business, including accident and health business written by a property and casualty insurer:

a.  More than 50 percent of the insurer's total ceded written premium; or

b.  More than 50 percent of the insurer's total ceded indemnity and loss adjustment reserves.

2.  With respect to life, annuity, and accident and health business, more than 50 percent of the total reserve credit taken for business ceded, on an annualized basis, as indicated in the insurer's most recent annual statement.

3.  With respect to property and casualty business or life, annuity, and accident and health business, a material revision includes:

a.  The replacement of an authorized reinsurer representing more than 10 percent of a total cession by one or more unauthorized reinsurers; or

b.  The reduction or waiver, with respect to one or more unauthorized insurers, of previously established collateral requirements representing more than 10 percent of a total cession.

(2)  Each domestic insurer shall file a report with the Department of Insurance disclosing a material acquisition of assets, a material disposition of assets, or a material nonrenewal, cancellation, or revision of a ceded reinsurance agreement, unless the material acquisition or disposition of assets or the material nonrenewal, cancellation, or revision of a ceded reinsurance agreement has been submitted to the department for review, approval, or informational purposes under another section of the Florida Insurance Code or a rule adopted thereunder. A copy of the report and each exhibit or other attachment must be filed by the insurer with the National Association of Insurance Commissioners. The report required in this section is due within 15 days after the end of the calendar month in which the transaction occurs.

(3)  An immaterial acquisition or disposition of assets need not be reported under this section.

(4)(a)  Acquisitions of assets which are subject to this section include each purchase, lease, exchange, merger, consolidation, succession, or other acquisition of assets. Asset acquisitions for the construction or development of real property by or for the reporting insurer and the acquisition of construction materials for this purpose are not subject to this section.

(b)  Dispositions of assets which are subject to this section include each sale, lease, exchange, merger, consolidation, mortgage, hypothecation, assignment for the benefit of a creditor or otherwise, abandonment, destruction, or other disposition of assets.

(5)(a)  The following information must be disclosed in any report of a material acquisition or disposition of assets:

1.  The date of the transaction;

2.  The manner of acquisition or disposition;

3.  The description of the assets involved;

4.  The nature and amount of the consideration given or received;

5.  The purpose of, or reason for, the transaction;

6.  The manner by which the amount of consideration was determined;

7.  The gain or loss recognized or realized as a result of the transaction; and

8.  The name of the person from whom the assets were acquired or to whom they were disposed.

(b)  Insurers must report material acquisitions or dispositions on a nonconsolidated basis unless the insurer is part of a consolidated group of insurers which uses a pooling arrangement or a 100-percent reinsurance agreement that affects the solvency and integrity of the insurer's reserves and the insurer has ceded substantially all of its direct and assumed business to the pool. An insurer is deemed to have ceded substantially all of its direct and assumed business to a pool if the insurer has less than $1 million in total direct and assumed written premiums during a calendar year which are not subject to a pooling arrangement and if the net income of the business which is not subject to the pooling arrangement represents less than 5 percent of the insurer's capital and surplus.

(6)  The nonrenewal, cancellation, or revision of a ceded reinsurance agreement need not be reported if the renewal or the revision is not material or if:

(a)  With respect to property and casualty business, including accident and health business written by a property and casualty insurer, the insurer's total ceded written premium represents, on an annualized basis, less than 10 percent of its total written premium for direct and assumed business; or

(b)  With respect to life, annuity, and accident and health business, the total reserve credit taken for business ceded represents, on an annualized basis, less than 10 percent of the statutory reserve requirement before the cession.

(7)(a)  The following information must be disclosed in any report of a material nonrenewal, cancellation, or revision of a ceded reinsurance agreement:

1.  The effective date of the nonrenewal, cancellation, or revision;

2.  The description of the transaction and the identification of the initiator of the transaction;

3.  The purpose of, or reason for, the transaction; and

4.  If applicable, the identity of each replacement reinsurer.

(b)  Insurers shall report the material nonrenewal, cancellation, or revision of a ceded reinsurance agreement on a nonconsolidated basis unless the insurer is part of a consolidated group of insurers which uses a pooling arrangement or a 100-percent reinsurance agreement that affects the solvency and integrity of the insurer's reserves and the insurer has ceded substantially all of its direct and assumed business to the pool. An insurer is deemed to have ceded substantially all of its direct and assumed business to a pool if the insurer has less than $1 million in total direct and assumed written premiums during a calendar year which are not subject to a pooling arrangement and if the net income of the business not subject to the pooling arrangement represents less than 5 percent of the insurer's capital and surplus.

History.--s. 4, ch. 97-292.

624.444  Suspension, revocation of approval.--

(1)  The department shall deny, suspend, or revoke an arrangement's certificate of authority if it finds that the arrangement:

(a)  Is insolvent;

(b)  Is using such methods and practices in the conduct of its business as to render its further transaction of business in this state hazardous or injurious to its participating employers, covered employees and dependents, or to the public;

(c)  Has failed to pay any final judgment rendered against it in this state within 60 days after the judgment became final;

(d)  Is in violation of any provision of this chapter, including any requirements for the granting of a certificate of authority;

(e)  Is no longer actuarially sound or the arrangement does not have the minimum surplus required by this chapter; or

(f)  The existing contract rates are inadequate.

(2)  The department may, in its discretion, deny, suspend, or revoke the certificate of authority of any arrangement if it finds that the arrangement:

(a)  Has violated any lawful order or rule of the department or any applicable provision of the Florida Insurance Code; or

(b)  Has refused to be examined or to produce its accounts, records, and files for examination, or if any of its officers have refused to give information with respect to its affairs or to perform any other legal obligation as to such examination, when required by the department.

(3)  Whenever the financial condition of the arrangement is such that, if not modified or corrected, its continued operation would result in impairment or insolvency, the department may order the arrangement to file with the department and implement a corrective action plan designed to do one or more of the following:

(a)  Reduce the total amount of present potential liability for benefits by reinsurance or other means.

(b)  Reduce the volume of new business being accepted.

(c)  Reduce the expenses of the arrangement by specified methods.

(d)  Suspend or limit the writing of new business for a specified period of time.

(e)  Require an increase in the arrangement's net worth.

If the arrangement fails to submit a plan within 30 days after the department's order, or if the plan submitted is insufficient to correct the arrangement's financial condition, the department may order the arrangement to implement one or more of the corrective actions specified in this subsection.

(4)  In any order to suspend the authority of an arrangement to enroll new subscribers, the department shall specify the period during which the suspension is to be in effect and the conditions, if any, which must be met by the arrangement prior to reinstatement of its authority to enroll new subscribers. The order of suspension is subject to rescission or modification by further order of the department prior to the expiration of the suspension period. An arrangement's authority to enroll new subscribers shall not be reinstated unless it requests reinstatement, and shall not be reinstated if the department finds that the circumstances that gave rise to the suspension still exist.

History.--s. 6, ch. 85-212; s. 1, ch. 86-286; ss. 38, 187, 188, ch. 91-108; s. 4, ch. 91-429.

624.445  Order, notice, duration, effect of suspension or revocation; administrative fine.--

(1)  Suspension or revocation of an arrangement's certificate of authority shall be in accordance with ss. 624.420 and 624.421.

(2)  If the department finds that one or more grounds exist for the discretionary revocation or suspension of an arrangement's certificate of authority under ss. 624.436-624.446, the department may, in lieu of or in addition to such revocation or suspension, impose a fine upon such arrangement, in accordance with s. 624.4211.

History.--s. 6, ch. 85-212; s. 1, ch. 86-286; ss. 39, 187, 188, ch. 91-108; s. 4, ch. 91-429.

624.446  Rehabilitation, dissolution.--Any rehabilitation, liquidation, conservation, or dissolution of a multiple-employer welfare arrangement shall be conducted under the supervision of the department, which shall have all power with respect thereto granted to it under the laws governing the rehabilitation, liquidation, conservation, or dissolution of insurers.

History.--s. 6, ch. 85-212; s. 1, ch. 86-286; ss. 187, 188, ch. 91-108; s. 4, ch. 91-429.

624.447  Certificate of insurance for contractors.--Any insurer shall, upon request, verify a certificate of insurance on any contractor, as defined in s. 768.0425.

History.--s. 14, ch. 87-310; s. 188, ch. 91-108; s. 4, ch. 91-429; s. 11, ch. 95-211.

624.45  Participation of financial institutions in reinsurance and in insurance exchanges.--Subject to applicable laws relating to financial institutions and to any other applicable provision of the Florida Insurance Code, any financial institution or aggregation of such institutions may:

(1)  Own or control, directly or indirectly, any insurer which is authorized or approved by the department, which insurer transacts only reinsurance in this state and which actively engages in reinsuring risks located in this state.

(2)  Participate, directly or indirectly, as an underwriting member or as an investor in an underwriting member of any insurance exchange authorized in accordance with s. 629.401, which underwriting member transacts only aggregate or specific excess insurance over underlying self-insurance coverage for self-insurance organizations authorized under the Florida Insurance Code, for multiple-employer welfare arrangements, or for workers' compensation self-insurance trusts, in addition to any reinsurance the underwriting member may transact.

Nothing in this section shall be deemed to prohibit a financial institution from engaging in any presently authorized insurance activity.

History.--s. 3, ch. 86-160; s. 188, ch. 91-108; s. 4, ch. 91-429.

624.460  Short title.--Sections 624.460-624.488 may be cited as the "Commercial Self-Insurance Fund Act."

History.--s. 25, ch. 86-160; s. 188, ch. 91-108; s. 4, ch. 91-429.

624.461  Definition.--For the purposes of the Florida Insurance Code, "self-insurance fund" means both commercial self-insurance funds organized under s. 624.462 and group self-insurance funds organized under s. 624.4621. The term "self-insurance fund" does not include a governmental self-insurance pool created under s. 768.28(15).

History.--s. 77, ch. 93-415; s. 14, ch. 99-3.

624.462  Commercial self-insurance funds.--

(1)  Any group of persons may form a commercial self-insurance fund for the purpose of pooling and spreading liabilities of its group members in any commercial property or casualty risk or surety insurance. Any fund established pursuant to subparagraph (2)(a)1. may be organized as a corporation under chapter 607.

(2)  As used in ss. 624.460-624.488, "commercial self-insurance fund" or "fund" means a group of members, operating individually and collectively through a trust or corporation, that must be:

(a)  Established by:

1.  A not-for-profit trade association, industry association, or professional association of employers or professionals which has a constitution or bylaws, which is incorporated under the laws of this state, and which has been organized for purposes other than that of obtaining or providing insurance and operated in good faith for a continuous period of 1 year;

2.  A self-insurance trust fund organized pursuant to s. 627.357 and maintained in good faith for a continuous period of 1 year for purposes other than that of obtaining or providing insurance pursuant to this section. Each member of a commercial self-insurance trust fund established pursuant to this subsection must maintain membership in the self-insurance trust fund organized pursuant to s. 627.357; or

3.  A not-for-profit group comprised of no less than 10 condominium associations as defined in s. 718.103(2), which is incorporated under the laws of this state, which restricts its membership to condominium associations only, and which has been organized and maintained in good faith for a continuous period of 1 year for purposes other than that of obtaining or providing insurance.

(b)1.  In the case of funds established pursuant to subparagraph (a)2. or subparagraph (a)3., operated pursuant to a trust agreement by a board of trustees which shall have complete fiscal control over the fund and which shall be responsible for all operations of the fund. The majority of the trustees shall be owners, partners, officers, directors, or employees of one or more members of the fund. The trustees shall have the authority to approve applications of members for participation in the fund and to contract with an authorized administrator or servicing company to administer the day-to-day affairs of the fund.

2.  In the case of funds established pursuant to subparagraph (a)1., operated pursuant to a trust agreement by a board of trustees or as a corporation by a board of directors which board shall:

a.  Be responsible to members of the fund or beneficiaries of the trust or policyholders of the corporation;

b.  Appoint independent certified public accountants, legal counsel, actuaries, and investment advisers as needed;

c.  Approve payment of dividends to members;

d.  Approve changes in corporate structure; and

e.  Have the authority to contract with an administrator authorized under s. 626.88 to administer the day-to-day affairs of the fund including, but not limited to, marketing, underwriting, billing, collection, claims administration, safety and loss prevention, reinsurance, policy issuance, accounting, regulatory reporting, and general administration. The fees or compensation for services under such contract shall be comparable to the costs for similar services incurred by insurers writing the same lines of insurance, or where available such expenses as filed by boards, bureaus, and associations designated by insurers to file such data. A majority of the trustees or directors shall be owners, partners, officers, directors, or employees of one or more members of the fund.

(3)  Each member of a commercial self-insurance trust fund established pursuant to this section must maintain membership in the association or self-insurance trust fund established under s. 627.357. Membership in a not-for-profit trade association, industry association, or professional association of employers or professionals for the purpose of obtaining or providing insurance shall be in accordance with the constitution or bylaws of the association, and the dues, fees, or other costs of membership shall not be different for members obtaining insurance from the commercial self-insurance fund. The association shall not be liable for any actions of the fund nor shall it have any responsibility for establishing or enforcing any policy of the commercial self-insurance fund. Fees, services, and other aspects of the relationship between the association and the fund shall be subject to contractual agreement.

(4)  Any financial institution may participate as a member in a commercial self-insurance fund. A financial institution may not require as a condition precedent to making a loan that the prospective borrower insure with any commercial self-insurance fund. Any financial institution participating in a commercial self-insurance fund may participate only for the purpose of providing coverage on the financial institution's direct commercial property and commercial casualty or surety insurance exposures. The financial institution may not participate for the purpose of covering the direct or indirect exposures of its customers.

(5)  A commercial self-insurance fund must participate in the Florida Self-Insurance Fund Guaranty Association.

(6)  A governmental self-insurance pool created pursuant to s. 768.28(15) shall not be considered a commercial self-insurance fund.

History.--s. 26, ch. 86-160; s. 1, ch. 87-46; s. 14, ch. 90-249; s. 4, ch. 90-366; ss. 40, 188, ch. 91-108; s. 56, ch. 91-110; s. 4, ch. 91-429; s. 3, ch. 92-318; s. 78, ch. 93-415; s. 82, ch. 95-211.

624.4621  Group self-insurance funds.--

(1)  The department shall adopt rules that allow two or more employers to enter into agreements to pool their liabilities under chapter 440 for the purpose of qualifying as a group self-insurer's fund, which shall be classified as a self-insurer, and each employer member of such approved group shall be known as a group self-insurer's fund member and shall be classified as a self-insurer as defined in chapter 440. The agreement entered into under this section may provide that the pool will be liable for 80 percent, and the employer member will be liable for 20 percent, of the medical benefits due any employee for an injury compensable under this chapter up to the amount of $5,000. One hundred percent of the medical benefits above $5,000 due to an employee for one injury shall be paid by the pool. The agreement may also provide that each employer member will be responsible for up to the first $500 of medical benefits due each of its employees for each injury. The claim shall be paid by the pool, regardless of its size, which shall be reimbursed by the employer for any amounts required to be paid by the employer under the agreement.

(2)  The department shall adopt rules:

(a)  Requiring monetary reserves to be maintained by such self-insurers to insure their financial solvency; and

(b)  Governing their organization and operation to assure compliance with such requirements.

(3)  The department shall adopt rules implementing the reserve requirements in accordance with accepted actuarial techniques.

(4)  Any self-insurer established under this section, except for self-insurers that are state or local governmental entities, is required to carry reinsurance in accordance with rules adopted by the department.

(5)  A dividend or premium refund of any self-insurer established under this section, otherwise earned, may not be made contingent upon continued membership in the fund, renewal of any policy, or the payment of renewal premiums for membership in the fund or on any policy issued by such self-insurer. Before making any dividend or premium refund, the group self-insurer shall submit to the department the following information:

(a)  An audited certified financial statement.

(b)  An annual report of financial condition.

(c)  A loss reserve review by a qualified actuary.

The required information listed in paragraphs (a)-(c) shall be submitted annually, no later than 7 months after the end of the group self-insurer's fund year. A request for such dividend or premium refund may not be made before the required information is filed. The request for such dividend or premium refund must include a resolution of the board of trustees of the group self-insurer requesting approval of a specific amount to be distributed. A dividend, premium refund, or premium discount or credit must not discriminate on the basis of continued coverage or continued membership in the group self-insurer. The department shall review the request and shall issue a decision within 60 days after the filing. Failure to issue a decision within 60 days constitutes an approval of the request. Any dividend or premium refund approved by the department for distribution which cannot be paid to the applicable member or policyholder or former member or policyholder of the group self-insurer because the former member or policyholder cannot be reasonably located shall become the property of the group self-insurer.

(6)  The department may impose civil penalties not to exceed $100 per occurrence for violations of the provisions of this chapter or rules adopted pursuant hereto.

(7)  Premiums, contributions, and assessments received by a group self-insurer's fund are subject to ss. 624.509(1) and (2) and 624.5092, except that the tax rate shall be 1.6 percent of the gross amount of such premiums, contributions, and assessments.

(8)  This section does not apply to any program, intergovernmental agreement, cooperative effort, consortium, or agency through which two or more governmental entities, without pooling their liabilities, administer the payment of workers' compensation to their respective employees.

(9)  A group self-insurance fund shall participate in the Florida Self-Insurance Fund Guaranty Association.

(10)  Any self-insurance fund which holds a certificate of authority on or after January 1, 1998, shall maintain surplus to policyholders in a positive amount.

History.--s. 201/2, ch. 18413, 1937; CGL 1940 Supp. 5966(57); ss. 17, 35, ch. 69-106; ss. 16, 23, ch. 78-300; ss. 43, 124, ch. 79-40; s. 21, ch. 79-312; s. 18, ch. 83-305; s. 1, ch. 88-204; s. 17, ch. 88-206; s. 12, ch. 89-167; ss. 26, 43, ch. 89-289; s. 56, ch. 90-201; s. 52, ch. 91-1; s. 79, ch. 93-415; s. 4, ch. 97-262.

Note.--Former s. 440.57.

624.4622  Local government self-insurance funds.--

(1)  Any two or more local governmental entities may enter into interlocal agreements for the purpose of securing the payment of benefits under chapter 440, provided the local government self-insurance fund that is created must:

(a)  Have annual normal premiums in excess of $5 million;

(b)  Maintain a continuing program of excess insurance coverage and reserve evaluation to protect the financial stability of the fund in an amount and manner determined by a qualified and independent actuary;

(c)  Submit annually an audited fiscal year-end financial statement by an independent certified public accountant within 6 months after the end of the fiscal year to the department; and

(d)  Have a governing body which is comprised entirely of local elected officials.

(2)  A local government self-insurance fund that meets the requirements of this section is not subject to s. 624.4621 and is not required to file any report with the department under s. 440.38(2)(b) which is uniquely required of group self-insurer funds qualified under s. 624.4621. If any of the requirements of this section are not met, the local government self-insurance fund is subject to the requirements of s. 624.4621.

History.--s. 6, ch. 84-267; s. 43, ch. 89-289; ss. 44, 56, ch. 90-201; ss. 42, 52, ch. 91-1; s. 80, ch. 93-415.

Note.--Former s. 440.575.

624.46225  Self-insured public utilities.--A self-insured public utility, as authorized by s. 440.38(1)(c), may assume by contract the liabilities under this chapter of contractors and subcontractors, or each of them, employed by or on behalf of such public utility when performing work on or adjacent to property owned or used by the public utility.

History.--s. 19, ch. 83-305; s. 43, ch. 89-289; s. 56, ch. 90-201; s. 52, ch. 91-1; s. 81, ch. 93-415.

Note.--Former s. 440.571.

¹624.463  Conversion of self-insurance fund.--

(1)  A self-insurance fund may become a domestic mutual insurer under a plan and procedure which are approved by the department.

(2)  The department may not approve any plan or procedure unless:

(a)  It is equitable to the self-insurance fund members; and

(b)  The requirements imposed as to the formation of domestic mutual insurers are satisfied.

History.--s. 4, ch. 90-119; s. 18, ch. 90-249; s. 9, ch. 90-366; s. 188, ch. 91-108; s. 82, ch. 93-415.

¹Note.--Repealed effective October 1, 2001, by s. 188, ch. 91-108, and scheduled for review pursuant to s. 11.61. Section 4, ch. 91-429, repealed s. 11.61 effective April 5, 1993. Section 33, ch. 96-318, confirmed the repeal of s. 11.61.

624.464  Certificate of authority required; penalties.--

(1)  No person shall establish a commercial self-insurance fund unless such fund is issued a certificate of authority by the department pursuant to s. 624.466.

(2)(a)  Any person failing to hold a subsisting certificate of authority from the department while operating or maintaining a commercial self-insurance fund shall be subject to a fine of not less than $5,000 or more than $10,000 for each violation.

(b)  Any person who operates or maintains a commercial self-insurance fund without a subsisting certificate of authority from the department shall be subject to the cease and desist penalty powers of the department as set forth in ss. 626.9571, 626.9581, 626.9591, and 626.9601.

(c)  In addition to the penalties and other enforcement provisions of the Florida Insurance Code, the department is vested with the power to seek both temporary and permanent injunctive relief when:

1.  A commercial self-insurance fund is being operated by any person or entity without a subsisting certificate of authority.

2.  Any person, entity, or commercial self-insurance fund has engaged in any activity prohibited by the Florida Insurance Code made applicable by ss. 624.460-624.488 or by any rule adopted pursuant thereto.

3.  Any commercial self-insurance fund, person, or entity is renewing, issuing, or delivering a policy, contract, certificate, summary plan description, or other evidence of the benefits and coverages provided to members without a subsisting certificate of authority.

The department's authority to seek injunctive relief shall not be conditioned on having conducted any proceeding pursuant to chapter 120. The authority vested in the department by virtue of the operation of this section shall not act to reduce any other enforcement remedy or power to seek injunctive relief that may otherwise be available to the department.

History.--s. 27, ch. 86-160; s. 188, ch. 91-108; s. 4, ch. 91-429.

624.466  Application requirements for certificate of authority.--All applications for a certificate of authority for a commercial self-insurance fund shall be on a form furnished by the department and shall include or have attached the following:

(1)  The name of the fund and the location of the fund's principal office, which shall be maintained within this state.

(2)  The kinds of insurance initially proposed to be transacted and a copy of each policy, endorsement, and application form it initially proposes to issue or use.

(3)  A copy of the constitution, bylaws, or trust agreement which governs the operation of the fund. The constitution, bylaws, or trust agreement shall contain a provision prohibiting any distribution of surplus funds or profit except to members of the fund, as approved by the department pursuant to s. 624.473.

(4)  The names and addresses of the trustees of the fund. The department shall not grant or continue approval as to any fund if the department determines any trustee to be incompetent or untrustworthy; that any trustee has been found guilty of, or has pled guilty or no contest to, a felony, a crime involving moral turpitude, or a crime punishable by imprisonment of 1 year or more under the law of any state, territory, or country, whether or not a judgment or conviction has been entered; or that any trustee has had any type of insurance license revoked in this or any other state.

(5)  A copy of a properly executed indemnity agreement binding each fund member to individual, several, and proportionate liability as set forth in ss. 624.472 and 624.474.

(6)  A plan of risk management which has established measures and procedures to minimize both the frequency and severity of losses.

(7)  Proof of competent and trustworthy persons to administer or service the fund in the areas of claims adjusting, underwriting, risk management, and loss control.

(8)  Membership applications and the name and address of each member applying for coverage and a current financial statement on each member applying for coverage showing the aggregate net worth of all members to be not less than $500,000, a combined ratio of current assets to current liabilities of more than 1 to 1, and a combined working capital of an amount establishing financial strength and liquidity of the businesses to promptly provide for payment of the normal property or casualty claims proposed to be self-insured.

(9)(a)  An initial deposit of cash or securities of the type eligible for deposit by insurers under s. 625.52 in the amount of $100,000.

1.  All income from deposits shall belong to the fund and shall be transmitted to the fund as it becomes available.

2.  No judgment creditor or other claimant of the fund shall have the right to levy upon any of the assets or securities held as a deposit under this section.

(b)  In lieu of the deposit of cash or securities, a fund may file with the department a surety bond in like amount. The bond shall be one issued by an authorized surety insurer, shall be for the same purpose as the deposit in lieu of which it is filed, and shall be subject to the department's approval.

1.  No bond shall be approved unless it covers liabilities arising from all policies and contracts issued and entered into during the time the bond is in effect and unless the department is satisfied that the bond provides the same degree of security as would be provided by a deposit of securities.

2.  No bond shall be canceled or subject to cancellation unless at least 60 days' advance notice thereof in writing is filed with the department.

(c)  Deposits of securities or cash pursuant to this section shall be administered by the department in accordance with part III of chapter 625.

(10)(a)  Copies of acceptable excess insurance policies written by an insurer or insurers authorized or approved to transact insurance in this state, which excess insurance provides specific and aggregate limits and retention levels satisfactory to the department in accordance with sound actuarial principles. The department may waive this requirement if the fund demonstrates to the satisfaction of the department that its operation is and will be actuarially sound without obtaining excess insurance.

(b)  At least 10 days prior to the proposed effective date of the issuance of any policy, the trustees shall submit proof that the members have paid into a common claims fund in a designated depository cash premiums in an amount of not less than $50,000 or 10 percent of the estimated annual premium of the members at the inception, whichever is greater.

(11)  A copy of a fidelity bond or insurance policy from an authorized insurer providing coverage in an amount equal to not less than 10 percent of the funds handled annually and issued in the name of the fund covering its trustees, employees, administrator, or other individuals managing or handling the funds or assets of the fund. In no case may such bond or policy be less than $1,000 or more than $500,000, except that the department may for good cause prescribe an amount in excess of $500,000, subject to the 10-percent limitation of the preceding sentence.

(12)(a)  A plan of operation designed to provide sufficient revenues to pay current and future liabilities, as determined in accordance with sound actuarial principles.

(b)  A statement prepared by an actuary who is a member of the American Academy of Actuaries or the Casualty Actuarial Society establishing that the fund has prepared a plan of operation which is based on sound actuarial principles. The department shall not approve the fund unless the department determines that the plan established by the fund is designed to provide sufficient revenues to pay current and future liabilities, as determined in accordance with sound actuarial principles.

(13)  Such additional information as the department may reasonably require.

History.--s. 28, ch. 86-160; ss. 184, 188, ch. 91-108; s. 4, ch. 91-429.

624.468  Continuing requirements for certificate of authority.--After issuance of its initial certificate of authority a commercial self-insurance fund shall thereafter meet the following requirements as a condition of maintaining its certificate of authority:

(1)  Maintenance of competent and trustworthy persons to service the program, as further specified in s. 624.466(7). Written notice shall be provided to the department before changing the fund's method of fulfilling its servicing requirements.

(2)  Maintenance of a risk management program as further specified in s. 624.466(6).

(3)  Maintenance of a deposit of cash or securities in the amount of $100,000, or a surety bond in lieu thereof, as further specified in s. 624.466(9).

(4)  Maintenance of excess insurance in accordance with sound actuarial principles, unless waived by the department, as further specified in s. 624.466(10).

(5)  Maintenance of a fidelity bond, as further specified in s. 624.466(11).

(6)  Maintenance of appropriate funded loss reserves determined in accordance with sound actuarial principles satisfactory to the department.

(7)  Any self-insurance fund which holds a certificate of authority on or after January 1, 1998, shall maintain surplus to policyholders in a positive amount.

(8)  Each fund shall have and maintain its principal place of business in this state and shall therein make available to the department upon reasonable notice complete records of its assets, transactions, and affairs in accordance with such methods and systems as are customary for, or suitable to, the kind or kinds of business transacted.

(9)  A fund shall file such reports with the department as are required by s. 624.470.

(10)  A fund shall report to the department within 15 days of a determination that the actual premiums written or liability assumed or any other factor which substantially contributes to the financial condition of the plan deviates by more than 25 percent from the projections used in the most recent annual report, as required by s. 624.470 or, if the first annual report has not yet been filed, projections used in the initial plan of operation.

(11)  Payment of the annual license tax provided for in s. 624.501(3).

(12)  A fund shall maintain records which will confirm that membership in the fund is in accordance with the constitution or bylaws of the association as required by s. 624.462(3). The department may request from the fund, not more than annually, a certification which confirms that all members of the fund are members of the association and are in compliance with the constitution or bylaws of the association and may require that the fund submit a plan, acceptable to the department, to eliminate membership that does not comply with s. 624.462(3).

History.--s. 29, ch. 86-160; s. 15, ch. 90-249; s. 5, ch. 90-366; s. 188, ch. 91-108; s. 4, ch. 91-429; s. 12, ch. 95-211; s. 5, ch. 97-262.

¹624.469  Premiums written; restrictions.--

(1)  If, during the first 6 full calendar years of its operation, a commercial self-insurance fund's actual or projected annual earned premiums exceed four times the sum of 10 percent of the fund's statutory unearned premium as reported in its most recent report made pursuant to s. 624.470(2)(a) plus the aggregate excess of loss reinsurance limits available for the year reported, established in accordance with subsection (2), the department may establish by order maximum net annual premiums to be written by the fund consistent with maintaining this ratio between actual or projected earned premiums and unearned premiums and aggregate excess of loss reinsurance, unless the fund demonstrates to the department's satisfaction that exceeding such limitations does not endanger the financial condition of the fund or endanger the interest of the fund's members or that the fund's operation is and will be actuarially sound without obtaining excess reinsurance. Such orders shall be in effect no longer than the end of the current calendar year. The fund's self-funded reinsurance, if any, shall be included as aggregate excess of loss reinsurance at an amount that will be sufficient to cover unpaid losses as actuarially determined.

(2)  With respect to subsection (1), the aggregate excess of loss reinsurance shall attach at a point not greater than the loss ratio, above which an assessment would be indicated pursuant to rules of the department adopted under the authority of this chapter. As a minimum, the aggregate excess of loss reinsurance shall also provide coverage for 100 percent of the losses between the attachment point required by this section and a loss ratio of 100 percent.

(3)  After the 6th full calendar year of operation, a commercial self-insurance fund may, instead of limiting actual or projected premium to the ratio specified in subsection (1), maintain aggregate excess of loss reinsurance limits, subject to minimum limits enumerated in subsection (4), equal to the difference between the loss ratio at which an assessment would be indicated pursuant to rules adopted by the department and a loss ratio 10 percentage points higher than the highest loss ratio from the most recent 6 calendar years as indicated on the property and casualty annual statement report, after including excess statutory reserves over statement reserves, for auto liability, other liability, medical malpractice, workers' compensation, and credit insurance. For commercial lines of business other than auto liability, other liability, medical malpractice, workers' compensation, and credit, the amount required by Schedule P will be calculated in the same manner as auto liability and shall be calculated for each line of business individually. However, if a fund fails or chooses not to maintain the aggregate excess reinsurance as specified in this subsection, it shall be subject to the provisions of subsection (1).

(4)  A commercial self-insurance fund maintaining aggregate excess of loss reinsurance pursuant to subsection (3) must, as a minimum, maintain dollar limits of aggregate excess of loss reinsurance as follows:

(a)  For funds with actual or projected earned premiums of $5,000,000 or less, the minimum shall be equal to either 25 percent of actual or projected earned premiums or $500,000, whichever is greater.

(b)  For funds with actual or projected earned premiums greater than $5,000,000, the minimum shall be:

Actual or Projected

Percent of Earned

Earned Premiums

Premium

$5,000,000.01-$10,000,000 ....... 22 percent

$10,000,000.01-$25,000,000 ....... 19 percent

$25,000,000.01-$50,000,000 ....... 16 percent

$50,000,000.01-$100,000,000 ....... 13 percent

$100,000,000.01-$250,000,000 ....... 10 percent

$250,000,000.01 and greater ....... 7 percent

(5)  Notwithstanding the other provisions of this section, the department may, by order, establish maximum gross or net annual premiums to be written if the department, for good cause shown, finds that the actual or projected premium volume of the fund endangers the interests of the fund's policyholders or the financial condition of the fund.

History.--s. 16, ch. 90-249; s. 6, ch. 90-366; s. 188, ch. 91-108; s. 13, ch. 95-211.

¹Note.--Repealed effective October 1, 2001, by s. 188, ch. 91-108, and scheduled for review pursuant to s. 11.61. Section 4, ch. 91-429, repealed s. 11.61 effective April 5, 1993. Section 33, ch. 96-318, confirmed the repeal of s. 11.61.

624.470  Annual reports.--

(1)(a)  Every self-insurance fund shall, annually within 3 months of the end of the fiscal year, file a financial statement of the fund, including its balance sheet and a statement of operations for the preceding year, verified by the oath of a member of the board of trustees or by an administrative executive appointed by the board. An entry for future investment income, reported on or after January 1, 1998, may only be reflected as an aggregate write-in asset on the balance sheet of the annual and quarterly financial statements. Future investment income shall be calculated as the sum of the admitted asset value of Line 1 (Bonds) plus the admitted asset value of Line 6 (Cash and Short-Term Investments) as reported on page 2 in the annual or quarterly financial statement, times the 3-year treasury note yield as of the date of the financial statement, times 3.

(b)  For financial statements filed on or after January 1, 1998, future investment income may only be reported as an admitted asset by an Assessable Mutual or Self-Insurance Fund which reported future investment income in financial statements filed with the department prior to January 1, 1998.

(2)  Every fund shall, annually within 6 months of the end of the fiscal year, file a report with the department verified by the oath of a member of the board of trustees or by an administrative executive appointed by the board, containing the following information:

(a)  A financial statement of the fund, including its balance sheet and a statement of operations for the preceding year certified by an independent certified public accountant.

(b)  A report prepared by an actuary who is a member of the American Academy of Actuaries as to the actuarial soundness of the fund. The report shall consist of, but shall not be limited to, the following:

1.  Adequacy of premiums or contributions in paying claims and changes, if any, needed in the contribution rates to achieve or preserve a level of funding deemed adequate, which shall include a valuation of present assets, based on statement value, and prospective assets and liabilities of the plan and the extent of any unfunded accrued liabilities.

2.  A plan to amortize any unfunded liabilities and a description of actions taken to reduce unfunded liabilities.

3.  A description and explanation of actuarial assumptions.

4.  A schedule illustrating the amortization of any unfunded liabilities.

5.  A comparative review illustrating the level of funds available to the commercial self-insurance fund from rates, investment income, and other sources realized over the period covered by the report, indicating the assumptions used.

6.  A projection of the following year's plan of operation, including additional number of members, gross premiums to be written, and projected liabilities.

7.  A statement by the actuary that the report is complete and accurate and that in her or his opinion the techniques and assumptions used are reasonable and meet the requirements of this subsection.

8.  Other factors or statements as may be reasonably required by the department in order to determine the actuarial soundness of the plan.

(c)  Any changes in the constitution, bylaws, or trust agreement of the fund.

History.--s. 30, ch. 86-160; s. 188, ch. 91-108; s. 4, ch. 91-429; s. 188, ch. 97-102; s. 6, ch. 97-262.

624.472  Member's liability.--

(1)  The liability of each member other than a governmental entity for the obligations of the commercial self-insurance fund unrelated to governmental entities shall be individual, several, and proportionate, but not joint, except as provided in this section and s. 624.474. Nothing herein shall preclude a governmental entity from being a member of a fund established pursuant to this part. However, the liability of each governmental entity member shall be limited to the obligations of the commercial self-insurance fund related to governmental entities only and shall be individual, several, and proportionate, but not joint, except as provided in this section and s. 624.474.

(2)  Subject to the limitations of subsection (1), each member shall have a contingent assessment liability for payment of actual losses and expenses incurred while her or his policy was in force.

(3)  Each policy issued by the fund shall contain a statement of the contingent liability. Both the application for insurance and the policy shall contain, in contrasting color and in not less than 10-point type, the following statements: "This is a fully assessable policy. In the event the fund is unable to pay its obligations, policyholders will be required to contribute on a pro rata earned premium basis the money necessary to meet any unfilled obligations." In lieu of the notice provided for above, a fund with governmental entity members shall provide the following notice to members other than governmental entities: "This is a fully assessable policy. In the event the fund is unable to pay its obligations related to members which are not governmental entities, the policyholders which are not governmental entities will be required to contribute on a pro rata earned premium basis the money necessary to meet any such unfilled obligations." A fund with governmental entity members shall provide the following notice to governmental entity members: "This is a fully assessable policy. In the event the fund is unable to pay its obligations related to governmental entity members, governmental entity policyholders will be required to contribute on a pro rata earned premium basis the money necessary to meet any such unfilled obligations." If the application is signed by the applicant, it must be conclusively presumed that there was an informed, knowing acceptance of the assessment liability that exists as a result of participation in the fund.

History.--s. 31, ch. 86-160; s. 1, ch. 89-247; s. 188, ch. 91-108; s. 4, ch. 91-429; s. 3, ch. 92-328; s. 189, ch. 97-102.

624.473  Dividends.--A commercial self-insurance fund shall obtain the approval of the department prior to paying any dividend or refund to its members. No such dividend or refund may be approved until 12 months after the last day of the fiscal year for which the dividend or refund is payable, or such later time as the department may require in accordance with sound actuarial principles.

History.--s. 32, ch. 86-160; s. 188, ch. 91-108; s. 4, ch. 91-429.

624.474  Assessments.--

(1)  The trustees of a self-insurance fund operating as a trust, or the corporate directors of a self-insurance fund operating as a corporation, may assess from time to time members of a self-insurance fund liable therefor under the terms of their policies and pursuant to this section, or the department may assess the members in the event of liquidation of the fund.

(2)  Subject to the limitations of s. 624.472(1), each member's share of a deficiency for which an assessment is made shall be computed by applying to the premium earned on the member's policy or policies during the period to be covered by the assessment the ratio of the total deficiency to the total premiums earned during such period upon all policies subject to the assessment. In the event one or more members fail to pay an assessment, the other members are liable on a proportionate basis for an additional assessment. The fund, acting on behalf of all members who paid the additional assessment, shall institute legal action when necessary and appropriate to recover the assessment from members who failed to pay it.

(3)  In computing the earned premiums for the purposes of this section, the gross premium received by the fund for the policy shall be used as a base, deducting therefrom solely charges not recurring upon the renewal or extension of the policy.

(4)  No member shall have an offset against any assessment for which she or he is liable on account of any claim for unearned premium or losses payable.

History.--s. 33, ch. 86-160; s. 2, ch. 89-247; ss. 41, 188, ch. 91-108; s. 4, ch. 91-429; s. 83, ch. 93-415; s. 190, ch. 97-102.

624.4741  Venue in assessment actions.--In any action brought by a self-insurance fund to collect assessments levied under this chapter, venue lies where the fund maintains its principal place of business or, if the department or the Florida Group Self-Insurers Guaranty Association is a party to such action, in the Circuit Court of Leon County.

History.--s. 84, ch. 93-415.

624.475  Tax on premiums, contributions, and assessments.--Premiums, contributions, and assessments received by a commercial self-insurance fund are subject to ss. 624.509(1) and (2) and 624.5092, except that the tax rate shall be 1.6 percent of the gross amount of such premiums, contributions, and assessments.

History.--s. 4, ch. 88-206; s. 15, ch. 89-167; s. 188, ch. 91-108; s. 4, ch. 91-429; s. 14, ch. 95-211.

624.476  Impaired self-insurance funds.--

(1)  If the assets of a self-insurance fund are at any time insufficient to comply with the requirements of law or to discharge its liabilities, other than any liability on account of funds contributed by the trustees or others, and to meet the required conditions of financial soundness, or if a judgment against the fund has remained unsatisfied for 30 days, its trustees shall forthwith make up the deficiency or levy an assessment upon the members for the amount needed to make up the deficiency, but subject to the limitation set forth in the trust agreement or the policy.

(2)  If any fund levies an assessment pursuant to subsection (1), the department shall require the fund to consent to administrative supervision under part VI of this chapter. The department may waive the requirement to consent to administrative supervision for good cause.

(3)  If the trustees fail to make an assessment as required by subsection (1), the department shall order the trustees to do so. If the deficiency is not sufficiently made up within 60 days after the date of the order, the fund shall be deemed insolvent and grounds shall exist to proceed against the fund as provided for in part I of chapter 631.

(4)  Notwithstanding the requirement of the fund to make an assessment pursuant to subsection (1) or subsection (3), the department may at any time request to be appointed receiver for purposes of rehabilitation or liquidation if it is able to demonstrate that any grounds for rehabilitation or liquidation exist pursuant to s. 631.051 or s. 631.061.

History.--s. 34, ch. 86-160; s. 188, ch. 91-108; s. 4, ch. 91-429; s. 85, ch. 93-415; s. 7, ch. 97-262.

624.477  Liquidation, rehabilitation, reorganization, and conservation.--Any rehabilitation, liquidation, conservation, or dissolution of a self-insurance fund shall be conducted under the supervision of the department, which shall have all power with respect thereto granted to the fund under part I of chapter 631 governing the rehabilitation, liquidation, conservation, or dissolution of insurers and including all grounds for the appointment of a receiver contained in ss. 631.051 and 631.061.

History.--s. 8, ch. 97-262.

624.480  Filing, approval, and disapproval of forms.--

(1)  A basic insurance policy or application form for which written application is required and is to be a part of the policy or contract or printed rider or endorsement form may not be issued by a self-insurance fund unless the form has been filed with and approved by the department.

(2)  Every such filing shall be made not less than 30 days in advance of any such use or delivery. At the expiration of such 30 days, the form so filed shall be deemed approved unless prior thereto it has been affirmatively approved or disapproved by order of the department. The department may extend by not more than an additional 15 days the period within which it may so affirmatively approve or disapprove any such form, by giving notice of such extension before expiration of the initial 30-day period. At the expiration of any such period as so extended, and in the absence of such prior affirmative approval or disapproval, any such form must be deemed approved.

(3)  The department shall disapprove any form or withdraw any previous approval thereof only, if the form:

(a)  Is in any respect in violation of, or does not comply with, this code.

(b)  Contains or incorporates by reference, when such incorporation is otherwise permissible, any inconsistent, ambiguous, or misleading clauses, or any exceptions and conditions which deceptively affect the risk purported to be assumed in the general coverage of the contract.

(c)  Has any title, heading, or other indication of its provisions which is misleading.

(d)  Is printed or otherwise reproduced in such manner as to render any material provision of such form substantially illegible.

History.--s. 36, ch. 86-160; s. 188, ch. 91-108; s. 4, ch. 91-429; s. 86, ch. 93-415.

624.482  Making and use of rates.--

(1)  With respect to all classes of insurance which a self-insurance fund underwrites, the rates must not be excessive, inadequate, or unfairly discriminatory. In determining what rates, including credits and surcharges, are excessive, inadequate, or unfairly discriminatory, the department shall apply the same standards applicable to other insurers regulated by the department.

(2)  A rate shall be held to be excessive if the expense factors associated with the rate are not justified or are not reasonable for the benefits and services provided.

(3)  Rates shall be deemed inadequate if they are clearly insufficient, together with the investment income attributable to them, to sustain projected losses and expenses in the class of business to which they apply.

(4)  A rate shall be deemed inadequate as to the premium charged to a risk or group of risks if discounts or credits are allowed which exceed a reasonable reflection of expense savings and reasonably expected loss experience from the risk or group of risks.

(5)  If the department determines that the continued use of a rate for a coverage endangers the solvency of the fund, it may issue an order requiring the rate to be increased or requiring the fund to limit or cease writing the coverage.

(6)  A fund shall have the burden of proving that a rate filed is adequate if, during the first 5 years of issuing policies, the fund files a rate that is below the rate for loss and loss adjustment expenses for the same type and classification of insurance that has been filed by the Insurance Services Office and approved by the department.

(7)  Nothing herein shall be construed to prohibit the department from examining a fund pursuant to s. 624.3161.

(8)  A self-insurance fund shall file its rates, including credits and surcharge schedules, with the department for approval pursuant to the standards of this section and the procedures of s. 624.480(2).

(9)  Any self-insurance fund may subscribe to, or be a member of, a rating organization as prescribed in s. 627.231. A rating organization may not discriminate against a self-insurance fund as to conditions of subscription or membership.

(10)  Any self-insurance fund that writes workers' compensation insurance and employer's liability insurance is subject to, and shall make all rate filings for workers' compensation insurance and employer's liability insurance in accordance with, ss. 627.091, 627.101, 627.111, 627.141, 627.151, 627.171, 627.191, and 627.211.

History.--s. 37, ch. 86-160; s. 1, ch. 87-124; s. 8, ch. 91-106; ss. 42, 188, ch. 91-108; s. 4, ch. 91-429; s. 87, ch. 93-415.

624.483  Self-insurer members; payment of delinquent premiums and assessments.--Upon petition of the trustees of the following self-insurers groups: Printing Industry Associates, Allied Gasoline Retailers Association, Florida Plumbing and Mechanical Contractors, Florida State Retailers Association, Automotive Industries of Florida, Florida Nurserymen and Growers Association, Florida Pest Control Association, Florida Wholesalers Association, Florida Electrical Contractors, Florida Home Builders, Florida Restaurant Association, and Florida Nursing Home Association, who entered into agreements with Robert F. Coleman of Florida, Inc., as servicing agent, or any other self-insurers groups similarly situated, the department shall enter its order requiring the employer members and former members of said groups liable therefor to pay all delinquent premiums and all necessary assessments, such payments to be paid to the department and by it disbursed to said trustees to be used for the payment of workers' compensation claims and related compensation expenses.

History.--s. 2, ch. 67-606; ss. 17, 35, ch. 69-106; s. 23, ch. 78-300; ss. 44, 124, ch. 79-40; s. 21, ch. 79-312; s. 43, ch. 89-289; s. 56, ch. 90-201; s. 52, ch. 91-1; s. 88, ch. 93-415.

Note.--Former s. 440.58.

624.484  Registration of agent.--A self-insurance fund shall register with and designate the Insurance Commissioner as its agent solely for the purpose of receiving service of legal documents or process.

History.--s. 38, ch. 86-160; s. 188, ch. 91-108; s. 4, ch. 91-429; s. 89, ch. 93-415.

624.486  Examination.--Self-insurance funds licensed under ss. 624.460-624.488 are subject to periodic examination by the department in the same manner and subject to the same terms and conditions applicable to insurers under part II of this chapter.

History.--s. 39, ch. 86-160; s. 188, ch. 91-108; s. 4, ch. 91-429; s. 90, ch. 93-415.

624.487  Enforcement of specified insurance provisions; adoption of rules.--The department may enforce, with respect to group self-insurance funds established or operated under s. 624.4621, the provisions of s. 624.316, s. 624.424, s. 625.091, or s. 625.305 as they relate to workers' compensation insurers, and may adopt rules to implement the enforcement authority granted by this section.

History.--s. 132, ch. 91-108; s. 91, ch. 93-415.

Note.--Former s. 440.5705.

624.488  Applicability of related laws.--In addition to other provisions of the code cited in ss. 624.460-624.488:

(1)  Sections 624.155, 624.308, 624.414, 624.415, and 624.416(4); ss. 624.418-624.4211, except s. 624.418(2)(f); and s. 624.501;

(2)  Parts I, II, and III of chapter 625;

(3)  Applicable sections of part VI of chapter 626; s. 626.9541(1)(a), (b), (c), (d), (e), (f), (h), (i), (j), (k), (l), (m), (n), (o), (q), (u), (w), and (x); and ss. 626.9561-626.9641;

(4)  Sections 627.291, 627.413, 627.4132, 627.416, 627.418, 627.420, 627.421, 627.425, 627.426, 627.4265, 627.427, 627.428, 627.702, and 627.706; part XI of chapter 627; ss. 627.912, 627.913, and 627.918;

(5)  Section 628.361(2) and s. 628.6014; and

(6)  Parts I and V of chapter 631,

apply to self-insurance funds. Only those sections of the code that are expressly and specifically cited in ss. 624.460-624.489 apply to self-insurance funds.

History.--s. 40, ch. 86-160; s. 2, ch. 87-124; s. 31, ch. 90-119; ss. 184, 188, ch. 91-108; s. 4, ch. 91-429; s. 92, ch. 93-415; s. 9, ch. 97-262.

624.489  Liability of trustees of self-insurance trust fund and directors of self-insurance funds operating as corporations.--

(1)  A trustee of any self-insurance trust fund organized under the laws of this state is not personally liable for monetary damages to any person for any statement, vote, decision, or failure to act, regarding the management or policy of the fund, by a trustee, unless:

(a)  The trustee breached or failed to perform her or his duties as a trustee; and

(b)  The trustee's breach of, or failure to perform, her or his duties constitutes:

1.  A violation of the criminal law, unless the trustee had reasonable cause to believe her or his conduct was lawful or had no reasonable cause to believe her or his conduct was unlawful. A judgment or other final adjudication against a trustee in any criminal proceeding for violation of the criminal law estops that trustee from contesting the fact that her or his breach, or failure to perform, constitutes a violation of the criminal law; but does not estop the trustee from establishing that she or he had reasonable cause to believe that her or his conduct was lawful or had no reasonable cause to believe that her or his conduct was unlawful;

2.  A transaction from which the trustee derived an improper personal benefit, either directly or indirectly; or

3.  Recklessness or an act or omission which was committed in bad faith or with malicious purpose or in a manner exhibiting wanton and willful disregard of human rights, safety, or property.

(2)  For the purposes of this section, the term "recklessness" means the acting, or omission to act, in conscious disregard of a risk:

(a)  Known, or so obvious that it should have been known, to the trustee; and

(b)  Known to the trustee, or so obvious that it should have been known, to be so great as to make it highly probable that harm would follow from such action or omission.

(3)  The immunities from liability provided in this section with respect to trustees also apply to members of the board of directors of a commercial self-insurance fund organized as a corporation under chapter 607 if the board of directors has contracted with an administrator authorized under s. 626.88 to administer the day-to-day affairs of the fund.

History.--s. 8, ch. 87-245; ss. 43, 188, ch. 91-108; s. 4, ch. 91-429; s. 191, ch. 97-102.

624.501  Filing, license, appointment, and miscellaneous fees.

624.5015  Advance collection of fees and taxes; title insurers not to pay without reimbursement.

624.502  Service of process fee.

624.504  Liability for state, county tax.

624.505  County tax; determination; additional offices; nonresident agents.

624.506  County tax; deposit and remittance.

624.507  Municipal tax.

624.508  Insurer's license tax; when payable.

624.509  Premium tax; rate and computation.

624.5091  Retaliatory provision, insurers.

624.5092  Administration of taxes; payments.

624.5094  Casualty insurance premiums.

624.510  Tax on wet marine and transportation insurance.

624.5105  Community contribution tax credit; legislative findings; policy and purpose; authorization; limitations; eligibility and application requirements; administration; definitions; expiration.

624.5107  Child care tax credits; definitions; authorization; limitations; eligibility and application requirements; administration; expiration.

624.511  Tax statement; overpayments.

624.515  State Fire Marshal regulatory assessment and surcharge; levy and amount.

624.516  State Fire Marshal regulatory assessment and surcharge; deposit and use of funds.

624.517  State Fire Marshal regulatory assessment; reduction of assessment.

624.518  State Fire Marshal regulatory assessment and surcharge; tax return, overpayment.

624.519  Nonpayment of premium tax or fire marshal assessment; penalty.

624.520  Preemption by state.

624.521  Deposit of certain tax receipts; refund of improper payments.

624.523  Insurance Commissioner's Regulatory Trust Fund.

624.501  Filing, license, appointment, and miscellaneous fees.--The department shall collect in advance, and persons so served shall pay to it in advance, fees, licenses, and miscellaneous charges as follows:

(1)  Certificate of authority of insurer.

(a)  Filing application for original certificate of authority or modification thereof as a result of a merger, acquisition, or change of controlling interest due to a sale or exchange of stock, including all documents required to be filed therewith, filing fee ....... $1,500.00

(b)  Reinstatement fee ....... $50.00

(2)  Charter documents of insurer.

(a)  Filing articles of incorporation or other charter documents, other than at time of application for original certificate of authority, filing fee ....... $10.00

(b)  Filing amendment to articles of incorporation or charter, other than at time of application for original certificate of authority, filing fee ....... $5.00

(c)  Filing bylaws, when required, or amendments thereof, filing fee ....... $5.00

(3)  Annual license tax of insurer, each domestic insurer, foreign insurer, and alien insurer (except that, as to fraternal benefit societies insuring less than 200 members in this state and the members of which as a prerequisite to membership possess a physical handicap or disability, such license tax shall be $25) ....... $1,000.00

(4)  Statements of insurer, filing (except when filed as part of application for original certificate of authority), filing fees:

(a)  Annual statement ....... $250.00

(b)  Quarterly statement ....... $250.00

(5)  All insurance representatives, application for license, each filing, filing fee ....... $50.00

(6)  Insurance representatives, property, marine, casualty, and surety insurance.

(a)  Agent's original appointment and biennial renewal or continuation thereof, each insurer:

Appointment fee ....... $42.00

State tax ....... 12.00

County tax ....... 6.00
Total ....... $60.00

(b)  Solicitor's or customer representative's original appointment and biennial renewal or continuation thereof:

Appointment fee ....... $42.00

State tax ....... 12.00

County tax ....... 6.00
Total ....... $60.00

(c)  Nonresident agent's original appointment and biennial renewal or continuation thereof, appointment fee, each insurer ....... $60.00

(d)  Service representatives; managing general agents.

Original appointment and biennial renewal or continuation thereof, each insurer or managing general agent, whichever is applicable ....... $60.00

(7)  Life insurance agents.

(a)  Agent's original appointment and biennial renewal or continuation thereof, each insurer:

Appointment fee ....... $42.00

State tax ....... 12.00

County tax ....... 6.00
Total ....... $60.00

(b)  Nonresident agent's original appointment and biennial renewal or continuation thereof, appointment fee, each insurer ....... $60.00

(8)  Health insurance agents.

(a)  Agent's original appointment and biennial renewal or continuation thereof, each insurer:

Appointment fee ....... $42.00

State tax ....... 12.00

County tax ....... 6.00
Total ....... $60.00

(b)  Nonresident agent's original appointment and biennial renewal or continuation thereof, appointment fee, each insurer ....... $60.00

(9)  All limited appointments as agent, as provided for in s. 626.321. Agent's original appointment and biennial renewal or continuation thereof, each insurer:

Appointment fee ....... $42.00

State tax ....... 12.00

County tax ....... 6.00
Total ....... $60.00

(10)  Fraternal benefit society agents. Original appointment and biennial renewal or continuation thereof, each insurer:

Appointment fee ....... $42.00

State tax ....... 12.00

County tax ....... 6.00
Total ....... $60.00

(11)  Vending machines. Original appointment and biennial renewal or continuation thereof, each machine, appointment fee ....... $100.00

(12)  Surplus lines agent. Agent's appointment and biennial renewal or continuation thereof, appointment fee ....... $150.00

(13)  Adjusters:

(a)  Adjuster's original appointment and biennial renewal or continuation thereof, appointment fee ....... $60.00

(b)  Nonresident adjuster's original appointment and biennial renewal or continuation thereof, appointment fee ....... $60.00

(c)  Emergency adjuster's license, appointment fee ....... $10.00

(d)  Fee to cover actual cost of credit report, when such report must be secured by department.

(14)  Examination--Fee to cover actual cost of examination.

(15)  Temporary license and appointment as agent or adjuster, where expressly provided for, rate of fee for each month of the period for which the license and appointment is issued ....... $5.00

(16)  Issuance, reissuance, reinstatement, modification resulting in a modified license being issued, duplicate copy of any insurance representative license, or an appointment being reinstated ....... $5.00

(17)  Additional appointment continuation fees as prescribed in chapter 626 ....... $5.00

(18)  Filing application for permit to form insurer as referred to in chapter 628, filing fee ....... $25.00

(19)  Annual license fee of rating organization, each domestic or foreign organization ....... $25.00

(20)  Miscellaneous services:

(a)  For copies of documents or records on file with the department, per page ....... $ .50

(b)  For each certificate of the department under its seal, authenticating any document or other instrument (other than a license or certificate of authority) ....... $5.00

(c)  For preparing lists of agents, solicitors, adjusters, and other insurance representatives, and for other miscellaneous services, such reasonable charge as may be fixed by the department.

(d)  For processing requests for approval of continuing education courses, processing fee ....... $100.00

(e)  Insurer's registration fee for agent exchanging business more than 24 times in calendar year under s. 626.752, s. 626.793, or s. 626.837, registration fee per agent per year ....... $30.00

(21)  Insurance agency or adjusting firm, 3-year license ....... $60.00

(22)  Limited surety agent, professional bail bond agent, or runner as defined in s. 648.25, each agent and each insurer represented. Original appointment and biennial renewal or continuation thereof, each agent or insurer, whichever is applicable:

Appointment fee ....... $44.00

State tax ....... 24.00

County tax ....... 12.00
Total ....... $80.00

(23)  Health care risk manager. Original appointment and biennial renewal or continuation thereof, appointment fee ....... $40.00

(24)  Certain military installations, as authorized under s. 626.322: original appointment and biennial renewal or continuation thereof, each insurer ....... $20.00

(25)  Filing application for original certificate of authority for third-party administrator or original certificate of approval for a service company, including all documents required to be filed therewith, filing fee ....... $100.00

(26)  Fingerprinting processing fee--Fee to cover fingerprint processing.

(27)  Sales representatives, miscellaneous lines. Original appointment and biennial renewal or continuation thereof, appointment fee ....... $60.00

(28)  Reinsurance intermediary:

(a)  Application filing and license fee ....... $50.00

(b)  Original appointment and biennial renewal or continuation thereof, appointment fee ....... $60.00

(29)  Title insurance agents:

(a)  Agent's original appointment or biennial renewal or continuation thereof, each insurer:

Appointment fee ....... $42.00

State tax ....... 12.00

County tax ....... 6.00
Total ....... $60.00

(b)  Agency original appointment or biennial renewal or continuation thereof, each insurer:

Appointment fee ....... $42.00

State tax ....... 12.00

County tax ....... 6.00
Total ....... $60.00

(c)  Filing for title insurance agent's license:

Application for filing, each filing, filing fee ....... $10.00

(d)  Additional appointment continuation fee as prescribed by s. 626.843 ....... $5.00

(e)  Title insurer and title insurance agency administrative surcharge:

1.  On or before January 30 of each calendar year, each title insurer shall pay to the department for each licensed title insurance agency appointed by the title insurer and for each retail office of the insurer on January 1 of that calendar year an administrative surcharge of $200.00.

2.  On or before January 30 of each calendar year, each licensed title insurance agency shall remit to the department an administrative surcharge of $200.00.

The administrative surcharge may be used solely to defray the costs to the department in its examination or audit of title insurance agencies and retail offices of title insurers and to gather title insurance data for statistical purposes in its regulation of title insurance.

History.--s. 74, ch. 59-205; s. 1, ch. 63-491; s. 5, ch. 65-269; ss. 1, 2, 3, 4, 5, ch. 67-278; s. 1, ch. 69-196; s. 1, ch. 69-197; ss. 13, 35, ch. 69-106; s. 1, ch. 70-208; s. 1, ch. 70-439; s. 23, ch. 71-86; s. 3, ch. 76-168; s. 1, ch. 77-237; s. 1, ch. 77-457; s. 65, ch. 82-243; s. 7, ch. 82-386; s. 8, ch. 83-288; s. 39, ch. 85-175; s. 2, ch. 85-208; s. 12, ch. 87-226; s. 5, ch. 88-166; s. 192, ch. 90-363; s. 67, ch. 91-106; s. 44, ch. 92-146; s. 5, ch. 92-324; s. 1, ch. 93-253; s. 192, ch. 97-102; s. 4, ch. 98-199.

624.5015  Advance collection of fees and taxes; title insurers not to pay without reimbursement.--

(1)  The Department of Insurance shall collect in advance from the applicant or licensee fees and taxes as provided in s. 624.501.

(2)  A title insurer shall not pay directly or indirectly without reimbursement from a title insurance agent any appointment fee required under this section. The failure of a title insurance agent to make reimbursement is not a ground for cancellation of the title insurance agent's appointment by the title insurer.

History.--s. 8, ch. 85-185; s. 2, ch. 89-305; s. 193, ch. 90-363; s. 6, ch. 92-324.

624.502  Service of process fee.--In all instances as provided in any section of the insurance code and s. 48.151(3) in which service of process is authorized to be made upon the Insurance Commissioner and Treasurer, the plaintiff shall pay to the department a fee of $15 for such service of process, which fee shall be deposited into the Insurance Commissioner's Regulatory Trust Fund.

History.--s. 1, ch. 67-260; ss. 13, 35, ch. 69-106; s. 3, ch. 76-168; s. 1, ch. 77-237; s. 1, ch. 77-457; s. 66, ch. 82-243; s. 5, ch. 90-119; s. 15, ch. 99-3.

624.504  Liability for state, county tax.--

(1)  Each authorized insurer that uses insurance agents in this state shall be liable for and shall pay the state and county taxes required therefor under s. 624.501 or s. 624.505.

(2)  Each insurance agent in this state that uses solicitors shall be liable for and shall pay the state and county taxes required therefor under s. 624.501.

History.--s. 76, ch. 59-205; s. 3, ch. 76-168; s. 1, ch. 77-237; s. 1, ch. 77-457; s. 194, ch. 90-363.

624.505  County tax; determination; additional offices; nonresident agents.--

(1)  The county tax provided for under s. 624.501 as to an agent shall be paid by each insurer for each agent only for the county where the agent resides, or if such agent's place of business is located in a county other than that of her or his residence, then for the county wherein is located such place of business. If an agent maintains an office or place of business in more than one county, the tax shall be paid for her or him by each such insurer for each county wherein the agent represents such insurer and has a place of business. When under this subsection an insurer is required to pay county tax for an agent for a county or counties other than the agent's county of residence, the insurer shall designate the county or counties for which the taxes are paid.

(2)  The county tax provided for under s. 624.501 as to a solicitor shall be paid only for the county wherein is located the office or place of business of the agent by whom the solicitor is employed and out of which she or he works as her or his permanent place of business. When under this subsection an agent is required to pay a county tax for a solicitor for a county other than the solicitor's county of residence, the agent shall designate the county for which the tax is paid.

(3)  A county tax of $3 per year shall be paid by each insurer for each county in this state in which an agent who resides outside of this state represents and engages in person in the activities of an agent for the insurer. This provision shall not be deemed to authorize any activities by an agent which are otherwise prohibited under this code.

History.--s. 77, ch. 59-205; s. 3, ch. 76-168; s. 1, ch. 77-237; s. 1, ch. 77-457; s. 195, ch. 90-363; s. 193, ch. 97-102.

624.506  County tax; deposit and remittance.--

(1)  The Insurance Commissioner and Treasurer shall deposit in the Agents and Solicitors County Tax Trust Fund all moneys accepted as county tax under this part. She or he shall keep a separate account for all moneys so collected for each county and, after deducting therefrom the service charges provided for in s. 215.20, shall remit the balance to the counties.

(2)  The payment and collection of county tax under this chapter shall be in lieu of collection thereof by the respective county tax collectors.

(3)  The Comptroller shall annually, as of January 1 following the date of collection, and thereafter at such other times as the Insurance Commissioner and Treasurer may elect, draw her or his warrants on the State Treasury payable to the respective counties entitled to receive the same for the full net amount of such taxes to each county.

History.--s. 78, ch. 59-205; s. 2, ch. 61-119; s. 6, ch. 65-269; ss. 13, 35, ch. 69-106; s. 3, ch. 76-168; s. 1, ch. 77-237; s. 1, ch. 77-457; s. 14, ch. 85-61; s. 196, ch. 90-363; s. 118, ch. 91-112; s. 194, ch. 97-102.

624.507  Municipal tax.--Municipal corporations may require a tax of insurance agents and solicitors not to exceed 50 percent of the state tax specified as to such agents and solicitors under this part, and unless otherwise authorized by law. Such a tax may be required only by a municipal corporation within the boundaries of which is located the agent's business office, or if no such office is required under this code, by the municipal corporation of the agent's place of residence.

History.--s. 79, ch. 59-205; s. 3, ch. 76-168; s. 1, ch. 77-237; s. 1, ch. 77-457; s. 422, ch. 81-259; s. 197, ch. 90-363.

624.508  Insurer's license tax; when payable.--

(1)  The insurer's license tax provided for in s. 624.501(3) shall be paid, by an insurer newly applying for a certificate of authority to transact insurance in this state, prior to and contingent upon the issuance of its original certificate of authority. If the certificate of authority is not issued, the license tax payment shall be refunded to the insurer. The license tax so paid by a newly authorized insurer shall cover the period expiring on the June 1 next following the date of its original certificate of authority.

(2)  Each authorized insurer shall pay the license tax annually on or before June 1.

History.--s. 80, ch. 59-205; s. 3, ch. 63-149; s. 3, ch. 76-168; s. 1, ch. 77-237; s. 1, ch. 77-457; s. 68, ch. 82-243.

624.509  Premium tax; rate and computation.--

(1)  In addition to the license taxes provided for in this chapter, each insurer shall also annually, and on or before March 1 in each year, except as to wet marine and transportation insurance taxed under s. 624.510, pay to the Department of Revenue a tax on insurance premiums, premiums for title insurance, or assessments, including membership fees and policy fees and gross deposits received from subscribers to reciprocal or interinsurance agreements, and on annuity premiums or considerations, received during the preceding calendar year, the amounts thereof to be determined as set forth in this section, to wit:

(a)  An amount equal to 1.75 percent of the gross amount of such receipts on account of life and health insurance policies covering persons resident in this state and on account of all other types of policies and contracts (except annuity policies or contracts taxable under paragraph (b)) covering property, subjects, or risks located, resident, or to be performed in this state, omitting premiums on reinsurance accepted, and less return premiums or assessments, but without deductions:

1.  For reinsurance ceded to other insurers;

2.  For moneys paid upon surrender of policies or certificates for cash surrender value;

3.  For discounts or refunds for direct or prompt payment of premiums or assessments; and

4.  On account of dividends of any nature or amount paid and credited or allowed to holders of insurance policies; certificates; or surety, indemnity, reciprocal, or interinsurance contracts or agreements; and

(b)  An amount equal to 1 percent of the gross receipts on annuity policies or contracts paid by holders thereof in this state.

(2)  Payment by the insurer of the license taxes and premium receipts taxes provided for in this part of this chapter is a condition precedent to doing business within this state.

(3)  Notwithstanding other provisions of law, the distribution of the premium tax and any penalties or interest collected thereunder shall be made to the General Revenue Fund in accordance with rules adopted by the Department of Revenue and approved by the Administration Commission.

¹(4)  The intangible tax imposed under chapter 199, the income tax imposed under chapter 220, and the emergency excise tax imposed under chapter 221 which are paid by any insurer shall be credited against, and to the extent thereof shall discharge, the liability for tax imposed by this section for the annual period in which such tax payments are made. As to any insurer issuing policies insuring against loss or damage from the risks of fire, tornado, and certain casualty lines, the tax imposed by this section, as intended and contemplated by this subsection, shall be construed to mean the net amount of such tax remaining after there has been credited thereon such gross premium receipts tax as may be payable by such insurer in pursuance of the imposition of such tax by any incorporated cities or towns in the state for firefighters' relief and pension funds and police officers' retirement funds maintained in such cities or towns, as provided in and by relevant provisions of the Florida Statutes. For purposes of this subsection, payments of estimated income tax under chapter 220 and of estimated emergency excise tax under chapter 221 shall be deemed paid either at the time the insurer actually files its annual returns under chapter 220 or at the time such returns are required to be filed, whichever first occurs, and not at such earlier time as such payments of estimated tax are actually made.

(5)  There shall be allowed a credit against the net tax imposed by this section equal to 15 percent of the amount paid by the insurer in salaries to employees located or based within this state and who are covered by the provisions of chapter 443. For purposes of this subsection:

(a)  The term "salaries" does not include amounts paid as commissions.

(b)  The term "employees" does not include independent contractors or any person whose duties require that the person hold a valid license under the Florida Insurance Code, except persons defined in ss. 626.081, 626.091, and 626.101.

(c)  The term "net tax" means the tax imposed by this section after applying the calculations and credits set forth in subsection (4).

(6)  The total of the credit granted for the taxes paid by the insurer under chapters 220 and 221 and the credit granted by subsection (5) shall not exceed 65 percent of the tax due under subsection (1) after deducting therefrom the taxes paid by the insurer under ss. 175.101 and 185.08 and any assessments pursuant to s. 440.51.

²(7)  Credits and deductions against the tax imposed by this section shall be taken in the following order: deductions for assessments made pursuant to s. 440.51; credits for taxes paid under ss. 175.101 and 185.08; credits for income taxes paid under chapter 220, the emergency excise tax paid under chapter 221 and the credit allowed under subsection (5), as these credits are limited by subsection (6); credits for intangible taxes paid under chapter 199; all other available credits and deductions.

²(8)  From and after July 1, 1980, the premium tax authorized by this section shall not be imposed upon receipts of annuity premiums or considerations paid by holders in this state and from and after July 1, 1991, the intangible tax imposed by chapter 199 shall not be imposed on assets equal to the statutory legal reserves of annuity products maintained by insurance companies on behalf of their holders if the tax savings derived are credited to the annuity holders. Upon request by the Department of Revenue, any insurer availing itself of this provision shall submit to the department evidence which establishes that the tax savings derived have been credited to annuity holders. As used in this subsection, the term "holders" shall be deemed to include employers contributing to an employee's pension, annuity, or profit-sharing plan.

(9)  As used in this section "insurer" includes any entity subject to the tax imposed by this section.

(10)  The tax imposed by this section does not apply to monoline flood premiums received by insurers for flood policies which are not subsidized by the Federal Government or an agency thereof.

History.--s. 81, ch. 59-205; ss. 21, 35, ch. 69-106; ss. 1, 3, ch. 71-9(B); s. 3, ch. 71-984; s. 3, ch. 76-168; s. 1, ch. 77-237; s. 1, ch. 77-457; s. 1, ch. 79-247; s. 1, ch. 80-18; s. 17, ch. 81-178; s. 69, ch. 82-243; ss. 6, 7, ch. 82-385; s. 8, ch. 84-170; s. 26, ch. 87-99; s. 13, ch. 87-226; s. 1, ch. 88-206; ss. 1, 22, ch. 89-167; s. 96, ch. 90-132; s. 11, ch. 90-249; s. 10, ch. 90-366; s. 39, ch. 92-173; s. 195, ch. 97-102; s. 12, ch. 98-132; s. 1, ch. 99-286.

¹Note.--

A.  Section 13, ch. 98-132, provides that "[f]or tax years beginning after December 31, 1999, no credit under section 624.509(4), Florida Statutes, for intangible tax imposed under chapter 199, Florida Statutes, shall be available."

B.  Section 12, ch. 98-132, amended subsection (4), effective July 1, 2000, to read:

(4)  The income tax imposed under chapter 220 and the emergency excise tax imposed under chapter 221 which are paid by any insurer shall be credited against, and to the extent thereof shall discharge, the liability for tax imposed by this section for the annual period in which such tax payments are made. As to any insurer issuing policies insuring against loss or damage from the risks of fire, tornado, and certain casualty lines, the tax imposed by this section, as intended and contemplated by this subsection, shall be construed to mean the net amount of such tax remaining after there has been credited thereon such gross premium receipts tax as may be payable by such insurer in pursuance of the imposition of such tax by any incorporated cities or towns in the state for firefighters' relief and pension funds and police officers' retirement funds maintained in such cities or towns, as provided in and by relevant provisions of the Florida Statutes. For purposes of this subsection, payments of estimated income tax under chapter 220 and of estimated emergency excise tax under chapter 221 shall be deemed paid either at the time the insurer actually files its annual returns under chapter 220 or at the time such returns are required to be filed, whichever first occurs, and not at such earlier time as such payments of estimated tax are actually made.

²Note.--Section 12, ch. 98-132, amended subsections (7) and (8), effective July 1, 2000, to read:

(7)  Credits and deductions against the tax imposed by this section shall be taken in the following order: deductions for assessments made pursuant to s. 440.51; credits for taxes paid under ss. 175.101 and 185.08; credits for income taxes paid under chapter 220, the emergency excise tax paid under chapter 221 and the credit allowed under subsection (5), as these credits are limited by subsection (6); all other available credits and deductions.

(8)  From and after July 1, 1980, the premium tax authorized by this section shall not be imposed upon receipts of annuity premiums or considerations paid by holders in this state if the tax savings derived are credited to the annuity holders. Upon request by the Department of Revenue, any insurer availing itself of this provision shall submit to the department evidence which establishes that the tax savings derived have been credited to annuity holders. As used in this subsection, the term "holders" shall be deemed to include employers contributing to an employee's pension, annuity, or profit-sharing plan.

624.5091  Retaliatory provision, insurers.--

(1)  When by or pursuant to the laws of any other state or foreign country any taxes, licenses, and other fees, in the aggregate, and any fines, penalties, deposit requirements, or other material obligations, prohibitions, or restrictions are or would be imposed upon Florida insurers or upon the agents or representatives of such insurers, which are in excess of such taxes, licenses, and other fees, in the aggregate, or which are in excess of the fines, penalties, deposit requirements, or other obligations, prohibitions, or restrictions directly imposed upon similar insurers, or upon the agents or representatives of such insurers, of such other state or country under the statutes of this state, so long as such laws of such other state or country continue in force or are so applied, the same taxes, licenses, and other fees, in the aggregate, or fines, penalties, deposit requirements, or other material obligations, prohibitions, or restrictions of whatever kind shall be imposed by the Department of Revenue upon the insurers, or upon the agents or representatives of such insurers, of such other state or country doing business or seeking to do business in this state. In determining the taxes to be imposed under this section, 80 percent of the credit provided by s. 624.509(5), as limited by s. 624.509(6) and further determined by s. 624.509(7), shall not be taken into consideration.

(2)  Any tax, license, or other obligation imposed by any city, county, or other political subdivision or agency of a state, jurisdiction, or foreign country on Florida insurers or their agents or representatives shall be deemed to be imposed by such state, jurisdiction, or foreign country within the meaning of subsection (1).

(3)  This section does not apply as to personal income taxes, nor as to sales or use taxes, nor as to ad valorem taxes on real or personal property, nor as to reimbursement premiums paid to the Florida Hurricane Catastrophe Fund, nor as to emergency assessments paid to the Florida Hurricane Catastrophe Fund, nor as to special purpose obligations or assessments imposed in connection with particular kinds of insurance other than property insurance, except that deductions, from premium taxes or other taxes otherwise payable, allowed on account of real estate or personal property taxes paid shall be taken into consideration by the department in determining the propriety and extent of retaliatory action under this section.

(4)  For the purposes of this section, a "similar insurer" is an insurer with identical premiums, personnel, and property to that of the alien or foreign insurer's Florida premiums, personnel, and property. The similar insurer's premiums, personnel, and property shall be used to calculate any taxes, licenses, other fees, in the aggregate, or any fines, penalties, deposit requirements, or other material obligations, prohibitions, or restrictions that are or would be imposed under Florida law and under the law of the foreign or alien insurer's state of domicile.

(5)  The excess amount of all fees, licenses, and taxes collected by the Department of Revenue under this section over the amount of similar fees, licenses, and taxes provided for in this part, together with all fines, penalties, or other monetary obligations collected under this section and ss. 626.711 and 626.743 exclusive of such fees, licenses, and taxes, shall be deposited by the Department of Revenue to the credit of the Insurance Commissioner's Regulatory Trust Fund; provided that such excess amount shall not exceed $125,000 for 1992, and for any subsequent year shall not exceed $125,000 adjusted annually by the lesser of 20 percent or the growth in the total of such excess amount. The remainder of such excess amount shall be deposited into the General Revenue Fund.

History.--s. 73, ch. 59-205; s. 1, ch. 65-233; s. 4, ch. 65-269; ss. 13, 35, ch. 69-106; s. 3, ch. 76-168; s. 1, ch. 77-457; ss. 2, 3, ch. 81-318; ss. 62, 64, 809(1st), ch. 82-243; s. 25, ch. 87-99; s. 13, ch. 89-167; s. 38, ch. 90-132; s. 1, ch. 91-425; s. 7, ch. 92-324; s. 4, ch. 93-409; ss. 13, 14, ch. 94-314; s. 18, ch. 94-353.

Note.--Former s. 624.429.

624.5092  Administration of taxes; payments.--

(1)  The Department of Revenue shall administer, audit, and enforce the assessment and collection of those taxes to which this section is applicable. The Department of Insurance is authorized to share information with the Department of Revenue as necessary to verify premium tax or other tax liability arising under such taxes and credits which may apply thereto.

(2)(a)  Installments of the taxes to which this section is applicable shall be due and payable on April 15, June 15, and October 15 in each year, based upon the estimated gross amount of receipts of insurance premiums or assessments received during the immediately preceding calendar quarter. A final payment of tax due for the year shall be made at the time the taxpayer files her or his return for such year. On or before March 1 in each year, an annual return shall be filed showing, by quarters, the gross amount of receipts taxable for the preceding year and the installment payments made during that year.

(b)  Any taxpayer who fails to report and timely pay any installment of tax, who estimates any installment of tax to be less than 90 percent of the amount finally shown to be due in any quarter, or who fails to report and timely pay any tax due with the final return is in violation of this section and is subject to a penalty of 10 percent on any underpayment of taxes or delinquent taxes due and payable for that quarter or on any delinquent taxes due and payable with the final return. Any taxpayer paying, for each installment required in this section, 27 percent of the amount of the net tax due as reported on her or his return for the preceding year shall not be subject to the penalty provided by this section for underpayment of estimated taxes.

(c)  When any taxpayer fails to pay any amount due under this section, or any portion thereof, on or before the day when such tax or installment of tax is required by law to be paid, there shall be added to the amount due interest at the rate of 12 percent per year from the date due until paid.

(d)  All penalties and interest imposed on those taxes to which this section is applicable shall be payable to and collectible by the Department of Revenue in the same manner as if they were a part of the tax imposed.

(e)  The Department of Revenue may settle or compromise any such interest or penalties imposed on those taxes to which this section is applicable pursuant to s. 213.21.

(3)  This section is applicable to taxes imposed by ss. 624.4621, 624.475, 624.509-624.515, 627.357, 629.5011, and 636.066.

History.--s. 2, ch. 89-167; s. 45, ch. 90-132; s. 4, ch. 92-318; s. 4, ch. 93-128; s. 55, ch. 93-148; s. 22, ch. 93-233; s. 15, ch. 95-211; s. 196, ch. 97-102; s. 16, ch. 99-3.

624.5094  Casualty insurance premiums.--Notwithstanding any statutory provision to the contrary, for the purposes of calculating the annual assessments for the Special Disability Trust Fund under s. 440.49 and expenses of administration under s. 440.51, any amount paid or credited as dividends or premium refunds in the same calendar year by the insurer to its policyholders must be deducted from "net premium," "net premiums written," "direct premium," and "net premium collected" for the calendar year. Such offset for dividends or premium refunds paid or credited for the current year must be applied against the current year's net premium for that year's assessment regardless of the policy year for which the dividends or premium refunds are being reimbursed.

History.--s. 7, ch. 97-292.

624.510  Tax on wet marine and transportation insurance.--

(1)  On or before March 1 of each year each insurer shall file with the Department of Revenue a report of its gross underwriting profit on wet marine and transportation insurance, as defined in s. 624.607(2), written in this state during the calendar year next preceding and shall at the same time pay to the Department of Revenue a tax of 0.75 percent of such gross underwriting profit.

(2)  Such gross underwriting profit shall be ascertained by deducting from the net premiums (i.e., gross premiums less all return premiums and premiums for reinsurance) on such wet marine and transportation insurance contracts the net losses paid (i.e., gross losses paid less salvage and recoveries on reinsurance ceded) during such calendar year under such contracts.

(3)  The income tax imposed under chapter 220 which is paid by any insurer shall be credited against, and to the extent thereof shall discharge, the liability for tax imposed by this section for the annual period in which such income tax payment is made. The aggregate income tax credit for any insurer under this subsection and s. 624.509(4) shall not exceed the amount of tax paid under chapter 220 in any calendar year. As to any insurer issuing policies insuring against loss or damage from the risks of fire, tornado, and certain casualty lines, the tax imposed by this section, as intended and contemplated by this subsection, shall be construed to mean the net amount of such tax remaining after there has been credited thereon such gross premium receipts tax as may be payable by such insurer in pursuance of the imposition of such tax by any incorporated cities or towns in the state for firefighters' relief and pension funds and police officers' retirement funds maintained in such cities or towns, as provided in and by relevant provisions of Florida Statutes. For purposes of this subsection, payments of estimated income tax under chapter 220 shall be deemed paid either at the time the insurer actually files its annual return under chapter 220 or at the time such return is required to be filed, whichever first occurs, and not at such earlier time as such payments of estimated tax are actually made.

History.--s. 82, ch. 59-205; ss. 21, 35, ch. 69-106; s. 4, ch. 71-984; s. 3, ch. 76-168; s. 1, ch. 77-237; s. 1, ch. 77-457; s. 70, ch. 82-243; s. 27, ch. 87-99; s. 197, ch. 97-102.

624.5105  Community contribution tax credit; legislative findings; policy and purpose; authorization; limitations; eligibility and application requirements; administration; definitions; expiration.--

(1)  LEGISLATIVE FINDINGS.--The Legislature finds that:

(a)  Conditions of blight, evidenced by extensive deterioration of public and private facilities, abandonment of sound structures, and high unemployment, exist in the counties and municipalities, which conditions impede the conservation and development of healthy, safe, and economically viable communities.

(b)  The deterioration of housing and industrial, commercial, and public facilities contributes to the decline of neighborhoods and communities and leads to the loss of their historic character and the sense of community which this inspires; reduces the value of property comprising the tax base of local communities; discourages private investment; and requires a disproportionate expenditure of public funds for the social services, unemployment benefits, and police protection required to combat the social and economic problems found in slum communities.

(c)  In order to ultimately restore social and economic viability to enterprise zones, it is necessary to renovate or construct new housing, water and sewer infrastructure, and transportation facilities and to specifically provide mechanisms to attract and encourage private economic activity.

(d)  The various local governments and other redevelopment organizations now undertaking physical revitalization projects are limited by tightly constrained budgets and inadequate resources.

(e)  In order to significantly improve revitalization efforts by local governments and community development organizations and to retain as much of the historic character of our communities as possible, it is necessary to provide additional resources, and the participation of private enterprise in revitalization efforts is an effective means for accomplishing that goal.

(2)  POLICY AND PURPOSE.--It is the policy of this state to encourage the participation of insurers in revitalization projects undertaken by public redevelopment organizations. The purpose of this section is to provide an incentive for such participation by granting partial state insurance premium tax credits to insurers that contribute resources to public redevelopment organizations for the revitalization of enterprise zones for the benefit of low-income and moderate-income persons or to preserve existing historically significant properties within enterprise zones to the greatest extent possible. The Legislature thus declares such purpose a public purpose for which public money may be borrowed, expended, loaned, and granted.

(3)  AUTHORIZATION TO GRANT TAX CREDITS; LIMITATIONS.--

(a)  Beginning July 1, 1995, there shall be allowed a credit of 50 percent of a community contribution against any tax due for a calendar year under s. 624.509 or s. 624.510.

(b)  No insurer shall receive more than $200,000 in annual tax credits for all approved community contributions made in any one year.

(c)  The total amount of tax credit which may be granted for all programs approved under this section and s. 220.183 is $10 million annually.

(d)  Each proposal for the granting of such tax credit requires the prior approval of the director.

(e)  If the credit granted pursuant to this section is not fully used in any one year because of insufficient tax liability on the part of the insurer, the unused amount may be carried forward for a period not to exceed 5 years. The carryover credit may be used in a subsequent year when the tax imposed by s. 624.509 or s. 624.510 for such year exceeds the credit under this section for such year.

(4)  ELIGIBILITY REQUIREMENTS.--

(a)  Each community contribution by an insurer must be in a form specified in subsection (7).

(b)  Each community contribution must be reserved exclusively for use in a project.

(c)  The project must be undertaken by an "eligible sponsor," which term is defined as:

1.  A community action program;

2.  A community development corporation;

3.  A neighborhood housing services corporation;

4.  A local housing authority created pursuant to chapter 421;

5.  A community redevelopment agency created pursuant to s. 163.356;

6.  The Florida Industrial Development Corporation;

7.  A historic preservation district agency or organization;

8.  A private industry council;

9.  An enterprise zone development agency created pursuant to s. 290.0057; or

10.  Such other agency as the director may, from time to time, designate by rule.

In no event shall a contributing insurer have a financial interest in the eligible sponsor.

(d)  The project shall be located in an area designated as an enterprise zone pursuant to s. 290.0065. Any project designed to construct or rehabilitate low-income housing is exempt from the area requirement of this paragraph.

(5)  APPLICATION REQUIREMENTS.--

(a)  Any eligible sponsor wishing to participate in this program must submit a proposal to the Office of Tourism, Trade, and Economic Development which sets forth the sponsor, the project, the area in which the project is located, and such supporting information as may be prescribed by rule. The proposal shall also contain a resolution from the local governmental unit in which the proposed project is located certifying that the project is consistent with local plans and regulations.

(b)1.  Any insurer wishing to participate in this program must submit an application for tax credit to the office which sets forth the sponsor; the project; and the type, value, and purpose of the contribution. The sponsor must verify, in writing, the terms of the application and indicate its willingness to receive the contribution, which verification must accompany the application for tax credit.

2.  The insurer must submit a separate application for tax credit for each individual contribution which it proposes to contribute to each individual project.

(6)  ADMINISTRATION.--

(a)1.  The Office of Tourism, Trade, and Economic Development is authorized to adopt all rules necessary to administer this section, including rules for the approval or disapproval of proposals by insurers.

2.  The decision of the director shall be in writing, and, if approved, the proposal shall state the maximum credit allowable to the insurer. A copy of the decision shall be transmitted to the executive director of the Department of Revenue, who shall apply such credit to the tax liability of the insurer.

3.  The office shall monitor all projects periodically, in a manner consistent with available resources to ensure that resources are utilized in accordance with this section; however, each project shall be reviewed no less frequently than once every 2 years.

(b)  The Department of Revenue shall adopt any rules necessary to ensure the orderly implementation and administration of this section.

(7)  DEFINITIONS.--For the purpose of this section:

(a)  "Community contribution" means the grant by an insurer of any of the following items:

1.  Cash or other liquid assets.

2.  Real property.

3.  Goods or inventory.

4.  Other physical resources which are identified by the department.

(b)  "Director" means the director of the Office of Tourism, Trade, and Economic Development.

(c)  "Local government" means any county or incorporated municipality in the state.

(d)  "Office" means the Office of Tourism, Trade, and Economic Development.

(e)  "Project" means any activity undertaken by an eligible sponsor, as defined in subsection (4), which is designed to construct, improve, or substantially rehabilitate housing or commercial, industrial, or public resources and facilities or to improve entrepreneurial and job-development opportunities for low-income persons.

(8)  EXPIRATION.--The provisions of this section, except paragraph (3)(e), shall expire and be void on June 30, 2005.

History.--s. 56, ch. 84-356; s. 124, ch. 91-112; s. 54, ch. 94-136; s. 149, ch. 96-320; s. 2, ch. 98-219; s. 2, ch. 99-265.

624.5107  Child care tax credits; definitions; authorization; limitations; eligibility and application requirements; administration; expiration.--

(1)  DEFINITIONS.--As used in this section:

(a)  "Child care facility startup costs" means expenditures for substantial renovation, equipment, including playground equipment and kitchen appliances and cooking equipment, real property, including land and improvements, and for reduction of debt, made in connection with the establishment of a child care facility as defined by s. 402.302, or any facility providing daily care to children who are mildly ill, which is located in this state on the insurer's premises and used by the employees of the insurer.

(b)  "Operation of a child care facility" means operation of a child care facility as defined by s. 402.302, or any facility providing daily care to children who are mildly ill, which is located in this state within 5 miles of at least one place of business of the insurer and which is used by the employees of the insurer.

(c)  "Department" means the Department of Revenue.

(d)  "Executive director" means the executive director of the Department of Revenue.

(2)  AUTHORIZATION TO GRANT TAX CREDITS; LIMITATIONS.--

(a)1.  A credit of 50 percent of the startup costs of child care facilities operated by an insurer for its employees is allowed against any tax due for a taxable year under s. 624.509 or s. 624.510. A credit against such tax is also allowed for the operation of a child care facility by an insurer for its employees, which credit is in the amount of $50 per month for each child enrolled in the facility.

2.  A credit is allowed against any tax due for a taxable year under s. 624.509 or s. 624.510 for any insurer that makes payments directly to a child care facility as defined by s. 402.302 which is licensed in accordance with s. 402.305, or to any facility providing daily care to children who are mildly ill, which payments are made in the name of and for the benefit of an employee of the insurer in this state whose child attends the child care facility during the employee's working hours. The credit shall be an amount equal to 50 percent of the amount of such child care payments.

(b)  An insurer may not receive more than $50,000 in annual tax credits for all approved child care costs that the insurer incurs in any one year.

(c)  The total amount of tax credits which may be granted for all programs approved under this section and s. 220.19 is $2 million annually.

(d)  An application for tax credit under this section must be approved by the executive director.

(e)  If the credit granted under this section is not fully used in any one year because of insufficient tax liability on the part of the insurer, the unused amount may be carried forward for a period not to exceed 5 years. The carryover credit may be used in a subsequent year when the tax imposed by s. 624.509 or s. 624.510 for that year exceeds the credit for which the insurer is eligible in that year under this section.

(f)  If an insurer receives a credit for child care facility startup costs, and the facility fails to operate for at least 5 years, a pro rata share of the credit must be repaid, in accordance with the formula: A = C x (1 - (N/60)), where:

1.  "A" is the amount in dollars of the required repayment.

2.  "C" is the total credits taken by the insurer for child care facility startup costs.

3.  "N" is the number of months the facility was in operation.

This repayment requirement is inapplicable if the insurer goes out of business or can demonstrate to the department that its employees no longer want to have a child care facility.

(3)  ELIGIBILITY REQUIREMENTS.--

(a)  A child care facility with respect to which an insurer claims a child care tax credit must be a child care facility as defined by s. 402.302 and must be licensed in accordance with s. 402.305, or must be a facility providing daily care to children who are mildly ill.

(b)  The services of a child care facility for which an insurer claims a child care tax credit under subparagraph (2)(a)1. must be available to all employees of the insurer or must be allocated on a first-come, first-served basis, and must be used by employees of the insurer.

(c)  Child care payments for which an insurer claims a credit under subparagraph (2)(a)2. shall not exceed the amount charged by the child care facility to other children of like age and abilities of persons not employed by the insurer.

(4)  APPLICATION REQUIREMENTS.--Any insurer that wishes to participate in this program must submit to the department an application for tax credit which sets forth the proposal for establishing a child care facility for the use of its employees or for payment of the cost of child care for its employees. This application must state the anticipated startup costs and the number of children to be enrolled, in the case of credit claimed under subparagraph (2)(a)1., or the number of children for whom child care costs will be paid, in the case of credit claimed under subparagraph (2)(a)2.

(5)  ADMINISTRATION.--

(a)  The Department of Revenue may adopt all rules pursuant to the Administrative Procedure Act to administer this section, including rules for the approval or disapproval of proposals submitted by insurers and rules to provide for cooperative arrangements between for-profit and not-for-profit entities.

(b)  The executive director's decision to approve or disapprove a proposal must be in writing, and, if the proposal is approved, the decision must state the maximum credit allowable to the insurer.

(c)  All approvals for the granting of the tax credit require prior verification by the Department of Children and Family Services or local licensing agency that the insurer meets the licensure requirements as defined in s. 402.302 and is currently licensed in accordance with s. 402.305, or is a facility providing daily care to children who are mildly ill.

(d)  Verification of the child care provider as an approved facility must be in writing and must be attached to the credit application form submitted to the Department of Revenue.

(6)  EXPIRATION.--This section expires on June 30, 2008, except that paragraph (2)(e), which relates to carryover credits, and paragraph (2)(f), which relates to repaying tax credits in specified circumstances, do not expire on that date.

History.--s. 5, ch. 98-293.

624.511  Tax statement; overpayments.--

(1)  Tax returns as to taxes mentioned in ss. 624.509 and 624.510 shall be made by insurers on forms to be prescribed by the Department of Revenue, and shall be sworn to by one or more of the executive officers or attorney (if a reciprocal insurer) of the insurer making the returns.

(2)  Notwithstanding the provisions of s. 215.26(1), if any insurer makes an overpayment on account of taxes due under ss. 624.509 and 624.510, a refund of the overpayment of taxes shall be made out of the General Revenue Fund. Overpayment of taxes due under ss. 624.509 and 624.510 shall be refunded no sooner than the first day of the state fiscal year following the date the tax was due.

History.--s. 83, ch. 59-205; ss. 21, 35, ch. 69-106; s. 2, ch. 71-9(B); s. 264, ch. 71-377; s. 3, ch. 76-168; s. 1, ch. 77-237; s. 1, ch. 77-457; s. 71, ch. 82-243; s. 125, ch. 91-112.

624.515  State Fire Marshal regulatory assessment and surcharge; levy and amount.--

(1)(a)  In addition to any other license or excise tax now or hereafter imposed, and such taxes as may be imposed under other statutes, there is hereby assessed and imposed upon every domestic, foreign, and alien insurer authorized to engage in this state in the business of issuing policies of fire insurance, a regulatory assessment in an amount equal to 1 percent of the gross amount of premiums collected by each such insurer on policies of fire insurance issued by it and insuring property in this state. The assessment shall be payable annually on or before March 1 to the Department of Revenue by the insurer on such premiums collected by it during the preceding calendar year.

(b)  When it is impractical, due to the nature of the business practices within the insurance industry, to determine the percentage of fire insurance contained within a line of insurance written by an insurer on risks located or resident in Florida, the Department of Revenue may establish by rule such percentages for the industry. The Department of Revenue may also amend the percentages as the insurance industry changes its practices concerning the portion of fire insurance within a line of insurance.

(2)(a)  Every insurer authorized to transact insurance in this state shall collect, in addition to the applicable premium charge, an annual surcharge from each holder of a policy of fire, allied lines, or multiperil insurance insuring commercial property located in this state. The surcharge shall be imposed at a rate of .1 percent on the gross direct premium written on commercial property located in this state. The surcharge shall be remitted by the insurer to the Department of Revenue pursuant to s. 624.5092.

(b)  The surcharge imposed by this subsection shall be applicable to said policies issued or renewed on or after July 1, 1992.

(3)  As used in this section, "fire insurance" means the insurance of structures or other property at fixed locations against loss or damage to such structures or other described properties from the risks of fire and lightning; and the terms "policies" and "premiums" respectively mean and include those policies or other contracts or agreements effecting and evidencing insurance, and premiums and other considerations for such policies, of the same character as described in and contemplated by the provisions of ss. 624.509 and 624.510. As used in this section, "allied lines" means the insurance of structures or other property against loss or damage to such structures or other properties from the risks of tornado, windstorm, hail, sprinkler or water damage, explosion, riot or civil commotion, flood, rain, and damage from aircraft or vehicle. The amount of such premiums upon which the regulatory assessment shall be computed by each such insurer shall be the amount thereof remaining after deducting therefrom those items described in and permitted by s. 624.509(1) relating to the premium receipts tax thereby imposed.

History.--s. 87, ch. 59-205; ss. 21, 35, ch. 69-106; s. 1, ch. 70-207; s. 1, ch. 70-439; s. 3, ch. 76-168; s. 1, ch. 77-237; s. 1, ch. 77-457; s. 12, ch. 89-233; s. 8, ch. 92-324; s. 28, ch. 98-342.

¹624.516  State Fire Marshal regulatory assessment and surcharge; deposit and use of funds.--

(1)  The regulatory assessment imposed under s. 624.515(1) shall be deposited by the Department of Revenue, when received and audited, into the Insurance Commissioner's Regulatory Trust Fund. The surcharge imposed under s. 624.515(2) shall be deposited by the Department of Revenue, when received and audited, into the Fire College Trust Fund.

(2)  The moneys so received and deposited in the funds, as provided in subsection (1), are hereby appropriated for use by the State Treasurer as ex officio State Fire Marshal, hereinafter referred to as "State Fire Marshal," to defray the expenses of the State Fire Marshal in the discharge of her or his administrative and regulatory powers and duties as prescribed by law, including the maintaining of offices and necessary supplies therefor, essential equipment and other materials, salaries and expenses of required personnel, and all other legitimate expenses relating to the discharge of the administrative and regulatory powers and duties imposed in and charged to her or him under such laws.

(3)  If at the end of any fiscal year a balance of funds remains in the Insurance Commissioner's Regulatory Trust Fund or the Fire College Trust Fund, respectively, such balance shall not revert to the general fund of the state, but shall be retained in the Insurance Commissioner's Regulatory Trust Fund or the Fire College Trust Fund to be used for the purposes for which the same is appropriated as set forth above.

History.--s. 88, ch. 59-205; s. 2, ch. 61-119; ss. 21, 35, ch. 69-106; s. 265, ch. 71-377; s. 1, ch. 73-305; s. 1, ch. 74-295; s. 3, ch. 76-168; s. 1, ch. 77-237; s. 1, ch. 77-457; s. 9, ch. 92-324; s. 198, ch. 97-102; s. 10, ch. 99-205.

¹Note.--Section 10, ch. 99-205, amended s. 624.516, effective July 1, 2000, to read:

624.516  State Fire Marshal regulatory assessment and surcharge; deposit and use of funds.--

(1)  The regulatory assessment imposed under s. 624.515(1) and the surcharge imposed under s. 624.515(2) shall be deposited by the Department of Revenue, when received and audited, into the Insurance Commissioner's Regulatory Trust Fund.

(2)  The moneys received and deposited in the funds, as provided in subsection (1), are appropriated for use by the State Treasurer as ex officio State Fire Marshal, hereinafter referred to as "State Fire Marshal," to defray the expenses of the State Fire Marshal in the discharge of her or his administrative and regulatory powers and duties as prescribed by law, including the maintaining of offices and necessary supplies therefor, essential equipment and other materials, salaries and expenses of required personnel, and all other legitimate expenses relating to the discharge of the administrative and regulatory powers and duties imposed in and charged to her or him under such laws.

(3)  If, at the end of any fiscal year, a balance of funds remains in the Insurance Commissioner's Regulatory Trust Fund, such balance shall not revert to the general fund of the state, but shall be retained in the Insurance Commissioner's Regulatory Trust Fund to be used for the purposes for which the moneys are appropriated as set forth in subsection (2).

624.517  State Fire Marshal regulatory assessment; reduction of assessment.--

(1)  The Department of Insurance shall ascertain on or before December 1 of each year whether the amounts estimated to be received from the regulatory assessment imposed under s. 624.515 for that calendar year, payable on or before the following March 1, as herein prescribed, shall result in an accumulation of funds in excess of the just requirements for which the assessment is imposed as set forth in s. 624.516; and if it determines that the imposition of the full amount of the assessment would result in such excess, it may reduce the percentage amount of the assessment for that calendar year to such percentage as may be necessary to meet the just requirements for which the assessment is imposed.

(2)  When a determination is made so reducing the amount of the assessment, the department shall make and issue its order setting forth such determination and fixing the amount of assessment for that calendar year, payable on or before March 1 of the following year, and shall mail a copy of such order to each insurer who, according to the records of the department, is subject to the assessment.

History.--s. 89, ch. 59-205; s. 2, ch. 61-119; ss. 13, 35, ch. 69-106; s. 2, ch. 74-295; s. 3, ch. 76-168; s. 1, ch. 77-237; s. 1, ch. 77-457.

624.518  State Fire Marshal regulatory assessment and surcharge; tax return, overpayment.--

(1)  Tax returns with respect to the regulatory assessment and surcharge prescribed by s. 624.515 shall be made by each insurer liable for payment of such tax on forms to be prescribed by the Department of Revenue and sworn to by one or more of the executive officers or other persons charged under the law with the management of the insurer.

(2)  In the event an insurer makes an overpayment on account of the assessment, a refund of the overpayment may be made to the remitter.

(3)  The surcharge shall be state funds when collected and subject to refund only as provided in s. 213.756.

History.--s. 90, ch. 59-205; ss. 21, 35, ch. 69-106; s. 266, ch. 71-377; s. 3, ch. 76-168; s. 1, ch. 77-237; s. 1, ch. 77-457; s. 74, ch. 82-243; s. 10, ch. 92-324.

624.519  Nonpayment of premium tax or fire marshal assessment; penalty.--If any insurer fails to pay to the Department of Revenue on or before March 1 in each and every year any premium taxes required of it under s. 624.509 or s. 624.510, or any state fire marshal regulatory assessment required of it under s. 624.515 or s. 624.517, the Department of Insurance may revoke its certificate of authority.

History.--s. 91, ch. 59-205; ss. 13, 21, 35, ch. 69-106; s. 3, ch. 76-168; s. 1, ch. 77-237; s. 1, ch. 77-457.

624.520  Preemption by state.--

(1)  This state hereby preempts the field of imposing excise, privilege, franchise, income, license, permit, registration, and similar taxes and fees, measured by premiums, income, or volume of transactions, upon insurers and their agents and other representatives; and no county, city, municipality, district, school district, or other political subdivision or agency in this state shall impose, levy, charge, or require the same, subject however to the provisions of subsection (2).

(2)  This section shall not be construed to limit or modify the power of any incorporated city or town to levy the taxes authorized by ss. 175.101 and 185.08 or the power of any special fire control district to levy the taxes authorized by s. 175.101.

History.--s. 92, ch. 59-205; s. 2, ch. 61-75; s. 2, ch. 65-233; s. 3, ch. 76-168; s. 1, ch. 77-237; s. 1, ch. 77-457; s. 50, ch. 93-193.

624.521  Deposit of certain tax receipts; refund of improper payments.--

(1)  The Department of Insurance shall promptly deposit in the State Treasury to the credit of the Insurance Commissioner's Regulatory Trust Fund all "state tax" portions of agents' and solicitors' licenses collected under s. 624.501 necessary to fund the Division of Insurance Fraud. The balance of the tax shall be credited to the General Fund. All moneys received by the Department of Insurance not in accordance with the provisions of this code or not in the exact amount as specified by the applicable provisions of this code shall be returned to the remitter. The records of the department shall show the date and reason for such return.

(2)  The Department of Revenue shall promptly deposit in the Department of Revenue Premium Tax Clearing Trust Fund all premium taxes collected according to ss. 624.509, 624.510, and 624.515. Such taxes shall be distributed on an estimated basis within 15 days after receipt by the Department of Revenue. Such distribution shall be adjusted pursuant to an audit by the Department of Revenue.

History.--s. 93, ch. 59-205; s. 267, ch. 71-377; s. 3, ch. 76-168; s. 1, ch. 77-237; s. 1, ch. 77-457; s. 1, ch. 81-48; s. 75, ch. 82-243; s. 33, ch. 87-99; s. 3, ch. 89-167; s. 199, ch. 90-363.

624.523  Insurance Commissioner's Regulatory Trust Fund.--

(1)  There is created in the State Treasury a trust fund designated "Insurance Commissioner's Regulatory Trust Fund" to which shall be credited all payments received on account of the following items:

(a)  All fines, monetary penalties, and costs imposed upon persons by the department as authorized by law for violation of the laws of this state.

(b)  Any sums received for copies of the stenographic record of hearings, as authorized by law.

(c)  All sums received under s. 624.404(5).

(d)  All sums received under s. 624.5091, as provided in subsection (5) thereof.

(e)  All payments received on account of items provided for under respective provisions of s. 624.501, as follows:

1.  Subsection (1) (certificate of authority of insurer).

2.  Subsection (2) (charter documents of insurer).

3.  Subsection (3) (annual license tax of insurer).

4.  Subsection (4) (annual statement of insurer).

5.  Subsection (5) (application fee for insurance representatives).

6.  The "appointment fee" portion of any appointment provided for under paragraphs (6)(a) and (b) (insurance representatives, property, marine, casualty and surety insurance, agents, and solicitors).

7.  Paragraph (6)(c) (nonresident agents).

8.  Paragraph (6)(d) (service representatives).

9.  The "appointment fee" portion of any appointment provided for under paragraph (7)(a) (life insurance agents, original appointment, and renewal or continuation of appointment).

10.  Paragraph (7)(b) (nonresident agent license).

11.  The "appointment fee" portion of any appointment provided for under paragraph (8)(a) (health insurance agents, agent's appointment, and renewal or continuation fee).

12.  Paragraph (8)(b) (nonresident agent appointment).

13.  The "appointment fee" portion of any appointment provided for under subsections (9) and (10) (limited licenses and fraternal benefit society agents).

14.  Subsection (11) (vending machines).

15.  Subsection (12) (surplus lines agent).

16.  Subsection (13) (adjusters' appointment).

17.  Subsection (14) (examination fee).

18.  Subsection (15) (temporary license and appointment as agent or adjuster).

19.  Subsection (16) (reissuance, reinstatement, etc.).

20.  Subsection (17) (additional license continuation fees).

21.  Subsection (18) (filing application for permit to form insurer).

22.  Subsection (19) (license fee of rating organization).

23.  Subsection (20) (miscellaneous services).

24.  Subsection (21) (insurance agencies).

(f)  All payments received on account of actuarial and other services in the valuation or computation of the reserves of life insurers pursuant to s. 625.121(2).

(g)  All sums received under ss. 626.711 and 626.743.

(h)  Sums received under s. 626.932, as provided in subsection (5) thereof.

(i)  Sums received under s. 626.938, as provided in subsection (7) thereof.

(j)  All sums received under s. 627.828.

(k)  All sums received from motor vehicle service agreement companies under s. 634.221.

(l)  All sums received under ¹s. 648.27(6) (bail bond agent, limited surety agent or runner, continuation fee), the "appointment fee" portion of any license or permit provided for under s. 648.31, and the application fees provided for under ss. 648.34(3) and 648.37(3).

(m)  All sums received under s. 651.015.

(n)  All sums received by the Insurance Commissioner and Treasurer as fees for her or his services as service-of-process agent.

(o)  All state tax portions of agents' and solicitors' licenses collected under s. 624.501.

(2)  The moneys so received and deposited in this regulatory trust fund are hereby appropriated for use by the department to defray the expenses of the department in the discharge of its administrative and regulatory powers and duties as prescribed by law.

History.--s. 98, ch. 59-205; s. 2, ch. 61-119; s. 8, ch. 65-269; s. 2, ch. 67-260; s. 2, ch. 67-279; ss. 13, 35, ch. 69-106; s. 3, ch. 76-168; s. 1, ch. 77-237; s. 1, ch. 77-457; s. 2, ch. 81-48; s. 77, ch. 82-243; s. 8, ch. 82-386; s. 43, ch. 83-215; ss. 40, 48, ch. 90-132; s. 200, ch. 90-363; s. 44, ch. 91-108; s. 57, ch. 93-148; s. 53, ch. 93-193; s. 118, ch. 93-399; s. 16, ch. 95-211; s. 199, ch. 97-102.

¹Note.--The s. 648.27(6) referenced was repealed by s. 5, ch. 90-131.

624.601  Definitions not mutually exclusive.

624.6011  "Kinds of insurance" defined.

624.6012  "Lines of insurance" defined.

624.602  "Life insurance," "life insurer" defined.

624.603  "Health insurance" defined.

624.604  "Property insurance" defined.

624.605  "Casualty insurance" defined.

624.606  "Surety insurance" defined.

624.6065  "Fidelity insurance" defined.

624.607  "Marine insurance," "wet marine and transportation insurance," and "inland marine insurance" defined.

624.608  "Title insurance" defined.

624.6081  "Residual value insurance" defined.

624.6085  "Collateral protection insurance" defined.

624.609  Limit of risk.

624.610  Reinsurance.

624.601  Definitions not mutually exclusive.--It is intended that certain insurance coverages may come within the definitions of two or more kinds of insurance as defined in this part of this chapter. The inclusion of such coverage within one definition shall not exclude it from being considered as any other kind of insurance, the definition of which reasonably includes such coverage.

History.--s. 99, ch. 59-205; s. 3, ch. 76-168; s. 1, ch. 77-457; ss. 2, 3, ch. 81-318; ss. 78(1st), 86, 809(1st), ch. 82-243; ss. 187, 188, ch. 91-108; s. 4, ch. 91-429.

624.6011  "Kinds of insurance" defined.--Insurance shall be classified into the following "kinds of insurance":

(1)  Life.

(2)  Health.

(3)  Property.

(4)  Casualty.

(5)  Surety.

(6)  Marine.

(7)  Title.

History.--ss. 38, 51, 70, ch. 89-360; ss. 187, 188, ch. 91-108; s. 4, ch. 91-429.

624.6012  "Lines of insurance" defined.--Kinds of insurance shall be classified into "lines of insurance." The department shall adopt by rule the lines of insurance to be utilized. Such lines of insurance shall be consistent with the reporting requirements of the National Association of Insurance Commissioners.

History.--ss. 39, 51, 70, ch. 89-360; ss. 187, 188, ch. 91-108; s. 4, ch. 91-429.

624.602  "Life insurance," "life insurer" defined.--

(1)  "Life insurance" is insurance of human lives. The transaction of life insurance includes also the granting of annuity contracts, including, but not limited to, fixed or variable annuity contracts; the granting of endowment benefits, additional benefits in event of death or dismemberment by accident or accidental means, additional benefits in event of the insured's disability; and optional modes of settlement of proceeds of life insurance. Life insurance does not include workers' compensation coverages.

(2)  A "life insurer" or "life insurance company" is an insurer engaged in the business of issuing life insurance contracts, including contracts of combined life and health and accident insurance.

History.--s. 100, ch. 59-205; s. 3, ch. 76-168; s. 1, ch. 77-295; s. 1, ch. 77-457; s. 82, ch. 79-40; ss. 2, 3, ch. 81-318; ss. 79(1st), 86, 809(1st), ch. 82-243; ss. 187, 188, ch. 91-108; s. 4, ch. 91-429.

624.603  "Health insurance" defined.--"Health insurance," also known as "disability insurance," is insurance of human beings against bodily injury, disablement, or death by accident or accidental means, or the expense thereof, or against disablement or expense resulting from sickness, and every insurance appertaining thereto. Health insurance does not include workers' compensation coverages.

History.--s. 101, ch. 59-205; s. 1, ch. 65-10; s. 3, ch. 76-168; s. 1, ch. 77-457; s. 83, ch. 79-40; ss. 2, 3, ch. 81-318; ss. 78(2nd), 86, 809(1st), ch. 82-243; ss. 187, 188, ch. 91-108; s. 4, ch. 91-429.

624.604  "Property insurance" defined.--"Property insurance" is insurance on real or personal property of every kind and of every interest therein, whether on land, water, or in the air, against loss or damage from any and all hazard or cause, and against loss consequential upon such loss or damage, other than noncontractual legal liability for any such loss or damage. Property insurance may contain a provision for accidental death or injury as part of a multiple peril homeowner's policy. Such insurance, which is incidental to the property insurance, is not subject to the provisions of this code applicable to life or health insurance. Property insurance does not include title insurance, as defined in s. 624.608.

History.--s. 102, ch. 59-205; s. 3, ch. 76-168; s. 1, ch. 77-457; ss. 2, 3, ch. 81-318; ss. 86, 809(1st), ch. 82-243; s. 29, ch. 83-288; ss. 187, 188, ch. 91-108; s. 4, ch. 91-429.

624.605  "Casualty insurance" defined.--

(1)  "Casualty insurance" includes:

(a)  Vehicle insurance.--Insurance against loss of or damage to any land vehicle or aircraft or any draft or riding animal, or to property while contained therein or thereon or being loaded or unloaded therein or therefrom, from any hazard or cause, and against any loss, liability, or expense resulting from or incidental to ownership, maintenance, or use of any such vehicle, aircraft, or animal. As to land vehicles, the term also includes insurance providing for medical, hospital, surgical, and disability benefits to injured persons, and funeral and death benefits to dependents, beneficiaries, or personal representatives of persons killed, irrespective of the legal liability of the insured, while in, entering, alighting from, adjusting, repairing, cranking, or being struck by a vehicle, if such insurance is issued as a part of a liability insurance contract.

(b)  Liability insurance.--Insurance against legal liability for the death, injury, or disability of any human being, or for damage to property, with provision for medical, hospital, and surgical benefits to the injured persons, irrespective of the legal liability of the insured, when issued as a part of a liability insurance contract.

(c)  Workers' compensation and employer's liability.--Insurance of the obligations accepted by, imposed upon, or assumed by employers under law for death, disablement, or injury of employees.

(d)  Burglary and theft.--Insurance against loss or damage by burglary, theft, larceny, robbery, forgery, fraud, vandalism, malicious mischief, confiscation, or wrongful conversion, disposal, or concealment, or from any attempt at any of the foregoing; including supplemental coverage for medical, hospital, surgical, and funeral expense incurred by the named insured or any other person as a result of bodily injury during the commission of a burglary, robbery, or theft by another; also insurance against loss of or damage to moneys, coins, bullion, securities, notes, drafts, acceptances or any other valuable papers and documents, resulting from any cause.

(e)  Personal property floater.--Insurance upon personal effects against loss or damage from any cause under a floater.

(f)  Glass.--Insurance against loss or damage to glass, including its lettering, ornamentation, and fittings.

(g)  Boiler and machinery.--Insurance against any liability and loss or damage to property or interest resulting from accidents to or explosions of boilers, pipes, pressure containers, machinery, or apparatus, and to make inspection of and issue certificates of inspection upon boilers, machinery, and apparatus of any kind, whether or not insured; together with provision for medical, hospital, and surgical benefits to the injured persons, irrespective of the legal liability of the insured, when issued as an incidental coverage which is part of a liability insurance contract.

(h)  Leakage and fire extinguishing equipment.--Insurance against loss or damage to any property or interest caused by the breakage or leakage of sprinklers, hose, pumps, and other fire extinguishing equipment or apparatus, water pipes or containers, or by water entering through leaks or openings in buildings, and insurance against such loss or damage to such sprinklers, hose, pumps, and other fire extinguishing equipment or apparatus.

(i)  Credit.--Insurance against loss or damage resulting from failure of debtors to pay their obligations to the creditor (including loss or damage resulting from the involuntary unemployment of the debtors), except insurance against loss or damage resulting from the death or disability of the debtors. However, insurance may not be written as credit insurance if it falls within the definition of financial guaranty insurance, as defined in s. 627.971.

(j)  Credit property insurance.--Credit property insurance is a limited line of insurance providing coverage on personal property used as collateral for securing a loan or on personal property purchased under an installment sales agreement. Credit property insurance shall not be considered to be property insurance. The coverage shall be issued on an inland marine policy form, and coverage limits shall be restricted to the initial amount of the loan or the amount of the installment sale.

(k)  Malpractice.--Insurance against legal liability of the insured, and against loss, damage, or expense incidental to a claim of such liability, arising out of the death, injury, or disablement of any person, or arising out of damage to the economic interest of any person, as the result of negligence in rendering expert, fiduciary, or professional service.

(l)  Animal.--Insurance against loss or damage to animals, and services of a veterinary for such animals.

(m)  Elevator.--Insurance against loss of or damage to any property of the insured resulting from the ownership, maintenance, or use of elevators, except loss or damage by fire, together with provision for medical, hospital, and surgical benefits to injured persons, irrespective of the legal liability of the insured, when issued as an incidental coverage which is part of a liability insurance contract.

(n)  Entertainments.--Insurance indemnifying the producer of any motion picture, television, radio, theatrical, sport, spectacle, entertainment, or similar production, event, or exhibition against loss from interruption, postponement, or cancellation thereof due to death, accidental injury, or sickness of performers, participants, directors, or other principals.

(o)  Failure of certain institutions to record documents.--Insurance indemnifying banks, bankers, trust companies, and credit unions against loss from failure or omission to record as public records chattel mortgages and liens of every kind upon personal property, given, held, delivered, or possessed as security or collateral for loans, advances, debts, or obligations of all kinds, provided that such insurance does not indemnify intentional omission to comply with the law relating to the recording of liens upon motor vehicles, nor to the intentional omission to record mortgages upon real property.

(p)  Failure to file certain personal property instruments.--With respect to persons and institutions other than those referred to in paragraph (o), insurance against loss resulting from failure to file or record written instruments affecting the title of, or creating a lien upon, personal property.

(q)  Miscellaneous.--When first approved by the department as not being contrary to law or public policy nor covered by any other kind of insurance as defined in the code, insurance against liability for any other kind of loss or damage to person or property, properly a subject of insurance and not within any other kind of insurance as defined in this code.

(2)  The provision of medical, hospital, surgical, and funeral benefits, and of coverage against accidental death or injury, as part of other insurance as stated under paragraphs (a) (vehicle), (b) (liability), (d) (burglary and theft), (g) (boiler and machinery), or (m) (elevator) of subsection (1) shall for all purposes be deemed to be the same kind of insurance to which it is incidental and shall not be subject to provisions of this code applicable to life or health insurance.

History.--s. 103, ch. 59-205; ss. 13, 35, ch. 69-106; s. 1, ch. 69-200; s. 3, ch. 76-168; s. 1, ch. 77-457; s. 84, ch. 79-40; ss. 1, 3, ch. 79-156; ss. 2, 3, ch. 81-318; ss. 79(2nd), 86, 809(1st), ch. 82-243; s. 9, ch. 82-386; s. 14, ch. 83-145; s. 5, ch. 88-87; ss. 187, 188, ch. 91-108; s. 4, ch. 91-429; s. 2, ch. 94-133.

624.606  "Surety insurance" defined.--

(1)  "Surety insurance" includes:

(a)  A contract bond, including a bid, payment, or maintenance bond, or a performance bond, which guarantees the execution of a contract other than a contract of indebtedness or other monetary obligation;

(b)  An indemnity bond for the benefit of a public body, railroad, or charitable organization or a lost security or utility payment bond;

(c)  Becoming surety on, or guaranteeing the performance of, any lawful contract where the bond is guaranteeing the execution of a contract other than a contract of indebtedness or other monetary obligation;

(d)  Becoming surety on, or guaranteeing the performance of, bonds and undertakings required or permitted in a judicial proceeding or otherwise allowed by law, including surety bonds accepted by states and municipal authorities in lieu of deposits as security for the performance of insurance contracts;

(e)  Fidelity insurance as defined in s. 624.6065 for the purposes of the Florida Insurance Code other than part XX of chapter 627; or

(f)  Residual value insurance as defined in s. 624.6081.

(2)  "Surety insurance" does not include:

(a)  Mortgage guaranty insurance, as defined in s. 635.011;

(b)  Financial guaranty insurance, as defined in s. 627.971; or

(c)  Any reinsurance contract authorized pursuant to s. 624.610.

History.--s. 104, ch. 59-205; s. 3, ch. 76-168; s. 1, ch. 77-457; ss. 2, 3, ch. 81-318; ss. 86, 809(1st), ch. 82-243; s. 3, ch. 88-87; ss. 184, 187, 188, ch. 91-108; s. 1, ch. 91-110; s. 4, ch. 91-429; s. 17, ch. 95-211.

624.6065  "Fidelity insurance" defined.--For the purposes of part XX of chapter 627, the term "fidelity insurance" means:

(1)  Insurance guaranteeing the fidelity of persons holding positions of public or private trust, or indemnifying banks, thrifts, brokers, or other financial institutions against loss of money, securities, negotiable instruments, other specified valuable papers, or tangible items of personal property caused by larceny, misplacement, destruction, or other stated perils, including loss while being transported in an armored motor vehicle or by messenger and including insurance for loss caused by the forgery of signatures on, or alteration of, specified documents and valuable papers.

(2)  Insurance against losses that financial institutions become legally obligated to pay by reason of loss of customers' property from safe-deposit boxes.

History.--ss. 4, 7, ch. 88-87; ss. 187, 188, ch. 91-108; s. 2, ch. 91-110; s. 4, ch. 91-429; s. 18, ch. 95-211.

624.607  "Marine insurance," "wet marine and transportation insurance," and "inland marine insurance" defined.--

(1)  "Marine insurance" includes:

(a)  Insurance against any kinds of loss or damage to:

1.  Vessels, craft, aircraft, cars, automobiles, and vehicles of every kind, as well as all goods, freights, cargoes, merchandise, effects, disbursements, profits, moneys, bullion, precious stones, securities, choses in action, evidences of debt, valuable papers, bottomry and respondentia interests and all other kinds of property and interests therein, in respect to, appertaining to, or in connection with any and all risks or perils of navigation, transit, or transportation, including war risks, on or under any seas or other waters, on land or in the air, or while being assembled, packed, crated, baled, compressed, or similarly prepared for shipment or while awaiting the same or during any delays, storage, transshipment, or reshipment incident thereto, including marine builder's risks and all personal property floater risks; and

2.  Person or property in connection with or appertaining to a marine, inland marine, transit, or transportation insurance, including liability for loss of or damage to either, arising out of or in connection with the construction, repair, operation, maintenance, or use of the subject matter of such insurance, but not including life insurance or surety bonds nor insurance against loss by reason of bodily injury to the person arising out of the ownership, maintenance, or use of automobiles; and

3.  Precious stones, jewels, jewelry, gold, silver, and other precious metals, whether used in business or trade or otherwise and whether the same be in course of transportation or otherwise; and

4.  Bridges, tunnels, and other instrumentalities of transportation and communication (excluding buildings, their furniture and furnishings, fixed contents, and supplies held in storage) unless fire, tornado, sprinkler leakage, hail, explosion, earthquake, riot, and/or civil commotion are the only hazards to be covered; piers, wharves, docks, and slips, excluding the risks of fire, tornado, sprinkler leakage, hail, explosion, earthquake, riot, and/or civil commotion; and other aids to navigation and transportation, including dry docks and marine railways, against all risks.

(b)  Marine protection and indemnity insurance, meaning insurance against, or against legal liability of the insured for, loss, damage, or expense arising out of, or incident to, the ownership, operation, chartering, maintenance, use, repair, or construction of any vessel, craft, or instrumentality in use in ocean or inland waterways, including liability of the insured for personal injury, illness, or death or for loss of or damage to the property of another person.

(2)  For the purposes of this code, "wet marine and transportation insurance" is that part of marine insurance which includes only:

(a)  Insurance upon vessels, crafts, and hulls and of interests therein or with relation thereto;

(b)  Insurance of marine builders' risks, marine war risks, and contracts of marine protection and indemnity insurance;

(c)  Insurance of freights and disbursements pertaining to a subject of insurance coming within this definition; and

(d)  Insurance of personal property and interests therein, in course of exportation from or importation into any country, or in course of transportation coastwise or on inland waters, including transportation by land, water, or air from point of origin to final destination, in respect to, appertaining to, or in connection with any and all risks or perils of navigation, transit, or transportation, and while being prepared for and while awaiting shipment, and during any delays, storage, transshipment, or reshipment incident thereto.

(3)  For the purposes of this code, "inland marine insurance" is as established by general custom of the insurance business and promulgated by rule of the department.

History.--ss. 105, 417, ch. 59-205; ss. 13, 35, ch. 69-106; s. 3, ch. 76-168; s. 1, ch. 77-457; ss. 2, 3, ch. 81-318; ss. 80, 86, 809(1st), ch. 82-243; ss. 187, 188, ch. 91-108; s. 4, ch. 91-429.

Note.--Consolidation of s. 624.607 and former s. 627.071.

624.608  "Title insurance" defined.--"Title insurance" is insurance of owners of real property or others having an interest in real property or contractual interest derived therefrom, or liens or encumbrances on real property, against loss by encumbrance, or defective titles, or invalidity, or adverse claim to title.

History.--s. 106, ch. 59-205; s. 3, ch. 76-168; s. 1, ch. 77-457; ss. 2, 3, ch. 81-318; ss. 83, 86, 809(1st), ch. 82-243; ss. 187, 188, ch. 91-108; s. 4, ch. 91-429.

624.6081  "Residual value insurance" defined.--For the purposes of part XX of chapter 627, the term "residual value insurance" means insurance issued in connection with a lease or contract which sets forth a specific termination value at the end of the term of the lease or contract for the property covered by the lease or contract and which insures against loss of economic value of tangible personal property or real property or improvements thereto, except loss due to physical damage to property. However, insurance may not be written as residual value insurance if it may be written as financial guaranty insurance by a financial guaranty insurance corporation pursuant to part XX of chapter 627.

History.--ss. 2, 7, ch. 88-87; ss. 187, 188, ch. 91-108; s. 3, ch. 91-110; s. 4, ch. 91-429; s. 19, ch. 95-211.

¹624.6085  "Collateral protection insurance" defined.--For purposes of ss. 215.555, 627.311, and 627.351, "collateral protection insurance" means commercial property insurance under which a creditor is the primary beneficiary and policyholder and which protects or covers an interest of the creditor arising out of a credit transaction secured by real or personal property. Initiation of such coverage is triggered by the mortgagor's failure to maintain insurance coverage as required by the mortgage or other lending document. Collateral protection insurance is not residential coverage.

History.--s. 10, ch. 99-204.

¹Note.--Section 16, ch. 99-204, provides that "[t]his act shall take effect October 1, 1999, and shall apply to policies and contracts issued or renewed on or after that date."

624.609  Limit of risk.--

(1)  No insurer shall retain any risk on any one subject of insurance, either as the direct insurer or the reinsurer, whether located or to be performed in this state or elsewhere, in an amount exceeding 10 percent of its surplus to policyholders, except as provided in subsection (5).

(2)  A "subject of insurance" for the purposes of this section, as to insurance against fire and hazards other than windstorm, earthquake, or other catastrophic hazards, includes all properties insured by the same insurer which are customarily considered by underwriters to be subject to loss or damage from the same fire or the same occurrence of such other hazard insured against.

(3)  Reinsurance ceded as authorized by s. 624.610 shall be deducted in determining risk retained. As to surety risks, a deduction shall also be made of the amount assumed by any established incorporated cosurety and the value of any security deposited, pledged, or held subject to the surety's consent and for the surety's protection.

(4)  As to alien insurers, other than insurers domiciled in Canada, this section relates only to risks and surplus to policyholders of the insurer's United States branch.

(5)  As to fire insurance covering risks adequately protected by automatic sprinklers or risks principally of noncombustible construction and occupancy, the insurer may retain risk as to any one such subject of insurance in an amount not exceeding 25 percent of the sum of its unearned premium reserve applicable to property insurance policies and its surplus to policyholders.

(6)  "Surplus to policyholders" for the purposes of this section, in addition to the insurer's capital and surplus, shall be deemed to include any voluntary reserves which are not required pursuant to law and shall be determined from the last sworn statement of the insurer on file with the department, or by the last report of examination of the insurer, whichever is the more recent at time of assumption of risk.

(7)  This section does not apply to life insurance, health insurance, annuity contracts, title insurance, insurance of wet marine and transportation insurance risks, workers' compensation insurance, or employers' liability coverages or to any policy or type of coverage as to which the maximum possible loss to the insurer is not readily ascertainable on issuance of the policy.

History.--s. 107, ch. 59-205; ss. 13, 35, ch. 69-106; s. 3, ch. 76-168; s. 1, ch. 77-457; s. 85, ch. 79-40; ss. 2, 3, ch. 81-318; ss. 84, 86, 809(1st), ch. 82-243; s. 36, ch. 89-360; ss. 184, 187, 188, ch. 91-108; s. 4, ch. 91-429.

624.610  Reinsurance.--

(1)  The purpose of this section is to protect the interests of insureds, claimants, ceding insurers, assuming insurers, and the public. It is the intent of the Legislature to ensure adequate regulation of insurers and reinsurers and adequate protection for those to whom they owe obligations. In furtherance of that state interest, the Legislature requires that upon the insolvency of a non-United States insurer or reinsurer which provides security to fund its United States obligations in accordance with this section, such security shall be maintained in the United States and claims shall be filed with and valued by the State Insurance Commissioner with regulatory oversight, and the assets shall be distributed in accordance with the insurance laws of the state in which the trust is domiciled that are applicable to the liquidation of domestic United States insurance companies. The Legislature declares that the matters contained in this section are fundamental to the business of insurance in accordance with 15 U.S.C. ss. 1011-1012.

(2)  An insurer may assume reinsurance only of such risks, and retain risk thereon within such limits, as it is otherwise authorized to insure or reinsure.

(3)(a)  If a ceding insurer reinsures all or any part of any particular risk or class of risks with an approved reinsurer, the ceding insurer may receive credit in accounting and financial statements on account of such reinsurance ceded. An approved reinsurer is:

1.  An assuming insurer authorized by the department to transact such line of insurance or reinsurance in this state. Subject to the other requirements of this code, credit may be taken for reinsurance with an authorized insurer.

2.  An assuming insurer approved by the department to transact such line of reinsurance in this state. The department shall approve only solvent insurers meeting the criteria established for authorized insurers in this state. From time to time, the department shall publish a list of insurers approved pursuant to this subsection. Subject to the other requirements of this code, credit may be taken for reinsurance with an approved reinsurer.

3.  An assuming underwriting member of an insurance exchange domiciled in any other state or jurisdiction in the United States, which insurance exchange was licensed and in operation on or before January 1, 1993, provided the insurance exchange presents to the department for its approval, and maintains, satisfactory evidence that such assuming underwriting member maintains the standards and meets the financial requirements applicable to an authorized insurer. Subject to the other requirements of this section, credit may be taken for reinsurance with members approved under this subsection by the department.

4.  A group of individual, unincorporated, or incorporated alien insurers which maintains funds in an amount not less than $50 million held in trust for United States policyholders and beneficiaries in a bank or trust company that is subject to supervision by any state of the United States or that is a member of the Federal Reserve System and which group satisfies the department by annually filing evidence that it can meet its obligations under its reinsurance agreements. Subject to the other requirements of this section, credit may be taken for reinsurance with a group approved under this subsection by the department.

(b)  Credit in accounting and financial statements on account of reinsurance ceded to a nonapproved reinsurer may be allowed only:

1.  When it is demonstrated by the ceding insurer to the satisfaction of the department that such reinsurer maintains the standards and meets the financial requirements applicable to an authorized insurer;

2.  To the extent of deposits by, or funds withheld from, such reinsurer pursuant to express provision therefor in the reinsurance contract as security for the payment of the obligations thereunder if such deposits or funds are held subject to withdrawal by, and under the control of, the ceding insurer or such deposits or funds are placed in trust for such purposes in a bank which is a member of the Federal Reserve System if withdrawals from the trust cannot be made without the consent of the ceding insurer. The funds withheld may be cash or securities which are qualified as admitted assets under part II of chapter 625 and which have a market value equal to or greater than the credit taken; or

3.  To the extent that the amount of a clean, unconditional, evergreen, and irrevocable letter of credit, issued for a term of not less than 1 year and in conformity with the requirements set forth in this subparagraph, equals or exceeds the liability of an unauthorized or unapproved reinsurer for unearned premiums, outstanding losses, and an adequate reserve for incurred but not reported losses under a specific reinsurance agreement. The requirements are that such a clean and irrevocable letter of credit be issued under arrangements satisfactory to the department as constituting security to the ceding insurer substantially equal to that of a deposit under subparagraph 2. and that the letter be issued by a banking institution which is a member of the Federal Reserve System and which has financial standing satisfactory to the commissioner. The department may adopt rules requiring that the letter adhere in its wording to a format for letters of credit as the format has been or may be adopted or approved by the National Association of Insurance Commissioners.

4.  When the reinsurance is ceded to a reinsurer which maintains a trust fund, in a bank or trust company that is subject to supervision by any state of the United States or that is a member of the Federal Reserve System, for the payment of the valid claims for business written in the United States. The trust shall consist of a trusteed account in an amount not less than the reinsurer's liabilities attributable to reinsurance by ceding insurers for business written in the United States and, in addition, the reinsurer shall maintain a trusteed surplus of not less than $20 million. Such trust shall be established in a form approved, and any amendments to the trust approved, by the insurance commissioner where the trust is domiciled, or the insurance commissioner of another state who, pursuant to the terms of the trust agreement, has accepted principal regulatory oversight of the trust. The trust shall remain in effect for as long as the reinsurer has outstanding obligations due under the reinsurance agreements subject to the trust. The trust assets must be in cash or securities which are qualified as admitted assets under part II of chapter 625 and which have a market value of the required liabilities and trusteed surplus. The reinsurer shall report quarterly to the insurance commissioner information substantially the same as that required to be reported on the National Association of Insurance Commissioners Annual Statement form by licensed insurers to enable the insurance commissioner to determine the sufficiency of the trust fund. The trust and the reinsurer shall be subject to examination as determined by the commissioner.

5.  The credit permitted by subparagraph (a)4. and the credit permitted by subparagraph (b)2. shall not be allowed unless the assuming insurer in substance agrees in the trust agreement to the following conditions:

a.  Notwithstanding any other provisions in the trust instrument, if the trust fund is inadequate because it contains an amount less than the amount required by the department or, if the grantor of the trust has been declared insolvent or placed into receivership, rehabilitation, liquidation, or similar proceedings under the laws of its state or country of domicile, the trustee shall comply with an order of the commissioner with regulatory oversight over the trust or with an order of a court of competent jurisdiction directing the trustee to transfer to the commissioner with regulatory oversight all of the assets of United States trust beneficiaries.

b.  The assets shall be distributed by, and claims of United States trust beneficiaries shall be filed with and valued by, the commissioner with regulatory oversight in accordance with the laws of the state in which the trust is domiciled that are applicable to the liquidation of domestic insurance companies.

c.  If the commissioner with regulatory oversight determines that the assets of the trust fund or any part thereof are not necessary to satisfy the claims for business written in the United States, the assets or any part thereof shall be returned by the commissioner with regulatory oversight to the trustee for distribution in accordance with the trust agreement.

d.  The grantor shall waive any right otherwise available to it under United States law that is inconsistent with this provision.

(c)  For the purposes of this subsection only, the term "ceding insurer" shall include any health maintenance organization operating under a certificate of authority issued under part I of chapter 641.

(4)  A ceding insurer which assumes a substantial volume of reinsurance may retrocede all or part of any particular risk or class of risks with any assuming insurer and take credit for such reinsurance, whether or not the assuming insurer is authorized or approved by the department and whether or not funds are withheld by the ceding insurer, unless such retrocessions are found by the department to be for the purpose of evasion of other requirements or prohibitions of this code.

(5)  The department shall disallow any credit which it finds would be contrary to the proper interests of the policyholders or stockholders of a ceding domestic insurer.

(6)  No credit may be allowed for reinsurance in an unauthorized or unapproved assuming insurer unless such insurer designates the commissioner or a person resident in the United States as agent for service of process in any action arising out of, or in connection with such reinsurance.

(7)  Credit shall be allowed to any ceding insurer for reinsurance otherwise complying with this section only when the reinsurance is payable by the assuming insurer on the basis of the liability of the ceding insurer under the contract or contracts reinsured without diminution because of insolvency of the ceding insurer; and such credit shall be allowed to the ceding insurer for reinsurance otherwise complying with this section only when the reinsurance agreement provides that payments by the assuming insurer will be made directly to the ceding insurer or its receiver, except when:

(a)  The reinsurance contract specifically provides payment to the named insured, assignee, or named beneficiary of the policy issued by the ceding insurer in the event of the insolvency of the ceding insurer; or

(b)  The assuming insurer, with the consent of the named insured, has assumed the policy obligations of the ceding insurer as direct obligations of the assuming insurer in substitution for the obligations of the ceding insurer to the named insured.

(8)  No person, other than the ceding insurer, has any rights against the reinsurer which are not specifically set forth in the contract of reinsurance or in a specific written, signed agreement between the reinsurer and the person.

(9)  No authorized insurer may knowingly accept as assuming reinsurer any risk covering a subject of insurance resident, located, or to be performed in this state and written directly by any insurer not then authorized to transact such insurance in this state, other than as to surplus lines insurance lawfully written under part VIII of chapter 626.

(10)  Any authorized insurer ceding directly written risks of loss under this section shall within 30 days of receipt of a cover note or similar confirmation of coverage, or in no event no later than 6 months after the effective date of the reinsurance treaty, file with the department one copy of a summary statement containing the following information about each treaty:

(a)  The contract period;

(b)  The nature of the reinsured's business;

(c)  An indication as to whether the treaty is proportional, nonproportional, coinsurance, modified coinsurance, or indemnity, as applicable;

(d)  The ceding company's loss retention per risk;

(e)  The reinsured limits;

(f)  Any special contract restrictions;

(g)  A schedule of reinsurers assuming the risks of loss;

(h)  An indication as to whether payments to the assuming insurer are based on written premiums or earned premiums;

(i)  Identification of any intermediary or broker used in obtaining the reinsurance and the commission paid them if known; and

(j)  Ceding commissions and allowances.

The summary statement shall be signed and attested to by either the chief executive officer or the chief financial officer of the reporting insurer. In addition to the summary statement, the Insurance Commissioner may require the filing of any supporting information relating to the ceding of such risks as she or he deems necessary. If the summary statement prepared by the ceding insurer discloses that the net effect of a reinsurance treaty or treaties (or series of treaties with one or more affiliated reinsurers entered into for the purpose of avoiding the following threshold amount) at any time results in an increase of more than 25 percent to the insurer's surplus as to policyholders, then the insurer shall certify in writing to the department that the relevant reinsurance treaty or treaties complies with the accounting requirements contained in any rule promulgated by the department pursuant to subsection (11) or subsection (13). If such certificate is filed after the summary statement of such reinsurance treaty or treaties, the insurer shall refile the summary statement with the certificate. In any event, the certificate shall state that a copy of the certificate was sent to the reinsurer under the reinsurance treaty. This subsection applies to cessions of directly written risk of loss. This subsection does not apply to contracts of facultative reinsurance or to any ceding insurer with surplus as to policyholder that exceeds $100 million as of the immediately preceding December 31. Additionally, any ceding insurer otherwise subject to this section with less than $500,000 in direct premiums written in this state during the preceding calendar year or with less than 1,000 policyholders at the end of the preceding calendar year is exempt from the requirements of this subsection. However, any ceding insurer otherwise subject to this section with more than $250,000 in direct premiums written in this state during the preceding calendar quarter is not exempt from the requirements of this subsection. The Insurance Commissioner may, upon a showing of good cause, waive the requirements of this subsection.

(11)  The department may disallow any credit in accounting and financial statements on account of the reinsurance of direct insurance risks whereby a ceding direct insurer increases its surplus to policyholders as a result of payment of consideration to an assuming reinsurer for underwriting any loss obligation already incurred in excess of the consideration paid; or where the consideration paid by the ceding insurer in connection with transferring any loss obligation already incurred is derived from present value or discounting concepts based upon anticipated investment income.

(12)  If the department finds that a reinsurance agreement creates a substantial risk of insolvency to either insurer entering into the reinsurance agreement, the department may by order require a cancellation of the reinsurance agreement.

(13)  No credit shall be allowed for reinsurance with regard to which the reinsurance agreement does not create a meaningful transfer of risk of loss to the reinsurer. The department shall adopt rules which are in substantial conformity with the 1991 National Association of Insurance Commissioners Practices and Procedures Manual for Property and Casualty Insurers and the NAIC Practices and Procedures Manual for Life and Health Insurers providing the criteria for determining whether a meaningful transfer of risk of loss has been accomplished.

History.--s. 108, ch. 59-205; ss. 13, 35, ch. 69-106; s. 1, ch. 74-203; s. 3, ch. 76-168; s. 1, ch. 77-457; ss. 2, 3, ch. 81-318; ss. 85, 86, 809(1st), ch. 82-243; s. 1, ch. 83-165; s. 2, ch. 85-177; s. 10, ch. 85-245; s. 1, ch. 86-86; s. 8, ch. 86-160; s. 14, ch. 87-226; s. 37, ch. 89-360; ss. 45, 187, 188, ch. 91-108; s. 4, ch. 91-429; s. 5, ch. 92-146; s. 9, ch. 93-410; s. 200, ch. 97-102; s. 2, ch. 97-214; s. 89, ch. 98-199; s. 17, ch. 99-3.

624.80  Definitions.

624.81  Notice to comply with written requirements of department; noncompliance.

624.82  Confidentiality of certain proceedings and records.

624.83  Prohibited acts during period of supervision.

624.84  Review and stay of action.

624.85  Administrative election of proceedings.

624.86  Other laws; conflicts; meetings between the department and the supervisor.

624.87  Administrative supervision; expenses.

624.91  The Florida Healthy Kids Corporation Act.

624.80  Definitions.--As used in this part:

(1)  "Insurer" means and includes every person as defined in s. 624.03 as limited to:

(a)  Any domestic or commercially domiciled insurer who is doing business as an insurer, or has transacted insurance in this state, and against whom claims arising from that transaction may exist now or in the future.

(b)  Any specialty insurer as that term is defined in s. 628.4615.

(c)  Any domestic or commercially domiciled fraternal benefit society which is subject to the provisions of chapter 632.

(2)  "Unsound condition" means any of the following conditions:

(a)  The insurer's required surplus, capital, or capital stock is impaired to an extent prohibited by law;

(b)  The insurer continues to write new business when it has not maintained the required surplus or capital; or

(c)  The insurer attempts to dissolve or liquidate without first having made provisions, satisfactory to the department, for liabilities arising from insurance policies issued by the insurer.

(3)  "Exceeded its powers" means the following conditions:

(a)  The insurer has refused to permit examination by the department of its books, papers, accounts, records, or business practices;

(b)  An insurer organized in this state has unlawfully removed from this state books, papers, accounts, or records necessary for an examination of the insurer by the department;

(c)  The insurer has failed to promptly comply with the applicable financial reporting statutes and departmental requests relating thereto;

(d)  The insurer has neglected or refused to observe an order of the department to correct a deficiency in its capital or surplus; or

(e)  The insurer has unlawfully or in violation of a department order:

1.  Totally reinsured its entire outstanding business; or

2.  Merged or consolidated substantially its entire property or business with another insurer.

(4)  "Consent" means authorized written agreement to supervision by the insurer.

(5)  "Commercially domiciled insurer" means and includes any foreign or alien insurer which, during its 3 preceding fiscal years taken together, or during any lesser period of time if not authorized to do business in this state or if it has been licensed to transact its business in this state only for the lesser period of time, has written an average of 25 percent or more direct premiums in this state than it has written in its state of domicile during the same period, or the direct premiums written in this state constitute more than 55 percent of its total direct premiums written everywhere in the United States during its 3 preceding fiscal years taken together, or during any lesser period of time if not authorized to do business in this state or if it has been authorized to transact its business in this state only for the lesser period of time, as reported in its most recent applicable annual or quarterly statements.

History.--ss. 71, 72, ch. 89-360; s. 46, ch. 91-108; s. 4, ch. 91-429.

624.81  Notice to comply with written requirements of department; noncompliance.--

(1)  If the department determines that the conditions set forth in subsection (2) exist, the department shall notify the insurer in writing of its determination, setting forth the reasons giving rise to the determination, and specifying that the department is applying and effectuating the provisions of this part.

(2)  An insurer shall be subject to administrative supervision by the department if upon examination or at any other time the department determines that:

(a)  The insurer is in unsound condition;

(b)  The insurer's methods or practices render the continuance of its business hazardous to the public or to its insureds; or

(c)  The insurer has exceeded its powers granted under its certificate of authority and applicable law.

(3)  Within 15 days of receipt of notice of the department's determination to proceed under this part, an insurer shall submit to the department a plan to correct the conditions set forth in the notice. For good cause shown, the department may extend the 15-day time period for submission of the plan. If the department and the insurer agree on a corrective plan, a written agreement shall be entered into to carry out the plan.

(4)  If an insurer fails to timely submit a plan, the department may specify the requirements of a plan to address the conditions giving rise to imposition of administrative supervision under this part. In addition, failure of the insurer to timely submit a plan is a violation of the provisions of this code punishable in accordance with s. 624.418.

(5)  The plan shall address, but shall not be limited to, each of the activities of the insurer's business which are set forth in s. 624.83.

(6)  If the department and the insurer are unable to agree on the provisions of the plan, the department may proceed under applicable provisions of this code other than the provisions of this part.

(7)  The insurer shall have 60 days, or a longer period of time as designated by the department but not to exceed 120 days, after the date of the written agreement or the receipt of the department's plan within which to comply with the requirements of the department. At the conclusion of the initial period of supervision, the department may extend the supervision in increments of 60 days or longer, not to exceed 120 days, if conditions justifying supervision exist. Each extension of supervision shall provide the insurer with a point of entry pursuant to chapter 120.

(8)  The initiation or pendency of administrative proceedings arising from actions taken under this section shall not preclude the department from initiating judicial proceedings to place an insurer in conservation, rehabilitation, or liquidation or initiating other delinquency proceedings however designated under the laws of this state.

(9)  If it is determined that the conditions giving rise to administrative supervision have been remedied so that the continuance of its business is no longer hazardous to the public or to its insureds, the department shall release the insurer from supervision.

History.--ss. 71, 72, ch. 89-360; s. 4, ch. 91-429.

624.82  Confidentiality of certain proceedings and records.--

(1)  Orders, notices, correspondence, reports, records, and other information in the possession of the department relating to the supervision of any insurer are confidential and exempt from the provisions of s. 119.07(1), except as otherwise provided in this section. Proceedings and hearings relating to the department's supervision of any insurer are exempt from the provisions of s. 286.011, except as otherwise provided in this section.

(2)  The personnel of the department shall have access to proceedings, hearings, notices, correspondence, reports, records, or other information as permitted by the department.

(3)  The department may open the proceedings or hearings or disclose the contents of the notices, correspondence, reports, records, or other information to a department, agency, or instrumentality of this or another state or the United States if it determines that the disclosure is necessary or proper for the enforcement of the laws of the United States or of this or another state of the United States.

(4)  The department may open the proceedings or hearings or make public the notices, correspondence, reports, records, or other information if the department finds that it is in the best interest of the public, the insurer in supervision, or its insureds.

(5)  This section does not apply to proceedings, hearings, notices, correspondence, reports, records, or other information obtained upon the appointment of a receiver for the insurer by a court of competent jurisdiction.

(6)  The exemptions provided by this section shall terminate on the earlier of the following dates:

(a)  One year after the conclusion of the entire period of supervision, as determined pursuant to s. 624.81(3); or

(b)  The date of the entry of an order of seizure, rehabilitation, or liquidation pursuant to chapter 631.

History.--ss. 71, 72, ch. 89-360; s. 4, ch. 91-429; s. 6, ch. 93-78; s. 366, ch. 96-406.

624.83  Prohibited acts during period of supervision.--The department may provide that the insurer may not conduct the following activities during the period of supervision, without prior approval by the department:

(1)  Dispose of, convey, or encumber any of its assets or its business in force;

(2)  Withdraw any of its bank accounts;

(3)  Lend any of its funds;

(4)  Invest any of its funds;

(5)  Transfer any of its property;

(6)  Incur any debt, obligation, or liability;

(7)  Merge or consolidate with another company;

(8)  Enter into any new reinsurance contract or treaty;

(9)  Terminate, surrender, forfeit, convert, or lapse any insurance policy, certificate, or contract of insurance, except for nonpayment of premiums due;

(10)  Release, pay, or refund premium deposits, accrued cash or loan values, unearned premiums, or other reserves on any insurance policy or certificate; or

(11)  Make any material change in management.

History.--ss. 71, 72, ch. 89-360; s. 4, ch. 91-429.

624.84  Review and stay of action.--During the period of supervision, the insurer may contest an action taken or proposed to be taken by the supervisor, specifying the manner wherein the action complained of would not result in improving the condition of the insurer, and the request shall stay the action specified pending reconsideration of the action by the department. If upon reconsideration the action of the department is upheld, the stay shall be lifted. Denial of the insurer's request upon reconsideration entitles the insurer to request a proceeding under ss. 120.569 and 120.57.

History.--ss. 71, 72, ch. 89-360; s. 4, ch. 91-429; s. 268, ch. 96-410.

624.85  Administrative election of proceedings.--If the department determines to act under authority of this part, the sequence of its acts and proceedings shall be as set forth herein. However, it is a purpose and substance of this part to allow the department administrative discretion in the event of insurer delinquencies and, in furtherance of that purpose, the department is hereby authorized, in respect to insurer delinquencies or suspected delinquencies, to proceed and administer either under the provisions of this part or under any other applicable law, or under the provisions of this part in conjunction with other applicable law, and it is so provided. Nothing contained in this part or in any other provision of law shall preclude the department from initiating judicial proceedings to place an insurer in conservation, rehabilitation, or liquidation proceedings or other delinquency proceedings however designated under the laws of this state, regardless of whether the department has previously initiated administrative supervision proceedings under this part against the insurer. The entry of an order of seizure, rehabilitation, or liquidation pursuant to chapter 631 shall terminate all proceedings pending pursuant to this part.

History.--ss. 71, 72, ch. 89-360; s. 4, ch. 91-429.

624.86  Other laws; conflicts; meetings between the department and the supervisor.--During the period of administrative supervision, the department may meet with a supervisor appointed under this part and with the attorney or other representative of the supervisor and such meetings are exempt from the provisions of s. 286.011.

History.--ss. 71, 72, ch. 89-360; s. 4, ch. 91-429; s. 4, ch. 93-78; s. 367, ch. 96-406.

624.87  Administrative supervision; expenses.--

(1)  During the period of supervision the department by contract or otherwise may appoint a deputy supervisor to supervise the insurer.

(2)  Each insurer which is subject to administrative supervision by the department shall pay to the department the expenses of its administrative supervision at the rates adopted by the department. Expenses shall include actual travel expenses, a reasonable living expense allowance, compensation of the deputy supervisor or other person employed or appointed by the department for purposes of the supervision, and necessary attendant administrative costs of the department directly related to the supervision. The travel expense and living expense allowance shall be limited to those expenses necessarily incurred on account of the administrative supervision and shall be paid by the insurer together with compensation upon presentation by the department to the insurer of a detailed account of the charges and expenses after a detailed statement has been filed by the deputy supervisor or other person employed or appointed by the department and approved by the department.

(3)  All moneys collected from insurers for the expenses of administrative supervision shall be deposited into the Insurance Commissioner's Regulatory Trust Fund, and the department is authorized to make deposits from time to time into this fund from moneys appropriated for the operation of the department.

(4)  Notwithstanding the provisions of s. 112.061, the department is authorized to pay to the deputy supervisor or person employed or appointed by the department for purposes of the supervision out of such trust fund the actual travel expenses, reasonable living expense allowance, and compensation in accordance with the statement filed with the department by the deputy supervisor or other person, as provided in subsection (2), upon approval by the department.

(5)  The department may in whole or in part defer payment of expenses due from the insurer pursuant to this section upon a showing that payment would adversely impact on the financial condition of the insurer and jeopardize its rehabilitation. The payment shall be made by the insurer when the condition is removed and the payment would no longer jeopardize the insurer's financial condition.

History.--ss. 71, 72, ch. 89-360; s. 4, ch. 91-429.

¹624.91  The Florida Healthy Kids Corporation Act.--

(1)  SHORT TITLE.--This section may be cited as the "William G. 'Doc' Myers Healthy Kids Corporation Act."

(2)  LEGISLATIVE INTENT.--

(a)  The Legislature finds that increased access to health care services could improve children's health and reduce the incidence and costs of childhood illness and disabilities among children in this state. Many children do not have comprehensive, affordable health care services available. It is the intent of the Legislature that the Florida Healthy Kids Corporation provide comprehensive health insurance coverage to such children. The corporation is encouraged to cooperate with any existing health service programs funded by the public or the private sector and to work cooperatively with the Florida Partnership for School Readiness.

(b)  It is the intent of the Legislature that the Florida Healthy Kids Corporation serve as one of several providers of services to children eligible for medical assistance under Title XXI of the Social Security Act. Although the corporation may serve other children, the Legislature intends the primary recipients of services provided through the corporation be school-age children with a family income below 200 percent of the federal poverty level, who do not qualify for Medicaid. It is also the intent of the Legislature that state and local government Florida Healthy Kids funds, to the extent permissible under federal law, be used to obtain matching federal dollars.

(3)  NONENTITLEMENT.--Nothing in this section shall be construed as providing an individual with an entitlement to health care services. No cause of action shall arise against the state, the Florida Healthy Kids Corporation, or a unit of local government for failure to make health services available under this section.

(4)  CORPORATION AUTHORIZATION, DUTIES, POWERS.--

(a)  There is created the Florida Healthy Kids Corporation, a not-for-profit corporation which operates on sites designated by the corporation.

(b)  The Florida Healthy Kids Corporation shall phase in a program to:

1.  Organize school children groups to facilitate the provision of comprehensive health insurance coverage to children;

2.  Arrange for the collection of any family, local contributions, or employer payment or premium, in an amount to be determined by the board of directors, to provide for payment of premiums for comprehensive insurance coverage and for the actual or estimated administrative expenses;

3.  Establish the administrative and accounting procedures for the operation of the corporation;

4.  Establish, with consultation from appropriate professional organizations, standards for preventive health services and providers and comprehensive insurance benefits appropriate to children; provided that such standards for rural areas shall not limit primary care providers to board-certified pediatricians;

5.  Establish eligibility criteria which children must meet in order to participate in the program;

6.  Establish procedures under which applicants to and participants in the program may have grievances reviewed by an impartial body and reported to the board of directors of the corporation;

7.  Establish participation criteria and, if appropriate, contract with an authorized insurer, health maintenance organization, or insurance administrator to provide administrative services to the corporation;

8.  Establish enrollment criteria which shall include penalties or waiting periods of not fewer than 60 days for reinstatement of coverage upon voluntary cancellation for nonpayment of family premiums;

9.  If a space is available, establish a special open enrollment period of 30 days' duration for any child who is enrolled in Medicaid or Medikids if such child loses Medicaid or Medikids eligibility and becomes eligible for the Florida Healthy Kids program;

10.  Contract with authorized insurers or any provider of health care services, meeting standards established by the corporation, for the provision of comprehensive insurance coverage to participants. Such standards shall include criteria under which the corporation may contract with more than one provider of health care services in program sites. Health plans shall be selected through a competitive bid process. The selection of health plans shall be based primarily on quality criteria established by the board. The health plan selection criteria and scoring system, and the scoring results, shall be available upon request for inspection after the bids have been awarded;

11.  Develop and implement a plan to publicize the Florida Healthy Kids Corporation, the eligibility requirements of the program, and the procedures for enrollment in the program and to maintain public awareness of the corporation and the program;

12.  Secure staff necessary to properly administer the corporation. Staff costs shall be funded from state and local matching funds and such other private or public funds as become available. The board of directors shall determine the number of staff members necessary to administer the corporation;

13.  As appropriate, enter into contracts with local school boards or other agencies to provide onsite information, enrollment, and other services necessary to the operation of the corporation;

14.  Provide a report on an annual basis to the Governor, Insurance Commissioner, Commissioner of Education, Senate President, Speaker of the House of Representatives, and Minority Leaders of the Senate and the House of Representatives;

15.  Each fiscal year, establish a maximum number of participants by county, on a statewide basis, who may enroll in the program without the benefit of local matching funds. Thereafter, the corporation may establish local matching requirements for supplemental participation in the program. The corporation may vary local matching requirements and enrollment by county depending on factors which may influence the generation of local match, including, but not limited to, population density, per capita income, existing local tax effort, and other factors. The corporation also may accept in-kind match in lieu of cash for the local match requirement to the extent allowed by Title XXI of the Social Security Act; and

16.  Establish eligibility criteria, premium and cost-sharing requirements, and benefit packages which conform to the provisions of the Florida Kidcare program, as created in ss. 409.810-409.820.

(c)  Coverage under the corporation's program is secondary to any other available private coverage held by the participant child or family member. The corporation may establish procedures for coordinating benefits under this program with benefits under other public and private coverage.

(d)  The Florida Healthy Kids Corporation shall be a private corporation not for profit, organized pursuant to chapter 617, and shall have all powers necessary to carry out the purposes of this act, including, but not limited to, the power to receive and accept grants, loans, or advances of funds from any public or private agency and to receive and accept from any source contributions of money, property, labor, or any other thing of value, to be held, used, and applied for the purposes of this act.

(5)  BOARD OF DIRECTORS.--

(a)  The Florida Healthy Kids Corporation shall operate subject to the supervision and approval of a board of directors chaired by the Insurance Commissioner or her or his designee, and composed of 12 other members selected for 3-year terms of office as follows:

1.  One member appointed by the Commissioner of Education from among three persons nominated by the Florida Association of School Administrators;

2.  One member appointed by the Commissioner of Education from among three persons nominated by the Florida Association of School Boards;

3.  One member appointed by the Commissioner of Education from the Office of School Health Programs of the Florida Department of Education;

4.  One member appointed by the Governor from among three members nominated by the Florida Pediatric Society;

5.  One member, appointed by the Governor, who represents the Children's Medical Services Program;

6.  One member appointed by the Insurance Commissioner from among three members nominated by the Florida Hospital Association;

7.  Two members, appointed by the Insurance Commissioner, who are representatives of authorized health care insurers or health maintenance organizations;

8.  One member, appointed by the Insurance Commissioner, who represents the Institute for Child Health Policy;

9.  One member, appointed by the Governor, from among three members nominated by the Florida Academy of Family Physicians;

10.  One member, appointed by the Governor, who represents the Agency for Health Care Administration; and

11.  The State Health Officer or her or his designee.

(b)  A member of the board of directors may be removed by the official who appointed that member. The board shall appoint an executive director, who is responsible for other staff authorized by the board.

(c)  Board members are entitled to receive, from funds of the corporation, reimbursement for per diem and travel expenses as provided by s. 112.061.

(d)  There shall be no liability on the part of, and no cause of action shall arise against, any member of the board of directors, or its employees or agents, for any action they take in the performance of their powers and duties under this act.

(6)  LICENSING NOT REQUIRED; FISCAL OPERATION.--

(a)  The corporation shall not be deemed an insurer. The officers, directors, and employees of the corporation shall not be deemed to be agents of an insurer. Neither the corporation nor any officer, director, or employee of the corporation is subject to the licensing requirements of the insurance code or the rules of the Department of Insurance. However, any marketing representative utilized and compensated by the corporation must be appointed as a representative of the insurers or health services providers with which the corporation contracts.

(b)  The board has complete fiscal control over the corporation and is responsible for all corporate operations.

(c)  The Department of Insurance shall supervise any liquidation or dissolution of the corporation and shall have, with respect to such liquidation or dissolution, all power granted to it pursuant to the insurance code.

(7)  ACCESS TO RECORDS; CONFIDENTIALITY; PENALTIES.--Notwithstanding any other laws to the contrary, the Florida Healthy Kids Corporation shall have access to the medical records of a student upon receipt of permission from a parent or guardian of the student. Such medical records may be maintained by state and local agencies. Any identifying information, including medical records and family financial information, obtained by the corporation pursuant to this subsection is confidential and is exempt from the provisions of s. 119.07(1). Neither the corporation nor the staff or agents of the corporation may release, without the written consent of the participant or the parent or guardian of the participant, to any state or federal agency, to any private business or person, or to any other entity, any confidential information received pursuant to this subsection. A violation of this subsection is a misdemeanor of the second degree, punishable as provided in s. 775.082 or s. 775.083.

History.--s. 1, ch. 90-199; s. 1, ch. 91-188; s. 30, ch. 91-201; s. 5, ch. 91-429; s. 7, ch. 93-78; s. 21, ch. 93-129; s. 1, ch. 96-337; s. 368, ch. 96-406; s. 28, ch. 96-418; s. 9, ch. 96-420; s. 1722, ch. 97-102; s. 8, ch. 97-153; s. 54, ch. 98-288; s. 5, ch. 99-357.

¹Note.--Section 56, ch. 98-288, provides that "[t]he provisions of this act which would require changes to contracts in existence on June 30, 1998, between the Florida Healthy Kids Corporation and its contracted providers shall be applied to such contracts upon the renewal of the contracts, but not later than July 1, 2000."