House Bill 4451

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    Florida House of Representatives - 1998                HB 4451

        By Representative Rayson






  1                      A bill to be entitled

  2         An act relating to insurance; amending ss.

  3         624.425, 624.428, 624.478, 626.112, F.S.;

  4         requiring agents to be appointed; amending s.

  5         624.501, F.S.; clarifying application of fees

  6         for title insurance agents; amending s.

  7         626.022, F.S.; providing for applicability of

  8         ch. 626, F.S.; amending s. 626.051, F.S.;

  9         revising the definition of the term "life

10         agent"; prescribing requirements for soliciting

11         or selling variable life insurance, variable

12         annuity contracts, and other indeterminate

13         value contracts; amending s. 626.062, F.S.;

14         conforming a cross-reference; amending ss.

15         626.141, 626.171, 626.181, 626.211, 626.221,

16         626.266, 626.281, 626.311, 626.511, 626.521,

17         626.561, 626.611, 626.621, 626.641, 626.651,

18         626.727, 626.730, 626.732, 626.733, 626.877,

19         F.S.; including customer representatives within

20         and deleting claims investigators from

21         application of certain provisions; excluding

22         solicitors; authorizing the department to

23         secure a credit and character report on certain

24         persons; providing limits; providing

25         requirements of the department; amending s.

26         626.451, F.S.; requiring law enforcement

27         agencies, the state attorney's office, and

28         court clerks to notify the department of agents

29         found guilty of felonies; amending s. 626.201,

30         F.S.; providing for interrogatories before

31         reinstatement; amending s. 626.321, F.S.;

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  1         authorizing certain entities that hold a

  2         limited license for credit life or disability

  3         insurance to sell credit property insurance;

  4         authorizing persons who hold a limited license

  5         for credit insurance to hold certain additional

  6         licenses; amending s. 626.331, F.S.; requiring

  7         licensure of certain agents for certain

  8         appointments; providing that an appointment fee

  9         is not refundable; amending s. 626.342, F.S.;

10         prohibiting furnishing supplies to certain

11         agents; amending s. 626.541, F.S.; specifying

12         names and addresses required of certain

13         personnel of corporations; amending s. 626.592,

14         F.S.; revising provisions relating to

15         designation of primary agents; amending s.

16         626.601, F.S.; authorizing the department to

17         initiate investigation of agents or other

18         licensees under certain conditions; amending s.

19         626.681, F.S.; providing for administrative

20         fines in addition to certain actions;

21         increasing such fines; amending s. 626.691,

22         F.S.; authorizing the department to place

23         certain persons on probation in addition to

24         suspending, revoking, or refusing to renew a

25         license or appointment; creating s. 626.692,

26         F.S.; providing for restitution under certain

27         circumstances; amending s. 626.7351, F.S.;

28         specifying additional qualifications for a

29         customer representative's license; amending s.

30         626.739, F.S.; specifying a temporary license

31         as general lines insurance agent; amending s.

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  1         626.741, F.S.; authorizing the department to

  2         issue a customer representative license to

  3         certain persons; providing a limitation;

  4         providing procedures for agent licensure of

  5         certain persons under certain circumstances;

  6         providing for cancellation of a nonresident

  7         agent's license; amending ss. 626.792, 626.835,

  8         F.S.; providing procedures for issuing a

  9         resident agent's license to certain persons;

10         amending s. 626.837, F.S.; clarifying

11         conditions of placing certain excess or

12         rejected risks; amending s. 626.8411, F.S.;

13         conforming a cross-reference; amending s.

14         626.8417, F.S.; revising the qualifications for

15         licensure as a title insurance agent; amending

16         s. 626.8418, F.S.; increasing the amount of the

17         deposit or bond of a title insurance agency;

18         specifying that the bond of a title insurance

19         agency must be posted with the department and

20         must inure to the benefit of damaged insurers

21         and insureds; amending ss. 626.8437, 626.844,

22         F.S.; clarifying application of grounds for

23         refusal, suspension, or revocation of license

24         or appointment; amending s. 626.8443, F.S.;

25         providing additional limitations on activities

26         during suspension or after revocation of a

27         license; amending s. 626.852, F.S.; providing

28         for applicability; amending s. 626.858, F.S.;

29         revising the definition of the term

30         "nonresident adjuster" to define "nonresident

31         company employee adjuster"; creating s.

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  1         626.8582, F.S.; defining the term "nonresident

  2         public adjuster"; creating s. 626.8884, F.S.;

  3         defining the term "nonresident independent

  4         adjuster"; amending s. 626.865, F.S.;

  5         increasing the bonding requirements for public

  6         adjusters; amending s. 626.873, F.S.; providing

  7         for licensure and qualifications for resident

  8         company employee adjusters; creating s.

  9         626.8732, F.S.; providing for licensure and

10         qualifications for nonresident public

11         adjusters; creating s. 626.8734, F.S.;

12         providing for licensure and qualifications for

13         nonresident independent adjusters; creating s.

14         626.8736, F.S.; providing for service of

15         process on nonresident independent adjusters

16         and on nonresident public adjusters; creating

17         s. 626.8737, F.S.; establishing a retaliatory

18         tax provision regarding certain fines, taxes,

19         penalties, license fees, monetary deposits,

20         securities, or other obligations, limitations,

21         or prohibitions imposed by another state upon

22         Florida resident insurance adjusters in

23         connection with the issuance of, or activities

24         under, a nonresident adjuster's license under

25         that state's laws; creating s. 626.8738, F.S.;

26         providing a criminal penalty for acting as a

27         resident or nonresident public adjuster without

28         the required license; amending s. 626.869,

29         F.S.; requiring certain continuing education

30         courses; clarifying requirements of such

31         courses; amending s. 626.8695, F.S.; providing

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  1         for notice to the department; requiring

  2         designation of primary adjuster on forms

  3         prescribed by the department; amending s.

  4         626.872, F.S.; prohibiting the department from

  5         issuing a temporary adjuster's license to

  6         certain persons; amending s. 626.873, F.S.;

  7         providing procedures for licensing certain

  8         persons as resident adjusters; providing for

  9         cancellation of nonresident adjuster's license;

10         amending s. 626.875, F.S; prescribing time for

11         keeping adjusters' records; amending s.

12         626.922, F.S.; requiring surplus lines agents

13         to perform certain duties relating to evidence

14         of insurance; amending s. 626.928, F.S.;

15         increasing bonds for surplus lines agents;

16         amending ss. 626.927, 626.9271, 626.929,

17         626.935, 626.944, F.S.; requiring appointment

18         in addition to licensure of certain persons;

19         amending s. 627.745, F.S.; clarifying a

20         provision related to final examination;

21         amending s. 634.420, F.S.; clarifying

22         application of accountability provisions;

23         amending s. 634.317, F.S.; providing for

24         responsibility and accountability of sales

25         representatives; amending s. 642.036, F.S.;

26         deleting requirement that the addresses of

27         certain agents be filed with the department;

28         repealing s. 626.112(6), F.S., relating to

29         licensing of claims investigators; repealing s.

30         626.532, F.S., relating to insurance vending

31         machine licenses; repealing s. 626.857, F.S.,

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  1         relating to the definition of "claims

  2         investigator"; providing an effective date.

  3

  4  Be It Enacted by the Legislature of the State of Florida:

  5

  6         Section 1.  Section 624.425, Florida Statutes, is

  7  amended to read:

  8         624.425  Resident agent and countersignature required,

  9  property, casualty, surety insurance.--

10         (1)  Except as stated in s. 624.426, no authorized

11  property, casualty, or surety insurer shall assume direct

12  liability as to a subject of insurance resident, located, or

13  to be performed in this state unless the policy or contract of

14  insurance is issued by or through, and is countersigned by, a

15  local producing agent who is a resident of this state,

16  regularly commissioned and licensed currently as an agent and

17  appointed as an agent for of the insurer under this code. If

18  two or more authorized insurers issue a single policy of

19  insurance against legal liability for loss or damage to person

20  or property caused by the nuclear energy hazard, or a single

21  policy insuring against loss or damage to property by

22  radioactive contamination, whether or not also insuring

23  against one or more other perils proper to insure against in

24  this state, such policy if otherwise lawful may be

25  countersigned on behalf of all of the insurers by a licensed

26  and appointed resident agent of any insurer appearing thereon.

27  Such agent shall receive on each policy or contract the full

28  and usual commission allowed and paid by the insurer to its

29  agents on business written or transacted by them for the

30  insurer.

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  1         (2)  If any subject of insurance referred to in

  2  subsection (1) is insured under a policy, or contract, or

  3  certificate of renewal or continuation thereof, issued in

  4  another state and covering also property and risks outside

  5  this state, a certificate evidencing such insurance as to

  6  subjects located, resident, or to be performed in this state,

  7  shall be issued by or through and shall be countersigned by

  8  the insurer's commissioned and appointed licensed local

  9  producing agent resident in this state in the same manner and

10  subject to the same conditions as is provided in subsection

11  (1) as to policies and contracts; except that the compensation

12  to be paid to the agent may relate only to the Florida portion

13  of the insurance risks represented by such policy or contract.

14         (3)  An agent shall not sign or countersign in blank

15  any policy to be issued outside her or his office, or

16  countersign in blank any countersignature endorsement

17  therefor, or certificate issued thereunder.  An agent may give

18  a written power of attorney to the issuing insurance company

19  to countersign such documents by imprinting his name, or the

20  name of the agency or other entity with which the agent may be

21  sharing commission pursuant to s. 626.753(1)(a) and (2),

22  thereon in lieu of manually countersigning such documents; but

23  an agent shall not give a power of attorney to any other

24  person to countersign any such document in her or his name

25  unless the person so authorized is directly employed by the

26  agent and by no other person, and is so employed in the office

27  of the agent.

28         (4)  This section shall not be deemed to prohibit

29  insurers from using salaried licensed and appointed agents for

30  the production and servicing of business in this state and the

31  issuance and countersignature by such agents of insurance

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  1  policies or contracts, when required under subsection (1), and

  2  without payment of commission therefor.

  3         (5)  This section shall not be deemed to prohibit an

  4  insurer from authorizing an agent who is not regularly

  5  commissioned and appointed licensed currently as an agent of

  6  the insurer from countersigning a policy or contract of

  7  insurance issued pursuant to the provisions of ss. 627.311 and

  8  627.351.  This section does not apply to reissuance of

  9  insurance policies or endorsements thereto which are part of a

10  mass reissuance of such policies or endorsements and do not

11  involve a change of premium or payment of agent's commissions.

12         Section 2.  Subsections (1) and (2) of section 624.428,

13  Florida Statutes, are amended to read:

14         624.428  Licensed agent law, life and health

15  insurances.--

16         (1)  No life insurer shall deliver or issue for

17  delivery in this state any policy of life insurance, master

18  group life insurance contract, master credit life policy or

19  agreement, annuity contract, or contract or policy of health

20  insurance, unless the application for such policy or contract

21  is taken by, and the delivery of such policy or contract is

22  made through, an insurance agent of the insurer duly licensed

23  and appointed under the law of this state, who shall receive

24  the usual commission due to an agent from such insurer.

25         (2)  Each such insurer shall maintain a licensed and

26  appointed agent at all times for the purpose of and through

27  whom policies or contracts issued or delivered in this state

28  shall be serviced.

29         Section 3.  Section 624.478, Florida Statutes, is

30  amended to read:

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  1         624.478  Use of agents.--A commercial self-insurance

  2  fund shall use an agent or agents licensed under parts I and

  3  II of chapter 626 to perform any of the activities described

  4  in s. 626.041(2).  A commercial self-insurance fund shall have

  5  the authority to appoint license agents in accordance with

  6  parts I and II of chapter 626, and the fund and its appointed

  7  licensed agents shall be subject to the requirements of such

  8  provisions.

  9         Section 4.  Subsections (16), (17), and (29) of section

10  624.501, Florida Statutes, are amended to read:

11         624.501  Filing, license, appointment, and

12  miscellaneous fees.--The department shall collect in advance,

13  and persons so served shall pay to it in advance, fees,

14  licenses, and miscellaneous charges as follows:

15         (16)  Issuance, reissuance, reinstatement, modification

16  resulting in a modified license being issued, or duplicate

17  copy of any insurance representative license, or an

18  appointment being reinstated.............................$5.00

19         (17)  Additional appointment license continuation fees

20  as prescribed in chapter 626.............................$5.00

21         (29)  Title insurance agents:

22         (a)  Agent's original appointment or biennial renewal

23  or continuation thereof, each insurer and agency's biennial

24  license fee:

25         Appointment fee..................................$42.00

26         State tax.........................................12.00

27         County tax.........................................6.00

28  Total...................................................$60.00

29         (b)  Agency original appointment license fee or

30  biennial renewal or continuation thereof, each insurer:

31         Appointment Licensing fee........................$42.00

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  1         State tax.........................................12.00

  2         County tax.........................................6.00

  3  Total...................................................$60.00

  4         (c)  Filing for title insurance agent's license:

  5         Application for filing, each filing, filing

  6  fee.....................................................$10.00

  7         (d)  Additional appointment continuation fee as

  8  prescribed by s. 626.843.................................$5.00

  9         (e)  Title insurer and title insurance agency

10  administrative surcharge:

11         1.  On or before January 30 of each calendar year, each

12  title insurer shall pay to the department for each licensed

13  title insurance agency appointed by the title insurer and for

14  each retail office of the insurer on January 1 of that

15  calendar year an administrative surcharge of $200.00.

16         2.  On or before January 30 of each calendar year, each

17  licensed title insurance agency shall remit to the department

18  an administrative surcharge of $200.00.

19

20  The administrative surcharge may be used solely to defray the

21  costs to the department in its examination or audit of title

22  insurance agencies agents and retail offices of title insurers

23  and to gather title insurance data for statistical purposes in

24  its regulation of title insurance.

25         Section 5.  Section 626.022, Florida Statutes, is

26  amended to read:

27         626.022  Scope of part.--

28         (1)  This part applies as to insurance agents,

29  solicitors, service representatives, adjusters, and insurance

30  agencies; as to any and all kinds of insurance; and as to

31

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  1  stock insurers, mutual insurers, reciprocal insurers, and all

  2  other types of insurers, except that:

  3         (a)  It does not apply as to reinsurance, except that

  4  ss. 626.011-626.031, ss. 626.102-626.181, ss. 626.191-626.211,

  5  ss. 626.291-626.301, s. 626.331, ss. 626.342-626.521, ss.

  6  626.541-626.591, and ss. 626.601-626.711 shall apply as to

  7  reinsurance intermediaries as defined in s. 626.7492.

  8         (b)  The applicability of this chapter as to fraternal

  9  benefit societies shall be as provided in chapter 632.

10         (c)  It does not apply to a bail bond agent, as defined

11  in s. 648.25, except as provided in chapter 648 or chapter

12  903.

13         (2)  For the purposes of this part, "insurance" also

14  includes annuity contracts.

15         Section 6.  Subsections (1) and (2) of section 626.051,

16  Florida Statutes, are amended to read:

17         626.051  "Life agent" defined.--

18         (1)(a)  For the purposes of this part, a "life agent"

19  is a person who represents one representing an insurer as to

20  life insurance and annuity contracts.  The term also includes

21  an agent appointed as such as to life insurance, fixed-dollar

22  annuity contracts, or variable contracts, and health insurance

23  contracts by the same insurer.

24         (b)  A person may not solicit or sell variable life

25  insurance, variable annuity contracts, or any other

26  indeterminate value or variable contract as defined in s.

27  627.8015, unless the person has successfully completed a

28  licensure examination relating to variable annuity contracts

29  authorized and approved by the department.

30

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  1         (2)  Except as provided in s. 626.112(6)(7), with

  2  respect to any such insurances or contracts, no person shall,

  3  unless licensed as an agent:

  4         (a)  Solicit insurance or annuities or procure

  5  applications; or

  6         (b)  In this state engage or hold himself or herself

  7  out as engaging in the business of analyzing or abstracting

  8  insurance policies or of counseling or advising or giving

  9  opinions to persons relative to insurance or insurance

10  contracts other than:

11         1.  As a consulting actuary advising an insurer; or

12         2.  As to the counseling and advising of labor unions,

13  associations, trustees, employers or other business entities,

14  the subsidiaries and affiliates of each, relative to their

15  interests and those of their members or employees under

16  insurance benefit plans.

17         Section 7.  Subsection (2) of section 626.062, Florida

18  Statutes, is amended to read:

19         626.062  "Health agent" defined.--

20         (2)  Except as provided in s. 626.112(6)(7), with

21  respect to such insurance, no person shall, unless licensed as

22  an agent:

23         (a)  Solicit insurance or procure applications; or

24         (b)  In this state engage or hold himself or herself

25  out as engaging in the business of analyzing or abstracting

26  insurance policies or of counseling or advising or giving

27  opinions to persons relative to insurance contracts other

28  than:

29         1.  As a consulting actuary advising insurers; or

30         2.  As to the counseling and advising of labor unions,

31  associations, trustees, employers or other business entities,

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  1  the subsidiaries and affiliates of each, relative to their

  2  interests and those of their members or employees under

  3  insurance benefit plans.

  4         Section 8.  Section 626.112, Florida Statutes, is

  5  amended to read:

  6         626.112  License and appointment required; agents,

  7  customer representatives, solicitors, adjusters, insurance

  8  agencies, service representatives, managing general agents,

  9  claims investigators.--

10         (1)  No person shall be, act as, or advertise or hold

11  himself or herself out to be an insurance agent, customer

12  representative, solicitor, or adjuster unless he or she is

13  currently licensed and appointed.

14         (2)  No agent, customer representative, or solicitor

15  shall solicit or otherwise transact as agent, customer

16  representative, or solicitor, or represent or hold himself or

17  herself out to be an agent, customer representative, or

18  solicitor as to, any kind or kinds of insurance as to which he

19  or she is not then licensed and appointed.

20         (3)  No person shall act as an adjuster as to any class

21  of business for which he or she is not then licensed and

22  appointed.

23         (4)  No person shall be, act as, or represent or hold

24  himself or herself out to be a service representative unless

25  he or she then holds a currently effective service

26  representative license and appointment. This subsection does

27  not apply as to similar representatives or employees of

28  casualty insurers whose duties are restricted to health

29  insurance.

30         (5)  No person shall be, act as, or represent or hold

31  himself or herself out to be a managing general agent unless

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  1  he or she then holds a currently effective managing general

  2  agent license and appointment.

  3         (6)  No person shall be, act as, or represent or hold

  4  himself or herself out to be a claims investigator, or perform

  5  any of the functions of a claims investigator, unless he or

  6  she then holds a currently effective claims investigator

  7  license and appointment.

  8         (6)(7)  An individual employed by a life or health

  9  insurer as an officer or other salaried representative may

10  solicit and effect contracts of life insurance or annuities or

11  of health insurance, without being licensed as an agent, when

12  and only when he or she is accompanied by and solicits for and

13  on the behalf of a licensed and appointed agent.

14         (7)(8)(a)  No individual, firm, partnership,

15  corporation, association, or any other entity shall act in its

16  own name or under a trade name, directly or indirectly, as an

17  insurance agency, when required to be licensed by this

18  subsection, unless it complies with s. 626.172 with respect to

19  possessing an insurance agency license for each place of

20  business at which it engages in any activity which may be

21  performed only by a licensed insurance agent or solicitor.

22         (b)  An insurance agency shall, as a condition

23  precedent to continuing business, obtain an insurance agency

24  license if the department finds that, with respect to any

25  majority owner, partner, manager, director, officer, or other

26  person who manages or controls the agency, any person has,

27  subsequent to the effective date of this act:

28         1.  Been found guilty of, or has pleaded guilty or nolo

29  contendere to, a felony in this state or any other state

30  relating to the business of insurance or to an insurance

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  1  agency, without regard to whether a judgment of conviction has

  2  been entered by the court having jurisdiction of the cases.

  3         2.  Employed any individual in a managerial capacity or

  4  in a capacity dealing with the public who is under an order of

  5  revocation or suspension issued by the department.  An

  6  insurance agency may request, on forms prescribed by the

  7  department, verification of any person's license status. If a

  8  request is mailed within 5 working days after an employee is

  9  hired, and the employee's license is currently suspended or

10  revoked, the agency shall not be required to obtain a license,

11  if the unlicensed person's employment is immediately

12  terminated.

13         3.  Operated the agency or permitted the agency to be

14  operated in violation of s. 626.747.

15         4.  With such frequency as to have made the operation

16  of the agency hazardous to the insurance-buying public or

17  other persons:

18         a.  Solicited or handled controlled business.  This

19  subparagraph shall not prohibit the licensing of any lending

20  or financing institution or creditor, with respect to

21  insurance only, under credit life or disability insurance

22  policies of borrowers from the institutions, which policies

23  are subject to part IX of chapter 627.

24         b.  Misappropriated, converted, or unlawfully withheld

25  moneys belonging to insurers, insureds, beneficiaries, or

26  others and received in the conduct of business under the

27  license.

28         c.  Unlawfully rebated, attempted to unlawfully rebate,

29  or unlawfully divided or offered to divide commissions with

30  another.

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  1         d.  Misrepresented any insurance policy or annuity

  2  contract, or used deception with regard to any policy or

  3  contract, done either in person or by any form of

  4  dissemination of information or advertising.

  5         e.  Violated any provision of this code or any other

  6  law applicable to the business of insurance in the course of

  7  dealing under the license.

  8         f.  Violated any lawful order or rule of the

  9  department.

10         g.  Failed or refused, upon demand, to pay over to any

11  insurer he or she represents or has represented any money

12  coming into his or her hands belonging to the insurer.

13         h.  Violated the provision against twisting as defined

14  in s. 626.9541(1)(l).

15         i.  In the conduct of business, engaged in unfair

16  methods of competition or in unfair or deceptive acts or

17  practices, as prohibited under part X of this chapter.

18         j.  Willfully overinsured any property insurance risk.

19         k.  Engaged in fraudulent or dishonest practices in the

20  conduct of business arising out of activities related to

21  insurance or the insurance agency.

22         l.  Demonstrated lack of fitness or trustworthiness to

23  engage in the business of insurance arising out of activities

24  related to insurance or the insurance agency.

25         m.  Authorized or knowingly allowed individuals to

26  transact insurance who were not then licensed as required by

27  this code.

28         5.  Knowingly employed any person who within the

29  preceding 3 years has had his or her relationship with an

30  agency terminated in accordance with paragraph (d).

31

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  1         6.  Willfully circumvented the requirements or

  2  prohibitions of this code.

  3         (c)  An agency required to be licensed in accordance

  4  with paragraph (b) shall remain so licensed for a period of 3

  5  years from the date of licensure unless the license is

  6  suspended or revoked in accordance with law.  The department

  7  may revoke or suspend the agency authority to do business for

  8  activities occurring during the time the agency is licensed,

  9  regardless of whether the licensing period has terminated.

10         (d)  Notwithstanding the provisions of this subsection,

11  no insurance agency shall be required to apply for an agency

12  license if such agency can prove to the department that:

13         1.  The agency is severing its relationship with each

14  majority owner, partner, manager, director, officer, or other

15  person who managed or controlled such agency and who violated

16  any of the provisions of paragraph (b).

17         2.  No such majority owner, partner, manager, director,

18  officer, or other person who managed such agency is to be

19  affiliated with such agency in any capacity for a period of 3

20  years from the date of such severance.

21         Section 9.  Section 626.141, Florida Statutes, is

22  amended to read:

23         626.141  Violation not to affect validity of

24  insurance.--An insurance contract which is otherwise valid and

25  binding as between the parties thereto shall not be rendered

26  invalid by reason of having been solicited, handled, or

27  procured by or through an unlicensed agent, customer

28  representative, or solicitor or an agent, customer

29  representative, or solicitor who has not been appointed.

30         Section 10.  Subsections (1) and (6) of section

31  626.171, Florida Statutes, are amended to read:

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  1         626.171  Application for license.--

  2         (1)  The department shall not issue a license as agent,

  3  customer representative, solicitor, adjuster, insurance

  4  agency, service representative, managing general agent, or

  5  reinsurance intermediary, or claims investigator, to any

  6  person except upon written application therefor filed with it,

  7  qualification therefor, and payment in advance of all

  8  applicable fees.  Any such application shall be made under the

  9  oath of the applicant and be signed by the applicant.

10         (6)  The application for license filing fee prescribed

11  in s. 624.501 is shall not be subject to refund.

12         Section 11.  Section 626.181, Florida Statutes, is

13  amended to read:

14         626.181  Number of applications for licensure

15  required.--After a license as agent, customer representative,

16  solicitor, or adjuster has been issued to an individual, the

17  same individual shall not be required to take another

18  examination for a similar license, regardless, in the case of

19  an agent, of the number of insurers to be represented by him

20  or her as agent, unless:

21         (1)  Specifically ordered by the department to complete

22  a new application for license; or

23         (2)  During any period of 24 months since the filing of

24  the original license application, such individual was not

25  appointed as an agent, customer representative, solicitor, or

26  adjuster, unless the failure to be so appointed was due to

27  military service, in which event the period within which a new

28  application is not required may, in the discretion of the

29  department, be extended to 12 months following the date of

30  discharge from military service if the military service does

31  not exceed 3 years, but in no event to extend under this

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  1  clause for a period of more than 4 years from the date of

  2  filing of the original application for license.

  3         Section 12.  Section 626.201, Florida Statutes, is

  4  amended to read:

  5         626.201  Investigation.--The department may propound

  6  any reasonable interrogatories in addition to those contained

  7  in the application, to any applicant for license or

  8  appointment, or on any renewal, reinstatement, or continuation

  9  thereof, relating to his or her qualifications, residence,

10  prospective place of business, and any other matter which, in

11  the opinion of the department, is deemed necessary or

12  advisable for the protection of the public and to ascertain

13  the applicant's qualifications.  The department may, upon

14  completion of the application, make such further investigation

15  as it may deem advisable of the applicant's character,

16  experience, background, and fitness for the license or

17  appointment.  Such an inquiry or investigation shall be in

18  addition to any examination required to be taken by the

19  applicant as hereinafter in this chapter provided.

20         Section 13.  Subsection (2) of section 626.211, Florida

21  Statutes, is amended to read:

22         626.211  Approval, disapproval of application.--

23         (2)  Upon approval of an applicant for license as

24  agent, customer representative, solicitor, or adjuster who is

25  subject to written examination, the department shall notify

26  the applicant when and where he or she may take the required

27  examination.

28         Section 14.  Paragraphs (c) and (d) of subsection (2)

29  and subsection (3) of section 626.221, Florida Statutes, are

30  amended to read:

31         626.221  Examination requirement; exemptions.--

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  1         (2)  However, no such examination shall be necessary in

  2  any of the following cases:

  3         (c)  In the discretion of the department, an applicant

  4  for reinstatement of license or appointment as an agent,

  5  customer representative, or adjuster whose license has been

  6  suspended within 2 years prior to the date of application or

  7  written request for reinstatement.

  8         (d)  An applicant who, within 2 years prior to

  9  application for license and appointment as an agent, customer

10  representative, or adjuster, was a full-time salaried employee

11  of the department and had continuously been such an employee

12  with responsible insurance duties for not less than 2 years

13  and who had been a licensee within 2 years prior to employment

14  by the department with the same class of license as that being

15  applied for.

16         (3)  An individual who is already licensed as a

17  solicitor or customer representative shall not be licensed as

18  a general lines agent without application and examination for

19  such license.

20         Section 15.  Section 626.266, Florida Statutes, is

21  amended to read:

22         626.266  Printing of examinations or related materials

23  to preserve examination security.--A contract let for the

24  development, administration, or grading of examinations or

25  related materials by the Department of Insurance pursuant to

26  the various agent, customer representative, solicitor, or

27  adjuster licensing and examination provisions of this code may

28  include the printing or furnishing of these examinations or

29  related materials in order to preserve security.  Any such

30  contract shall be let as a contract for a contractual service

31  pursuant to s. 287.057.

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  1         Section 16.  Subsection (2) of section 626.281, Florida

  2  Statutes, is amended to read:

  3         626.281  Reexamination.--

  4         (2)  The department may require any individual whose

  5  license as an agent, customer representative, or adjuster has

  6  expired or has been suspended to pass an examination prior to

  7  reinstating or relicensing the individual as to any class of

  8  license.  The examination fee shall be paid as to each

  9  examination.

10         Section 17.  Subsection (1) of section 626.311, Florida

11  Statutes, is amended to read:

12         626.311  Scope of license.--

13         (1)  Except as to limited licenses, the applicant for

14  license as a general lines agent or customer representative

15  solicitor shall qualify for all property, marine, casualty,

16  and surety lines except bail bonds which require a separate

17  license under chapter 648.  The license of a general lines

18  agent may also cover health insurance if health insurance is

19  included in the agent's appointment by an insurer as to which

20  the licensee is also appointed as agent for property or

21  casualty or surety insurance.  The license of a customer

22  representative solicitor shall provide, in substance, that it

23  covers all of such classes of insurance that his or her

24  appointing general lines agent or agency is currently so

25  authorized to transact under the general lines agent's license

26  and appointments.  No such license shall be issued limited to

27  particular classes of insurance except for bail bonds which

28  require a separate license under chapter 648.

29         Section 18.  Subsection (1) of section 626.321, Florida

30  Statutes, is amended to read:

31         626.321  Limited licenses.--

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  1         (1)  The department shall issue to a qualified

  2  individual, or a qualified individual or entity under

  3  paragraphs (c), (d), and (e), a license as agent authorized to

  4  transact a limited class of business in any of the following

  5  categories:

  6         (a)  Motor vehicle physical damage and mechanical

  7  breakdown insurance.--License covering insurance against only

  8  the loss of or damage to any motor vehicle which is designed

  9  for use upon a highway, including trailers and semitrailers

10  designed for use with such vehicles. Such license also covers

11  insurance against the failure of an original or replacement

12  part to perform any function for which it was designed.  The

13  applicant for such a license shall pass a written examination

14  covering motor vehicle physical damage insurance and

15  mechanical breakdown insurance.  No individual while so

16  licensed shall hold a license as an agent or solicitor as to

17  any other or additional kind or class of insurance coverage

18  except as to a limited license for credit life and disability

19  insurances as provided in paragraph (e).

20         (b)  Industrial fire insurance or burglary

21  insurance.--License covering only industrial fire insurance or

22  burglary insurance.  The applicant for such a license shall

23  pass a written examination covering such insurance.  No

24  individual while so licensed shall hold a license as an agent

25  or solicitor as to any other or additional kind or class of

26  insurance coverage except as to life and health insurances.

27         (c)  Personal accident insurance.--License covering

28  only policies of personal accident insurance covering the

29  risks of travel, except as provided in subparagraph 2.  The

30  license may be issued only:

31

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  1         1.  To a full-time salaried employee of a common

  2  carrier or a full-time salaried employee or owner of a

  3  transportation ticket agency and may authorize the sale of

  4  such ticket policies only in connection with the sale of

  5  transportation tickets, or to the full-time salaried employee

  6  of such an agent.  No such policy shall be for a duration of

  7  more than 48 hours or for the duration of a specified one-way

  8  trip or round trip.

  9         2.  To a full-time salaried employee of a business

10  which offers motor vehicles for rent or lease, or to a

11  business office of a business which offers motor vehicles for

12  rent or lease if insurance sales activities authorized by the

13  license are limited to full-time salaried employees.  A

14  business office licensed or a person licensed pursuant to this

15  subparagraph may, as an agent of an insurer, transact

16  insurance that provides coverage for accidental personal

17  injury or death of the lessee and any passenger who is riding

18  or driving with the covered lessee in the rental motor vehicle

19  if the lease or rental agreement is for not more than 30 days,

20  or if the lessee is not provided coverage for more than 30

21  consecutive days per lease period; however, if the lease is

22  extended beyond 30 days, the coverage may be extended one time

23  only for a period not to exceed an additional 30 days.

24         (d)  Baggage and motor vehicle excess liability

25  insurance.--

26         1.  License covering only insurance of personal effects

27  except as provided in subparagraph 2.  The license may be

28  issued only:

29         a.  To a full-time salaried employee of a common

30  carrier or a full-time salaried employee or owner of a

31  transportation ticket agency, which person is engaged in the

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  1  sale or handling of transportation of baggage and personal

  2  effects of travelers, and may authorize the sale of such

  3  insurance only in connection with such transportation; or

  4         b.  To the full-time salaried employee of a licensed

  5  general lines agent, a full-time salaried employee of a

  6  business which offers motor vehicles for rent or lease, or to

  7  a business office of a business which offers motor vehicles

  8  for rent or lease if insurance sales activities authorized by

  9  the license are limited to full-time salaried employees.

10

11  The purchaser of baggage insurance shall be provided written

12  information disclosing that the insured's homeowner's policy

13  may provide coverage for loss of personal effects and that the

14  purchase of such insurance is not required in connection with

15  the purchase of tickets or in connection with the lease or

16  rental of a motor vehicle.

17         2.  A business office licensed pursuant to subparagraph

18  1., or a person licensed pursuant to subparagraph 1. who is a

19  full-time salaried employee of a business which offers motor

20  vehicles for rent or lease, may include lessees under a master

21  contract providing coverage to the lessor or may transact

22  excess motor vehicle liability insurance providing coverage in

23  excess of the standard liability limits provided by the lessor

24  in its lease to a person renting or leasing a motor vehicle

25  from the licensee's employer for liability arising in

26  connection with the negligent operation of the leased or

27  rented motor vehicle, provided that the lease or rental

28  agreement is for not more than 30 days; that the lessee is not

29  provided coverage for more than 30 consecutive days per lease

30  period, and, if the lease is extended beyond 30 days, the

31  coverage may be extended one time only for a period not to

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  1  exceed an additional 30 days; that the lessee is given written

  2  notice that his or her personal insurance policy providing

  3  coverage on an owned motor vehicle may provide additional

  4  excess coverage; and that the purchase of the insurance is not

  5  required in connection with the lease or rental of a motor

  6  vehicle.  The excess liability insurance may be provided to

  7  the lessee as an additional insured on a policy issued to the

  8  licensee's employer.

  9         3.  A business office licensed pursuant to subparagraph

10  1., or a person licensed pursuant to subparagraph 1. who is a

11  full-time salaried employee of a business which offers motor

12  vehicles for rent or lease, may, as an agent of an insurer,

13  transact insurance that provides coverage for the liability of

14  the lessee to the lessor for damage to the leased or rented

15  motor vehicle if:

16         a.  The lease or rental agreement is for not more than

17  30 days; or the lessee is not provided coverage for more than

18  30 consecutive days per lease period, but, if the lease is

19  extended beyond 30 days, the coverage may be extended one time

20  only for a period not to exceed an additional 30 days;

21         b.  The lessee is given written notice that his

22  personal insurance policy that provides coverage on an owned

23  motor vehicle may provide such coverage with or without a

24  deductible; and

25         c.  The purchase of the insurance is not required in

26  connection with the lease or rental of a motor vehicle.

27         (e)  Credit life or disability insurance.--License

28  covering only credit life or disability insurance.  The

29  license may be issued only to an individual employed by a life

30  or health insurer as an officer or other salaried or

31  commissioned representative, or to an individual employed by

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  1  or associated with a lending or financing institution or

  2  creditor, and may authorize the sale of such insurance only

  3  with respect to borrowers or debtors of such lending or

  4  financing institution or creditor.  However, only the

  5  individual or entity whose tax identification number is used

  6  in receiving or is credited with receiving the commission from

  7  the sale of such insurance shall be the licensed agent of the

  8  insurer.  No individual while so licensed shall hold a license

  9  as an agent or solicitor as to any other or additional kind or

10  class of life or health insurance coverage. An entity other

11  than a lending or financial institution defined in s. 626.988

12  holding a limited license under this paragraph shall also be

13  authorized to sell credit property insurance.

14         (f)  Credit insurance.--License covering only credit

15  insurance, as such insurance is defined in s. 624.605(1)(i),

16  and no individual so licensed shall, during the same period,

17  hold a license as an agent or solicitor as to any other or

18  additional kind of life or health insurance with the exception

19  of credit life or disability insurance as defined in paragraph

20  (e).

21         Section 19.  Subsections (3) and (4) of section

22  626.331, Florida Statutes, are amended to read:

23         626.331  Number of appointments permitted or

24  required.--

25         (3)  The department may issue a single appointment

26  covering both life and health insurances to an individual

27  licensed qualified as to both such kinds of insurance and

28  appointed as agent as to both such kinds by the same insurer.

29         (4)  If requested in writing by the applicant or payor

30  entitled thereto within 60 days after the denial or

31  disapproval of an appointment, the department shall refund to

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  1  the applicant or payor entitled thereto any state and county

  2  taxes received by it in connection with the application for

  3  the appointment.  The appointment fee is not subject to

  4  refund. No refund shall be made under any circumstances after

  5  issuance of an appointment.  No refund shall be made if the

  6  applicable appointment year has commenced before receipt by

  7  the department of the request for cancellation of the

  8  appointment and refund.

  9         Section 20.  Section 626.342, Florida Statutes, is

10  amended to read:

11         626.342  Furnishing supplies to unlicensed life,

12  health, or general lines agent prohibited; civil liability and

13  penalty.--

14         (1)  An No insurer, a managing general agent, or an

15  agent, directly or through any representative, may not shall

16  furnish to any agent any blank forms, applications,

17  stationery, or other supplies to be used in soliciting,

18  negotiating, or effecting contracts of insurance on its behalf

19  unless such blank forms, applications, stationery, or other

20  supplies relate to a class of business with respect to which

21  the agent is licensed and appointed, whether for that insurer

22  or another insurer.

23         (2)  Any insurer, general agent, or agent who furnishes

24  any of the supplies specified in subsection (1) to any agent

25  or prospective agent not appointed to represent the insurer

26  and who accepts from or writes any insurance business for such

27  agent or agency is shall be subject to civil liability to any

28  insured of such insurer to the same extent and in the same

29  manner as if such agent or prospective agent had been

30  appointed or authorized by the insurer or such agent to act in

31  its or his or her behalf.  The provisions of this subsection

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  1  do not apply to insurance risk apportionment plans under s.

  2  627.351.

  3         (3)  This section does not apply to the placing of

  4  surplus lines business under the provisions of ss.

  5  626.913-626.937.

  6         Section 21.  Subsections (5) and (6) are added to

  7  section 626.451, Florida Statutes, to read:

  8         626.451  Appointment of agent or other

  9  representative.--

10         (5)  Any law enforcement agency, state attorney's

11  office, or court clerk that is aware that an agent, adjuster,

12  service representative, solicitor, customer representative, or

13  managing general agent has pleaded guilty or nolo contendere

14  to or has been found guilty of a felony shall notify the

15  department of such fact.

16         (6)  Upon the filing of an information or indictment

17  against an agent, adjuster, service representative, solicitor,

18  customer representative, or managing general agent, the state

19  attorney or clerk of the circuit court shall immediately

20  furnish the department a certified copy of the information or

21  indictment.

22         Section 22.  Subsection (1) of section 626.511, Florida

23  Statutes, 1996 Supplement, is amended to read:

24         626.511  Reasons for termination; confidential

25  information.--

26         (1)  Any insurer terminating the appointment of an

27  agent; any general lines agent terminating the appointment of

28  a solicitor, customer representative, or a crop hail or

29  multiple-peril crop insurance agent; and any employer

30  terminating the appointment of an adjuster, service

31  representative, or managing general agent, or claims

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  1  investigator, whether such termination is by direct action of

  2  the appointing insurer, agent, or employer or by failure to

  3  renew or continue the appointment as provided, shall file with

  4  the department a statement of the reasons, if any, for and the

  5  facts relative to such termination.  In the case of

  6  termination of the appointment of an agent, such information

  7  may be filed by the insurer or by the general agent of the

  8  insurer.

  9         (2)  In the case of terminations by failure to renew or

10  continue the appointment, the information required under

11  subsection (1) shall be filed with the department as soon as

12  possible, and at all events within 30 days, after the date

13  notice of intention not to so renew or continue was filed with

14  the department as required in this chapter.  In all other

15  cases, the information required under subsection (1) shall be

16  filed with the department at the time, or at all events within

17  10 days after, notice of the termination was filed with the

18  department.

19         (3)  Any information, document, record, or statement

20  furnished to the department under subsection (1) is

21  confidential and exempt from the provisions of s. 119.07(1).

22         Section 23.  Subsections (1) and (3) of section

23  626.521, Florida Statutes, are amended to read:

24         626.521  Character, credit reports.--

25         (1)  As to each applicant who for the first time in

26  this state is applying and qualifying for a license as agent,

27  solicitor, adjuster, service representative, customer

28  representative, or managing general agent, or claims

29  investigator, the appointing insurer or its manager or general

30  agent in this state, in the case of agents, or the appointing

31  general lines agent, in the case of solicitors or customer

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  1  representatives, or the employer, in the case of service

  2  representatives and claims investigators and of adjusters who

  3  are not to be self-employed, shall coincidentally with such

  4  appointment or employment secure and thereafter keep on file a

  5  full detailed credit and character report made by an

  6  established and reputable independent reporting service,

  7  relative to the individual so appointed or employed.

  8         (3)  As to an applicant for an adjuster's or

  9  reinsurance intermediary's license who is to be self-employed,

10  the department may secure, at the cost of the applicant, a

11  full detailed credit and character report made by an

12  established and reputable independent reporting service

13  relative to the applicant.

14         Section 24.  Subsections (1) and (2) of section

15  626.541, Florida Statutes, are amended to read:

16         626.541  Firm, corporate, and business names; officers;

17  associates; notice of changes.--

18         (1)  Any licensed agent or adjuster doing business

19  under a firm or corporate name or under any business name

20  other than his or her own individual name shall annually on or

21  before January 1 file with the department, on forms furnished

22  by it, a written statement of the firm, corporate, or business

23  name being so used, the address of any office or offices or

24  places of business making use of such name, and the name and

25  social security number of each officer and director and the

26  president of the corporation and of each individual associated

27  in such firm or corporation as to the insurance transactions

28  thereof or in the use of such business name.

29         (2)  In the event of any change of such name, or of any

30  of the officers and such directors or president, or of any of

31  such addresses, or in the personnel so associated, written

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  1  notice of such change shall be filed with the department

  2  within 60 days by or on behalf of those licensees terminating

  3  any such firm, corporate, or business name or continuing to

  4  operate thereunder.

  5         Section 25.  Subsections (1) and (3) of section

  6  626.561, Florida Statutes, are amended to read:

  7         626.561  Reporting and accounting for funds.--

  8         (1)  All premiums, return premiums, or other funds

  9  belonging to insurers or others received by an agent, customer

10  representative, solicitor, or adjuster in transactions under

11  his or her license are shall be trust funds so received by the

12  licensee in a fiduciary capacity. An agent shall keep the

13  funds belonging to each insurer for which he or she is not

14  appointed, other than a surplus lines insurer, in a separate

15  account so as to allow the department to properly audit such

16  funds. The licensee in the applicable regular course of

17  business shall account for and pay the same to the insurer,

18  insured, or other person entitled thereto.

19         (3)  Any agent, customer representative, solicitor, or

20  adjuster who, not being lawfully entitled thereto, either

21  temporarily or permanently diverts or misappropriates

22  appropriates such funds or any portion thereof to his or her

23  own use or deprives the other person of a benefit therefrom

24  commits the offense specified below:

25         (a)  If the funds diverted or misappropriated

26  appropriated to his or her own use are $300 or less, a

27  misdemeanor of the first degree, punishable as provided in s.

28  775.082 or s. 775.083.

29         (b)  If the funds diverted or misappropriated

30  appropriated to his or her own use are more than $300, but

31

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  1  less than $20,000, a felony of the third degree, punishable as

  2  provided in s. 775.082, s. 775.083, or s. 775.084.

  3         (c)  If the funds diverted or misappropriated

  4  appropriated to his or her own use are $20,000 or more, but

  5  less than $100,000, a felony of the second degree, punishable

  6  as provided in s. 775.082, s. 775.083, or s. 775.084.

  7         (d)  If the funds diverted or misappropriated

  8  appropriated to his or her own use are $100,000 or more, a

  9  felony of the first degree, punishable as provided in s.

10  775.082, s. 775.083, or s. 775.084.

11         Section 26.  Subsections (1), (2), (4), and (7) of

12  section 626.592, Florida Statutes, are amended to read:

13         626.592  Primary agents.--

14         (1)  On or before January 1, 1990, and annually

15  thereafter, Each person operating an insurance agency and each

16  location of a multiple location agency shall designate a

17  primary agent for each insurance agency location and shall

18  file the name of the person so designated, and the address of

19  the insurance agency location where he or she is primary

20  agent, with the Department of Insurance, on a form approved by

21  the department.  The designation of the primary agent may be

22  changed at the option of the agency and any change shall be

23  effective upon notification to the department. Notice of

24  change must be sent to the department within 30 days after

25  such change.

26         (2)  For the purpose of this section, a "primary agent"

27  is the licensed agent who is responsible for the hiring and

28  supervision of all individuals within an insurance agency

29  location whether such individuals who deal with the public in

30  the solicitation or negotiation of insurance contracts or in

31  the collection or accounting of moneys from the general

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  1  public. An agent may be designated as primary agent for only

  2  one insurance agency location.

  3         (4)  The department may suspend or revoke the license

  4  of the primary agent if the an insurance agency employs any

  5  person who has had a license denied or any person whose

  6  license is currently suspended or revoked.  However, when a

  7  person has been denied a license for failure to pass a

  8  required examination, he or she may be employed to perform

  9  clerical or administrative functions for which licensure is

10  not required.

11         (7)  An No insurance agency location may not shall

12  conduct the business of insurance unless a primary agent is

13  designated at all times. Failure to designate a primary agent,

14  on a form prescribed by the department, within 30 days after

15  agency inception or change of primary agent designation,

16  constitutes as required under this section shall constitute

17  grounds for requiring that the agency obtain a license in

18  accordance with ss. 626.112 and 626.172.

19         Section 27.  Subsection (1) of section 626.601, Florida

20  Statutes, is amended to read:

21         626.601  Improper conduct; inquiry; fingerprinting.--

22         (1)  The department may, upon its own motion or, and

23  shall, upon a written complaint signed by any interested

24  person and filed with the department, inquire into any alleged

25  improper conduct of any licensed agent, solicitor, adjuster,

26  service representative, managing general agent, customer

27  representative, title insurance agent, or title insurance

28  agency or claims investigator under this code. The department

29  may thereafter initiate an investigation of any such licensee

30  if it has reasonable cause to believe that the licensee has

31  violated any provision of the insurance code. During the

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  1  course of its investigation, the department shall contact the

  2  licensee being investigated unless it determines that

  3  contacting such person could jeopardize the successful

  4  completion of the investigation or cause injury to the public.

  5         Section 28.  Section 626.611, Florida Statutes, is

  6  amended to read:

  7         626.611  Grounds for compulsory refusal, suspension, or

  8  revocation of agent's, title agency's, solicitor's,

  9  adjuster's, customer representative's, service

10  representative's, or managing general agent's, or claims

11  investigator's license or appointment.--The department shall

12  deny an application for, suspend, revoke, or refuse to renew

13  or continue the license or appointment of any applicant,

14  agent, title agency, solicitor, adjuster, customer

15  representative, service representative, or managing general

16  agent, or claims investigator, and it shall suspend or revoke

17  the eligibility to hold a license or appointment of any such

18  person, if it finds that as to the applicant, licensee, or

19  appointee any one or more of the following applicable grounds

20  exist:

21         (1)  Lack of one or more of the qualifications for the

22  license or appointment as specified in this code.

23         (2)  Material misstatement, misrepresentation, or fraud

24  in obtaining the license or appointment or in attempting to

25  obtain the license or appointment.

26         (3)  Failure to pass to the satisfaction of the

27  department any examination required under this code.

28         (4)  If the license or appointment is willfully used,

29  or to be used, to circumvent any of the requirements or

30  prohibitions of this code.

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  1         (5)  Willful misrepresentation of any insurance policy

  2  or annuity contract or willful deception with regard to any

  3  such policy or contract, done either in person or by any form

  4  of dissemination of information or advertising.

  5         (6)  If, as an adjuster, claims investigator, or agent

  6  licensed and appointed to adjust claims under this code, he or

  7  she has materially misrepresented to an insured or other

  8  interested party the terms and coverage of an insurance

  9  contract with intent and for the purpose of effecting

10  settlement of claim for loss or damage or benefit under such

11  contract on less favorable terms than those provided in and

12  contemplated by the contract.

13         (7)  Demonstrated lack of fitness or trustworthiness to

14  engage in the business of insurance.

15         (8)  Demonstrated lack of reasonably adequate knowledge

16  and technical competence to engage in the transactions

17  authorized by the license or appointment.

18         (9)  Fraudulent or dishonest practices in the conduct

19  of business under the license or appointment.

20         (10)  Misappropriation, conversion, or unlawful

21  withholding of moneys belonging to insurers or insureds or

22  beneficiaries or to others and received in conduct of business

23  under the license or appointment.

24         (11)  Unlawfully rebating, attempting to unlawfully

25  rebate, or unlawfully dividing or offering to divide his or

26  her commission with another.

27         (12)  Having obtained or attempted to obtain, or having

28  used or using, a license or appointment as agent, customer

29  representative, or solicitor for the purpose of soliciting or

30  handling "controlled business" as defined in s. 626.730 with

31

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  1  respect to general lines agents, s. 626.784 with respect to

  2  life agents, and s. 626.830 with respect to health agents.

  3         (13)  Willful failure to comply with, or willful

  4  violation of, any proper order or rule of the department or

  5  willful violation of any provision of this code.

  6         (14)  Having been found guilty of or having pleaded

  7  guilty or nolo contendere to a felony or a crime punishable by

  8  imprisonment of 1 year or more under the law of the United

  9  States of America or of any state thereof or under the law of

10  any other country which involves moral turpitude, without

11  regard to whether a judgment of conviction has been entered by

12  the court having jurisdiction of such cases.

13         (15)  Fraudulent or dishonest practice in submitting or

14  aiding or abetting any person in the submission of an

15  application for workers' compensation coverage under chapter

16  440 containing false or misleading information as to employee

17  payroll or classification for the purpose of avoiding or

18  reducing the amount of premium due for such coverage.

19         Section 29.  Section 626.621, Florida Statutes, is

20  amended to read:

21         626.621  Grounds for discretionary refusal, suspension,

22  or revocation of agent's, solicitor's, adjuster's, customer

23  representative's, service representative's, or managing

24  general agent's, or claims investigator's license or

25  appointment.--The department may, in its discretion, deny an

26  application for, suspend, revoke, or refuse to renew or

27  continue the license or appointment of any applicant, agent,

28  solicitor, adjuster, customer representative, service

29  representative, or managing general agent, or claims

30  investigator, and it may suspend or revoke the eligibility to

31  hold a license or appointment of any such person, if it finds

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  1  that as to the applicant, licensee, or appointee any one or

  2  more of the following applicable grounds exist under

  3  circumstances for which such denial, suspension, revocation,

  4  or refusal is not mandatory under s. 626.611:

  5         (1)  Any cause for which issuance of the license or

  6  appointment could have been refused had it then existed and

  7  been known to the department.

  8         (2)  Violation of any provision of this code or of any

  9  other law applicable to the business of insurance in the

10  course of dealing under the license or appointment.

11         (3)  Violation of any lawful order or rule of the

12  department.

13         (4)  Failure or refusal, upon demand, to pay over to

14  any insurer he or she represents or has represented any money

15  coming into his or her hands belonging to the insurer.

16         (5)  Violation of the provision against twisting, as

17  defined in s. 626.9541(1)(l).

18         (6)  In the conduct of business under the license or

19  appointment, engaging in unfair methods of competition or in

20  unfair or deceptive acts or practices, as prohibited under

21  part X of this chapter, or having otherwise shown himself or

22  herself to be a source of injury or loss to the public or

23  detrimental to the public interest.

24         (7)  Willful overinsurance of any property or health

25  insurance risk.

26         (8)  Having been found guilty of or having pleaded

27  guilty or nolo contendere to a felony or a crime punishable by

28  imprisonment of 1 year or more under the law of the United

29  States of America or of any state thereof or under the law of

30  any other country, without regard to whether a judgment of

31

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  1  conviction has been entered by the court having jurisdiction

  2  of such cases.

  3         (9)  If a life agent, violation of the code of ethics.

  4         (10)  Cheating on an examination required for licensure

  5  or violating test center or examination procedures published

  6  orally, in writing, or electronically at the test site by

  7  authorized representatives of the examination program

  8  administrator.  Communication of test center and examination

  9  procedures must be clearly established and documented.

10         (11)  Failure to inform the department in writing

11  within 30 days after pleading guilty or nolo contendere to, or

12  being convicted or found guilty of, any felony or a crime

13  punishable by imprisonment of 1 year or more under the law of

14  the United States or of any state thereof, or under the law of

15  any other country without regard to whether a judgment of

16  conviction has been entered by the court having jurisdiction

17  of the case.

18         (12)  Knowingly aiding, assisting, procuring, advising,

19  or abetting any person in the violation of or to violate a

20  provision of the insurance code or any order or rule of the

21  department.

22         Section 30.  Subsections (2), (3), and (4) of section

23  626.641, Florida Statutes, are amended to read:

24         626.641  Duration of suspension or revocation.--

25         (2)  No person or appointee under any license or

26  appointment revoked by the department, nor any person whose

27  eligibility to hold same has been revoked by the department,

28  shall have the right to apply for another license or

29  appointment under this code within 2 years from the effective

30  date of such revocation or, if judicial review of such

31  revocation is sought, within 2 years from the date of final

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  1  court order or decree affirming the revocation.  The

  2  department shall not, however, grant a new license or

  3  appointment or reinstate eligibility to hold such license or

  4  appointment if it finds that the circumstance or circumstances

  5  for which the eligibility was revoked or for which the

  6  previous license or appointment was revoked still exist or are

  7  likely to recur; if an individual's license as agent, customer

  8  representative, or solicitor or eligibility to hold same has

  9  been revoked upon the ground specified in s. 626.611(12), the

10  department shall refuse to grant or issue any new license or

11  appointment so applied for.

12         (3)  If licenses as agent, customer representative, or

13  solicitor, or the eligibility to hold same, as to the same

14  individual have been revoked at two separate times, the

15  department shall not thereafter grant or issue any license

16  under this code as to such individual.

17         (4)  During the period of suspension or revocation of

18  the license or appointment, the former licensee or appointee

19  shall not engage in or attempt or profess to engage in any

20  transaction or business for which a license or appointment is

21  required under this code or directly or indirectly own,

22  control, or be employed in any manner by any insurance agent

23  or agency or adjuster or adjusting firm.

24         Section 31.  Section 626.651, Florida Statutes, is

25  amended to read:

26         626.651  Effect of suspension, revocation upon

27  associated licenses and appointments and licensees and

28  appointees.--

29         (1)  Upon suspension, revocation, or refusal to renew

30  or continue any one license of an agent, customer

31  representative, or solicitor, or upon suspension or revocation

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  1  of eligibility to hold a license or appointment, the

  2  department shall at the same time likewise suspend or revoke

  3  all other licenses, appointments, or status of eligibility

  4  held by the licensee or appointee under this code.

  5         (2)  In case of the suspension or revocation of license

  6  and appointments of any general lines agent, or in case of

  7  suspension or revocation of eligibility, the license and

  8  appointments of any and all other agents who are members of

  9  such agency, whether incorporated or unincorporated, and any

10  and all solicitors or customer representatives employed by

11  such agency, who knowingly are parties to the act which formed

12  the ground for the suspension or revocation may likewise be

13  suspended or revoked.

14         Section 32.  Section 626.681, Florida Statutes, is

15  amended to read:

16         626.681  Administrative fine in lieu of or in addition

17  to suspension, revocation, or refusal of license or

18  appointment.--

19         (1)  Except as to insurance agencies, if the department

20  finds that one or more grounds exist for the suspension,

21  revocation, or refusal to issue, renew, or continue any

22  license or appointment issued under this chapter, the

23  department may, in its discretion, in lieu of or in addition

24  to such suspension or, revocation, or in lieu of such refusal,

25  and except on a second offense or when such suspension,

26  revocation, or refusal is mandatory, impose upon the licensee

27  or appointee an administrative penalty in an amount up to $500

28  or, if the department has found willful misconduct or willful

29  violation on the part of the licensee or appointee, up to

30  $3,500 $2,500.  The administrative penalty may, in the

31  discretion of the department, be augmented by an amount equal

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  1  to any commissions received by or accruing to the credit of

  2  the licensee or appointee in connection with any transaction

  3  as to which the grounds for suspension, revocation, or refusal

  4  related.

  5         (2)  With respect to insurance agencies, if the

  6  department finds that one or more grounds exist for the

  7  suspension, revocation, or refusal to issue, renew, or

  8  continue any license issued under this chapter, the department

  9  may, in its discretion, in lieu of or in addition to such

10  suspension or, revocation, or in lieu of such refusal, impose

11  upon the licensee an administrative penalty in an amount not

12  to exceed $10,000 per violation.  The administrative penalty

13  may, in the discretion of the department, be augmented by an

14  amount equal to any commissions received by or accruing to the

15  credit of the licensee in connection with any transaction as

16  to which the grounds for suspension, revocation, or refusal

17  related.

18         (3)  The department may allow the licensee or appointee

19  a reasonable period, not to exceed 30 days, within which to

20  pay to the department the amount of the penalty so imposed.

21  If the licensee or appointee fails to pay the penalty in its

22  entirety to the department within the period so allowed, the

23  license, or appointments, or status of the licensee or

24  appointee shall stand suspended or revoked or issuance,

25  renewal, or continuation shall be refused, as the case may be,

26  upon expiration of such period.

27         Section 33.  Section 626.691, Florida Statutes, is

28  amended to read:

29         626.691  Probation.--

30         (1)  If the department finds that one or more grounds

31  exist for the suspension, revocation, or refusal to renew or

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  1  continue any license or appointment issued under this part,

  2  the department may, in its discretion, except when an

  3  administrative fine is not permissible under s. 626.681 or

  4  when such suspension, revocation, or refusal is mandatory, in

  5  lieu of or in addition to such suspension or, revocation, or

  6  in lieu of such refusal, or in connection with any

  7  administrative monetary penalty imposed under s. 626.681,

  8  place the offending licensee or appointee on probation for a

  9  period, not to exceed 2 years, as specified by the department

10  in its order.

11         (2)  As a condition to such probation or in connection

12  therewith, the department may specify in its order reasonable

13  terms and conditions to be fulfilled by the probationer during

14  the probation period.  If during the probation period the

15  department has good cause to believe that the probationer has

16  violated a term or condition such terms and conditions or any

17  of them, it shall suspend, revoke, or refuse to issue, renew,

18  or continue the license or appointment of the probationer, as

19  upon the original ground or grounds referred to in subsection

20  (1).

21         Section 34.  Section 626.692, Florida Statutes, is

22  created to read:

23         626.692  Restitution.--If any ground exists for the

24  suspension, revocation, or refusal of a license or

25  appointment, the department may, in addition to any other

26  penalty authorized under this chapter, order the licensee to

27  pay restitution to any person who has been deprived of money

28  by the licensee's misappropriation, conversion, or unlawful

29  withholding of moneys belonging to insurers, insureds,

30  beneficiaries, or others.  In no instance shall the amount of

31  restitution required to be paid under this section exceed the

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  1  amount of money misappropriated, converted, or unlawfully

  2  withheld.  Nothing in this section limits or restricts a

  3  person's right to seek other remedies as provided for by law.

  4         Section 35.  Section 626.727, Florida Statutes, is

  5  amended to read:

  6         626.727  Scope of this part.--This part applies only as

  7  to:

  8         (1)  General lines agents, as defined in s. 626.041;

  9         (2)  Solicitors, as defined in s. 626.071; and

10         (3)  Customer representatives as defined in s. 626.072;

11  and

12         (4)(3)  Service representatives, as defined in s.

13  626.081, or managing general agents, as defined in s. 626.091.

14         Section 36.  Section 626.730, Florida Statutes, is

15  amended to read:

16         626.730  Purpose of license.--

17         (1)  The purpose of a license issued under this code to

18  a general lines agent, customer representative, or solicitor

19  is to authorize and enable the licensee actively and in good

20  faith to engage in the insurance business as such an agent,

21  customer representative, or solicitor with respect to the

22  general public and to facilitate the public supervision of

23  such activities in the public interest, and not for the

24  purpose of enabling the licensee to receive a rebate of

25  premium in the form of commission or other compensation as an

26  agent, customer representative, or solicitor or enabling the

27  licensee to receive commissions or other compensation based

28  upon insurance solicited or procured by or through him or her

29  upon his or her own interests or those of other persons with

30  whom he or she is closely associated in capacities other than

31

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  1  that of insurance agent, customer representative, or

  2  solicitor.

  3         (2)  The department shall not grant, renew, continue,

  4  or permit to exist any license or appointment as such agent,

  5  customer representative, or solicitor as to any applicant

  6  therefor or licensee or appointee thereunder if it finds that

  7  the license or appointment has been, is being, or will

  8  probably be used by the applicant, or licensee, or appointee

  9  for the purpose of securing rebates or commissions on

10  "controlled business," that is, on insurance written on his or

11  her own interests or those of his or her family or of any

12  firm, corporation, or association with which he or she is

13  associated, directly or indirectly, or in which he or she has

14  an interest other than as to the insurance thereof.

15         Section 37.  Subsection (3) of section 626.732, Florida

16  Statutes, is amended to read:

17         626.732  Requirement as to knowledge, experience, or

18  instruction.--

19         (3)  An individual who was or became qualified to sit

20  for an agent's, customer representative's, or adjuster's

21  examination at or during the time he or she was employed by

22  the department and who, while so employed, was employed in

23  responsible insurance duties as a full-time bona fide employee

24  shall be permitted to take an examination if application for

25  such examination is made within 90 days after the date of

26  termination of his or her employment with the department.

27         Section 38.  Section 626.733, Florida Statutes, is

28  amended to read:

29         626.733  Agency firms and corporations; special

30  requirements.--If a sole proprietorship, partnership,

31  corporation, or association holds an agency contract, all

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  1  members thereof who solicit, negotiate, or effect insurance

  2  contracts, and all officers and stockholders of the

  3  corporation who solicit, negotiate, or effect insurance

  4  contracts, are required to qualify and be licensed

  5  individually as agents, solicitors, or customer

  6  representatives; and all of such agents must be individually

  7  appointed as to each property and casualty insurer entering

  8  into an agency contract with such agency.  Each such

  9  appointing insurer as soon as known to it shall comply with

10  this section and shall determine and require that each agent

11  so associated in or so connected with such agency is likewise

12  appointed as to the same such insurer and for the same type

13  and class of license.  However, no insurer is required to

14  comply with the provisions of this section if such insurer

15  satisfactorily demonstrates to the department that the insurer

16  has issued an aggregate net written premium, in an agency, in

17  an amount of $25,000 or less.

18         Section 39.  Subsection (2) of section 626.7351,

19  Florida Statutes, is amended to read:

20         626.7351  Qualifications for customer representative's

21  license.--The department shall not grant or issue a license as

22  customer representative to any individual found by it to be

23  untrustworthy or incompetent, or who does not meet each of the

24  following qualifications:

25         (2)(a)  The applicant is a bona fide resident of this

26  state and will actually reside in the state at least 6 months

27  out of the year.  An individual who is a bona fide resident of

28  this state shall be deemed to meet the residence requirements

29  of this subsection, notwithstanding the existence at the time

30  of application for license of a license in his or her name on

31  the records of another state as a resident licensee of the

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  1  other state, if the applicant furnishes a letter of clearance

  2  satisfactory to the department that the resident licenses have

  3  been canceled or changed to a nonresident basis and that he or

  4  she is in good standing.

  5         (b)  The applicant is a resident of another state

  6  sharing a common boundary with this state and has been

  7  employed in this state for a period of not less than 6 months

  8  by a Florida resident general lines agent licensed and

  9  appointed under this chapter.  The applicant licensed under

10  this subsection must meet all other requirements as described

11  in this chapter and must, under the direct supervision of a

12  licensed and appointed Florida resident general lines agent,

13  conduct business solely within the confines of the office of

14  the agent or agency whom he or she represents in this state.

15         Section 40.  Subsection (1) of section 626.739, Florida

16  Statutes, is amended to read:

17         626.739  Temporary license; death, disability, absence

18  of agent.--

19         (1)  The department may, in its discretion, issue a

20  temporary license authorizing appointment as a general lines

21  insurance as agent to a licensed agent's employee, family

22  member, business associate, or personal representative for the

23  purpose of continuing or winding up the business affairs of

24  the agent or agency, all subject to the following conditions:

25         (a)  The agent so being replaced must have died become

26  deceased or become unable to perform his or her duties as

27  agent because of military service or illness or other physical

28  or mental disability.

29         (b)  There must be No other person connected with the

30  agent's business who is licensed as a general lines agent.

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  1         (c)  The proposed temporary licensee is must be

  2  qualified as for a regular general lines agent's license under

  3  this code except as to residence, examination, education, or

  4  experience.

  5         (d)  Application for the temporary license has been

  6  must be made by the applicant upon statements and affidavit

  7  filed with the department on forms as prescribed and furnished

  8  by it.

  9         (e)  The temporary license must shall be issued and be

10  valid for 4 months and may shall not be renewed either to the

11  then holder of the temporary license or to any other person

12  for or on behalf of the agent or agency.

13         (f)  Under a temporary license and appointment the

14  licensee does shall not represent as agent any insurer not

15  last represented by the agent so being replaced, and is not

16  nor be licensed or appointed as to any additional kind or

17  classification of insurance than those covered by the last

18  existing agency appointments of the replaced agent, except

19  that, if during the temporary license period an insurer

20  withdraws from the agency, the temporary licensee may be

21  appointed by another like insurer only for the period

22  remaining under the temporary license.

23         (g)  The holder of a temporary license may be granted a

24  regular agent's license upon taking and successfully

25  completing a classroom course or correspondence course in

26  insurance or having the insurance employment experience as

27  prescribed in s. 626.732 and passing an examination as

28  required by s. 626.221.

29         Section 41.  Subsections (1) and (2) of section

30  626.741, Florida Statutes, are amended, present subsection (5)

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  1  of that section is renumbered as subsection (7), and new

  2  subsections (5) and (6) are added to that section, to read:

  3         626.741  Nonresident agents; licensing and

  4  restrictions.--

  5         (1)  The department may, upon written application and

  6  the payment of the fees as specified in s. 624.501, issue a

  7  license as:

  8         (a)  A general lines agent to an individual who is

  9  otherwise qualified therefor, but who is not a resident of

10  this state, if by the laws of the state of the individual's

11  residence, residents of this state may be licensed in like

12  manner as a nonresident agent of his state.

13         (b)  A customer representative to an individual who is

14  otherwise qualified therefor, who is not a resident of this

15  state, but who is a resident of a state that shares a common

16  boundary with this state.

17         (2)  The department shall not, however, issue any

18  license and appointment to any nonresident who has an office

19  or place of business in this state, or who has any direct or

20  indirect pecuniary interest in any insurance agent, insurance

21  agency, or in any solicitor licensed as a resident of this

22  state; nor to any individual who does not, at the time of

23  issuance and throughout the existence of the Florida license,

24  hold a license as agent or broker issued by the state of his

25  or her residence; nor to any individual who is employed by any

26  insurer as a service representative or who is a managing

27  general agent in any state, whether or not also licensed in

28  another state as an agent or broker.  The foregoing

29  requirement to hold a similar license in the applicant's state

30  of residence does not apply to customer representatives unless

31  the home state licenses residents of that state in a like

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  1  manner.  The prohibition against having an office or place of

  2  business in this state does not apply to customer

  3  representatives who are required to conduct business solely

  4  within the confines of the office of a licensed and appointed

  5  Florida resident general lines agent in this state. The

  6  department shall have discretion to refuse to issue any

  7  license or appointment to a nonresident when it has reason to

  8  believe that the applicant by ruse or subterfuge is attempting

  9  to avoid the intent and prohibitions contained in this

10  subsection or to believe that any of the grounds exist as for

11  suspension or revocation of license as set forth in ss.

12  626.611 and 626.621.

13         (5)  Any individual who holds a Florida nonresident

14  agent's license, upon becoming a resident of this state may,

15  for a period not to exceed 90 days, continue to transact

16  insurance in this state under the nonresident license and

17  appointment.  Such individual must make application for

18  resident licensure and must become licensed as a resident

19  agent within 90 days of becoming a resident of this state.

20         (6)  Upon becoming a resident of this state, an

21  individual who holds a Florida nonresident agent's license is

22  no longer eligible for licensure as a nonresident agent if

23  such individual fails to make application for a resident

24  license and become licensed as a resident agent within 90

25  days.  His license and any appointments shall be canceled

26  immediately.  He may apply for a resident license pursuant to

27  s. 626.731.

28         (7)(5)  Except as provided in this section and ss.

29  626.742 and 626.743, nonresident agents shall be subject to

30  the same requirements as apply to agents resident in this

31  state.

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  1         Section 42.  Present subsection (7) of section 626.792,

  2  Florida Statutes, is renumbered as subsection (8) and amended,

  3  and a new subsection (7) is added to that section, to read:

  4         626.792  Nonresident agents.--

  5         (7)  Any individual who holds a Florida nonresident

  6  agent's license, upon becoming a resident of this state may,

  7  for a period not to exceed 90 days, continue to transact

  8  insurance in this state under the nonresident license and

  9  appointment.  Such individual must make application for

10  resident licensure and must become licensed as a resident

11  agent within 90 days after becoming a resident of this state.

12         (8)(7)  Upon becoming a resident of this state, an

13  individual who holds a Florida nonresident agent's license is

14  no longer eligible for licensure as a nonresident agent if

15  such individual fails to make application for a resident

16  license and become licensed as a resident agent within 90

17  days. and His license and any appointments shall be canceled

18  immediately.  He may apply for a resident license pursuant to

19  s. 626.785.

20         Section 43.  Present subsection (7) of section 626.835,

21  Florida Statutes, is renumbered as subsection (8) and amended,

22  and a new subsection (7) is added to that section, to read:

23         626.835  Nonresident agents.--

24         (7)  Any individual who holds a Florida nonresident

25  agent's license, upon becoming a resident of this state may,

26  for a period not to exceed 90 days, continue to transact

27  insurance in this state under the nonresident license and

28  appointment.  Such individual must make application for

29  resident licensure and must become licensed as a resident

30  agent within 90 days of becoming a resident of this state.

31

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  1         (8)(7)  Upon becoming a resident of this state, an

  2  individual who holds a Florida nonresident agent's license is

  3  no longer eligible for licensure as a nonresident agent if

  4  such individual fails to make application for a resident

  5  license and become licensed as a resident agent within 90

  6  days. and His or her license and any appointments shall be

  7  canceled immediately.  The individual may apply for a resident

  8  license pursuant to s. 626.831.

  9         Section 44.  Subsection (1) of section 626.837, Florida

10  Statutes, is amended to read:

11         626.837  Excess or rejected business.--

12         (1)  A licensed health agent may place excess or

13  rejected risks within the class of business for which he or

14  she is licensed and appointed, and which the insurer

15  appointing the agent is authorized to transact, with any other

16  authorized insurer without being required to secure an

17  appointment as to such other insurer, but subject to the

18  agent's agreement with the insurer appointing licensing him or

19  her.

20         Section 45.  Paragraph (a) of subsection (2) of section

21  626.8411, Florida Statutes, is amended to read:

22         626.8411  Application of Florida Insurance Code

23  provisions to title insurance agents or agencies.--

24         (2)  The following provisions of part I do not apply to

25  title insurance agents or title insurance agencies:

26         (a)  Section 626.112(7)(8), relating to licensing of

27  insurance agencies.

28         Section 46.  Paragraph (a) of subsection (3) of section

29  626.8417, Florida Statutes, is amended to read:

30

31

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  1         626.8417  Title insurance agent's license; application

  2  and qualification; errors and omissions insurance; bond and

  3  deposit requirements; exemptions.--

  4         (3)  The department shall not grant or issue a license

  5  as title agent to any individual found by it to be

  6  untrustworthy or incompetent, who does not meet the

  7  qualifications for examination specified in s. 626.8414, or

  8  who does not meet the following qualifications:

  9         (a)  Within the 4 years immediately preceding the date

10  of the application for license, the applicant must have

11  completed a 40-hour classroom course in title insurance, as

12  approved by the department, or must have had at least 12

13  months of experience in responsible title insurance duties,

14  while working in the title insurance business as a

15  substantially full-time, bona fide employee of a title agency,

16  title agent, or title insurer, or attorney who conducts real

17  estate closing transactions and issues title insurance

18  policies but who is exempt from licensure pursuant to

19  paragraph (4)(a).  If an applicant's qualifications are based

20  upon the periods of employment at responsible title insurance

21  duties, the applicant must submit, with the application for

22  license on a form prescribed by the department, the affidavit

23  of the applicant and of the employer setting forth the period

24  of such employment, that the employment was substantially full

25  time, and giving a brief abstract of the nature of the duties

26  performed by the applicant.

27         Section 47.  Subsection (2) of section 626.8418,

28  Florida Statutes, is amended to read:

29         626.8418  Application for title insurance agency

30  license.--Prior to doing business in this state as a title

31

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  1  insurance agency, a title insurance agency must meet all of

  2  the following requirements:

  3         (2)  The applicant must have deposited with the

  4  department securities of the type eligible for deposit under

  5  s. 625.52 and having at all times a market value of not less

  6  than $35,000.  In place of such deposit, the title insurance

  7  agency may post a surety bond of like amount payable to the

  8  department for the benefit of any appointing insurer damaged

  9  by a violation by the title insurance agency of its contract

10  with the appointing insurer.  If a properly documented claim

11  on the bond is timely filed with the department by a damaged

12  title insurer or insured, the department may shall remit an

13  appropriate amount of the deposit or the proceeds that are

14  received from the surety in payment of the claim damaged

15  insurer making claim on the bond.  The required deposit or

16  bond must be made by the title insurance agency, and a title

17  insurer may not provide the deposit or bond directly or

18  indirectly on behalf of the title insurance agency.  The

19  deposit or bond must secure the performance by the title

20  insurance agency of its duties and responsibilities under the

21  issuing agency contracts with each title insurer underwriter

22  for which it is appointed.  The agency may exchange or

23  substitute other securities of like quality and value for

24  securities on deposit, may receive the interest and other

25  income accruing on such securities, and may inspect the

26  deposit at all reasonable times.  Such deposit or bond must

27  remain unimpaired as long as the title insurance agency

28  continues in business in this state and until 1 year after

29  termination of all title insurance agency appointments

30  licenses held by the title insurance agency. The title

31  insurance agency is entitled to the return of the deposit or

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  1  bond together with accrued interest after such year has

  2  passed, if no claim has been made against the deposit or bond.

  3  If a surety bond is unavailable generally, the department may

  4  adopt rules for alternative methods to comply with this

  5  subsection. With respect to such alternative methods for

  6  compliance, the department must be guided by the past business

  7  performance and good reputation and character of the proposed

  8  title insurance agency. A surety bond is deemed to be

  9  unavailable generally if the prevailing annual premium exceeds

10  25 percent of the principal amount of the bond.

11         Section 48.  Section 626.8437, Florida Statutes, is

12  amended to read:

13         626.8437  Grounds for compulsory refusal, suspension,

14  or revocation of license or appointment.--The department shall

15  deny, suspend, revoke, or refuse to renew or continue the

16  license or appointment of any title insurance agent or agency,

17  and it shall suspend or revoke the eligibility to hold a

18  license or appointment of such person, if it finds that as to

19  the applicant, licensee, appointee, or any principal thereof,

20  any one or more of the following grounds exist:

21         (1)  Lack of one or more of the qualifications for the

22  license or appointment as specified in ss. s. 626.8417,

23  626.8418, and 626.8419.

24         (2)  Material misstatement, misrepresentation, or fraud

25  in obtaining, or attempting to obtain, the license or

26  appointment.

27         (3)  Willful misrepresentation of any title insurance

28  policy, guarantee of title, binder, or commitment, or willful

29  deception with regard to any such policy, guarantee, binder,

30  or commitment, done either in person or by any form of

31  dissemination of information or advertising.

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  1         (4)  Demonstrated lack of fitness or trustworthiness to

  2  represent a title insurer in the issuance of its commitments,

  3  binders, policies of title insurance, or guarantees of title.

  4         (5)  Demonstrated lack of reasonably adequate knowledge

  5  and technical competence to engage in the transactions

  6  authorized by the license or appointment.

  7         (6)  Fraudulent or dishonest practices in the conduct

  8  of business under the license or appointment.

  9         (7)  Misappropriation, conversion, or unlawful

10  withholding of moneys belonging to title insurers or insureds

11  or others and received in conduct of business under the

12  license or appointment.

13         (8)  Unlawful rebating, or attempting to unlawfully

14  rebate, or unlawfully dividing, or offering to unlawfully

15  divide, title insurance premiums, fees, or charges with

16  another, as prohibited by s. 626.9541(1)(h)3.

17         (9)  Willful failure to comply with, or willful

18  violation of, any proper order or rule of the department or

19  willful violation of any provision of this act.

20         (10)  The licensee if an individual, or the partners if

21  a partnership, or owner if a sole proprietorship, or the

22  officers if a corporation, having been found guilty of or

23  having pleaded guilty or nolo contendere to a felony or a

24  crime punishable by imprisonment of 1 year or more under the

25  law of the United States or of any state or under the law of

26  any other country which involves moral turpitude, without

27  regard to whether a judgment of conviction has been entered by

28  the court having jurisdiction of such cases.

29         Section 49.  Section 626.844, Florida Statutes, is

30  amended to read:

31

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  1         626.844  Grounds for discretionary refusal, suspension,

  2  or revocation of license or appointment.--The department may,

  3  in its discretion, deny, suspend, revoke, or refuse to renew

  4  or continue the license or appointment of any title insurance

  5  agent or agency, and it may suspend or revoke the eligibility

  6  to hold a license or appointment of any such title insurance

  7  agent or agency person if it finds that as to the applicant or

  8  licensee or appointee, or any principal thereof, any one or

  9  more of the following grounds exist under circumstances for

10  which such denial, suspension, revocation, or refusal is not

11  mandatory under s. 626.8437:

12         (1)  Any cause for which issuance of the license or

13  appointment could have been refused had it then existed and

14  been known to the department.

15         (2)  Violation of any provision of this act in the

16  course of dealing under the license or appointment.

17         (3)  Violation of any lawful order or rule of the

18  department.

19         (4)  Failure or refusal upon demand to pay over to any

20  title insurer that the appointee represents or has represented

21  any money coming into the hands of such appointee and

22  belonging to the title insurer.

23         (5)  Engaging in unfair methods of competition or in

24  unfair or deceptive acts or practices in the conduct of

25  business, as prohibited under part X of this chapter, or

26  having otherwise shown himself or herself to be a source of

27  injury or loss to the public or to be detrimental to the

28  public interest.

29         (6)  The licensee if an individual, or the partners if

30  a partnership, or owner if a sole proprietorship, or the

31  officers if a corporation, having been found guilty of or

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  1  having pleaded guilty or nolo contendere to a felony or a

  2  crime punishable by imprisonment of 1 year or more under the

  3  law of the United States or of any state or under the law of

  4  any other country, without regard to whether a judgment of

  5  conviction has been entered by the court having jurisdiction

  6  of such cases.

  7         Section 50.  Subsections (1), (3), and (4) of section

  8  626.8443, Florida Statutes, are amended to read:

  9         626.8443  Duration of suspension or revocation.--

10         (1)  The department shall, in its order suspending a

11  title insurance agent's or agency's license or appointment or

12  in its order suspending the eligibility of a person to hold or

13  apply for such license or appointment, specify the period

14  during which the suspension is to be in effect, but such

15  period shall not exceed 1 year.  The license, or appointment,

16  or eligibility shall remain suspended during the period so

17  specified, subject, however, to any rescission or modification

18  of the order by the department, or modification or reversal

19  thereof by the court, prior to expiration of the suspension

20  period.  A license, and appointment, or eligibility which has

21  been suspended may not be reinstated except upon request for

22  such reinstatement, but the department shall not grant such

23  reinstatement if it finds that the circumstance or

24  circumstances for which the license, appointment, and

25  eligibility was suspended still exist or are likely to recur.

26         (3)  If licenses of any person as a title insurance

27  agent or agency has have been revoked twice, the department

28  shall not thereafter grant or issue a title insurance agent's

29  or agency's license to such person.

30         (4)  During the period of suspension or after

31  revocation of the license and appointment, the former licensee

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  1  shall not engage in or attempt to profess to engage in any

  2  transaction or business for which a license or appointment is

  3  required under this code or directly or indirectly own,

  4  control, or be employed in any manner by any insurance agent

  5  or agency or adjuster or adjusting firm act.

  6         Section 51.  Subsections (1) and (2) of section

  7  626.852, Florida Statutes, are amended to read:

  8         626.852  Scope of this part.--

  9         (1)  This part applies only as to insurance adjusters

10  and claims investigators as defined hereinafter in this part

11  defined.

12         (2)  Unless otherwise required by context, the term

13  "adjusters" as used in this part applies to all licensees

14  defined herein as any type of adjuster or as a claims

15  investigator.

16         Section 52.  Section 626.858, Florida Statutes, is

17  amended to read:

18         626.858  "Nonresident company employee adjuster"

19  defined.--A "nonresident company employee adjuster" is a

20  person who:

21         (1)  Is not a resident of this state;

22         (2)  Is a currently licensed or authorized adjuster in

23  his or her home state for the type or kinds of insurance for

24  which he or she intends to adjust claims for in this state;

25  and

26         (3)  Is an employee of an insurer, or other insurers

27  under the common control or ownership of such insurer,

28  admitted to do business in this state.; and

29         (4)  Does not maintain an office in this state for the

30  purpose of adjusting losses in this state.

31

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  1         Section 53.  Section 626.8582, Florida Statutes, is

  2  created to read:

  3         626.8582  "Nonresident public adjuster" defined.--A

  4  "nonresident public adjuster" is a person who:

  5         (1)  Is not a resident of this state;

  6         (2)  Is a currently licensed public adjuster in his or

  7  her state of residence for the type or kinds of insurance for

  8  which the licensee intends to adjust claims in this state or,

  9  if a resident of a state that does not license public

10  adjusters, has passed the department's adjuster examination as

11  prescribed in s. 626.8732(1)(b); and

12         (3)  Is a self-employed public adjuster or associated

13  with or employed by a public adjusting firm or other public

14  adjuster.

15         Section 54.  Section 626.8584, Florida Statutes, is

16  created to read:

17         626.8584  "Nonresident independent adjuster"

18  defined.--A "nonresident independent adjuster" is a person

19  who:

20         (1)  Is not a resident of this state;

21         (2)  Is a currently licensed independent adjuster in

22  his or her state of residence for the type or kinds of

23  insurance for which the licensee intends to adjust claims in

24  this state or, if a resident of a state that does not license

25  independent adjusters, has passed the department's adjuster

26  examination as prescribed in s. 626.8734(1)(b); and

27         (3)  Is a self-employed independent adjuster or

28  associated with or employed by an independent adjusting firm

29  or other independent adjuster.

30         Section 55.  Subsection (2) of section 626.865, Florida

31  Statutes, is amended to read:

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  1         626.865  Public adjuster's qualifications, bond.--

  2         (2)  At the time of application for license as a public

  3  adjuster, the applicant shall file with the department a bond

  4  executed and issued by a surety insurer authorized to transact

  5  such business in this state, in the amount of $50,000 $5,000,

  6  conditioned for the faithful performance of his or her duties

  7  as a public adjuster under the license applied for.  The bond

  8  shall be in favor of the department and shall specifically

  9  authorize recovery by the department of the damages sustained

10  in case the licensee is guilty of fraud or unfair practices in

11  connection with his or her business as public adjuster. The

12  aggregate liability of the surety for all such damages shall

13  in no event exceed the amount of the bond.  Such bond shall

14  not be terminated unless at least 30 days' written notice is

15  given to the licensee and filed with the department.

16         Section 56.  Section 626.873, Florida Statutes, is

17  amended to read:

18         626.873  Nonresident company employee adjusters.--The

19  department shall, upon application therefor, issue a license

20  to an applicant for a nonresident adjuster's license upon

21  determining that the applicant has paid the applicable license

22  fees required under s. 624.501 and:

23         (1)  Is a currently licensed insurance adjuster in his

24  or her home state, if such state requires a license.

25         (2)  Is an employee of an insurer, or a wholly owned

26  subsidiary of an insurer, admitted to do business in this

27  state.

28         (3)  Does not maintain an office in this state for the

29  purpose of adjusting losses in this state.

30         (3)(4)  Has filed a certificate or letter of

31  authorization from the insurance department of his or her home

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  1  state, if such state requires an adjuster to be licensed,

  2  stating that he or she holds a current license or

  3  authorization to adjust insurance losses.  Such certificate or

  4  authorization must be signed by the insurance commissioner, or

  5  his or her deputy, of the adjuster's home state and must

  6  reflect whether or not the adjuster has ever had his or her

  7  license or authorization in the adjuster's home state

  8  suspended or revoked and, if such is the case, the reason for

  9  such action.

10         Section 57.  Section 626.8732, Florida Statutes, is

11  created to read:

12         626.8732  Nonresident public adjuster's qualifications,

13  bond.--

14         (1)  The department shall, upon application therefor,

15  issue a license to an applicant for a nonresident public

16  adjuster's license upon determining that the applicant has

17  paid the applicable license fees required under s. 624.501

18  and:

19         (a)  Is a natural person at least 18 years of age.

20         (b)  Has passed to the satisfaction of the department a

21  written Florida public adjuster's examination of the scope

22  prescribed in s. 626.241(6); however, the requirement for such

23  an examination does not apply to any of the following:

24         1.  An applicant who is licensed as a resident public

25  adjuster in his or her state of residence, when that state

26  requires the passing of a written examination in order to

27  obtain the license and a reciprocal agreement with the

28  appropriate official of that state has been entered into by

29  the department; or

30         2.  An applicant who is licensed as a nonresident

31  public adjuster in a state other than his or her state of

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  1  residence when the state of licensure requires the passing of

  2  a written examination in order to obtain the license and a

  3  reciprocal agreement with the appropriate official of the

  4  state of licensure has been entered into by the department.

  5         (c)  Is self-employed as a public adjuster or

  6  associated with or employed by a public adjusting firm or

  7  other public adjuster. Applicants licensed as nonresident

  8  public adjusters under this section must be appointed as such

  9  in accordance with the provisions of ss. 626.112 and 626.451.

10  Appointment fees in the amount specified in s. 624.501 must be

11  paid to the department in advance. The appointment of a

12  nonresident public adjuster shall continue in force until

13  suspended, revoked, or otherwise terminated, but subject to

14  biennial renewal or continuation by the licensee in accordance

15  with procedures prescribed in s. 626.381 for licensees in

16  general.

17         (d)  Is trustworthy and has such business reputation as

18  would reasonably assure that he or she will conduct his or her

19  business as a nonresident public adjuster fairly and in good

20  faith and without detriment to the public.

21         (e)  Has had sufficient experience, training, or

22  instruction concerning the adjusting of damages or losses

23  under insurance contracts, other than life and annuity

24  contracts; is sufficiently informed as to the terms and

25  effects of the provisions of those types of insurance

26  contracts; and possesses adequate knowledge of the laws of

27  this state relating to such contracts as to enable and qualify

28  him or her to engage in the business of insurance adjuster

29  fairly and without injury to the public or any member thereof

30  with whom he or she may have business as a public adjuster.

31

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  1         (2)  The applicant shall furnish the following with his

  2  or her application:

  3         (a)  A complete set of his or her fingerprints. The

  4  applicant's fingerprints must be certified by an authorized

  5  law enforcement officer. The department may not authorize an

  6  applicant to take the required examination or issue a

  7  nonresident public adjuster's license to the applicant until

  8  the department has received a report from the Florida

  9  Department of Law Enforcement and the Federal Bureau of

10  Investigation relative to the existence or nonexistence of a

11  criminal history report based on the applicant's fingerprints.

12         (b)  If currently licensed as a resident public

13  adjuster in the applicant's state of residence, a certificate

14  or letter of authorization from the licensing authority of the

15  applicant's state of residence, stating that the applicant

16  holds a current or comparable license to act as a public

17  adjuster. The certificate or letter of authorization must be

18  signed by the insurance commissioner or his or her deputy or

19  the appropriate licensing official and must disclose whether

20  the adjuster has ever had any license or eligibility to hold

21  any license declined, denied, suspended, revoked, or placed on

22  probation or whether an administrative fine or penalty has

23  been levied against the adjuster and, if so, the reason for

24  the action.

25         (c)  If the applicant's state of residence does not

26  require licensure as a public adjuster and the applicant has

27  been licensed as a resident insurance adjuster, agent, broker,

28  or other insurance representative in his or her state of

29  residence or any other state within the past 3 years, a

30  certificate or letter of authorization from the licensing

31  authority stating that the applicant holds or has held a

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  1  license to act as such an insurance adjuster, agent, or other

  2  insurance representative. The certificate or letter of

  3  authorization must be signed by the insurance commissioner or

  4  his or her deputy or the appropriate licensing official and

  5  must disclose whether or not the adjuster, agent, or other

  6  insurance representative has ever had any license or

  7  eligibility to hold any license declined, denied, suspended,

  8  revoked, or placed on probation or whether an administrative

  9  fine or penalty has been levied against the adjuster and, if

10  so, the reason for the action.

11         (3)  At the time of application for license as a

12  nonresident public adjuster, the applicant shall file with the

13  department a bond executed and issued by a surety insurer

14  authorized to transact surety business in this state, in the

15  amount of $50,000, conditioned for the faithful performance of

16  his or her duties as a nonresident public adjuster under the

17  license applied for. The bond must be in favor of the

18  department and must specifically authorize recovery by the

19  department of the damages sustained if the licensee commits

20  fraud or unfair practices in connection with his or her

21  business as nonresident public adjuster. The aggregate

22  liability of the surety for all the damages may not exceed the

23  amount of the bond. The bond may not be terminated unless at

24  least 30 days' written notice is given to the licensee and

25  filed with the department.

26         (4)  The usual and customary records pertaining to

27  transactions under the license of a nonresident public

28  adjuster must be retained for at least 3 years after

29  completion of the adjustment and must be made available in

30  this state to the department upon request. The failure of a

31  nonresident public adjuster to properly maintain records and

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  1  make them available to the department upon request constitutes

  2  grounds for the immediate suspension of the license issued

  3  under this section.

  4         (5)  After licensure as a nonresident public adjuster,

  5  as a condition of doing business in this state, the licensee

  6  must annually on or before January 1, on a form prescribed by

  7  the department, submit an affidavit certifying that the

  8  licensee is familiar with and understands the insurance code

  9  and rules adopted thereunder and the provisions of the

10  contracts negotiated or to be negotiated. Compliance with this

11  filing requirement is a condition precedent to the issuance,

12  continuation, reinstatement, or renewal of a nonresident

13  public adjuster's appointment.

14         Section 58.  Section 626.8734, Florida Statutes, is

15  created to read:

16         626.8734  Nonresident independent adjuster's

17  qualifications.--

18         (1)  The department shall, upon application therefor,

19  issue a license to an applicant for a nonresident independent

20  adjuster's license upon determining that the applicant has

21  paid the applicable license fees required under s. 624.501

22  and:

23         (a)  Is a natural person at least 18 years of age.

24         (b)  Has passed to the satisfaction of the department a

25  written Florida independent adjuster's examination of the

26  scope prescribed in s. 626.214(6); however, the requirement

27  for the examination does not apply to any of the following:

28         1.  An applicant who is licensed as a resident

29  independent adjuster in his or her state of residence when

30  that state requires the passing of a written examination in

31  order to obtain the license and a reciprocal agreement with

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  1  the appropriate official of that state has been entered into

  2  by the department; or

  3         2.  An applicant who is licensed as a nonresident

  4  independent adjuster in a state other than his or her state of

  5  residence when the state of licensure requires the passing of

  6  a written examination in order to obtain the license and a

  7  reciprocal agreement with the appropriate official of the

  8  state of licensure has been entered into by the department.

  9         (c)  Is self-employed or associated with or employed by

10  an independent adjusting firm or other independent adjuster.

11  Applicants licensed as nonresident independent adjusters under

12  this section must be appointed as such in accordance with the

13  provisions of ss. 626.112 and 626.451. Appointment fees in the

14  amount specified in s. 624.501 must be paid to the department

15  in advance. The appointment of a nonresident independent

16  adjuster shall continue in force until suspended, revoked, or

17  otherwise terminated, but subject to biennial renewal or

18  continuation by the licensee in accordance with procedures

19  prescribed in s. 626.381 for licensees in general.

20         (d)  Is trustworthy and has such business reputation as

21  would reasonably assure that he or she will conduct his

22  business as a nonresident independent adjuster fairly and in

23  good faith and without detriment to the public.

24         (e)  Has had sufficient experience, training, or

25  instruction concerning the adjusting of damages or losses

26  under insurance contracts, other than life and annuity

27  contracts; is sufficiently informed as to the terms and

28  effects of the provisions of those types of insurance

29  contracts; and possesses adequate knowledge of the laws of

30  this state relating to such contracts as to enable and qualify

31  him or her to engage in the business of insurance adjuster

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  1  fairly and without injury to the public or any member thereof

  2  with whom he or she may have business as an independent

  3  adjuster.

  4         (2)  The applicant shall furnish the following with his

  5  or her application:

  6         (a)  A complete set of his or her fingerprints. The

  7  applicant's fingerprints must be certified by an authorized

  8  law enforcement officer.

  9         (b)  If currently licensed as a resident independent

10  adjuster in the applicant's state of residence, a certificate

11  or letter of authorization from the licensing authority of the

12  applicant's state of residence, stating that the applicant

13  holds a current license to act as an independent adjuster.

14  Such certificate or letter of authorization must be signed by

15  the insurance commissioner or his or her deputy or the

16  appropriate licensing official and must disclose whether the

17  adjuster has ever had any license or eligibility to hold any

18  license declined, denied, suspended, revoked or placed on

19  probation or whether an administrative fine or penalty has

20  been levied against the adjuster and, if so, the reason for

21  the action.

22         (c)  If the applicant's state of residence does not

23  require licensure as an independent adjuster and the applicant

24  has been licensed as a resident insurance adjuster, agent,

25  broker, or other insurance representative in his state of

26  residence or any other state within the past 3 years, a

27  certificate or letter of authorization from the licensing

28  authority stating that the applicant holds or has held a

29  license to act as an insurance adjuster, agent, or other

30  insurance representative. The certificate or letter of

31  authorization must be signed by the insurance commissioner or

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  1  his or her deputy or the appropriate licensing official and

  2  must disclose whether the adjuster, agent, or other insurance

  3  representative has ever had any license or eligibility to hold

  4  any license declined, denied, suspended, revoked or placed on

  5  probation or whether an administrative fine or penalty has

  6  been levied against the adjuster and, if so, the reason for

  7  the action.

  8         (3)  The usual and customary records pertaining to

  9  transactions under the license of a nonresident independent

10  adjuster must be retained for at least 3 years after

11  completion of the adjustment and must be made available in

12  this state to the department upon request. The failure of a

13  nonresident independent adjuster to properly maintain records

14  and make them available to the the department upon request

15  constitutes grounds for the immediate suspension of the

16  license issued under this section.

17         (4)  After licensure as a nonresident independent

18  adjuster, as a condition of doing business in this state, the

19  licensee must annually on or before January 1, on a form

20  prescribed by the department, submit an affidavit certifying

21  that the licensee is familiar with and understands the

22  insurance laws and administrative rules of this state and the

23  provisions of the contracts negotiated or to be negotiated.

24  Compliance with this filing requirement is a condition

25  precedent to the issuance, continuation, reinstatement, or

26  renewal of a nonresident independent adjuster's appointment.

27         Section 59.  Section 626.8736, Florida Statutes, is

28  created to read:

29         626.8736  Nonresident independent or public adjusters;

30  service of process.--

31

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  1         (1)  Each licensed nonresident independent or public

  2  adjuster shall appoint the Insurance Commissioner and

  3  Treasurer and his or her successors in office as his or her

  4  attorney to receive service of legal process issued against

  5  the nonresident independent or public adjuster in this state,

  6  upon causes of action arising within this state out of

  7  transactions under his license and appointment. Service upon

  8  the Insurance Commissioner and Treasurer as attorney shall

  9  constitute effective legal service upon the nonresident

10  independent or public adjuster.

11         (2)  The appointment of the Insurance Commissioner and

12  Treasurer for service of process shall be irrevocable for as

13  long as there could be any cause of action against the

14  nonresident independent or public adjuster arising out of his

15  or her insurance transactions in this state.

16         (3)  Duplicate copies of legal process against the

17  nonresident independent or public adjuster shall be served

18  upon the Insurance Commissioner and Treasurer by a person

19  competent to serve a summons.

20         (4)  Upon receiving the service, the Insurance

21  Commissioner and Treasurer shall forthwith send one of the

22  copies of the process, by registered mail with return receipt

23  requested, to the defendant nonresident independent or public

24  adjuster at his or her last address of record with the

25  department.

26         (5)  The Insurance Commissioner and Treasurer shall

27  keep a record of the day and hour of service upon him or her

28  of all legal process received under this section.

29         Section 60.  Section 626.8737, Florida Statutes, is

30  created to read:

31

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  1         626.8737  Nonresident adjusters; retaliatory

  2  provision.--When under the laws of any other state any fine,

  3  tax, penalty, license fee, deposit of money, or security or

  4  other obligation, limitation, or prohibition is imposed upon

  5  resident insurance adjusters of this state in connection with

  6  the issuance of, and activities under, a nonresident

  7  adjuster's license under the laws of that state as to Florida

  8  resident insurance adjusters, then so long as these laws

  9  continue in force or are so administered, the same

10  requirements, obligations, limitations, and prohibitions, of

11  whatever kind, shall be imposed upon every insurance adjuster

12  of that other state when doing business in this state under a

13  nonresident adjuster's license issued under this part.

14         Section 61.  Section 626.8738, Florida Statutes, is

15  created to read:

16         626.8738  Penalty for violation.--In addition to any

17  other remedy imposed pursuant to this code, any person who

18  acts as a resident or nonresident public adjuster or holds

19  himself or herself out to be a public adjuster to adjust

20  claims in this state, without being licensed by the department

21  as a public adjuster and appointed as a public adjuster,

22  commits a felony of the third degree, punishable as provided

23  in s. 775.082, s. 775.083, or s. 775.084. Each act in

24  violation of this section constitutes a separate offense.

25         Section 62.  Subsection (5) of section 626.869, Florida

26  Statutes, is amended to read:

27         626.869  License, adjusters.--

28         (5)  Any person holding a license for 24 consecutive

29  months or longer and appointment and who engages in adjusting

30  workers' compensation insurance must, beginning in their birth

31  month and every 2 years thereafter, have completed 24 hours of

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  1  courses, 2 hours of which relate to ethics, in subjects shall

  2  certify to the department every 2 years, at least 90 days

  3  prior to the renewal date of his or her appointment, the fact

  4  that the licensee has completed a course of instruction

  5  designed to inform the licensee regarding as to the current

  6  workers' compensation laws of this state, so as to enable him

  7  or her to engage in such business as a workers' compensation

  8  insurance adjuster fairly and without injury to the public and

  9  to adjust all claims in accordance with the policy or contract

10  and the workers' compensation laws of this state.  In order to

11  qualify as an eligible course under this subsection, the

12  course must shall:

13         (a)  Have a Consist of 24 hours of classroom

14  instruction in the workers' compensation laws and practices of

15  this state, 2 hours of which shall relate to ethics, with the

16  course outline approved by the department.  It is not required

17  that the 24 hours of classroom instruction take place in one

18  course.

19         (b)  Be taught at a school training facility or other

20  location approved by the department.

21         (c)  Be taught by instructors with at least 5 years of

22  experience in the area of workers' compensation, general lines

23  of insurance, or other persons approved by the department.

24  However, a member of The Florida Bar is shall be exempt from

25  the 5 years' experience requirement.

26         (d)  Furnish the attendee a certificate of completion.

27  The sponsor of the course provider shall send a roster copy of

28  the certificate of completion to the department in a format

29  prescribed by the department.

30         Section 63.  Section 626.8695, Florida Statutes, is

31  amended to read:

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  1         626.8695  Primary adjuster.--

  2         (1)  On or before January 1, 1993, and annually

  3  thereafter, Each person operating an adjusting firm and each

  4  location of a multiple location adjusting firm must designate

  5  a primary adjuster for each such firm or location and must

  6  file with the department the name of such primary adjuster and

  7  the address of the firm or location where he or she is the

  8  primary adjuster, on a form approved by the department.  The

  9  designation of the primary adjuster may be changed at the

10  option of the adjusting firm.  Any such change is effective

11  upon notification to the department. Notice of change must be

12  sent to the department within 30 days after such change.

13         (2)(a)  For purposes of this section, a "primary

14  adjuster" is the licensed adjuster who is responsible for the

15  hiring and supervision of all individuals within an adjusting

16  firm location who deal with the public and who acts in the

17  capacity of a public adjuster as defined in s. 626.854, or an

18  independent adjuster as defined in s. 626.855.  An adjuster

19  may be designated as a primary adjuster for only one adjusting

20  firm location.

21         (b)  For purposes of this section, an "adjusting firm"

22  is a location where an independent or public adjuster is

23  engaged in the business of insurance.

24         (3)  The department may suspend or revoke the license

25  of the primary adjuster if the an adjusting firm employs any

26  person who has had a license denied or any person whose

27  license is currently suspended or revoked.  However, if a

28  person has been denied a license for failure to pass a

29  required examination, he or she may be employed to perform

30  clerical or administrative functions for which licensure is

31  not required.

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  1         (4)  The primary adjuster in an unincorporated

  2  adjusting firm, or the primary adjuster in an incorporated

  3  adjusting firm in which no officer, director, or stockholder

  4  is an adjuster, is responsible and accountable for the acts of

  5  salaried employees under his or her direct supervision and

  6  control while acting on behalf of the adjusting firm.  Nothing

  7  in this section renders any person criminally liable or

  8  subject to any disciplinary proceedings for any act unless the

  9  person personally committed or knew or should have known of

10  the act and of the facts constituting a violation of this

11  code.

12         (5)  The department may suspend or revoke the license

13  of any adjuster who is employed by a person whose license is

14  currently suspended or revoked.

15         (6)  An No adjusting firm location may not conduct the

16  business of insurance unless a primary adjuster is designated.

17  Failure of the person operating the adjusting firm to

18  designate a primary adjuster for the firm, or for each

19  location, as applicable, on a form prescribed by the

20  department within 30 days after inception of the firm or

21  change of primary adjuster designation, constitutes grounds

22  for requiring the adjusting firm to obtain an adjusting firm

23  license pursuant to s. 626.8696.

24         (7)  Any adjusting firm may request, on a form

25  prescribed by the department, verification from the department

26  of any person's current licensure status.  If a request is

27  mailed to the department within 5 working days after the date

28  an adjuster is hired, and the department subsequently notifies

29  the adjusting firm that an employee's license is currently

30  suspended, revoked, or has been denied, the license of the

31  primary adjuster shall not be revoked or suspended if the

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  1  unlicensed person is immediately dismissed from employment as

  2  an adjuster with the firm.

  3         Section 64.  Subsection (5) is added to section

  4  626.872, Florida Statutes, to read:

  5         626.872  Temporary license.--

  6         (5)  The department shall not issue a temporary license

  7  as an independent adjuster or as a company employee adjuster

  8  to any individual who has ever held such a license in this

  9  state.

10         Section 65.  Section 626.873, Florida Statutes, is

11  amended to read:

12         626.873  Nonresident adjusters.--

13         (1)  The department shall, upon application therefor,

14  issue a license to an applicant for a nonresident adjuster's

15  license upon determining that the applicant has paid the

16  applicable license fees required under s. 624.501 and:

17         (a)(1)  Is a currently licensed insurance adjuster in

18  his or her home state, if such state requires a license.

19         (b)(2)  Is an employee of an insurer admitted to do

20  business in this state.

21         (c)(3)  Does not maintain an office in this state for

22  the purpose of adjusting losses in this state.

23         (d)(4)  Has filed a certificate or letter of

24  authorization from the insurance department of his or her home

25  state, if such state requires an adjuster to be licensed,

26  stating that he or she holds a current license or

27  authorization to adjust insurance losses.  Such certificate or

28  authorization must be signed by the insurance commissioner, or

29  his or her deputy, of the adjuster's home state and must

30  reflect whether or not the adjuster has ever had his or her

31  license or authorization in the adjuster's home state

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  1  suspended or revoked and, if such is the case, the reason for

  2  such action.

  3         (2)  Any individual who holds a Florida nonresident

  4  adjuster's license, upon becoming a resident of this state

  5  may, for a period not to exceed 90 days, continue to adjust

  6  claims in this state under his or her nonresident license and

  7  appointment. Such individual must make application for

  8  resident licensure and must become licensed as a resident

  9  adjuster within 90 days of becoming a resident of this state.

10         (3)  Upon becoming a resident of this state, an

11  individual who holds a Florida nonresident adjuster's license

12  is no longer eligible for licensure as a nonresident adjuster

13  if such individual fails to make application for a resident

14  license and become licensed as a resident adjuster within 90

15  days.  Such individual may apply for a resident license

16  pursuant to s. 626.865, s. 626.866, or s. 626.867.

17         Section 66.  Subsection (2) of section 626.875, Florida

18  Statutes, is amended to read:

19         626.875  Office and records.--

20         (2)  The records of the adjuster relating to a

21  particular claim or loss shall be so retained in the

22  adjuster's place of business for a period of not less than 3

23  years 1 year after completion of the adjustment.  This

24  provision shall not be deemed to prohibit return or delivery

25  to the insurer or insured of documents furnished to or

26  prepared by the adjuster and required by the insurer or

27  insured to be returned or delivered thereto.

28         Section 67.  Section 626.877, Florida Statutes, is

29  amended to read:

30         626.877  Adjustments to comply with insurance contract

31  and law.--Every adjuster and claims investigator shall adjust

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  1  or investigate every claim, damage, or loss made or occurring

  2  under an insurance contract, in accordance with the terms and

  3  conditions of the contract and of the applicable laws of this

  4  state.

  5         Section 68.  Subsection (1) of section 626.922, Florida

  6  Statutes, is amended to read:

  7         626.922  Evidence of the insurance; changes; penalty.--

  8         (1)  Upon placing a surplus lines coverage, the surplus

  9  lines agent shall promptly issue and deliver to the insured

10  evidence of the insurance consisting either of the policy as

11  issued by the insurer or, if such policy is not then

12  available, a certificate, cover note, or other confirmation of

13  insurance.  Such document shall be executed or countersigned

14  by the surplus lines agent and shall show the description and

15  location of the subject of the insurance; coverage,

16  conditions, and term of the insurance; the premium and rate

17  charged and taxes collected from the insured; and the name and

18  address of the insured and insurer.  If the direct risk is

19  assumed by more than one insurer, the document shall state the

20  name and address and proportion of the entire direct risk

21  assumed by each insurer. A surplus lines agent may not

22  delegate the duty to issue any such document to producing

23  general lines agents without prior written authority from the

24  surplus lines insurer. A general lines agent may issue any

25  such document only if the agent has prior written authority

26  from the surplus lines agent. The surplus lines agent must

27  maintain copies of the authorization from the surplus lines

28  insurer and the delegation to the producing general lines

29  agent. The producing agent must maintain copies of the written

30  delegation from the surplus lines agent and copies of any

31  evidence of coverage or certificate of insurance which the

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  1  producing agent issues or delivers. Any evidence of coverage

  2  issued by a producing agent pursuant to this section must

  3  include the name and address of the authorizing surplus lines

  4  agent.

  5         Section 69.  Section 626.928, Florida Statutes, is

  6  amended to read:

  7         626.928  Surplus lines agent's bond.--Prior to issuance

  8  of license, the applicant shall file with the department, and

  9  thereafter for as long as any such license remains in effect,

10  shall keep in force and unimpaired, a bond in favor of the

11  department in the penal sum of not less than $50,000 $5,000,

12  aggregate liability, with authorized corporate surety or

13  sureties approved by the department.  The department may, in

14  its discretion, require a bond in a larger amount commensurate

15  with the volume of surplus lines business transacted or to be

16  transacted by a particular surplus lines agent.  The bond

17  shall be conditioned that the surplus lines agent will

18  faithfully conduct business under the license in accordance

19  with the provisions of the Surplus Lines Law and rules and

20  regulations of the department for the effectuation thereof and

21  that the licensee will promptly remit to the department the

22  taxes as provided for by such law.  No such bond shall be

23  terminated unless not less than 30 days' prior written notice

24  thereof is given the licensee and filed with the department.

25         Section 70.  Subsections (4) and (7) of section

26  626.927, Florida Statutes, are amended to read:

27         626.927  Licensing of surplus lines agent.--

28         (4)  License and appointment fees in the amount

29  specified in s. 624.501 shall be paid to the department in

30  advance. The license and appointment of a surplus lines agent

31  continue in force until suspended, revoked, or otherwise

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  1  terminated.  The appointment of a surplus lines agent

  2  continues in force until suspended, revoked, or terminated,

  3  but is subject to biennial renewal or continuation by the

  4  licensee in accordance with procedures prescribed in s.

  5  626.381 for agents in general.

  6         (7)  Any individual who has been licensed by the

  7  department as a surplus lines agent as provided in this

  8  section may be subsequently appointed licensed without

  9  additional written examination if his or her application for

10  appointment license is filed with the department within 24

11  months next following the date of cancellation or expiration

12  of the prior appointment license.  The department may, in its

13  discretion, require any individual to take and successfully

14  pass an examination as for original issuance of license as a

15  condition precedent to the reinstatement renewal or

16  continuation of the licensee's current license or

17  reinstatement or continuation of the licensee's appointment.

18         Section 71.  Subsections (1) and (2) of section

19  626.9271, Florida Statutes, are amended to read:

20         626.9271  Temporary license; death, disability, absence

21  of surplus lines agent.--

22         (1)  The department may, in its discretion, issue a

23  temporary license and appointment as a surplus lines agent to

24  a licensed surplus lines agent's employee, family member,

25  business associate, or personal representative for the purpose

26  of continuing or winding up the business affairs of the

27  surplus lines agent or agency, all subject to the following

28  conditions:

29         (a)  The surplus lines agent being replaced must have

30  died become deceased or become unable to perform his or her

31

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  1  duties as agent because of military service or illness or

  2  other physical or mental disability.

  3         (b)  There must be no other person connected with the

  4  surplus lines agent's business who is licensed as a surplus

  5  lines agent.

  6         (c)  The proposed temporary licensee must be qualified

  7  as for a regular surplus lines agent's license under this code

  8  except as to residence, examination, education, or experience.

  9         (d)  Application for the temporary license and

10  appointment must be made by the applicant upon statements and

11  affidavit filed with the department on forms as prescribed and

12  furnished by it.

13         (e)  The temporary license and appointment shall be

14  issued and be valid for a period of not over 4 months, and may

15  shall not be renewed either to the then holder of the

16  temporary license or to any other person for or on behalf of

17  the surplus lines agent or agency.

18         (2)  The applicant for a temporary license and

19  appointment shall pay to the department, prior to the issuance

20  thereof, the applicable license and appointment fees fee as

21  specified therefor in s. 624.501.

22         Section 72.  Subsections (1) and (2) of section

23  626.929, Florida Statutes, are amended to read:

24         626.929  Origination, acceptance, placement of surplus

25  lines business.--

26         (1)  A resident general lines agent while licensed and

27  appointed as a surplus lines agent under this part may

28  originate surplus lines business and may accept surplus lines

29  business from any other originating Florida-licensed general

30  lines agent appointed and licensed as to the kind or kinds of

31  insurance involved and may compensate such agent therefor.

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  1         (2)  A managing general agent while licensed and

  2  appointed as a surplus lines agent under this part may accept

  3  and place solely such surplus lines business as is originated

  4  by a Florida-licensed general lines agent appointed and

  5  licensed as to the kind or kinds of insurance involved and may

  6  compensate such agent therefor.

  7         Section 73.  Subsections (1), (2), and (3) of section

  8  626.935, Florida Statutes, are amended to read:

  9         626.935  Suspension, revocation, or refusal of surplus

10  lines agent's license.--

11         (1)  The department shall deny an application for,

12  suspend, revoke, or refuse to renew the appointment license of

13  a surplus lines agent and all other licenses and appointments

14  held by the licensee under this code, upon any one or more of

15  the following grounds:

16         (a)  Removal of the licensee's office from the state.

17         (b)  Removal of the accounts and records of his or her

18  surplus lines business from this state during the period when

19  such accounts and records are required to be maintained under

20  s. 626.930.

21         (c)  Closure of the licensee's office for a period of

22  more than 30 consecutive days.

23         (d)  Failure to make and file his or her quarterly

24  reports when due as required by s. 626.931.

25         (e)  Failure to pay the tax on surplus lines premiums,

26  as provided for in this Surplus Lines Law.

27         (f)  Failure to maintain the bond as required by s.

28  626.928.

29         (g)  Suspension, revocation, or refusal to renew or

30  continue the license or appointment as a general lines agent,

31  service representative, or managing general agent.

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  1         (h)  Lack of qualifications as for an original surplus

  2  lines agent's license.

  3         (i)  Violation of this Surplus Lines Law.

  4         (j)  For any other applicable cause for which the

  5  license of a general lines agent could be suspended, revoked,

  6  or refused under s. 626.611.

  7         (2)  The department may, in its discretion, deny an

  8  application for, suspend, revoke, or refuse to renew the

  9  license or appointment of any surplus lines agent upon any

10  applicable ground for which a general lines agent's license

11  could be suspended, revoked, or refused under s. 626.621.

12         (3)  In the suspension or revocation of, or the refusal

13  to issue or renew, the license or appointment of a surplus

14  lines agent, the department shall follow the same procedures,

15  as applicable, as provided for suspension, revocation, or

16  refusal of licenses of general lines agents, but subject to s.

17  626.936 as to failure to file a quarterly report or pay the

18  tax.

19         Section 74.  Subsections (3) and (4) of section

20  626.944, Florida Statutes, are amended to read:

21         626.944  Qualifications for health care risk

22  managers.--

23         (3)  The department shall issue a license and an

24  appointment, beginning on June 1, 1986, to practice health

25  care risk management to any applicant who qualifies under this

26  section and submits the license and appointment fees fee as

27  set forth in s. 624.501.  Licenses and appointments shall be

28  issued and canceled in the same manner as provided in part I

29  of this chapter.

30

31

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  1         (4)  The department shall renew a health care risk

  2  manager appointment license in accordance with procedures

  3  prescribed in s. 626.381 for agents in general.

  4         Section 75.  Subsection (3) of section 627.745, Florida

  5  Statutes, is amended to read:

  6         627.745  Mediation of claims.--

  7         (3)(a)  The department shall approve appoint mediators

  8  to conduct mediations pursuant to this section.  All mediators

  9  must file an application under oath for approval as a

10  mediator.

11         (b)  To qualify for approval appointment as a mediator,

12  a person must shall meet the following qualifications:

13         1.  Possess a masters or doctorate degree in

14  psychology, counseling, business, accounting, or economics, be

15  a member of The Florida Bar, be licensed as a certified public

16  accountant, or demonstrate that the applicant for approval

17  appointment has been actively engaged as a qualified mediator

18  for at least 4 years prior to July 1, 1990.

19         2.  Within 4 years immediately preceding the date the

20  application for approval is filed with the department, have

21  completed a minimum of a 40-hour training program approved by

22  the department and successfully passed a final an examination

23  included in the training program and approved by the

24  department.  The training program shall include and address

25  all of the following:

26         a.  Mediation theory.

27         b.  Mediation process and techniques.

28         c.  Standards of conduct for mediators.

29         d.  Conflict management and intervention skills.

30         e.  Insurance nomenclature.

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  1         Section 76.  Section 634.317, Florida Statutes, is

  2  amended to read:

  3         634.317  License and appointment required.--No person

  4  may solicit, negotiate, or effectuate home warranty contracts

  5  for remuneration in this state unless such person is licensed

  6  and appointed as a sales representative. A licensed and

  7  appointed sales representative shall be directly responsible

  8  and accountable for all acts of the licensee's employees.

  9         Section 77.  Section 634.420, Florida Statutes, is

10  amended to read:

11         634.420  License and appointment of sales

12  representatives.--Sales representatives for service warranty

13  associations or insurers shall be licensed, appointed,

14  renewed, continued, reinstated, or terminated in accordance

15  with procedures as prescribed in chapter 626 for insurance

16  representatives in general.  However, they shall be exempt

17  from all other provisions of chapter 626, including

18  fingerprinting, photo identification, education, and

19  examination. License, appointment, and other fees shall be

20  those prescribed in s. 624.501.  A licensed and appointed

21  sales representative shall be directly responsible and

22  accountable for all acts of the licensed sales

23  representative's her or his employees or other

24  representatives.  Each service warranty association or insurer

25  shall, on forms prescribed by the department, within 30 days

26  after termination of the appointment, notify the department of

27  such termination.  No employee or sales representative of a

28  service warranty association or insurer may directly or

29  indirectly solicit or negotiate insurance contracts, or hold

30  herself or himself out in any manner to be an insurance agent

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  1  or solicitor, unless so qualified, licensed, and appointed

  2  therefor under the insurance code.

  3         Section 78.  Section 642.036, Florida Statutes, is

  4  amended to read:

  5         642.036  Sales representatives to be licensed and

  6  appointed.--

  7         (1)  Sales representatives of legal expense insurers

  8  shall be licensed, appointed, renewed, continued, reinstated,

  9  or terminated as prescribed in chapter 626 for insurance

10  representatives in general, and shall pay the license and

11  appointment fees prescribed in s. 624.501.  No employee or

12  sales representative of an insurer may directly or indirectly

13  solicit or negotiate insurance contracts, or hold herself or

14  himself out in any manner to be an insurance agent or

15  solicitor, unless so qualified, licensed, and appointed

16  therefor under the insurance code.

17         (2)  Each casualty insurer shall, on or before March 1

18  of each odd-numbered year, file with the department the name

19  and business address of each licensed general lines agent or

20  solicitor who solicits, negotiates, sells, or executes legal

21  expense insurance contracts on behalf of the casualty insurer.

22         Section 79.  Sections 626.532 and 626.857, Florida

23  Statutes, are repealed.

24         Section 80.  This act shall take effect October 1 of

25  the year in which enacted.

26

27

28

29

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  1            *****************************************

  2                       LEGISLATIVE SUMMARY

  3
      Revises provisions of the Insurance Code relating to
  4    insurance agents, adjusters, customer representatives,
      and other insurance representatives.  Clarifies license
  5    fees.  Provides additional requirements and
      qualifications for certain licenses.  Provides for
  6    additional administrative fines. Modifies definitions of
      certain classes of insurers. Authorizes the Department of
  7    Insurance to place certain persons on probation in
      addition to the suspension, revocation, or refusal of
  8    their licenses. Increases surplus lines agent's bond to
      $50,000.
  9
      Increases the maximum fine that may be levied by the
10    Department of Insurance against an insurance agent and
      other individuals licensed by the department from $2,500
11    to $3,500.

12    Provides for licensure and regulation of nonresident
      public adjusters and nonresident independent adjusters.
13    Increases surety bond requirements for public adjusters
      from $5,000 to $50,000.
14
      Establishes a retaliatory tax provision regarding
15    requiremements and penalties imposed by another state
      upon Florida resident insurance adjusters relating to
16    nonresident adjuster's licenses under that state's laws
      and provides a criminal penalty for acting as a resident
17    or nonresident public adjuster without the required
      license.
18

19

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