House Bill 4451c1

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    Florida House of Representatives - 1998             CS/HB 4451

        By the Committee on Financial Services and Representative
    Rayson





  1                      A bill to be entitled

  2         An act relating to insurance; creating s.

  3         624.4072, F.S.; exempting minority-owned

  4         property and casualty insurers from prescribed

  5         taxes and assessments for specified period;

  6         specifying conditions; amending s. 624.412,

  7         F.S.; deleting provisions relating to minimum

  8         trust deposits by alien insurers;  amending ss.

  9         624.425, 624.428, 624.478, 626.112, F.S.;

10         requiring agents to be appointed; amending s.

11         624.501, F.S.; clarifying application of fees

12         for title insurance agents; amending s.

13         626.022, F.S.; providing for applicability of

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

15         revising the definition of the term "life

16         agent"; prescribing requirements for soliciting

17         or selling variable life insurance, variable

18         annuity contracts, and other indeterminate

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

20         conforming a cross-reference; amending ss.

21         626.141, 626.171, 626.181, 626.211, 626.221,

22         626.266, 626.281, 626.311, 626.511, 626.521,

23         626.561, 626.611, 626.621, 626.641, 626.651,

24         626.727, 626.730, 626.732, 626.733, 626.877,

25         F.S.; including customer representatives within

26         and deleting claims investigators from

27         application of certain provisions; excluding

28         solicitors; authorizing the department to

29         secure a credit and character report on certain

30         persons; providing limits; providing

31         requirements of the department; amending s.

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  1         626.451, F.S.; requiring law enforcement

  2         agencies, the state attorney's office, and

  3         court clerks to notify the department of agents

  4         found guilty of felonies; amending s. 626.201,

  5         F.S.; providing for interrogatories before

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

  7         authorizing certain entities that hold a

  8         limited license for credit life or disability

  9         insurance to sell credit property insurance;

10         authorizing persons who hold a limited license

11         for credit insurance to hold certain additional

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

13         licensure of certain agents for certain

14         appointments; providing that an appointment fee

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

16         prohibiting furnishing supplies to certain

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

18         names and addresses required of certain

19         personnel of corporations; amending s. 626.592,

20         F.S.; revising provisions relating to

21         designation of primary agents; amending s.

22         626.601, F.S.; authorizing the department to

23         initiate investigation of agents or other

24         licensees under certain conditions; amending s.

25         626.681, F.S.; providing for administrative

26         fines in addition to certain actions;

27         increasing such fines; amending s. 626.691,

28         F.S.; authorizing the department to place

29         certain persons on probation in addition to

30         suspending, revoking, or refusing to renew a

31         license or appointment; creating s. 626.692,

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  1         F.S.; providing for restitution under certain

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

  3         specifying additional qualifications for a

  4         customer representative's license; amending s.

  5         626.739, F.S.; specifying a temporary license

  6         as general lines insurance agent; amending s.

  7         626.741, F.S.; authorizing the department to

  8         issue a customer representative license to

  9         certain persons; providing a limitation;

10         providing procedures for agent licensure of

11         certain persons under certain circumstances;

12         providing for cancellation of a nonresident

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

14         F.S.; providing procedures for issuing a

15         resident agent's license to certain persons;

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

17         conditions of placing certain excess or

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

19         conforming a cross-reference; amending s.

20         626.8417, F.S.; revising the qualifications for

21         licensure as a title insurance agent; amending

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

23         deposit or bond of a title insurance agency;

24         specifying that the bond of a title insurance

25         agency must be posted with the department and

26         must inure to the benefit of damaged insurers

27         and insureds; amending ss. 626.8437, 626.844,

28         F.S.; clarifying application of grounds for

29         refusal, suspension, or revocation of license

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

31         providing additional limitations on activities

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  1         during suspension or after revocation of a

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

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

  4         revising the definition of the term

  5         "nonresident adjuster" to define "nonresident

  6         company employee adjuster"; creating s.

  7         626.8582, F.S.; defining the term "nonresident

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

  9         defining the term "nonresident independent

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

11         increasing the bonding requirements for public

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

13         for licensure and qualifications for resident

14         company employee adjusters; creating s.

15         626.8732, F.S.; providing for licensure and

16         qualifications for nonresident public

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

18         providing for licensure and qualifications for

19         nonresident independent adjusters; creating s.

20         626.8736, F.S.; providing for service of

21         process on nonresident independent adjusters

22         and on nonresident public adjusters; creating

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

24         tax provision regarding certain fines, taxes,

25         penalties, license fees, monetary deposits,

26         securities, or other obligations, limitations,

27         or prohibitions imposed by another state upon

28         Florida resident insurance adjusters in

29         connection with the issuance of, or activities

30         under, a nonresident adjuster's license under

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

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  1         providing a criminal penalty for acting as a

  2         resident or nonresident public adjuster without

  3         the required license; amending s. 626.869,

  4         F.S.; requiring certain continuing education

  5         courses; clarifying requirements of such

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

  7         for notice to the department; requiring

  8         designation of primary adjuster on forms

  9         prescribed by the department; amending s.

10         626.872, F.S.; prohibiting the department from

11         issuing a temporary adjuster's license to

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

13         providing procedures for licensing certain

14         persons as resident adjusters; providing for

15         cancellation of nonresident adjuster's license;

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

17         keeping adjusters' records; amending s.

18         626.922, F.S.; requiring surplus lines agents

19         to perform certain duties relating to evidence

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

21         increasing bonds for surplus lines agents;

22         amending ss. 626.927, 626.9271, 626.929,

23         626.935, 626.944, F.S.; requiring appointment

24         in addition to licensure of certain persons;

25         amending s. 627.681, F.S.; prescribing terms

26         for credit life insurance and credit disability

27         insurance; amending s. 627.745, F.S.;

28         clarifying a provision related to final

29         examination; amending s. 634.420, F.S.;

30         clarifying application of accountability

31         provisions; amending s. 634.317, F.S.;

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  1         providing for responsibility and accountability

  2         of sales representatives; amending s. 642.036,

  3         F.S.; deleting requirement that the addresses

  4         of certain agents be filed with the department;

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

  6         licensing of claims investigators; repealing s.

  7         626.532, F.S., relating to insurance vending

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

  9         relating to the definition of "claims

10         investigator"; providing an effective date.

11

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

13

14         Section 1.  Section 624.4072, Florida Statutes, is

15  created to read:

16         624.4072  Minority owned property and casualty

17  insurers; limited exemption for taxation and assessments.--

18         (1)  A minority business that is at least 51 percent

19  owned by minority persons, as defined in s. 288.703(3),

20  initially issued a certificate of authority in this state as

21  an authorized insurer after May 1, 1998, to write property and

22  casualty insurance shall be exempt, for a period not to exceed

23  5 years from the date of receiving its certificate of

24  authority, from the following taxes and assessments:

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

26  185.08;

27         (b)  Assessments by the Florida Residential Property

28  and Casualty Joint Underwriting Association or by the Florida

29  Windstorm Underwriting Association, as provided under s.

30  627.351, except for emergency assessments collected from

31  policyholders pursuant to s. 627.351(2)(b)2.d.(III) and

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  1  (6)(b)3.d. Any such insurer shall be a member insurer of the

  2  Florida Windstorm Underwriting Association and the Florida

  3  Residential Property and Casualty Joint Underwriting

  4  Association. The premiums of such insurer shall be included in

  5  determining, for the Florida Windstorm Underwriting

  6  Association, the aggregate statewide direct written premium

  7  for property insurance and in determining, for the Florida

  8  Residential Property and Casualty Joint Underwriting

  9  Association, the aggregate statewide direct written premium

10  for the subject lines of business for all member insurers.

11         (2)  The provisions of subsection (1) apply only to

12  residential property insurance policies, including commercial

13  residential property insurance policies, and only to an

14  insurer that:

15         (a)  Has a home or regional office in this state;

16         (b)  Has permanent employees in this state; and

17         (c)  Has at least 20 percent of its Florida policies

18  written and located in urban and inner-city areas that are

19  located in a metropolitan statistical area, as defined in 42

20  U.S.C. 12902(5).

21         (3)  The provision of the definition of "minority

22  person" in s. 288.703(3) that requires residency in Florida

23  shall not apply to the term "minority person" as used in this

24  section or s. 627.3511.

25         (4)  This section is repealed effective July 1, 2003,

26  and the tax and assessment exemptions authorized by this

27  section shall terminate on such date.

28         Section 2.  Section 624.412, Florida Statutes, is

29  amended to read:

30         624.412  Deposit of alien insurers.--

31

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  1         (1)  An alien insurer shall not have authority to

  2  transact insurance in this state unless it has and maintains

  3  within the United States as trust deposits with public

  4  officials having supervision over insurers, or with trustees,

  5  public depositories, or trust institutions approved by the

  6  department, assets available for discharge of its United

  7  States insurance obligations, which assets shall be in amount

  8  not less than the outstanding reserves and other liabilities

  9  of the insurer arising out of its insurance transactions in

10  the United States together with the amount of surplus as to

11  policyholders required by s. 624.408 of a domestic stock

12  insurer transacting like kinds of insurance.

13         (2)  The amount so held on deposit under subsection (1)

14  is, for the purposes of this code, deemed to be minimum

15  surplus of the insurer required to be maintained.

16         (2)(3)  Any such deposit made in this state shall be

17  held for the protection of the insurer's policyholders or

18  policyholders and creditors in the United States and shall be

19  subject to the applicable provisions of part III of chapter

20  625 and chapter 630.

21         Section 3.  Section 624.425, Florida Statutes, is

22  amended to read:

23         624.425  Resident agent and countersignature required,

24  property, casualty, surety insurance.--

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

26  property, casualty, or surety insurer shall assume direct

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

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

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

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

31  regularly commissioned and licensed currently as an agent and

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

  2  two or more authorized insurers issue a single policy of

  3  insurance against legal liability for loss or damage to person

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

  5  policy insuring against loss or damage to property by

  6  radioactive contamination, whether or not also insuring

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

  8  this state, such policy if otherwise lawful may be

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

10  and appointed resident agent of any insurer appearing thereon.

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

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

13  agents on business written or transacted by them for the

14  insurer.

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

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

17  certificate of renewal or continuation thereof, issued in

18  another state and covering also property and risks outside

19  this state, a certificate evidencing such insurance as to

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

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

22  the insurer's commissioned and appointed licensed local

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

24  subject to the same conditions as is provided in subsection

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

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

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

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

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

30  countersign in blank any countersignature endorsement

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

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  1  a written power of attorney to the issuing insurance company

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

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

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

  5  thereon in lieu of manually countersigning such documents; but

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

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

  8  unless the person so authorized is directly employed by the

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

10  of the agent.

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

12  insurers from using salaried licensed and appointed agents for

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

14  issuance and countersignature by such agents of insurance

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

16  without payment of commission therefor.

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

18  insurer from authorizing an agent who is not regularly

19  commissioned and appointed licensed currently as an agent of

20  the insurer from countersigning a policy or contract of

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

22  627.351.  This section does not apply to reissuance of

23  insurance policies or endorsements thereto which are part of a

24  mass reissuance of such policies or endorsements and do not

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

26         Section 4.  Subsections (1) and (2) of section 624.428,

27  Florida Statutes, are amended to read:

28         624.428  Licensed agent law, life and health

29  insurances.--

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

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

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  1  group life insurance contract, master credit life policy or

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

  3  insurance, unless the application for such policy or contract

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

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

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

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

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

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

10  whom policies or contracts issued or delivered in this state

11  shall be serviced.

12         Section 5.  Section 624.478, Florida Statutes, is

13  amended to read:

14         624.478  Use of agents.--A commercial self-insurance

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

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

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

18  the authority to appoint license agents in accordance with

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

20  licensed agents shall be subject to the requirements of such

21  provisions.

22         Section 6.  Subsections (16), (17), and (29) of section

23  624.501, Florida Statutes, are amended to read:

24         624.501  Filing, license, appointment, and

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

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

27  licenses, and miscellaneous charges as follows:

28         (16)  Issuance, reissuance, reinstatement, modification

29  resulting in a modified license being issued, or duplicate

30  copy of any insurance representative license, or an

31  appointment being reinstated.............................$5.00

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  1         (17)  Additional appointment license continuation fees

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

  3         (29)  Title insurance agents:

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

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

  6  license fee:

  7         Appointment fee..................................$42.00

  8         State tax.........................................12.00

  9         County tax.........................................6.00

10  Total...................................................$60.00

11         (b)  Agency original appointment license fee or

12  biennial renewal or continuation thereof, each insurer:

13         Appointment Licensing fee........................$42.00

14         State tax.........................................12.00

15         County tax.........................................6.00

16  Total...................................................$60.00

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

18         Application for filing, each filing, filing

19  fee.....................................................$10.00

20         (d)  Additional appointment continuation fee as

21  prescribed by s. 626.843.................................$5.00

22         (e)  Title insurer and title insurance agency

23  administrative surcharge:

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

25  title insurer shall pay to the department for each licensed

26  title insurance agency appointed by the title insurer and for

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

28  calendar year an administrative surcharge of $200.00.

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

30  licensed title insurance agency shall remit to the department

31  an administrative surcharge of $200.00.

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  1

  2  The administrative surcharge may be used solely to defray the

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

  4  insurance agencies agents and retail offices of title insurers

  5  and to gather title insurance data for statistical purposes in

  6  its regulation of title insurance.

  7         Section 7.  Section 626.022, Florida Statutes, is

  8  amended to read:

  9         626.022  Scope of part.--

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

11  solicitors, service representatives, adjusters, and insurance

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

13  stock insurers, mutual insurers, reciprocal insurers, and all

14  other types of insurers, except that:

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

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

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

18  626.541-626.591, and ss. 626.601-626.711 shall apply as to

19  reinsurance intermediaries as defined in s. 626.7492.

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

21  benefit societies shall be as provided in chapter 632.

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

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

24  903.

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

26  includes annuity contracts.

27         Section 8.  Subsections (1) and (2) of section 626.051,

28  Florida Statutes, are amended to read:

29         626.051  "Life agent" defined.--

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

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

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  1  life insurance and annuity contracts.  The term also includes

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

  3  annuity contracts, or variable contracts, and health insurance

  4  contracts by the same insurer.

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

  6  insurance, variable annuity contracts, or any other

  7  indeterminate value or variable contract as defined in s.

  8  627.8015, unless the person has successfully completed a

  9  licensure examination relating to variable annuity contracts

10  authorized and approved by the department.

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

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

13  unless licensed as an agent:

14         (a)  Solicit insurance or annuities or procure

15  applications; or

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

17  out as engaging in the business of analyzing or abstracting

18  insurance policies or of counseling or advising or giving

19  opinions to persons relative to insurance or insurance

20  contracts other than:

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

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

23  associations, trustees, employers or other business entities,

24  the subsidiaries and affiliates of each, relative to their

25  interests and those of their members or employees under

26  insurance benefit plans.

27         Section 9.  Subsection (2) of section 626.062, Florida

28  Statutes, is amended to read:

29         626.062  "Health agent" defined.--

30

31

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

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

  3  an agent:

  4         (a)  Solicit insurance or procure applications; or

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

  6  out as engaging in the business of analyzing or abstracting

  7  insurance policies or of counseling or advising or giving

  8  opinions to persons relative to insurance contracts other

  9  than:

10         1.  As a consulting actuary advising insurers; or

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

12  associations, trustees, employers or other business entities,

13  the subsidiaries and affiliates of each, relative to their

14  interests and those of their members or employees under

15  insurance benefit plans.

16         Section 10.  Section 626.112, Florida Statutes, is

17  amended to read:

18         626.112  License and appointment required; agents,

19  customer representatives, solicitors, adjusters, insurance

20  agencies, service representatives, managing general agents,

21  claims investigators.--

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

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

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

25  currently licensed and appointed.

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

27  shall solicit or otherwise transact as agent, customer

28  representative, or solicitor, or represent or hold himself or

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

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

31  or she is not then licensed and appointed.

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

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

  3  appointed.

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

  5  himself or herself out to be a service representative unless

  6  he or she then holds a currently effective service

  7  representative license and appointment. This subsection does

  8  not apply as to similar representatives or employees of

  9  casualty insurers whose duties are restricted to health

10  insurance.

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

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

13  he or she then holds a currently effective managing general

14  agent license and appointment.

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

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

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

18  she then holds a currently effective claims investigator

19  license and appointment.

20         (6)(7)  An individual employed by a life or health

21  insurer as an officer or other salaried representative may

22  solicit and effect contracts of life insurance or annuities or

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

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

25  on the behalf of a licensed and appointed agent.

26         (7)(8)(a)  No individual, firm, partnership,

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

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

29  insurance agency, when required to be licensed by this

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

31  possessing an insurance agency license for each place of

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

  2  performed only by a licensed insurance agent or solicitor.

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

  4  precedent to continuing business, obtain an insurance agency

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

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

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

  8  subsequent to the effective date of this act:

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

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

11  relating to the business of insurance or to an insurance

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

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

14         2.  Employed any individual in a managerial capacity or

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

16  revocation or suspension issued by the department.  An

17  insurance agency may request, on forms prescribed by the

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

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

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

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

22  if the unlicensed person's employment is immediately

23  terminated.

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

25  operated in violation of s. 626.747.

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

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

28  other persons:

29         a.  Solicited or handled controlled business.  This

30  subparagraph shall not prohibit the licensing of any lending

31  or financing institution or creditor, with respect to

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  1  insurance only, under credit life or disability insurance

  2  policies of borrowers from the institutions, which policies

  3  are subject to part IX of chapter 627.

  4         b.  Misappropriated, converted, or unlawfully withheld

  5  moneys belonging to insurers, insureds, beneficiaries, or

  6  others and received in the conduct of business under the

  7  license.

  8         c.  Unlawfully rebated, attempted to unlawfully rebate,

  9  or unlawfully divided or offered to divide commissions with

10  another.

11         d.  Misrepresented any insurance policy or annuity

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

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

14  dissemination of information or advertising.

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

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

17  dealing under the license.

18         f.  Violated any lawful order or rule of the

19  department.

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

21  insurer he or she represents or has represented any money

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

23         h.  Violated the provision against twisting as defined

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

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

26  methods of competition or in unfair or deceptive acts or

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

28         j.  Willfully overinsured any property insurance risk.

29         k.  Engaged in fraudulent or dishonest practices in the

30  conduct of business arising out of activities related to

31  insurance or the insurance agency.

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  1         l.  Demonstrated lack of fitness or trustworthiness to

  2  engage in the business of insurance arising out of activities

  3  related to insurance or the insurance agency.

  4         m.  Authorized or knowingly allowed individuals to

  5  transact insurance who were not then licensed as required by

  6  this code.

  7         5.  Knowingly employed any person who within the

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

  9  agency terminated in accordance with paragraph (d).

10         6.  Willfully circumvented the requirements or

11  prohibitions of this code.

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

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

14  years from the date of licensure unless the license is

15  suspended or revoked in accordance with law.  The department

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

17  activities occurring during the time the agency is licensed,

18  regardless of whether the licensing period has terminated.

19         (d)  Notwithstanding the provisions of this subsection,

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

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

22         1.  The agency is severing its relationship with each

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

24  person who managed or controlled such agency and who violated

25  any of the provisions of paragraph (b).

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

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

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

29  years from the date of such severance.

30         Section 11.  Section 626.141, Florida Statutes, is

31  amended to read:

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  1         626.141  Violation not to affect validity of

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

  3  binding as between the parties thereto shall not be rendered

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

  5  procured by or through an unlicensed agent, customer

  6  representative, or solicitor or an agent, customer

  7  representative, or solicitor who has not been appointed.

  8         Section 12.  Subsections (1) and (6) of section

  9  626.171, Florida Statutes, are amended to read:

10         626.171  Application for license.--

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

12  customer representative, solicitor, adjuster, insurance

13  agency, service representative, managing general agent, or

14  reinsurance intermediary, or claims investigator, to any

15  person except upon written application therefor filed with it,

16  qualification therefor, and payment in advance of all

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

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

19         (6)  The application for license filing fee prescribed

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

21         Section 13.  Section 626.181, Florida Statutes, is

22  amended to read:

23         626.181  Number of applications for licensure

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

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

26  same individual shall not be required to take another

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

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

29  or her as agent, unless:

30         (1)  Specifically ordered by the department to complete

31  a new application for license; or

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

  2  the original license application, such individual was not

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

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

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

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

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

  8  discharge from military service if the military service does

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

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

11  filing of the original application for license.

12         Section 14.  Section 626.201, Florida Statutes, is

13  amended to read:

14         626.201  Investigation.--The department may propound

15  any reasonable interrogatories in addition to those contained

16  in the application, to any applicant for license or

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

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

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

20  the opinion of the department, is deemed necessary or

21  advisable for the protection of the public and to ascertain

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

23  completion of the application, make such further investigation

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

25  experience, background, and fitness for the license or

26  appointment.  Such an inquiry or investigation shall be in

27  addition to any examination required to be taken by the

28  applicant as hereinafter in this chapter provided.

29         Section 15.  Subsection (2) of section 626.211, Florida

30  Statutes, is amended to read:

31         626.211  Approval, disapproval of application.--

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

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

  3  subject to written examination, the department shall notify

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

  5  examination.

  6         Section 16.  Paragraphs (c) and (d) of subsection (2)

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

  8  amended to read:

  9         626.221  Examination requirement; exemptions.--

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

11  any of the following cases:

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

13  for reinstatement of license or appointment as an agent,

14  customer representative, or adjuster whose license has been

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

16  written request for reinstatement.

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

18  application for license and appointment as an agent, customer

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

20  of the department and had continuously been such an employee

21  with responsible insurance duties for not less than 2 years

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

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

24  applied for.

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

26  solicitor or customer representative shall not be licensed as

27  a general lines agent without application and examination for

28  such license.

29         Section 17.  Section 626.266, Florida Statutes, is

30  amended to read:

31

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  1         626.266  Printing of examinations or related materials

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

  3  development, administration, or grading of examinations or

  4  related materials by the Department of Insurance pursuant to

  5  the various agent, customer representative, solicitor, or

  6  adjuster licensing and examination provisions of this code may

  7  include the printing or furnishing of these examinations or

  8  related materials in order to preserve security.  Any such

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

10  pursuant to s. 287.057.

11         Section 18.  Subsection (2) of section 626.281, Florida

12  Statutes, is amended to read:

13         626.281  Reexamination.--

14         (2)  The department may require any individual whose

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

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

17  reinstating or relicensing the individual as to any class of

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

19  examination.

20         Section 19.  Subsection (1) of section 626.311, Florida

21  Statutes, is amended to read:

22         626.311  Scope of license.--

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

24  license as a general lines agent or customer representative

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

26  and surety lines except bail bonds which require a separate

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

28  agent may also cover health insurance if health insurance is

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

30  the licensee is also appointed as agent for property or

31  casualty or surety insurance.  The license of a customer

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  1  representative solicitor shall provide, in substance, that it

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

  3  appointing general lines agent or agency is currently so

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

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

  6  particular classes of insurance except for bail bonds which

  7  require a separate license under chapter 648.

  8         Section 20.  Subsection (1) of section 626.321, Florida

  9  Statutes, is amended to read:

10         626.321  Limited licenses.--

11         (1)  The department shall issue to a qualified

12  individual, or a qualified individual or entity under

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

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

15  categories:

16         (a)  Motor vehicle physical damage and mechanical

17  breakdown insurance.--License covering insurance against only

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

19  for use upon a highway, including trailers and semitrailers

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

21  insurance against the failure of an original or replacement

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

23  applicant for such a license shall pass a written examination

24  covering motor vehicle physical damage insurance and

25  mechanical breakdown insurance.  No individual while so

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

27  any other or additional kind or class of insurance coverage

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

29  insurances as provided in paragraph (e).

30         (b)  Industrial fire insurance or burglary

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

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  1  burglary insurance.  The applicant for such a license shall

  2  pass a written examination covering such insurance.  No

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

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

  5  insurance coverage except as to life and health insurances.

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

  7  only policies of personal accident insurance covering the

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

  9  license may be issued only:

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

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

12  transportation ticket agency and may authorize the sale of

13  such ticket policies only in connection with the sale of

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

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

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

17  trip or round trip.

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

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

20  business office of a business which offers motor vehicles for

21  rent or lease if insurance sales activities authorized by the

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

23  business office licensed or a person licensed pursuant to this

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

25  insurance that provides coverage for accidental personal

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

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

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

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

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

31

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

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

  3         (d)  Baggage and motor vehicle excess liability

  4  insurance.--

  5         1.  License covering only insurance of personal effects

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

  7  issued only:

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

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

10  transportation ticket agency, which person is engaged in the

11  sale or handling of transportation of baggage and personal

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

13  insurance only in connection with such transportation; or

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

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

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

17  a business office of a business which offers motor vehicles

18  for rent or lease if insurance sales activities authorized by

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

20

21  The purchaser of baggage insurance shall be provided written

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

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

24  purchase of such insurance is not required in connection with

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

26  rental of a motor vehicle.

27         2.  A business office licensed pursuant to subparagraph

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

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

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

31  contract providing coverage to the lessor or may transact

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  1  excess motor vehicle liability insurance providing coverage in

  2  excess of the standard liability limits provided by the lessor

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

  4  from the licensee's employer for liability arising in

  5  connection with the negligent operation of the leased or

  6  rented motor vehicle, provided that the lease or rental

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

  8  provided coverage for more than 30 consecutive days per lease

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

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

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

12  notice that his or her personal insurance policy providing

13  coverage on an owned motor vehicle may provide additional

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

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

16  vehicle.  The excess liability insurance may be provided to

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

18  licensee's employer.

19         3.  A business office licensed pursuant to subparagraph

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

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

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

23  transact insurance that provides coverage for the liability of

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

25  motor vehicle if:

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

27  30 days; or the lessee is not provided coverage for more than

28  30 consecutive days per lease period, but, if the lease is

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

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

31

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  1         b.  The lessee is given written notice that his

  2  personal insurance policy that provides coverage on an owned

  3  motor vehicle may provide such coverage with or without a

  4  deductible; and

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

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

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

  8  covering only credit life or disability insurance.  The

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

10  or health insurer as an officer or other salaried or

11  commissioned representative, or to an individual employed by

12  or associated with a lending or financing institution or

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

14  with respect to borrowers or debtors of such lending or

15  financing institution or creditor.  However, only the

16  individual or entity whose tax identification number is used

17  in receiving or is credited with receiving the commission from

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

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

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

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

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

23  holding a limited license under this paragraph shall also be

24  authorized to sell credit property insurance.

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

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

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

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

29  additional kind of life or health insurance with the exception

30  of credit life or disability insurance as defined in paragraph

31  (e).

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

  2  626.331, Florida Statutes, are amended to read:

  3         626.331  Number of appointments permitted or

  4  required.--

  5         (3)  The department may issue a single appointment

  6  covering both life and health insurances to an individual

  7  licensed qualified as to both such kinds of insurance and

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

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

10  entitled thereto within 60 days after the denial or

11  disapproval of an appointment, the department shall refund to

12  the applicant or payor entitled thereto any state and county

13  taxes received by it in connection with the application for

14  the appointment.  The appointment fee is not subject to

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

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

17  applicable appointment year has commenced before receipt by

18  the department of the request for cancellation of the

19  appointment and refund.

20         Section 22.  Section 626.342, Florida Statutes, is

21  amended to read:

22         626.342  Furnishing supplies to unlicensed life,

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

24  penalty.--

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

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

27  furnish to any agent any blank forms, applications,

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

29  negotiating, or effecting contracts of insurance on its behalf

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

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

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

  2  or another insurer.

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

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

  5  or prospective agent not appointed to represent the insurer

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

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

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

  9  manner as if such agent or prospective agent had been

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

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

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

13  627.351.

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

15  surplus lines business under the provisions of ss.

16  626.913-626.937.

17         Section 23.  Subsections (5) and (6) are added to

18  section 626.451, Florida Statutes, to read:

19         626.451  Appointment of agent or other

20  representative.--

21         (5)  Any law enforcement agency or state attorney's

22  office that is aware that an agent, adjuster, service

23  representative, solicitor, customer representative, or

24  managing general agent has pleaded guilty or nolo contendere

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

26  department of such fact.

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

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

29  customer representative, or managing general agent, the state

30  attorney shall immediately furnish the department a certified

31  copy of the information or indictment.

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  1         Section 24.  Subsection (1) of section 626.511, Florida

  2  Statutes, 1996 Supplement, is amended to read:

  3         626.511  Reasons for termination; confidential

  4  information.--

  5         (1)  Any insurer terminating the appointment of an

  6  agent; any general lines agent terminating the appointment of

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

  8  multiple-peril crop insurance agent; and any employer

  9  terminating the appointment of an adjuster, service

10  representative, or managing general agent, or claims

11  investigator, whether such termination is by direct action of

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

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

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

15  facts relative to such termination.  In the case of

16  termination of the appointment of an agent, such information

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

18  insurer.

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

20  continue the appointment, the information required under

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

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

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

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

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

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

27  10 days after, notice of the termination was filed with the

28  department.

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

30  furnished to the department under subsection (1) is

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

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

  2  626.521, Florida Statutes, are amended to read:

  3         626.521  Character, credit reports.--

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

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

  6  solicitor, adjuster, service representative, customer

  7  representative, or managing general agent, or claims

  8  investigator, the appointing insurer or its manager or general

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

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

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

12  representatives and claims investigators and of adjusters who

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

14  appointment or employment secure and thereafter keep on file a

15  full detailed credit and character report made by an

16  established and reputable independent reporting service,

17  relative to the individual so appointed or employed.

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

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

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

21  full detailed credit and character report made by an

22  established and reputable independent reporting service

23  relative to the applicant.

24         Section 26.  Subsections (1) and (2) of section

25  626.541, Florida Statutes, are amended to read:

26         626.541  Firm, corporate, and business names; officers;

27  associates; notice of changes.--

28         (1)  Any licensed agent or adjuster doing business

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

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

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

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

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

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

  4  social security number of each officer and director and the

  5  president of the corporation and of each individual associated

  6  in such firm or corporation as to the insurance transactions

  7  thereof or in the use of such business name.

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

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

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

11  notice of such change shall be filed with the department

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

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

14  operate thereunder.

15         Section 27.  Subsections (1) and (3) of section

16  626.561, Florida Statutes, are amended to read:

17         626.561  Reporting and accounting for funds.--

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

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

20  representative, solicitor, or adjuster in transactions under

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

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

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

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

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

26  funds. The licensee in the applicable regular course of

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

28  insured, or other person entitled thereto.

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

30  adjuster who, not being lawfully entitled thereto, either

31  temporarily or permanently diverts or misappropriates

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

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

  3  commits the offense specified below:

  4         (a)  If the funds diverted or misappropriated

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

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

  7  775.082 or s. 775.083.

  8         (b)  If the funds diverted or misappropriated

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

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

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

12         (c)  If the funds diverted or misappropriated

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

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

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

16         (d)  If the funds diverted or misappropriated

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

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

19  775.082, s. 775.083, or s. 775.084.

20         Section 28.  Subsections (1), (2), (4), and (7) of

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

22         626.592  Primary agents.--

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

24  thereafter, Each person operating an insurance agency and each

25  location of a multiple location agency shall designate a

26  primary agent for each insurance agency location and shall

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

28  the insurance agency location where he or she is primary

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

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

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

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  1  effective upon notification to the department. Notice of

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

  3  such change.

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

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

  6  supervision of all individuals within an insurance agency

  7  location whether such individuals who deal with the public in

  8  the solicitation or negotiation of insurance contracts or in

  9  the collection or accounting of moneys from the general

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

11  one insurance agency location.

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

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

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

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

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

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

18  clerical or administrative functions for which licensure is

19  not required.

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

21  conduct the business of insurance unless a primary agent is

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

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

24  agency inception or change of primary agent designation,

25  constitutes as required under this section shall constitute

26  grounds for requiring that the agency obtain a license in

27  accordance with ss. 626.112 and 626.172.

28         Section 29.  Subsection (1) of section 626.601, Florida

29  Statutes, is amended to read:

30         626.601  Improper conduct; inquiry; fingerprinting.--

31

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

  2  shall, upon a written complaint signed by any interested

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

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

  5  service representative, managing general agent, customer

  6  representative, title insurance agent, or title insurance

  7  agency or claims investigator under this code. The department

  8  may thereafter initiate an investigation of any such licensee

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

10  violated any provision of the insurance code. During the

11  course of its investigation, the department shall contact the

12  licensee being investigated unless it determines that

13  contacting such person could jeopardize the successful

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

15         Section 30.  Section 626.611, Florida Statutes, is

16  amended to read:

17         626.611  Grounds for compulsory refusal, suspension, or

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

19  adjuster's, customer representative's, service

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

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

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

23  or continue the license or appointment of any applicant,

24  agent, title agency, solicitor, adjuster, customer

25  representative, service representative, or managing general

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

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

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

29  appointee any one or more of the following applicable grounds

30  exist:

31

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

  2  license or appointment as specified in this code.

  3         (2)  Material misstatement, misrepresentation, or fraud

  4  in obtaining the license or appointment or in attempting to

  5  obtain the license or appointment.

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

  7  department any examination required under this code.

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

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

10  prohibitions of this code.

11         (5)  Willful misrepresentation of any insurance policy

12  or annuity contract or willful deception with regard to any

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

14  of dissemination of information or advertising.

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

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

17  she has materially misrepresented to an insured or other

18  interested party the terms and coverage of an insurance

19  contract with intent and for the purpose of effecting

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

21  contract on less favorable terms than those provided in and

22  contemplated by the contract.

23         (7)  Demonstrated lack of fitness or trustworthiness to

24  engage in the business of insurance.

25         (8)  Demonstrated lack of reasonably adequate knowledge

26  and technical competence to engage in the transactions

27  authorized by the license or appointment.

28         (9)  Fraudulent or dishonest practices in the conduct

29  of business under the license or appointment.

30         (10)  Misappropriation, conversion, or unlawful

31  withholding of moneys belonging to insurers or insureds or

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  1  beneficiaries or to others and received in conduct of business

  2  under the license or appointment.

  3         (11)  Unlawfully rebating, attempting to unlawfully

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

  5  her commission with another.

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

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

  8  representative, or solicitor for the purpose of soliciting or

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

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

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

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

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

14  willful violation of any provision of this code.

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

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

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

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

19  any other country which involves moral turpitude, without

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

21  the court having jurisdiction of such cases.

22         (15)  Fraudulent or dishonest practice in submitting or

23  aiding or abetting any person in the submission of an

24  application for workers' compensation coverage under chapter

25  440 containing false or misleading information as to employee

26  payroll or classification for the purpose of avoiding or

27  reducing the amount of premium due for such coverage.

28         Section 31.  Section 626.621, Florida Statutes, is

29  amended to read:

30         626.621  Grounds for discretionary refusal, suspension,

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

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  1  representative's, service representative's, or managing

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

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

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

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

  6  solicitor, adjuster, customer representative, service

  7  representative, or managing general agent, or claims

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

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

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

11  more of the following applicable grounds exist under

12  circumstances for which such denial, suspension, revocation,

13  or refusal is not mandatory under s. 626.611:

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

15  appointment could have been refused had it then existed and

16  been known to the department.

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

18  other law applicable to the business of insurance in the

19  course of dealing under the license or appointment.

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

21  department.

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

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

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

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

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

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

28  appointment, engaging in unfair methods of competition or in

29  unfair or deceptive acts or practices, as prohibited under

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

31

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

  2  detrimental to the public interest.

  3         (7)  Willful overinsurance of any property or health

  4  insurance risk.

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

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

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

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

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

10  conviction has been entered by the court having jurisdiction

11  of such cases.

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

13         (10)  Cheating on an examination required for licensure

14  or violating test center or examination procedures published

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

16  authorized representatives of the examination program

17  administrator.  Communication of test center and examination

18  procedures must be clearly established and documented.

19         (11)  Failure to inform the department in writing

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

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

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

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

24  any other country without regard to whether a judgment of

25  conviction has been entered by the court having jurisdiction

26  of the case.

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

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

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

30  department.

31

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  1         Section 32.  Subsections (2), (3), and (4) of section

  2  626.641, Florida Statutes, are amended to read:

  3         626.641  Duration of suspension or revocation.--

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

  5  appointment revoked by the department, nor any person whose

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

  7  shall have the right to apply for another license or

  8  appointment under this code within 2 years from the effective

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

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

11  court order or decree affirming the revocation.  The

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

13  appointment or reinstate eligibility to hold such license or

14  appointment if it finds that the circumstance or circumstances

15  for which the eligibility was revoked or for which the

16  previous license or appointment was revoked still exist or are

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

18  representative, or solicitor or eligibility to hold same has

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

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

21  appointment so applied for.

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

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

24  individual have been revoked at two separate times, the

25  department shall not thereafter grant or issue any license

26  under this code as to such individual.

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

28  the license or appointment, the former licensee or appointee

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

30  transaction or business for which a license or appointment is

31  required under this code or directly or indirectly own,

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

  2  or agency or adjuster or adjusting firm.

  3         Section 33.  Section 626.651, Florida Statutes, is

  4  amended to read:

  5         626.651  Effect of suspension, revocation upon

  6  associated licenses and appointments and licensees and

  7  appointees.--

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

  9  or continue any one license of an agent, customer

10  representative, or solicitor, or upon suspension or revocation

11  of eligibility to hold a license or appointment, the

12  department shall at the same time likewise suspend or revoke

13  all other licenses, appointments, or status of eligibility

14  held by the licensee or appointee under this code.

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

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

17  suspension or revocation of eligibility, the license and

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

19  such agency, whether incorporated or unincorporated, and any

20  and all solicitors or customer representatives employed by

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

22  the ground for the suspension or revocation may likewise be

23  suspended or revoked.

24         Section 34.  Section 626.681, Florida Statutes, is

25  amended to read:

26         626.681  Administrative fine in lieu of or in addition

27  to suspension, revocation, or refusal of license or

28  appointment.--

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

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

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

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  1  license or appointment issued under this chapter, the

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

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

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

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

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

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

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

  9  $3,500 $2,500.  The administrative penalty may, in the

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

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

12  the licensee or appointee in connection with any transaction

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

14  related.

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

16  department finds that one or more grounds exist for the

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

18  continue any license issued under this chapter, the department

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

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

21  upon the licensee an administrative penalty in an amount not

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

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

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

25  credit of the licensee in connection with any transaction as

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

27  related.

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

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

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

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

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

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

  3  appointee shall stand suspended or revoked or issuance,

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

  5  upon expiration of such period.

  6         Section 35.  Section 626.691, Florida Statutes, is

  7  amended to read:

  8         626.691  Probation.--

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

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

11  continue any license or appointment issued under this part,

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

13  administrative fine is not permissible under s. 626.681 or

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

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

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

17  administrative monetary penalty imposed under s. 626.681,

18  place the offending licensee or appointee on probation for a

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

20  in its order.

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

22  therewith, the department may specify in its order reasonable

23  terms and conditions to be fulfilled by the probationer during

24  the probation period.  If during the probation period the

25  department has good cause to believe that the probationer has

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

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

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

29  upon the original ground or grounds referred to in subsection

30  (1).

31

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  1         Section 36.  Section 626.692, Florida Statutes, is

  2  created to read:

  3         626.692  Restitution.--If any ground exists for the

  4  suspension, revocation, or refusal of a license or

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

  6  penalty authorized under this chapter, order the licensee to

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

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

  9  withholding of moneys belonging to insurers, insureds,

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

11  restitution required to be paid under this section exceed the

12  amount of money misappropriated, converted, or unlawfully

13  withheld.  Nothing in this section limits or restricts a

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

15         Section 37.  Section 626.727, Florida Statutes, is

16  amended to read:

17         626.727  Scope of this part.--This part applies only as

18  to:

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

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

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

22  and

23         (4)(3)  Service representatives, as defined in s.

24  626.081, or managing general agents, as defined in s. 626.091.

25         Section 38.  Section 626.730, Florida Statutes, is

26  amended to read:

27         626.730  Purpose of license.--

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

29  a general lines agent, customer representative, or solicitor

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

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

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  1  customer representative, or solicitor with respect to the

  2  general public and to facilitate the public supervision of

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

  4  purpose of enabling the licensee to receive a rebate of

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

  6  agent, customer representative, or solicitor or enabling the

  7  licensee to receive commissions or other compensation based

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

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

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

11  that of insurance agent, customer representative, or

12  solicitor.

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

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

15  customer representative, or solicitor as to any applicant

16  therefor or licensee or appointee thereunder if it finds that

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

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

19  for the purpose of securing rebates or commissions on

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

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

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

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

24  an interest other than as to the insurance thereof.

25         Section 39.  Subsection (3) of section 626.732, Florida

26  Statutes, is amended to read:

27         626.732  Requirement as to knowledge, experience, or

28  instruction.--

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

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

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

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

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

  3  shall be permitted to take an examination if application for

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

  5  termination of his or her employment with the department.

  6         Section 40.  Section 626.733, Florida Statutes, is

  7  amended to read:

  8         626.733  Agency firms and corporations; special

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

10  corporation, or association holds an agency contract, all

11  members thereof who solicit, negotiate, or effect insurance

12  contracts, and all officers and stockholders of the

13  corporation who solicit, negotiate, or effect insurance

14  contracts, are required to qualify and be licensed

15  individually as agents, solicitors, or customer

16  representatives; and all of such agents must be individually

17  appointed as to each property and casualty insurer entering

18  into an agency contract with such agency.  Each such

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

20  this section and shall determine and require that each agent

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

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

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

24  comply with the provisions of this section if such insurer

25  satisfactorily demonstrates to the department that the insurer

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

27  an amount of $25,000 or less.

28         Section 41.  Subsection (2) of section 626.7351,

29  Florida Statutes, is amended to read:

30         626.7351  Qualifications for customer representative's

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

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  1  customer representative to any individual found by it to be

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

  3  following qualifications:

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

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

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

  7  this state shall be deemed to meet the residence requirements

  8  of this subsection, notwithstanding the existence at the time

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

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

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

12  satisfactory to the department that the resident licenses have

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

14  she is in good standing.

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

16  sharing a common boundary with this state and has been

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

18  by a Florida resident general lines agent licensed and

19  appointed under this chapter.  The applicant licensed under

20  this subsection must meet all other requirements as described

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

22  licensed and appointed Florida resident general lines agent,

23  conduct business solely within the confines of the office of

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

25         Section 42.  Subsection (1) of section 626.739, Florida

26  Statutes, is amended to read:

27         626.739  Temporary license; death, disability, absence

28  of agent.--

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

30  temporary license authorizing appointment as a general lines

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

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  1  member, business associate, or personal representative for the

  2  purpose of continuing or winding up the business affairs of

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

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

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

  6  agent because of military service or illness or other physical

  7  or mental disability.

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

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

10         (c)  The proposed temporary licensee is must be

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

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

13  experience.

14         (d)  Application for the temporary license has been

15  must be made by the applicant upon statements and affidavit

16  filed with the department on forms as prescribed and furnished

17  by it.

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

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

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

21  for or on behalf of the agent or agency.

22         (f)  Under a temporary license and appointment the

23  licensee does shall not represent as agent any insurer not

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

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

26  classification of insurance than those covered by the last

27  existing agency appointments of the replaced agent, except

28  that, if during the temporary license period an insurer

29  withdraws from the agency, the temporary licensee may be

30  appointed by another like insurer only for the period

31  remaining under the temporary license.

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

  2  regular agent's license upon taking and successfully

  3  completing a classroom course or correspondence course in

  4  insurance or having the insurance employment experience as

  5  prescribed in s. 626.732 and passing an examination as

  6  required by s. 626.221.

  7         Section 43.  Subsections (1) and (2) of section

  8  626.741, Florida Statutes, are amended, present subsection (5)

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

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

11         626.741  Nonresident agents; licensing and

12  restrictions.--

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

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

15  license as:

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

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

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

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

20  manner as a nonresident agent of his state.

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

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

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

24  boundary with this state.

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

26  license and appointment to any nonresident who has an office

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

28  indirect pecuniary interest in any insurance agent, insurance

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

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

31  issuance and throughout the existence of the Florida license,

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

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

  3  insurer as a service representative or who is a managing

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

  5  another state as an agent or broker.  The foregoing

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

  7  of residence does not apply to customer representatives unless

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

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

10  business in this state does not apply to customer

11  representatives who are required to conduct business solely

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

13  Florida resident general lines agent in this state. The

14  department shall have discretion to refuse to issue any

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

16  believe that the applicant by ruse or subterfuge is attempting

17  to avoid the intent and prohibitions contained in this

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

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

20  626.611 and 626.621.

21         (5)  Any individual who holds a Florida nonresident

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

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

24  insurance in this state under the nonresident license and

25  appointment.  Such individual must make application for

26  resident licensure and must become licensed as a resident

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

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

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

30  no longer eligible for licensure as a nonresident agent if

31  such individual fails to make application for a resident

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  1  license and become licensed as a resident agent within 90

  2  days.  His license and any appointments shall be canceled

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

  4  s. 626.731.

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

  6  626.742 and 626.743, nonresident agents shall be subject to

  7  the same requirements as apply to agents resident in this

  8  state.

  9         Section 44.  Present subsection (7) of section 626.792,

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

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

12         626.792  Nonresident agents.--

13         (7)  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 after becoming a resident of this state.

20         (8)(7)  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. and His license and any appointments shall be canceled

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

27  s. 626.785.

28         Section 45.  Present subsection (7) of section 626.835,

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

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

31         626.835  Nonresident agents.--

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  1         (7)  Any individual who holds a Florida nonresident

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

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

  4  insurance in this state under the nonresident license and

  5  appointment.  Such individual must make application for

  6  resident licensure and must become licensed as a resident

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

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

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

10  no longer eligible for licensure as a nonresident agent if

11  such individual fails to make application for a resident

12  license and become licensed as a resident agent within 90

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

14  canceled immediately.  The individual may apply for a resident

15  license pursuant to s. 626.831.

16         Section 46.  Subsection (1) of section 626.837, Florida

17  Statutes, is amended to read:

18         626.837  Excess or rejected business.--

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

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

21  she is licensed and appointed, and which the insurer

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

23  authorized insurer without being required to secure an

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

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

26  her.

27         Section 47.  Paragraph (a) of subsection (2) of section

28  626.8411, Florida Statutes, is amended to read:

29         626.8411  Application of Florida Insurance Code

30  provisions to title insurance agents or agencies.--

31

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

  2  title insurance agents or title insurance agencies:

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

  4  insurance agencies.

  5         Section 48.  Paragraph (a) of subsection (3) of section

  6  626.8417, Florida Statutes, is amended to read:

  7         626.8417  Title insurance agent's license; application

  8  and qualification; errors and omissions insurance; bond and

  9  deposit requirements; exemptions.--

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

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

12  untrustworthy or incompetent, who does not meet the

13  qualifications for examination specified in s. 626.8414, or

14  who does not meet the following qualifications:

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

16  of the application for license, the applicant must have

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

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

19  months of experience in responsible title insurance duties,

20  while working in the title insurance business as a

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

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

23  estate closing transactions and issues title insurance

24  policies but who is exempt from licensure pursuant to

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

26  upon the periods of employment at responsible title insurance

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

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

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

30  of such employment, that the employment was substantially full

31

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

  2  performed by the applicant.

  3         Section 49.  Subsection (2) of section 626.8418,

  4  Florida Statutes, is amended to read:

  5         626.8418  Application for title insurance agency

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

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

  8  the following requirements:

  9         (2)  The applicant must have deposited with the

10  department securities of the type eligible for deposit under

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

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

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

14  department for the benefit of any appointing insurer damaged

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

16  with the appointing insurer. If a properly documented claim is

17  timely filed with the department by a damaged title insurer,

18  the department may remit an appropriate amount of the deposit

19  or the proceeds that are received from the surety in payment

20  of the claim damaged insurer making claim on the bond. The

21  required deposit or bond must be made by the title insurance

22  agency, and a title insurer may not provide the deposit or

23  bond directly or indirectly on behalf of the title insurance

24  agency.  The deposit or bond must secure the performance by

25  the title insurance agency of its duties and responsibilities

26  under the issuing agency contracts with each title insurer

27  underwriter for which it is appointed.  The agency may

28  exchange or substitute other securities of like quality and

29  value for securities on deposit, may receive the interest and

30  other income accruing on such securities, and may inspect the

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

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  1  remain unimpaired as long as the title insurance agency

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

  3  termination of all title insurance agency appointments

  4  licenses held by the title insurance agency. The title

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

  6  bond together with accrued interest after such year has

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

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

  9  adopt rules for alternative methods to comply with this

10  subsection. With respect to such alternative methods for

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

12  performance and good reputation and character of the proposed

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

14  unavailable generally if the prevailing annual premium exceeds

15  25 percent of the principal amount of the bond.

16         Section 50.  Section 626.8437, Florida Statutes, is

17  amended to read:

18         626.8437  Grounds for compulsory refusal, suspension,

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

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

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

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

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

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

25  any one or more of the following grounds exist:

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

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

28  626.8418, and 626.8419.

29         (2)  Material misstatement, misrepresentation, or fraud

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

31  appointment.

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  1         (3)  Willful misrepresentation of any title insurance

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

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

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

  5  dissemination of information or advertising.

  6         (4)  Demonstrated lack of fitness or trustworthiness to

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

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

  9         (5)  Demonstrated lack of reasonably adequate knowledge

10  and technical competence to engage in the transactions

11  authorized by the license or appointment.

12         (6)  Fraudulent or dishonest practices in the conduct

13  of business under the license or appointment.

14         (7)  Misappropriation, conversion, or unlawful

15  withholding of moneys belonging to title insurers or insureds

16  or others and received in conduct of business under the

17  license or appointment.

18         (8)  Unlawful rebating, or attempting to unlawfully

19  rebate, or unlawfully dividing, or offering to unlawfully

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

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

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

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

24  willful violation of any provision of this act.

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

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

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

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

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

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

31  any other country which involves moral turpitude, without

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

  2  the court having jurisdiction of such cases.

  3         Section 51.  Section 626.844, Florida Statutes, is

  4  amended to read:

  5         626.844  Grounds for discretionary refusal, suspension,

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

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

  8  or continue the license or appointment of any title insurance

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

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

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

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

13  more of the following grounds exist under circumstances for

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

15  mandatory under s. 626.8437:

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

17  appointment could have been refused had it then existed and

18  been known to the department.

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

20  course of dealing under the license or appointment.

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

22  department.

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

24  title insurer that the appointee represents or has represented

25  any money coming into the hands of such appointee and

26  belonging to the title insurer.

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

28  unfair or deceptive acts or practices in the conduct of

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

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

31

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

  2  public interest.

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

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

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

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

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

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

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

10  conviction has been entered by the court having jurisdiction

11  of such cases.

12         Section 52.  Subsections (1), (3), and (4) of section

13  626.8443, Florida Statutes, are amended to read:

14         626.8443  Duration of suspension or revocation.--

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

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

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

18  apply for such license or appointment, specify the period

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

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

21  or eligibility shall remain suspended during the period so

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

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

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

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

26  been suspended may not be reinstated except upon request for

27  such reinstatement, but the department shall not grant such

28  reinstatement if it finds that the circumstance or

29  circumstances for which the license, appointment, and

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

31

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

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

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

  4  or agency's license to such person.

  5         (4)  During the period of suspension or after

  6  revocation of the license and appointment, the former licensee

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

  8  transaction or business for which a license or appointment is

  9  required under this code or directly or indirectly own,

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

11  or agency or adjuster or adjusting firm act.

12         Section 53.  Subsections (1) and (2) of section

13  626.852, Florida Statutes, are amended to read:

14         626.852  Scope of this part.--

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

16  and claims investigators as defined hereinafter in this part

17  defined.

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

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

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

21  investigator.

22         Section 54.  Section 626.858, Florida Statutes, is

23  amended to read:

24         626.858  "Nonresident company employee adjuster"

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

26  person who:

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

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

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

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

31  and

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  1         (3)  Is an employee of an insurer, or other insurers

  2  under the common control or ownership of such insurer,

  3  admitted to do business in this state.; and

  4         (4)  Does not maintain an office in this state for the

  5  purpose of adjusting losses in this state.

  6         Section 55.  Section 626.8582, Florida Statutes, is

  7  created to read:

  8         626.8582  "Nonresident public adjuster" defined.--A

  9  "nonresident public adjuster" is a person who:

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

11         (2)  Is a currently licensed public adjuster in his or

12  her state of residence for the type or kinds of insurance for

13  which the licensee intends to adjust claims in this state or,

14  if a resident of a state that does not license public

15  adjusters, has passed the department's adjuster examination as

16  prescribed in s. 626.8732(1)(b); and

17         (3)  Is a self-employed public adjuster or associated

18  with or employed by a public adjusting firm or other public

19  adjuster.

20         Section 56.  Section 626.8584, Florida Statutes, is

21  created to read:

22         626.8584  "Nonresident independent adjuster"

23  defined.--A "nonresident independent adjuster" is a person

24  who:

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

26         (2)  Is a currently licensed independent adjuster in

27  his or her state of residence for the type or kinds of

28  insurance for which the licensee intends to adjust claims in

29  this state or, if a resident of a state that does not license

30  independent adjusters, has passed the department's adjuster

31  examination as prescribed in s. 626.8734(1)(b); and

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  1         (3)  Is a self-employed independent adjuster or

  2  associated with or employed by an independent adjusting firm

  3  or other independent adjuster.

  4         Section 57.  Subsection (2) of section 626.865, Florida

  5  Statutes, is amended to read:

  6         626.865  Public adjuster's qualifications, bond.--

  7         (2)  At the time of application for license as a public

  8  adjuster, the applicant shall file with the department a bond

  9  executed and issued by a surety insurer authorized to transact

10  such business in this state, in the amount of $50,000 $5,000,

11  conditioned for the faithful performance of his or her duties

12  as a public adjuster under the license applied for.  The bond

13  shall be in favor of the department and shall specifically

14  authorize recovery by the department of the damages sustained

15  in case the licensee is guilty of fraud or unfair practices in

16  connection with his or her business as public adjuster. The

17  aggregate liability of the surety for all such damages shall

18  in no event exceed the amount of the bond.  Such bond shall

19  not be terminated unless at least 30 days' written notice is

20  given to the licensee and filed with the department.

21         Section 58.  Section 626.873, Florida Statutes, is

22  amended to read:

23         626.873  Nonresident company employee adjusters.--The

24  department shall, upon application therefor, issue a license

25  to an applicant for a nonresident adjuster's license upon

26  determining that the applicant has paid the applicable license

27  fees required under s. 624.501 and:

28         (1)  Is a currently licensed insurance adjuster in his

29  or her home state, if such state requires a license.

30

31

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  1         (2)  Is an employee of an insurer, or a wholly owned

  2  subsidiary of an insurer, admitted to do business in this

  3  state.

  4         (3)  Does not maintain an office in this state for the

  5  purpose of adjusting losses in this state.

  6         (3)(4)  Has filed a certificate or letter of

  7  authorization from the insurance department of his or her home

  8  state, if such state requires an adjuster to be licensed,

  9  stating that he or she holds a current license or

10  authorization to adjust insurance losses.  Such certificate or

11  authorization must be signed by the insurance commissioner, or

12  his or her deputy, of the adjuster's home state and must

13  reflect whether or not the adjuster has ever had his or her

14  license or authorization in the adjuster's home state

15  suspended or revoked and, if such is the case, the reason for

16  such action.

17         Section 59.  Section 626.8732, Florida Statutes, is

18  created to read:

19         626.8732  Nonresident public adjuster's qualifications,

20  bond.--

21         (1)  The department shall, upon application therefor,

22  issue a license to an applicant for a nonresident public

23  adjuster's license upon determining that the applicant has

24  paid the applicable license fees required under s. 624.501

25  and:

26         (a)  Is a natural person at least 18 years of age.

27         (b)  Has passed to the satisfaction of the department a

28  written Florida public adjuster's examination of the scope

29  prescribed in s. 626.241(6); however, the requirement for such

30  an examination does not apply to any of the following:

31

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  1         1.  An applicant who is licensed as a resident public

  2  adjuster in his or her state of residence, when that state

  3  requires the passing of a written examination in order to

  4  obtain the license and a reciprocal agreement with the

  5  appropriate official of that state has been entered into by

  6  the department; or

  7         2.  An applicant who is licensed as a nonresident

  8  public adjuster in a state other than his or her state of

  9  residence when the state of licensure requires the passing of

10  a written examination in order to obtain the license and a

11  reciprocal agreement with the appropriate official of the

12  state of licensure has been entered into by the department.

13         (c)  Is self-employed as a public adjuster or

14  associated with or employed by a public adjusting firm or

15  other public adjuster. Applicants licensed as nonresident

16  public adjusters under this section must be appointed as such

17  in accordance with the provisions of ss. 626.112 and 626.451.

18  Appointment fees in the amount specified in s. 624.501 must be

19  paid to the department in advance. The appointment of a

20  nonresident public adjuster shall continue in force until

21  suspended, revoked, or otherwise terminated, but subject to

22  biennial renewal or continuation by the licensee in accordance

23  with procedures prescribed in s. 626.381 for licensees in

24  general.

25         (d)  Is trustworthy and has such business reputation as

26  would reasonably assure that he or she will conduct his or her

27  business as a nonresident public adjuster fairly and in good

28  faith and without detriment to the public.

29         (e)  Has had sufficient experience, training, or

30  instruction concerning the adjusting of damages or losses

31  under insurance contracts, other than life and annuity

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  1  contracts; is sufficiently informed as to the terms and

  2  effects of the provisions of those types of insurance

  3  contracts; and possesses adequate knowledge of the laws of

  4  this state relating to such contracts as to enable and qualify

  5  him or her to engage in the business of insurance adjuster

  6  fairly and without injury to the public or any member thereof

  7  with whom he or she may have business as a public adjuster.

  8         (2)  The applicant shall furnish the following with his

  9  or her application:

10         (a)  A complete set of his or her fingerprints. The

11  applicant's fingerprints must be certified by an authorized

12  law enforcement officer. The department may not authorize an

13  applicant to take the required examination or issue a

14  nonresident public adjuster's license to the applicant until

15  the department has received a report from the Florida

16  Department of Law Enforcement and the Federal Bureau of

17  Investigation relative to the existence or nonexistence of a

18  criminal history report based on the applicant's fingerprints.

19         (b)  If currently licensed as a resident public

20  adjuster in the applicant's state of residence, a certificate

21  or letter of authorization from the licensing authority of the

22  applicant's state of residence, stating that the applicant

23  holds a current or comparable license to act as a public

24  adjuster. The certificate or letter of authorization must be

25  signed by the insurance commissioner or his or her deputy or

26  the appropriate licensing official and must disclose whether

27  the adjuster has ever had any license or eligibility to hold

28  any license declined, denied, suspended, revoked, or placed on

29  probation or whether an administrative fine or penalty has

30  been levied against the adjuster and, if so, the reason for

31  the action.

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  1         (c)  If the applicant's state of residence does not

  2  require licensure as a public adjuster and the applicant has

  3  been licensed as a resident insurance adjuster, agent, broker,

  4  or other insurance representative in his or her state of

  5  residence or any other state within the past 3 years, a

  6  certificate or letter of authorization from the licensing

  7  authority stating that the applicant holds or has held a

  8  license to act as such an insurance adjuster, agent, or other

  9  insurance representative. The certificate or letter of

10  authorization must be signed by the insurance commissioner or

11  his or her deputy or the appropriate licensing official and

12  must disclose whether or not the adjuster, agent, or other

13  insurance representative has ever had any license or

14  eligibility to hold any license declined, denied, suspended,

15  revoked, or placed on probation or whether an administrative

16  fine or penalty has been levied against the adjuster and, if

17  so, the reason for the action.

18         (3)  At the time of application for license as a

19  nonresident public adjuster, the applicant shall file with the

20  department a bond executed and issued by a surety insurer

21  authorized to transact surety business in this state, in the

22  amount of $50,000, conditioned for the faithful performance of

23  his or her duties as a nonresident public adjuster under the

24  license applied for. The bond must be in favor of the

25  department and must specifically authorize recovery by the

26  department of the damages sustained if the licensee commits

27  fraud or unfair practices in connection with his or her

28  business as nonresident public adjuster. The aggregate

29  liability of the surety for all the damages may not exceed the

30  amount of the bond. The bond may not be terminated unless at

31

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  1  least 30 days' written notice is given to the licensee and

  2  filed with the department.

  3         (4)  The usual and customary records pertaining to

  4  transactions under the license of a nonresident public

  5  adjuster must be retained for at least 3 years after

  6  completion of the adjustment and must be made available in

  7  this state to the department upon request. The failure of a

  8  nonresident public adjuster to properly maintain records and

  9  make them available to the department upon request constitutes

10  grounds for the immediate suspension of the license issued

11  under this section.

12         (5)  After licensure as a nonresident public adjuster,

13  as a condition of doing business in this state, the licensee

14  must annually on or before January 1, on a form prescribed by

15  the department, submit an affidavit certifying that the

16  licensee is familiar with and understands the insurance code

17  and rules adopted thereunder and the provisions of the

18  contracts negotiated or to be negotiated. Compliance with this

19  filing requirement is a condition precedent to the issuance,

20  continuation, reinstatement, or renewal of a nonresident

21  public adjuster's appointment.

22         Section 60.  Section 626.8734, Florida Statutes, is

23  created to read:

24         626.8734  Nonresident independent adjuster's

25  qualifications.--

26         (1)  The department shall, upon application therefor,

27  issue a license to an applicant for a nonresident independent

28  adjuster's license upon determining that the applicant has

29  paid the applicable license fees required under s. 624.501

30  and:

31         (a)  Is a natural person at least 18 years of age.

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  1         (b)  Has passed to the satisfaction of the department a

  2  written Florida independent adjuster's examination of the

  3  scope prescribed in s. 626.214(6); however, the requirement

  4  for the examination does not apply to any of the following:

  5         1.  An applicant who is licensed as a resident

  6  independent adjuster in his or her state of residence when

  7  that state requires the passing of a written examination in

  8  order to obtain the license and a reciprocal agreement with

  9  the appropriate official of that state has been entered into

10  by the department; or

11         2.  An applicant who is licensed as a nonresident

12  independent adjuster in a state other than his or her state of

13  residence when the state of licensure requires the passing of

14  a written examination in order to obtain the license and a

15  reciprocal agreement with the appropriate official of the

16  state of licensure has been entered into by the department.

17         (c)  Is self-employed or associated with or employed by

18  an independent adjusting firm or other independent adjuster.

19  Applicants licensed as nonresident independent adjusters under

20  this section must be appointed as such in accordance with the

21  provisions of ss. 626.112 and 626.451. Appointment fees in the

22  amount specified in s. 624.501 must be paid to the department

23  in advance. The appointment of a nonresident independent

24  adjuster shall continue in force until suspended, revoked, or

25  otherwise terminated, but subject to biennial renewal or

26  continuation by the licensee in accordance with procedures

27  prescribed in s. 626.381 for licensees in general.

28         (d)  Is trustworthy and has such business reputation as

29  would reasonably assure that he or she will conduct his

30  business as a nonresident independent adjuster fairly and in

31  good faith and without detriment to the public.

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  1         (e)  Has had sufficient experience, training, or

  2  instruction concerning the adjusting of damages or losses

  3  under insurance contracts, other than life and annuity

  4  contracts; is sufficiently informed as to the terms and

  5  effects of the provisions of those types of insurance

  6  contracts; and possesses adequate knowledge of the laws of

  7  this state relating to such contracts as to enable and qualify

  8  him or her to engage in the business of insurance adjuster

  9  fairly and without injury to the public or any member thereof

10  with whom he or she may have business as an independent

11  adjuster.

12         (2)  The applicant shall furnish the following with his

13  or her application:

14         (a)  A complete set of his or her fingerprints. The

15  applicant's fingerprints must be certified by an authorized

16  law enforcement officer.

17         (b)  If currently licensed as a resident independent

18  adjuster in the applicant's state of residence, a certificate

19  or letter of authorization from the licensing authority of the

20  applicant's state of residence, stating that the applicant

21  holds a current license to act as an independent adjuster.

22  Such certificate or letter of authorization must be signed by

23  the insurance commissioner or his or her deputy or the

24  appropriate licensing official and must disclose whether the

25  adjuster has ever had any license or eligibility to hold any

26  license declined, denied, suspended, revoked or placed on

27  probation or whether an administrative fine or penalty has

28  been levied against the adjuster and, if so, the reason for

29  the action.

30         (c)  If the applicant's state of residence does not

31  require licensure as an independent adjuster and the applicant

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  1  has been licensed as a resident insurance adjuster, agent,

  2  broker, or other insurance representative in his state of

  3  residence or any other state within the past 3 years, a

  4  certificate or letter of authorization from the licensing

  5  authority stating that the applicant holds or has held a

  6  license to act as an insurance adjuster, agent, or other

  7  insurance representative. The certificate or letter of

  8  authorization must be signed by the insurance commissioner or

  9  his or her deputy or the appropriate licensing official and

10  must disclose whether the adjuster, agent, or other insurance

11  representative has ever had any license or eligibility to hold

12  any license declined, denied, suspended, revoked or placed on

13  probation or whether an administrative fine or penalty has

14  been levied against the adjuster and, if so, the reason for

15  the action.

16         (3)  The usual and customary records pertaining to

17  transactions under the license of a nonresident independent

18  adjuster must be retained for at least 3 years after

19  completion of the adjustment and must be made available in

20  this state to the department upon request. The failure of a

21  nonresident independent adjuster to properly maintain records

22  and make them available to the the department upon request

23  constitutes grounds for the immediate suspension of the

24  license issued under this section.

25         (4)  After licensure as a nonresident independent

26  adjuster, as a condition of doing business in this state, the

27  licensee must annually on or before January 1, on a form

28  prescribed by the department, submit an affidavit certifying

29  that the licensee is familiar with and understands the

30  insurance laws and administrative rules of this state and the

31  provisions of the contracts negotiated or to be negotiated.

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  1  Compliance with this filing requirement is a condition

  2  precedent to the issuance, continuation, reinstatement, or

  3  renewal of a nonresident independent adjuster's appointment.

  4         Section 61.  Section 626.8736, Florida Statutes, is

  5  created to read:

  6         626.8736  Nonresident independent or public adjusters;

  7  service of process.--

  8         (1)  Each licensed nonresident independent or public

  9  adjuster shall appoint the Insurance Commissioner and

10  Treasurer and his or her successors in office as his or her

11  attorney to receive service of legal process issued against

12  the nonresident independent or public adjuster in this state,

13  upon causes of action arising within this state out of

14  transactions under his license and appointment. Service upon

15  the Insurance Commissioner and Treasurer as attorney shall

16  constitute effective legal service upon the nonresident

17  independent or public adjuster.

18         (2)  The appointment of the Insurance Commissioner and

19  Treasurer for service of process shall be irrevocable for as

20  long as there could be any cause of action against the

21  nonresident independent or public adjuster arising out of his

22  or her insurance transactions in this state.

23         (3)  Duplicate copies of legal process against the

24  nonresident independent or public adjuster shall be served

25  upon the Insurance Commissioner and Treasurer by a person

26  competent to serve a summons.

27         (4)  Upon receiving the service, the Insurance

28  Commissioner and Treasurer shall forthwith send one of the

29  copies of the process, by registered mail with return receipt

30  requested, to the defendant nonresident independent or public

31

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  1  adjuster at his or her last address of record with the

  2  department.

  3         (5)  The Insurance Commissioner and Treasurer shall

  4  keep a record of the day and hour of service upon him or her

  5  of all legal process received under this section.

  6         Section 62.  Section 626.8737, Florida Statutes, is

  7  created to read:

  8         626.8737  Nonresident adjusters; retaliatory

  9  provision.--When under the laws of any other state any fine,

10  tax, penalty, license fee, deposit of money, or security or

11  other obligation, limitation, or prohibition is imposed upon

12  resident insurance adjusters of this state in connection with

13  the issuance of, and activities under, a nonresident

14  adjuster's license under the laws of that state as to Florida

15  resident insurance adjusters, then so long as these laws

16  continue in force or are so administered, the same

17  requirements, obligations, limitations, and prohibitions, of

18  whatever kind, shall be imposed upon every insurance adjuster

19  of that other state when doing business in this state under a

20  nonresident adjuster's license issued under this part.

21         Section 63.  Section 626.8738, Florida Statutes, is

22  created to read:

23         626.8738  Penalty for violation.--In addition to any

24  other remedy imposed pursuant to this code, any person who

25  acts as a resident or nonresident public adjuster or holds

26  himself or herself out to be a public adjuster to adjust

27  claims in this state, without being licensed by the department

28  as a public adjuster and appointed as a public adjuster,

29  commits a felony of the third degree, punishable as provided

30  in s. 775.082, s. 775.083, or s. 775.084. Each act in

31  violation of this section constitutes a separate offense.

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  1         Section 64.  Subsection (5) of section 626.869, Florida

  2  Statutes, is amended to read:

  3         626.869  License, adjusters.--

  4         (5)  Any person holding a license for 24 consecutive

  5  months or longer and appointment and who engages in adjusting

  6  workers' compensation insurance must, beginning in their birth

  7  month and every 2 years thereafter, have completed 24 hours of

  8  courses, 2 hours of which relate to ethics, in subjects shall

  9  certify to the department every 2 years, at least 90 days

10  prior to the renewal date of his or her appointment, the fact

11  that the licensee has completed a course of instruction

12  designed to inform the licensee regarding as to the current

13  workers' compensation laws of this state, so as to enable him

14  or her to engage in such business as a workers' compensation

15  insurance adjuster fairly and without injury to the public and

16  to adjust all claims in accordance with the policy or contract

17  and the workers' compensation laws of this state.  In order to

18  qualify as an eligible course under this subsection, the

19  course must shall:

20         (a)  Have a Consist of 24 hours of classroom

21  instruction in the workers' compensation laws and practices of

22  this state, 2 hours of which shall relate to ethics, with the

23  course outline approved by the department.  It is not required

24  that the 24 hours of classroom instruction take place in one

25  course.

26         (b)  Be taught at a school training facility or other

27  location approved by the department.

28         (c)  Be taught by instructors with at least 5 years of

29  experience in the area of workers' compensation, general lines

30  of insurance, or other persons approved by the department.

31

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  1  However, a member of The Florida Bar is shall be exempt from

  2  the 5 years' experience requirement.

  3         (d)  Furnish the attendee a certificate of completion.

  4  The sponsor of the course provider shall send a roster copy of

  5  the certificate of completion to the department in a format

  6  prescribed by the department.

  7         Section 65.  Section 626.8695, Florida Statutes, is

  8  amended to read:

  9         626.8695  Primary adjuster.--

10         (1)  On or before January 1, 1993, and annually

11  thereafter, Each person operating an adjusting firm and each

12  location of a multiple location adjusting firm must designate

13  a primary adjuster for each such firm or location and must

14  file with the department the name of such primary adjuster and

15  the address of the firm or location where he or she is the

16  primary adjuster, on a form approved by the department.  The

17  designation of the primary adjuster may be changed at the

18  option of the adjusting firm.  Any such change is effective

19  upon notification to the department. Notice of change must be

20  sent to the department within 30 days after such change.

21         (2)(a)  For purposes of this section, a "primary

22  adjuster" is the licensed adjuster who is responsible for the

23  hiring and supervision of all individuals within an adjusting

24  firm location who deal with the public and who acts in the

25  capacity of a public adjuster as defined in s. 626.854, or an

26  independent adjuster as defined in s. 626.855.  An adjuster

27  may be designated as a primary adjuster for only one adjusting

28  firm location.

29         (b)  For purposes of this section, an "adjusting firm"

30  is a location where an independent or public adjuster is

31  engaged in the business of insurance.

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

  2  of the primary adjuster if the an adjusting firm employs any

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

  4  license is currently suspended or revoked.  However, if a

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

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

  7  clerical or administrative functions for which licensure is

  8  not required.

  9         (4)  The primary adjuster in an unincorporated

10  adjusting firm, or the primary adjuster in an incorporated

11  adjusting firm in which no officer, director, or stockholder

12  is an adjuster, is responsible and accountable for the acts of

13  salaried employees under his or her direct supervision and

14  control while acting on behalf of the adjusting firm.  Nothing

15  in this section renders any person criminally liable or

16  subject to any disciplinary proceedings for any act unless the

17  person personally committed or knew or should have known of

18  the act and of the facts constituting a violation of this

19  code.

20         (5)  The department may suspend or revoke the license

21  of any adjuster who is employed by a person whose license is

22  currently suspended or revoked.

23         (6)  An No adjusting firm location may not conduct the

24  business of insurance unless a primary adjuster is designated.

25  Failure of the person operating the adjusting firm to

26  designate a primary adjuster for the firm, or for each

27  location, as applicable, on a form prescribed by the

28  department within 30 days after inception of the firm or

29  change of primary adjuster designation, constitutes grounds

30  for requiring the adjusting firm to obtain an adjusting firm

31  license pursuant to s. 626.8696.

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  1         (7)  Any adjusting firm may request, on a form

  2  prescribed by the department, verification from the department

  3  of any person's current licensure status.  If a request is

  4  mailed to the department within 5 working days after the date

  5  an adjuster is hired, and the department subsequently notifies

  6  the adjusting firm that an employee's license is currently

  7  suspended, revoked, or has been denied, the license of the

  8  primary adjuster shall not be revoked or suspended if the

  9  unlicensed person is immediately dismissed from employment as

10  an adjuster with the firm.

11         Section 66.  Subsection (5) is added to section

12  626.872, Florida Statutes, to read:

13         626.872  Temporary license.--

14         (5)  The department shall not issue a temporary license

15  as an independent adjuster or as a company employee adjuster

16  to any individual who has ever held such a license in this

17  state.

18         Section 67.  Section 626.873, Florida Statutes, is

19  amended to read:

20         626.873  Nonresident adjusters.--

21         (1)  The department shall, upon application therefor,

22  issue a license to an applicant for a nonresident adjuster's

23  license upon determining that the applicant has paid the

24  applicable license fees required under s. 624.501 and:

25         (a)(1)  Is a currently licensed insurance adjuster in

26  his or her home state, if such state requires a license.

27         (b)(2)  Is an employee of an insurer admitted to do

28  business in this state.

29         (c)(3)  Does not maintain an office in this state for

30  the purpose of adjusting losses in this state.

31

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  1         (d)(4)  Has filed a certificate or letter of

  2  authorization from the insurance department of his or her home

  3  state, if such state requires an adjuster to be licensed,

  4  stating that he or she holds a current license or

  5  authorization to adjust insurance losses.  Such certificate or

  6  authorization must be signed by the insurance commissioner, or

  7  his or her deputy, of the adjuster's home state and must

  8  reflect whether or not the adjuster has ever had his or her

  9  license or authorization in the adjuster's home state

10  suspended or revoked and, if such is the case, the reason for

11  such action.

12         (2)  Any individual who holds a Florida nonresident

13  adjuster's license, upon becoming a resident of this state

14  may, for a period not to exceed 90 days, continue to adjust

15  claims in this state under his or her nonresident license and

16  appointment. Such individual must make application for

17  resident licensure and must become licensed as a resident

18  adjuster within 90 days of becoming a resident of this state.

19         (3)  Upon becoming a resident of this state, an

20  individual who holds a Florida nonresident adjuster's license

21  is no longer eligible for licensure as a nonresident adjuster

22  if such individual fails to make application for a resident

23  license and become licensed as a resident adjuster within 90

24  days.  Such individual may apply for a resident license

25  pursuant to s. 626.865, s. 626.866, or s. 626.867.

26         Section 68.  Subsection (2) of section 626.875, Florida

27  Statutes, is amended to read:

28         626.875  Office and records.--

29         (2)  The records of the adjuster relating to a

30  particular claim or loss shall be so retained in the

31  adjuster's place of business for a period of not less than 3

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  1  years 1 year after completion of the adjustment.  This

  2  provision shall not be deemed to prohibit return or delivery

  3  to the insurer or insured of documents furnished to or

  4  prepared by the adjuster and required by the insurer or

  5  insured to be returned or delivered thereto.

  6         Section 69.  Section 626.877, Florida Statutes, is

  7  amended to read:

  8         626.877  Adjustments to comply with insurance contract

  9  and law.--Every adjuster and claims investigator shall adjust

10  or investigate every claim, damage, or loss made or occurring

11  under an insurance contract, in accordance with the terms and

12  conditions of the contract and of the applicable laws of this

13  state.

14         Section 70.  Subsection (1) of section 626.922, Florida

15  Statutes, is amended to read:

16         626.922  Evidence of the insurance; changes; penalty.--

17         (1)  Upon placing a surplus lines coverage, the surplus

18  lines agent shall promptly issue and deliver to the insured

19  evidence of the insurance consisting either of the policy as

20  issued by the insurer or, if such policy is not then

21  available, a certificate, cover note, or other confirmation of

22  insurance.  Such document shall be executed or countersigned

23  by the surplus lines agent and shall show the description and

24  location of the subject of the insurance; coverage,

25  conditions, and term of the insurance; the premium and rate

26  charged and taxes collected from the insured; and the name and

27  address of the insured and insurer.  If the direct risk is

28  assumed by more than one insurer, the document shall state the

29  name and address and proportion of the entire direct risk

30  assumed by each insurer. A surplus lines agent may not

31  delegate the duty to issue any such document to producing

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  1  general lines agents without prior written authority from the

  2  surplus lines insurer. A general lines agent may issue any

  3  such document only if the agent has prior written authority

  4  from the surplus lines agent. The surplus lines agent must

  5  maintain copies of the authorization from the surplus lines

  6  insurer and the delegation to the producing general lines

  7  agent. The producing agent must maintain copies of the written

  8  delegation from the surplus lines agent and copies of any

  9  evidence of coverage or certificate of insurance which the

10  producing agent issues or delivers. Any evidence of coverage

11  issued by a producing agent pursuant to this section must

12  include the name and address of the authorizing surplus lines

13  agent.

14         Section 71.  Section 626.928, Florida Statutes, is

15  amended to read:

16         626.928  Surplus lines agent's bond.--Prior to issuance

17  of license, the applicant shall file with the department, and

18  thereafter for as long as any such license remains in effect,

19  shall keep in force and unimpaired, a bond in favor of the

20  department in the penal sum of not less than $50,000 $5,000,

21  aggregate liability, with authorized corporate surety or

22  sureties approved by the department.  The department may, in

23  its discretion, require a bond in a larger amount commensurate

24  with the volume of surplus lines business transacted or to be

25  transacted by a particular surplus lines agent.  The bond

26  shall be conditioned that the surplus lines agent will

27  faithfully conduct business under the license in accordance

28  with the provisions of the Surplus Lines Law and rules and

29  regulations of the department for the effectuation thereof and

30  that the licensee will promptly remit to the department the

31  taxes as provided for by such law.  No such bond shall be

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  1  terminated unless not less than 30 days' prior written notice

  2  thereof is given the licensee and filed with the department.

  3         Section 72.  Subsections (4) and (7) of section

  4  626.927, Florida Statutes, are amended to read:

  5         626.927  Licensing of surplus lines agent.--

  6         (4)  License and appointment fees in the amount

  7  specified in s. 624.501 shall be paid to the department in

  8  advance. The license and appointment of a surplus lines agent

  9  continue in force until suspended, revoked, or otherwise

10  terminated.  The appointment of a surplus lines agent

11  continues in force until suspended, revoked, or terminated,

12  but is subject to biennial renewal or continuation by the

13  licensee in accordance with procedures prescribed in s.

14  626.381 for agents in general.

15         (7)  Any individual who has been licensed by the

16  department as a surplus lines agent as provided in this

17  section may be subsequently appointed licensed without

18  additional written examination if his or her application for

19  appointment license is filed with the department within 24

20  months next following the date of cancellation or expiration

21  of the prior appointment license.  The department may, in its

22  discretion, require any individual to take and successfully

23  pass an examination as for original issuance of license as a

24  condition precedent to the reinstatement renewal or

25  continuation of the licensee's current license or

26  reinstatement or continuation of the licensee's appointment.

27         Section 73.  Subsections (1) and (2) of section

28  626.9271, Florida Statutes, are amended to read:

29         626.9271  Temporary license; death, disability, absence

30  of surplus lines agent.--

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

  2  temporary license and appointment as a surplus lines agent to

  3  a licensed surplus lines agent's employee, family member,

  4  business associate, or personal representative for the purpose

  5  of continuing or winding up the business affairs of the

  6  surplus lines agent or agency, all subject to the following

  7  conditions:

  8         (a)  The surplus lines agent being replaced must have

  9  died become deceased or become unable to perform his or her

10  duties as agent because of military service or illness or

11  other physical or mental disability.

12         (b)  There must be no other person connected with the

13  surplus lines agent's business who is licensed as a surplus

14  lines agent.

15         (c)  The proposed temporary licensee must be qualified

16  as for a regular surplus lines agent's license under this code

17  except as to residence, examination, education, or experience.

18         (d)  Application for the temporary license and

19  appointment must be made by the applicant upon statements and

20  affidavit filed with the department on forms as prescribed and

21  furnished by it.

22         (e)  The temporary license and appointment shall be

23  issued and be valid for a period of not over 4 months, and may

24  shall not be renewed either to the then holder of the

25  temporary license or to any other person for or on behalf of

26  the surplus lines agent or agency.

27         (2)  The applicant for a temporary license and

28  appointment shall pay to the department, prior to the issuance

29  thereof, the applicable license and appointment fees fee as

30  specified therefor in s. 624.501.

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  1         Section 74.  Subsections (1) and (2) of section

  2  626.929, Florida Statutes, are amended to read:

  3         626.929  Origination, acceptance, placement of surplus

  4  lines business.--

  5         (1)  A resident general lines agent while licensed and

  6  appointed as a surplus lines agent under this part may

  7  originate surplus lines business and may accept surplus lines

  8  business from any other originating Florida-licensed general

  9  lines agent appointed and licensed as to the kind or kinds of

10  insurance involved and may compensate such agent therefor.

11         (2)  A managing general agent while licensed and

12  appointed as a surplus lines agent under this part may accept

13  and place solely such surplus lines business as is originated

14  by a Florida-licensed general lines agent appointed and

15  licensed as to the kind or kinds of insurance involved and may

16  compensate such agent therefor.

17         Section 75.  Subsections (1), (2), and (3) of section

18  626.935, Florida Statutes, are amended to read:

19         626.935  Suspension, revocation, or refusal of surplus

20  lines agent's license.--

21         (1)  The department shall deny an application for,

22  suspend, revoke, or refuse to renew the appointment license of

23  a surplus lines agent and all other licenses and appointments

24  held by the licensee under this code, upon any one or more of

25  the following grounds:

26         (a)  Removal of the licensee's office from the state.

27         (b)  Removal of the accounts and records of his or her

28  surplus lines business from this state during the period when

29  such accounts and records are required to be maintained under

30  s. 626.930.

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  1         (c)  Closure of the licensee's office for a period of

  2  more than 30 consecutive days.

  3         (d)  Failure to make and file his or her quarterly

  4  reports when due as required by s. 626.931.

  5         (e)  Failure to pay the tax on surplus lines premiums,

  6  as provided for in this Surplus Lines Law.

  7         (f)  Failure to maintain the bond as required by s.

  8  626.928.

  9         (g)  Suspension, revocation, or refusal to renew or

10  continue the license or appointment as a general lines agent,

11  service representative, or managing general agent.

12         (h)  Lack of qualifications as for an original surplus

13  lines agent's license.

14         (i)  Violation of this Surplus Lines Law.

15         (j)  For any other applicable cause for which the

16  license of a general lines agent could be suspended, revoked,

17  or refused under s. 626.611.

18         (2)  The department may, in its discretion, deny an

19  application for, suspend, revoke, or refuse to renew the

20  license or appointment of any surplus lines agent upon any

21  applicable ground for which a general lines agent's license

22  could be suspended, revoked, or refused under s. 626.621.

23         (3)  In the suspension or revocation of, or the refusal

24  to issue or renew, the license or appointment of a surplus

25  lines agent, the department shall follow the same procedures,

26  as applicable, as provided for suspension, revocation, or

27  refusal of licenses of general lines agents, but subject to s.

28  626.936 as to failure to file a quarterly report or pay the

29  tax.

30         Section 76.  Subsections (3) and (4) of section

31  626.944, Florida Statutes, are amended to read:

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  1         626.944  Qualifications for health care risk

  2  managers.--

  3         (3)  The department shall issue a license and an

  4  appointment, beginning on June 1, 1986, to practice health

  5  care risk management to any applicant who qualifies under this

  6  section and submits the license and appointment fees fee as

  7  set forth in s. 624.501.  Licenses and appointments shall be

  8  issued and canceled in the same manner as provided in part I

  9  of this chapter.

10         (4)  The department shall renew a health care risk

11  manager appointment license in accordance with procedures

12  prescribed in s. 626.381 for agents in general.

13         Section 77.  Present subsections (3) and (4) of section

14  627.681, Florida Statutes, are renumbered as subsections (4)

15  and (5), respectively, and a new subsection (3) is added to

16  that section, to read:

17         627.681  Term and evidence of insurance.--

18         (3)  Notwithstanding s. 627.6785(3), the term of credit

19  life or credit disability insurance may be for less than the

20  term of the indebtedness. However, except for the age

21  limitations referred to in s. 627.6785(3), the term shall

22  extend for at least 5 years or for the term of the

23  indebtedness, whichever is less.

24         Section 78.  Subsection (3) of section 627.745, Florida

25  Statutes, is amended to read:

26         627.745  Mediation of claims.--

27         (3)(a)  The department shall approve appoint mediators

28  to conduct mediations pursuant to this section.  All mediators

29  must file an application under oath for approval as a

30  mediator.

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  1         (b)  To qualify for approval appointment as a mediator,

  2  a person must shall meet the following qualifications:

  3         1.  Possess a masters or doctorate degree in

  4  psychology, counseling, business, accounting, or economics, be

  5  a member of The Florida Bar, be licensed as a certified public

  6  accountant, or demonstrate that the applicant for approval

  7  appointment has been actively engaged as a qualified mediator

  8  for at least 4 years prior to July 1, 1990.

  9         2.  Within 4 years immediately preceding the date the

10  application for approval is filed with the department, have

11  completed a minimum of a 40-hour training program approved by

12  the department and successfully passed a final an examination

13  included in the training program and approved by the

14  department.  The training program shall include and address

15  all of the following:

16         a.  Mediation theory.

17         b.  Mediation process and techniques.

18         c.  Standards of conduct for mediators.

19         d.  Conflict management and intervention skills.

20         e.  Insurance nomenclature.

21         Section 79.  Section 634.317, Florida Statutes, is

22  amended to read:

23         634.317  License and appointment required.--No person

24  may solicit, negotiate, or effectuate home warranty contracts

25  for remuneration in this state unless such person is licensed

26  and appointed as a sales representative. A licensed and

27  appointed sales representative shall be directly responsible

28  and accountable for all acts of the licensee's employees.

29         Section 80.  Section 634.420, Florida Statutes, is

30  amended to read:

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  1         634.420  License and appointment of sales

  2  representatives.--Sales representatives for service warranty

  3  associations or insurers shall be licensed, appointed,

  4  renewed, continued, reinstated, or terminated in accordance

  5  with procedures as prescribed in chapter 626 for insurance

  6  representatives in general.  However, they shall be exempt

  7  from all other provisions of chapter 626, including

  8  fingerprinting, photo identification, education, and

  9  examination. License, appointment, and other fees shall be

10  those prescribed in s. 624.501.  A licensed and appointed

11  sales representative shall be directly responsible and

12  accountable for all acts of the licensed sales

13  representative's her or his employees or other

14  representatives.  Each service warranty association or insurer

15  shall, on forms prescribed by the department, within 30 days

16  after termination of the appointment, notify the department of

17  such termination.  No employee or sales representative of a

18  service warranty association or insurer may directly or

19  indirectly solicit or negotiate insurance contracts, or hold

20  herself or himself out in any manner to be an insurance agent

21  or solicitor, unless so qualified, licensed, and appointed

22  therefor under the insurance code.

23         Section 81.  Section 642.036, Florida Statutes, is

24  amended to read:

25         642.036  Sales representatives to be licensed and

26  appointed.--

27         (1)  Sales representatives of legal expense insurers

28  shall be licensed, appointed, renewed, continued, reinstated,

29  or terminated as prescribed in chapter 626 for insurance

30  representatives in general, and shall pay the license and

31  appointment fees prescribed in s. 624.501.  No employee or

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  1  sales representative of an insurer may directly or indirectly

  2  solicit or negotiate insurance contracts, or hold herself or

  3  himself out in any manner to be an insurance agent or

  4  solicitor, unless so qualified, licensed, and appointed

  5  therefor under the insurance code.

  6         (2)  Each casualty insurer shall, on or before March 1

  7  of each odd-numbered year, file with the department the name

  8  and business address of each licensed general lines agent or

  9  solicitor who solicits, negotiates, sells, or executes legal

10  expense insurance contracts on behalf of the casualty insurer.

11         Section 82.  Sections 626.532 and 626.857, Florida

12  Statutes, are repealed.

13         Section 83.  This act shall take effect October 1 of

14  the year in which enacted.

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