Senate Bill 1754
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Florida Senate - 1999 SB 1754
By Senator Holzendorf
2-1245-99
1 A bill to be entitled
2 An act relating to insurance; creating s.
3 626.092, F.S.; prohibiting employee leasing
4 representatives from selling certain types of
5 insurance unless they are licensed as insurance
6 agents by the Department of Insurance;
7 prohibiting specified activities by persons
8 that do not hold an insurance license; amending
9 s. 626.916, F.S.; providing that certain
10 conditions that are required before insurance
11 coverage is eligible for export do not apply to
12 contracts or policies that procure coverage in
13 a geographic area for which the Florida
14 Windstorm Underwriting Association is providing
15 coverage; providing an effective date.
16
17 Be It Enacted by the Legislature of the State of Florida:
18
19 Section 1. Section 626.092, Florida Statutes, is
20 created to read:
21 626.092 Employee leasing representatives.--
22 (1) An individual employed by or otherwise
23 representing leasing companies licensed under part XI of
24 chapter 468 may not sell a product or service that includes
25 worker's compensation insurance or life, accident, and health
26 insurance unless properly licensed by the department to sell
27 that line of insurance.
28 (2) With respect to any such insurances, a person may
29 not, unless licensed as an agent:
30 (a) Solicit insurance or procure applications for
31 insurance;
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Florida Senate - 1999 SB 1754
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1 (b) In this state, receive or give a receipt for any
2 money on account of or for any insurer, or receive or give a
3 receipt for money from other persons to be transmitted to any
4 insurer for a policy, contract, or certificate of insurance or
5 any renewal of such policy, contract, or certificate, although
6 such policy, certificate, or contract is not signed by him or
7 her as agent or representative of the insurer;
8 (c) Directly or indirectly represent himself or
9 herself to be an agent of any insurer or as an agent, to
10 collect or forward any insurance premium, or to solicit,
11 negotiate, effect, procure, receive, deliver, or forward,
12 directly or indirectly, any insurance contract or renewal of a
13 contract or any endorsement relating to an insurance contract,
14 or attempt to effect the same, of property or insurable
15 business activities or interests, located in this state;
16 (d) 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, other than as a licensed attorney at law, relative
20 to insurance or insurance contracts, for fee, commission, or
21 other compensation, other than as a salaried, bona fide
22 full-time employee so counseling and advising his or her
23 employer relative to the insurance interests of the employer
24 and of the subsidiaries or business affiliates of the
25 employer; or
26 (e) In anyway directly or indirectly make or cause to
27 be made, or attempt to make or cause to be made, any contract
28 of insurance for or on account of any insurer.
29 (3) For purposes of this section, the term "sell"
30 includes the enrollment of employees for a product or service
31 that includes the coverage set forth in this section, and a
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Florida Senate - 1999 SB 1754
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1 sale must be transacted by a representative who is licensed as
2 an agent.
3 Section 2. Section 626.916, Florida Statutes, is
4 amended to read:
5 626.916 Eligibility for export.--
6 (1) No insurance coverage shall be eligible for export
7 unless it meets all of the following conditions:
8 (a) The full amount of insurance required must not be
9 procurable, after a diligent effort has been made by the
10 producing agent to do so, from among the insurers authorized
11 to transact and actually writing that kind and class of
12 insurance in this state, and the amount of insurance exported
13 shall be only the excess over the amount so procurable from
14 authorized insurers. Surplus lines agents must verify that a
15 diligent effort has been made by requiring a properly
16 documented statement of diligent effort from the retail or
17 producing agent. However, to be in compliance with the
18 diligent effort requirement, the surplus lines agent's
19 reliance must be reasonable under the particular circumstances
20 surrounding the export of that particular risk. Reasonableness
21 shall be assessed by taking into account factors which
22 include, but are not limited to, a regularly conducted program
23 of verification of the information provided by the retail or
24 producing agent. Declinations must be documented on a
25 risk-by-risk basis. If it is not possible to obtain the full
26 amount of insurance required by layering the risk, it is
27 permissible to export the full amount.
28 (b) The premium rate at which the coverage is exported
29 shall not be lower than that rate applicable, if any, in
30 actual and current use by a majority of the authorized
31 insurers for the same coverage on a similar risk.
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Florida Senate - 1999 SB 1754
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1 (c) The policy or contract form under which the
2 insurance is exported shall not be more favorable to the
3 insured as to the coverage or rate than under similar
4 contracts on file and in actual current use in this state by
5 the majority of authorized insurers actually writing similar
6 coverages on similar risks; except that a coverage may be
7 exported under a unique form of policy designed for use with
8 respect to a particular subject of insurance if a copy of such
9 form is filed with the department by the surplus lines agent
10 desiring to use the same and is subject to the disapproval of
11 the department within 10 days of filing such form exclusive of
12 Saturdays, Sundays, and legal holidays if it finds that the
13 use of such special form is not reasonably necessary for the
14 principal purposes of the coverage or that its use would be
15 contrary to the purposes of this Surplus Lines Law with
16 respect to the reasonable protection of authorized insurers
17 from unwarranted competition by unauthorized insurers.
18 (d) Except as to extended coverage in connection with
19 fire insurance policies and except as to windstorm insurance,
20 the policy or contract under which the insurance is exported
21 shall not provide for deductible amounts, in determining the
22 existence or extent of the insurer's liability, other than
23 those available under similar policies or contracts in actual
24 and current use by one or more authorized insurers.
25 (2) The department may by rules and regulations
26 declare eligible for export generally, and notwithstanding the
27 provisions of paragraphs (a), (b), (c), and (d) of subsection
28 (1), any class or classes of insurance coverage or risk for
29 which it finds, after a hearing, that there is no reasonable
30 or adequate market among authorized insurers. Any such rules
31 and regulations shall continue in effect during the existence
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1 of the conditions upon which predicated, but subject to
2 termination by the department.
3 (3)(a) Subsection (1) does not apply to wet marine and
4 transportation or aviation risks which are subject to s.
5 626.917.
6 (b) Paragraphs (1)(a), (b), and (c) do not apply to
7 contracts or policies that procure coverage in a geographic
8 area for which the Florida Windstorm Underwriting Association
9 is providing coverage.
10 (4) A reasonable per-policy fee, not to exceed $25,
11 may be charged by the filing surplus lines agent for each
12 policy certified for export.
13 Section 3. This act shall take effect July 1, 1999.
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16 SENATE SUMMARY
17 Prohibits employee leasing representatives from selling
certain types of insurance unless they are licensed as
18 insurance agents by the Department of Insurance.
Prohibits specified activities by persons that do not
19 hold an insurance license. Provides that certain
conditions that are required before insurance coverage is
20 eligible for export do not apply to contracts or policies
that procure coverage in a geographic area for which the
21 Florida Windstorm Underwriting Association is providing
coverage.
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