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.

14

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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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