CODING: Words stricken are deletions; words underlined are additions.
SENATE AMENDMENT
Bill No. CS/HB 339
Amendment No. ___
CHAMBER ACTION
Senate House
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11 Senator Diaz-Balart moved the following amendment:
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13 Senate Amendment (with title amendment)
14 On page 8, between lines 18 and 19,
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16 insert:
17 Section 10. Paragraph (e) of subsection (1) of section
18 626.321, Florida Statutes, is amended to read:
19 626.321 Limited licenses.--
20 (1) The department shall issue to a qualified
21 individual, or a qualified individual or entity under
22 paragraphs (c), (d), and (e), a license as agent authorized to
23 transact a limited class of business in any of the following
24 categories:
25 (e) Credit life or disability insurance.--License
26 covering only credit life or disability insurance. The license
27 may be issued only to an individual employed by a life or
28 health insurer as an officer or other salaried or commissioned
29 representative, or to an individual employed by or associated
30 with a lending or financing institution or creditor, and may
31 authorize the sale of such insurance only with respect to
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1 borrowers or debtors of such lending or financing institution
2 or creditor. However, only the individual or entity whose tax
3 identification number is used in receiving or is credited with
4 receiving the commission from the sale of such insurance shall
5 be the licensed agent of the insurer. No individual while so
6 licensed shall hold a license as an agent or solicitor as to
7 any other or additional kind or class of life or health
8 insurance coverage. An entity other than a lending or
9 financial institution defined in s. 655.005(1)(g), (h), or (p)
10 holding a limited license under this paragraph is shall also
11 be authorized to sell credit insurance and credit property
12 insurance. An entity applying for a license under this
13 section:
14 1. Is required to submit only one application for a
15 license under s. 626.171, excluding the requirements of s.
16 626.171(5), provided that the entity is regulated by any of
17 the following federal or state agencies: Office of the
18 Comptroller of the Currency; the Office of Thrift Supervision;
19 the Securities and Exchange Commission; or the Department of
20 Banking and Finance.
21 2. Is not required to obtain a license or appointment
22 for each office, branch office, or place of business making
23 use of the entity's business name by applying to the
24 department for the license on a simplified form developed by
25 rule of the department for this purpose. However, the licensed
26 entity shall file with the department the address and
27 telephone number of each place of business at which credit
28 insurance is being marketed or sold. This information must be
29 filed annually by January 1 in an electronic format as
30 specified by the department by rule. The licensee is required
31 to file with the department, in the same specified electronic
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1 format, any changes, additions, or deletions regarding each
2 place of business marketing or selling credit insurance within
3 30 days after such change.
4 3. Is not required to pay any additional application
5 fees for a license issued to the offices or places of business
6 referenced in subsection (2), but is required to pay the
7 license fee as prescribed in s. 624.501, be appointed under s.
8 626.112, and pay the prescribed appointment fee under s.
9 624.501. A copy of the license obtained under this paragraph
10 shall be posted at each the business location at for which
11 employees are selling insurance authorized under the entity
12 license it was issued so as to be readily visible to
13 prospective purchasers of such coverage.
14 Section 11. Subsection (1) of section 627.679, Florida
15 Statutes, is amended to read:
16 627.679 Amount of insurance; disclosure.--
17 (1)(a) The amount of credit life insurance written
18 under one or more policies shall not exceed by more than $5
19 the total of the payments of the specific contracts of
20 indebtedness in connection with which it is written, when the
21 indebtedness is repayable in substantially equal installments
22 or in one installment or a single payment.
23 (b) The total amount of credit life insurance on the
24 life of any debtor with respect to any loan or loans covered
25 in one or more insurance policies shall at no time exceed
26 $50,000 with any one creditor, except that loans not exceeding
27 1 year's duration shall not be subject to such limits, and on
28 such loans not exceeding 1 year's duration, the limits of
29 coverage shall not exceed $50,000 with any one insurer.
30 (c) Before any credit life insurance may be sold, the
31 creditor agent or agent shall obtain a separate written
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1 acknowledgment with respect to each of the following:
2 1. That the borrower understands that he or she has
3 the option of assigning any other policy or policies the
4 borrower owns or may procure for the purpose of covering such
5 loan and that the policy need not be purchased from the
6 creditor agent in order to obtain the loan.
7 2. That the borrower understands that the credit life
8 coverage may be deferred if, at the time of application, the
9 borrower is unable to engage in employment or unable to
10 perform normal activities of a person of like age and sex, if
11 the proposed credit life insurance policy contains this
12 restriction.
13 3. That the borrower understands that the benefits
14 under the policy will terminate when the borrower reaches a
15 certain age and that the borrower's age is accurately
16 represented on the application or policy.
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18 Notwithstanding the required disclosures set forth in this
19 paragraph, if the sale of credit life insurance is solicited
20 or consummated telephonically, the creditor or agent shall
21 provide the foregoing disclosures to the borrower within 30
22 days from the date the coverage takes effect. The borrower
23 shall be notified that he or she has 30 days from the date the
24 disclosures are received to rescind the credit life insurance
25 coverage.
26 Section 12. Section 624.408, Florida Statutes, is
27 amended to read:
28 624.408 Surplus as to policyholders required; new and
29 existing insurers.--
30 (1)(a) To maintain a certificate of authority to
31 transact any one kind or combinations of kinds of insurance,
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1 as defined in part V of this chapter, an insurer in this state
2 shall at all times maintain surplus as to policyholders not
3 less than the greater of:
4 1. Except as provided in subparagraph 5. and paragraph
5 (b), $1.5 million;
6 2. For life insurers, 4 percent of the insurer's total
7 liabilities;
8 3. For life and health insurers, 4 percent of the
9 insurer's total liabilities plus 6 percent of the insurer's
10 liabilities relative to health insurance; or
11 4. For all insurers other than mortgage guaranty
12 insurers, life insurers, and life and health insurers, 10
13 percent of the insurer's total liabilities.
14 5. For property and casualty insurers, $4 million.
15 (b) For any property and casualty insurer holding a
16 certificate of authority on December 1, 1993, the following
17 amounts apply instead of the $4 million required by
18 subparagraph (a)5.:
19 1. On December 31, 1998, and until December 30, 1999,
20 $2.25 million.
21 2. On December 31, 1999, and until December 30, 2000,
22 $2.5 million.
23 3. On December 31, 2000, and until December 30, 2001,
24 $2.75 million.
25 4. On December 31, 2001, and until December 30, 2002,
26 $3 million.
27 5. On December 31, 2002, and until December 30, 2003,
28 $3.25 million.
29 6. On December 31, 2003, and until December 30, 2004,
30 $3.6 million.
31 7. On December 31, 2004, and thereafter, $4 million.
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1 (2) For purposes of this section, liabilities shall
2 not include liabilities required under s. 625.041(4). For
3 purposes of computing minimum surplus as to policyholders
4 pursuant to s. 625.305(1), liabilities shall include
5 liabilities required under s. 625.041(4).
6 (3) No insurer shall be required under this section to
7 have surplus as to policyholders greater than $100 million.
8 (4) Mortgage guaranty insurers shall have and maintain
9 a minimum surplus as required by s. 635.042.
10 Section 13. Section 635.042, Florida Statutes, is
11 amended to read:
12 635.042 Minimum surplus requirement Limitation on
13 outstanding liability.--
14 (1) A mortgage guaranty insurer must have and maintain
15 a minium surplus of not less than the greater of $4 million or
16 10 percent of the insurer's total outstanding liabilities
17 other than the required contingency reserve. An insurer shall
18 not be required under this subsection to have a surplus as to
19 policyholders greater than $100 million.
20 (2) A mortgage guaranty insurer must also possess
21 sufficient capital and surplus so that the total outstanding
22 aggregate exposure net of reinsurance under mortgage guaranty
23 policies written by the insurer does not exceed 25 times its
24 paid-in capital, surplus, and contingency reserve combined.
25 The audited financial reports required pursuant to s.
26 624.424(8) must disclose the total aggregate exposure net of
27 reinsurance under mortgage guaranty policies written by the
28 insurer.
29 (3) If a mortgage guaranty insurer is not in
30 compliance with this section, the department may take any
31 action against such insurer that the department may take
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1 against an insurer that is not in compliance with s. 624.408.
2 No mortgage guaranty insurer may at any time have outstanding
3 a total liability net of reinsurance, under its aggregate
4 mortgage guaranty insurance policies, exceeding 25 times its
5 paid-in capital, surplus, and contingency reserve combined.
6 Section 14. Subsection (3) of section 626.9551,
7 Florida Statutes, is amended to read:
8 626.9551 Favored agent or insurer; coercion of
9 debtors.--
10 (3) Paragraphs (2)(a), (b), (c), and (d) do not apply
11 to sales of insurance regulated under ss. 627.676-627.6845, s.
12 655.946, parts XV-XVI of chapter 627, or 12 U.S.C. ss.
13 4901-4910. Paragraph (2)(d) does not apply to sales of
14 insurance as defined in s. 624.605(1)(i) and (j).
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16 (Redesignate subsequent sections.)
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20 And the title is amended as follows:
21 On page 1, line 16, after the semicolon,
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23 insert:
24 amending s. 624.408, F.S.; providing a minimum
25 surplus for mortgage guaranty insurers;
26 amending 635.042, F.S.; providing for minimum
27 surplus requirements for mortgage guaranty
28 insurers; amending s. 626.321, F.S.;
29 authorizing individuals and entities holding a
30 credit life or disability insurance license to
31 sell credit insurance; modifying requirements
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1 for licensure; amending s. 627.679, F.S.;
2 requiring certain disclosures to be made within
3 a specified time upon the sale of credit life
4 insurance; allowing a borrower a specified time
5 from the date of such disclosures to rescind
6 the coverage; amending s. 626.9551, F.S.;
7 providing for an exemption;
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