Senate Bill sb2174er

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  1

  2         An act relating to insurance; amending s.

  3         624.318, F.S.; requiring access to records by

  4         the department; repealing s. 624.501(11) and

  5         (23), F.S.; repealing provisions establishing

  6         specified fees; amending s. 626.112, F.S.;

  7         prohibiting certain activities that constitute

  8         solicitation of insurance by unlicensed

  9         persons; amending s. 626.171, F.S.; revising

10         agent application requirements; amending s.

11         626.181, F.S.; extending a period of

12         eligibility for reappointment; creating s.

13         626.202, F.S.; requiring fingerprinting of

14         specified persons; amending s. 626.431, F.S.;

15         extending the nonappointment period to 48

16         months; amending s. 626.521, F.S.; requiring

17         certain information upon demand of the

18         department; amending s. 626.541, F.S.;

19         requiring notification to the department of

20         certain name changes and other information;

21         amending s. 626.5715, F.S.; removing a

22         requirement that the Department of Insurance

23         adopt rules to assure parity of regulation;

24         providing that the Insurance Code applies to

25         all transactions; amending s. 626.601, F.S.;

26         revising a confidentiality provision; amending

27         s. 626.611, F.S.; prohibiting the sale of

28         unregistered securities; amending ss. 626.741,

29         626.792, 626.835, F.S.; limiting the authority

30         of certain nonresident licenses to that granted

31         by the resident state; amending s. 626.8427,


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  1         F.S.; revising provisions governing the

  2         duration of licenses; amending s. 626.856,

  3         F.S.; revising the definition of the term

  4         "company employee adjuster"; amending s.

  5         626.872, F.S.; limiting the term of a temporary

  6         adjuster's license; amending s. 626.873, F.S.;

  7         revising a catchline regarding nonresident

  8         company adjusters; amending s. 627.927;

  9         limiting an experience requirement for surplus

10         lines agents; extending a renewal grace period;

11         creating s. 626.9531, F.S.; requiring the

12         identification of certain persons in

13         advertisements and other communications;

14         amending ss. 648.315, 648.38, 648.384, F.S.;

15         extending a period of eligibility for

16         reappointment; creating s. 626.9651, F.S.;

17         requiring the Department of Insurance to adopt

18         rules governing the use of a consumer's

19         nonpublic personal financial and health

20         information; providing standards for the rules;

21         providing an effective date.

22

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

24

25         Section 1.  Subsection (2) of section 624.318, Florida

26  Statutes, is amended to read:

27         624.318  Conduct of examination or investigation;

28  access to records; correction of accounts; appraisals.--

29         (2)  Every person being examined or investigated, and

30  its officers, attorneys, employees, agents, and

31  representatives, shall make freely available to the department


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  1  or its examiners or investigators the accounts, records,

  2  documents, files, information, assets, and matters in their

  3  possession or control relating to the subject of the

  4  examination or investigation. An agent who provides other

  5  products or services or maintains customer information not

  6  related to insurance must maintain records relating to

  7  insurance products and transactions separately if necessary to

  8  give the department access to such records. If records

  9  relating to the insurance transactions are maintained by an

10  agent on premises owned or operated by a third party, the

11  agent and the third party must provide access to the records

12  by the department.

13         Section 2.  Subsections (11) and (23) of section

14  624.501, are repealed.

15         Section 3.  Subsection (1) of section 626.112, Florida

16  Statutes, is amended and subsection (8) is added to that

17  section to read:

18         626.112  License and appointment required; agents,

19  customer representatives, solicitors, adjusters, insurance

20  agencies, service representatives, managing general agents.--

21         (1)(a)  No person may shall be, act as, or advertise or

22  hold himself or herself out to be an insurance agent, customer

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

24  currently licensed and appointed.

25         (b)  Except as provided in subsection (6) or in

26  applicable department rules, and in addition to other conduct

27  described in this chapter with respect to particular types of

28  agents, a license as an insurance agent, service

29  representative, solicitor, customer representative, or limited

30  customer representative is required in order to engage in the

31  solicitation of insurance. For purposes of this requirement,


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  1  as applicable to any of the license types described in this

  2  section, the solicitation of insurance is the attempt to

  3  persuade any person to purchase an insurance product by:

  4         1.  Describing the benefits or terms of insurance

  5  coverage, including premiums or rates of return;

  6         2.  Distributing an invitation to contract to

  7  prospective purchasers;

  8         3.  Making general or specific recommendations as to

  9  insurance products;

10         4.  Completing orders or applications for insurance

11  products; or

12         5.  Comparing insurance products, advising as to

13  insurance matters, or interpreting policies or coverages.

14

15  However, an employee leasing company licensed pursuant to

16  chapter 468 which is seeking to enter into a contract with an

17  employer that identifies products and services offered to

18  employees may deliver proposals for the purchase of employee

19  leasing services to prospective clients of the employee

20  leasing company setting forth the terms and conditions of

21  doing business; classify employees as permitted by s. 468.529;

22  collect information from prospective clients and other sources

23  as necessary to perform due diligence on the prospective

24  client and to prepare a proposal for services; provide and

25  receive enrollment forms, plans, and other documents; and

26  discuss or explain in general terms the conditions,

27  limitations, options, or exclusions of insurance benefit plans

28  available to the client or employees of the employee leasing

29  company were the client to contract with the employee leasing

30  company. Any advertising materials or other documents

31  describing specific insurance coverages must identify and be


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  1  from a licensed insurer or its licensed agent or a licensed

  2  and appointed agent employed by the employee leasing company.

  3  The employee leasing company may not advise or inform the

  4  prospective business client or individual employees of

  5  specific coverage provisions, exclusions, or limitations of

  6  particular plans. As to clients for which the employee leasing

  7  company is providing services pursuant to s. 468.525(4), the

  8  employee leasing company may engage in activities permitted by

  9  ss. 626.041, 626.051, and 626.062, subject to the restrictions

10  specified in those sections. If a prospective client requests

11  more specific information concerning the insurance provided by

12  the employee leasing company, the employee leasing company

13  must refer the prospective business client to the insurer or

14  its licensed agent or to a licensed and appointed agent

15  employed by the employee leasing company.

16         (8)  No insurance agent, insurance agency, or other

17  person licensed under the Insurance Code may pay any fee or

18  other consideration to an unlicensed person other than an

19  insurance agency for the referral of prospective purchasers to

20  an insurance agent which is in any way dependent upon whether

21  the referral results in the purchase of an insurance product.

22         Section 4.  Subsections (2) and (5) of section 626.171,

23  Florida Statutes, are amended to read:

24         626.171  Application for license.--

25         (2)  In the application, the applicant shall set forth:

26         (a)  His or her full name, age, social security number,

27  residence, and place of business, and occupation for the

28  5-year period preceding the date of application.

29         (b)  His or her qualifications for the license, as

30  follows:

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  1         1.  What efforts he or she has made or intends to make

  2  to become familiar with the insurance laws of this state and

  3  with the provisions of the contracts to be negotiated.

  4         2.  What insurance experience he or she has had, if

  5  any.

  6         3.  What insurance instruction he or she has had or

  7  expects to receive.

  8         4.  What approved insurance courses he or she

  9         (b)  Proof that he or she has completed or is in the

10  process of completing any required prelicensing course which

11  may be used to meet any educational requirements.

12         (c)  Whether he or she has been refused or has

13  voluntarily surrendered or has had suspended or revoked a

14  license to solicit insurance by the department or by the

15  supervising officials of any state.

16         (d)  Whether any insurer or any managing general agent

17  claims the applicant is indebted under any agency contract or

18  otherwise and, if so, the name of the claimant, the nature of

19  the claim, and the applicant's defense thereto, if any.

20         (e)  Proof that the applicant meets the requirements

21  for the type of license for which he or she is applying

22  Whether the applicant will devote all or part of his or her

23  efforts to acting as an insurance representative and, if part

24  only, how much time will be devoted to such work and in what

25  other business or businesses he or she is engaged or employed.

26         (f)  Such other or additional information as the

27  department may deem proper to enable it to determine the

28  character, experience, ability, and other qualifications of

29  the applicant to hold himself or herself out to the public as

30  an insurance representative.

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  1         (5)  An application for a license as an agent, customer

  2  representative, solicitor, adjuster, insurance agency, service

  3  representative, managing general agent, or reinsurance

  4  intermediary must, or claims investigator shall be accompanied

  5  by a set of the individual applicant's fingerprints, or, if

  6  the applicant is not an individual, by a set of the

  7  fingerprints of the sole proprietor, majority owner, partners,

  8  officers, and or directors, on a form adopted by rule of the

  9  department and accompanied by the fingerprint processing fee

10  set forth in s. 624.501.  The fingerprints shall be certified

11  by a law enforcement officer.

12         Section 5.  Section 626.181, Florida Statutes, is

13  amended to read:

14         626.181  Number of applications for licensure

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

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

17  individual shall not be required to take another examination

18  for a similar license, regardless, in the case of an agent, of

19  the number of insurers to be represented by him or her as

20  agent, unless:

21         (1)  Specifically ordered by the department to complete

22  a new application for license; or

23         (2)  During any period of 48 24 months since the filing

24  of the original license application, such individual was not

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

26  unless the failure to be so appointed was due to military

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

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

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

30  discharge from military service if the military service does

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


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  1  clause for a period of more than 6 4 years from the date of

  2  filing of the original application for license.

  3         Section 6.  Section 626.202, Florida Statutes, is

  4  created to read:

  5         626.202  Fingerprinting requirements.--If there is a

  6  change in ownership or control of any entity licensed under

  7  this chapter, or if a new partner, officer, or director is

  8  employed or appointed, a set of fingerprints of the new owner,

  9  partner, officer, or director must be filed with the

10  department within 30 days after the change. The acquisition of

11  10 percent or more of a the voting securities of a licensed

12  entity is considered a change of ownership or control. The

13  fingerprints must be certified by a law enforcement officer

14  and be accompanied by the fingerprint processing fee in s.

15  624.501.

16         Section 7.  Subsections (2) and (3) of section 626.431,

17  Florida Statutes, are amended to read:

18         626.431  Effect of expiration of license and

19  appointment.--

20         (2)  When a licensee's last appointment for a

21  particular class of insurance has been terminated or not

22  renewed, the department must notify the licensee that his or

23  her eligibility for appointment as such an appointee will

24  expire unless he or she is appointed prior to expiration of

25  the 48-month 24-month period referred to in subsection (3).

26         (3)  An individual who fails to maintain an appointment

27  with an appointing entity writing the class of business listed

28  on his or her license during any 48-month 24-month period

29  shall not be granted an appointment for that class of

30  insurance until he or she qualifies as a first-time applicant.

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  1         Section 8.  Subsection (2) of section 626.521, Florida

  2  Statutes, is amended to read:

  3         626.521  Character, credit reports.--

  4         (2)  If requested by the department Within 60 days

  5  after such appointment or employment has been made or

  6  commenced, the insurer, manager, general agent, general lines

  7  agent, or employer, as the case may be, shall furnish to the

  8  department on a form furnished by the department, such

  9  information as it may reasonably require relative to such

10  individual and investigation.

11         Section 9.  Section 626.541, Florida Statutes, is

12  amended to read:

13         626.541  Firm, corporate, and business names; officers;

14  associates; notice of changes.--

15         (1)  Any licensed agent or adjuster doing business

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

17  other than his or her own individual name shall, within 30

18  days after the initial transaction of insurance under such

19  business name, annually on or before January 1 file with the

20  department, on forms furnished by it, a written statement of

21  the firm, corporate, or business name being so used, the

22  address of any office or offices or places of business making

23  use of such name, and the name and social security number of

24  each officer and director of the corporation and of each

25  individual associated in such firm or corporation as to the

26  insurance transactions thereof or in the use of such business

27  name.

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

29  of the officers and directors, or of any of such addresses, or

30  in the personnel so associated, written notice of such change

31  must shall be filed with the department within 30 60 days by


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  1  or on behalf of those licensees terminating any such firm,

  2  corporate, or business name or continuing to operate

  3  thereunder.

  4         (3)  Any licensed insurance agency shall, within 30

  5  days after a change, promptly, but in no event later than

  6  annually on or before January 1, notify the department of any

  7  change in the information contained in the application filed

  8  pursuant to s. 626.172.

  9         Section 10.  Section 626.5715, Florida Statutes, is

10  amended to read:

11         626.5715  Parity of regulation of insurance agents and

12  agencies.--The Insurance Code requirements apply equally to

13  all department shall adopt rules to assure the parity of

14  regulation in this state of insurance transactions as between

15  an insurance agency owned by or an agent associated with a

16  federally chartered financial institution, an insurance agency

17  owned by or an agent associated with a state-chartered

18  financial institution, and an insurance agency owned by or an

19  agent associated with an entity that is not a financial

20  institution. Except as provided in the code, one Such rules

21  shall be limited to assuring that no insurance agency or agent

22  is not subject to more stringent or less stringent regulation

23  than another insurance agency or agent on the basis of the

24  regulatory status of the entity that owns the agency or is

25  associated with the agent.  For the purposes of this section,

26  a person is "associated with" another entity if the person is

27  employed by, retained by, under contract to, or owned or

28  controlled by the entity directly or indirectly.  This section

29  does not apply with respect to a financial institution that is

30  prohibited from owning an insurance agency or that is

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  1  prohibited from being associated with an insurance agent under

  2  state or federal law.

  3         Section 11.  Subsection (6) of section 626.601, Florida

  4  Statutes, is amended to read:

  5         626.601  Improper conduct; inquiry; fingerprinting.--

  6         (6)  The complaint and any information obtained

  7  pursuant to the investigation by the department are

  8  confidential and are exempt from the provisions of s. 119.07,

  9  unless the department files a formal administrative complaint,

10  emergency order, or consent order against the licensee, or

11  unless the licensee waives confidentiality. Nothing in this

12  subsection shall be construed to prevent the department from

13  disclosing the complaint or such information as it deems

14  necessary to conduct the investigation, to update the

15  complainant as to the status and outcome of the complaint, or

16  to share such information with any law enforcement agency.

17         Section 12.  Subsection (16) is added to section

18  626.611, Florida Statutes, to read:

19         626.611  Grounds for compulsory refusal, suspension, or

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

21  adjuster's, customer representative's, service

22  representative's, or managing general agent's license or

23  appointment.--The department shall deny an application for,

24  suspend, revoke, or refuse to renew or continue the license or

25  appointment of any applicant, agent, title agency, solicitor,

26  adjuster, customer representative, service representative, or

27  managing general agent, and it shall suspend or revoke the

28  eligibility to hold a license or appointment of any such

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

30  appointee any one or more of the following applicable grounds

31  exist:


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  1         (16)  Sale of an unregistered security that was

  2  required to be registered, pursuant to chapter 517.

  3         Section 13.  Subsection (2) of section 626.741, Florida

  4  Statutes, is amended to read:

  5         626.741  Nonresident agents; licensing and

  6  restrictions.--

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

  8  license and appointment to any nonresident who has an office

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

10  indirect pecuniary interest in any insurance agent, insurance

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

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

13  issuance and throughout the existence of the Florida license,

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

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

16  insurer as a service representative or who is a managing

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

18  another state as an agent or broker.  The foregoing

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

20  of residence does not apply to customer representatives unless

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

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

23  business in this state does not apply to customer

24  representatives who are required to conduct business solely

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

26  Florida resident general lines agent in this state. The

27  authority of such nonresident license is limited to the

28  specific lines of authority granted in the license issued by

29  the agent's state of residence and further limited to the

30  specific lines authorized under the nonresident license issued

31  by this state. The department shall have discretion to refuse


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  1  to issue any license or appointment to a nonresident when it

  2  has reason to believe that the applicant by ruse or subterfuge

  3  is attempting to avoid the intent and prohibitions contained

  4  in this subsection or to believe that any of the grounds exist

  5  as for suspension or revocation of license as set forth in ss.

  6  626.611 and 626.621.

  7         Section 14.  Subsection (6) of section 626.792, Florida

  8  Statutes, is amended to read:

  9         626.792  Nonresident agents.--

10         (6)  The licensee shall, throughout the existence of

11  the Florida nonresident life license and appointment, hold a

12  license as a resident life agent in his or her state of

13  residence. The authority of the nonresident license is limited

14  to the specific lines of authority granted in the license

15  issued by the agent's state of residence and further limited

16  to the specific lines authorized under the nonresident license

17  issued by this state.

18         Section 15.  Subsection (6) of section 626.835, Florida

19  Statutes, is amended to read:

20         626.835  Nonresident agents.--

21         (6)  The licensee shall, throughout the existence of

22  his or her Florida nonresident health license and appointment,

23  hold a license as a resident health agent in his or her state

24  of residence. The authority of the nonresident license is

25  limited to the specific lines of authority granted in the

26  license issued by the agent's state of residence and further

27  limited to the specific lines authorized under the nonresident

28  license issued by this state.

29         Section 16.  Section 626.8427, Florida Statutes, is

30  amended to read:

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  1         626.8427  Number of applications for licensure

  2  required; exemption; effect of expiration of license.--

  3         (1)  After a license as a title insurance agent has

  4  been issued to a title insurance agent, the agent is not

  5  required to file another license application for a similar

  6  license, irrespective of the number of insurers to be

  7  represented by the agent, unless:

  8         (a)  The agent is specifically ordered by the

  9  department to complete a new application; or

10         (b)  During any period of 48 24 months since the filing

11  of the original license application, the agent was not

12  appointed, unless in the case of individuals the failure to be

13  so appointed was due to military service, in which event the

14  period within which a new application is not required may, in

15  the discretion of the Department of Insurance, be extended for

16  12 months following the date of discharge from military

17  service if the military service does not exceed 3 years, but

18  in no event shall the period be extended under this clause for

19  a period of more than 6 4 years from the date of filing the

20  original application.

21         (2)  The department shall not charge a fee for filing

22  an application for license with respect to any applicant for

23  license who is exempted under this section from filing an

24  application.

25         (3)  Upon the expiration or termination of a title

26  insurance agent's appointment, the title insurance agent is

27  without authority conferred by the license and shall not

28  engage or attempt to engage in any activity requiring a title

29  insurance agent's license and appointment.  The agent shall

30  not again be granted an appointment until he or she fully

31  qualifies therefor as provided in this chapter.  An


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  1  application shall be required in all cases for qualification

  2  of a new title insurance agent's license when application is

  3  made after the expiration of 4 2 years from the date of the

  4  expiration or termination of the last appointment held by a

  5  licensee.

  6         Section 17.  Section 626.856, Florida Statutes, is

  7  amended to read:

  8         626.856  "Company employee adjuster" defined.--A

  9  "company employee adjuster" is a person employed on an

10  insurer's staff of adjusters or a wholly owned subsidiary of

11  the insurer, and who undertakes on behalf of such insurer or

12  other insurers under common control or ownership to ascertain

13  and determine the amount of any claim, loss, or damage payable

14  under a contract of insurance, or undertakes to effect

15  settlement of such claim, loss, or damage.

16         Section 18.  Subsection (3) of section 626.872, Florida

17  Statutes, is amended to read:

18         626.872  Temporary license.--

19         (3)  In no event shall An adjuster licensed under this

20  section may not adjust losses in this state after expiration

21  of the temporary license without having been issued passed the

22  written examination as for a regular adjuster's license.

23         Section 19.  Section 626.873, Florida Statutes, is

24  amended to read:

25         626.873  Nonresident adjusters and nonresident company

26  employee adjusters.--

27         (1)  The department shall, upon application therefor,

28  issue a license to an applicant for a nonresident adjuster's

29  license upon determining that the applicant has paid the

30  applicable license fees required under s. 624.501 and:

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  1         (a)  Is a currently licensed insurance adjuster in his

  2  or her home state, if such state requires a license.

  3         (b)  Is an employee of an insurer, or a wholly owned

  4  subsidiary of an insurer, admitted to do business in this

  5  state.

  6         (c)  Has filed a certificate or letter of authorization

  7  from the insurance department of his or her home state, if

  8  such state requires an adjuster to be licensed, stating that

  9  he or she holds a current license or authorization to adjust

10  insurance losses.  Such certificate or authorization must be

11  signed by the insurance commissioner, or his or her deputy, of

12  the adjuster's home state and must reflect whether or not the

13  adjuster has ever had his or her license or authorization in

14  the adjuster's home state suspended or revoked and, if such is

15  the case, the reason for such action.

16         (2)  Any individual who holds a Florida nonresident

17  adjuster's license, upon becoming a resident of this state

18  may, for a period not to exceed 90 days, continue to adjust

19  claims in this state under his or her nonresident license and

20  appointment. Such individual must make application for

21  resident licensure and must become licensed as a resident

22  adjuster within 90 days of becoming a resident of this state.

23         (3)  Upon becoming a resident of this state, an

24  individual who holds a Florida nonresident adjuster's license

25  is no longer eligible for licensure as a nonresident adjuster

26  if such individual fails to make application for a resident

27  license and become licensed as a resident adjuster within 90

28  days.  Such individual may apply for a resident license

29  pursuant to s. 626.865, s. 626.866, or s. 626.867.

30         Section 20.  Subsections (1) and (7) of section

31  626.927, Florida Statutes, are amended to read:


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    2001 Legislature                                CS for SB 2174



  1         626.927  Licensing of surplus lines agent.--

  2         (1)  Any individual while licensed and appointed as a

  3  resident general lines agent as to property, casualty, and

  4  surety insurances, and who is deemed by the department to have

  5  had sufficient experience in the insurance business to be

  6  competent for the purpose, and who, within the 4 years

  7  immediately preceding the date the application was submitted,

  8  has a minimum of 1 year's experience working for a licensed

  9  surplus lines agent or who has successfully completed 60 class

10  hours in surplus and excess lines in a course approved by the

11  department, may be licensed as a surplus lines agent, upon

12  taking and successfully passing a written examination as to

13  surplus lines, as given by the department.

14         (7)  Any individual who has been licensed by the

15  department as a surplus lines agent as provided in this

16  section may be subsequently appointed without additional

17  written examination if his or her application for appointment

18  is filed with the department within 48 24 months next

19  following the date of cancellation or expiration of the prior

20  appointment.  The department may, in its discretion, require

21  any individual to take and successfully pass an examination as

22  for original issuance of license as a condition precedent to

23  the reinstatement or continuation of the licensee's current

24  license or reinstatement or continuation of the licensee's

25  appointment.

26         Section 21.  Section 626.9531, Florida Statutes, is

27  created to read:

28         626.9531  Identification of insurers, agents, and

29  insurance contracts.--Advertising materials and other

30  communications developed by insurers regarding insurance

31  products shall clearly indicate that the communication relates


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    2001 Legislature                                CS for SB 2174



  1  to insurance products. When soliciting or selling insurance

  2  products, agents shall clearly indicate to prospective

  3  insureds that they are acting as insurance agents with regard

  4  to insurance products and identified insurers.

  5         Section 22.  Section 648.315, Florida Statutes, is

  6  amended to read:

  7         648.315  Number of applications for licensure

  8  required.--After a license as a bail bond agent has been

  9  issued to an individual, the same individual is not required

10  to file another application for a similar license unless:

11         (1)  Specifically ordered by the department to complete

12  a new application; or

13         (2)  A period of 48 24 months transpires between the

14  time the licensee's last limited surety agent or professional

15  bail bond agent's appointment is terminated and the date an

16  application for a similar appointment is received by the

17  department.

18         Section 23.  Subsection (10) of section 648.38, Florida

19  Statutes, is amended to read:

20         648.38  Licensure examination for bail bond agents;

21  time; place; fees; scope.--

22         (10)  Any bail bond agent who successfully passes an

23  examination and is subsequently licensed as a bail bond agent

24  must be appointed within 48 24 months after the date of

25  licensure or be subject to another examination unless failure

26  to be so appointed was due to military service, in which case

27  the period of time in which another examination is not

28  required may, in the department's discretion, be extended to

29  12 months following the date of discharge from military

30  service, if the military service does not exceed 3 years.  An

31


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  1  extension of more than 6 4 years may not be granted under this

  2  subsection.

  3         Section 24.  Subsection (2) of section 648.384, Florida

  4  Statutes, is amended to read:

  5         648.384  Effect of expiration of appointment; bail bond

  6  agents and runners.--

  7         (2)  If a bail bond agent fails to maintain an

  8  appointment with an insurer or if a runner fails to maintain

  9  an appointment with an insurer, managing general agent, or

10  bail bond agent during any 48-month 24-month period, the bail

11  bond agent or runner may not be granted a reappointment until

12  he or she qualifies as a first-time applicant.

13         Section 25.  Section 626.9651, Florida Statutes, is

14  created to read:

15         626.9651  Privacy.--The department shall adopt rules

16  consistent with other provisions of the Florida Insurance Code

17  to govern the use of a consumer's nonpublic personal financial

18  and health information. These rules must be based on,

19  consistent with, and not more restrictive than the Privacy of

20  Consumer Financial and Health Information Regulation, adopted

21  September 26, 2000, by the National Association of Insurance

22  Commissioners; however, the rules must permit the use and

23  disclosure of nonpublic personal health information for

24  scientific, medical, or public policy research, in accordance

25  with federal law. In addition, these rules must be consistent

26  with, and not more restrictive than, the standards contained

27  in Title V of the Gramm-Leach-Bliley Act of 1999, Pub. L. No.

28  106-102. If the department determines that a health insurer or

29  health maintenance organization is in compliance with, or is

30  actively undertaking compliance with, the consumer privacy

31  protection rules adopted by the United States Department of


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    2001 Legislature                                CS for SB 2174



  1  Health and Human Services, in conformance with the Health

  2  Insurance Portability and Affordability Act, that health

  3  insurer or health maintenance organization is in compliance

  4  with this section.

  5         Section 26.  This act shall take effect July 1, 2001.

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