House Bill hb0309

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    Florida House of Representatives - 2001                 HB 309

        By Representative Crow






  1                      A bill to be entitled

  2         An act relating to surplus lines insurance;

  3         amending ss. 626.923, 626.930, 626.931,

  4         626.932, 626.933, 626.935, 626.936, 626.9361,

  5         and 626.938, F.S.; revising certain

  6         requirements for surplus lines insurance to

  7         provide the Florida Surplus Lines Service

  8         Office with the same authority granted to the

  9         Department of Insurance; revising certain

10         quarterly reporting requirements; providing for

11         collection of a service fee; providing a

12         penalty for failure to make certain reports and

13         pay service fees; providing for an

14         administrative fine for such failure; providing

15         for disposition of surplus lines taxes and

16         service fees; providing an effective date.

17

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

19

20         Section 1.  Section 626.923, Florida Statutes, is

21  amended to read:

22         626.923  Filing copy of policy or certificate.--A

23  surplus lines agent shall, within 30 days after the date of a

24  request by the department or the Florida Surplus Lines Service

25  Office, furnish the department an exact copy of any and all

26  requested policies, including applications, certificates,

27  cover notes, or other forms of confirmation of insurance

28  coverage or any substitutions thereof or endorsements thereto.

29  The department or the Florida Surplus Lines Service Office may

30  also request and the agent shall furnish, within 30 days after

31  the date of the request, the agent's memorandum as to the

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  1  substance of any change represented by a substitute

  2  certificate, cover note, other form of confirmation of

  3  insurance coverage, or endorsement as compared with the

  4  coverage as originally placed or issued.

  5         Section 2.  Subsection (2) of section 626.930, Florida

  6  Statutes, is amended to read:

  7         626.930  Records of surplus lines agent.--

  8         (2)  The record shall at all times be open to

  9  examination by the department or the Florida Surplus Lines

10  Service Office without notice and shall be so kept available

11  and open to the department for 5 years next following

12  expiration or cancellation of the contract.

13         Section 3.  Section 626.931, Florida Statutes, is

14  amended to read:

15         626.931  Agent affidavit and insurer reporting

16  requirements Quarterly report.--

17         (1)  Each surplus lines agent shall on or before the

18  end of the month next following each calendar quarter file

19  with the Florida Surplus Lines Service Office an affidavit, on

20  forms as prescribed and furnished by the Florida Surplus Lines

21  Service Office, stating that a verified report of all surplus

22  lines insurance transacted by him or her during such calendar

23  quarter has been submitted to the Florida Surplus Lines

24  Service Office as required.

25         (2)  The reports and supporting information shall be in

26  a computer-readable format as determined by the department or

27  shall be submitted on forms prescribed by the department and

28  shall show:

29         (a)  Aggregate gross premiums charged;

30         (b)  Aggregate of returned premiums and taxes paid to

31  insureds;

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  1         (c)  Aggregate of net premiums;

  2         (d)  A listing of all policies, certificates, cover

  3  notes, or other forms of confirmation of insurance coverage or

  4  any substitutions thereof or endorsements thereto; and

  5         (e)  Additional information as required by the

  6  department.

  7         (2)(3)  The report shall include The affidavit of the

  8  surplus lines agent shall include, on forms as prescribed and

  9  furnished by the department, as to efforts made to place

10  coverages with authorized insurers and the results thereof.

11         (3)(4)  Each foreign insurer accepting premiums which

12  are subject to taxes and which are described in this section

13  shall, on or before the end of the month following each

14  calendar quarter, file with the Florida Surplus Lines Service

15  Office a verified report of all surplus lines insurance

16  transacted by such insurer for insurance risks located in this

17  state during such calendar quarter.

18         (4)(5)  Each alien insurer accepting premiums which are

19  subject to taxes and which are described in this section

20  shall, on or before June 30 of each year, file with the

21  Florida Surplus Lines Service Office a verified report of all

22  surplus lines insurance transacted by such insurer for

23  insurance risks located in this state during the preceding

24  calendar year, provided the first such report shall be with

25  respect to calendar year 1994.

26         (5)(6)  The Insurance Commissioner shall have the

27  authority to waive the filing requirements described in

28  subsections (3)(4) and (4)(5).

29         (6)(7)  Each insurer's report and supporting

30  information shall be in a computer-readable format as

31  determined by the Florida Surplus Lines Service Office

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  1  department or shall be submitted on forms prescribed by the

  2  Florida Surplus Lines Service Office department and shall show

  3  for each applicable agent:

  4         (a)  The aggregate gross Florida premiums charged;

  5         (b)  The aggregate of returned Florida premiums;

  6         (c)  The aggregate of net Florida premiums;

  7         (a)(d)  A listing of all policies, certificates, cover

  8  notes, or other forms of confirmation of insurance coverage or

  9  any substitutions thereof or endorsements thereto and the

10  identifying number; and

11         (b)(e)  Any additional information required by the

12  department or Florida Surplus Lines Service Office.

13         Section 4.  Paragraph (a) of subsection (2) of section

14  626.932, Florida Statutes, is amended to read:

15         626.932  Surplus lines tax.--

16         (2)(a)  The surplus lines agent shall make payable pay

17  to the Department of Insurance Florida Surplus Lines Service

18  Office the tax related to each calendar quarter's business as

19  reported to the Florida Surplus Lines Service Office, and

20  remit the tax to the Florida Surplus Lines Service Office at

21  the same time as provided for the filing of the quarterly

22  affidavit report, under s. 626.931. The Florida Surplus Lines

23  Service Office shall forward to the department the taxes and

24  any interest collected pursuant to paragraph (b), within 10

25  days of receipt, along with a copy of the quarterly reports

26  received.

27         Section 5.  Section 626.933, Florida Statutes, is

28  amended to read:

29         626.933  Collection of tax and service fee.--If the tax

30  or service fee payable by a surplus lines agent under this

31  Surplus Lines Law is not so paid within the time prescribed,

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  1  the same shall be recoverable in a suit brought by the

  2  department against the surplus lines agent and the surety or

  3  sureties on the bond filed by the surplus lines agent under s.

  4  626.928.

  5         Section 6.  Paragraphs (d) and (e) of subsection (1) of

  6  section 626.935, Florida Statutes, are amended to read:

  7         626.935  Suspension, revocation, or refusal of surplus

  8  lines agent's license.--

  9         (1)  The department shall deny an application for,

10  suspend, revoke, or refuse to renew the appointment of a

11  surplus lines agent and all other licenses and appointments

12  held by the licensee under this code, upon any of the

13  following grounds:

14         (d)  Failure to make and file his or her affidavit or

15  quarterly reports when due as required by s. 626.931.

16         (e)  Failure to pay the tax or service fee on surplus

17  lines premiums, as provided for in this Surplus Lines Law.

18         Section 7.  Section 626.936, Florida Statutes, is

19  amended to read:

20         626.936  Failure to file reports report or pay tax or

21  service fee; administrative penalty.--

22         (1)  Any licensed surplus lines agent who neglects to

23  file a quarterly report or an affidavit in the form and within

24  the time required or provided for in the Surplus Lines Law may

25  be fined up to $50 per day for each day the neglect continues,

26  beginning the day after the quarterly report or affidavit was

27  due until the date the report or affidavit is received by the

28  department.  The department shall deposit All sums collected

29  by it under this section shall be deposited into the Insurance

30  Commissioner's Regulatory Trust Fund.

31

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  1         (2)  Any licensed surplus lines agent who neglects to

  2  pay the taxes or service fees as required under the Surplus

  3  Lines Law and within the time required may be fined up to $500

  4  per day for each day the failure to pay continues, beginning

  5  the day after the tax or service fees were was due. The agent

  6  shall pay interest on the amount of any delinquent tax due, at

  7  the rate of 9 percent per year, compounded annually, beginning

  8  the day the amount becomes delinquent.  The department shall

  9  deposit all sums collected by it under this section into the

10  Insurance Commissioner's Regulatory Trust Fund.

11         Section 8.  Section 626.9361, Florida Statutes, is

12  amended to read:

13         626.9361  Failure to file report; administrative

14  penalty.--Any eligible surplus lines insurer who fails to file

15  a quarterly report in the form and within the time required or

16  provided for in the Surplus Lines Law may be fined up to $500

17  per day for each day such failure continues, beginning the day

18  after the report was due, until the date the report is

19  received by the department.  Failure to file a quarterly

20  report may also result in withdrawal of eligibility as a

21  surplus lines insurer in this state. All sums collected by the

22  department under this section shall be deposited into the

23  Insurance Commissioner's Regulatory Trust Fund.

24         Section 9.  Subsections (1), (3), (4), and (10) of

25  section 626.938, Florida Statutes, are amended to read:

26         626.938  Report and tax of Independently procured

27  coverages.--

28         (1)  Every insured who in this state procures or causes

29  to be procured or continues or renews insurance with an

30  unauthorized foreign or alien insurer, or any self-insurer who

31  in this state so procures or continues excess loss,

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  1  catastrophe, or other insurance, upon a subject of insurance

  2  resident, located, or to be performed within this state, other

  3  than insurance procured through a surplus lines agent pursuant

  4  to the Surplus Lines Law of this state or exempted from tax

  5  under s. 626.932(4), shall, within 30 days after the date such

  6  insurance was so procured, continued, or renewed, file a

  7  report of the same with the Florida Surplus Lines Service

  8  Office department in writing and upon forms designated by the

  9  Florida Surplus Lines Service Office department and furnished

10  to such an insured upon request, or in a computer-readable

11  format as determined by the Florida Surplus Lines Service

12  Office. The report shall show the name and address of the

13  insured or insureds, the name and address of the insurer, the

14  subject of the insurance, a general description of the

15  coverage, the amount of premium currently charged therefor,

16  and such additional pertinent information as is reasonably

17  requested by the Florida Surplus Lines Service Office

18  department.

19         (3)  For the general support of the government of this

20  state, there is levied upon the obligation, chose in action,

21  or right represented by the premium charged for such insurance

22  a tax at the rate of 5 percent of the gross amount of such

23  premium and a 0.3 percent service fee pursuant to s. 626.9325.

24  The insured shall withhold the amount of the tax and service

25  fee from the amount of premium charged by and otherwise

26  payable to the insurer for such insurance.; and, Within 30

27  days after the insurance is was so procured, continued, or

28  renewed, and simultaneously coincidentally with the filing of

29  the report provided for in subsection (1) with the Florida

30  Surplus Lines Service Office department of the report provided

31  for in subsection (1), the insured shall make payable to the

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  1  Department of Insurance pay the amount of the tax and make

  2  payable to the Florida Surplus Lines Service Office the amount

  3  of the service fee. The insured shall remit the tax and the

  4  service fee to the Florida Surplus Lines Service Office

  5  department. The Florida Surplus Lines Service Office shall

  6  forward to the department the taxes, and any interest

  7  collected pursuant to subsection (5), within 10 days after

  8  receipt.

  9         (4)  If the insured fails to withhold from the premium

10  the amount of tax and the service fee herein levied, the

11  insured shall be liable for the amount thereof and shall pay

12  that amount the same to the Florida Surplus Lines Service

13  Office department within the time stated in subsection (3).

14         (10)  Each report and supporting information shall be

15  in a computer-readable format as determined by the Florida

16  Surplus Lines Service Office department or shall be submitted

17  on forms prescribed by the Florida Surplus Lines Service

18  Office department.

19         Section 10.  This act shall take effect upon becoming a

20  law.

21

22            *****************************************

23                          HOUSE SUMMARY

24
      Revises requirements for surplus lines insurance to
25    provide the Florida Surplus Lines Service Office with the
      same authority granted to the Department of Insurance.
26    Revises quarterly reporting requirements. Provides for
      collection of a service fee. Provides a penalty for
27    failure to make required reports and pay service fees and
      provides for an administrative fine for such failure.
28    Provides for disposition of surplus lines taxes and
      service fees. See bill for details.
29

30

31

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