House Bill hb1319
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Florida House of Representatives - 2002 HB 1319
By Representative Alexander
1 A bill to be entitled
2 An act relating to communications equipment
3 property insurance; amending s. 626.321, F.S.;
4 authorizing licensing of communications
5 equipment property insurance agents; providing
6 criteria; providing a definition; amending ss.
7 626.221 and 626.732, F.S., to conform;
8 providing an effective date.
9
10 Be It Enacted by the Legislature of the State of Florida:
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12 Section 1. Paragraph (b) of subsection (2) of section
13 626.221, Florida Statutes, is amended to read:
14 626.221 Examination requirement; exemptions.--
15 (2) However, no such examination shall be necessary in
16 any of the following cases:
17 (b) An applicant for limited license as agent for
18 personal accident insurance, baggage and motor vehicle excess
19 liability insurance, credit life or disability insurance,
20 credit insurance, credit property insurance, or in-transit and
21 storage personal property insurance, or communications
22 equipment property insurance.
23 Section 2. Subsections (1) and (3) of section 626.321,
24 Florida Statutes, are amended to read:
25 626.321 Limited licenses.--
26 (1) The department shall issue to a qualified
27 individual, or a qualified individual or entity under
28 paragraphs (c), (d), and (e), and (j), a license as agent
29 authorized to transact a limited class of business in any of
30 the following categories:
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1 (a) Motor vehicle physical damage and mechanical
2 breakdown insurance.--License covering insurance against only
3 the loss of or damage to any motor vehicle which is designed
4 for use upon a highway, including trailers and semitrailers
5 designed for use with such vehicles. Such license also covers
6 insurance against the failure of an original or replacement
7 part to perform any function for which it was designed. The
8 applicant for such a license shall pass a written examination
9 covering motor vehicle physical damage insurance and
10 mechanical breakdown insurance. No individual while so
11 licensed shall hold a license as an agent or solicitor as to
12 any other or additional kind or class of insurance coverage
13 except as to a limited license for credit life and disability
14 insurances as provided in paragraph (e).
15 (b) Industrial fire insurance or burglary
16 insurance.--License covering only industrial fire insurance or
17 burglary insurance. The applicant for such a license shall
18 pass a written examination covering such insurance. No
19 individual while so licensed shall hold a license as an agent
20 or solicitor as to any other or additional kind or class of
21 insurance coverage except as to life and health insurances.
22 (c) Personal accident insurance.--License covering
23 only policies of personal accident insurance covering the
24 risks of travel, except as provided in subparagraph 2. The
25 license may be issued only:
26 1. To a full-time salaried employee of a common
27 carrier or a full-time salaried employee or owner of a
28 transportation ticket agency and may authorize the sale of
29 such ticket policies only in connection with the sale of
30 transportation tickets, or to the full-time salaried employee
31 of such an agent. No such policy shall be for a duration of
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1 more than 48 hours or for the duration of a specified one-way
2 trip or round trip.
3 2. To a full-time salaried employee of a business
4 which offers motor vehicles for rent or lease, or to a
5 business office of a business which offers motor vehicles for
6 rent or lease if insurance sales activities authorized by the
7 license are limited to full-time salaried employees. A
8 business office licensed or a person licensed pursuant to this
9 subparagraph may, as an agent of an insurer, transact
10 insurance that provides coverage for accidental personal
11 injury or death of the lessee and any passenger who is riding
12 or driving with the covered lessee in the rental motor vehicle
13 if the lease or rental agreement is for not more than 30 days,
14 or if the lessee is not provided coverage for more than 30
15 consecutive days per lease period; however, if the lease is
16 extended beyond 30 days, the coverage may be extended one time
17 only for a period not to exceed an additional 30 days.
18 (d) Baggage and motor vehicle excess liability
19 insurance.--
20 1. License covering only insurance of personal effects
21 except as provided in subparagraph 2. The license may be
22 issued only:
23 a. To a full-time salaried employee of a common
24 carrier or a full-time salaried employee or owner of a
25 transportation ticket agency, which person is engaged in the
26 sale or handling of transportation of baggage and personal
27 effects of travelers, and may authorize the sale of such
28 insurance only in connection with such transportation; or
29 b. To the full-time salaried employee of a licensed
30 general lines agent, a full-time salaried employee of a
31 business which offers motor vehicles for rent or lease, or to
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1 a business office of a business which offers motor vehicles
2 for rent or lease if insurance sales activities authorized by
3 the license are limited to full-time salaried employees.
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5 The purchaser of baggage insurance shall be provided written
6 information disclosing that the insured's homeowner's policy
7 may provide coverage for loss of personal effects and that the
8 purchase of such insurance is not required in connection with
9 the purchase of tickets or in connection with the lease or
10 rental of a motor vehicle.
11 2. A business office licensed pursuant to subparagraph
12 1., or a person licensed pursuant to subparagraph 1. who is a
13 full-time salaried employee of a business which offers motor
14 vehicles for rent or lease, may include lessees under a master
15 contract providing coverage to the lessor or may transact
16 excess motor vehicle liability insurance providing coverage in
17 excess of the standard liability limits provided by the lessor
18 in its lease to a person renting or leasing a motor vehicle
19 from the licensee's employer for liability arising in
20 connection with the negligent operation of the leased or
21 rented motor vehicle, provided that the lease or rental
22 agreement is for not more than 30 days; that the lessee is not
23 provided coverage for more than 30 consecutive days per lease
24 period, and, if the lease is extended beyond 30 days, the
25 coverage may be extended one time only for a period not to
26 exceed an additional 30 days; that the lessee is given written
27 notice that his or her personal insurance policy providing
28 coverage on an owned motor vehicle may provide additional
29 excess coverage; and that the purchase of the insurance is not
30 required in connection with the lease or rental of a motor
31 vehicle. The excess liability insurance may be provided to
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1 the lessee as an additional insured on a policy issued to the
2 licensee's employer.
3 3. A business office licensed pursuant to subparagraph
4 1., or a person licensed pursuant to subparagraph 1. who is a
5 full-time salaried employee of a business which offers motor
6 vehicles for rent or lease, may, as an agent of an insurer,
7 transact insurance that provides coverage for the liability of
8 the lessee to the lessor for damage to the leased or rented
9 motor vehicle if:
10 a. The lease or rental agreement is for not more than
11 30 days; or the lessee is not provided coverage for more than
12 30 consecutive days per lease period, but, if the lease is
13 extended beyond 30 days, the coverage may be extended one time
14 only for a period not to exceed an additional 30 days;
15 b. The lessee is given written notice that his or her
16 personal insurance policy that provides coverage on an owned
17 motor vehicle may provide such coverage with or without a
18 deductible; and
19 c. The purchase of the insurance is not required in
20 connection with the lease or rental of a motor vehicle.
21 (e) Credit life or disability insurance.--License
22 covering only credit life or disability insurance. The license
23 may be issued only to an individual employed by a life or
24 health insurer as an officer or other salaried or commissioned
25 representative, to an individual employed by or associated
26 with a lending or financial institution or creditor, or to a
27 lending or financial institution or creditor, and may
28 authorize the sale of such insurance only with respect to
29 borrowers or debtors of such lending or financing institution
30 or creditor. However, only the individual or entity whose tax
31 identification number is used in receiving or is credited with
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1 receiving the commission from the sale of such insurance shall
2 be the licensed agent of the insurer. No individual while so
3 licensed shall hold a license as an agent or solicitor as to
4 any other or additional kind or class of life or health
5 insurance coverage. An entity holding a limited license under
6 this paragraph is also authorized to sell credit insurance and
7 credit property insurance. An entity applying for a license
8 under this section:
9 1. Is required to submit only one application for a
10 license under s. 626.171. The requirements of s. 626.171(5)
11 shall only apply to the officers and directors of the entity
12 submitting the application.
13 2. Is required to obtain a license for each office,
14 branch office, or place of business making use of the entity's
15 business name by applying to the department for the license on
16 a simplified form developed by rule of the department for this
17 purpose.
18 3. Is not required to pay any additional application
19 fees for a license issued to the offices or places of business
20 referenced in subsection (2), but is required to pay the
21 license fee as prescribed in s. 624.501, be appointed under s.
22 626.112, and pay the prescribed appointment fee under s.
23 624.501. The license obtained under this paragraph shall be
24 posted at the business location for which it was issued so as
25 to be readily visible to prospective purchasers of such
26 coverage.
27 (f) Credit insurance.--License covering only credit
28 insurance, as such insurance is defined in s. 624.605(1)(i),
29 and no individual or entity so licensed shall, during the same
30 period, hold a license as an agent or solicitor as to any
31 other or additional kind of life or health insurance with the
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1 exception of credit life or disability insurance as defined in
2 paragraph (e). The same licensing provisions as outlined in
3 paragraph (e) apply to entities licensed as credit insurance
4 agents under this paragraph.
5 (g) Credit property insurance.--A license covering
6 only credit property insurance may be issued to any individual
7 except an individual employed by or associated with a lending
8 or financial institution defined in s. 655.005(1)(g), (h), or
9 (p) and authorized to sell such insurance only with respect to
10 a borrower or debtor, not to exceed the amount of the loan.
11 (h) Crop hail and multiple-peril crop
12 insurance.--License covering only crop hail and multiple-peril
13 crop insurance. Notwithstanding any other provision of law,
14 the limited license may be issued to a bona fide salaried
15 employee of an association chartered under the Farm Credit Act
16 of 1971, 12 U.S.C. ss. 2001 et seq., who satisfactorily
17 completes the examination prescribed by the department
18 pursuant to s. 626.241(5). The limited agent must be appointed
19 by, and his or her limited license requested by, a licensed
20 general lines agent. All business transacted by the limited
21 agent shall be in behalf of, in the name of, and countersigned
22 by the agent by whom he or she is appointed. Sections 626.561
23 and 626.748, relating to records, apply to all business
24 written pursuant to this section. The limited licensee may be
25 appointed by and licensed for only one general lines agent or
26 agency.
27 (i) In-transit and storage personal property
28 insurance.--A license covering only the insurance of personal
29 property not held for resale, covering the risks of
30 transportation or storage in rented or leased motor vehicles,
31 trailers, or self-service storage facilities, as the latter
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1 are defined in s. 83.803, may be issued, without examination,
2 only to employees or authorized representatives of lessors who
3 rent or lease motor vehicles, trailers, or self-service
4 storage facilities and who are authorized by an insurer to
5 issue certificates or other evidences of insurance to lessees
6 of such motor vehicles, trailers, or self-service storage
7 facilities under an insurance policy issued to the lessor. A
8 person licensed under this paragraph shall give a prospective
9 purchaser of in-transit or storage personal property insurance
10 written notice that his or her homeowner's policy may provide
11 coverage for the loss of personal property and that the
12 purchase of such insurance is not required under the lease
13 terms.
14 (j) Communications equipment property
15 insurance.--License covering only communications equipment,
16 for insurance covering the loss, theft, mechanical failure, or
17 malfunction of or damage to communications equipment. The
18 license may be issued only to employees or authorized
19 representatives of a licensed general lines agent, to each
20 business location of a retail vendor of communications
21 equipment, or to employees or authorized representatives of a
22 retail vendor of communications equipment and may authorize
23 the sale of such policies only in connection with the sale of,
24 or provision of monthly communications service for,
25 communications equipment. Licensees offering policies under
26 this section must receive initial training from, and must be
27 under the continued supervision of, a general lines agent
28 licensed pursuant to this part. For purposes of this
29 paragraph, the term "communications equipment" means handsets,
30 pagers, personal digital assistants, portable computers,
31 automatic answering devices, batteries, and other devices or
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1 their accessories used to originate or receive communications
2 signals or service, and includes services related to the use
3 of such devices such as access to a wireless network. For
4 purposes of this chapter, communications equipment property
5 insurance is a type of inland marine insurance.
6 (3) Except as otherwise expressly provided, an
7 individual applying for or holding a limited license shall be
8 subject to the same applicable requirements and
9 responsibilities as apply to general lines agents in general,
10 if licensed as to motor vehicle physical damage and mechanical
11 breakdown insurance, credit property insurance, industrial
12 fire insurance or burglary insurance, in-transit and storage
13 personal property insurance, baggage and motor vehicle excess
14 liability insurance, or credit insurance, or communications
15 equipment property insurance; or as apply to life agents or
16 health agents in general, as the case may be, if licensed as
17 to personal accident insurance or credit life or credit
18 disability insurance.
19 Section 3. Subsection (1) of section 626.732, Florida
20 Statutes, is amended to read:
21 626.732 Requirement as to knowledge, experience, or
22 instruction.--
23 (1) Except as provided in subsection (3), no applicant
24 for a license as a general lines agent, except for a chartered
25 property and casualty underwriter (CPCU), other than as to a
26 limited license as to baggage and motor vehicle excess
27 liability insurance, credit property insurance, credit
28 insurance, or in-transit and storage personal property
29 insurance, or communications equipment property insurance,
30 shall be qualified or licensed unless within the 4 years
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1 immediately preceding the date the application for license is
2 filed with the department the applicant has:
3 (a) Taught or successfully completed classroom courses
4 in insurance satisfactory to the department at a school,
5 college, or extension division thereof, approved by the
6 department;
7 (b) Completed a correspondence course in insurance
8 satisfactory to the department and regularly offered by
9 accredited institutions of higher learning in this state and,
10 except if he or she is applying for a limited license under s.
11 626.321, has had at least 6 months of responsible insurance
12 duties as a substantially full-time bona fide employee in all
13 lines of property and casualty insurance set forth in s.
14 626.041(1); or
15 (c) Completed at least 1 year in responsible insurance
16 duties as a substantially full-time bona fide employee in all
17 lines of property and casualty insurance, exclusive of
18 aviation and wet marine and transportation insurances but not
19 exclusive of boats of less than 36 feet in length or aircraft
20 not held out for hire, as set forth in s. 626.041(1), without
21 the education requirement mentioned in paragraph (a) or
22 paragraph (b).
23 Section 4. This act shall take effect upon becoming a
24 law.
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27 HOUSE SUMMARY
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Authorizes licensing of communications equipment property
29 insurance agents. See bill for details.
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