Senate Bill sb1994c1

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    Florida Senate - 2002                           CS for SB 1994

    By the Committee on Banking and Insurance; and Senator Latvala





    311-2076-02

  1                      A bill to be entitled

  2         An act relating to insurance; amending s.

  3         626.221, F.S.; exempting applicants for limited

  4         licenses for communication equipment property

  5         or communication equipment inland marine

  6         insurance from certain examination

  7         requirements; amending s. 626.321, F.S.;

  8         providing for the issuance of such limited

  9         licenses; amending s. 626.732, F.S.; exempting

10         such limited licensees from certain education

11         requirements; providing an effective date.

12

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

14

15         Section 1.  Paragraph (b) of subsection (2) of section

16  626.221, Florida Statutes, is amended to read:

17         626.221  Examination requirement; exemptions.--

18         (2)  However, no such examination shall be necessary in

19  any of the following cases:

20         (b)  An applicant for limited license as agent for

21  personal accident insurance, baggage and motor vehicle excess

22  liability insurance, credit life or disability insurance,

23  credit insurance, credit property insurance, or in-transit and

24  storage personal property insurance, or communications

25  equipment property insurance or communication equipment inland

26  marine insurance.

27         Section 2.  Subsections (1) and (3) of section 626.321,

28  Florida Statutes, are amended to read:

29         626.321  Limited licenses.--

30         (1)  The department shall issue to a qualified

31  individual, or a qualified individual or entity under

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    Florida Senate - 2002                           CS for SB 1994
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  1  paragraphs (c), (d), and (e), and (i), a license as agent

  2  authorized to transact a limited class of business in any of

  3  the following categories:

  4         (a)  Motor vehicle physical damage and mechanical

  5  breakdown insurance.--License covering insurance against only

  6  the loss of or damage to any motor vehicle which is designed

  7  for use upon a highway, including trailers and semitrailers

  8  designed for use with such vehicles. Such license also covers

  9  insurance against the failure of an original or replacement

10  part to perform any function for which it was designed.  The

11  applicant for such a license shall pass a written examination

12  covering motor vehicle physical damage insurance and

13  mechanical breakdown insurance.  No individual while so

14  licensed shall hold a license as an agent or solicitor as to

15  any other or additional kind or class of insurance coverage

16  except as to a limited license for credit life and disability

17  insurances as provided in paragraph (e).

18         (b)  Industrial fire insurance or burglary

19  insurance.--License covering only industrial fire insurance or

20  burglary insurance.  The applicant for such a license shall

21  pass a written examination covering such insurance.  No

22  individual while so licensed shall hold a license as an agent

23  or solicitor as to any other or additional kind or class of

24  insurance coverage except as to life and health insurances.

25         (c)  Personal accident insurance.--License covering

26  only policies of personal accident insurance covering the

27  risks of travel, except as provided in subparagraph 2.  The

28  license may be issued only:

29         1.  To a full-time salaried employee of a common

30  carrier or a full-time salaried employee or owner of a

31  transportation ticket agency and may authorize the sale of

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    Florida Senate - 2002                           CS for SB 1994
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  1  such ticket policies only in connection with the sale of

  2  transportation tickets, or to the full-time salaried employee

  3  of such an agent.  No such policy shall be for a duration of

  4  more than 48 hours or for the duration of a specified one-way

  5  trip or round trip.

  6         2.  To a full-time salaried employee of a business

  7  which offers motor vehicles for rent or lease, or to a

  8  business office of a business which offers motor vehicles for

  9  rent or lease if insurance sales activities authorized by the

10  license are limited to full-time salaried employees.  A

11  business office licensed or a person licensed pursuant to this

12  subparagraph may, as an agent of an insurer, transact

13  insurance that provides coverage for accidental personal

14  injury or death of the lessee and any passenger who is riding

15  or driving with the covered lessee in the rental motor vehicle

16  if the lease or rental agreement is for not more than 30 days,

17  or if the lessee is not provided coverage for more than 30

18  consecutive days per lease period; however, if the lease is

19  extended beyond 30 days, the coverage may be extended one time

20  only for a period not to exceed an additional 30 days.

21         (d)  Baggage and motor vehicle excess liability

22  insurance.--

23         1.  License covering only insurance of personal effects

24  except as provided in subparagraph 2.  The license may be

25  issued only:

26         a.  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, which person is engaged in the

29  sale or handling of transportation of baggage and personal

30  effects of travelers, and may authorize the sale of such

31  insurance only in connection with such transportation; or

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    Florida Senate - 2002                           CS for SB 1994
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  1         b.  To the full-time salaried employee of a licensed

  2  general lines agent, a full-time salaried employee of a

  3  business which offers motor vehicles for rent or lease, or to

  4  a business office of a business which offers motor vehicles

  5  for rent or lease if insurance sales activities authorized by

  6  the license are limited to full-time salaried employees.

  7

  8  The purchaser of baggage insurance shall be provided written

  9  information disclosing that the insured's homeowner's policy

10  may provide coverage for loss of personal effects and that the

11  purchase of such insurance is not required in connection with

12  the purchase of tickets or in connection with the lease or

13  rental of a motor vehicle.

14         2.  A business office licensed pursuant to subparagraph

15  1., or a person licensed pursuant to subparagraph 1. who is a

16  full-time salaried employee of a business which offers motor

17  vehicles for rent or lease, may include lessees under a master

18  contract providing coverage to the lessor or may transact

19  excess motor vehicle liability insurance providing coverage in

20  excess of the standard liability limits provided by the lessor

21  in its lease to a person renting or leasing a motor vehicle

22  from the licensee's employer for liability arising in

23  connection with the negligent operation of the leased or

24  rented motor vehicle, provided that the lease or rental

25  agreement is for not more than 30 days; that the lessee is not

26  provided coverage for more than 30 consecutive days per lease

27  period, and, if the lease is extended beyond 30 days, the

28  coverage may be extended one time only for a period not to

29  exceed an additional 30 days; that the lessee is given written

30  notice that his or her personal insurance policy providing

31  coverage on an owned motor vehicle may provide additional

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    Florida Senate - 2002                           CS for SB 1994
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  1  excess coverage; and that the purchase of the insurance is not

  2  required in connection with the lease or rental of a motor

  3  vehicle.  The excess liability insurance may be provided to

  4  the lessee as an additional insured on a policy issued to the

  5  licensee's employer.

  6         3.  A business office licensed pursuant to subparagraph

  7  1., or a person licensed pursuant to subparagraph 1. who is a

  8  full-time salaried employee of a business which offers motor

  9  vehicles for rent or lease, may, as an agent of an insurer,

10  transact insurance that provides coverage for the liability of

11  the lessee to the lessor for damage to the leased or rented

12  motor vehicle if:

13         a.  The lease or rental agreement is for not more than

14  30 days; or the lessee is not provided coverage for more than

15  30 consecutive days per lease period, but, 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         b.  The lessee is given written notice that his or her

19  personal insurance policy that provides coverage on an owned

20  motor vehicle may provide such coverage with or without a

21  deductible; and

22         c.  The purchase of the insurance is not required in

23  connection with the lease or rental of a motor vehicle.

24         (e)  Credit life or disability insurance.--License

25  covering only credit life or disability insurance. The license

26  may be issued only to an individual employed by a life or

27  health insurer as an officer or other salaried or commissioned

28  representative, to an individual employed by or associated

29  with a lending or financial institution or creditor, or to a

30  lending or financial institution or creditor, and may

31  authorize the sale of such insurance only with respect to

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    Florida Senate - 2002                           CS for SB 1994
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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 holding a limited license under

  9  this paragraph is also authorized to sell credit insurance and

10  credit property insurance. An entity applying for a license

11  under this section:

12         1.  Is required to submit only one application for a

13  license under s. 626.171. The requirements of s. 626.171(5)

14  shall only apply to the officers and directors of the entity

15  submitting the application.

16         2.  Is required to obtain a license for each office,

17  branch office, or place of business making use of the entity's

18  business name by applying to the department for the license on

19  a simplified form developed by rule of the department for this

20  purpose.

21         3.  Is not required to pay any additional application

22  fees for a license issued to the offices or places of business

23  referenced in subsection (2), but is required to pay the

24  license fee as prescribed in s. 624.501, be appointed under s.

25  626.112, and pay the prescribed appointment fee under s.

26  624.501. The license obtained under this paragraph shall be

27  posted at the business location for which it was issued so as

28  to be readily visible to prospective purchasers of such

29  coverage.

30         (f)  Credit insurance.--License covering only credit

31  insurance, as such insurance is defined in s. 624.605(1)(i),

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    Florida Senate - 2002                           CS for SB 1994
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  1  and no individual or entity so licensed shall, during the same

  2  period, hold a license as an agent or solicitor as to any

  3  other or additional kind of life or health insurance with the

  4  exception of credit life or disability insurance as defined in

  5  paragraph (e). The same licensing provisions as outlined in

  6  paragraph (e) apply to entities licensed as credit insurance

  7  agents under this paragraph.

  8         (g)  Credit property insurance.--A license covering

  9  only credit property insurance may be issued to any individual

10  except an individual employed by or associated with a lending

11  or financial institution defined in s. 655.005(1)(g), (h), or

12  (p) and authorized to sell such insurance only with respect to

13  a borrower or debtor, not to exceed the amount of the loan.

14         (h)  Crop hail and multiple-peril crop

15  insurance.--License covering only crop hail and multiple-peril

16  crop insurance.  Notwithstanding any other provision of law,

17  the limited license may be issued to a bona fide salaried

18  employee of an association chartered under the Farm Credit Act

19  of 1971, 12 U.S.C. ss. 2001 et seq., who satisfactorily

20  completes the examination prescribed by the department

21  pursuant to s. 626.241(5). The limited agent must be appointed

22  by, and his or her limited license requested by, a licensed

23  general lines agent.  All business transacted by the limited

24  agent shall be in behalf of, in the name of, and countersigned

25  by the agent by whom he or she is appointed. Sections 626.561

26  and 626.748, relating to records, apply to all business

27  written pursuant to this section.  The limited licensee may be

28  appointed by and licensed for only one general lines agent or

29  agency.

30

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    Florida Senate - 2002                           CS for SB 1994
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  1         (i)  In-transit and storage personal property

  2  insurance; communications equipment property insurance or

  3  communications equipment inland marine insurance.--

  4         1.  A license covering only the insurance of personal

  5  property not held for resale, covering the risks of

  6  transportation or storage in rented or leased motor vehicles,

  7  trailers, or self-service storage facilities, as the latter

  8  are defined in s. 83.803, may be issued, without examination,

  9  only to employees or authorized representatives of lessors who

10  rent or lease motor vehicles, trailers, or self-service

11  storage facilities and who are authorized by an insurer to

12  issue certificates or other evidences of insurance to lessees

13  of such motor vehicles, trailers, or self-service storage

14  facilities under an insurance policy issued to the lessor. A

15  person licensed under this paragraph shall give a prospective

16  purchaser of in-transit or storage personal property insurance

17  written notice that his or her homeowner's policy may provide

18  coverage for the loss of personal property and that the

19  purchase of such insurance is not required under the lease

20  terms.

21         2.  A license covering only communications equipment,

22  for the loss, theft, mechanical failure, malfunction of or

23  damage to, communications equipment.  The license may be

24  issued only to:

25         a.  Employees or authorized representatives of a

26  licensed general lines agent;

27         b.  Each business location of a retail vendor of

28  communications equipment; or

29         c.  Employees, agents, or authorized representatives of

30  a retail vendor of communications equipment.

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    Florida Senate - 2002                           CS for SB 1994
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  1  The license authorizes the sale of such policies only with

  2  respect to the sale of, or provision of communications service

  3  for, communications equipment. A general lines agent is not

  4  required to obtain a license under this subparagraph to offer

  5  or sell communications equipment property insurance or

  6  communication equipment inland marine insurance.  Licensees

  7  offering policies under this subparagraph must receive initial

  8  training from, and have a contractual relationship with, a

  9  general lines agent. For the purposes of this subparagraph,

10  the term "communications equipment" means handsets, pagers,

11  personal digital assistants, portable computers, automatic

12  answering devices, and other devices or accessories used to

13  originate or receive communications signals or service, and

14  includes services related to the use of such devices, such as

15  consumer access to a wireless network; however, the term does

16  not include telecommunications switching equipment,

17  transmission wires, cell site transceiver equipment, or other

18  equipment and systems used by telecommunications companies to

19  provide telecommunications service to consumers.

20         (2)  The limitations of any license issued under this

21  section shall be expressed therein.  The licensee shall have a

22  separate and additional appointment as to each insurer

23  represented.

24         (3)  Except as otherwise expressly provided, an

25  individual applying for or holding a limited license shall be

26  subject to the same applicable requirements and

27  responsibilities as apply to general lines agents in general,

28  if licensed as to motor vehicle physical damage and mechanical

29  breakdown insurance, credit property insurance, industrial

30  fire insurance or burglary insurance, in-transit and storage

31  personal property insurance, communications equipment property

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    Florida Senate - 2002                           CS for SB 1994
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  1  insurance or communications equipment inland marine insurance,

  2  baggage and motor vehicle excess liability insurance, or

  3  credit insurance; or as apply to life agents or health agents

  4  in general, as the case may be, if licensed as to personal

  5  accident insurance or credit life or credit disability

  6  insurance.

  7         Section 3.  Subsection (1) of section 626.732, Florida

  8  Statutes, is amended to read:

  9         626.732  Requirement as to knowledge, experience, or

10  instruction.--

11         (1)  Except as provided in subsection (3), no applicant

12  for a license as a general lines agent, except for a chartered

13  property and casualty underwriter (CPCU), other than as to a

14  limited license as to baggage and motor vehicle excess

15  liability insurance, credit property insurance, credit

16  insurance, or in-transit and storage personal property

17  insurance, or communications equipment property insurance or

18  communication equipment inland marine insurance, shall be

19  qualified or licensed unless within the 4 years immediately

20  preceding the date the application for license is filed with

21  the department the applicant has:

22         (a)  Taught or successfully completed classroom courses

23  in insurance satisfactory to the department at a school,

24  college, or extension division thereof, approved by the

25  department;

26         (b)  Completed a correspondence course in insurance

27  satisfactory to the department and regularly offered by

28  accredited institutions of higher learning in this state and,

29  except if he or she is applying for a limited license under s.

30  626.321, has had at least 6 months of responsible insurance

31  duties as a substantially full-time bona fide employee in all

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  1  lines of property and casualty insurance set forth in s.

  2  626.041(1); or

  3         (c)  Completed at least 1 year in responsible insurance

  4  duties as a substantially full-time bona fide employee in all

  5  lines of property and casualty insurance, exclusive of

  6  aviation and wet marine and transportation insurances but not

  7  exclusive of boats of less than 36 feet in length or aircraft

  8  not held out for hire, as set forth in s. 626.041(1), without

  9  the education requirement mentioned in paragraph (a) or

10  paragraph (b).

11         Section 4.  This act shall take effect July 1, 2002.

12

13          STATEMENT OF SUBSTANTIAL CHANGES CONTAINED IN
                       COMMITTEE SUBSTITUTE FOR
14                         Senate Bill 1994

15

16  Consolidates the proposed communications equipment property
    insurance product into the existing limited lines license
17  which covers "in-transit and storage personal property
    insurance."
18
    Restricts the definition of "communications equipment" to
19  exclude telecommunication switching equipment, transmission
    wires, cell site transceiver equipment, or other equipment and
20  systems used by telecommunications companies to provide
    telecommunication service to consumers.
21
    Exempts general lines agents from being required to obtain a
22  separate license to offer or sell communications equipment
    property insurance or communication equipment inland marine
23  insurance.

24  Clarifies that those licensees offering the communications
    insurance policies to have a contractual relationship with a
25  general lines agent.

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