Senate Bill sb0318

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    Florida Senate - 2002                                   SB 318

    By Senator Holzendorf





    2-21-02

  1                      A bill to be entitled

  2         An act relating to insurance; creating the

  3         Producer Licensing Model Act; providing purpose

  4         and scope; defining terms; providing for

  5         licensing; providing for applications for

  6         examination and license; providing for

  7         nonresident licensing; providing an exemption

  8         from examination; requiring notification to the

  9         Department of Insurance if an assumed name is

10         used; providing for denial, nonrenewal, and

11         revocation of license; providing for

12         commissions and appointments; providing for

13         reciprocity; providing for reporting of

14         actions; authorizing the Department of

15         Insurance to adopt rules; providing for

16         severability; providing for repeal of

17         inconsistent statutes; providing an effective

18         date.

19

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

21

22         Section 1.  Purpose and scope.--

23         (1)  This act governs the qualifications and procedures

24  for the licensing of insurance producers. It simplifies and

25  organizes some statutory provisions to improve efficiency,

26  permits the use of new technology, and reduces costs

27  associated with issuing and renewing insurance licenses.

28         (2)  This act does not apply to excess and surplus

29  lines agents and brokers licensed under part VIII of chapter

30  626, Florida Statutes, except as provided in section 8 and

31  section 16(3).

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  1         Section 2.  Definitions.--As used in this act, the

  2  term:

  3         (1)  "Business entity" means a corporation,

  4  association, partnership, limited liability company, limited

  5  liability partnership, or other legal entity.

  6         (2)  "Home state" means the District of Columbia or any

  7  state or territory of the United States in which an insurance

  8  producer maintains his or her principal place of residence or

  9  principal place of business and is licensed to act as an

10  insurance producer.

11         (3)  "Insurance" means any of the lines of insurance

12  defined in part V of chapter 624, Florida Statutes.

13         (4)  "Insurance producer" means a person who is

14  required to be licensed under the laws of this state to sell,

15  solicit, or negotiate insurance.

16         (5)  "Insurer" means any person engaged as indemnitor,

17  surety, or contractor in the business of entering into

18  contracts of insurance or of annuity.

19         (6)  "License" means a document issued by the

20  Department of Insurance which authorizes a person to act as an

21  insurance producer for the lines of authority specified in the

22  document. The license itself does not create any authority,

23  actual, apparent, or inherent, in the holder to represent or

24  commit an insurance carrier.

25         (7)  "Limited lines insurance" means those lines of

26  insurance defined in section 626.321, Florida Statutes.

27         (8)  "Limited lines producer" means a person authorized

28  by the Department of Insurance to sell, solicit, or negotiate

29  limited lines insurance.

30         (9)  "Negotiate" means the act of conferring directly

31  with or offering advice directly to a purchaser or prospective

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  1  purchaser of a particular contract of insurance concerning any

  2  of the substantive benefits, terms, or conditions of the

  3  contract, provided that the person engaged in that act either

  4  sells insurance or obtains insurance from insurers for

  5  purchasers.

  6         (10)  "Person" means an individual or a business

  7  entity.

  8         (11)  "Sell" means to exchange a contract of insurance

  9  by any means, for money or its equivalent, on behalf of an

10  insurance company.

11         (12)  "Solicit" means to attempt to sell insurance or

12  ask or urge a person to apply for a particular kind of

13  insurance from a particular company.

14         (13)  "Terminate" means to cancel the relationship

15  between an insurance producer and the insurer or to terminate

16  a producer's authority to transact insurance.

17         (14)  "Uniform business entity application" means the

18  National Association of Insurance Commissioners Uniform

19  Business Entity Application for resident and nonresident

20  business entities.

21         (15)  "Uniform application" means the National

22  Association of Insurance Commissioners Uniform Application for

23  resident and nonresident producer licensing.

24         Section 3.  License required.--A person may not sell,

25  solicit, or negotiate insurance in this state for any class of

26  insurance unless the person is licensed for that class in

27  accordance with this act.

28         Section 4.  Exceptions to licensing.--

29         (1)  This act does not require an insurer to obtain an

30  insurance producer license. As used in this section, the term

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  1  "insurer" does not include an insurer's officers, directors,

  2  employees, subsidiaries, or affiliates.

  3         (2)  A license as an insurance producer is required of

  4  the following:

  5         (a)  An officer, director, or employee of an insurer or

  6  of an insurance producer if the officer, director, or employee

  7  does not receive any commission on policies written or sold to

  8  insure risks residing, located, or to be performed in this

  9  state and:

10         1.  The officer, director, or employee's activities are

11  executive, administrative, managerial, clerical, or a

12  combination of these and are only indirectly related to the

13  sale, solicitation, or negotiation of insurance;

14         2.  The officer, director, or employee's function

15  relates to underwriting, loss control, inspection, or the

16  processing, adjusting, investigating, or settling of a claim

17  on a contract of insurance; or

18         3.  The officer, director, or employee is acting in the

19  capacity of a special agent or agency supervisor assisting

20  insurance producers under circumstances in which the person's

21  activities are limited to providing technical advice and

22  assistance to licensed insurance producers and do not include

23  the sale, solicitation, or negotiation of insurance.

24         (b)  A person who secures and furnishes information for

25  the purpose of group life insurance, group property and

26  casualty insurance, group annuities, group or blanket accident

27  and health insurance, or for the purpose of enrolling

28  individuals under plans, issuing certificates under plans, or

29  otherwise assisting in administering plans, or who performs

30  administrative services related to mass-marketed property and

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  1  casualty insurance, when no commission is paid to the person

  2  for the service.

  3         (c)  An employer or association or its officers,

  4  directors, employees, or the trustees of an employee trust

  5  plan, to the extent that the employers, officers, employees,

  6  director, or trustees are engaged in the administration or

  7  operation of a program of employee benefits for the employer's

  8  or association's own employees or the employees of its

  9  subsidiaries or affiliates, which program involves the use of

10  insurance issued by an insurer, as long as the employers,

11  associations, officers, directors, employees, or trustees are

12  not in any manner compensated, directly or indirectly, by the

13  company issuing the contracts.

14         (d)  Employees of insurers or organizations employed by

15  insurers who are engaging in the inspection, rating, or

16  classification of risks, or in the supervision of the training

17  of insurance producers, and who are not individually engaged

18  in the sale, solicitation, or negotiation of insurance.

19         (e)  A person whose activities in this state are

20  limited to advertising without the intent to solicit insurance

21  in this state through communications in printed publications

22  or other forms of electronic mass media whose distribution is

23  not limited to residents of the state, unless the persons

24  sells, solicits, or negotiates insurance that would insure

25  risks residing, located, or to be performed in this state.

26         (f)  A person who is not a resident of this state who

27  sells, solicits, or negotiates a contract of insurance for

28  commercial property and casualty risks to an insured with

29  risks located in more than one state insured under that

30  contract, provided that that person is otherwise licensed as

31  an insurance producer to sell, solicit, or negotiate that

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  1  insurance in the state where the insured maintains its

  2  principal place of business and the contract of insurance

  3  insures risks located in that state.

  4         (g)  A salaried full-time employee who counsels or

  5  advises his or her employer relative to the insurance

  6  interests of the employer or of the subsidiaries or business

  7  affiliates of the employer, provided that the employee does

  8  not sell or solicit insurance or receive a commission.

  9         Section 5.  Application for examination.--

10         (1)  A resident individual applying for an insurance

11  producer license must pass a written examination unless exempt

12  under section 9. The examination shall test the knowledge of

13  the individual concerning the lines of authority for which

14  application is made, the duties and responsibilities of an

15  insurance producer, and the insurance laws and regulations of

16  this state. Examinations required by this section must be

17  developed and conducted under rules prescribed by the

18  Department of Insurance.

19         (2)  The Department of Insurance may make arrangements,

20  including contracting with an outside testing service, for

21  administering examinations and collecting the nonrefundable

22  fee prescribed in section 624.501, Florida Statutes.

23         (3)  Each individual applying for an examination must

24  remit a nonrefundable fee as prescribed by the Department of

25  Insurance as set forth in section 624.501, Florida Statutes.

26         (4)  An individual who fails to appear for the

27  examination as scheduled or fails to pass the examination must

28  reapply for an examination and remit all required fees and

29  forms before being rescheduled for another examination.

30         Section 6.  Application for license.--

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  1         (1)  A person applying for a resident insurance

  2  producer license must apply to the Department of Insurance on

  3  the uniform application and declare under penalty of refusal,

  4  suspension, or revocation of the license that the statements

  5  made in the application are true, correct, and complete to the

  6  best of the individual's knowledge and belief. Before

  7  approving the application, the Department of Insurance must

  8  find that the individual:

  9         (a)  Is at least 18 years of age;

10         (b)  Has not committed any act that is a ground for

11  denial, suspension, or revocation set forth in section 12;

12         (c)  Has completed any prelicensing course of study

13  required by law for the lines of authority for which the

14  person has applied;

15         (d)  Has paid the fees set forth in section 624.501,

16  Florida Statutes; and

17         (e)  Has successfully passed the examination for the

18  lines of authority for which the person has applied.

19         (2)  The Department of Insurance may require any

20  documents reasonably necessary to verify the information

21  contained in an application.

22         (3)  Each insurer that sells, solicits, or negotiates

23  any form of limited line credit insurance shall provide to

24  each individual whose duties will include selling, soliciting,

25  or negotiating limited line credit insurance a program of

26  instruction that is approved by the Department of Insurance.

27         Section 7.  License.--

28         (1)  Unless denied licensure under section 12, persons

29  who have met the requirements of sections 5 and 6 shall be

30  issued an insurance producer license. An insurance producer

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  1  may receive qualification for a license in one or more of the

  2  following lines of authority:

  3         (a)  Life insurance coverage on human lives, including

  4  benefits of endowment and annuities, which may include

  5  benefits in the event of death or dismemberment by accident

  6  and benefits for disability income.

  7         (b)  Accident and health or sickness insurance coverage

  8  for sickness, bodily injury, or accidental death, which may

  9  include benefits for disability income.

10         (c)  Property insurance coverage for the direct or

11  consequential loss or damage to property of any kind.

12         (d)  Casualty insurance coverage against legal

13  liability, including that for death, injury, or disability or

14  damage to real or personal property.

15         (e)  Variable life and variable annuity products

16  insurance coverage provided under variable life insurance

17  contracts and variable annuities.

18         (f)  Limited lines insurance.

19         (g)  Any other line of insurance permitted under state

20  laws.

21         (2)  An insurance producer license remains in effect,

22  unless revoked or suspended, as long as the fee set forth in

23  section 624.501, Florida Statutes, has been paid and the

24  education requirements for resident individual producers have

25  been met by the due date.

26         (3)  An individual insurance producer who allows his or

27  her license to lapse may, within 12 months after the due date

28  of the renewal fee, reinstate the same license without the

29  necessity of passing a written examination. However, a penalty

30  in the amount of twice the unpaid renewal fee is required for

31  any renewal fee received after the due date.

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  1         (4)  A licensed insurance producer who is unable to

  2  comply with license renewal procedures due to military service

  3  or other extenuating circumstance such as long-term medical

  4  disability may request a waiver of those procedures. The

  5  producer may also request a waiver of any examination

  6  requirement or any other fine or sanction imposed for failure

  7  to comply with renewal procedures.

  8         (5)  The license shall specify the licensee's name,

  9  address, personal identification number, and the date of

10  issuance, the lines of authority, the expiration date, and any

11  other information the Department of Insurance deems necessary.

12         (6)  Licensees shall inform the Department of Insurance

13  by any means acceptable to the department of a change of

14  address within 30 days after the change occurs.

15         Section 8.   Nonresident licensing.--

16         (1)  Unless denied licensure pursuant to section 12, a

17  nonresident person shall receive a nonresident producer

18  license if:

19         (a)  The person is currently licensed as a resident and

20  in good standing in his or her home state;

21         (b)  The person has submitted the proper request for

22  licensure and has paid the fees required by section 624.501,

23  Florida Statutes;

24         (c)  The person has submitted or transmitted to the

25  Department of Insurance the application for licensure which

26  the person submitted to his or her home state, or in lieu of

27  the same, a completed uniform application; and

28         (d)  The person's home state awards nonresident

29  producer licenses to residents of this state on the same

30  basis.

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  1         (2)  The Department of Insurance may verify the

  2  producer's licensing status through the producer database

  3  maintained by the National Association of Insurance

  4  Commissioners, its affiliates, or its subsidiaries.

  5         (3)  A nonresident producer who moves from one state to

  6  another state or a resident producer who moves from this state

  7  to another state must file a change of address and provide

  8  certification from the new resident state within 30 days after

  9  the change of legal residence. A fee or license application is

10  not required.

11         (4)  Notwithstanding any other provision of this act, a

12  person licensed as a surplus lines producer in his or her home

13  state shall receive a nonresident surplus lines producer

14  license pursuant to subsection (1). Except for subsection (1),

15  nothing in this section otherwise amends or supersedes any

16  provision of the Florida Statutes relating to surplus lines

17  insurance.

18         (5)  Notwithstanding any other provisions of this act,

19  a person licensed as a limited lines producer in his or her

20  home state shall receive a nonresident limited lines producer

21  license, pursuant to subsection (1), granting the same scope

22  of authority as granted under the license issued by the

23  producer's home state. For the purposes of this subsection,

24  limited lines insurance is any authority granted by the home

25  state which restricts the authority under the license to less

26  than the total authority prescribed in the associated major

27  lines under section 7(1)(a)-(e).

28         Section 9.  Exemption from examination.--

29         (1)  An individual who applies for an insurance

30  producer license in this state who was previously licensed for

31  the same lines of authority in another state is not required

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  1  to complete any prelicensing education or examination. The

  2  exemption is available only if the person is currently

  3  licensed in that state or if the application is received

  4  within 90 days after the cancellation of the applicant's

  5  previous license and if the prior state issues a certification

  6  that, at the time of cancellation, the applicant was in good

  7  standing in that state or that the state's producer database

  8  records, maintained by the National Association of Insurance

  9  Commissioners, its affiliates, or its subsidiaries, indicate

10  that the producer is or was licensed in good standing for the

11  line of authority requested.

12         (2)  A person licensed as an insurance producer in

13  another state who moves to this state must apply within 90

14  days after establishing legal residence to become a resident

15  licensee under section 6. Prelicensing education and

16  examination are not required of that person to obtain any line

17  of authority previously held in the prior state unless the

18  Department of Insurance requires otherwise by rule.

19         Section 10.  Assumed names.--An insurance producer

20  doing business under any name other than the producer's legal

21  name must notify the Department of Insurance prior to using

22  the assumed name.

23         Section 11.  Temporary licensing.--

24         (1)  The Department of Insurance may issue a temporary

25  insurance producer license for a period not to exceed 180 days

26  without requiring an examination if it finds that the

27  temporary license is necessary for the servicing of an

28  insurance business in the following cases:

29         (a)  To the surviving spouse or court-appointed

30  personal representative of a licensed insurance producer who

31  dies or becomes mentally or physically disabled, to allow

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  1  adequate time for the sale of the insurance business owned by

  2  the producer or for the recovery or return of the producer to

  3  the business or to provide for the training and licensing of

  4  new personnel to operate the producer's business.

  5         (b)  To a member or employee of a business entity

  6  licensed as an insurance producer, upon the death or

  7  disability of an individual designated in the business entity

  8  application or the license.

  9         (c)  To the designee of a licensed insurance producer

10  entering active service in the armed forces of the United

11  States of America.

12         (d)  In any other circumstance under which the

13  Department of Insurance considers that the public interest

14  will be best served by the issuance of this license.

15         (2)  The Department of Insurance may by order limit the

16  authority of any temporary licensee in any way considered

17  necessary to protect insureds and the public. The Department

18  of Insurance may require the temporary licensee to have a

19  suitable sponsor who is a licensed producer or insurer and who

20  assumes responsibility for all acts of the temporary licensee,

21  and may impose other similar requirements designed to protect

22  insureds and the public. The Department of Insurance may by

23  order revoke a temporary license if the interests of insureds

24  or the public are endangered. A temporary license may not

25  continue after the owner or the personal representative

26  disposes of the business.

27         Section 12.  License denial, nonrenewal, or

28  revocation.--

29         (1)  The Department of Insurance may place on

30  probation, suspend, revoke, or refuse to issue or renew an

31  insurance producer's license or may levy a civil penalty in

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  1  accordance with section 626.681, Florida Statutes, or any

  2  combination of actions, for any one or more of the following

  3  causes:

  4         (a)  Providing incorrect, misleading, incomplete, or

  5  materially untrue information in the license application.

  6         (b)  Violating any insurance laws, or violating any

  7  rule, subpoena, or order of the Department of Insurance or of

  8  the comparable agency of another state.

  9         (c)  Obtaining or attempting to obtain a license

10  through misrepresentation or fraud.

11         (d)  Improperly withholding, misappropriating, or

12  converting any moneys or properties received in the course of

13  doing insurance business.

14         (e)  Intentionally misrepresenting the terms of an

15  actual or proposed insurance contract or application for

16  insurance.

17         (f)  Having been convicted of a felony.

18         (g)  Having admitted or been found to have committed

19  any insurance unfair trade practice or fraud.

20         (h)  Using fraudulent, coercive, or dishonest

21  practices, or demonstrating incompetence, untrustworthiness,

22  or financial irresponsibility in the conduct of business in

23  this state or elsewhere.

24         (i)  Having an insurance producer license, or its

25  equivalent, denied, suspended, or revoked in any other state,

26  province, district, or territory.

27         (j)  Forging another's name to an application for

28  insurance or to any document related to an insurance

29  transaction.

30         (k)  Improperly using notes or any other reference

31  material to complete an examination for an insurance license.

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  1         (l)  Knowingly accepting insurance business from an

  2  individual who is not licensed.

  3         (m)  Failing to comply with an administrative or court

  4  order imposing a child-support obligation.

  5         (2)  If the Department of Insurance fails to renew or

  6  denies an application for a license, it shall advise, in

  7  writing, the applicant or licensee of the reason for the

  8  denial or nonrenewal. The applicant or licensee may make

  9  written demand upon the Department of Insurance within 15 days

10  for a hearing to determine the reasonableness of the action.

11  The hearing must be held pursuant to chapter 120, Florida

12  Statutes.

13         (3)  The license of a business entity may be suspended,

14  revoked, or refused if the Department of Insurance finds,

15  after hearing, that an individual licensee's violation was

16  known or should have been known by one or more of the

17  partners, officers, or managers acting on behalf of the

18  partnership or corporation and that the violation was not

19  reported to the department nor corrective action taken.

20         (4)  In addition to or in lieu of any applicable

21  denial, suspension, or revocation of a license, a person may,

22  after hearing, be subject to a civil fine in accordance with

23  section 626.681, Florida Statutes.

24         (5)  The Department of Insurance shall retain the

25  authority to enforce the provisions of and impose any penalty

26  or remedy authorized by this act and chapter 626, Florida

27  Statutes, against any person who is under investigation for or

28  charged with a violation of this act or chapter 626, Florida

29  Statutes, even if the person's license or registration has

30  been surrendered or has lapsed by operation of law.

31         Section 13.  Commissions.--

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  1         (1)  An insurance company or insurance producer may not

  2  pay a commission, service fee, brokerage, or other valuable

  3  consideration to a person for selling, soliciting, or

  4  negotiating insurance in this state if that person is required

  5  to be licensed under this act and is not so licensed.

  6         (2)  A person may not accept a commission, service fee,

  7  brokerage, or other valuable consideration for selling,

  8  soliciting, or negotiating insurance in this state if that

  9  person is required to be licensed under this act and is not so

10  licensed.

11         (3)  Renewal or other deferred commissions may be paid

12  to a person for selling, soliciting, or negotiating insurance

13  in this state if the person was required to be licensed under

14  this act at the time of the sale, solicitation, or negotiation

15  and was so licensed at that time.

16         (4)  An insurer or insurance producer may pay or assign

17  commissions, service fees, brokerages, or other valuable

18  consideration to an insurance agency or to persons who do not

19  sell, solicit, or negotiate insurance in this state, unless

20  the payment would violate section 626.572, Florida Statutes.

21         Section 14.  Appointments.--

22         (1)  An insurance producer may not act as an agent of

23  an insurer unless the insurance producer becomes an appointed

24  agent of that insurer. An insurance producer who is not acting

25  as an agent of an insurer is not required to become appointed.

26         (2)  Upon receipt of the notice of appointment, the

27  Department of Insurance must verify within a reasonable time

28  not to exceed 30 days that the insurance producer is eligible

29  for appointment. If the insurance producer is found to be

30  ineligible for appointment, the department shall, within 5

31  days, notify the insurer of that determination.

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  1         (3)  An insurer shall pay an appointment fee, in the

  2  amount and method of payment set forth in section 624.501,

  3  Florida Statutes, for each insurance producer appointed by the

  4  insurer.

  5         (4)  An insurer shall remit, in a manner prescribed by

  6  the Department of Insurance, a renewal appointment fee in the

  7  amount set forth in section 624.501, Florida Statutes.

  8         Section 15.  Notification to Department of Insurance of

  9  termination.--

10         (1)  An insurer or authorized representative of the

11  insurer that terminates the appointment, employment, contract,

12  or other insurance business relationship with a producer shall

13  notify the Department of Insurance within 30 days following

14  the effective date of the termination, using a format

15  prescribed by the department, if the reason for termination is

16  one of the reasons set forth in section 12 or if the insurer

17  knows that the producer has been found by a court, government

18  body, or self-regulatory organization authorized by law to

19  have engaged in any of the activities in section 12. Upon the

20  written request of the Department of Insurance, the insurer

21  shall provide additional information, documents, records, or

22  other data pertaining to the termination or activity of the

23  producer.

24         (2)  An insurer or authorized representative of the

25  insurer that terminates the appointment, employment, or

26  contract with a producer for any reason not set forth in

27  section 12 shall notify the Department of Insurance within 30

28  days following the effective date of the termination, using a

29  format prescribed by the department. Upon written request of

30  the Department of Insurance, the insurer shall provide

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  1  additional information, documents, records, or other data

  2  pertaining to the termination.

  3         (3)  The insurer or the authorized representative of

  4  the insurer shall promptly notify the Department of Insurance

  5  in a format acceptable to the department if, upon further

  6  review or investigation, the insurer discovers additional

  7  information that should have been reported to the department

  8  in accordance with subsection (1) had the insurer then known

  9  of its existence.

10         (4)(a)  Within 15 days after making the notification

11  required by subsection (1), subsection (2), or subsection (3),

12  the insurer shall mail a copy of the notification to the

13  producer at his or her last known address. If the producer is

14  terminated for cause for any of the reasons listed in section

15  12, the insurer shall provide a copy of the notification to

16  the producer at his or her last known address by certified

17  mail, return receipt requested, postage prepaid, or by

18  overnight delivery using a nationally recognized carrier.

19         (b)  Within 30 days after the producer has received the

20  original or additional notification, the producer may file

21  written comments concerning the substance of the notification

22  with the Department of Insurance. The producer shall by the

23  same means, simultaneously send a copy of the comments to the

24  reporting insurer, and the comments shall become a part of the

25  Department of Insurance's file and accompany each copy of a

26  report distributed or disclosed for any reason concerning the

27  producer.

28         (5)(a)  In the absence of actual malice, an insurer,

29  the authorized representative of the insurer, a producer, the

30  Department of Insurance, or an organization of which the

31  Insurance Commissioner is a member and which compiles the

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  1  information and makes it available to other insurance

  2  commissioners or to regulatory or law enforcement agencies is

  3  not subject to civil liability, and a civil cause of action of

  4  any nature may not arise against these entities of their

  5  respective agents or employees as a result of any statement or

  6  information required by or provided under this section or any

  7  information relating to any statement that is requested in

  8  writing by the Department of Insurance, from an insurer or

  9  producer, or a statement by a terminating insurer or producer

10  to an insurer or producer, limited solely and exclusively to

11  whether a termination for cause under subsection (1) was

12  reported to the Department of Insurance, provided that the

13  propriety of any termination for cause under subsection (1) is

14  certified in writing by an officer or authorized

15  representative of the insurer or producer terminating the

16  relationship.

17         (b)  In any action brought against a person that has

18  immunity under paragraph (a) for making any statement required

19  by this section or providing any information relating to any

20  statement that has been requested by the Department of

21  Insurance, the party bringing the action must plead

22  specifically in any allegation that paragraph (a) does not

23  apply because the person making the statement or providing the

24  information did so with actual malice.

25         (c)  Neither paragraph (a) nor (b) abrogates or

26  modifies any other statutory or common-law privilege or

27  immunity.

28         (6)  An insurer, the authorized representative of the

29  insurer, or a producer that fails to report as required under

30  this section or that is found to have reported with actual

31  malice by a court of competent jurisdiction may, after notice

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  1  and hearing, have its license or certificate of authority

  2  suspended or revoked and may be fined in accordance with

  3  section 626.681, Florida Statutes.

  4         Section 16.  Reciprocity.--

  5         (1)  The Department of Insurance may not assess a

  6  greater fee for an insurance license or related service to a

  7  person not residing in this state based solely on the fact

  8  that the person does not reside in this state.

  9         (2)  The Department of Insurance may waive any

10  requirements for a nonresident license applicant with a valid

11  license from his or her home state, except the requirements

12  imposed by section 8, if the applicant's home state awards

13  nonresident licenses to residents of this state on the same

14  basis.

15         (3)  A nonresident producer's satisfaction of his or

16  her home state's continuing-education requirements for

17  licensed insurance producers constitutes satisfaction of this

18  state's continuing-education requirements if the nonresident

19  producer's home state recognizes the satisfaction of its

20  continuing-education requirements imposed upon producers from

21  this state on the same basis.

22         Section 17.  Reporting of actions.--

23         (1)  A producer shall report to the Department of

24  Insurance any administrative action taken against the producer

25  in another jurisdiction or by another governmental agency in

26  this state within 30 days after the final disposition of the

27  matter. This report must include a copy of the order, consent

28  to order, or other relevant legal documents.

29         (2)  Within 30 days after the initial pretrial hearing

30  date, a producer must report to the Department of Insurance

31  any criminal prosecution of the producer undertaken in any

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  1  jurisdiction. The report must include a copy of the initial

  2  complaint filed, the order resulting from the hearing, and any

  3  other relevant legal documents.

  4         Section 18.  Regulations.--The Department of Insurance

  5  may, in accordance with chapter 120, Florida Statutes, adopt

  6  rules necessary to carry out the purposes of this act.

  7         Section 19.  Severability.--If any provision of this

  8  act or its application to any person or circumstances, is held

  9  invalid, the invalidity does not affect other provisions or

10  application of the act which can be given effect without the

11  invalid provision or application, and to this end the

12  provisions of this act are severable.

13         Section 20.  Any statute inconsistent with this act is

14  repealed to the extent of the inconsistency.

15         Section 21.  This act shall take effect January 1,

16  2003.

17

18            *****************************************

19                          SENATE SUMMARY

20    Creates the Insurance Producer Licensing Act. (See bill
      for details.)
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