| 1 | Representative Berfield offered the following: |
| 2 |
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| 3 | Amendment (with title amendment) |
| 4 | Between lines 202 an 203, insert: |
| 5 | Section 4. Paragraph (a) of subsection (3) of section |
| 6 | 626.2815, Florida Statutes, is amended to read: |
| 7 | 626.2815 Continuing education required; application; |
| 8 | exceptions; requirements; penalties.-- |
| 9 | (3)(a) Each person subject to the provisions of this |
| 10 | section must, except as set forth in paragraphs (b) and (c), |
| 11 | complete a minimum of 24 hours of continuing education courses |
| 12 | every 2 years in basic or higher-level courses prescribed by |
| 13 | this section or in other courses approved by the department. |
| 14 | Each person subject to the provisions of this section must |
| 15 | complete, as part of his or her required number of continuing |
| 16 | education hours, 3 hours of continuing education, approved by |
| 17 | the department, every 2 years on the subject matter of ethics |
| 18 | and a minimum of 2 hours of continuing education, approved by |
| 19 | the department, every 2 years on the subject matter of |
| 20 | unauthorized entities engaging in the business of insurance. The |
| 21 | scope of the topic of unauthorized entities shall include the |
| 22 | Florida Nonprofit Multiple Employer Welfare Arrangement Act and |
| 23 | the Employee Retirement Income Security Act, 29 U.S.C. ss. 1001 |
| 24 | et seq., as it relates to the provision of health insurance by |
| 25 | employers to their employees and the regulation thereof. |
| 26 | Section 5. Present subsections (15) through (17) of |
| 27 | section 626.015, Florida Statutes, are renumbered as subsections |
| 28 | (16) through (18), respectively, and a new subsection (15) is |
| 29 | added to said section to read: |
| 30 | 626.015 Definitions.--As used in this part: |
| 31 | (15) "Personal lines agent" means a general lines agent |
| 32 | who is limited to transacting business related to property and |
| 33 | casualty insurance sold to individuals and families for |
| 34 | noncommercial purposes. |
| 35 | Section 6. Subsection (3) is added to section 626.022, |
| 36 | Florida Statutes, to read: |
| 37 | 626.022 Scope of part.-- |
| 38 | (3) Provisions of this part that apply to general lines |
| 39 | agents and applicants also apply to personal lines agents and |
| 40 | applicants, except where otherwise provided. |
| 41 | Section 7. Subsection (8) is added to section 626.241, |
| 42 | Florida Statutes, to read: |
| 43 | 626.241 Scope of examination.-- |
| 44 | (8) An examination for licensure as a personal lines agent |
| 45 | shall consist of 100 questions and shall be limited in scope to |
| 46 | the kinds of business transacted under such license. |
| 47 | Section 8. Subsection (1) of section 626.311, Florida |
| 48 | Statutes, is amended to read: |
| 49 | 626.311 Scope of license.-- |
| 50 | (1) Except as to personal lines agents and limited |
| 51 | licenses, the applicant for license as a general lines agent or |
| 52 | customer representative shall qualify for all property, marine, |
| 53 | casualty, and surety lines except bail bonds which require a |
| 54 | separate license under chapter 648. The license of a general |
| 55 | lines agent may also cover health insurance if health insurance |
| 56 | is included in the agent's appointment by an insurer as to which |
| 57 | the licensee is also appointed as agent for property or casualty |
| 58 | or surety insurance. The license of a customer representative |
| 59 | shall provide, in substance, that it covers all of such classes |
| 60 | of insurance that his or her appointing general lines agent or |
| 61 | agency is currently so authorized to transact under the general |
| 62 | lines agent's license and appointments. No such license shall |
| 63 | be issued limited to particular classes of insurance except for |
| 64 | bail bonds which require a separate license under chapter 648 or |
| 65 | for personal lines agents. Personal lines agents are limited to |
| 66 | transacting business related to property and casualty insurance |
| 67 | sold to individuals and families for noncommercial purposes. |
| 68 | Section 9. Section 626.727, Florida Statutes, is amended |
| 69 | to read: |
| 70 | 626.727 Scope of this part.--This part applies only to |
| 71 | general lines agents, customer representatives, service |
| 72 | representatives, and managing general agents, all as defined in |
| 73 | s. 626.015. Provisions of this part which apply to general lines |
| 74 | agents and applicants also apply to personal lines agents and |
| 75 | applicants, except where otherwise provided. |
| 76 | Section 10. Subsection (1) of section 626.732, Florida |
| 77 | Statutes, is amended to read: |
| 78 | 626.732 Requirement as to knowledge, experience, or |
| 79 | instruction.-- |
| 80 | (1) Except as provided in subsection (3), no applicant for |
| 81 | a license as a general lines agent or personal lines agent, |
| 82 | except for a chartered property and casualty underwriter (CPCU), |
| 83 | other than as to a limited license as to baggage and motor |
| 84 | vehicle excess liability insurance, credit property insurance, |
| 85 | credit insurance, in-transit and storage personal property |
| 86 | insurance, or communications equipment property insurance or |
| 87 | communication equipment inland marine insurance, shall be |
| 88 | qualified or licensed unless within the 4 years immediately |
| 89 | preceding the date the application for license is filed with the |
| 90 | department the applicant has: |
| 91 | (a) Taught or successfully completed classroom courses in |
| 92 | insurance, 3 hours of which shall be on the subject matter of |
| 93 | ethics, satisfactory to the department at a school, college, or |
| 94 | extension division thereof, approved by the department. To |
| 95 | qualify for licensure as a personal lines agent, the applicant |
| 96 | must complete a total of 52 hours of classroom courses in |
| 97 | insurance; |
| 98 | (b) Completed a correspondence course in insurance, 3 |
| 99 | hours of which shall be on the subject matter of ethics, |
| 100 | satisfactory to the department and regularly offered by |
| 101 | accredited institutions of higher learning in this state and, |
| 102 | except if he or she is applying for a limited license under s. |
| 103 | 626.321, for licensure as a general lines agent, has had at |
| 104 | least 6 months of responsible insurance duties as a |
| 105 | substantially full-time bona fide employee in all lines of |
| 106 | property and casualty insurance set forth in the definition of |
| 107 | general lines agent under s. 626.015 or, for licensure as a |
| 108 | personal lines agent, has completed at least 3 months in |
| 109 | responsible insurance duties as a substantially full-time |
| 110 | employee in property and casualty insurance sold to individuals |
| 111 | and families for noncommercial purposes; |
| 112 | (c) For licensure as a general lines agent, completed at |
| 113 | least 1 year in responsible insurance duties as a substantially |
| 114 | full-time bona fide employee in all lines of property and |
| 115 | casualty insurance, exclusive of aviation and wet marine and |
| 116 | transportation insurances but not exclusive of boats of less |
| 117 | than 36 feet in length or aircraft not held out for hire, as set |
| 118 | forth in the definition of a general lines agent under s. |
| 119 | 626.015, without the education requirement mentioned in |
| 120 | paragraph (a) or paragraph (b) or, for licensure as a personal |
| 121 | lines agent, has completed at least 6 months in responsible |
| 122 | insurance duties as a substantially full-time employee in |
| 123 | property and casualty insurance sold to individuals and families |
| 124 | for noncommercial purposes without the education requirement in |
| 125 | paragraph (a) or paragraph(b); or |
| 126 | (d)1. For licensure as a general lines agent, completed at |
| 127 | least 1 year of responsible insurance duties as a licensed and |
| 128 | appointed customer representative or limited customer |
| 129 | representative in commercial or personal lines of property and |
| 130 | casualty insurance and 40 hours of classroom courses approved by |
| 131 | the department covering the areas of property, casualty, surety, |
| 132 | health, and marine insurance; or |
| 133 | 2. For licensure as a personal lines agent, completed at |
| 134 | least 6 months of responsible duties as a licensed and appointed |
| 135 | customer representative or limited customer representative in |
| 136 | property and casualty insurance sold to individuals and families |
| 137 | for noncommercial purposes and 20 hours of classroom courses |
| 138 | approved by the department which are related to property and |
| 139 | casualty insurance sold to individuals and families for |
| 140 | noncommercial purposes; |
| 141 | (e)1.2. For licensure as a general lines agent, completed |
| 142 | at least 1 year of responsible insurance duties as a licensed |
| 143 | and appointed service representative in either commercial or |
| 144 | personal lines of property and casualty insurance and 80 hours |
| 145 | of classroom courses approved by the department covering the |
| 146 | areas of property, casualty, surety, health, and marine |
| 147 | insurance; or. |
| 148 | 2. For licensure as a personal lines agent, completed at |
| 149 | least 6 months of responsible insurance duties as a licensed and |
| 150 | appointed service representative in property and casualty |
| 151 | insurance sold to individuals and families for noncommercial |
| 152 | purposes and 40 hours of classroom courses approved by the |
| 153 | department related to property and casualty insurance sold to |
| 154 | individuals and families for noncommercial purposes; or |
| 155 | (f) For licensure as a personal lines agent, completed at |
| 156 | least 3 years of responsible duties as a licensed and appointed |
| 157 | customer representative in property and casualty insurance sold |
| 158 | to individuals and families for noncommercial purposes. |
| 159 | Section 11. The Department of Financial Services does not |
| 160 | have to begin issuing licenses to personal lines agents on the |
| 161 | effective date of this act if the department has not completed |
| 162 | the process of incorporating necessary procedures for issuing |
| 163 | personal lines licenses into its licensing systems. |
| 164 | Section 12. Subsection (1) of section 626.747, Florida |
| 165 | Statutes, is amended to read: |
| 166 | 626.747 Branch agencies.-- |
| 167 | (1) Each branch place of business established by an agent |
| 168 | or agency, firm, corporation, or association shall be in the |
| 169 | active full-time charge of a licensed general lines agent who is |
| 170 | appointed to represent one or more insurers. Any agent or |
| 171 | agency, firm, corporation, or association which has established |
| 172 | one or more branch places of business shall be required to have |
| 173 | at least one licensed general lines agent who is appointed to |
| 174 | represent one or more insurers at each location of the agency |
| 175 | including its headquarters location. |
| 176 | Section 13. Paragraph (r) is added to subsection (6) of |
| 177 | section 627.351, Florida Statutes, to read: |
| 178 | 627.351 Insurance risk apportionment plans.-- |
| 179 | (6) CITIZENS PROPERTY INSURANCE CORPORATION.-- |
| 180 | (r) A salaried employee of the corporation who performs |
| 181 | policy administration services subsequent to the effectuation of |
| 182 | a corporation policy is not required to be licensed as an agent |
| 183 | under the provisions of s. 626.112. |
| 184 | Section 14. Paragraphs (c) and (d) of subsection (1) of |
| 185 | section 626.321, Florida Statutes, are amended to read: |
| 186 | 626.321 Limited licenses.-- |
| 187 | (1) The department shall issue to a qualified individual, |
| 188 | or a qualified individual or entity under paragraphs (c), (d), |
| 189 | (e), and (i), a license as agent authorized to transact a |
| 190 | limited class of business in any of the following categories: |
| 191 | (c) Personal accident insurance.--License covering only |
| 192 | policies of personal accident insurance covering the risks of |
| 193 | travel, except as provided in subparagraph 2. The license may |
| 194 | be issued only: |
| 195 | 1. To a full-time salaried employee of a common carrier or |
| 196 | a full-time salaried employee or owner of a transportation |
| 197 | ticket agency and may authorize the sale of such ticket policies |
| 198 | only in connection with the sale of transportation tickets, or |
| 199 | to the full-time salaried employee of such an agent. No such |
| 200 | policy shall be for a duration of more than 48 hours or for the |
| 201 | duration of a specified one-way trip or round trip. |
| 202 | 2. To a full-time salaried employee of a business which |
| 203 | offers motor vehicles for rent or lease, or to a business entity |
| 204 | office of a business which offers motor vehicles for rent or |
| 205 | lease if insurance sales activities authorized by the license |
| 206 | are limited to full-time salaried employees. A business office |
| 207 | licensed or a person licensed pursuant to this subparagraph may, |
| 208 | as an agent of an insurer, transact insurance that provides |
| 209 | coverage for accidental personal injury or death of the lessee |
| 210 | and any passenger who is riding or driving with the covered |
| 211 | lessee in the rental motor vehicle if the lease or rental |
| 212 | agreement is for not more than 30 days, or if the lessee is not |
| 213 | provided coverage for more than 30 consecutive days per lease |
| 214 | period; however, if the lease is extended beyond 30 days, the |
| 215 | coverage may be extended one time only for a period not to |
| 216 | exceed an additional 30 days. |
| 217 | (d) Baggage and motor vehicle excess liability insurance.- |
| 218 | - |
| 219 | 1. License covering only insurance of personal effects |
| 220 | except as provided in subparagraph 2. The license may be issued |
| 221 | only: |
| 222 | a. To a full-time salaried employee of a common carrier or |
| 223 | a full-time salaried employee or owner of a transportation |
| 224 | ticket agency, which person is engaged in the sale or handling |
| 225 | of transportation of baggage and personal effects of travelers, |
| 226 | and may authorize the sale of such insurance only in connection |
| 227 | with such transportation; or |
| 228 | b. To the full-time salaried employee of a licensed |
| 229 | general lines agent, a full-time salaried employee of a business |
| 230 | which offers motor vehicles for rent or lease, or to a business |
| 231 | office of a business entity that which offers motor vehicles for |
| 232 | rent or lease if insurance sales activities authorized by the |
| 233 | license are in connection with and incidental to the rental of |
| 234 | a motor vehicle limited to full-time salaried employees. An |
| 235 | entity applying for a license under this sub-subparagraph: |
| 236 | (I) Is required to submit only one application for a |
| 237 | license under s. 626.171. The requirements of s. 626.171(5) |
| 238 | shall apply only to the officers and directors of the entity |
| 239 | submitting the application. |
| 240 | (II) Is required to obtain a license for each office, |
| 241 | branch office, or place of business making use of the entity's |
| 242 | business name by applying to the department for the license on a |
| 243 | simplified application form developed by rule of the department |
| 244 | for this purpose. |
| 245 | (III) Is required to pay the applicable fees for a license |
| 246 | as prescribed in s. 624.501, be appointed under s. 626.112, and |
| 247 | pay the prescribed appointment fee under s. 624.501. A licensed |
| 248 | and appointed entity shall be directly responsible and |
| 249 | accountable for all acts of the licensee's employees. |
| 250 |
|
| 251 | The purchaser of baggage insurance shall be provided written |
| 252 | information disclosing that the insured's homeowner's policy may |
| 253 | provide coverage for loss of personal effects and that the |
| 254 | purchase of such insurance is not required in connection with |
| 255 | the purchase of tickets or in connection with the lease or |
| 256 | rental of a motor vehicle. |
| 257 | 2. A business entity that office licensed pursuant to |
| 258 | subparagraph 1., or a person licensed pursuant to subparagraph |
| 259 | 1. who is a full-time salaried employee of a business which |
| 260 | offers motor vehicles for rent or lease, may include lessees |
| 261 | under a master contract providing coverage to the lessor or may |
| 262 | transact excess motor vehicle liability insurance providing |
| 263 | coverage in excess of the standard liability limits provided by |
| 264 | the lessor in its lease to a person renting or leasing a motor |
| 265 | vehicle from the licensee's employer for liability arising in |
| 266 | connection with the negligent operation of the leased or rented |
| 267 | motor vehicle, provided that the lease or rental agreement is |
| 268 | for not more than 30 days; that the lessee is not provided |
| 269 | coverage for more than 30 consecutive days per lease period, |
| 270 | and, if the lease is extended beyond 30 days, the coverage may |
| 271 | be extended one time only for a period not to exceed an |
| 272 | additional 30 days; that the lessee is given written notice that |
| 273 | his or her personal insurance policy providing coverage on an |
| 274 | owned motor vehicle may provide additional excess coverage; and |
| 275 | that the purchase of the insurance is not required in connection |
| 276 | with the lease or rental of a motor vehicle. The excess |
| 277 | liability insurance may be provided to the lessee as an |
| 278 | additional insured on a policy issued to the licensee's |
| 279 | employer. |
| 280 | 3. A business entity that office licensed pursuant to |
| 281 | subparagraph 1., or a person licensed pursuant to subparagraph |
| 282 | 1. who is a full-time salaried employee of a business which |
| 283 | offers motor vehicles for rent or lease, may, as an agent of an |
| 284 | insurer, transact insurance that provides coverage for the |
| 285 | liability of the lessee to the lessor for damage to the leased |
| 286 | or rented motor vehicle if: |
| 287 | a. The lease or rental agreement is for not more than 30 |
| 288 | days; or the lessee is not provided coverage for more than 30 |
| 289 | consecutive days per lease period, but, if the lease is extended |
| 290 | beyond 30 days, the coverage may be extended one time only for a |
| 291 | period not to exceed an additional 30 days; |
| 292 | b. The lessee is given written notice that his or her |
| 293 | personal insurance policy that provides coverage on an owned |
| 294 | motor vehicle may provide such coverage with or without a |
| 295 | deductible; and |
| 296 | c. The purchase of the insurance is not required in |
| 297 | connection with the lease or rental of a motor vehicle. |
| 298 | Section 15. Subsection (2) of section 628.709, Florida |
| 299 | Statutes, is amended to read: |
| 300 | 628.709 Formation of a mutual insurance holding company.-- |
| 301 | (2) All of the initial shares of the capital stock of the |
| 302 | insurance company which reorganized as a subsidiary insurance |
| 303 | company shall be issued either to the mutual insurance holding |
| 304 | company, or to an intermediate holding company which is wholly |
| 305 | owned by the mutual insurance holding company. This restriction |
| 306 | does not preclude the subsequent issuance of additional shares |
| 307 | of stock by the subsidiary insurance company so long as the |
| 308 | mutual insurance holding company at all times owns directly or |
| 309 | through one or more intermediate holding companies, a majority |
| 310 | of the voting shares of the capital stock of the subsidiary |
| 311 | insurance company. The membership interests of the policyholders |
| 312 | of the subsidiary insurance company shall become membership |
| 313 | interests in the mutual insurance holding company. Policyholders |
| 314 | of the subsidiary insurance company which was formerly the |
| 315 | mutual insurer shall be members of the mutual insurance holding |
| 316 | company in accordance with the articles of incorporation and |
| 317 | bylaws of the mutual insurance holding company. At the time of |
| 318 | formation, policyholders of any other subsidiary insurance |
| 319 | company of the mutual insurance holding company shall not be |
| 320 | members of the mutual insurance holding company unless: |
| 321 | (a) They are policyholders of a subsidiary which was a |
| 322 | mutual insurer which merged with the holding company pursuant to |
| 323 | s. 628.715; or |
| 324 | (b) They are policyholders of an affiliated stock |
| 325 | insurance company, provided such policyholders were members of |
| 326 | the mutual insurance company at the time the mutual insurance |
| 327 | company policies were assumed by the affiliated stock insurance |
| 328 | company and the assumption occurred in connection with the |
| 329 | conversion. |
| 330 |
|
| 331 | Subsequent to formation, membership shall be governed by s. |
| 332 | 628.727. |
| 333 | Section 16. Subsection (6) is added to section 631.021, |
| 334 | Florida Statutes, to read: |
| 335 | 631.021 Jurisdiction of delinquency proceeding; venue; |
| 336 | change of venue; exclusiveness of remedy; appeal.-- |
| 337 | (6) The domiciliary court acquiring jurisdiction over |
| 338 | persons subject to this chapter may exercise exclusive |
| 339 | jurisdiction to the exclusion of all other courts, except as |
| 340 | limited by the provisions of this chapter. Upon the issuance of |
| 341 | an order of conservation, rehabilitation, or liquidation, the |
| 342 | Circuit Court of Leon County shall have exclusive jurisdiction |
| 343 | with respect to assets or property of any insurer subject to |
| 344 | such proceedings and claims against said insurer's assets or |
| 345 | property. |
| 346 | Section 17. Subsection (6) is added to section 631.041, |
| 347 | Florida Statutes, to read: |
| 348 | 631.041 Automatic stay; relief from stay; injunctions.-- |
| 349 | (6) The estate of an insurer in rehabilitation or |
| 350 | liquidation which is injured by any willful violation of an |
| 351 | applicable stay or injunction shall be entitled to actual |
| 352 | damages, including costs and attorney's fees, and, in |
| 353 | appropriate circumstances, the receivership court may impose |
| 354 | additional sanctions. |
| 355 | Section 18. Section 631.0515, Florida Statutes, is amended |
| 356 | to read: |
| 357 | 631.0515 Appointment of receiver; insurance holding |
| 358 | company.--A delinquency proceeding pursuant to this chapter |
| 359 | constitutes the sole and exclusive method of dissolving, |
| 360 | liquidating, rehabilitating, reorganizing, conserving, or |
| 361 | appointing a receiver of a Florida corporation which is not |
| 362 | insolvent as defined by s. 607.01401(16); which through its |
| 363 | shareholders, board of directors, or governing body is |
| 364 | deadlocked in the management of its affairs; and which directly |
| 365 | or indirectly owns all of the stock of a Florida domestic |
| 366 | insurer. The department may petition for an order directing it |
| 367 | to rehabilitate such corporation if the interests of |
| 368 | policyholders or the public will be harmed as a result of the |
| 369 | deadlock. The department shall use due diligence to resolve the |
| 370 | deadlock. Whether or not the department petitions for an order, |
| 371 | the circuit court shall not have jurisdiction pursuant to s. |
| 372 | 607.271, s. 607.274, or s. 607.277 to dissolve, liquidate, or |
| 373 | appoint receivers with respect to, a Florida corporation which |
| 374 | directly or indirectly owns all of the stock of a Florida |
| 375 | domestic insurer and which is not insolvent as defined by s. |
| 376 | 607.01401(16). However, a managing general agent or holding |
| 377 | company with a controlling interest in a domestic insurer in |
| 378 | this state is subject to jurisdiction of the court under the |
| 379 | provisions of s. 631.025. |
| 380 | Section 19. Paragraph (a) of subsection (7) of section |
| 381 | 631.141, Florida Statutes, is amended to read: |
| 382 | 631.141 Conduct of delinquency proceeding; domestic and |
| 383 | alien insurers.-- |
| 384 | (7)(a) In connection with a delinquency proceeding, the |
| 385 | department may appoint one or more special agents to act for it, |
| 386 | and it may employ such counsel, clerks, and assistants as it |
| 387 | deems necessary. The compensation of the special agents, |
| 388 | counsel, clerks, or assistants and all expenses of taking |
| 389 | possession of the insurer and of conducting the proceeding shall |
| 390 | be fixed by the receiver, subject to the approval of the court, |
| 391 | and shall be paid out of the funds or assets of the insurer. |
| 392 | Such expenses are administrative expenses and are recoverable by |
| 393 | the receiver in any actions in which the receiver is authorized |
| 394 | or entitled to recover its administrative expenses. Within the |
| 395 | limits of duties imposed upon them, special agents shall possess |
| 396 | all the powers given to and, in the exercise of those powers, |
| 397 | shall be subject to all duties imposed upon the receiver with |
| 398 | respect to such proceeding. |
| 399 | Section 20. Section 631.205, Florida Statutes, is amended |
| 400 | to read: |
| 401 | 631.205 Reinsurance proceeds.--All reinsurance proceeds |
| 402 | payable under a contract of reinsurance to which the insolvent |
| 403 | insurer is a party are to be paid directly to the domiciliary |
| 404 | receiver as general assets of the receivership estate unless the |
| 405 | reinsurance contract contains a clause which specifically names |
| 406 | the insolvent insurer's insured as a direct beneficiary of the |
| 407 | reinsurance contract. The entry of an order of conservation, |
| 408 | rehabilitation, or liquidation shall not be deemed an |
| 409 | anticipatory breach of any reinsurance contract, nor shall |
| 410 | insolvency or notice of insolvency be grounds for retroactive |
| 411 | revocation or retroactive cancellation of any reinsurance |
| 412 | contracts by the reinsurer. |
| 413 | Section 21. Section 631.206, Florida Statutes, is created |
| 414 | to read: |
| 415 | 631.206 Arbitration.--If an insurer in receivership has |
| 416 | entered into an agreement containing an arbitration provision |
| 417 | for resolution of disputes, that provision is void and shall be |
| 418 | replaced by operation of law with the following provision: |
| 419 |
|
| 420 | Any controversy or claim arising out of or relating to this |
| 421 | contract, or the breach thereof, shall be settled by arbitration |
| 422 | pursuant to the American Arbitration Association Commercial |
| 423 | Arbitration Rules and chapter 682, Florida Statutes, and |
| 424 | judgment on the award rendered by the arbitrators shall be |
| 425 | entered by the receivership court. Venue shall be in Leon |
| 426 | County, Florida. Disputes shall be submitted to a panel of three |
| 427 | arbitrators, one to be chosen by each party and the third by the |
| 428 | two so chosen. Arbitrators shall be selected from a list of |
| 429 | potential qualified arbitrators with 10 years' experience |
| 430 | involving the insurance industry. If the parties do not agree |
| 431 | upon the qualifications of a mediator, each party shall select |
| 432 | its mediator from a list of potential mediators approved by the |
| 433 | receivership court. |
| 434 | Section 22. Subsection (1) of section 631.261, Florida |
| 435 | Statutes, is amended, and subsection (4) is added to said |
| 436 | section, to read: |
| 437 | 631.261 Voidable transfers.-- |
| 438 | (1)(a) Any transfer of, or lien upon, the property of an |
| 439 | insurer or affiliate which is made or created within 4 months |
| 440 | prior to the commencement of any delinquency proceeding under |
| 441 | this chapter which gives with the intent of giving to any |
| 442 | creditor of the insurer a preference or enables of enabling the |
| 443 | creditor to obtain a greater percentage of her or his debt than |
| 444 | any other creditor of the same class, and which is accepted by |
| 445 | such creditor having reasonable cause to believe that such |
| 446 | preference will occur, shall be voidable. |
| 447 | (b) Any transfer of, or lien upon, the property of an |
| 448 | insurer or affiliate which is made or created between 4 months |
| 449 | and 1 year prior to the commencement of any delinquency |
| 450 | proceeding under this chapter is void if such transfer or lien |
| 451 | inured to the benefit of a director, officer, employee, |
| 452 | stockholder, member, subscriber, affiliate, managing general |
| 453 | agent, or insider or any relative of any director, officer, |
| 454 | employee, stockholder, member, subscriber, affiliate, managing |
| 455 | general agent, or insider. |
| 456 | (4) For purposes of this section, a transfer is not made |
| 457 | or created until the insurer or affiliate has acquired rights in |
| 458 | the property transferred. |
| 459 | Section 23. Subsection (2) of section 631.262, Florida |
| 460 | Statutes, is amended to read: |
| 461 | 631.262 Transfers prior to petition.-- |
| 462 | (2) Transfers shall be deemed to have been made or |
| 463 | suffered, or obligations incurred, when perfected according to |
| 464 | the following criteria: |
| 465 | (a) A transfer of property other than real property shall |
| 466 | be deemed to be made or suffered when it becomes so far |
| 467 | perfected that no subsequent lien obtainable by legal or |
| 468 | equitable proceedings on a simple contract could become superior |
| 469 | to the rights of the transferee.; |
| 470 | (b) A transfer of real property shall be deemed to be made |
| 471 | or suffered when it becomes so far perfected that no subsequent |
| 472 | bona fide purchaser from the insurer could obtain rights |
| 473 | superior to the rights of the transferee.; |
| 474 | (c) A transfer which creates an equitable lien shall not |
| 475 | be deemed to be perfected if there are available means by which |
| 476 | a legal lien could be created.; |
| 477 | (d) Any transfer not perfected prior to the filing of a |
| 478 | petition in a delinquency proceeding shall be deemed to be made |
| 479 | immediately before the filing of a successful petition.; |
| 480 | (e) For the purposes of this section, a transfer is not |
| 481 | made until the insurer or affiliate has acquired rights in the |
| 482 | property transferred. |
| 483 | (f)(e) Paragraphs (a)-(e) (a)-(d) apply whether or not |
| 484 | there are or were creditors who might have obtained any liens or |
| 485 | persons who might have become bona fide purchasers. |
| 486 | Section 24. Subsection (6) is added to section 631.263, |
| 487 | Florida Statutes, to read: |
| 488 | 631.263 Transfers after petition.-- |
| 489 | (6) For the purposes of this section, a transfer is not |
| 490 | made until the insurer or affiliate has acquired rights in the |
| 491 | property transferred. |
| 492 | Section 25. Subsection (3) of section 631.54, Florida |
| 493 | Statutes, is amended to read: |
| 494 | 631.54 Definitions.--As used in this part: |
| 495 | (3) "Covered claim" means an unpaid claim, including one |
| 496 | of unearned premiums, which arises out of, and is within the |
| 497 | coverage, and not in excess of, the applicable limits of an |
| 498 | insurance policy to which this part applies, issued by an |
| 499 | insurer, if such insurer becomes an insolvent insurer after |
| 500 | October 1, 1970, and the claimant or insured is a resident of |
| 501 | this state at the time of the insured event or the property from |
| 502 | which the claim arises is permanently located in this state. |
| 503 | "Covered claim" shall not include: |
| 504 | (a) Any amount due any reinsurer, insurer, insurance pool, |
| 505 | or underwriting association, sought directly or indirectly |
| 506 | through a third party, as subrogation, contribution, |
| 507 | indemnification, or otherwise; or |
| 508 | (b) Any claim that would otherwise be a covered claim |
| 509 | under this part that has been rejected by any other state |
| 510 | guaranty fund on the grounds that an insured's net worth is |
| 511 | greater than that allowed under that state's guaranty law . |
| 512 | Member insurers shall have no right of subrogation, |
| 513 | contribution, indemnification, or otherwise, sought directly or |
| 514 | indirectly through a third party, against the insured of any |
| 515 | insolvent member. |
| 516 | Section 26. Subsection (2) of section 631.904, Florida |
| 517 | Statutes, is amended to read: |
| 518 | 631.904 Definitions.--As used in this part, the term: |
| 519 | (2) "Covered claim" means an unpaid claim, including a |
| 520 | claim for return of unearned premiums, which arises out of, is |
| 521 | within the coverage of, and is not in excess of the applicable |
| 522 | limits of, an insurance policy to which this part applies, which |
| 523 | policy was issued by an insurer and which claim is made on |
| 524 | behalf of a claimant or insured who was a resident of this state |
| 525 | at the time of the injury. The term "covered claim" does not |
| 526 | include any amount sought as a return of premium under any |
| 527 | retrospective rating plan; any amount due any reinsurer, |
| 528 | insurer, insurance pool, or underwriting association, as |
| 529 | subrogation recoveries or otherwise; any claim that would |
| 530 | otherwise be a covered claim that has been rejected by any other |
| 531 | state guaranty fund on the grounds that the insured's net worth |
| 532 | is greater than that allowed under that state's guaranty fund or |
| 533 | liquidation law, except this exclusion from the definition of |
| 534 | covered claim shall not apply to claims of employers who, prior |
| 535 | to April 30, 2004, entered into an agreement with the |
| 536 | corporation preserving the employer's right to seek coverage of |
| 537 | claims rejected by another state's guaranty fund; or any return |
| 538 | of premium resulting from a policy that was not in force on the |
| 539 | date of the final order of liquidation. Member insurers have no |
| 540 | right of subrogation against the insured of any insolvent |
| 541 | insurer. This provision shall be applied retroactively to cover |
| 542 | claims of an insolvent self-insurance fund resulting from |
| 543 | accidents or losses incurred prior to January 1, 1994, |
| 544 | regardless of the date the petition in circuit court was filed |
| 545 | alleging insolvency and the date the court entered an order |
| 546 | appointing a receiver. |
| 547 | Section 27. Section 634.1815, Florida Statutes, is created |
| 548 | to read: |
| 549 | 634.1815 Rebating; when allowed.-- |
| 550 | (1) No salesperson shall rebate any portion of his or her |
| 551 | commission except as follows: |
| 552 | (a) The rebate shall be available to all consumers in the |
| 553 | same actuarial class. |
| 554 | (b) The rebate shall be in accordance with a rebating |
| 555 | schedule filed by the salesperson with the service agreement |
| 556 | company issuing the service agreement to which the rebate |
| 557 | applies. The service agreement company shall maintain a copy of |
| 558 | all rebating schedules for a period of 3 years. |
| 559 | (c) The rebating schedule shall be uniformly applied so |
| 560 | all consumers who purchase the same service agreement through |
| 561 | the salesperson for the same coverage shall receive the same |
| 562 | percentage rebate. |
| 563 | (d) The rebate schedule shall be prominently displayed in |
| 564 | public view in the salesperson's place of business, and a copy |
| 565 | shall be made available to consumers on request at no charge. |
| 566 | (e) The age, sex, place of residence, race, nationality, |
| 567 | ethnic origin, marital status, or occupation of the consumer |
| 568 | shall not be used in determining the percentage of the rebate or |
| 569 | whether a rebate is available. |
| 570 | (2) No rebate shall be withheld or limited in amount based |
| 571 | on factors which are unfairly discriminatory. |
| 572 | (3) No rebate shall be given which is not reflected on the |
| 573 | rebate schedule. |
| 574 | (4) No rebate shall be refused or granted based upon the |
| 575 | purchase of or failure to purchase collateral business. |
| 576 | Section 28. Section 634.3205, Florida Statutes, is created |
| 577 | to read: |
| 578 | 634.3205 Rebating; when allowed.-- |
| 579 | (1) No sales representative shall rebate any portion of |
| 580 | his or her commission except as follows: |
| 581 | (a) The rebate shall be available to all consumers in the |
| 582 | same actuarial class. |
| 583 | (b) The rebate shall be in accordance with a rebating |
| 584 | schedule filed by the sales representative with the home |
| 585 | warranty association issuing the home warranty to which the |
| 586 | rebate applies. The home warranty association shall maintain a |
| 587 | copy of all rebating schedules for a period of 3 years. |
| 588 | (c) The rebating schedule shall be uniformly applied so |
| 589 | all consumers who purchase the same home warranty through the |
| 590 | sales representative for the same coverage shall receive the |
| 591 | same percentage rebate. |
| 592 | (d) The rebate schedule shall be prominently displayed in |
| 593 | public view in the sales representative's place of business, and |
| 594 | a copy shall be made available to consumers on request at no |
| 595 | charge. |
| 596 | (e) The age, sex, place of residence, race, nationality, |
| 597 | ethnic origin, marital status, or occupation of the consumer |
| 598 | shall not be used in determining the percentage of the rebate or |
| 599 | whether a rebate is available. |
| 600 | (2) No rebate shall be withheld or limited in amount based |
| 601 | on factors which are unfairly discriminatory. |
| 602 | (3) No rebate shall be given which is not reflected on the |
| 603 | rebate schedule. |
| 604 | (4) No rebate shall be refused or granted based upon the |
| 605 | purchase of or failure to purchase collateral business. |
| 606 | Section 29. Subsection (8) is added to section 634.406, |
| 607 | Florida Statutes, to read: |
| 608 | 634.406 Financial requirements.-- |
| 609 | (8) An association licensed under this part and holding no |
| 610 | other license under part I or part II of this chapter is not |
| 611 | required to establish an unearned premium reserve or maintain |
| 612 | contractual liability insurance and may allow its premiums to |
| 613 | exceed the ratio to net assets limitation of this section if the |
| 614 | association complies with the following: |
| 615 | (a) The association or, if the association is a direct or |
| 616 | indirect wholly owned subsidiary of a parent corporation, its |
| 617 | parent corporation has, and maintains at all times, a minimum |
| 618 | net worth of at least $100 million and provides the office with |
| 619 | the following: |
| 620 | 1. A copy of the association's annual audited financial |
| 621 | statements or the audited consolidated financial statements of |
| 622 | the association's parent corporation, prepared by an independent |
| 623 | certified public accountant in accordance with generally |
| 624 | accepted accounting principles, which clearly demonstrate the |
| 625 | net worth of the association or its parent corporation to be |
| 626 | $100 million and a quarterly written certification to the office |
| 627 | that such entity continues to maintain the net worth required |
| 628 | under this paragraph. |
| 629 | 2. The association's, or its parent corporation's, Form |
| 630 | 10K, Form 10Q, or Form 20F as filed with the United States |
| 631 | Securities and Exchange Commission or such other documents |
| 632 | required to be filed with a recognized stock exchange, which |
| 633 | shall be provided on a quarterly and annual basis within 10 days |
| 634 | after the last date each such report must be filed with the |
| 635 | Securities and Exchange Commission, the National Association of |
| 636 | Security Dealers Automated Quotation system, or other recognized |
| 637 | stock exchange. |
| 638 |
|
| 639 | Failure to timely file the documents required under this |
| 640 | paragraph may, at the discretion of the office, subject the |
| 641 | association to suspension or revocation of its license under |
| 642 | this part. An association or parent corporation demonstrating |
| 643 | compliance with subparagraph 1. and subparagraph 2. must |
| 644 | maintain outstanding debt obligations, if any, rated in the top |
| 645 | four rating categories by a recognized rating service. |
| 646 | (b) If the net worth of a parent corporation is used to |
| 647 | satisfy the net worth provisions of paragraph (a), the following |
| 648 | provisions must be met: |
| 649 | 1. The parent corporation must guarantee all service |
| 650 | warranty obligations of the association, wherever written, on a |
| 651 | form approved in advance by the office. No cancellation, |
| 652 | termination, or modification of the guarantee shall become |
| 653 | effective unless the parent corporation provides the office |
| 654 | written notice at least 90 days before the effective date of the |
| 655 | cancellation, termination, or modification and the office |
| 656 | approves the request in writing. Prior to the effective date of |
| 657 | cancellation, termination, or modification of the guarantee, the |
| 658 | association must demonstrate to the satisfaction of the office |
| 659 | compliance with all applicable provisions of this part, |
| 660 | including whether the association will meet the requirements of |
| 661 | this section by the purchase of contractual liability insurance, |
| 662 | establishing required reserves, or other method allowed under |
| 663 | this section. If the association or parent corporation does not |
| 664 | demonstrate to the satisfaction of the office compliance with |
| 665 | all applicable provisions of this part, it shall immediately |
| 666 | cease writing new and renewal business upon the effective date |
| 667 | of the cancellation, termination, or modification. |
| 668 | 2. The association must maintain at all times net assets |
| 669 | of at least $750,000. |
| 670 | Section 30. Section 634.4225, Florida Statutes, is created |
| 671 | to read: |
| 672 | 634.4225 Rebating; when allowed.-- |
| 673 | (1) No sales representative shall rebate any portion of |
| 674 | his or her commission except as follows: |
| 675 | (a) The rebate shall be available to all consumers in the |
| 676 | same actuarial class. |
| 677 | (b) The rebate shall be in accordance with a rebating |
| 678 | schedule filed by the sales representative with the association |
| 679 | issuing the service warranty to which the rebate applies. The |
| 680 | association shall maintain a copy of all rebating schedules for |
| 681 | a period of 3 years. |
| 682 | (c) The rebating schedule shall be uniformly applied so |
| 683 | all consumers who purchase the same service warranty through the |
| 684 | sales representative for the same coverage shall receive the |
| 685 | same percentage rebate. |
| 686 | (d) The rebate schedule shall be prominently displayed in |
| 687 | public view in the sales representative's place of business, and |
| 688 | a copy shall be made available to consumers on request at no |
| 689 | charge. |
| 690 | (e) The age, sex, place of residence, race, nationality, |
| 691 | ethnic origin, marital status, or occupation of the consumer |
| 692 | shall not be used in determining the percentage of the rebate or |
| 693 | whether a rebate is available. |
| 694 | (2) No rebate shall be withheld or limited in amount based |
| 695 | on factors which are unfairly discriminatory. |
| 696 | (3) No rebate shall be given which is not reflected on the |
| 697 | rebate schedule. |
| 698 | (4) No rebate shall be refused or granted based upon the |
| 699 | purchase of or failure to purchase collateral business. |
| 700 | Section 31. Subsection (2) of section 624.4072, Florida |
| 701 | Statutes, is amended to read: |
| 702 | 624.4072 Minority-owned property and casualty insurers; |
| 703 | limited exemption for taxation and assessments.-- |
| 704 | (2) Subsection (1) applies only to personal lines and |
| 705 | commercial lines residential property insurance policies as |
| 706 | defined in s. 627.4025, and applies only to an insurer that has |
| 707 | employees in this state and has a home office or a regional |
| 708 | office in this state. With respect to any tax year or |
| 709 | assessment year, beginning with the original enactment of this |
| 710 | section, the exemptions provided by subsection (1) apply only if |
| 711 | during the year an average of at least 10 percent of the |
| 712 | insurer's Florida residential property policies in force |
| 713 | included coverage of covered properties located in enterprise |
| 714 | zones designated pursuant to s. 290.0065. |
| 715 | Section 32. Subsection (1) of section 627.0629, Florida |
| 716 | Statutes, is amended to read: |
| 717 | 627.0629 Residential property insurance; rate filings.-- |
| 718 | (1)(a) Effective June 1, 2002, a rate filing for |
| 719 | residential property insurance must include actuarially |
| 720 | reasonable discounts, credits, or other rate differentials, or |
| 721 | appropriate reductions in deductibles, for properties on which |
| 722 | fixtures or construction techniques demonstrated to reduce the |
| 723 | amount of loss in a windstorm have been installed or |
| 724 | implemented. The fixtures or construction techniques shall |
| 725 | include, but not be limited to, fixtures or construction |
| 726 | techniques which enhance roof strength, roof covering |
| 727 | performance, roof-to-wall strength, wall-to-floor-to-foundation |
| 728 | strength, opening protection, and window, door, and skylight |
| 729 | strength. Credits, discounts, or other rate differentials for |
| 730 | fixtures and construction techniques which meet the minimum |
| 731 | requirements of the Florida Building Code must be included in |
| 732 | the rate filing. All insurance companies must make a rate filing |
| 733 | which includes the credits, discounts, or other rate |
| 734 | differentials by February 28, 2003. |
| 735 | (b) An insurer may petition the office for a hardship |
| 736 | exemption from the requirements of this section. In applying for |
| 737 | such an exemption, the insurer must demonstrate: |
| 738 | 1.a. That the number of policies written is insufficient |
| 739 | or of insufficient size to determine the appropriate credit, |
| 740 | discount, or other rate differential or reduction in |
| 741 | deductibles; or |
| 742 | b. That the premium derived from the number of policies |
| 743 | written is so low as to render any credit, discount, or other |
| 744 | rate differential or appropriate reduction in deductibles not |
| 745 | cost-effective; |
| 746 | 3. That the cost of complying is greater to the insurer |
| 747 | than the resultant likely savings by virtue of any such credit, |
| 748 | discount, or other rate differential or appropriate reduction in |
| 749 | deductibles due to the actuarially demonstrated or actual small |
| 750 | number of policyholders likely to qualify for or qualifying for |
| 751 | the discount, credit, or other rate differential or appropriate |
| 752 | reduction in deductibles; |
| 753 | 4. That the type and condition of the market generally and |
| 754 | specifically to the insurer is such that the discount, credit, |
| 755 | or other rate differential or appropriate reduction in |
| 756 | deductibles is not actuarially justified; |
| 757 | 5. That granting the exemption is in the best interest of |
| 758 | the insurer; and |
| 759 | 6. That granting the exemption will not place the insurer |
| 760 | in an unfair competitive position with respect to other insurers |
| 761 | in the marketplace. |
| 762 |
|
| 763 | The office may grant the exemption upon its determination that |
| 764 | the conditions and standards set forth in this paragraph have |
| 765 | been met. The exemption is valid for 3 years after the date |
| 766 | granted. With respect to any petition for renewal of the |
| 767 | exemption, the chief executive officer of the insurer must |
| 768 | certify that there has been no material change in the conditions |
| 769 | under which the exemption was granted. |
| 770 | Section 33. Section 627.066, Florida Statutes, is |
| 771 | repealed. |
| 772 | Section 34. Paragraph (d) of subsection (2) of section |
| 773 | 627.0651, Florida Statutes, is amended to read: |
| 774 | 627.0651 Making and use of rates for motor vehicle |
| 775 | insurance.-- |
| 776 | (2) Upon receiving notice of a rate filing or rate change, |
| 777 | the office shall review the rate or rate change to determine if |
| 778 | the rate is excessive, inadequate, or unfairly discriminatory. |
| 779 | In making that determination, the office shall in accordance |
| 780 | with generally accepted and reasonable actuarial techniques |
| 781 | consider the following factors: |
| 782 | (d) Investment income reasonably expected by the insurer, |
| 783 | consistent with the insurer's investment practices, from |
| 784 | investable premiums anticipated in the filing, plus any other |
| 785 | expected income from currently invested assets representing the |
| 786 | amount expected on unearned premium reserves and loss reserves. |
| 787 | Such investment income shall not include income from invested |
| 788 | surplus. The commission may adopt rules utilizing reasonable |
| 789 | techniques of actuarial science and economics to specify the |
| 790 | manner in which insurers shall calculate investment income |
| 791 | attributable to motor vehicle insurance policies written in this |
| 792 | state and the manner in which such investment income is used in |
| 793 | the calculation of insurance rates. Such manner shall |
| 794 | contemplate the use of a positive underwriting profit allowance |
| 795 | in the rates that will be compatible with a reasonable rate of |
| 796 | return plus provisions for contingencies. The total of the |
| 797 | profit and contingency factor as specified in the filing shall |
| 798 | be utilized in computing excess profits in conjunction with s. |
| 799 | 627.066. In adopting such rules, the commission shall in all |
| 800 | instances adhere to and implement the provisions of this |
| 801 | paragraph. |
| 802 | Section 35. Subsection (4) of section 628.6017, Florida |
| 803 | Statutes, is amended to read: |
| 804 | 628.6017 Converting assessable mutual insurer.-- |
| 805 | (4) An assessable mutual insurer becoming a stock insurer |
| 806 | or a nonassessable mutual insurer shall not be subject to s. |
| 807 | 627.215 or s. 627.351(5) for 5 years following authorization of |
| 808 | the conversion by the office. However, the converted stock |
| 809 | insurer or nonassessable mutual insurer shall file all necessary |
| 810 | data required by s. 627.215. Such amounts otherwise subject to |
| 811 | s. 627.215(10) shall be maintained as surplus as to |
| 812 | policyholders and not be available for dividends for a period of |
| 813 | 5 years. |
| 814 | Section 36. Effective upon this act becoming a law, and |
| 815 | contingent upon the enactment of SB 2910, HB 1629, or similar |
| 816 | legislation, subsection (20) of section 627.64872, Florida |
| 817 | Statutes, is created to read: |
| 818 | 627.64872 Florida Health Insurance Plan.-- |
| 819 | (20) COMBINING MEMBERSHIP OF THE FLORIDA COMPREHENSIVE |
| 820 | HEALTH ASSOCIATION.-- |
| 821 | (a)1. Upon implementation of the Florida Health Insurance |
| 822 | Plan, the Florida Comprehensive Health Association, as specified |
| 823 | in s. 627.6488, is abolished as a separate nonprofit entity and |
| 824 | shall be subsumed under the Board of Directors of the Florida |
| 825 | Health Insurance Plan. All individuals actively enrolled in the |
| 826 | Florida Comprehensive Health Association shall be enrolled in |
| 827 | the plan subject to its rules and requirements, except as |
| 828 | otherwise specified in this section. Maximum lifetime benefits |
| 829 | paid to an individual in the plan may not exceed the amount |
| 830 | established under subsection (16), and benefits previously paid |
| 831 | for any individual by the Florida Comprehensive Health |
| 832 | Association shall be used in the determination of the total |
| 833 | lifetime benefits paid under the plan. |
| 834 | 2. All persons enrolled in the Florida Comprehensive |
| 835 | Health Association upon implementation of the Florida Health |
| 836 | Insurance Plan are eligible only for the benefits authorized |
| 837 | under subsection (16). Persons identified by this section shall |
| 838 | convert to the benefits authorized under subsection (16) no |
| 839 | later than January 1, 2005. |
| 840 | 3. Except as otherwise provided in this section, the |
| 841 | Florida Comprehensive Health Association shall operate under the |
| 842 | existing plan of operation without modification until the |
| 843 | adoption of the new plan of operation for the Florida Health |
| 844 | Insurance Plan. |
| 845 | (b) As a condition of doing business in this state, an |
| 846 | insurer shall pay an assessment to the board in the amount |
| 847 | prescribed by this paragraph. For operating losses incurred on |
| 848 | or after July 1, 2004, by persons previously enrolled in the |
| 849 | Florida Comprehensive Health Association, each insurer shall |
| 850 | annually be assessed by the board in the following calendar year |
| 851 | a portion of such incurred operating losses of the plan. Such |
| 852 | portion shall be determined by multiplying such operating losses |
| 853 | by a fraction, the numerator of which equals the insurer's |
| 854 | earned premium pertaining to direct writings of health insurance |
| 855 | in the state during the calendar year proceeding that for which |
| 856 | the assessment is levied, and the denominator of which equals |
| 857 | the total of all such premiums earned by participating insurers |
| 858 | in the state during such calendar year. For the purposes of this |
| 859 | section only, the term "health insurance" means any hospital and |
| 860 | medical expense incurred policy, minimum premium plan, stop-loss |
| 861 | coverage, health maintenance organization contract, prepaid |
| 862 | health clinic contract, multiple-employer welfare arrangement |
| 863 | contract, or fraternal benefit society health benefits contract, |
| 864 | whether sold as an individual or group policy or contract. The |
| 865 | term does not include any policy covering medical payment |
| 866 | coverage or personal injury protection coverage in a motor |
| 867 | vehicle policy, coverage issued as a supplement to liability |
| 868 | insurance, or workers' compensation. |
| 869 | Section 37. Section 624.428, Florida Statutes, is amended |
| 870 | to read: |
| 871 | 624.428 Licensed agent law, life and health insurances.-- |
| 872 | (1) No life insurer shall deliver or issue for delivery in |
| 873 | this state any policy of life insurance, master group life |
| 874 | insurance contract, master credit life policy or agreement, |
| 875 | annuity contract, or contract or policy of health insurance, |
| 876 | unless the application for such policy or contract is taken by, |
| 877 | and the delivery of such policy or contract is made through, a |
| 878 | resident or nonresident an insurance agent of the insurer duly |
| 879 | licensed and appointed under the law of this state, who shall |
| 880 | receive the usual commission due to an agent from such insurer. |
| 881 | (2) Each such insurer shall maintain a licensed and |
| 882 | appointed resident or nonresident agent at all times for the |
| 883 | purpose of and through whom policies or contracts issued or |
| 884 | delivered in this state shall be serviced. |
| 885 | (3) This section does not apply to policies of insurance |
| 886 | or annuity contracts on nonresidents which are applied for |
| 887 | outside, and delivered in, the state or to reissuance of |
| 888 | insurance policies or endorsements thereto which are part of a |
| 889 | mass reissuance of such policies or endorsements and do not |
| 890 | involve a change of premium or payment of agent's commissions. |
| 891 | Section 38. Section 627.0915, Florida Statutes, is amended |
| 892 | to read: |
| 893 | 627.0915 Rate filings; workers' compensation, drug-free |
| 894 | workplace, and safe employers.- |
| 895 | (1) The office shall approve rating plans for workers' |
| 896 | compensation and employer's liability insurance that give |
| 897 | specific identifiable consideration in the setting of rates to |
| 898 | employers that either implement a drug-free workplace program |
| 899 | pursuant to s. 440.102 and rules adopted under such section by |
| 900 | the commission or implement a safety program pursuant to |
| 901 | provisions of the rating plan or implement both a drug-free |
| 902 | workplace program and a safety program. The plans must be |
| 903 | actuarially sound and must state the savings anticipated to |
| 904 | result from such drug-testing and safety programs. |
| 905 | (2) An insurer offering a rate plan approved under this |
| 906 | section shall notify the employer at the time of a written offer |
| 907 | of insurance and at the time of each renewal of the policy of |
| 908 | the availability of the premium discount where a drug fee |
| 909 | workplace plan is used by the employer pursuant to s. 440.102 |
| 910 | and related rules. The Financial Services Commission may adopt |
| 911 | rules to implement the provisions of this subsection. |
| 912 |
|
| 913 | ================ T I T L E A M E N D M E N T ============= |
| 914 | Remove line 25 and insert: |
| 915 | an insured; providing criteria and limitations; amending s. |
| 916 | 626.2815, F.S.; deleting certain minimum continuing education |
| 917 | requirements; amending s. 626.015, F.S.; defining the term |
| 918 | "personal lines agent"; amending s. 626.022, F.S.; providing |
| 919 | for application; amending s. 626.241, F.S.; limiting the scope |
| 920 | of personal lines agent examinations; amending s. 626.311, F.S.; |
| 921 | limiting the types of business that may be transacted by |
| 922 | personal lines agents; amending s. 626.727, F.S.; providing that |
| 923 | certain provisions apply to personal lines agents; amending s. |
| 924 | 626.732, F.S.; revising certain education and experience |
| 925 | requirements for personal lines agents; amending s. 626.747, |
| 926 | F.S.; requiring branch agencies to have certain licensed agents |
| 927 | at each location; amending s. 627.351, F.S.; providing that |
| 928 | certain employees of the Citizens' Property Insurance |
| 929 | Corporation need not be licensed as agents; providing that the |
| 930 | act does not require the Department of Financial Services to |
| 931 | begin issuing certain licenses by the effective date of the act, |
| 932 | under specified conditions; amending s. 626.321, F.S.; limiting |
| 933 | the types of business that may be transacted by personal lines |
| 934 | agents; amending s. 628.709, F.S.; revising membership criteria |
| 935 | for mutual insurance holding companies relating to policyholders |
| 936 | of subsidiary insurance companies; amending s. 631.021, F.S.; |
| 937 | authorizing certain domiciliary courts to exercise exclusive |
| 938 | jurisdiction over certain persons under certain circumstances; |
| 939 | specifying the Circuit Court of Leon County as having exclusive |
| 940 | jurisdiction over certain proceedings and claims; amending s. |
| 941 | 631.041, F.S.; entitling the estates of certain injured insurers |
| 942 | to actual damages; authorizing a receivership court to impose |
| 943 | additional sanctions; amending s. 631.0515, F.S.; subjecting |
| 944 | certain managing general agents or holding companies to court |
| 945 | jurisdiction under certain circumstances; amending s. 631.141, |
| 946 | F.S.; specifying certain expenses as administrative and |
| 947 | recoverable by a receiver in certain proceedings; amending s. |
| 948 | 631.205, F.S.; specifying that entry of certain orders does not |
| 949 | constitute anticipatory breach of certain contracts or serve as |
| 950 | grounds for certain adverse contract actions by a reinsurer; |
| 951 | creating s. 631.206, F.S.; voiding certain contractual |
| 952 | arbitration provisions by insurers in receivership; specifying a |
| 953 | replacement arbitration provision; amending s. 631.261, F.S.; |
| 954 | voiding certain transfers or liens made by certain persons prior |
| 955 | to certain delinquency proceedings; specifying a criterion for |
| 956 | making certain transfers; amending ss. 631.262 and 631.263, |
| 957 | F.S.; specifying a criterion for making certain transfers; |
| 958 | amending ss. 631.54 and 631.904, F.S.; revising the definition |
| 959 | of covered claim; excluding certain claims rejected by another |
| 960 | state's guaranty fund under certain circumstances; providing an |
| 961 | exception; denying member insurers any right to indemnification |
| 962 | or contribution sought through third parties; creating s. |
| 963 | 634.1815, F.S.; providing conditions under which a salesperson |
| 964 | of a motor vehicle service agreement company may rebate his or |
| 965 | her commission; creating s. 634.3205, F.S.; providing conditions |
| 966 | under which a sales representative of a home warranty |
| 967 | association may rebate his or her commission; amending s. |
| 968 | 634.406, F.S.; providing conditions under which a service |
| 969 | warranty association is exempt from certain premium reserve and |
| 970 | liability insurance requirements and may allow premiums to |
| 971 | exceed certain limits; creating s. 634.4225, F.S.; providing |
| 972 | conditions under which a sales representative of a service |
| 973 | warranty association may rebate his or her commission; amending |
| 974 | s. 624.4072, F.S.; specifying applicability of certain |
| 975 | exemptions for minority-owned property and casualty insurers; |
| 976 | amending s. 627.0629, F.S.; authorizing an exemption for certain |
| 977 | insurers under certain circumstances; repealing s. 627.066, |
| 978 | F.S., relating to insurance profits; amending ss. 627.0651 and |
| 979 | 628.6017, F.S., to conform; creating s. 627.64872(20), F.S.; |
| 980 | defining the term "health insurance" for purposes of this |
| 981 | section; creating s. 17.0416, F.S.; amending s. 624.428, F.S.; |
| 982 | clarifying provisions relating to resident agent requirements |
| 983 | for insurers issuing specified types of life insurance policies; |
| 984 | amending s. 627.0915, F.S.; providing for notice by insurers to |
| 985 | employers of the availability of premium discounts where drug |
| 986 | free workplace programs are used; authorizing the Financial |
| 987 | Services Commission to adopt rules; providing |