| 1 | A bill to be entitled |
| 2 | An act relating to life insurance and annuity contracts; |
| 3 | amending s. 624.402, F.S.; providing that a certificate of |
| 4 | authority is not required for certain life insurance |
| 5 | policies or annuity contracts issued by an insurer |
| 6 | domiciled outside the United States and covering only |
| 7 | persons who are not residents of the United States; |
| 8 | requiring that the Office of Insurance Regulation |
| 9 | determine that the insurer meets certain requirements; |
| 10 | requiring the insurer to disclose certain information; |
| 11 | providing for the office to determine when the insurer is |
| 12 | no longer eligible for the exemption; providing an |
| 13 | exemption from certain taxes; providing an effective date. |
| 14 |
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| 15 | Be It Enacted by the Legislature of the State of Florida: |
| 16 |
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| 17 | Section 1. Subsection (8) is added to section 624.402, |
| 18 | Florida Statutes, to read: |
| 19 | 624.402 Exceptions, certificate of authority required.--A |
| 20 | certificate of authority shall not be required of an insurer |
| 21 | with respect to: |
| 22 | (8)(a) Life insurance policies or annuity contracts issued |
| 23 | by an insurer domiciled outside the United States covering only |
| 24 | persons who are not residents of the United States at the time |
| 25 | of issuance, provided: |
| 26 | 1. The office determines that the insurer meets the same |
| 27 | requirements as an eligible surplus lines insurer as set forth |
| 28 | in s. 626.918(2). |
| 29 | 2. The insurer provides to the applicant for the policy or |
| 30 | contract a copy of financial statements of the insurer as of a |
| 31 | date not earlier than 120 days prior to the date of provision of |
| 32 | such financial statements and discloses in writing to the |
| 33 | applicant, in clear and conspicuous language: |
| 34 | a. The date of organization of the insurer. |
| 35 | b. The identity of and rating assigned by each recognized |
| 36 | insurance company rating organization that has rated the insurer |
| 37 | or, if applicable, that the insurer is unrated. |
| 38 | c. That the insurer does not hold a certificate of |
| 39 | authority issued in Florida and that the Office of Insurance |
| 40 | Regulation does not exercise regulatory oversight over the |
| 41 | insurer. |
| 42 | d. The identity and address of the regulatory authority |
| 43 | exercising oversight of the insurer. |
| 44 | (b) If at any time the office has reason to believe that |
| 45 | an insurer issuing policies or contracts pursuant to this |
| 46 | subsection is insolvent or in unsound financial condition, does |
| 47 | not make reasonable prompt payment of benefits, or is no longer |
| 48 | eligible under the conditions specified in this subsection, the |
| 49 | office shall withdraw the eligibility of the insurer to issue |
| 50 | policies or contracts pursuant to this subsection without having |
| 51 | a certificate of authority issued by the office. |
| 52 | (c) This subsection does not provide an exception to the |
| 53 | agent licensure requirements of chapter 626. Any insurer issuing |
| 54 | policies or contracts pursuant to this subsection shall appoint |
| 55 | the agents that the insurer uses to sell such policies or |
| 56 | contracts, as provided in chapter 626. |
| 57 | (d) An insurer issuing policies or contracts pursuant to |
| 58 | this subsection is subject to part IX of chapter 626, Unfair |
| 59 | Insurance Trade Practices, and the office may take such actions |
| 60 | against the insurer for a violation as are provided in that |
| 61 | part. |
| 62 | (e) Policies and contracts issued pursuant to this |
| 63 | subsection are not subject to the premium tax specified in s. |
| 64 | 624.509. |
| 65 | Section 2. This act shall take effect July 1, 2004. |