HB 1687

CS

CHAMBER ACTION

2	The Committee on Insurance recommends the following:
3
4	Committee Substitute
5	Remove the entire bill and insert:
6	A bill to be entitled
7	An act relating to insurers; amending s. 626.321, F.S.;
8	limiting the types of business that may be transacted by
9	personal lines agents; amending s. 626.854, F.S.;
10	specifying duties of a public adjuster relating to
11	contractors; prohibiting a public adjuster from
12	restricting certain access and communications; amending s.
13	631.021, F.S.; authorizing certain domiciliary courts to
14	exercise exclusive jurisdiction over certain persons under
15	certain circumstances; specifying the Circuit Court of
16	Leon County as having exclusive jurisdiction over certain
17	proceedings and claims; amending s. 631.041, F.S.;
18	entitling the estates of certain injured insurers to
19	actual damages; authorizing a receivership court to impose
20	additional sanctions; amending s. 631.0515, F.S.;
21	subjecting certain managing general agents or holding
22	companies to court jurisdiction under certain
23	circumstances; amending s. 631.141, F.S.; specifying
24	certain expenses as administrative and recoverable by a
25	receiver in certain proceedings; amending s. 631.205,
26	F.S.; specifying that entry of certain orders does not
27	constitute anticipatory breach of certain contracts or
28	serve as grounds for certain adverse contract actions by a
29	reinsurer; creating s. 631.206, F.S.; voiding certain
30	contractual arbitration provisions by insurers in
31	receivership; specifying a replacement arbitration
32	provision; amending s. 631.261, F.S.; voiding certain
33	transfers or liens made by certain persons prior to
34	certain delinquency proceedings; specifying a criterion
35	for making certain transfers; amending ss. 631.262 and
36	631.263, F.S.; specifying a criterion for making certain
37	transfers; amending s. 625.081, F.S.; excepting credit
38	disability insurance from certain active life reserve
39	requirements for health insurance; amending s. 625.121,
40	F.S.; providing for additional minimum standards for
41	valuation of certain policies and contracts; providing
42	minimum reserve requirements for credit life and
43	disability policies; repealing s. 625.131, F.S., relating
44	to special reserve bases for credit life and disability
45	policies; providing an effective date.
46
47	Be It Enacted by the Legislature of the State of Florida:
48
49	Section 1.  Paragraph (d) of subsection (1) of section
50	626.321, Florida Statutes, is amended to read:
51	626.321  Limited licenses.--
52	(1)  The department shall issue to a qualified individual,
53	or a qualified individual or entity under paragraphs (c), (d),
54	(e), and (i), a license as agent authorized to transact a
55	limited class of business in any of the following categories:
56	(d)  Baggage and motor vehicle excess liability
57	insurance.--
58	1.  License covering only insurance of personal effects
59	except as provided in subparagraph 2. The license may be issued
60	only:
61	a.  To a full-time salaried employee of a common carrier or
62	a full-time salaried employee or owner of a transportation
63	ticket agency, which person is engaged in the sale or handling
64	of transportation of baggage and personal effects of travelers,
65	and may authorize the sale of such insurance only in connection
66	with such transportation; or
67	b.  To the full-time salaried employee of a licensed
68	general lines agent or to, a full-time salaried employee of a
69	business which offers motor vehicles for rent or lease, or to a
70	business office of a business entity that which offers motor
71	vehicles for rent or lease if insurance sales activities
72	authorized by the license are in connection with and incidental
73	to the rental of a motor vehicle limited to full-time salaried
74	employees. An entity applying for a license under this
75	subsection:
76	(I)  Is required to submit only one application for a
77	license under s. 626.171. The requirements of s. 626.171(5)
78	shall apply only to the officers and directors of the entity
79	submitting the application.
80	(II)  Is required to obtain a license for each office,
81	branch office, or place of business making use of the entity's
82	business name by applying to the department for the license on a
83	simplified application form developed by rule of the department
84	for this purpose.
85	(III)  Is required to pay the applicable fees for a license
86	as prescribed in s. 624.501, be appointed under s. 626.112, and
87	pay the prescribed appointment fee under s. 624.501. A licensed
88	and appointed entity shall be directly responsible and
89	accountable for all acts of the licensee's employees.
90
91	The purchaser of baggage insurance shall be provided written
92	information disclosing that the insured's homeowner's policy may
93	provide coverage for loss of personal effects and that the
94	purchase of such insurance is not required in connection with
95	the purchase of tickets or in connection with the lease or
96	rental of a motor vehicle.
97	2.  A business entity that office licensed pursuant to
98	subparagraph 1., or a person licensed pursuant to subparagraph
99	1. who is a full-time salaried employee of a business which
100	offers motor vehicles for rent or lease, may include lessees
101	under a master contract providing coverage to the lessor or may
102	transact excess motor vehicle liability insurance providing
103	coverage in excess of the standard liability limits provided by
104	the lessor in its lease to a person renting or leasing a motor
105	vehicle from the licensee's employer for liability arising in
106	connection with the negligent operation of the leased or rented
107	motor vehicle, provided that the lease or rental agreement is
108	for not more than 30 days; that the lessee is not provided
109	coverage for more than 30 consecutive days per lease period,
110	and, if the lease is extended beyond 30 days, the coverage may
111	be extended one time only for a period not to exceed an
112	additional 30 days; that the lessee is given written notice that
113	his or her personal insurance policy providing coverage on an
114	owned motor vehicle may provide additional excess coverage; and
115	that the purchase of the insurance is not required in connection
116	with the lease or rental of a motor vehicle. The excess
117	liability insurance may be provided to the lessee as an
118	additional insured on a policy issued to the licensee's
119	employer.
120	3.  A business entity that office licensed pursuant to
121	subparagraph 1., or a person licensed pursuant to subparagraph
122	1. who is a full-time salaried employee of a business which
123	offers motor vehicles for rent or lease, may, as an agent of an
124	insurer, transact insurance that provides coverage for the
125	liability of the lessee to the lessor for damage to the leased
126	or rented motor vehicle if:
127	a.  The lease or rental agreement is for not more than 30
128	days; or the lessee is not provided coverage for more than 30
129	consecutive days per lease period, but, if the lease is extended
130	beyond 30 days, the coverage may be extended one time only for a
131	period not to exceed an additional 30 days;
132	b.  The lessee is given written notice that his or her
133	personal insurance policy that provides coverage on an owned
134	motor vehicle may provide such coverage with or without a
135	deductible; and
136	c.  The purchase of the insurance is not required in
137	connection with the lease or rental of a motor vehicle.
138	Section 2.  Subsections (1) and (3) of section 626.854,
139	Florida Statutes, are amended to read:
140	626.854  "Public adjuster" defined; prohibitions.--The
141	Legislature finds that it is necessary for the protection of the
142	public to regulate public insurance adjusters and to prevent the
143	unauthorized practice of law.
144	(1)  A "public adjuster" is any person, except a duly
145	licensed attorney at law as hereinafter in s. 626.860 provided,
146	or an employee of such an attorney under the attorney's

CODING: Words stricken are deletions; words underlined are additions.