HB 1695

1	A bill to be entitled
2	An act relating to regulation of insurance adjusters;
3	transferring regulation of insurance adjusters from the
4	Office of Insurance Regulation to the Department of
5	Financial Services; amending ss. 20.121, 110.1227, 408.05,
6	501.212, 516.35, 624.313, 624.317, 624.501, 626.016,
7	626.112, 626.161, 626.171, 626.181, 626.191, 626.211,
8	626.221, 626.231, 626.241, 626.251, 626.261, 626.266,
9	626.271, 626.281, 626.2817, 626.291, 626.301, 626.371,
10	626.381, 626.431, 626.461, 626.471, 626.521, 626.541,
11	626.551, 626.611, 626.621, 626.631, 626.641, 626.661,
12	626.681, 626.691, 626.692, 626.8582, 626.8584, 626.859,
13	626.863, 626.865, 626.866, 626.867, 626.869, 626.8695,
14	626.8696, 626.8697, 626.8698, 626.870, 626.871, 626.872,
15	626.873, 626.8732, 626.8734, 626.8736, 626.8738, 626.874,
16	626.878, 627.7012, 626.9543, 626.989, 627.0628, 627.285,
17	and 627.6699, F.S.; reallocating duties and
18	responsibilities of the department, the office, and the
19	Financial Services Commission to conform; reallocating
20	duties and responsibilities of the director of the office
21	and the Chief Financial Officer to conform; specifying
22	that the transfer does not affect the regulation of
23	adjusters in administrative or judicial proceedings;
24	providing for substitution of appropriate parties in
25	interest in such proceedings; preserving certain licenses,
26	forms, and actions; specifying application of rules of the
27	office regulating adjusters as rules of the department;
28	providing an effective date.
29
30	Be It Enacted by the Legislature of the State of Florida:
31
32	Section 1.  Paragraph (a) of subsection (3) of section
33	20.121, Florida Statutes, is amended to read:
34	20.121  Department of Financial Services.--There is created
35	a Department of Financial Services.
36	(3)  FINANCIAL SERVICES COMMISSION.--Effective January 7,
37	2003, there is created within the Department of Financial
38	Services the Financial Services Commission, composed of the
39	Governor, the Attorney General, the Chief Financial Officer, and
40	the Commissioner of Agriculture, which shall for purposes of
41	this section be referred to as the commission. Commission
42	members shall serve as agency head of the Financial Services
43	Commission. The commission shall be a separate budget entity and
44	shall be exempt from the provisions of s. 20.052. Commission
45	action shall be by majority vote consisting of at least three
46	affirmative votes. The commission shall not be subject to
47	control, supervision, or direction by the Department of
48	Financial Services in any manner, including purchasing,
49	transactions involving real or personal property, personnel, or
50	budgetary matters.
51	(a)  Structure.--The major structural unit of the
52	commission is the office. Each office shall be headed by a
53	director. The following offices are established:
54	1.  The Office of Insurance Regulation, which shall be
55	responsible for all activities concerning insurers and other
56	risk bearing entities, including licensing, rates, policy forms,
57	market conduct, claims, adjusters, issuance of certificates of
58	authority, solvency, viatical settlements, premium financing,
59	and administrative supervision, as provided under the insurance
60	code or chapter 636. The head of the Office of Insurance
61	Regulation is the Director of the Office of Insurance
62	Regulation.
63	2.  The Office of Financial Regulation, which shall be
64	responsible for all activities of the Financial Services
65	Commission relating to the regulation of banks, credit unions,
66	other financial institutions, finance companies, and the
67	securities industry. The head of the office is the Director of
68	the Office of Financial Regulation. The Office of Financial
69	Regulation shall include a Bureau of Financial Investigations,
70	which shall function as a criminal justice agency for purposes
71	of ss. 943.045-943.08 and shall have a separate budget. The
72	bureau may conduct investigations within or outside this state
73	as the bureau deems necessary to aid in the enforcement of this
74	section. If, during an investigation, the office has reason to
75	believe that any criminal law of this state has or may have been
76	violated, the office shall refer any records tending to show
77	such violation to state or federal law enforcement or
78	prosecutorial agencies and shall provide investigative
79	assistance to those agencies as required.
80	Section 2.  Paragraph (b) of subsection (6) of section
81	110.1227, Florida Statutes, is amended to read:
82	110.1227  Florida Employee Long-Term-Care Plan Act.--
83	(6)  A Florida Employee Long-Term-Care Plan Board of
84	Directors is created, composed of nine members who shall serve
85	2-year terms, to be appointed after May 1, 1999, as follows:
86	(b)  The Director of the Office of Insurance Regulation
87	Chief Financial Officer shall appoint an actuary.
88	Section 3.  Paragraph (a) of subsection (8) of section
89	408.05, Florida Statutes, is amended to read:
90	408.05  State Center for Health Statistics.--
91	(8)  STATE COMPREHENSIVE HEALTH INFORMATION SYSTEM ADVISORY
92	COUNCIL.--
93	(a)  There is established in the agency the State
94	Comprehensive Health Information System Advisory Council to
95	assist the center in reviewing the comprehensive health
96	information system and to recommend improvements for such
97	system. The council shall consist of the following members:
98	1.  An employee of the Executive Office of the Governor, to
99	be appointed by the Governor.
100	2.  An employee of the Office of Insurance Regulation
101	Department of Financial Services, to be appointed by the
102	director of the office Chief Financial Officer.
103	3.  An employee of the Department of Education, to be
104	appointed by the Commissioner of Education.
105	4.  Ten persons, to be appointed by the Secretary of Health
106	Care Administration, representing other state and local
107	agencies, state universities, the Florida Association of
108	Business/Health Coalitions, local health councils, professional
109	health-care-related associations, consumers, and purchasers.
110	Section 4.  Subsection (4) of section 501.212, Florida
111	Statutes, is amended to read:
112	501.212  Application.--This part does not apply to:
113	(4)  Any person or activity regulated under laws
114	administered by:
115	(a)  The Department of Financial Services or the Office of
116	Insurance Regulation of the Financial Services Commission; or
117	(b)  Banks and savings and loan associations regulated by
118	the Office of Financial Regulation of the Financial Services
119	Commission; or
120	(c)  Banks or savings and loan associations regulated by
121	federal agencies; or
122	(d)  Any person or activity regulated under the laws
123	administered by the former Department of Insurance that are now
124	administered by the Department of Financial Services.
125	Section 5.  Subsection (1) of section 516.35, Florida
126	Statutes, is amended to read:
127	516.35  Credit insurance must comply with credit insurance
128	act.--
129	(1)  Tangible property offered as security may be
130	reasonably insured against loss for a reasonable term,
131	considering the circumstances of the loan. If such insurance is
132	sold at standard rates through a person duly licensed by the
133	Department Office of Insurance Regulation of the Financial
134	Services Commission and if the policy is payable to the borrower
135	or any member of her or his family, it shall not be deemed to be
136	a collateral sale, purchase, or agreement even though a
137	customary mortgagee clause is attached or the licensee is a
138	coassured.
139	Section 6.  Subsection (2) of section 624.313, Florida
140	Statutes, is amended to read:
141	624.313  Publications.--
142	(2)(a)  The department may prepare and have printed and
143	published in pamphlet or book form the following, as needed:
144	(a)1.  As needed, Questions and answers for the use of
145	persons applying for an examination for licensing as agents for
146	property, casualty, surety, health, and miscellaneous insurers.
147	(b)2.  As needed, Questions and answers for the use of
148	persons applying for an examination for licensing as agents for
149	life and health insurers.
150	(c)(b)  The office may prepare and have printed and
151	published in pamphlet or book form, As needed, Questions and
152	answers for the use of persons applying for an examination for
153	licensing as adjusters.
154	Section 7.  Section 624.317, Florida Statutes, is amended
155	to read:
156	624.317  Investigation of agents, adjusters,
157	administrators, service companies, and others.--If it has reason
158	to believe that any person has violated or is violating any
159	provision of this code, or upon the written complaint signed by
160	any interested person indicating that any such violation may
161	exist:
162	(1)  The department shall conduct such investigation as it
163	deems necessary of the accounts, records, documents, and
164	transactions pertaining to or affecting the insurance affairs of
165	any general agent, adjuster, surplus line agent, managing
166	general agent, insurance agent, customer representative, service
167	representative, or other person subject to its jurisdiction,
168	subject to the requirements of s. 626.601.
169	(2)  The office shall conduct such investigation as it
170	deems necessary of the accounts, records, documents, and
171	transactions pertaining to or affecting the insurance affairs of
172	any:
173	(a)  Adjuster, Administrator, service company, or other
174	person subject to its jurisdiction.
175	(b)  Person having a contract or power of attorney under
176	which she or he enjoys in fact the exclusive or dominant right
177	to manage or control an insurer.
178	(c)  Person engaged in or proposing to be engaged in the
179	promotion or formation of:
180	1.  A domestic insurer;
181	2.  An insurance holding corporation; or
182	3.  A corporation to finance a domestic insurer or in the
183	production of the domestic insurer's business.
184	Section 8.  Subsection (12) of section 624.501, Florida
185	Statutes, is amended to read:
186	624.501  Filing, license, appointment, and miscellaneous
187	fees.--The department, commission, or office, as appropriate,
188	shall collect in advance, and persons so served shall pay to it
189	in advance, fees, licenses, and miscellaneous charges as
190	follows:
191	(12)  Adjusters:
192	(a)  Adjuster's original appointment and biennial renewal
193	or continuation thereof, appointment fee
194	$60.00
195	(b)  Nonresident adjuster's original appointment and
196	biennial renewal or continuation thereof, appointment fee
197	$60.00
198	(c)  Emergency adjuster's license, appointment fee
199	$10.00
200	(d)  Fee to cover actual cost of credit report, when such
201	report must be secured by department office.
202	Section 9.  Subsections (1) and (2) of section 626.016,
203	Florida Statutes, are amended to read:
204	626.016  Powers and duties of department, commission, and
205	office.--
206	(1)  The powers and duties of the Chief Financial Officer
207	and the department specified in this part apply only with
208	respect to insurance agents, managing general agents, insurance
209	adjusters, reinsurance intermediaries, viatical settlement
210	brokers, customer representatives, service representatives, and
211	agencies.
212	(2)  The powers and duties of the commission and office
213	specified in this part apply only with respect to insurance
214	adjusters, service companies, administrators, and viatical
215	settlement providers and contracts.
216	Section 10.  Paragraph (a) of subsection (1) of section
217	626.112, Florida Statutes, is amended to read:
218	626.112  License and appointment required; agents, customer
219	representatives, adjusters, insurance agencies, service
220	representatives, managing general agents.--
221	(1)(a)  No person may be, act as, or advertise or hold
222	himself or herself out to be an insurance agent, insurance
223	adjuster, or customer representative unless he or she is
224	currently licensed by the department and appointed by an
225	appropriate appointing entity or person one or more insurers. No
226	person may be, act as, or advertise or hold himself or herself
227	out to be an insurance adjuster unless he or she is currently
228	licensed by the office and appointed by one or more insurers.
229
230	However, an employee leasing company licensed pursuant to
231	chapter 468 which is seeking to enter into a contract with an
232	employer that identifies products and services offered to
233	employees may deliver proposals for the purchase of employee
234	leasing services to prospective clients of the employee leasing
235	company setting forth the terms and conditions of doing
236	business; classify employees as permitted by s. 468.529; collect
237	information from prospective clients and other sources as
238	necessary to perform due diligence on the prospective client and
239	to prepare a proposal for services; provide and receive
240	enrollment forms, plans, and other documents; and discuss or
241	explain in general terms the conditions, limitations, options,
242	or exclusions of insurance benefit plans available to the client
243	or employees of the employee leasing company were the client to
244	contract with the employee leasing company. Any advertising
245	materials or other documents describing specific insurance
246	coverages must identify and be from a licensed insurer or its
247	licensed agent or a licensed and appointed agent employed by the
248	employee leasing company. The employee leasing company may not
249	advise or inform the prospective business client or individual
250	employees of specific coverage provisions, exclusions, or
251	limitations of particular plans. As to clients for which the
252	employee leasing company is providing services pursuant to s.
253	468.525(4), the employee leasing company may engage in
254	activities permitted by ss. 626.7315, 626.7845, and 626.8305,
255	subject to the restrictions specified in those sections. If a
256	prospective client requests more specific information concerning
257	the insurance provided by the employee leasing company, the
258	employee leasing company must refer the prospective business
259	client to the insurer or its licensed agent or to a licensed and
260	appointed agent employed by the employee leasing company.
261	Section 11.  Section 626.161, Florida Statutes, is amended
262	to read:
263	626.161  Licensing forms.--The department shall prescribe
264	and furnish all printed forms required in connection with the
265	application for issuance of and termination of all licenses and
266	appointments, except that, with respect to adjusters, the
267	commission shall prescribe and the office shall furnish such
268	forms.
269	Section 12.  Subsection (1), paragraph (f) of subsection
270	(2), and subsection (5) of section 626.171, Florida Statutes,
271	are amended to read:
272	626.171  Application for license.--
273	(1)  The department or office shall not issue a license as
274	agent, customer representative, adjuster, insurance agency,
275	service representative, managing general agent, or reinsurance
276	intermediary to any person except upon written application
277	therefor filed with it, qualification therefor, and payment in
278	advance of all applicable fees. Any such application shall be
279	made under the oath of the applicant and be signed by the
280	applicant. Beginning November 1, 2002, the department shall
281	accept the uniform application for nonresident agent licensing.
282	The department may adopt revised versions of the uniform
283	application by rule.
284	(2)  In the application, the applicant shall set forth:
285	(f)  Such other or additional information as the department
286	or office may deem proper to enable it to determine the
287	character, experience, ability, and other qualifications of the
288	applicant to hold himself or herself out to the public as an
289	insurance representative.
290	(5)  An application for a license as an agent, customer
291	representative, adjuster, insurance agency, service
292	representative, managing general agent, or reinsurance
293	intermediary must be accompanied by a set of the individual
294	applicant's fingerprints, or, if the applicant is not an
295	individual, by a set of the fingerprints of the sole proprietor,
296	majority owner, partners, officers, and directors, on a form
297	adopted by rule of the department or commission and accompanied
298	by the fingerprint processing fee set forth in s. 624.501.
299	Fingerprints shall be used to investigate the applicant's
300	qualifications pursuant to s. 626.201. The fingerprints shall be
301	taken by a law enforcement agency or other department-approved
302	entity.
303	Section 13.  Section 626.181, Florida Statutes, is amended
304	to read:
305	626.181  Number of applications for licensure
306	required.--After a license as agent, customer representative, or
307	adjuster has been issued to an individual, the same individual
308	shall not be required to take another examination for a similar
309	license, regardless, in the case of an agent, of the number of
310	insurers to be represented by him or her as agent, unless:
311	(1)  Specifically ordered by the department or office to
312	complete a new application for license; or
313	(2)  During any period of 48 months since the filing of the
314	original license application, such individual was not appointed
315	as an agent, customer representative, or adjuster, unless the
316	failure to be so appointed was due to military service, in which
317	event the period within which a new application is not required
318	may, in the discretion of the department or office, be extended
319	to 12 months following the date of discharge from military
320	service if the military service does not exceed 3 years, but in
321	no event to extend under this clause for a period of more than 6
322	years from the date of filing of the original application for
323	license.
324	Section 14.  Section 626.191, Florida Statutes, is amended
325	to read:
326	626.191  Repeated applications.--The failure of an
327	applicant to secure a license upon an application shall not
328	preclude him or her from applying again as many times as
329	desired, but the department or office shall not give
330	consideration to or accept any further application by the same
331	individual for a similar license dated or filed within 30 days
332	subsequent to the date the department or office denied the last
333	application, except as provided in s. 626.281.
334	Section 15.  Section 626.211, Florida Statutes, is amended
335	to read:
336	626.211  Approval, disapproval of application.--
337	(1)  If upon the basis of a completed application for
338	license and such further inquiry or investigation as the
339	department or office may make concerning an applicant the
340	department or office is satisfied that, subject to any
341	examination required to be taken and passed by the applicant for
342	a license, the applicant is qualified for the license applied
343	for and that all pertinent fees have been paid, it shall approve
344	the application. The department or office shall not deny, delay,
345	or withhold approval of an application due to the fact that it
346	has not received a criminal history report based on the
347	applicant's fingerprints.
348	(2)  Upon approval of an applicant for license as agent,
349	customer representative, or adjuster who is subject to written
350	examination, the department or office shall notify the applicant
351	when and where he or she may take the required examination.
352	(3)  Upon approval of an applicant for license who is not
353	subject to examination, the department or office shall promptly
354	issue the license.
355	(4)  If upon the basis of the completed application and
356	such further inquiry or investigation the department or office
357	deems the applicant to be lacking in any one or more of the
358	required qualifications for the license applied for, the
359	department or office shall disapprove the application and notify
360	the applicant, stating the grounds of disapproval.
361	Section 16.  Subsection (1) and paragraphs (a), (c), (d),
362	(f), (g), and (l) of subsection (2) of section 626.221, Florida
363	Statutes, are amended to read:
364	626.221  Examination requirement; exemptions.--
365	(1)  The department or office shall not issue any license
366	as agent, customer representative, or adjuster to any individual
367	who has not qualified for, taken, and passed to the satisfaction
368	of the department or office a written examination of the scope
369	prescribed in s. 626.241.
370	(2)  However, no such examination shall be necessary in any
371	of the following cases:
372	(a)  An applicant for renewal of appointment as an agent,
373	customer representative, or adjuster, unless the department or
374	office determines that an examination is necessary to establish
375	the competence or trustworthiness of such applicant.
376	(c)  In the discretion of the department or office, an
377	applicant for reinstatement of license or appointment as an
378	agent, customer representative, or adjuster whose license has
379	been suspended within 2 years prior to the date of application
380	or written request for reinstatement.
381	(d)  An applicant who, within 2 years prior to application
382	for license and appointment as an agent, customer
383	representative, or adjuster, was a full-time salaried employee
384	of the department or office and had continuously been such an
385	employee with responsible insurance duties for not less than 2
386	years and who had been a licensee within 2 years prior to
387	employment by the department or office with the same class of
388	license as that being applied for.
389	(f)  A person who has been licensed and appointed as a
390	public adjuster or independent adjuster, or licensed and
391	appointed either as an agent or company adjuster as to all
392	property, casualty, and surety insurances, may be licensed and
393	appointed as a company adjuster as to any of such insurances, or
394	as an independent adjuster or public adjuster, without
395	additional written examination if an application for appointment
396	is filed with the department office within 48 months following
397	the date of cancellation or expiration of the prior appointment.
398	(g)  A person who has been licensed as an adjuster for
399	motor vehicle, property and casualty, workers' compensation, and
400	health insurance may be licensed as such an adjuster without
401	additional written examination if his or her application for
402	appointment is filed with the department office within 48 months
403	after cancellation or expiration of the prior license.
404	(l)  An applicant for license as an adjuster who has the
405	designation of Accredited Claims Adjuster (ACA) from a
406	regionally accredited postsecondary institution in this state,
407	or the designation of Professional Claims Adjuster (PCA) from
408	the Professional Career Institute, whose curriculum has been
409	approved by the department office and whose curriculum includes
410	comprehensive analysis of basic property and casualty lines of
411	insurance and testing at least equal to that of standard
412	department office testing for the all-lines adjuster license.
413	The department commission shall adopt rules establishing
414	standards for the approval of curriculum.
415	Section 17.  Section 626.231, Florida Statutes, is amended
416	to read:
417	626.231  Eligibility for examination.--No person shall be
418	permitted to take an examination for license until his or her
419	application for the license has been approved and the required
420	fees have been received by the department or office or a person
421	designated by the department or office to administer the
422	examination.
423	Section 18.  Subsection (1) of section 626.241, Florida
424	Statutes, is amended to read:
425	626.241  Scope of examination.--
426	(1)  Each examination for a license as agent, customer
427	representative, or adjuster shall be of such scope as is deemed
428	by the department or office to be reasonably necessary to test
429	the applicant's ability and competence and knowledge of the
430	kinds of insurance and transactions to be handled under the
431	license applied for, of the duties and responsibilities of such
432	a licensee, and of the pertinent provisions of the laws of this
433	state.
434	Section 19.  Section 626.251, Florida Statutes, is amended
435	to read:
436	626.251  Time and place of examination; notice.--
437	(1)  The department or office or a person designated by the
438	department or office shall mail written notice of the time and
439	place of the examination to each applicant for license required
440	to take an examination who will be eligible to take the
441	examination as of the examination date. The notice shall be so
442	mailed, postage prepaid, and addressed to the applicant at his
443	or her address shown on the application for license or at such
444	other address as requested by the applicant in writing filed
445	with the department or office prior to the mailing of the
446	notice. Notice shall be deemed given when so mailed.
447	(2)  The examination shall be held in an adequate and
448	designated examination center in this state.
449	(3)  The department or office shall make an examination
450	available to the applicant, to be taken as soon as reasonably
451	possible after the applicant is eligible therefor. Any
452	examination required under this part shall be available in this
453	state at a designated examination center.
454	Section 20.  Section 626.261, Florida Statutes, is amended
455	to read:
456	626.261  Conduct of examination.--
457	(1)  The applicant for license shall appear in person and
458	personally take the examination for license at the time and
459	place specified by the department or office or by a person
460	designated by the department or office.
461	(2)  The examination shall be conducted by an employee of
462	the department or office or a person designated by the
463	department or office for that purpose.
464	(3)  The questions propounded shall be as prepared by the
465	department or office, or by a person designated by the
466	department or office for that purpose, consistent with the
467	applicable provisions of this code.
468	(4)  All examinations shall be given and graded in a fair
469	and impartial manner and without unfair discrimination in favor
470	of or against any particular applicant.
471	Section 21.  Section 626.266, Florida Statutes, is amended
472	to read:
473	626.266  Printing of examinations or related materials to
474	preserve examination security.--A contract let for the
475	development, administration, or grading of examinations or
476	related materials by the department or office pursuant to the
477	various agent, customer representative, or adjuster licensing
478	and examination provisions of this code may include the printing
479	or furnishing of these examinations or related materials in
480	order to preserve security. Any such contract shall be let as a
481	contract for a contractual service pursuant to s. 287.057.
482	Section 22.  Subsection (1) of section 626.271, Florida
483	Statutes, is amended to read:
484	626.271  Examination fee; determination, refund.--
485	(1)  Prior to being permitted to take an examination, each
486	applicant who is subject to examination shall pay to the
487	department or office or a person designated by the department or
488	office an examination fee. A separate and additional examination
489	fee shall be payable for each separate class of license applied
490	for, notwithstanding that all such examinations are taken on the
491	same date and at the same place.
492	Section 23.  Section 626.281, Florida Statutes, is amended
493	to read:
494	626.281  Reexamination.--
495	(1)  Any applicant for license who has either:
496	(a)  Taken an examination and failed to make a passing
497	grade, or
498	(b)  Failed to appear for the examination or to take or
499	complete the examination at the time and place specified in the
500	notice of the department or office,
501
502	may take additional examinations, after filing with the
503	department or office an application for reexamination together
504	with applicable fees. The failure of an applicant to pass an
505	examination or the failure to appear for the examination or to
506	take or complete the examination does not preclude the applicant
507	from taking subsequent examinations.
508	(2)  The department or office may require any individual
509	whose license as an agent, customer representative, or adjuster
510	has expired or has been suspended to pass an examination prior
511	to reinstating or relicensing the individual as to any class of
512	license. The examination fee shall be paid as to each
513	examination.
514	Section 24.  Section 626.2817, Florida Statutes, is amended
515	to read:
516	626.2817  Regulation of course providers, instructors,
517	school officials, and monitor groups involved in prelicensure
518	education for insurance agents and other licensees.--
519	(1)  Any course provider, instructor, school official, or
520	monitor group must be approved by and registered with the
521	department or office before offering prelicensure education
522	courses for insurance agents and other licensees.
523	(2)  The department or commission shall adopt rules
524	establishing standards for the approval, registration,
525	discipline, or removal from registration of course providers,
526	instructors, school officials, and monitor groups. The standards
527	must be designed to ensure that such persons have the knowledge,
528	competence, and integrity to fulfill the educational objectives
529	of the prelicensure requirements of this chapter and chapter 648
530	and to assure that insurance agents and licensees are competent
531	to engage in the activities authorized under the license.
532	(3)  The department or commission shall adopt rules to
533	establish a process for determining compliance with the
534	prelicensure requirements of this chapter and chapter 648. The
535	department or commission shall adopt rules prescribing the forms
536	necessary to administer the prelicensure requirements.
537	Section 25.  Section 626.291, Florida Statutes, is amended
538	to read:
539	626.291  Denial, issuance of license.--
540	(1)  Within 30 days after the applicant has completed any
541	examination required under s. 626.221, the department or office
542	or its designee shall provide a score report; and, if it finds
543	that the applicant has received a passing grade, the department
544	or office shall within such period notify the applicant and
545	issue and transmit the license to which such examination
546	related. If it finds that the applicant did not make a passing
547	grade on the examination for a particular license, the
548	department or office or its designee shall within this period
549	provide notice to the applicant to that effect and of its denial
550	of the license.
551	(2)  As to an applicant for a license for which no
552	examination is required, the department or office shall promptly
553	issue the license applied for as soon as it has approved the
554	application.
555	(3)  The department or office shall not deny, delay, or
556	withhold issuance of a license due to the fact that it has not
557	received a criminal history report based on the applicant's
558	fingerprints.
559	Section 26.  Section 626.301, Florida Statutes, is amended
560	to read:
561	626.301  Form and contents of licenses, in general.--Each
562	license issued by the department or office shall be in such form
563	as the department or commission may designate and contain the
564	licensee's name, lines of authority the licensee is authorized
565	to transact, the licensee's personal identification number, the
566	date of issuance, and any other information the department or
567	commission deems necessary to fully identify the licensee and
568	the authority being granted. The department or commission may by
569	rule require photographs of applicants as a part of the
570	licensing process.
571	Section 27.  Section 626.371, Florida Statutes, is amended
572	to read:
573	626.371  Payment of fees, taxes for appointment period
574	without appointment.--
575	(1)  All initial appointments shall be submitted to the
576	department on a monthly basis no later than 45 days after the
577	date of appointment and become effective on the date requested
578	on the appointment form.
579	(2)  If, upon application and qualification for an initial
580	or renewal appointment and such investigation as the department
581	or office may make, it appears to the department or office that
582	an individual who was formerly licensed or is currently licensed
583	but not properly appointed to represent an insurer or employer
584	and who has been actively engaged or is currently actively
585	engaged as such an appointee, but without being appointed as
586	required, the department or office may, if it finds that such
587	failure to be appointed was an inadvertent error on the part of
588	the insurer or employer so represented, nevertheless issue or
589	authorize the issuance of the appointment as applied for but
590	subject to the condition that, before the appointment is issued,
591	all fees and taxes which would have been due had the applicant
592	been so appointed during such current and prior periods, with
593	applicable fees pursuant to s. 624.501 for such current and
594	prior periods of appointment, shall be paid to the department or
595	office.
596	(3)(a)  Failure to notify the department within the
597	required time period shall result in the appointing entity being
598	assessed a delinquent fee of $250 per appointee. Delinquent fees
599	shall be paid by the appointing entity and may not be charged to
600	the appointee.
601	(b)  Failure to timely renew an appointment by an
602	appointing entity prior to the expiration date of the
603	appointment shall result in the appointing entity being assessed
604	late filing, continuation, and reinstatement fees as prescribed
605	in s. 624.501. Such fees must be paid by the appointing entity
606	and cannot be charged back to the appointee.
607	Section 28.  Subsections (2), (3), and (4) of section
608	626.381, Florida Statutes, are amended to read:
609	626.381  Renewal, continuation, reinstatement, or
610	termination of appointment.--
611	(2)  Each appointing entity shall file with the department
612	or office the lists, statements, and information as to
613	appointees whose appointments are being renewed or terminated,
614	accompanied by payment of the applicable renewal fees and taxes
615	as prescribed in s. 624.501, by a date set forth by the
616	department or office following the month during which the
617	appointments will expire.
618	(3)  Renewal of an appointment which is received by the
619	department or office or person designated by the department to
620	administer the appointment process prior to the expiration of an
621	appointment in the licensee's birth month or license issue date,
622	whichever applies, may be renewed by the department or office
623	without penalty and shall be effective as of the first day of
624	the month succeeding the month in which the appointment would
625	have expired.
626	(4)  Renewal of an appointment which is received by the
627	department or office or person designated by the department to
628	administer the appointment process after the renewal date may be
629	accepted and effectuated by the department or office in its
630	discretion if the appointment, late filing, continuation, and
631	reinstatement fee accompanies the renewal request pursuant to s.
632	624.501. Late filing fees shall be paid by the appointing entity
633	and may not be charged to the appointee.
634	Section 29.  Subsection (2) of section 626.431, Florida
635	Statutes, is amended to read:
636	626.431  Effect of expiration of license and appointment.--
637	(2)  When a licensee's last appointment for a particular
638	class of insurance has been terminated or not renewed, the
639	department or office must notify the licensee that his or her
640	eligibility for appointment as such an appointee will expire
641	unless he or she is appointed prior to expiration of the 48-
642	month period referred to in subsection (3).
643	Section 30.  Section 626.461, Florida Statutes, is amended
644	to read:
645	626.461  Continuation of appointment of agent or other
646	representative.--Subject to renewal or continuation by the
647	appointing entity, the appointment of the agent, adjuster,
648	service representative, customer representative, or managing
649	general agent shall continue in effect until the person's
650	license is revoked or otherwise terminated, unless written
651	notice of earlier termination of the appointment is filed with
652	the department or office or person designated by the department
653	to administer the appointment process by either the appointing
654	entity or the appointee.
655	Section 31.  Subsections (2), (3), (4), and (5) of section
656	626.471, Florida Statutes, are amended to read:
657	626.471  Termination of appointment.--
658	(2)  As soon as possible and at all events within 30 days
659	after terminating the appointment of an appointee, other than as
660	to an appointment terminated by the appointing entity's failure
661	to continue or renew it, the appointing entity shall file
662	written notice thereof with the department or office, together
663	with a statement that it has given the appointee notice thereof
664	as provided in subsection (1) and shall file with the department
665	or office the reasons and facts involved in such termination as
666	required under s. 626.511.
667	(3)  Upon termination of the appointment of an appointee,
668	whether by failure to renew or continue the appointment, the
669	appointing entity shall:
670	(a)  File with the department or office the information
671	required under s. 626.511.
672	(b)  Subject to the exceptions provided under subsection
673	(1), continue the outstanding contracts transacted by an agent
674	until the expiration date or anniversary date when the policy is
675	a continuous policy with no expiration date. This paragraph
676	shall not be construed to prohibit the cancellation of such
677	contracts when not otherwise prohibited by law.
678	(4)  An appointee may terminate the appointment at any time
679	by giving written or electronic notice thereof to the appointing
680	entity, department or office, or person designated by the
681	department to administer the appointment process. The department
682	shall immediately terminate the appointment and notify the
683	appointing entity of such termination. Such termination shall be
684	subject to the appointee's contract rights, if any.
685	(5)  Upon receiving notice of termination, the department
686	or office or person designated by the department to administer
687	the appointment process shall terminate the appointment.
688	Section 32.  Subsections (2), (3), and (5) of section
689	626.521, Florida Statutes, are amended to read:
690	626.521  Character, credit reports.--
691	(2)  If requested by the department or office, the insurer,
692	manager, general agent, general lines agent, or employer, as the
693	case may be, shall furnish to the department or office on a form
694	adopted by the department or commission and furnished by the
695	department or office, such information as it may reasonably
696	require relative to such individual and investigation.
697	(3)  As to an applicant for an adjuster's or reinsurance
698	intermediary's license who is to be self-employed, the
699	department or office may secure, at the cost of the applicant, a
700	full detailed credit and character report made by an established
701	and reputable independent reporting service relative to the
702	applicant.
703	(5)  Information contained in credit or character reports
704	furnished to or secured by the department or office under this
705	section is confidential and exempt from the provisions of s.
706	119.07(1).
707	Section 33.  Subsections (1) and (2) of section 626.541,
708	Florida Statutes, are amended to read:
709	626.541  Firm, corporate, and business names; officers;
710	associates; notice of changes.--
711	(1)  Any licensed agent or adjuster doing business under a
712	firm or corporate name or under any business name other than his
713	or her own individual name shall, within 30 days after the
714	initial transaction of insurance under such business name, file
715	with the department or office, on forms adopted by the
716	department or commission and furnished by the department or
717	office, a written statement of the firm, corporate, or business
718	name being so used, the address of any office or offices or
719	places of business making use of such name, and the name and
720	social security number of each officer and director of the
721	corporation and of each individual associated in such firm or
722	corporation as to the insurance transactions thereof or in the
723	use of such business name.
724	(2)  In the event of any change of such name, or of any of
725	the officers and directors, or of any of such addresses, or in
726	the personnel so associated, written notice of such change must
727	be filed with the department or office within 30 days by or on
728	behalf of those licensees terminating any such firm, corporate,
729	or business name or continuing to operate thereunder.
730	Section 34.  Section 626.551, Florida Statutes, is amended
731	to read:
732	626.551  Notice of change of address, name.--Every licensee
733	shall notify the department or office in writing within 60 days
734	after a change of name, residence address, principal business
735	street address, or mailing address. Any licensed agent who has
736	moved his or her residence from this state shall have his or her
737	license and all appointments immediately terminated by the
738	department or office. Failure to notify the department or office
739	within the required time period shall result in a fine not to
740	exceed $250 for the first offense and, for subsequent offenses,
741	a fine of not less than $500 or suspension or revocation of the
742	license pursuant to s. 626.611 or s. 626.621.
743	Section 35.  Section 626.611, Florida Statutes, is amended
744	to read:
745	626.611  Grounds for compulsory refusal, suspension, or
746	revocation of agent's, title agency's, adjuster's, customer
747	representative's, service representative's, or managing general
748	agent's license or appointment.--The department or office shall
749	deny an application for, suspend, revoke, or refuse to renew or
750	continue the license or appointment of any applicant, agent,
751	title agency, adjuster, customer representative, service
752	representative, or managing general agent, and it shall suspend
753	or revoke the eligibility to hold a license or appointment of
754	any such person, if it finds that as to the applicant, licensee,
755	or appointee any one or more of the following applicable grounds
756	exist:
757	(1)  Lack of one or more of the qualifications for the
758	license or appointment as specified in this code.
759	(2)  Material misstatement, misrepresentation, or fraud in
760	obtaining the license or appointment or in attempting to obtain
761	the license or appointment.
762	(3)  Failure to pass to the satisfaction of the department
763	or office any examination required under this code.
764	(4)  If the license or appointment is willfully used, or to
765	be used, to circumvent any of the requirements or prohibitions
766	of this code.
767	(5)  Willful misrepresentation of any insurance policy or
768	annuity contract or willful deception with regard to any such
769	policy or contract, done either in person or by any form of
770	dissemination of information or advertising.
771	(6)  If, as an adjuster, or agent licensed and appointed to
772	adjust claims under this code, he or she has materially
773	misrepresented to an insured or other interested party the terms
774	and coverage of an insurance contract with intent and for the
775	purpose of effecting settlement of claim for loss or damage or
776	benefit under such contract on less favorable terms than those
777	provided in and contemplated by the contract.
778	(7)  Demonstrated lack of fitness or trustworthiness to
779	engage in the business of insurance.
780	(8)  Demonstrated lack of reasonably adequate knowledge and
781	technical competence to engage in the transactions authorized by
782	the license or appointment.
783	(9)  Fraudulent or dishonest practices in the conduct of
784	business under the license or appointment.
785	(10)  Misappropriation, conversion, or unlawful withholding
786	of moneys belonging to insurers or insureds or beneficiaries or
787	to others and received in conduct of business under the license
788	or appointment.
789	(11)  Unlawfully rebating, attempting to unlawfully rebate,
790	or unlawfully dividing or offering to divide his or her
791	commission with another.
792	(12)  Having obtained or attempted to obtain, or having
793	used or using, a license or appointment as agent or customer
794	representative for the purpose of soliciting or handling
795	"controlled business" as defined in s. 626.730 with respect to
796	general lines agents, s. 626.784 with respect to life agents,
797	and s. 626.830 with respect to health agents.
798	(13)  Willful failure to comply with, or willful violation
799	of, any proper order or rule of the department, commission, or
800	office or willful violation of any provision of this code.
801	(14)  Having been found guilty of or having pleaded guilty
802	or nolo contendere to a felony or a crime punishable by
803	imprisonment of 1 year or more under the law of the United
804	States of America or of any state thereof or under the law of
805	any other country which involves moral turpitude, without regard
806	to whether a judgment of conviction has been entered by the
807	court having jurisdiction of such cases.
808	(15)  Fraudulent or dishonest practice in submitting or
809	aiding or abetting any person in the submission of an
810	application for workers' compensation coverage under chapter 440
811	containing false or misleading information as to employee
812	payroll or classification for the purpose of avoiding or
813	reducing the amount of premium due for such coverage.
814	(16)  Sale of an unregistered security that was required to
815	be registered, pursuant to chapter 517.
816	Section 36.  Section 626.621, Florida Statutes, is amended
817	to read:
818	626.621  Grounds for discretionary refusal, suspension, or
819	revocation of agent's, adjuster's, customer representative's,
820	service representative's, or managing general agent's license or
821	appointment.--The department or office may, in its discretion,
822	deny an application for, suspend, revoke, or refuse to renew or
823	continue the license or appointment of any applicant, agent,
824	adjuster, customer representative, service representative, or
825	managing general agent, and it may suspend or revoke the
826	eligibility to hold a license or appointment of any such person,
827	if it finds that as to the applicant, licensee, or appointee any
828	one or more of the following applicable grounds exist under
829	circumstances for which such denial, suspension, revocation, or
830	refusal is not mandatory under s. 626.611:
831	(1)  Any cause for which issuance of the license or
832	appointment could have been refused had it then existed and been
833	known to the department or office.
834	(2)  Violation of any provision of this code or of any
835	other law applicable to the business of insurance in the course
836	of dealing under the license or appointment.
837	(3)  Violation of any lawful order or rule of the
838	department, commission, or office.
839	(4)  Failure or refusal, upon demand, to pay over to any
840	insurer he or she represents or has represented any money coming
841	into his or her hands belonging to the insurer.
842	(5)  Violation of the provision against twisting, as
843	defined in s. 626.9541(1)(l).
844	(6)  In the conduct of business under the license or
845	appointment, engaging in unfair methods of competition or in
846	unfair or deceptive acts or practices, as prohibited under part
847	IX of this chapter, or having otherwise shown himself or herself
848	to be a source of injury or loss to the public or detrimental to
849	the public interest.
850	(7)  Willful overinsurance of any property or health
851	insurance risk.
852	(8)  Having been found guilty of or having pleaded guilty
853	or nolo contendere to a felony or a crime punishable by
854	imprisonment of 1 year or more under the law of the United
855	States of America or of any state thereof or under the law of
856	any other country, without regard to whether a judgment of
857	conviction has been entered by the court having jurisdiction of
858	such cases.
859	(9)  If a life agent, violation of the code of ethics.
860	(10)  Cheating on an examination required for licensure or
861	violating test center or examination procedures published
862	orally, in writing, or electronically at the test site by
863	authorized representatives of the examination program
864	administrator. Communication of test center and examination
865	procedures must be clearly established and documented.
866	(11)  Failure to inform the department or office in writing
867	within 30 days after pleading guilty or nolo contendere to, or
868	being convicted or found guilty of, any felony or a crime
869	punishable by imprisonment of 1 year or more under the law of
870	the United States or of any state thereof, or under the law of
871	any other country without regard to whether a judgment of
872	conviction has been entered by the court having jurisdiction of
873	the case.
874	(12)  Knowingly aiding, assisting, procuring, advising, or
875	abetting any person in the violation of or to violate a
876	provision of the insurance code or any order or rule of the
877	department, commission, or office.
878	Section 37.  Section 626.631, Florida Statutes, is amended
879	to read:
880	626.631  Procedure for refusal, suspension, or revocation
881	of license.--
882	(1)  If any licensee is convicted by a court of a violation
883	of this code or a felony, the licenses and appointments of such
884	person shall be immediately revoked by the department or office.
885	The licensee may subsequently request a hearing pursuant to ss.
886	120.569 and 120.57, and the department or office shall expedite
887	any such requested hearing. The sole issue at such hearing shall
888	be whether the revocation should be rescinded because such
889	person was not in fact convicted of a violation of this code or
890	a felony.
891	(2)  The papers, documents, reports, or evidence of the
892	department or office relative to a hearing for revocation or
893	suspension of a license or appointment pursuant to the
894	provisions of this chapter and chapter 120 are confidential and
895	exempt from the provisions of s. 119.07(1) until after the same
896	have been published at the hearing. However, such papers,
897	documents, reports, or items of evidence are subject to
898	discovery in a hearing for revocation or suspension of a license
899	or appointment.
900	Section 38.  Subsections (1) and (2) of section 626.641,
901	Florida Statutes, are amended to read:
902	626.641  Duration of suspension or revocation.--
903	(1)  The department or office shall, in its order
904	suspending a license or appointment or in its order suspending
905	the eligibility of a person to hold or apply for such license or
906	appointment, specify the period during which the suspension is
907	to be in effect; but such period shall not exceed 2 years. The
908	license, appointment, or eligibility shall remain suspended
909	during the period so specified, subject, however, to any
910	rescission or modification of the order by the department or
911	office, or modification or reversal thereof by the court, prior
912	to expiration of the suspension period. A license, appointment,
913	or eligibility which has been suspended shall not be reinstated
914	except upon request for such reinstatement; but the department
915	or office shall not grant such reinstatement if it finds that
916	the circumstance or circumstances for which the license,
917	appointment, or eligibility was suspended still exist or are
918	likely to recur.
919	(2)  No person or appointee under any license or
920	appointment revoked by the department or office, nor any person
921	whose eligibility to hold same has been revoked by the
922	department or office, shall have the right to apply for another
923	license or appointment under this code within 2 years from the
924	effective date of such revocation or, if judicial review of such
925	revocation is sought, within 2 years from the date of final
926	court order or decree affirming the revocation. The department
927	or office shall not, however, grant a new license or appointment
928	or reinstate eligibility to hold such license or appointment if
929	it finds that the circumstance or circumstances for which the
930	eligibility was revoked or for which the previous license or
931	appointment was revoked still exist or are likely to recur; if
932	an individual's license as agent or customer representative or
933	eligibility to hold same has been revoked upon the ground
934	specified in s. 626.611(12), the department or office shall
935	refuse to grant or issue any new license or appointment so
936	applied for.
937	Section 39.  Subsection (2) of section 626.661, Florida
938	Statutes, is amended to read:
939	626.661  Surrender of license.--
940	(2)  This section shall not be deemed to require the
941	surrender to the department or office of any license unless such
942	surrender has been requested by the department or office.
943	Section 40.  Subsections (1) and (3) of section 626.681,
944	Florida Statutes, are amended to read:
945	626.681  Administrative fine in lieu of or in addition to
946	suspension, revocation, or refusal of license, appointment, or
947	disapproval.--
948	(1)  Except as to insurance agencies, if the department or
949	office finds that one or more grounds exist for the suspension,
950	revocation, or refusal to issue, renew, or continue any license
951	or appointment issued under this chapter, or disapproval of a
952	continuing education course provider, instructor, school
953	official, or monitor groups, the department or office may, in
954	its discretion, in lieu of or in addition to such suspension or
955	revocation, or in lieu of such refusal, or disapproval, and
956	except on a second offense or when such suspension, revocation,
957	or refusal is mandatory, impose upon the licensee, appointee,
958	course provider, instructor, school official, or monitor group
959	an administrative penalty in an amount up to $500 or, if the
960	department or office has found willful misconduct or willful
961	violation on the part of the licensee, appointee, course
962	provider, instructor, school official, or monitor group up to
963	$3,500. The administrative penalty may, in the discretion of the
964	department or office, be augmented by an amount equal to any
965	commissions received by or accruing to the credit of the
966	licensee or appointee in connection with any transaction as to
967	which the grounds for suspension, revocation, or refusal
968	related.
969	(3)  The department or office may allow the licensee,
970	appointee, or continuing education course provider, instructor,
971	school official, or monitor group a reasonable period, not to
972	exceed 30 days, within which to pay to the department or office
973	the amount of the penalty so imposed. If the licensee,
974	appointee, course provider, instructor, school official, or
975	monitor group fails to pay the penalty in its entirety to the
976	department or office within the period so allowed, the license,
977	appointments, approval, or status of that person shall stand
978	suspended or revoked or issuance, renewal, or continuation shall
979	be refused, as the case may be, upon expiration of such period.
980	Section 41.  Section 626.691, Florida Statutes, is amended
981	to read:
982	626.691  Probation.--
983	(1)  If the department or office finds that one or more
984	grounds exist for the suspension, revocation, or refusal to
985	renew or continue any license or appointment issued under this
986	part, the department or office may, in its discretion, except
987	when an administrative fine is not permissible under s. 626.681
988	or when such suspension, revocation, or refusal is mandatory, in
989	lieu of or in addition to such suspension or revocation, or in
990	lieu of such refusal, or in connection with any administrative
991	monetary penalty imposed under s. 626.681, place the offending
992	licensee or appointee on probation for a period, not to exceed 2
993	years, as specified by the department or office in its order.
994	(2)  As a condition to such probation or in connection
995	therewith, the department or office may specify in its order
996	reasonable terms and conditions to be fulfilled by the
997	probationer during the probation period. If during the probation
998	period the department or office has good cause to believe that
999	the probationer has violated a term or condition, it shall
1000	suspend, revoke, or refuse to issue, renew, or continue the
1001	license or appointment of the probationer, as upon the original
1002	grounds referred to in subsection (1).
1003	Section 42.  Section 626.692, Florida Statutes, is amended
1004	to read:
1005	626.692  Restitution.--If any ground exists for the
1006	suspension, revocation, or refusal of a license or appointment,
1007	the department or office may, in addition to any other penalty
1008	authorized under this chapter, order the licensee to pay
1009	restitution to any person who has been deprived of money by the
1010	licensee's misappropriation, conversion, or unlawful withholding
1011	of moneys belonging to insurers, insureds, beneficiaries, or
1012	others. In no instance shall the amount of restitution required
1013	to be paid under this section exceed the amount of money
1014	misappropriated, converted, or unlawfully withheld. Nothing in
1015	this section limits or restricts a person's right to seek other
1016	remedies as provided for by law.
1017	Section 43.  Subsection (2) of section 626.8582, Florida
1018	Statutes, is amended to read:
1019	626.8582  "Nonresident public adjuster" defined.--A
1020	"nonresident public adjuster" is a person who:
1021	(2)  Is a currently licensed public adjuster in his or her
1022	state of residence for the type or kinds of insurance for which
1023	the licensee intends to adjust claims in this state or, if a
1024	resident of a state that does not license public adjusters, has
1025	passed the department's office's adjuster examination as
1026	prescribed in s. 626.8732(1)(b); and
1027	Section 44.  Subsection (2) of section 626.8584, Florida
1028	Statutes, is amended to read:
1029	626.8584  "Nonresident independent adjuster" defined.--A
1030	"nonresident independent adjuster" is a person who:
1031	(2)  Is a currently licensed independent adjuster in his or
1032	her state of residence for the type or kinds of insurance for
1033	which the licensee intends to adjust claims in this state or, if
1034	a resident of a state that does not license independent
1035	adjusters, has passed the department's office's adjuster
1036	examination as prescribed in s. 626.8734(1)(b); and
1037	Section 45.  Section 626.859, Florida Statutes, is amended
1038	to read:
1039	626.859  "Catastrophe" or "emergency" adjuster defined.--A
1040	"catastrophe" or "emergency" adjuster is a person who is not a
1041	licensed adjuster under this part, but who has been designated
1042	and certified to the department office by insurers as qualified
1043	to adjust claims, losses, or damages under policies or contracts
1044	of insurance issued by such insurer, and whom the department
1045	office may license, in the event of a catastrophe or emergency,
1046	for the purposes and under the conditions which the department
1047	office shall fix and for the period of the emergency as the
1048	department office shall determine, to adjust claims, losses, or
1049	damages under the policies of insurance issued by the insurers.
1050	Section 46.  Subsection (2) of section 626.863, Florida
1051	Statutes, is amended to read:
1052	626.863  Licensed independent adjusters required; insurers'
1053	responsibility.--
1054	(2)  Before referring any claim or loss, the insurer shall
1055	ascertain from the department office whether the proposed
1056	independent adjuster is currently licensed and appointed as
1057	such. Having once ascertained that a particular person is so
1058	licensed and appointed, the insurer may assume that he or she
1059	will continue to be so licensed and appointed until the insurer
1060	has knowledge, or receives information from the department
1061	office, to the contrary.
1062	Section 47.  Section 626.865, Florida Statutes, is amended
1063	to read:
1064	626.865  Public adjuster's qualifications, bond.--
1065	(1)  The department office shall issue a license to an
1066	applicant for a public adjuster's license upon determining that
1067	the applicant has paid the applicable fees specified in s.
1068	624.501 and possesses the following qualifications:
1069	(a)  Is a natural person at least 18 years of age.
1070	(b)  Is a United States citizen or legal alien who
1071	possesses work authorization from the United States Immigration
1072	and Naturalization Service and a bona fide resident of this
1073	state.
1074	(c)  Is trustworthy and has such business reputation as
1075	would reasonably assure that the applicant will conduct his or
1076	her business as insurance adjuster fairly and in good faith and
1077	without detriment to the public.
1078	(d)  Has had sufficient experience, training, or
1079	instruction concerning the adjusting of damages or losses under
1080	insurance contracts, other than life and annuity contracts, is
1081	sufficiently informed as to the terms and effects of the
1082	provisions of those types of insurance contracts, and possesses
1083	adequate knowledge of the laws of this state relating to such
1084	contracts as to enable and qualify him or her to engage in the
1085	business of insurance adjuster fairly and without injury to the
1086	public or any member thereof with whom the applicant may have
1087	business as a public adjuster.
1088	(e)  Has passed any required written examination.
1089	(2)  At the time of application for license as a public
1090	adjuster, the applicant shall file with the department office a
1091	bond executed and issued by a surety insurer authorized to
1092	transact such business in this state, in the amount of $50,000,
1093	conditioned for the faithful performance of his or her duties as
1094	a public adjuster under the license applied for. The bond shall
1095	be in favor of the department office and shall specifically
1096	authorize recovery by the department office of the damages
1097	sustained in case the licensee is guilty of fraud or unfair
1098	practices in connection with his or her business as public
1099	adjuster. The aggregate liability of the surety for all such
1100	damages shall in no event exceed the amount of the bond. Such
1101	bond shall not be terminated unless at least 30 days' written
1102	notice is given to the licensee and filed with the department
1103	office.
1104	Section 48.  Section 626.866, Florida Statutes, is amended
1105	to read:
1106	626.866  Independent adjuster's qualifications.--The
1107	department office shall issue a license to an applicant for an
1108	independent adjuster's license upon determining that the
1109	applicable license fee specified in s. 624.501 has been paid and
1110	that the applicant possesses the following qualifications:
1111	(1)  Is a natural person at least 18 years of age.
1112	(2)  Is a United States citizen or legal alien who
1113	possesses work authorization from the United States Immigration
1114	and Naturalization Service and a bona fide resident of this
1115	state.
1116	(3)  Is trustworthy and has such business reputation as
1117	would reasonably assure that the applicant will conduct his or
1118	her business as insurance adjuster fairly and in good faith and
1119	without detriment to the public.
1120	(4)  Has had sufficient experience, training, or
1121	instruction concerning the adjusting of damage or loss under
1122	insurance contracts, other than life and annuity contracts, is
1123	sufficiently informed as to the terms and the effects of the
1124	provisions of such types of contracts, and possesses adequate
1125	knowledge of the insurance laws of this state relating to such
1126	contracts as to enable and qualify him or her to engage in the
1127	business of insurance adjuster fairly and without injury to the
1128	public or any member thereof with whom he or she may have
1129	relations as an insurance adjuster and to adjust all claims in
1130	accordance with the policy or contract and the insurance laws of
1131	this state.
1132	(5)  Has passed any required written examination.
1133	Section 49.  Section 626.867, Florida Statutes, is amended
1134	to read:
1135	626.867  Company employee adjuster's qualifications.--The
1136	department office shall issue a license to an applicant for a
1137	company employee adjuster's license upon determining that the
1138	applicable license fee specified in s. 624.501 has been paid and
1139	that the applicant possesses the following qualifications:
1140	(1)  Is a natural person at least 18 years of age.
1141	(2)  Is a United States citizen or legal alien who
1142	possesses work authorization from the United States Immigration
1143	and Naturalization Service and a bona fide resident of this
1144	state.
1145	(3)  Is trustworthy and has such business reputation as
1146	would reasonably assure that the applicant will conduct his or
1147	her business as insurance adjuster fairly and in good faith and
1148	without detriment to the public.
1149	(4)  Has had sufficient experience, training, or
1150	instruction concerning the adjusting of damage or loss of risks
1151	described in his or her application, is sufficiently informed as
1152	to the terms and the effects of the provisions of insurance
1153	contracts covering such risks, and possesses adequate knowledge
1154	of the insurance laws of this state relating to such insurance
1155	contracts as to enable and qualify him or her to engage in such
1156	business as insurance adjuster fairly and without injury to the
1157	public or any member thereof with whom he or she may have
1158	relations as an insurance adjuster and to adjust all claims in
1159	accordance with the policy or contract and the insurance laws of
1160	this state.
1161	(5)  Has passed any required written examination.
1162	Section 50.  Paragraph (c) of subsection (4) of section
1163	626.869, Florida Statutes, is amended to read:
1164	626.869  License, adjusters.--
1165	(4)
1166	(c)  The department Financial Services Commission shall
1167	adopt rules necessary to implement and administer the continuing
1168	education requirements of this subsection.
1169	Section 51.  Subsections (1), (3), (5), (6), and (7) of
1170	section 626.8695, Florida Statutes, are amended to read:
1171	626.8695  Primary adjuster.--
1172	(1)  Each person operating an adjusting firm and each
1173	location of a multiple location adjusting firm must designate a
1174	primary adjuster for each such firm or location and must file
1175	with the department office the name of such primary adjuster and
1176	the address of the firm or location where he or she is the
1177	primary adjuster, on a form approved by the department
1178	commission. The designation of the primary adjuster may be
1179	changed at the option of the adjusting firm. Any such change is
1180	effective upon notification to the department office. Notice of
1181	change must be sent to the department office within 30 days
1182	after such change.
1183	(3)  The department office may suspend or revoke the
1184	license of the primary adjuster if the adjusting firm employs
1185	any person who has had a license denied or any person whose
1186	license is currently suspended or revoked. However, if a person
1187	has been denied a license for failure to pass a required
1188	examination, he or she may be employed to perform clerical or
1189	administrative functions for which licensure is not required.
1190	(5)  The department office may suspend or revoke the
1191	license of any adjuster who is employed by a person whose
1192	license is currently suspended or revoked.
1193	(6)  An adjusting firm location may not conduct the
1194	business of insurance unless a primary adjuster is designated.
1195	Failure of the person operating the adjusting firm to designate
1196	a primary adjuster for the firm, or for each location, as
1197	applicable, on a form prescribed by the department commission
1198	within 30 days after inception of the firm or change of primary
1199	adjuster designation, constitutes grounds for requiring the
1200	adjusting firm to obtain an adjusting firm license pursuant to
1201	s. 626.8696.
1202	(7)  Any adjusting firm may request, on a form prescribed
1203	by the department commission, verification from the department
1204	office of any person's current licensure status. If a request is
1205	mailed to the department office within 5 working days after the
1206	date an adjuster is hired, and the department office
1207	subsequently notifies the adjusting firm that an employee's
1208	license is currently suspended, revoked, or has been denied, the
1209	license of the primary adjuster shall not be revoked or
1210	suspended if the unlicensed person is immediately dismissed from
1211	employment as an adjuster with the firm.
1212	Section 52.  Paragraph (e) of subsection (1) and subsection
1213	(5) of section 626.8696, Florida Statutes, are amended to read:
1214	626.8696  Application for adjusting firm license.--
1215	(1)  The application for an adjusting firm license must
1216	include:
1217	(e)  Any additional information which the department
1218	commission may require.
1219	(5)  An adjusting firm required to be licensed pursuant to
1220	s. 626.8695 must remain so licensed for a period of 3 years from
1221	the date of licensure, unless the license is suspended or
1222	revoked. The department office may suspend or revoke the
1223	adjusting firm's authority to do business for activities
1224	occurring during the time the firm is licensed, regardless of
1225	whether the licensing period has terminated.
1226	Section 53.  Section 626.8697, Florida Statutes, is amended
1227	to read:
1228	626.8697  Grounds for refusal, suspension, or revocation of
1229	adjusting firm license.--
1230	(1)  The department office shall deny, suspend, revoke, or
1231	refuse to continue the license of any adjusting firm if it
1232	finds, as to any adjusting firm or as to any majority owner,
1233	partner, manager, director, officer, or other person who manages
1234	or controls the firm, that any of the following grounds exist:
1235	(a)  Lack by the firm of one or more of the qualifications
1236	for the license as specified in this code.
1237	(b)  Material misstatement, misrepresentation, or fraud in
1238	obtaining the license or in attempting to obtain the license.
1239	(2)  The department office may, in its discretion, deny,
1240	suspend, revoke, or refuse to continue the license of any
1241	adjusting firm if it finds that any of the following applicable
1242	grounds exist with respect to the firm or any owner, partner,
1243	manager, director, officer, or other person who is otherwise
1244	involved in the operation of the firm:
1245	(a)  Any cause for which issuance of the license could have
1246	been refused had it then existed and been known to the
1247	department office.
1248	(b)  Violation of any provision of this code or of any
1249	other law applicable to the business of insurance.
1250	(c)  Violation of any order or rule of the department,
1251	office, or commission.
1252	(d)  An owner, partner, manager, director, officer, or
1253	other person who manages or controls the firm having been found
1254	guilty of or having pleaded guilty or nolo contendere to a
1255	felony or a crime punishable by imprisonment of 1 year or more
1256	under the laws of the United States or of any state or under the
1257	laws of any other country, without regard to whether
1258	adjudication was made or withheld by the court.
1259	(e)  Failure to inform the department office in writing
1260	within 30 days after a pleading by an owner, partner, manager,
1261	director, officer, or other person managing or controlling the
1262	firm of guilty or nolo contendere to, or being convicted or
1263	found guilty of, any felony or a crime punishable by
1264	imprisonment of 1 year or more under the laws of the United
1265	States or of any state, or under the laws of any other country,
1266	without regard to whether adjudication was made or withheld by
1267	the court.
1268	(f)  Knowingly aiding, assisting, procuring, advising, or
1269	abetting any person in the violation of or to violate a
1270	provision of the insurance code or any order or rule of the
1271	department, office, or commission.
1272	(g)  Knowingly employing any individual in a managerial
1273	capacity or in a capacity dealing with the public who is under
1274	an order of revocation or suspension issued by the department
1275	office.
1276	(h)  Committing any of the following acts with such a
1277	frequency as to have made the operation of the adjusting firm
1278	hazardous to the insurance-buying public or other persons:
1279	1.  Misappropriation, conversion, or unlawful or
1280	unreasonable withholding of moneys belonging to insurers or
1281	insureds or beneficiaries or claimants or to others and received
1282	in the conduct of business under the license.
1283	2.  Misrepresentation or deception with regard to the
1284	business of insurance, dissemination of information, or
1285	advertising.
1286	3.  Demonstrated lack of fitness or trustworthiness to
1287	engage in the business of insurance adjusting arising out of
1288	activities related to insurance adjusting or the adjusting firm.
1289	(i)  Failure to appoint a primary adjuster.
1290	(3)  In lieu of discretionary refusal, suspension, or
1291	revocation of an adjusting firm's license, the department office
1292	may impose an administrative penalty of up to $1,000 for each
1293	violation or ground provided under this section, not to exceed
1294	an aggregate amount of $10,000 for all violations or grounds.
1295	(4)  If any adjusting firm, having been licensed,
1296	thereafter has such license revoked or suspended, the firm shall
1297	terminate all adjusting activities while the license is revoked
1298	or suspended.
1299	Section 54.  Section 626.8698, Florida Statutes, is amended
1300	to read:
1301	626.8698  Disciplinary guidelines for public
1302	adjusters.--The department office may deny, suspend, or revoke
1303	the license of a public adjuster, and administer a fine not to
1304	exceed $5,000 per act, for any of the following:
1305	(1)  Violating any provision of this chapter or a rule or
1306	order of the office or commission;
1307	(2)  Receiving payment or anything of value as a result of
1308	an unfair or deceptive practice;
1309	(3)  Receiving or accepting any fee, kickback, or other
1310	thing of value pursuant to any agreement or understanding, oral
1311	or otherwise; entering into a split-fee arrangement with another
1312	person who is not a public adjuster; or being otherwise paid or
1313	accepting payment for services that have not been performed;
1314	(4)  Violating s. 316.066 or s. 817.234;
1315	(5)  Soliciting or otherwise taking advantage of a person
1316	who is vulnerable, emotional, or otherwise upset as the result
1317	of a trauma, accident, or other similar occurrence; or
1318	(6)  Violating any ethical rule of the department
1319	commission.
1320	Section 55.  Section 626.870, Florida Statutes, is amended
1321	to read:
1322	626.870  Application for license.--
1323	(1)  Application for a license under this part shall be
1324	made as provided in s. 626.171 and related sections of this
1325	code.
1326	(2)  The department commission shall so prepare the form of
1327	the application as to elicit and require from the applicant the
1328	information necessary to enable the department office to
1329	determine whether the applicant possesses the qualifications
1330	prerequisite to issuance of the license to the applicant.
1331	(3)  The department commission may, in its discretion,
1332	require that the application be supplemented by the certificate
1333	or affidavit of such person or persons as it deems necessary for
1334	its determination of the applicant's residence, business
1335	reputation, and reputation for trustworthiness. The department
1336	commission shall prescribe and the department office may furnish
1337	the forms for such certificates and affidavits.
1338	Section 56.  Section 626.871, Florida Statutes, is amended
1339	to read:
1340	626.871  Reappointment after military service.--The
1341	department office may, without requiring a further written
1342	examination, issue an appointment as an adjuster to a formerly
1343	licensed and appointed adjuster of this state who held a current
1344	adjuster's appointment at the time of entering service in the
1345	Armed Forces of the United States, subject to the following
1346	conditions:
1347	(1)  The period of military service must not have been in
1348	excess of 3 years;
1349	(2)  The application for the appointment must be filed with
1350	the department office and the applicable fee paid, within 12
1351	months following the date of honorable discharge of the
1352	applicant from the military service; and
1353	(3)  The new appointment will be of the same type and class
1354	as that currently effective at the time the applicant entered
1355	military service; but, if such type and class of appointment is
1356	not being currently issued under this code, the new appointment
1357	shall be of that type and class or classes most closely
1358	resembling those of the former appointment.
1359	Section 57.  Subsections (1) and (5) of section 626.872,
1360	Florida Statutes, are amended to read:
1361	626.872  Temporary license.--
1362	(1)  The department office may, in its discretion, issue a
1363	temporary license as an independent adjuster or as a company
1364	employee adjuster, subject to the following conditions:
1365	(a)  The applicant must be an employee of an adjuster
1366	currently licensed by the department office, an employee of an
1367	authorized insurer, or an employee of an established adjusting
1368	firm or corporation which is supervised by a currently licensed
1369	independent adjuster.
1370	(b)  The application must be accompanied by a certificate
1371	of employment and a report as to the applicant's integrity and
1372	moral character on a form prescribed by the department
1373	commission and executed by the employer.
1374	(c)  The applicant must be a natural person of at least 18
1375	years of age, must be a bona fide resident of this state, must
1376	be trustworthy, and must have such business reputation as would
1377	reasonably assure that the applicant will conduct his or her
1378	business as an adjuster fairly and in good faith and without
1379	detriment to the public.
1380	(d)  The applicant's employer is responsible for the
1381	adjustment acts of any licensee under this section.
1382	(e)  The applicable license fee specified must be paid
1383	before issuance of the temporary license.
1384	(f)  The temporary license shall be effective for a period
1385	of 1 year, but subject to earlier termination at the request of
1386	the employer, or if the licensee fails to take an examination as
1387	an independent adjuster or company employee adjuster within 6
1388	months after issuance of the temporary license, or if suspended
1389	or revoked by the department office.
1390	(5)  The department office shall not issue a temporary
1391	license as an independent adjuster or as a company employee
1392	adjuster to any individual who has ever held such a license in
1393	this state.
1394	Section 58.  Subsection (1) of section 626.873, Florida
1395	Statutes, is amended to read:
1396	626.873  Nonresident company employee adjusters.--
1397	(1)  The department office shall, upon application
1398	therefor, issue a license to an applicant for a nonresident
1399	adjuster's license upon determining that the applicant has paid
1400	the applicable license fees required under s. 624.501 and:
1401	(a)  Is a currently licensed insurance adjuster in his or
1402	her home state, if such state requires a license.
1403	(b)  Is an employee of an insurer, or a wholly owned
1404	subsidiary of an insurer, admitted to do business in this state.
1405	(c)  Has filed a certificate or letter of authorization
1406	from the insurance department of his or her home state, if such
1407	state requires an adjuster to be licensed, stating that he or
1408	she holds a current license or authorization to adjust insurance
1409	losses. Such certificate or authorization must be signed by the
1410	insurance commissioner, or his or her deputy, of the adjuster's
1411	home state and must reflect whether or not the adjuster has ever
1412	had his or her license or authorization in the adjuster's home
1413	state suspended or revoked and, if such is the case, the reason
1414	for such action.
1415	Section 59.  Section 626.8732, Florida Statutes, is amended
1416	to read:
1417	626.8732  Nonresident public adjuster's qualifications,
1418	bond.--
1419	(1)  The department office shall, upon application
1420	therefor, issue a license to an applicant for a nonresident
1421	public adjuster's license upon determining that the applicant
1422	has paid the applicable license fees required under s. 624.501
1423	and:
1424	(a)  Is a natural person at least 18 years of age.
1425	(b)  Has passed to the satisfaction of the department
1426	office a written Florida public adjuster's examination of the
1427	scope prescribed in s. 626.241(6); however, the requirement for
1428	such an examination does not apply to any of the following:
1429	1.  An applicant who is licensed as a resident public
1430	adjuster in his or her state of residence, when that state
1431	requires the passing of a written examination in order to obtain
1432	the license and a reciprocal agreement with the appropriate
1433	official of that state has been entered into by the department
1434	office; or
1435	2.  An applicant who is licensed as a nonresident public
1436	adjuster in a state other than his or her state of residence
1437	when the state of licensure requires the passing of a written
1438	examination in order to obtain the license and a reciprocal
1439	agreement with the appropriate official of the state of
1440	licensure has been entered into by the department office.
1441	(c)  Is self-employed as a public adjuster or associated
1442	with or employed by a public adjusting firm or other public
1443	adjuster. Applicants licensed as nonresident public adjusters
1444	under this section must be appointed as such in accordance with
1445	the provisions of ss. 626.112 and 626.451. Appointment fees in
1446	the amount specified in s. 624.501 must be paid to the
1447	department office in advance. The appointment of a nonresident
1448	public adjuster shall continue in force until suspended,
1449	revoked, or otherwise terminated, but subject to biennial
1450	renewal or continuation by the licensee in accordance with
1451	procedures prescribed in s. 626.381 for licensees in general.
1452	(d)  Is trustworthy and has such business reputation as
1453	would reasonably assure that he or she will conduct his or her
1454	business as a nonresident public adjuster fairly and in good
1455	faith and without detriment to the public.
1456	(e)  Has had sufficient experience, training, or
1457	instruction concerning the adjusting of damages or losses under
1458	insurance contracts, other than life and annuity contracts; is
1459	sufficiently informed as to the terms and effects of the
1460	provisions of those types of insurance contracts; and possesses
1461	adequate knowledge of the laws of this state relating to such
1462	contracts as to enable and qualify him or her to engage in the
1463	business of insurance adjuster fairly and without injury to the
1464	public or any member thereof with whom he or she may have
1465	business as a public adjuster.
1466	(2)  The applicant shall furnish the following with his or
1467	her application:
1468	(a)  A complete set of his or her fingerprints. The
1469	applicant's fingerprints must be certified by an authorized law
1470	enforcement officer. The department office may not authorize an
1471	applicant to take the required examination or issue a
1472	nonresident public adjuster's license to the applicant until the
1473	department office has received a report from the Florida
1474	Department of Law Enforcement and the Federal Bureau of
1475	Investigation relative to the existence or nonexistence of a
1476	criminal history report based on the applicant's fingerprints.
1477	(b)  If currently licensed as a resident public adjuster in
1478	the applicant's state of residence, a certificate or letter of
1479	authorization from the licensing authority of the applicant's
1480	state of residence, stating that the applicant holds a current
1481	or comparable license to act as a public adjuster. The
1482	certificate or letter of authorization must be signed by the
1483	insurance commissioner or his or her deputy or the appropriate
1484	licensing official and must disclose whether the adjuster has
1485	ever had any license or eligibility to hold any license
1486	declined, denied, suspended, revoked, or placed on probation or
1487	whether an administrative fine or penalty has been levied
1488	against the adjuster and, if so, the reason for the action.
1489	(c)  If the applicant's state of residence does not require
1490	licensure as a public adjuster and the applicant has been
1491	licensed as a resident insurance adjuster, agent, broker, or
1492	other insurance representative in his or her state of residence
1493	or any other state within the past 3 years, a certificate or
1494	letter of authorization from the licensing authority stating
1495	that the applicant holds or has held a license to act as such an
1496	insurance adjuster, agent, or other insurance representative.
1497	The certificate or letter of authorization must be signed by the
1498	insurance commissioner or his or her deputy or the appropriate
1499	licensing official and must disclose whether or not the
1500	adjuster, agent, or other insurance representative has ever had
1501	any license or eligibility to hold any license declined, denied,
1502	suspended, revoked, or placed on probation or whether an
1503	administrative fine or penalty has been levied against the
1504	adjuster and, if so, the reason for the action.
1505	(3)  At the time of application for license as a
1506	nonresident public adjuster, the applicant shall file with the
1507	department office a bond executed and issued by a surety insurer
1508	authorized to transact surety business in this state, in the
1509	amount of $50,000, conditioned for the faithful performance of
1510	his or her duties as a nonresident public adjuster under the
1511	license applied for. The bond must be in favor of the department
1512	office and must specifically authorize recovery by the
1513	department office of the damages sustained if the licensee
1514	commits fraud or unfair practices in connection with his or her
1515	business as nonresident public adjuster. The aggregate liability
1516	of the surety for all the damages may not exceed the amount of
1517	the bond. The bond may not be terminated unless at least 30
1518	days' written notice is given to the licensee and filed with the
1519	department office.
1520	(4)  The usual and customary records pertaining to
1521	transactions under the license of a nonresident public adjuster
1522	must be retained for at least 3 years after completion of the
1523	adjustment and must be made available in this state to the
1524	department office upon request. The failure of a nonresident
1525	public adjuster to properly maintain records and make them
1526	available to the department office upon request constitutes
1527	grounds for the immediate suspension of the license issued under
1528	this section.
1529	(5)  After licensure as a nonresident public adjuster, as a
1530	condition of doing business in this state, the licensee must
1531	annually on or before January 1, on a form prescribed by the
1532	department commission, submit an affidavit certifying that the
1533	licensee is familiar with and understands the insurance code and
1534	rules adopted thereunder and the provisions of the contracts
1535	negotiated or to be negotiated. Compliance with this filing
1536	requirement is a condition precedent to the issuance,
1537	continuation, reinstatement, or renewal of a nonresident public
1538	adjuster's appointment.
1539	Section 60.  Subsections (1), (3), and (4) of section
1540	626.8734, Florida Statutes, are amended to read:
1541	626.8734  Nonresident independent adjuster's
1542	qualifications.--
1543	(1)  The department office shall, upon application
1544	therefor, issue a license to an applicant for a nonresident
1545	independent adjuster's license upon determining that the
1546	applicant has paid the applicable license fees required under s.
1547	624.501 and:
1548	(a)  Is a natural person at least 18 years of age.
1549	(b)  Has passed to the satisfaction of the department
1550	office a written Florida independent adjuster's examination of
1551	the scope prescribed in s. 626.241(6); however, the requirement
1552	for the examination does not apply to any of the following:
1553	1.  An applicant who is licensed as a resident independent
1554	adjuster in his or her state of residence when that state
1555	requires the passing of a written examination in order to obtain
1556	the license and a reciprocal agreement with the appropriate
1557	official of that state has been entered into by the department
1558	office; or
1559	2.  An applicant who is licensed as a nonresident
1560	independent adjuster in a state other than his or her state of
1561	residence when the state of licensure requires the passing of a
1562	written examination in order to obtain the license and a
1563	reciprocal agreement with the appropriate official of the state
1564	of licensure has been entered into by the department office.
1565	(c)  Is self-employed or associated with or employed by an
1566	independent adjusting firm or other independent adjuster.
1567	Applicants licensed as nonresident independent adjusters under
1568	this section must be appointed as such in accordance with the
1569	provisions of ss. 626.112 and 626.451. Appointment fees in the
1570	amount specified in s. 624.501 must be paid to the department
1571	office in advance. The appointment of a nonresident independent
1572	adjuster shall continue in force until suspended, revoked, or
1573	otherwise terminated, but subject to biennial renewal or
1574	continuation by the licensee in accordance with procedures
1575	prescribed in s. 626.381 for licensees in general.
1576	(d)  Is trustworthy and has such business reputation as
1577	would reasonably assure that he or she will conduct his or her
1578	business as a nonresident independent adjuster fairly and in
1579	good faith and without detriment to the public.
1580	(e)  Has had sufficient experience, training, or
1581	instruction concerning the adjusting of damages or losses under
1582	insurance contracts, other than life and annuity contracts; is
1583	sufficiently informed as to the terms and effects of the
1584	provisions of those types of insurance contracts; and possesses
1585	adequate knowledge of the laws of this state relating to such
1586	contracts as to enable and qualify him or her to engage in the
1587	business of insurance adjuster fairly and without injury to the
1588	public or any member thereof with whom he or she may have
1589	business as an independent adjuster.
1590	(3)  The usual and customary records pertaining to
1591	transactions under the license of a nonresident independent
1592	adjuster must be retained for at least 3 years after completion
1593	of the adjustment and must be made available in this state to
1594	the department office upon request. The failure of a nonresident
1595	independent adjuster to properly maintain records and make them
1596	available to the department office upon request constitutes
1597	grounds for the immediate suspension of the license issued under
1598	this section.
1599	(4)  After licensure as a nonresident independent adjuster,
1600	as a condition of doing business in this state, the licensee
1601	must annually on or before January 1, on a form prescribed by
1602	the department commission, submit an affidavit certifying that
1603	the licensee is familiar with and understands the insurance laws
1604	and administrative rules of this state and the provisions of the
1605	contracts negotiated or to be negotiated. Compliance with this
1606	filing requirement is a condition precedent to the issuance,
1607	continuation, reinstatement, or renewal of a nonresident
1608	independent adjuster's appointment.
1609	Section 61.  Subsection (4) of section 626.8736, Florida
1610	Statutes, is amended to read:
1611	626.8736  Nonresident independent or public adjusters;
1612	service of process.--
1613	(4)  Upon receiving the service, the Chief Financial
1614	Officer shall forthwith send one of the copies of the process,
1615	by registered mail with return receipt requested, to the
1616	defendant nonresident independent or public adjuster at his or
1617	her last address of record with the department office.
1618	Section 62.  Section 626.8738, Florida Statutes, is amended
1619	to read:
1620	626.8738  Penalty for violation.--In addition to any other
1621	remedy imposed pursuant to this code, any person who acts as a
1622	resident or nonresident public adjuster or holds himself or
1623	herself out to be a public adjuster to adjust claims in this
1624	state, without being licensed by the department office as a
1625	public adjuster and appointed as a public adjuster, commits a
1626	felony of the third degree, punishable as provided in s.
1627	775.082, s. 775.083, or s. 775.084. Each act in violation of
1628	this section constitutes a separate offense.
1629	Section 63.  Section 626.874, Florida Statutes, is amended
1630	to read:
1631	626.874  Catastrophe or emergency adjusters.--
1632	(1)  In the event of a catastrophe or emergency, the
1633	department office may issue a license, for the purposes and
1634	under the conditions which it shall fix and for the period of
1635	emergency as it shall determine, to persons who are residents or
1636	nonresidents of this state, who are at least 18 years of age,
1637	who are United States citizens or legal aliens who possess work
1638	authorization from the United States Immigration and
1639	Naturalization Service, and who are not licensed adjusters under
1640	this part but who have been designated and certified to it as
1641	qualified to act as adjusters by independent resident adjusters
1642	or by an authorized insurer or by a licensed general lines agent
1643	to adjust claims, losses, or damages under policies or contracts
1644	of insurance issued by such insurers. The fee for the license
1645	shall be as provided in s. 624.501(12)(c).
1646	(2)  If any person not a licensed adjuster who has been
1647	permitted to adjust such losses, claims, or damages under the
1648	conditions and circumstances set forth in subsection (1),
1649	engages in any of the misconduct described in or contemplated by
1650	ss. 626.611 and 626.621, the department office, without notice
1651	and hearing, shall be authorized to issue its order denying such
1652	person the privileges granted under this section; and thereafter
1653	it shall be unlawful for any such person to adjust any such
1654	losses, claims, or damages in this state.
1655	Section 64.  Section 626.878, Florida Statutes, is amended
1656	to read:
1657	626.878  Rules; code of ethics.--An adjuster shall
1658	subscribe to the code of ethics specified in the rules of the
1659	department commission. The rules shall implement the provisions
1660	of this part and specify the terms and conditions of contracts,
1661	including a right to cancel, and require practices necessary to
1662	ensure fair dealing, prohibit conflicts of interest, and ensure
1663	preservation of the rights of the claimant to participate in the
1664	adjustment of claims.
1665	Section 65.  Section 627.7012, Florida Statutes, is
1666	transferred and renumbered as section 626.879, Florida Statutes,
1667	and amended to read:
1668	626.879 627.7012  Pools of insurance adjusters.?The
1669	department commission may, by rule, establish a pool of
1670	qualified insurance adjusters. The rules must provide that, if a
1671	hurricane occurs or an emergency is declared, the department
1672	office may assign members of the pool to the affected area and
1673	that an insurer may request that a member of the pool adjust
1674	claims in the assigned area. The rules may not require that an
1675	insurer use those adjusters assigned by the department office.
1676	Section 66.  Subsection (3) of section 626.9543, Florida
1677	Statutes, is amended to read:
1678	626.9543  Holocaust victims.--
1679	(3)  DEFINITIONS.--For the purpose of this section:
1680	(a)  "Department" means the Department of Insurance.
1681	(a)(b)  "Holocaust victim" means any person who lost his or
1682	her life or property as a result of discriminatory laws,
1683	policies, or actions targeted against discrete groups of persons
1684	between 1920 and 1945, inclusive, in Nazi Germany, areas
1685	occupied by Nazi Germany, or countries allied with Nazi Germany.
1686	(b)(c)  "Insurance policy" means, but is not limited to,
1687	life insurance, property insurance, or education policies.
1688	(c)(d)  "Legal relationship" means any parent, subsidiary,
1689	or affiliated company with an insurer doing business in this
1690	state.
1691	(d)(e)  "Proceeds" means the face or other payout value of
1692	policies and annuities plus reasonable interest to date of
1693	payments without diminution for wartime or immediate postwar
1694	currency devaluation.
1695	Section 67.  Subsection (9) of section 626.989, Florida
1696	Statutes, is amended to read:
1697	626.989  Investigation by department or Division of
1698	Insurance Fraud; compliance; immunity; confidential information;
1699	reports to division; division investigator's power of arrest.--
1700	(9)  In recognition of the complementary roles of
1701	investigating instances of workers' compensation fraud and
1702	enforcing compliance with the workers' compensation coverage
1703	requirements under chapter 440, the Department of Financial
1704	Services shall prepare and submit a joint performance report to
1705	the President of the Senate and the Speaker of the House of
1706	Representatives by November 1, 2003, and then by January 1 of
1707	each year. The annual report must include, but need not be
1708	limited to:
1709	(a)  The total number of initial referrals received, cases
1710	opened, cases presented for prosecution, cases closed, and
1711	convictions resulting from cases presented for prosecution by
1712	the Bureau of Workers' Compensation Insurance Fraud by type of
1713	workers' compensation fraud and circuit.
1714	(b)  The number of referrals received from insurers and the
1715	Division of Workers' Compensation and the outcome of those
1716	referrals.
1717	(c)  The number of investigations undertaken by the bureau
1718	office which were not the result of a referral from an insurer
1719	or the Division of Workers' Compensation.
1720	(d)  The number of investigations that resulted in a
1721	referral to a regulatory agency and the disposition of those
1722	referrals.
1723	(e)  The number and reasons provided by local prosecutors
1724	or the statewide prosecutor for declining prosecution of a case
1725	presented by the bureau office by circuit.
1726	(f)  The total number of employees assigned to the bureau
1727	office and the Division of Workers' Compliance unit delineated
1728	by location of staff assigned and the number and location of
1729	employees assigned to the bureau office who were assigned to
1730	work other types of fraud cases.
1731	(g)  The average caseload and turnaround time by type of
1732	case for each investigator and division compliance employee.
1733	(h)  The training provided during the year to workers'
1734	compensation fraud investigators and the division's compliance
1735	employees.
1736	Section 68.  Paragraphs (b) and (c) of subsection (2) of
1737	section 627.0628, Florida Statutes, are amended to read:
1738	627.0628  Florida Commission on Hurricane Loss Projection
1739	Methodology.--
1740	(2)  COMMISSION CREATED.--
1741	(b)  The commission shall consist of the following 11
1742	members:
1743	1.  The insurance consumer advocate.
1744	2.  The senior employee of the State Board of
1745	Administration responsible for operations of the Florida
1746	Hurricane Catastrophe Fund.
1747	3.  The Executive Director of the Citizens Property
1748	Insurance Corporation.
1749	4.  The Director of the Division of Emergency Management of
1750	the Department of Community Affairs.
1751	5.  The actuary member of the Florida Hurricane Catastrophe
1752	Fund Advisory Council.
1753	6.  An employee of the office who is an actuary responsible
1754	for property insurance rate filings and who is appointed by the
1755	Director of the Office of Insurance Regulation.
1756	7.6.  Five Six members appointed by the Chief Financial
1757	Officer, as follows:
1758	a.  An employee of the office who is an actuary responsible
1759	for property insurance rate filings.
1760	a.b.  An actuary who is employed full time by a property
1761	and casualty insurer which was responsible for at least 1
1762	percent of the aggregate statewide direct written premium for
1763	homeowner's insurance in the calendar year preceding the
1764	member's appointment to the commission.
1765	b.c.  An expert in insurance finance who is a full time
1766	member of the faculty of the State University System and who has
1767	a background in actuarial science.
1768	c.d.  An expert in statistics who is a full time member of
1769	the faculty of the State University System and who has a
1770	background in insurance.
1771	d.e.  An expert in computer system design who is a full
1772	time member of the faculty of the State University System.
1773	e.f.  An expert in meteorology who is a full time member of
1774	the faculty of the State University System and who specializes
1775	in hurricanes.
1776	(c)  Members designated under subparagraphs (b)1.-5. shall
1777	serve on the commission as long as they maintain the respective
1778	offices designated in subparagraphs (b)1.-5. Members appointed
1779	by the Chief Financial Officer under subparagraph (b)7.6. shall
1780	serve on the commission until the end of the term of office of
1781	the Chief Financial Officer who appointed them, unless earlier
1782	removed by the Chief Financial Officer for cause. Vacancies on
1783	the commission shall be filled in the same manner as the
1784	original appointment.
1785	Section 69.  Section 627.285, Florida Statutes, is amended
1786	to read:
1787	627.285  Independent actuarial peer review of workers'
1788	compensation rating organization.--The office Financial Services
1789	Commission shall at least once every other year contract for an
1790	independent actuarial peer review and analysis of the ratemaking
1791	processes of any licensed rating organization that makes rate
1792	filings for workers' compensation insurance, and the rating
1793	organization shall fully cooperate in the peer review. The
1794	contract shall require submission of a final report to the
1795	commission, the President of the Senate, and the Speaker of the
1796	House of Representatives by February 1. The first report shall
1797	be submitted by February 1, 2004. The costs of the independent
1798	actuarial peer review shall be paid from the Workers'
1799	Compensation Administration Trust Fund.
1800	Section 70.  Paragraph (b) of subsection (11) of section
1801	627.6699, Florida Statutes, is amended to read:
1802	627.6699  Employee Health Care Access Act.--
1803	(11)  SMALL EMPLOYER HEALTH REINSURANCE PROGRAM.--
1804	(b)1.  The program shall operate subject to the supervision
1805	and control of the board.
1806	2.  Effective upon this act becoming a law, the board shall
1807	consist of the Director of the Office of Insurance Regulation
1808	Chief Financial Officer or his or her designee, who shall serve
1809	as the chairperson, and 13 additional members who are
1810	representatives of carriers and insurance agents and are
1811	appointed by the Director of the Office of Insurance Regulation
1812	Chief Financial Officer and serve as follows:
1813	a.  The Director of the Office of Insurance Regulation
1814	Chief Financial Officer shall include representatives of small
1815	employer carriers subject to assessment under this subsection.
1816	If two or more carriers elect to be risk-assuming carriers, the
1817	membership must include at least two representatives of risk-
1818	assuming carriers; if one carrier is risk-assuming, one member
1819	must be a representative of such carrier. At least one member
1820	must be a carrier who is subject to the assessments, but is not
1821	a small employer carrier. Subject to such restrictions, at least
1822	five members shall be selected from individuals recommended by
1823	small employer carriers pursuant to procedures provided by rule
1824	of the commission. Three members shall be selected from a list
1825	of health insurance carriers that issue individual health
1826	insurance policies. At least two of the three members selected
1827	must be reinsuring carriers. Two members shall be selected from
1828	a list of insurance agents who are actively engaged in the sale
1829	of health insurance.
1830	b.  A member appointed under this subparagraph shall serve
1831	a term of 4 years and shall continue in office until the
1832	member's successor takes office, except that, in order to
1833	provide for staggered terms, the Director of the Office of
1834	Insurance Regulation Chief Financial Officer shall designate two
1835	of the initial appointees under this subparagraph to serve terms
1836	of 2 years and shall designate three of the initial appointees
1837	under this subparagraph to serve terms of 3 years.
1838	3.  The Director of the Office of Insurance Regulation
1839	Chief Financial Officer may remove a member for cause.
1840	4.  Vacancies on the board shall be filled in the same
1841	manner as the original appointment for the unexpired portion of
1842	the term.
1843	5.  The Director of the Office of Insurance Regulation
1844	Chief Financial Officer may require an entity that recommends
1845	persons for appointment to submit additional lists of
1846	recommended appointees.
1847	Section 71.  The transfer of the regulation of adjusters
1848	from the Office of Insurance Regulation to the Department of
1849	Financial Services by this act shall not affect the regulation
1850	of adjusters in any administrative or judicial action of the
1851	Office of Insurance Regulation arising out of or involving the
1852	Office of Insurance Regulation prior to or pending on the
1853	effective date of this act, and the Department of Financial
1854	Services shall be substituted as a party in interest on any such
1855	pending action.
1856	Section 72.  Any license, form, or action that was approved
1857	or authorized by the Financial Services Commission or the Office
1858	of Insurance Regulation that was otherwise lawfully in use prior
1859	to the effective date of this act may continue to be used, or be
1860	effective as originally authorized or permitted, until the
1861	Department of Financial Services otherwise prescribes.
1862	Section 73.  Upon the effective date of this act, the rules
1863	or portions thereof of the Financial Services Commission that
1864	govern the regulation of insurance adjusters shall become rules
1865	or portions thereof of the Department of Financial Services as
1866	is appropriate to the corresponding regulatory or constitutional
1867	function and shall remain in effect until specifically amended
1868	or repealed in the manner provided by law.
1869	Section 74.  This act shall take effect upon becoming a
1870	law.

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