Amendment

Bill No. 2268

Amendment No. 832931

CHAMBER ACTION
Senate		House
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1	Representative Berfield offered the following:
2
3	Amendment (with title amendment)
4	Amendment
5	On page 7, line 26, through page 8, line 5,
6	remove:  all of said lines
7
8	and insert:
9	4.  An owner-operator of a motor vehicle who transports
10	property under a written contract with a motor carrier which
11	evidences a relationship by which the owner-operator assumes the
12	responsibility of an employer for the performance of the
13	contract, if the owner-operator is required to furnish the
14	necessary motor vehicle equipment as identified in the written
15	contract and the principal all costs incidental to the
16	performance of the contract, including, but not limited to, fuel
17	and , taxes, licenses, repairs, provided a motor carrier's
18	advance of costs to the owner-operator when a written contract
19	evidences the owner-operator's obligation to reimburse such
20	advance shall be treated as the owner-operator furnishing such
21	cost and hired help; and the owner-operator is paid a commission
22	for transportation service and is not paid by the hour or on
23	some other time-measured basis.
24	5.  A person whose employment is both casual and not in the
25	course of the trade, business, profession, or occupation of the
26	employer.
27	6.  A volunteer other than, except a volunteer worker for
28	the state or a county, municipality, or other governmental
29	entity. A person who does not receive monetary remuneration for
30	services is presumed to be a volunteer unless there is
31	substantial evidence that a valuable consideration was intended
32	by both employer and employee. For purposes of this chapter, the
33	term "volunteer" includes, but is not limited to:
34	a.  Persons who serve in private nonprofit agencies and who
35	receive no compensation other than expenses in an amount less
36	than or equivalent to the standard mileage and per diem expenses
37	provided to salaried employees in the same agency or, if such
38	agency does not have salaried employees who receive mileage and
39	per diem, then such volunteers who receive no compensation other
40	than expenses in an amount less than or equivalent to the
41	customary mileage and per diem paid to salaried workers in the
42	community as determined by the department; and
43	b.  Volunteers participating in federal programs
44	established under Pub. L. No. 93-113.
45	7.  Unless otherwise prohibited by this chapter, any
46	officer of a corporation who elects to be exempt from this
47	chapter. Such officer is not an employee for any reason under
48	this chapter until the notice of revocation of election filed
49	pursuant to s. 440.05 is effective.
50	8.  An officer of a corporation or member of a limited
51	liability company that is engaged in the construction industry
52	who elects to be exempt from the provisions of this chapter, as
53	otherwise permitted by this chapter. Such officer or member is
54	not an employee for any reason until the notice of revocation of
55	election filed pursuant to s. 440.05 is effective.
56	9.  An exercise rider who does not work for a single horse
57	farm or breeder, and who is compensated for riding on a case-by-
58	case basis, provided a written contract is entered into prior to
59	the commencement of such activity which evidences that an
60	employee/employer relationship does not exist.
61	10.  A taxicab, limousine, or other passenger vehicle-for-
62	hire driver who operates said vehicles pursuant to a written
63	agreement with a company which provides any dispatch, marketing,
64	insurance, communications, or other services under which the
65	driver and any fees or charges paid by the driver to the company
66	for such services are not conditioned upon, or expressed as a
67	proportion of, fare revenues.
68	11.  A person who performs services as a sports official
69	for an entity sponsoring an interscholastic sports event or for
70	a public entity or private, nonprofit organization that sponsors
71	an amateur sports event. For purposes of this subparagraph, such
72	a person is an independent contractor. For purposes of this
73	subparagraph, the term "sports official" means any person who is
74	a neutral participant in a sports event, including, but not
75	limited to, umpires, referees, judges, linespersons,
76	scorekeepers, or timekeepers. This subparagraph does not apply
77	to any person employed by a district school board who serves as
78	a sports official as required by the employing school board or
79	who serves as a sports official as part of his or her
80	responsibilities during normal school hours.
81	12.  Medicaid-enrolled clients under chapter 393 who are
82	excluded from the definition of employment under s.
83	443.036(21)(d)5. and served by Adult Day Training Services under
84	the Home and Community-Based Medicaid Waiver program in a
85	sheltered workshop setting licensed by the United States
86	Department of Labor for the purpose of training and earning less
87	than the federal hourly minimum wage.
88	(16)(a)  "Employer" means the state and all political
89	subdivisions thereof, all public and quasi-public corporations
90	therein, every person carrying on any employment, and the legal
91	representative of a deceased person or the receiver or trustees
92	of any person. "Employer" also includes employment agencies,
93	employee leasing companies, establishments primarily engaged in
94	supplying temporary or continuing help on a contract or fee
95	basis where the help supplied is always on the payroll of the
96	supplying establishment but under the direct or general
97	supervision of the business to which the help is furnished and
98	similar agents who provide employees to other persons. If the
99	employer is a corporation, parties in actual control of the
100	corporation, including, but not limited to, the president,
101	officers who exercise broad corporate powers, directors, and all
102	shareholders who directly or indirectly own a controlling
103	interest in the corporation, are considered the employer for the
104	purposes of ss. 440.105, 440.106, and 440.107.
105	(b)  A homeowner shall not be considered the employer of
106	persons hired by the homeowner to carry out construction on the
107	homeowner's own premises if those premises are not intended for
108	immediate lease, sale, or resale.
109	(c)  Facilities serving individuals under subparagraph
110	(15)(d)12. shall be considered agents of the Agency for Health
111	Care Administration as it relates to providing Adult Day
112	Training Services under the Home and Community-Based Medicaid
113	Waiver program and not employers or third parties for the
114	purpose of limiting or denying Medicaid benefits.
115	Section 2.  Section 624.447, Florida Statutes, is amended
116	to read:
117	624.447  Certificate of insurance for contractors.--
118	(1)  Any insurer shall, upon written request accompanied by
119	a copy of a certificate of insurance, verify in writing whether
120	that insurer's policies listed on the a certificate of insurance
121	are in effect on any contractor, as defined in s. 768.0425.
122	(2)  If a written contract requires a subcontractor, sub-
123	subcontractor, or materialman to provide a policy of insurance
124	or a certificate of insurance to a general contractor or
125	subcontractor, extending specific coverage rights to an
126	additional insured:
127	(a) The general contractor or subcontractor shall have 7
128	calendar days from receipt to either accept the certificate of
129	insurance or the underlying policy of insurance or reject either
130	as being nonconforming.  If the certificate of insurance or the
131	underlying policy of insurance is rejected as being
132	nonconforming, the general contractor or subcontractor must
133	state the specific reasons for the rejection.
134	(b)  The certificate of insurance or underlying policy of
135	insurance is deemed accepted by the general contractor or
136	subcontractor, if not rejected as being non-conforming, and the
137	general contractor or subcontractor may not use non-conforming
138	insurance as a reason to withhold payment to or reject completed
139	work by a subcontractor, sub-subcontractor, or materialman.
140	However, this subsection does not apply if the certificate of
141	insurance was fraudulently issued by the agent or insurer; the
142	certificate of insurance reflects coverages or conditions not
143	contained in the underlying policy of insurance; or the
144	underlying policy of insurance is cancelled, non-renewed, or is
145	materially and adversely altered during the term of the
146	contract.
147	Section 3.  Paragraph (a) of subsection (3) of section
148	626.2815, Florida Statutes, is amended to read:
149	626.2815  Continuing education required; application;
150	exceptions; requirements; penalties.--
151	(3)(a)  Each person subject to the provisions of this
152	section must, except as set forth in paragraphs (b) and (c),
153	complete a minimum of 24 hours of continuing education courses
154	every 2 years in basic or higher-level courses prescribed by
155	this section or in other courses approved by the department.
156	Each person subject to the provisions of this section must
157	complete, as part of his or her required number of continuing
158	education hours, 3 hours of continuing education, approved by
159	the department, every 2 years on the subject matter of ethics
160	and a minimum of 2 hours of continuing education, approved by
161	the department, every 2 years on the subject matter of
162	unauthorized entities engaging in the business of insurance. The
163	scope of the topic of unauthorized entities shall include the
164	Florida Nonprofit Multiple Employer Welfare Arrangement Act and
165	the Employee Retirement Income Security Act, 29 U.S.C. ss. 1001
166	et seq., as it relates to the provision of health insurance by
167	employers to their employees and the regulation thereof.
168	Section 4.  Present subsections (15) through (17) of
169	section 626.015, Florida Statutes, are redesignated as
170	subsections (16) through (18), respectively, and a new
171	subsection (15) is added to that section to read:
172	626.015  Definitions.--As used in this part:
173	(15)  "Personal lines agent" means a general lines agent
174	who is limited to transacting business related to property and
175	casualty insurance sold to individuals and families for
176	noncommercial purposes.
177	Section 5.  Subsection (3) is added to section 626.022,
178	Florida Statutes, to read:
179	626.022  Scope of part.--
180	(3)  Provisions of this part that apply to general lines
181	agents and applicants also apply to personal lines agents and
182	applicants, except where otherwise provided.
183	Section 6.  Subsection (8) is added to section 626.241,
184	Florida Statutes, to read:
185	626.241  Scope of examination.--
186	(8)  An examination for licensure as a personal lines agent
187	shall consist of 100 questions and shall be limited in scope to
188	the kinds of business transacted under such license.
189	Section 7.  Subsection (1) of section 626.311, Florida
190	Statutes, is amended to read:
191	626.311  Scope of license.--
192	(1)  Except as to personal lines agents and limited
193	licenses, the applicant for license as a general lines agent or
194	customer representative shall qualify for all property, marine,
195	casualty, and surety lines except bail bonds which require a
196	separate license under chapter 648.  The license of a general
197	lines agent may also cover health insurance if health insurance
198	is included in the agent's appointment by an insurer as to which
199	the licensee is also appointed as agent for property or casualty
200	or surety insurance.  The license of a customer representative
201	shall provide, in substance, that it covers all of such classes
202	of insurance that his or her appointing general lines agent or
203	agency is currently so authorized to transact under the general
204	lines agent's license and appointments.  No such license shall
205	be issued limited to particular classes of insurance except for
206	bail bonds which require a separate license under chapter 648 or
207	for personal lines agents. Personal lines agents are limited to
208	transacting business related to property and casualty insurance
209	sold to individuals and families for noncommercial purposes.
210	Section 8.  Section 626.727, Florida Statutes, is amended
211	to read:
212	626.727  Scope of this part.--This part applies only to
213	general lines agents, customer representatives, service
214	representatives, and managing general agents, all as defined in
215	s. 626.015. Provisions of this part which apply to general lines
216	agents and applicants also apply to personal lines agents and
217	applicants, except where otherwise provided.
218	Section 9.  Subsection (1) of section 626.732, Florida
219	Statutes, is amended to read:
220	626.732  Requirement as to knowledge, experience, or
221	instruction.--
222	(1)  Except as provided in subsection (3), no applicant for
223	a license as a general lines agent or personal lines agent,
224	except for a chartered property and casualty underwriter (CPCU),
225	other than as to a limited license as to baggage and motor
226	vehicle excess liability insurance, credit property insurance,
227	credit insurance, in-transit and storage personal property
228	insurance, or communications equipment property insurance or
229	communication equipment inland marine insurance, shall be
230	qualified or licensed unless within the 4 years immediately
231	preceding the date the application for license is filed with the
232	department the applicant has:
233	(a)  Taught or successfully completed classroom courses in
234	insurance, 3 hours of which shall be on the subject matter of
235	ethics, satisfactory to the department at a school, college, or
236	extension division thereof, approved by the department. To
237	qualify for licensure as a personal lines agent, the applicant
238	must complete a total of 52 hours of classroom courses in
239	insurance;
240	(b)  Completed a correspondence course in insurance, 3
241	hours of which shall be on the subject matter of ethics,
242	satisfactory to the department and regularly offered by
243	accredited institutions of higher learning in this state and,
244	except if he or she is applying for a limited license under s.
245	626.321, for licensure as a general lines agent, has had at
246	least 6 months of responsible insurance duties as a
247	substantially full-time bona fide employee in all lines of
248	property and casualty insurance set forth in the definition of
249	general lines agent under s. 626.015 or, for licensure as a
250	personal lines agent, has completed at least 3 months in
251	responsible insurance duties as a substantially full-time
252	employee in property and casualty insurance sold to individuals
253	and families for noncommercial purposes;
254	(c)  For licensure as a general lines agent, completed at
255	least 1 year in responsible insurance duties as a substantially
256	full-time bona fide employee in all lines of property and
257	casualty insurance, exclusive of aviation and wet marine and
258	transportation insurances but not exclusive of boats of less
259	than 36 feet in length or aircraft not held out for hire, as set
260	forth in the definition of a general lines agent under s.
261	626.015, without the education requirement mentioned in
262	paragraph (a) or paragraph (b) or, for licensure as a personal
263	lines agent, has completed at least 6 months in responsible
264	insurance duties as a substantially full-time employee in
265	property and casualty insurance sold to individuals and families
266	for noncommercial purposes without the education requirement in
267	paragraph (a) or paragraph(b); or
268	(d)1.  For licensure as a general lines agent, completed at
269	least 1 year of responsible insurance duties as a licensed and
270	appointed customer representative or limited customer
271	representative in commercial or personal lines of property and
272	casualty insurance and 40 hours of classroom courses approved by
273	the department covering the areas of property, casualty, surety,
274	health, and marine insurance; or
275	2.  For licensure as a personal lines agent, completed at
276	least 6 months of responsible duties as a licensed and appointed
277	customer representative or limited customer representative in
278	property and casualty insurance sold to individuals and families
279	for noncommercial purposes and 20 hours of classroom courses
280	approved by the department which are related to property and
281	casualty insurance sold to individuals and families for
282	noncommercial purposes;
283	(e)1.2.  For licensure as a general lines agent, completed
284	at least 1 year of responsible insurance duties as a licensed
285	and appointed service representative in either commercial or
286	personal lines of property and casualty insurance and 80 hours
287	of classroom courses approved by the department covering the
288	areas of property, casualty, surety, health, and marine
289	insurance; or.
290	2.  For licensure as a personal lines agent, completed at
291	least 6 months of responsible insurance duties as a licensed and
292	appointed service representative in property and casualty
293	insurance sold to individuals and families for noncommercial
294	purposes and 40 hours of classroom courses approved by the
295	department related to property and casualty insurance sold to
296	individuals and families for noncommercial purposes; or
297	(f)  For licensure as a personal lines agent, completed at
298	least 3 years of responsible duties as a licensed and appointed
299	customer representative in property and casualty insurance sold
300	to individuals and families for noncommercial purposes.
301	Section 10.  The Department of Financial Services does not
302	have to begin issuing licenses to personal lines agents on the
303	effective date of this act if the department has not completed
304	the process of incorporating necessary procedures for issuing
305	personal lines licenses into its licensing systems.
306	Section 11.  Subsection (1) of section 626.747, Florida
307	Statutes, is amended to read:
308	626.747  Branch agencies.--
309	(1)  Each branch place of business established by an agent
310	or agency, firm, corporation, or association shall be in the
311	active full-time charge of a licensed general lines agent who is
312	appointed to represent one or more insurers.  Any agent or
313	agency, firm, corporation, or association which has established
314	one or more branch places of business shall be required to have
315	at least one licensed general lines agent who is appointed to
316	represent one or more insurers at each location of the agency
317	including its headquarters location.
318	Section 12.  Section 627.0915, Florida Statutes, is amended
319	to read:
320	627.0915  Rate filings; workers' compensation, drug-free
321	workplace, and safe employers.--
322	(1)  The office shall approve rating plans for workers'
323	compensation and employer's liability insurance that give
324	specific identifiable consideration in the setting of rates to
325	employers that either implement a drug-free workplace program
326	pursuant to s. 440.102 and rules adopted thereunder by the
327	commission or implement a safety program pursuant to provisions
328	of the rating plan or implement both a drug-free workplace
329	program and a safety program. The plans must be actuarially
330	sound and must state the savings anticipated to result from such
331	drug-testing and safety programs.
332	(2)  An insurer offering a rate plan approved under this
333	section shall notify the employer at the time of a written offer
334	of insurance and at the time of each renewal of the policy of
335	the availability of the premium discount where a drug-free
336	workplace plan is used by the employer pursuant to s. 440.102
337	and related rules. The commission shall adopt rules to implement
338	this section.
339	Section 13.  Paragraph (r) is added to subsection (6) of
340	section 627.351, Florida Statutes, to read:
341	627.351  Insurance risk apportionment plans.--
342	(6)  CITIZENS PROPERTY INSURANCE CORPORATION.--
343	(r)  A salaried employee of the corporation who performs
344	policy administration services subsequent to the effectuation of
345	a corporation policy is not required to be licensed as an agent
346	under the provisions of s. 626.112.
347	Section 14.  Paragraphs (c) and (d) of subsection (1) of
348	section 626.321, Florida Statutes, are amended to read:
349	626.321  Limited licenses.--
350	(1)  The department shall issue to a qualified individual,
351	or a qualified individual or entity under paragraphs (c), (d),
352	(e), and (i), a license as agent authorized to transact a
353	limited class of business in any of the following categories:
354	(c)  Personal accident insurance.--License covering only
355	policies of personal accident insurance covering the risks of
356	travel, except as provided in subparagraph 2.  The license may
357	be issued only:
358	1.  To a full-time salaried employee of a common carrier or
359	a full-time salaried employee or owner of a transportation
360	ticket agency and may authorize the sale of such ticket policies
361	only in connection with the sale of transportation tickets, or
362	to the full-time salaried employee of such an agent.  No such
363	policy shall be for a duration of more than 48 hours or for the
364	duration of a specified one-way trip or round trip.
365	2.  To a full-time salaried employee of a business which
366	offers motor vehicles for rent or lease, or to a business entity
367	office of a business which offers motor vehicles for rent or
368	lease if insurance sales activities authorized by the license
369	are limited to full-time salaried employees.  A business office
370	licensed or a person licensed pursuant to this subparagraph may,
371	as an agent of an insurer, transact insurance that provides
372	coverage for accidental personal injury or death of the lessee
373	and any passenger who is riding or driving with the covered
374	lessee in the rental motor vehicle if the lease or rental
375	agreement is for not more than 30 days, or if the lessee is not
376	provided coverage for more than 30 consecutive days per lease
377	period; however, if the lease is extended beyond 30 days, the
378	coverage may be extended one time only for a period not to
379	exceed an additional 30 days.
380	(d)  Baggage and motor vehicle excess liability insurance.-
381	-
382	1.  License covering only insurance of personal effects
383	except as provided in subparagraph 2.  The license may be issued
384	only:
385	a.  To a full-time salaried employee of a common carrier or
386	a full-time salaried employee or owner of a transportation
387	ticket agency, which person is engaged in the sale or handling
388	of transportation of baggage and personal effects of travelers,
389	and may authorize the sale of such insurance only in connection
390	with such transportation; or
391	b.  To the full-time salaried employee of a licensed
392	general lines agent, a full-time salaried employee of a business
393	which offers motor vehicles for rent or lease, or to a business
394	office of a business entity that which offers motor vehicles for
395	rent or lease if insurance sales activities authorized by the
396	license are in connection with and incidental to the rental of
397	a motor vehicle limited to full-time salaried employees . An
398	entity applying for a license under this sub-subparagraph:
399	(I)  Is required to submit only one application for a
400	license under s. 626.171. The requirements of s. 626.171(5)
401	shall apply only to the officers and directors of the entity
402	submitting the application.
403	(II)  Is required to obtain a license for each office,
404	branch office, or place of business making use of the entity's
405	business name by applying to the department for the license on a
406	simplified application form developed by rule of the department
407	for this purpose.
408	(III)  Is required to pay the applicable fees for a license
409	as prescribed in s. 624.501, be appointed under s. 626.112, and
410	pay the prescribed appointment fee under s. 624.501. A licensed
411	and appointed entity shall be directly responsible and
412	accountable for all acts of the licensee's employees.
413
414	The purchaser of baggage insurance shall be provided written
415	information disclosing that the insured's homeowner's policy may
416	provide coverage for loss of personal effects and that the
417	purchase of such insurance is not required in connection with
418	the purchase of tickets or in connection with the lease or
419	rental of a motor vehicle.
420	2.  A business entity that office licensed pursuant to
421	subparagraph 1., or a person licensed pursuant to subparagraph
422	1. who is a full-time salaried employee of a business which
423	offers motor vehicles for rent or lease, may include lessees
424	under a master contract providing coverage to the lessor or may
425	transact excess motor vehicle liability insurance providing
426	coverage in excess of the standard liability limits provided by
427	the lessor in its lease to a person renting or leasing a motor
428	vehicle from the licensee's employer for liability arising in
429	connection with the negligent operation of the leased or rented
430	motor vehicle, provided that the lease or rental agreement is
431	for not more than 30 days; that the lessee is not provided
432	coverage for more than 30 consecutive days per lease period,
433	and, if the lease is extended beyond 30 days, the coverage may
434	be extended one time only for a period not to exceed an
435	additional 30 days; that the lessee is given written notice that
436	his or her personal insurance policy providing coverage on an
437	owned motor vehicle may provide additional excess coverage; and
438	that the purchase of the insurance is not required in connection
439	with the lease or rental of a motor vehicle.  The excess
440	liability insurance may be provided to the lessee as an
441	additional insured on a policy issued to the licensee's
442	employer.
443	3.  A business entity that office licensed pursuant to
444	subparagraph 1., or a person licensed pursuant to subparagraph
445	1. who is a full-time salaried employee of a business which
446	offers motor vehicles for rent or lease, may, as an agent of an
447	insurer, transact insurance that provides coverage for the
448	liability of the lessee to the lessor for damage to the leased
449	or rented motor vehicle if:
450	a.  The lease or rental agreement is for not more than 30
451	days; or the lessee is not provided coverage for more than 30
452	consecutive days per lease period, but, if the lease is extended
453	beyond 30 days, the coverage may be extended one time only for a
454	period not to exceed an additional 30 days;
455	b.  The lessee is given written notice that his or her
456	personal insurance policy that provides coverage on an owned
457	motor vehicle may provide such coverage with or without a
458	deductible; and
459	c.  The purchase of the insurance is not required in
460	connection with the lease or rental of a motor vehicle.
461	Section 15.  Subsection (2) of section 628.709, Florida
462	Statutes, is amended to read:
463	628.709  Formation of a mutual insurance holding company.--
464	(2)  All of the initial shares of the capital stock of the
465	insurance company which reorganized as a subsidiary insurance
466	company shall be issued either to the mutual insurance holding
467	company, or to an intermediate holding company which is wholly
468	owned by the mutual insurance holding company. This restriction
469	does not preclude the subsequent issuance of additional shares
470	of stock by the subsidiary insurance company so long as the
471	mutual insurance holding company at all times owns directly or
472	through one or more intermediate holding companies, a majority
473	of the voting shares of the capital stock of the subsidiary
474	insurance company. The membership interests of the policyholders
475	of the subsidiary insurance company shall become membership
476	interests in the mutual insurance holding company. Policyholders
477	of the subsidiary insurance company which was formerly the
478	mutual insurer shall be members of the mutual insurance holding
479	company in accordance with the articles of incorporation and
480	bylaws of the mutual insurance holding company. At the time of
481	formation, policyholders of any other subsidiary insurance
482	company of the mutual insurance holding company shall not be
483	members of the mutual insurance holding company unless:
484	(a)  They are policyholders of a subsidiary which was a
485	mutual insurer which merged with the holding company pursuant to
486	s. 628.715; or
487	(b)  They are policyholders of an affiliated stock
488	insurance company, provided such policyholders were members of
489	the mutual insurance company at the time the mutual insurance
490	company policies were assumed by the affiliated stock insurance
491	company and the assumption occurred in connection with the
492	conversion.
493
494	Subsequent to formation, membership shall be governed by s.
495	628.727.
496	Section 16.  Subsection (6) is added to section 631.021,
497	Florida Statutes, to read:
498	631.021  Jurisdiction of delinquency proceeding; venue;
499	change of venue; exclusiveness of remedy; appeal.--
500	(6)  The domiciliary court acquiring jurisdiction over
501	persons subject to this chapter may exercise exclusive
502	jurisdiction to the exclusion of all other courts, except as
503	limited by the provisions of this chapter. Upon the issuance of
504	an order of conservation, rehabilitation, or liquidation, the
505	Circuit Court of Leon County shall have exclusive jurisdiction
506	with respect to assets or property of any insurer subject to
507	such proceedings and claims against said insurer's assets or
508	property.
509	Section 17.  Subsection (6) is added to section 631.041,
510	Florida Statutes, to read:
511	631.041  Automatic stay; relief from stay; injunctions.--
512	(6)  The estate of an insurer in rehabilitation or
513	liquidation which is injured by any willful violation of an
514	applicable stay or injunction shall be entitled to actual
515	damages, including costs and attorney's fees, and, in
516	appropriate circumstances, the receivership court may impose
517	additional sanctions.
518	Section 18.  Section 631.0515, Florida Statutes, is amended
519	to read:
520	631.0515  Appointment of receiver; insurance holding
521	company.--A delinquency proceeding pursuant to this chapter
522	constitutes the sole and exclusive method of dissolving,
523	liquidating, rehabilitating, reorganizing, conserving, or
524	appointing a receiver of a Florida corporation which is not
525	insolvent as defined by s. 607.01401(16); which through its
526	shareholders, board of directors, or governing body is
527	deadlocked in the management of its affairs; and which directly
528	or indirectly owns all of the stock of a Florida domestic
529	insurer. The department may petition for an order directing it
530	to rehabilitate such corporation if the interests of
531	policyholders or the public will be harmed as a result of the
532	deadlock. The department shall use due diligence to resolve the
533	deadlock. Whether or not the department petitions for an order,
534	the circuit court shall not have jurisdiction pursuant to s.
535	607.271, s. 607.274, or s. 607.277 to dissolve, liquidate, or
536	appoint receivers with respect to, a Florida corporation which
537	directly or indirectly owns all of the stock of a Florida
538	domestic insurer and which is not insolvent as defined by s.
539	607.01401(16). However, a managing general agent or holding
540	company with a controlling interest in a domestic insurer in
541	this state is subject to jurisdiction of the court under the
542	provisions of s. 631.025.
543	Section 19.  Paragraph (a) of subsection (7) of section
544	631.141, Florida Statutes, is amended to read:
545	631.141  Conduct of delinquency proceeding; domestic and
546	alien insurers.--
547	(7)(a)  In connection with a delinquency proceeding, the
548	department may appoint one or more special agents to act for it,
549	and it may employ such counsel, clerks, and assistants as it
550	deems necessary. The compensation of the special agents,
551	counsel, clerks, or assistants and all expenses of taking
552	possession of the insurer and of conducting the proceeding shall
553	be fixed by the receiver, subject to the approval of the court,
554	and shall be paid out of the funds or assets of the insurer.
555	Such expenses are administrative expenses and are recoverable by
556	the receiver in any actions in which the receiver is authorized
557	or entitled to recover its administrative expenses. Within the
558	limits of duties imposed upon them, special agents shall possess
559	all the powers given to and, in the exercise of those powers,
560	shall be subject to all duties imposed upon the receiver with
561	respect to such proceeding.
562	Section 20.  Section 631.205, Florida Statutes, is amended
563	to read:
564	631.205  Reinsurance proceeds.--All reinsurance proceeds
565	payable under a contract of reinsurance to which the insolvent
566	insurer is a party are to be paid directly to the domiciliary
567	receiver as general assets of the receivership estate unless the
568	reinsurance contract contains a clause which specifically names
569	the insolvent insurer's insured as a direct beneficiary of the
570	reinsurance contract. The entry of an order of conservation,
571	rehabilitation, or liquidation shall not be deemed an
572	anticipatory breach of any reinsurance contract, nor shall
573	insolvency or notice of insolvency be grounds for retroactive
574	revocation or retroactive cancellation of any reinsurance
575	contracts by the reinsurer.
576	Section 21.  Section 631.206, Florida Statutes, is created
577	to read:
578	631.206  Arbitration.--If an insurer in receivership has
579	entered into an agreement containing an arbitration provision
580	for resolution of disputes, that provision is void and shall be
581	replaced by operation of law with the following provision:  Any
582	controversy or claim arising out of or relating to this
583	contract, or the breach thereof, shall be settled by arbitration
584	pursuant to the American Arbitration Association Commercial
585	Arbitration Rules and chapter 682, Florida Statutes, and
586	judgment on the award rendered by the arbitrators shall be
587	entered by the receivership court. Venue shall be in Leon
588	County, Florida. Disputes shall be submitted to a panel of three
589	arbitrators, one to be chosen by each party and the third by the
590	two so chosen. Arbitrators shall be selected from a list of
591	potential qualified arbitrators with 10 years' experience
592	involving the insurance industry. If the parties do not agree
593	upon the qualifications of a mediator, each party shall select
594	its mediator from a list of potential mediators approved by the
595	receivership court.
596	Section 22.  Subsection (1) of section 631.261, Florida
597	Statutes, is amended, and subsection (4) is added to said
598	section, to read:
599	631.261  Voidable transfers.--
600	(1)(a)  Any transfer of, or lien upon, the property of an
601	insurer or affiliate which is made or created within 4 months
602	prior to the commencement of any delinquency proceeding under
603	this chapter which gives with the intent of giving to any
604	creditor of the insurer a preference or enables of enabling the
605	creditor to obtain a greater percentage of her or his debt than
606	any other creditor of the same class, and which is accepted by
607	such creditor having reasonable cause to believe that such
608	preference will occur, shall be voidable.
609	(b)  Any transfer of, or lien upon, the property of an
610	insurer or affiliate which is made or created between 4 months
611	and 1 year prior to the commencement of any delinquency
612	proceeding under this chapter is void if such transfer or lien
613	inured to the benefit of a director, officer, employee,
614	stockholder, member, subscriber, affiliate, managing general
615	agent, or insider or any relative of any director, officer,
616	employee, stockholder, member, subscriber, affiliate, managing
617	general agent, or insider.
618	(4)  For purposes of this section, a transfer is not made
619	or created until the insurer or affiliate has acquired rights in
620	the property transferred.
621	Section 23.  Subsection (2) of section 631.262, Florida
622	Statutes, is amended to read:
623	631.262  Transfers prior to petition.--
624	(2)  Transfers shall be deemed to have been made or
625	suffered, or obligations incurred, when perfected according to
626	the following criteria:
627	(a)  A transfer of property other than real property shall
628	be deemed to be made or suffered when it becomes so far
629	perfected that no subsequent lien obtainable by legal or
630	equitable proceedings on a simple contract could become superior
631	to the rights of the transferee.;
632	(b)  A transfer of real property shall be deemed to be made
633	or suffered when it becomes so far perfected that no subsequent
634	bona fide purchaser from the insurer could obtain rights
635	superior to the rights of the transferee.;
636	(c)  A transfer which creates an equitable lien shall not
637	be deemed to be perfected if there are available means by which
638	a legal lien could be created.;
639	(d)  Any transfer not perfected prior to the filing of a
640	petition in a delinquency proceeding shall be deemed to be made
641	immediately before the filing of a successful petition.;
642	(e)  For the purposes of this section, a transfer is not
643	made until the insurer or affiliate has acquired rights in the
644	property transferred.
645	(f)(e)  Paragraphs (a)-(e) (a)-(d) apply whether or not
646	there are or were creditors who might have obtained any liens or
647	persons who might have become bona fide purchasers.
648	Section 24.  Subsection (6) is added to section 631.263,
649	Florida Statutes, to read:
650	631.263  Transfers after petition.--
651	(6)  For the purposes of this section, a transfer is not
652	made until the insurer or affiliate has acquired rights in the
653	property transferred.
654	Section 25.  Subsection (3) of section 631.54, Florida
655	Statutes, is amended to read:
656	631.54  Definitions.--As used in this part:
657	(3)  "Covered claim" means an unpaid claim, including one
658	of unearned premiums, which arises out of, and is within the
659	coverage, and not in excess of, the applicable limits of an
660	insurance policy to which this part applies, issued by an
661	insurer, if such insurer becomes an insolvent insurer after
662	October 1, 1970, and the claimant or insured is a resident of
663	this state at the time of the insured event or the property from
664	which the claim arises is permanently located in this state.
665	"Covered claim" shall not include:
666	(a)  Any amount due any reinsurer, insurer, insurance pool,
667	or underwriting association, sought directly or indirectly
668	through a third party, as subrogation, contribution,
669	indemnification, or otherwise; or
670	(b)  Any claim that would otherwise be a covered claim
671	under this part that has been rejected by any other state
672	guaranty fund on the grounds that an insured's net worth is
673	greater than that allowed under that state's guaranty law .
674	Member insurers shall have no right of subrogation,
675	contribution, indemnification, or otherwise, sought directly or
676	indirectly through a third party, against the insured of any
677	insolvent member.
678	Section 26.  Subsection (2) of section 631.904, Florida
679	Statutes, is amended to read:
680	631.904  Definitions.--As used in this part, the term:
681	(2)  "Covered claim" means an unpaid claim, including a
682	claim for return of unearned premiums, which arises out of, is
683	within the coverage of, and is not in excess of the applicable
684	limits of, an insurance policy to which this part applies, which
685	policy was issued by an insurer and which claim is made on
686	behalf of a claimant or insured who was a resident of this state
687	at the time of the injury. The term "covered claim" does not
688	include any amount sought as a return of premium under any
689	retrospective rating plan; any amount due any reinsurer,
690	insurer, insurance pool, or underwriting association, as
691	subrogation recoveries or otherwise; any claim that would
692	otherwise be a covered claim that has been rejected by any other
693	state guaranty fund on the grounds that the insured's net worth
694	is greater than that allowed under that state's guaranty fund or
695	liquidation law, except this exclusion from the definition of
696	covered claim shall not apply to claims of employers who, prior
697	to April 30, 2004, entered into an agreement with the
698	corporation preserving the employer's right to seek coverage of
699	claims rejected by another state's guaranty fund; or any return
700	of premium resulting from a policy that was not in force on the
701	date of the final order of liquidation. Member insurers have no
702	right of subrogation against the insured of any insolvent
703	insurer. This provision shall be applied retroactively to cover
704	claims of an insolvent self-insurance fund resulting from
705	accidents or losses incurred prior to January 1, 1994,
706	regardless of the date the petition in circuit court was filed
707	alleging insolvency and the date the court entered an order
708	appointing a receiver.
709	Section 27.  Section 634.1815, Florida Statutes, is created
710	to read:
711	634.1815  Rebating; when allowed.--
712	(1)  No salesperson shall rebate any portion of his or her
713	commission except as follows:
714	(a)  The rebate shall be available to all consumers in the
715	same actuarial class.
716	(b)  The rebate shall be in accordance with a rebating
717	schedule filed by the salesperson with the service agreement
718	company issuing the service agreement to which the rebate
719	applies. The service agreement company shall maintain a copy of
720	all rebating schedules for a period of 3 years.
721	(c)  The rebating schedule shall be uniformly applied so
722	all consumers who purchase the same service agreement through
723	the salesperson for the same coverage shall receive the same
724	percentage rebate.
725	(d)  The rebate schedule shall be prominently displayed in
726	public view in the salesperson's place of business, and a copy
727	shall be made available to consumers on request at no charge.
728	(e)  The age, sex, place of residence, race, nationality,
729	ethnic origin, marital status, or occupation of the consumer
730	shall not be used in determining the percentage of the rebate or
731	whether a rebate is available.
732	(2)  No rebate shall be withheld or limited in amount based
733	on factors which are unfairly discriminatory.
734	(3)  No rebate shall be given which is not reflected on the
735	rebate schedule.
736	(4)  No rebate shall be refused or granted based upon the
737	purchase of or failure to purchase collateral business.
738	Section 28.  Section 634.3205, Florida Statutes, is created
739	to read:
740	634.3205  Rebating; when allowed.--
741	(1)  No sales representative shall rebate any portion of
742	his or her commission except as follows:
743	(a)  The rebate shall be available to all consumers in the
744	same actuarial class.
745	(b)  The rebate shall be in accordance with a rebating
746	schedule filed by the sales representative with the home
747	warranty association issuing the home warranty to which the
748	rebate applies. The home warranty association shall maintain a
749	copy of all rebating schedules for a period of 3 years.
750	(c)  The rebating schedule shall be uniformly applied so
751	all consumers who purchase the same home warranty through the
752	sales representative for the same coverage shall receive the
753	same percentage rebate.
754	(d)  The rebate schedule shall be prominently displayed in
755	public view in the sales representative's place of business, and
756	a copy shall be made available to consumers on request at no
757	charge.
758	(e)  The age, sex, place of residence, race, nationality,
759	ethnic origin, marital status, or occupation of the consumer
760	shall not be used in determining the percentage of the rebate or
761	whether a rebate is available.
762	(2)  No rebate shall be withheld or limited in amount based
763	on factors which are unfairly discriminatory.
764	(3)  No rebate shall be given which is not reflected on the
765	rebate schedule.
766	(4)  No rebate shall be refused or granted based upon the
767	purchase of or failure to purchase collateral business.
768	Section 29.  Subsection (8) is added to section 634.406,
769	Florida Statutes, to read:
770	634.406  Financial requirements.--
771	(8)  An association licensed under this part and holding no
772	other license under part I or part II of this chapter is not
773	required to establish an unearned premium reserve or maintain
774	contractual liability insurance and may allow its premiums to
775	exceed the ratio to net assets limitation of this section if the
776	association complies with the following:
777	(a)  The association or, if the association is a direct or
778	indirect wholly owned subsidiary of a parent corporation, its
779	parent corporation has, and maintains at all times, a minimum
780	net worth of at least $100 million and provides the office with
781	the following:
782	1.  A copy of the association's annual audited financial
783	statements or the audited consolidated financial statements of
784	the association's parent corporation, prepared by an independent
785	certified public accountant in accordance with generally
786	accepted accounting principles, which clearly demonstrate the
787	net worth of the association or its parent corporation to be
788	$100 million and a quarterly written certification to the office
789	that such entity continues to maintain the net worth required
790	under this paragraph.
791	2.  The association's, or its parent corporation's, Form
792	10K, Form 10Q, or Form 20F as filed with the United States
793	Securities and Exchange Commission or such other documents
794	required to be filed with a recognized stock exchange, which
795	shall be provided on a quarterly and annual basis within 10 days
796	after the last date each such report must be filed with the
797	Securities and Exchange Commission, the National Association of
798	Security Dealers Automated Quotation system, or other recognized
799	stock exchange.
800
801	Failure to timely file the documents required under this
802	paragraph may, at the discretion of the office, subject the
803	association to suspension or revocation of its license under
804	this part. An association or parent corporation demonstrating
805	compliance with subparagraph 1. and subparagraph 2. must
806	maintain outstanding debt obligations, if any, rated in the top
807	four rating categories by a recognized rating service.
808	(b)  If the net worth of a parent corporation is used to
809	satisfy the net worth provisions of paragraph (a), the following
810	provisions must be met:
811	1.  The parent corporation must guarantee all service
812	warranty obligations of the association, wherever written, on a
813	form approved in advance by the office. No cancellation,
814	termination, or modification of the guarantee shall become
815	effective unless the parent corporation provides the office
816	written notice at least 90 days before the effective date of the
817	cancellation, termination, or modification and the office
818	approves the request in writing. Prior to the effective date of
819	cancellation, termination, or modification of the guarantee, the
820	association must demonstrate to the satisfaction of the office
821	compliance with all applicable provisions of this part,
822	including whether the association will meet the requirements of
823	this section by the purchase of contractual liability insurance,
824	establishing required reserves, or other method allowed under
825	this section. If the association or parent corporation does not
826	demonstrate to the satisfaction of the office compliance with
827	all applicable provisions of this part, it shall immediately
828	cease writing new and renewal business upon the effective date
829	of the cancellation, termination, or modification.
830	2.  The association must maintain at all times net assets
831	of at least $750,000.
832	Section 30.  Section 634.4225, Florida Statutes, is created
833	to read:
834	634.4225  Rebating; when allowed.--
835	(1)  No sales representative shall rebate any portion of
836	his or her commission except as follows:
837	(a)  The rebate shall be available to all consumers in the
838	same actuarial class.
839	(b)  The rebate shall be in accordance with a rebating
840	schedule filed by the sales representative with the association
841	issuing the service warranty to which the rebate applies. The
842	association shall maintain a copy of all rebating schedules for
843	a period of 3 years.
844	(c)  The rebating schedule shall be uniformly applied so
845	all consumers who purchase the same service warranty through the
846	sales representative for the same coverage shall receive the
847	same percentage rebate.
848	(d)  The rebate schedule shall be prominently displayed in
849	public view in the sales representative's place of business, and
850	a copy shall be made available to consumers on request at no
851	charge.
852	(e)  The age, sex, place of residence, race, nationality,
853	ethnic origin, marital status, or occupation of the consumer
854	shall not be used in determining the percentage of the rebate or
855	whether a rebate is available.
856	(2)  No rebate shall be withheld or limited in amount based
857	on factors which are unfairly discriminatory.
858	(3)  No rebate shall be given which is not reflected on the
859	rebate schedule.
860	(4)  No rebate shall be refused or granted based upon the
861	purchase of or failure to purchase collateral business.
862	Section 31.  Subsection (2) of section 624.4072, Florida
863	Statutes, is amended to read:
864	624.4072  Minority-owned property and casualty insurers;
865	limited exemption for taxation and assessments.--
866	(2)  Subsection (1) applies only to personal lines and
867	commercial lines residential property insurance policies as
868	defined in s. 627.4025, and applies only to an insurer that has
869	employees in this state and has a home office or a regional
870	office in this state.  With respect to any tax year or
871	assessment year, beginning with the original enactment of this
872	section, the exemptions provided by subsection (1) apply only if
873	during the year an average of at least 10 percent of the
874	insurer's Florida residential property policies in force
875	included coverage of covered properties located in enterprise
876	zones designated pursuant to s. 290.0065.
877	Section 32.  Subsection (1) of section 627.0629, Florida
878	Statutes, is amended to read:
879	627.0629  Residential property insurance; rate filings.--
880	(1)(a)  Effective June 1, 2002, a rate filing for
881	residential property insurance must include actuarially
882	reasonable discounts, credits, or other rate differentials, or
883	appropriate reductions in deductibles, for properties on which
884	fixtures or construction techniques demonstrated to reduce the
885	amount of loss in a windstorm have been installed or
886	implemented. The fixtures or construction techniques shall
887	include, but not be limited to, fixtures or construction
888	techniques which enhance roof strength, roof covering
889	performance, roof-to-wall strength, wall-to-floor-to-foundation
890	strength, opening protection, and window, door, and skylight
891	strength. Credits, discounts, or other rate differentials for
892	fixtures and construction techniques which meet the minimum
893	requirements of the Florida Building Code must be included in
894	the rate filing. All insurance companies must make a rate filing
895	which includes the credits, discounts, or other rate
896	differentials by February 28, 2003.
897	(b)  An insurer may petition the office for a hardship
898	exemption from the requirements of this section. In applying for
899	such an exemption, the insurer must demonstrate:
900	1.a.  That the number of policies written is insufficient
901	or of insufficient size to determine the appropriate credit,
902	discount, or other rate differential or reduction in
903	deductibles; or
904	b.  That the premium derived from the number of policies
905	written is so low as to render any credit, discount, or other
906	rate differential or appropriate reduction in deductibles not
907	cost-effective;
908	3.  That the cost of complying is greater to the insurer
909	than the resultant likely savings by virtue of any such credit,
910	discount, or other rate differential or appropriate reduction in
911	deductibles due to the actuarially demonstrated or actual small
912	number of policyholders likely to qualify for or qualifying for
913	the discount, credit, or other rate differential or appropriate
914	reduction in deductibles;
915	4.  That the type and condition of the market generally and
916	specifically to the insurer is such that the discount, credit,
917	or other rate differential or appropriate reduction in
918	deductibles is not actuarially justified;
919	5.  That granting the exemption is in the best interest of
920	the insurer; and
921	6.  That granting the exemption will not place the insurer
922	in an unfair competitive position with respect to other insurers
923	in the marketplace.
924
925	The office may grant the exemption upon its determination that
926	the conditions and standards set forth in this paragraph have
927	been met. The exemption is valid for 3 years after the date
928	granted. With respect to any petition for renewal of the
929	exemption, the chief executive officer of the insurer must
930	certify that there has been no material change in the conditions
931	under which the exemption was granted.
932	Section 33.  Sections 627.066 and 627.215, Florida
933	Statutes, are repealed.
934	Section 34.  Paragraph (d) of subsection (2) of section
935	627.0651, Florida Statutes, is amended to read:
936	627.0651  Making and use of rates for motor vehicle
937	insurance.--
938	(2)  Upon receiving notice of a rate filing or rate change,
939	the office shall review the rate or rate change to determine if
940	the rate is excessive, inadequate, or unfairly discriminatory.
941	In making that determination, the office shall in accordance
942	with generally accepted and reasonable actuarial techniques
943	consider the following factors:
944	(d)  Investment income reasonably expected by the insurer,
945	consistent with the insurer's investment practices, from
946	investable premiums anticipated in the filing, plus any other
947	expected income from currently invested assets representing the
948	amount expected on unearned premium reserves and loss reserves.
949	Such investment income shall not include income from invested
950	surplus.  The commission may adopt rules utilizing reasonable
951	techniques of actuarial science and economics to specify the
952	manner in which insurers shall calculate investment income
953	attributable to motor vehicle insurance policies written in this
954	state and the manner in which such investment income is used in
955	the calculation of insurance rates.  Such manner shall
956	contemplate the use of a positive underwriting profit allowance
957	in the rates that will be compatible with a reasonable rate of
958	return plus provisions for contingencies. The total of the
959	profit and contingency factor as specified in the filing shall
960	be utilized in computing excess profits in conjunction with s.
961	627.066. In adopting such rules, the commission shall in all
962	instances adhere to and implement the provisions of this
963	paragraph.
964	Section 35.  Subsection (4) of section 628.6017, Florida
965	Statutes, is amended to read:
966	628.6017  Converting assessable mutual insurer.--
967	(4)  An assessable mutual insurer becoming a stock insurer
968	or a nonassessable mutual insurer shall not be subject to s.
969	627.215 or s. 627.351(5) for 5 years following authorization of
970	the conversion by the office. However, the converted stock
971	insurer or nonassessable mutual insurer shall file all necessary
972	data required by s. 627.215. Such amounts otherwise subject to
973	s. 627.215(10) shall be maintained as surplus as to
974	policyholders and not be available for dividends for a period of
975	5 years.
976	Section 36.  Effective upon this act becoming a law, and
977	contingent upon the enactment of SB 2910, HB 1629, or similar
978	legislation, subsection (20) of section 627.64872, Florida
979	Statutes, is created to read:
980	627.64872  Florida Health Insurance Plan.--
981	(20)  COMBINING MEMBERSHIP OF THE FLORIDA COMPREHENSIVE
982	HEALTH ASSOCIATION.--
983	(a)1.  Upon implementation of the Florida Health Insurance
984	Plan, the Florida Comprehensive Health Association, as specified
985	in s. 627.6488, is abolished as a separate nonprofit entity and
986	shall be subsumed under the Board of Directors of the Florida
987	Health Insurance Plan. All individuals actively enrolled in the
988	Florida Comprehensive Health Association shall be enrolled in
989	the plan subject to its rules and requirements, except as
990	otherwise specified in this section. Maximum lifetime benefits
991	paid to an individual in the plan may not exceed the amount
992	established under subsection (16), and benefits previously paid
993	for any individual by the Florida Comprehensive Health
994	Association shall be used in the determination of the total
995	lifetime benefits paid under the plan.
996	2.  All persons enrolled in the Florida Comprehensive
997	Health Association upon implementation of the Florida Health
998	Insurance Plan are eligible only for the benefits authorized
999	under subsection (16). Persons identified by this section shall
1000	convert to the benefits authorized under subsection (16) no
1001	later than January 1, 2005.
1002	3.  Except as otherwise provided in this section, the
1003	Florida Comprehensive Health Association shall operate under the
1004	existing plan of operation without modification until the
1005	adoption of the new plan of operation for the Florida Health
1006	Insurance Plan.
1007	(b)  As a condition of doing business in this state, an
1008	insurer shall pay an assessment to the board in the amount
1009	prescribed by this paragraph. For operating losses incurred on
1010	or after July 1, 2004, by persons previously enrolled in the
1011	Florida Comprehensive Health Association, each insurer shall
1012	annually be assessed by the board in the following calendar year
1013	a portion of such incurred operating losses of the plan. Such
1014	portion shall be determined by multiplying such operating losses
1015	by a fraction, the numerator of which equals the insurer's
1016	earned premium pertaining to direct writings of health insurance
1017	in the state during the calendar year proceeding that for which
1018	the assessment is levied, and the denominator of which equals
1019	the total of all such premiums earned by participating insurers
1020	in the state during such calendar year. For the purposes of this
1021	section only, the term "health insurance" means any hospital and
1022	medical expense incurred policy, minimum premium plan, stop-loss
1023	coverage, health maintenance organization contract, prepaid
1024	health clinic contract, multiple-employer welfare arrangement
1025	contract, or fraternal benefit society health benefits contract,
1026	whether sold as an individual or group policy or contract. The
1027	term does not include any policy covering medical payment
1028	coverage or personal injury protection coverage in a motor
1029	vehicle policy, coverage issued as a supplement to liability
1030	insurance, or workers' compensation.
1031	Section 37.  Section 624.428, Florida Statutes, is amended
1032	to read:
1033	624.428  Licensed agent law, life and health insurances.--
1034	(1)  No life insurer shall deliver or issue for delivery in
1035	this state any policy of life insurance, master group life
1036	insurance contract, master credit life policy or agreement,
1037	annuity contract, or contract or policy of health insurance,
1038	unless the application for such policy or contract is taken by,
1039	and the delivery of such policy or contract is made through, a
1040	resident or nonresident an insurance agent of the insurer duly
1041	licensed and appointed under the law of this state, who shall
1042	receive the usual commission due to an agent from such insurer.
1043	(2)  Each such insurer shall maintain a licensed and
1044	appointed resident or nonresident agent at all times for the
1045	purpose of and through whom policies or contracts issued or
1046	delivered in this state shall be serviced.
1047	(3)  This section does not apply to policies of insurance
1048	or annuity contracts on nonresidents which are applied for
1049	outside, and delivered in, the state or to reissuance of
1050	insurance policies or endorsements thereto which are part of a
1051	mass reissuance of such policies or endorsements and do not
1052	involve a change of premium or payment of agent's commissions.
1053	Section 38.  Section 627.0915, Florida Statutes, is amended
1054	to read:
1055	627.0915  Rate filings; workers' compensation, drug-free
1056	workplace, and safe employers.--
1057	(1)  The office shall approve rating plans for workers'
1058	compensation and employer's liability insurance that give
1059	specific identifiable consideration in the setting of rates to
1060	employers that either implement a drug-free workplace program
1061	pursuant to s. 440.102 and rules adopted thereunder by the
1062	commission or implement a safety program pursuant to provisions
1063	of the rating plan or implement both a drug-free workplace
1064	program and a safety program. The plans must be actuarially
1065	sound and must state the savings anticipated to result from such
1066	drug-testing and safety programs.
1067	(2)  An insurer offering a rate plan approved under this
1068	section shall notify the employer at the time of a written offer
1069	of insurance and at the time of each renewal of the policy of
1070	the availability of the premium discount where a drug-free
1071	workplace plan is used by the employer pursuant to s. 440.102
1072	and related rules. The commission shall adopt rules to implement
1073	this section.
1074	Section 39.  Subsection (7) of section 440.16, Florida
1075	Statutes, is repealed.
1076	Section 40.  For purposes of s. 440.102, Florida Statutes,
1077	a physician shall not serve as a medical review officer when a
1078	specimen submitted for a drug test is:
1079	(1)  Collected by such physician or by an person or entity
1080	who employs, is employed by, contracts with, or otherwise
1081	provides a financial benefit to such physician; or
1082	(2)  Submitted by an employee or job applicant who is a
1083	recipient of any medical service from such physician or from any
1084	person or entity who employs, is employed by, contracts with or
1085	otherwise provides a financial benefit to such physician.
1086
1087	================= T I T L E  A M E N D M E N T =================
1088	On page 1, line 8,
1089	remove:  all of said line
1090
1091	and insert:
1092	as corporate officers; amending s. 624.447, F.S., relating to
1093	certificate of insurance for contractors; prohibiting
1094	withholding of payment under certain conditions; amending s.
1095	626.2815, F.S.; deleting certain minimum continuing education
1096	requirements; amending s. 626.015, F.S.; defining the term
1097	"personal lines agent";  amending s. 626.022, F.S.; providing
1098	for application; amending s. 626.241, F.S.; limiting the scope
1099	of personal lines agent examinations; amending s. 626.311, F.S.;
1100	limiting the types of business that may be transacted by
1101	personal lines agents; amending s. 626.727, F.S.; providing that
1102	certain provisions apply to personal lines agents; amending s.
1103	626.732, F.S.; revising certain education and experience
1104	requirements for personal lines agents; amending s. 626.747,
1105	F.S.; requiring branch agencies to have certain licensed agents
1106	at each location; amending s. 627.0915, F.S., relating to drug-
1107	free workplace discounts; providing for notice by insurers to
1108	employers of the availability of premium discounts where certain
1109	drug-free workplace programs are used; amending s. 627.351,
1110	F.S.; providing that certain employees of the Citizens' Property
1111	Insurance Corporation need not be licensed as agents; providing
1112	that the act does not require the Department of Financial
1113	Services to begin issuing certain licenses by the effective date
1114	of the act, under specified conditions; amending s. 626.321,
1115	F.S.; limiting the types of business that may be transacted by
1116	personal lines agents; amending s. 628.709, F.S.; revising
1117	membership criteria for mutual insurance holding companies
1118	relating to policyholders of subsidiary insurance companies;
1119	amending s. 631.021, F.S.; authorizing certain domiciliary
1120	courts to exercise exclusive jurisdiction over certain persons
1121	under certain circumstances; specifying the Circuit Court of
1122	Leon County as having exclusive jurisdiction over certain
1123	proceedings and claims; amending s. 631.041, F.S.; entitling the
1124	estates of certain injured insurers to actual damages;
1125	authorizing a receivership court to impose additional sanctions;
1126	amending s. 631.0515, F.S.; subjecting certain managing general
1127	agents or holding companies to court jurisdiction under certain
1128	circumstances; amending s. 631.141, F.S.; specifying certain
1129	expenses as administrative and recoverable by a receiver in
1130	certain proceedings; amending s. 631.205, F.S.; specifying that
1131	entry of certain orders does not constitute anticipatory breach
1132	of certain contracts or serve as grounds for certain adverse
1133	contract actions by a reinsurer; creating s. 631.206, F.S.;
1134	voiding certain contractual arbitration provisions by insurers
1135	in receivership; specifying a replacement arbitration provision;
1136	amending s. 631.261, F.S.; voiding certain transfers or liens
1137	made by certain persons prior to certain delinquency
1138	proceedings; specifying a criterion for making certain
1139	transfers; amending ss. 631.262 and 631.263, F.S.; specifying a
1140	criterion for making certain transfers; amending ss. 631.54 and
1141	631.904, F.S.; revising the definition of covered claim;
1142	excluding certain claims rejected by another state's guaranty
1143	fund under certain circumstances; providing an exception;
1144	denying member insurers any right to indemnification or
1145	contribution sought through third parties; creating s. 634.1815,
1146	F.S.; providing conditions under which a salesperson of a motor
1147	vehicle service agreement company may rebate his or her
1148	commission; creating s. 634.3205, F.S.; providing conditions
1149	under which a sales representative of a home warranty
1150	association may rebate his or her commission; amending s.
1151	634.406, F.S.; providing conditions under which a service
1152	warranty association is exempt from certain premium reserve and
1153	liability insurance requirements and may allow premiums to
1154	exceed certain limits; creating s. 634.4225, F.S.; providing
1155	conditions under which a sales representative of a service
1156	warranty association may rebate his or her commission; amending
1157	s. 624.4072, F.S.; specifying applicability of certain
1158	exemptions for minority-owned property and casualty insurers;
1159	amending s. 627.0629, F.S.; authorizing an exemption for certain
1160	insurers under certain circumstances; repealing ss. 627.066 and
1161	627.215, F.S., relating to insurance profits; amending ss.
1162	627.0651 and 628.6017, F.S., to conform; creating s.
1163	627.64872(20), F.S.; defining the term "health insurance" for
1164	purposes of this section; creating s. 17.0416, F.S.; amending s.
1165	624.428, F.S.; clarifying provisions relating to resident agent
1166	requirements for insurers issuing specified types of life
1167	insurance policies; amending s. 627.0915, F.S., relating to
1168	drug-free workplace discounts; providing for notice by insurers
1169	to employers of the availability of premium discounts where
1170	certain drug-free workplace programs are used; repealing s.
1171	440.16(7), F.S., relating to compensation for death benefits for
1172	aliens; prohibiting a physician from serving as a medical review
1173	officer for drug-free workplaces for specimens submitted for a
1174	drug test under certain circumstances; amending ss. 440.05,

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