Senate Bill sb2442

    Florida Senate - 2004                                  SB 2442

    By Senator Margolis





    35-1603-04

  1                      A bill to be entitled

  2         An act relating to life insurance and annuity

  3         contracts; amending s. 624.402, F.S.; providing

  4         that a certificate of authority is not required

  5         for certain life insurance policies or annuity

  6         contracts issued by an insurer domiciled

  7         outside the United States and covering only

  8         persons who are not residents of the United

  9         States; requiring that the Office of Insurance

10         Regulation determine that the insurer meets

11         certain requirements; requiring the insurer to

12         disclose certain information; providing for the

13         office to determine when the insurer is no

14         longer eligible for the exemption; providing an

15         exemption from certain taxes; providing an

16         effective date.

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18  Be It Enacted by the Legislature of the State of Florida:

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20         Section 1.  Subsection (8) is added to section 624.402,

21  Florida Statutes, to read:

22         624.402  Exceptions, certificate of authority

23  required.--A certificate of authority shall not be required of

24  an insurer with respect to:

25         (8)(a)  Life insurance policies or annuity contracts

26  issued by an insurer domiciled outside the United States

27  covering only persons who are not residents of the United

28  States at the time of issuance, provided:

29         1.  The office determines that the insurer meets the

30  same requirements as an eligible surplus lines insurer as set

31  forth in s. 626.918(2).

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    Florida Senate - 2004                                  SB 2442
    35-1603-04




 1         2.  The insurer provides to the applicant for the

 2  policy or contract a copy of financial statements of the

 3  insurer as of a date not earlier than 120 days prior to the

 4  date of provision of such financial statements and discloses

 5  in writing to the applicant, in clear and conspicuous

 6  language:

 7         a.  The date of organization of the insurer;

 8         b.  The identity of and rating assigned by each

 9  recognized insurance company rating organization that has

10  rated the insurer or, if applicable, that the insurer is

11  unrated;

12         c.  That the insurer does not hold a certificate of

13  authority issued in Florida and that the Office of Insurance

14  Regulation does not exercise regulatory oversight over the

15  insurer; and

16         d.  The identity and address of the regulatory

17  authority exercising oversight of the insurer.

18         (b)  If at any time the office has reason to believe

19  that an insurer issuing policies or contracts pursuant to this

20  subsection is insolvent or in unsound financial condition,

21  does not make reasonable prompt payment of benefits, or is no

22  longer eligible under the conditions specified in this

23  subsection, it shall withdraw the eligibility of the insurer

24  to issue policies or contracts pursuant to this subsection

25  without having a certificate of authority issued by the

26  office.

27         (c)  This section does not provide an exception to the

28  agent licensure requirements of chapter 626. Any insurer

29  issuing policies or contracts pursuant to this subsection

30  shall appoint the agents that it uses to sell such policies or

31  contracts, as provided in chapter 626.

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    Florida Senate - 2004                                  SB 2442
    35-1603-04




 1         (d)  An insurer issuing policies or contracts pursuant

 2  to this subsection is subject to part IX of chapter 626,

 3  Unfair Insurance Trade Practices, and the office may take such

 4  actions against the insurer for a violation as are provided in

 5  that part.

 6         (e)  Policies and contracts issued pursuant to this

 7  subsection are not subject to the premium tax specified in s.

 8  624.509.

 9         Section 2.  This act shall take effect July 1, 2004.

10  

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12                          SENATE SUMMARY

13    Provides that life insurance policies and annuity
      contracts issued by insurers domiciled outside the United
14    States and covering persons not residents of the United
      States need not have a certificate of authority. However,
15    the Office of Insurance Regulation must determine if the
      insurer meets certain requirements and may determine when
16    it fails to do so. An insurer issuing such policies must
      disclose information to applicants therefor.
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CODING: Words stricken are deletions; words underlined are additions.