Amendment

Bill No. 2588

Amendment No. 004301

CHAMBER ACTION
Senate		House
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1	Representative Berfield offered the following:
2
3	Amendment to Amendment (467323) (with title amendment)
4	Between lines 725 and 726, insert:
5	Section 43.  Subsection (2) of section 624.318, Florida
6	Statutes, is amended to read:
7	624.318  Conduct of examination or investigation; access to
8	records; correction of accounts; appraisals.--
9	(2)  Every person being examined or investigated, and its
10	officers, attorneys, employees, agents, and representatives,
11	shall make freely available to the department or office or its
12	examiners or investigators the accounts, records, documents,
13	files, information, assets, and matters in their possession or
14	control relating to the subject of the examination or
15	investigation. An agent who provides other products or services
16	or maintains customer information not related to insurance must
17	maintain records relating to insurance products and transactions
18	separately if necessary to give the department or office access
19	to such records. If records relating to the insurance
20	transactions are maintained by an agent on premises owned or
21	operated by a third party, the agent and the third party must
22	provide access to the records by the department or office. If
23	any person refuses to provide copies of records, accounts,
24	documents, files, or information requested by the department or
25	office or its examiners or investigators under this subsection,
26	the department or office, or its examiners or investigators, may
27	photocopy or scan the materials.
28	Section 44.  Subsection (20) of section 624.501, Florida
29	Statutes, is amended to read:
30	624.501  Filing, license, appointment, and miscellaneous
31	fees.--The department, commission, or office, as appropriate,
32	shall collect in advance, and persons so served shall pay to it
33	in advance, fees, licenses, and miscellaneous charges as
34	follows:
35	(20)  Insurance agency or Adjusting firm, original or
36	renewal 3-year license....$60.00
37	Section 45.  Subsection (1) of section 626.016, Florida
38	Statutes, is amended to read:
39	626.016  Powers and duties of department, commission, and
40	office.--
41	(1)  The powers and duties of the Chief Financial Officer
42	and the department specified in this part apply only with
43	respect to insurance agents, insurance agencies, managing
44	general agents, reinsurance intermediaries, viatical settlement
45	brokers, customer representatives, service representatives, and
46	agencies.
47	Section 46.  Subsection (7) of section 626.112, Florida
48	Statutes, is amended to read:
49	626.112  License and appointment required; agents, customer
50	representatives, adjusters, insurance agencies, service
51	representatives, managing general agents.--
52	(7)(a)  Effective October 1, 2005, no individual, firm,
53	partnership, corporation, association, or any other entity shall
54	act in its own name or under a trade name, directly or
55	indirectly, as an insurance agency, when required to be licensed
56	by this subsection, unless it complies with s. 626.172 with
57	respect to possessing an insurance agency license or
58	registration for each place of business at which it engages in
59	any activity which may be performed only by a licensed insurance
60	agent. Each insurance agency that was engaged in the business of
61	transacting insurance in this state prior to January 1, 2001,
62	and is wholly owned by insurance agents currently licensed and
63	appointed under this chapter, each incorporated agency whose
64	voting shares are traded on a securities exchange, and each
65	insurance agency whose primary function is offering insurance as
66	a service or member benefit to members of a nonprofit
67	corporation may file an application for registration in lieu of
68	licensure in accordance with s. 626.172(3). An agency engaged in
69	business before October 1, 2005, shall file an application for
70	licensure or registration on or before October 1, 2005.
71	1.  If an agency is required to be licensed but fails to
72	file an application for licensure in accordance with this
73	section, the department shall impose on the agency an
74	administrative penalty in an amount of up to $10,000.
75	2.  If an agency is eligible for registration but fails to
76	file an application for registration or an application for
77	licensure in accordance with this section, the department shall
78	impose on the agency an administrative penalty in an amount of
79	up to $5,000.
80	(b)  A registered An insurance agency shall, as a condition
81	precedent to continuing business, obtain an insurance agency
82	license if the department finds that, with respect to any
83	majority owner, partner, manager, director, officer, or other
84	person who manages or controls the agency, any person has,
85	subsequent to the effective date of this act:
86	1.  Been found guilty of, or has pleaded guilty or nolo
87	contendere to, a felony in this state or any other state
88	relating to the business of insurance or to an insurance agency,
89	without regard to whether a judgment of conviction has been
90	entered by the court having jurisdiction of the cases.
91	2.  Employed any individual in a managerial capacity or in
92	a capacity dealing with the public who is under an order of
93	revocation or suspension issued by the department.  An insurance
94	agency may request, on forms prescribed by the department,
95	verification of any person's license status. If a request is
96	mailed within 5 working days after an employee is hired, and the
97	employee's license is currently suspended or revoked, the agency
98	shall not be required to obtain a license, if the unlicensed
99	person's employment is immediately terminated.
100	3.  Operated the agency or permitted the agency to be
101	operated in violation of s. 626.747.
102	4.  With such frequency as to have made the operation of
103	the agency hazardous to the insurance-buying public or other
104	persons:
105	a.  Solicited or handled controlled business.  This
106	subparagraph shall not prohibit the licensing of any lending or
107	financing institution or creditor, with respect to insurance
108	only, under credit life or disability insurance policies of
109	borrowers from the institutions, which policies are subject to
110	part IX of chapter 627.
111	b.  Misappropriated, converted, or unlawfully withheld
112	moneys belonging to insurers, insureds, beneficiaries, or others
113	and received in the conduct of business under the license.
114	c.  Unlawfully rebated, attempted to unlawfully rebate, or
115	unlawfully divided or offered to divide commissions with
116	another.
117	d.  Misrepresented any insurance policy or annuity
118	contract, or used deception with regard to any policy or
119	contract, done either in person or by any form of dissemination
120	of information or advertising.
121	e.  Violated any provision of this code or any other law
122	applicable to the business of insurance in the course of dealing
123	under the license.
124	f.  Violated any lawful order or rule of the department.
125	g.  Failed or refused, upon demand, to pay over to any
126	insurer he or she represents or has represented any money coming
127	into his or her hands belonging to the insurer.
128	h.  Violated the provision against twisting as defined in
129	s. 626.9541(1)(l).
130	i.  In the conduct of business, engaged in unfair methods
131	of competition or in unfair or deceptive acts or practices, as
132	prohibited under part IX of this chapter.
133	j.  Willfully overinsured any property insurance risk.
134	k.  Engaged in fraudulent or dishonest practices in the
135	conduct of business arising out of activities related to
136	insurance or the insurance agency.
137	l.  Demonstrated lack of fitness or trustworthiness to
138	engage in the business of insurance arising out of activities
139	related to insurance or the insurance agency.
140	m.  Authorized or knowingly allowed individuals to transact
141	insurance who were not then licensed as required by this code.
142	5.  Knowingly employed any person who within the preceding
143	3 years has had his or her relationship with an agency
144	terminated in accordance with paragraph(d).
145	6.  Willfully circumvented the requirements or prohibitions
146	of this code.
147	(c)  An agency required to be licensed in accordance with
148	paragraph (b) shall remain so licensed for a period of 3 years
149	from the date of licensure unless the license is suspended or
150	revoked in accordance with law. The department may revoke or
151	suspend the agency authority to do business for activities
152	occurring during the time the agency is licensed, regardless of
153	whether the licensing period has terminated.
154	(d)  Notwithstanding the provisions of this subsection, no
155	insurance agency shall be required to apply for an agency
156	license if such agency can prove to the department that:
157	1.  The agency is severing its relationship with each
158	majority owner, partner, manager, director, officer, or other
159	person who managed or controlled such agency and who violated
160	any of the provisions of paragraph (b).
161	2.  No such majority owner, partner, manager, director,
162	officer, or other person who managed such agency is to be
163	affiliated with such agency in any capacity for a period of 3
164	years from the date of such severance.
165	Section 47.  Section 626.171, Florida Statutes, is amended
166	to read:
167	626.171  Application for license as agent, customer
168	representative, adjuster, service representative, managing
169	general agent, or reinsurance intermediary.--
170	(1)  The department or office shall not issue a license as
171	agent, customer representative, adjuster, insurance agency,
172	service representative, managing general agent, or reinsurance
173	intermediary to any person except upon written application
174	therefor filed with it, qualification therefor, and payment in
175	advance of all applicable fees. Any such application shall be
176	made under the oath of the applicant and be signed by the
177	applicant. Beginning November 1, 2002, The department shall
178	accept the uniform application for nonresident agent licensing.
179	The department may adopt revised versions of the uniform
180	application by rule.
181	(2)  In the application, the applicant shall set forth:
182	(a)  His or her full name, age, social security number,
183	residence address, business address, and mailing address.
184	(b)  Proof that he or she has completed or is in the
185	process of completing any required prelicensing course.
186	(c)  Whether he or she has been refused or has voluntarily
187	surrendered or has had suspended or revoked a license to solicit
188	insurance by the department or by the supervising officials of
189	any state.
190	(d)  Whether any insurer or any managing general agent
191	claims the applicant is indebted under any agency contract or
192	otherwise and, if so, the name of the claimant, the nature of
193	the claim, and the applicant's defense thereto, if any.
194	(e)  Proof that the applicant meets the requirements for
195	the type of license for which he or she is applying.
196	(f)  Such other or additional information as the department
197	or office may deem proper to enable it to determine the
198	character, experience, ability, and other qualifications of the
199	applicant to hold himself or herself out to the public as an
200	insurance representative.
201	(3)  An application for an insurance agency license shall
202	be signed by the owner or owners of the agency. If the agency is
203	incorporated, the application shall be signed by the president
204	and secretary of the corporation.
205	(3)(4)  Each application shall be accompanied by payment of
206	any applicable fee.
207	(4)(5)  An application for a license as an agent, customer
208	representative, adjuster, insurance agency, service
209	representative, managing general agent, or reinsurance
210	intermediary must be accompanied by a set of the individual
211	applicant's fingerprints, or, if the applicant is not an
212	individual, by a set of the fingerprints of the sole proprietor,
213	majority owner, partners, officers, and directors, on a form
214	adopted by rule of the department or commission and accompanied
215	by the fingerprint processing fee set forth in s. 624.501.
216	Fingerprints shall be used to investigate the applicant's
217	qualifications pursuant to s. 626.201. The fingerprints shall be
218	taken by a law enforcement agency or other department-approved
219	entity.
220	(5)(6)  The application for license filing fee prescribed
221	in s. 624.501 is not subject to refund.
222	(6)(7)  Pursuant to the federal Personal Responsibility and
223	Work Opportunity Reconciliation Act of 1996, each party is
224	required to provide his or her social security number in
225	accordance with this section. Disclosure of social security
226	numbers obtained through this requirement shall be limited to
227	the purpose of administration of the Title IV-D program for
228	child support enforcement.
229	Section 48.  Section 626.172, Florida Statutes, is amended
230	to read:
231	626.172  Application for insurance agency license.--
232	(1)  The department may issue a license as an insurance
233	agency to any person only after such person files a written
234	application with the department and qualifies for such license.
235	If any majority owner, partner, officer, or director of an
236	insurance agency:
237	(a)  Has been found guilty of, or has pleaded guilty or
238	nolo contendere to, a felony relating to the business of
239	insurance in this state or any other state or federal court,
240	regardless of whether a judgment of conviction has been entered
241	by the court having jurisdiction of such cases; or
242	(b)  Has been denied a license relating to the business of
243	insurance, or has had his or her license to practice or conduct
244	any regulated profession, business, or vocation relating to the
245	business of insurance revoked or suspended, by this or any other
246	state, any nation, any possession or district of the United
247	States, or any court, or any lawful agency thereof;
248
249	the insurance agency and any subsidiary or branch thereof shall
250	obtain a license from the department pursuant to this section.
251	(2)  An application for an insurance agency license shall
252	be signed by the owner or owners of the agency. If the agency is
253	incorporated, the application shall be signed by the president
254	and secretary of the corporation. The application for an
255	insurance agency license shall include:
256	(a)  The name of each majority owner, partner, officer, and
257	director of the insurance agency.
258	(b)  The residence address of each person required to be
259	listed in the application under paragraph (a).
260	(c)  The name of the insurance agency and its principal
261	business address.
262	(d)  The location of each agency office and the name under
263	which each agency office conducts or will conduct business.
264	(e)  The name of each agent to be in full-time charge of an
265	agency office and specification of which office.
266	(f)  Fingerprints for each of the following:
267	1.  A sole proprietor;
268	2.  Each partner;
269	3.  Each owner of an unincorporated agency;
270	4.  Each owner who directs or participates in the
271	management or control of an incorporated agency whose shares are
272	not traded on a securities exchange;
273	5.  Each owner of 10 percent or more of the voting shares
274	of a corporation which are traded on a securities exchange who
275	directs or participates in the management or control of an
276	incorporated agency;
277	6.  The president, senior vice-presidents, treasurer,
278	secretary, and directors of the agency; and
279	7.  Any other person who directs or participates in the
280	management or control of the agency, whether through the
281	ownership of voting securities, by contract, or otherwise.
282
283	Fingerprints must be taken by a law enforcement agency or other
284	entity approved by the department and must be accompanied by the
285	fingerprint processing fee specified in s. 624.501. However,
286	fingerprints need not be filed for any individual who is
287	currently licensed and appointed under this chapter. The name of
288	any person to whom subsection (1) applies.
289	(g)  Such additional information as the department requires
290	by promulgated rule to ascertain the trustworthiness and
291	competence of persons required to be listed on the application
292	and to ascertain that such persons meet the requirements of this
293	code. However, the department may not require that credit or
294	character reports be submitted for persons required to be listed
295	on the application.
296	(h)  Beginning July 1, 2004, the department shall accept
297	the uniform application for nonresident agency licensure. The
298	department may adopt by rule revised versions of the uniform
299	application.
300	(3)  The department shall issue a registration as an
301	insurance agency to any agency that files a written application
302	with the department and qualifies for registration. The
303	application for registration shall require the agency to provide
304	the same information required for an agency licensed under
305	subsection (2), the agent identification number for each owner
306	who is a licensed agent, proof that the agency qualifies for
307	registration as provided in s. 626.112(7), and any other
308	additional information the department determines is necessary to
309	demonstrate that the agency qualifies for registration; except
310	paragraph (2)(f) shall not apply to corporations whose voting
311	shares are traded on a securities exchange. The application must
312	be signed by the owner or owners of the agency. If the agency is
313	incorporated, the application must be signed by the president
314	and the secretary of the corporation. An agent who owns the
315	agency need not file fingerprints with the department if the
316	agent obtained a license under this chapter, and the license is
317	currently valid.
318	(a)  If an application for registration is denied, the
319	agency must file an application for licensure no later than 30
320	days after the date of the denial of registration.
321	(b)  A registered insurance agency must file an application
322	for licensure no later than 30 days after the date that any
323	person who is not a licensed and appointed agent in this state
324	acquires any ownership interest in the agency. If an agency
325	fails to file an application for licensure in compliance with
326	this paragraph, the department shall impose an administrative
327	penalty in an amount of up to $5,000 on the agency.
328	(c)  Sections 626.6115 and 626.6215 do not apply to
329	agencies registered under this subsection.
330	(4)  The department shall issue a license or registration
331	to each agency upon approval of the application and each agency
332	shall display the license or registration prominently in a
333	manner that makes it clearly visible to any customer or
334	potential customer who enters the agency.
335	Section 49.  Section 626.191, Florida Statutes, is amended
336	to read:
337	626.191  Repeated applications.--The failure of an
338	applicant to secure a license upon an application shall not
339	preclude the applicant him or her from applying again as many
340	times as desired, but the department or office shall not give
341	consideration to or accept any further application by the same
342	individual for a similar license dated or filed within 30 days
343	subsequent to the date the department or office denied the last
344	application, except as provided in s. 626.281.
345	Section 50.  Subsection (1) of section 626.201, Florida
346	Statutes, is amended to read:
347	626.201  Investigation.--
348	(1)  The department or office may propound any reasonable
349	interrogatories in addition to those contained in the
350	application, to any applicant for license or appointment, or on
351	any renewal, reinstatement, or continuation thereof, relating to
352	the applicant's his or her qualifications, residence,
353	prospective place of business, and any other matter which, in
354	the opinion of the department or office, is deemed necessary or
355	advisable for the protection of the public and to ascertain the
356	applicant's qualifications.
357	Section 51.  Section 626.221, Florida Statutes, is amended
358	to read:
359	626.221  Examination requirement; exemptions.--
360	(1)  The department or office shall not issue any license
361	as agent, customer representative, or adjuster to any individual
362	who has not qualified for, taken, and passed to the satisfaction
363	of the department or office a written examination of the scope
364	prescribed in s. 626.241.
365	(2)  However, no such examination shall be necessary in any
366	of the following cases:
367	(a)  An applicant for renewal of appointment as an agent,
368	customer representative, or adjuster, unless the department or
369	office determines that an examination is necessary to establish
370	the competence or trustworthiness of such applicant.
371	(b)  An applicant for limited license as agent for personal
372	accident insurance, baggage and motor vehicle excess liability
373	insurance, credit life or disability insurance, credit
374	insurance, credit property insurance, in-transit and storage
375	personal property insurance, or communications equipment
376	property insurance or communication equipment inland marine
377	insurance.
378	(c)  In the discretion of the department or office, an
379	applicant for reinstatement of license or appointment as an
380	agent, customer representative, or adjuster whose license has
381	been suspended within 2 years prior to the date of application
382	or written request for reinstatement.
383	(d)  An applicant who, within 2 years prior to application
384	for license and appointment as an agent, customer
385	representative, or adjuster, was a full-time salaried employee
386	of the department or office and had continuously been such an
387	employee with responsible insurance duties for not less than 2
388	years and who had been a licensee within 2 years prior to
389	employment by the department or office with the same class of
390	license as that being applied for.
391	(e)  An individual who qualified as a managing general
392	agent, service representative, customer representative, or all-
393	lines adjuster by passing a general lines agent's examination
394	and subsequently was licensed and appointed and has been
395	actively engaged in all lines of property and casualty insurance
396	may, upon filing an application for appointment, be licensed and
397	appointed as a general lines agent for the same kinds of
398	business without taking another examination if he or she holds
399	any such currently effective license referred to in this
400	paragraph or held the license within 48 months prior to the date
401	of filing the application with the department.
402	(e)(f)  A person who has been licensed and appointed as a
403	public adjuster, or independent adjuster, or licensed and
404	appointed either as an agent or company adjuster as to all
405	property, casualty, and surety insurances, may be licensed and
406	appointed as a company adjuster as to any of such insurances, or
407	as an independent, adjuster or public adjuster, for these types
408	of insurance without additional written examination if an
409	application for licensure appointment is filed with the office
410	within 48 months following the date of cancellation or
411	expiration of the prior appointment.
412	(f)(g)  A person who has been licensed as an adjuster for
413	motor vehicle, property and casualty, workers' compensation, and
414	health insurance may be licensed as such an adjuster without
415	additional written examination if his or her application for
416	licensure appointment is filed with the office within 48 months
417	after cancellation or expiration of the prior license.
418	(g)(h)  An applicant for temporary license, except as
419	provided in this code.
420	(h)(i)  An applicant for a life or health license who has
421	received the designation of chartered life underwriter (CLU)
422	from the American College of Life Underwriters and who has been
423	engaged in the insurance business within the past 4 years,
424	except that such an individual may be examined on pertinent
425	provisions of this code.
426	(i)(j)  An applicant for license as a general lines agent,
427	customer representative, or adjuster who has received the
428	designation of chartered property and casualty underwriter
429	(CPCU) from the American Institute for Property and Liability
430	Underwriters and who has been engaged in the insurance business
431	within the past 4 years, except that such an individual may be
432	examined on pertinent provisions of this code.
433	(j)(k)  An applicant for license as a customer
434	representative who has the designation of Accredited Advisor in
435	Insurance(AAI) from the Insurance Institute of America, the
436	designation of Certified Insurance Counselor (CIC) from the
437	Society of Certified Insurance Service Counselors, the
438	designation of Accredited Customer Service Representative(ACSR)
439	from the Independent Insurance Agents of America, the
440	designation of Certified Professional Service Representative
441	(CPSR) from the National Foundation for Certified Professional
442	Service Representatives, the designation of Certified Insurance
443	Service Representative (CISR) from the Society of Certified
444	Insurance Service Representatives. Also, an applicant for
445	license as a customer representative who has the designation of
446	Certified Customer Service Representative (CCSR) from the
447	Florida Association of Insurance Agents, or the designation of
448	Registered Customer Service Representative(RCSR) from a
449	regionally accredited postsecondary institution in this state,
450	or the designation of Professional Customer Service
451	Representative (PCSR) from the Professional Career Institute,
452	whose curriculum has been approved by the department and whose
453	curriculum includes comprehensive analysis of basic property and
454	casualty lines of insurance and testing at least equal to that
455	of standard department testing for the customer representative
456	license. The department shall adopt rules establishing standards
457	for the approval of curriculum.
458	(k)(l)  An applicant for license as an adjuster who has the
459	designation of Accredited Claims Adjuster (ACA) from a
460	regionally accredited postsecondary institution in this state,
461	or the designation of Professional Claims Adjuster (PCA) from
462	the Professional Career Institute, whose curriculum has been
463	approved by the office and whose curriculum includes
464	comprehensive analysis of basic property and casualty lines of
465	insurance and testing at least equal to that of standard office
466	testing for the all-lines adjuster license. The commission shall
467	adopt rules establishing standards for the approval of
468	curriculum.
469	(l)(m)  An applicant qualifying for a license transfer
470	under s. 626.292, if the applicant:
471	1.  Has successfully completed the prelicensing examination
472	requirements in the applicant's previous state which are
473	substantially equivalent to the examination requirements in this
474	state, as determined by the department;
475	2.  Has received the designation of chartered property and
476	casualty underwriter (CPCU) from the American Institute for
477	Property and Liability Underwriters and has been engaged in the
478	insurance business within the past 4 years if applying to
479	transfer a general lines agent license; or
480	3.  Has received the designation of chartered life
481	underwriter (CLU) from the American College of Life Underwriters
482	and has been engaged in the insurance business within the past 4
483	years, if applying to transfer a life or health agent license.
484	(n)  An applicant for a nonresident agent license, if the
485	applicant:
486	1.  Has successfully completed prelicensing examination
487	requirements in the applicant's home state which are
488	substantially equivalent to the examination requirements in this
489	state, as determined by the department, as a requirement for
490	obtaining a resident license in his or her home state;
491	2.  Held a general lines agent license, life agent license,
492	or health agent license prior to the time a written examination
493	was required;
494	3.  Has received the designation of chartered property and
495	casualty underwriter (CPCU) from the American Institute for
496	Property and Liability Underwriters and has been engaged in the
497	insurance business within the past 4 years, if an applicant for
498	a nonresident license as a general lines agent; or
499	4.  Has received the designation of chartered life
500	underwriter (CLU) from the American College of Life Underwriters
501	and has been in the insurance business within the past 4 years,
502	if an applicant for a nonresident license as a life agent or
503	health agent.
504	(3)  An individual who is already licensed as a customer
505	representative shall not be licensed as a general lines agent
506	without application and examination for such license.
507	Section 52.  Subsections (1) and (2) of section 626.342,
508	Florida Statutes, are amended to read:
509	626.342  Furnishing supplies to unlicensed life, health, or
510	general lines agent prohibited; civil liability.--
511	(1)  An insurer, a managing general agent, an insurance
512	agency, or an agent, directly or through any representative, may
513	not furnish to any agent any blank forms, applications,
514	stationery, or other supplies to be used in soliciting,
515	negotiating, or effecting contracts of insurance on its behalf
516	unless such blank forms, applications, stationery, or other
517	supplies relate to a class of business with respect to which the
518	agent is licensed and appointed, whether for that insurer or
519	another insurer.
520	(2)  Any insurer, general agent, insurance agency, or agent
521	who furnishes any of the supplies specified in subsection (1) to
522	any agent or prospective agent not appointed to represent the
523	insurer and who accepts from or writes any insurance business
524	for such agent or agency is subject to civil liability to any
525	insured of such insurer to the same extent and in the same
526	manner as if such agent or prospective agent had been appointed
527	or authorized by the insurer or such agent to act in its or his
528	or her behalf. The provisions of this subsection do not apply to
529	insurance risk apportionment plans under s. 627.351.
530	Section 53.  Section 626.382, Florida Statutes, is amended
531	to read:
532	626.382  Continuation, expiration of license; insurance
533	agencies.--The license of any insurance agency shall be issued
534	for a period of 3 years, subject to the payment of the fees
535	prescribed in s. 624.501, and shall continue in force until
536	canceled, suspended, revoked, or otherwise terminated. Renewal
537	requests shall be made by submitting to the department a form
538	adopted by departmental rule.
539	Section 54.  Subsection (3) of section 626.451, Florida
540	Statutes, is amended to read:
541	626.451  Appointment of agent or other representative.--
542	(3)  By authorizing the effectuation of the appointment of
543	an agent, adjuster, service representative, customer
544	representative, or managing general agent the appointing entity
545	is thereby certifying to the department that it is willing to be
546	bound by the acts of the agent, adjuster, service
547	representative, customer representative, or managing general
548	agent, within the scope of the licensee's employment or
549	appointment.
550	Section 55.  Section 626.536, Florida Statutes, is amended
551	to read:
552	626.536  Reporting of actions.--Each An agent and insurance
553	agency shall submit to the department, within 30 days after the
554	final disposition of any administrative action taken against the
555	agent by a governmental agency in this or any other state or
556	jurisdiction relating to the business of insurance, the sale of
557	securities, or activity involving fraud, dishonesty,
558	trustworthiness, or breach of a fiduciary duty, a copy of the
559	order, consent to order, or other relevant legal documents. The
560	department may adopt rules implementing the provisions of this
561	section.
562	Section 56.  Subsections (1) and (3) of section 626.561,
563	Florida Statutes, are amended to read:
564	626.561  Reporting and accounting for funds.--
565	(1)  All premiums, return premiums, or other funds
566	belonging to insurers or others received by an insurance agency,
567	agent, customer representative, or adjuster in transactions
568	under the his or her license are trust funds received by the
569	licensee in a fiduciary capacity. An agent or insurance agency
570	shall keep the funds belonging to each insurer for which an
571	agent he or she is not appointed, other than a surplus lines
572	insurer, in a separate account so as to allow the department or
573	office to properly audit such funds. The licensee in the
574	applicable regular course of business shall account for and pay
575	the same to the insurer, insured, or other person entitled
576	thereto.
577	(3)  Any insurance agency, agent, customer representative,
578	or adjuster who, not being lawfully entitled thereto, either
579	temporarily or permanently diverts or misappropriates such funds
580	or any portion thereof or deprives the other person of a benefit
581	therefrom commits the offense specified below:
582	(a)  If the funds diverted or misappropriated are $300 or
583	less, a misdemeanor of the first degree, punishable as provided
584	in s. 775.082 or s. 775.083.
585	(b)  If the funds diverted or misappropriated are more than
586	$300, but less than $20,000, a felony of the third degree,
587	punishable as provided in s. 775.082, s. 775.083, or s. 775.084.
588	(c)  If the funds diverted or misappropriated are $20,000
589	or more, but less than $100,000, a felony of the second degree,
590	punishable as provided in s. 775.082, s. 775.083, or s. 775.084.
591	(d)  If the funds diverted or misappropriated are $100,000
592	or more, a felony of the first degree, punishable as provided in
593	s. 775.082, s. 775.083, or s. 775.084.
594	Section 57.  Subsections (1) and (2) of section 626.572,
595	Florida Statutes, are amended to read:
596	626.572  Rebating; when allowed.--
597	(1)  No insurance agency or agent shall rebate any portion
598	of a his or her commission except as follows:
599	(a)  The rebate shall be available to all insureds in the
600	same actuarial class.
601	(b)  The rebate shall be in accordance with a rebating
602	schedule filed by the agent with the insurer issuing the policy
603	to which the rebate applies.
604	(c)  The rebating schedule shall be uniformly applied in
605	that all insureds who purchase the same policy through the agent
606	for the same amount of insurance receive the same percentage
607	rebate.
608	(d)  Rebates shall not be given to an insured with respect
609	to a policy purchased from an insurer that prohibits its agents
610	from rebating commissions.
611	(e)  The rebate schedule is prominently displayed in public
612	view in the agent's place of doing business and a copy is
613	available to insureds on request at no charge.
614	(f)  The age, sex, place of residence, race, nationality,
615	ethnic origin, marital status, or occupation of the insured or
616	location of the risk is not utilized in determining the
617	percentage of the rebate or whether a rebate is available.
618	(2)  The insurance agency or agent shall maintain a copy of
619	all rebate schedules for the most recent 5 years and their
620	effective dates.
621	Section 58.  Subsection (1) of section 626.601, Florida
622	Statutes, is amended to read:
623	626.601  Improper conduct; inquiry; fingerprinting.--
624	(1)  The department or office may, upon its own motion or
625	upon a written complaint signed by any interested person and
626	filed with the department or office, inquire into any alleged
627	improper conduct of any licensed insurance agency, agent,
628	adjuster, service representative, managing general agent,
629	customer representative, title insurance agent, title insurance
630	agency, continuing education course provider, instructor, school
631	official, or monitor group under this code. The department or
632	office may thereafter initiate an investigation of any such
633	licensee if it has reasonable cause to believe that the licensee
634	has violated any provision of the insurance code. During the
635	course of its investigation, the department or office shall
636	contact the licensee being investigated unless it determines
637	that contacting such person could jeopardize the successful
638	completion of the investigation or cause injury to the public.
639	Section 59.  Section 626.602, Florida Statutes, is created
640	to read:
641	626.602  Insurance agency names; disapproval.--The
642	department may disapprove the use of any true or fictitious
643	name, other than the bona fide natural name of an individual, by
644	any insurance agency on any of the following grounds:
645	(1)  The name is an interference with or is too similar to
646	a name already filed and in use by another agency or insurer;
647	(2)  The use of the name may mislead the public in any
648	respect;
649	(3)  The name states or implies that the agency is an
650	insurer, motor club, hospital service plan, state or federal
651	agency, charitable organization, or entity that primarily
652	provides advice and counsel rather than sells or solicits
653	insurance, or is entitled to engage in insurance activities not
654	permitted under licenses held or applied for; or
655	(4)  The name states or implies that the agency is an
656	underwriter. This subsection does not prevent a natural person
657	who is a life agent from describing himself or herself as an
658	underwriter or from using the designation "chartered life
659	underwriter" or who is a general lines agent from using the
660	designation "chartered property and casualty underwriter," if
661	the person is entitled to use such terms to describe himself or
662	herself.
663	Section 60.  Section 626.6115, Florida Statutes, is amended
664	to read:
665	626.6115  Grounds for compulsory refusal, suspension, or
666	revocation of insurance agency license.--The department shall
667	deny, suspend, revoke, or refuse to continue the license of any
668	insurance agency if it finds, as to any insurance agency or as
669	to any majority owner, partner, manager, director, officer, or
670	other person who manages or controls such agency, that any
671	either one or both of the following applicable grounds exist:
672	(1)  Lack by the agency of one or more of the
673	qualifications for the license as specified in this code;.
674	(2)  Material misstatement, misrepresentation, or fraud in
675	obtaining the license or in attempting to obtain the license; or
676	(3)  Denial, suspension, or revocation of a license to
677	practice or conduct any regulated profession, business, or
678	vocation relating to the business of insurance by this state,
679	any other state, any nation, any possession or district of the
680	United States, any court, or any lawful agency thereof. However,
681	grounds for administrative action against a licensed agency do
682	not in and of themselves constitute grounds for action against
683	any other licensed agency, including an agency that owns, is
684	under common ownership with, or is owned by, in whole or in
685	part, the agency for which grounds for administrative action
686	exist.
687	Section 61.  Subsection (6) is added to section 626.6215,
688	Florida Statutes, to read:
689	626.6215  Grounds for discretionary refusal, suspension, or
690	revocation of insurance agency license.--The department may, in
691	its discretion, deny, suspend, revoke, or refuse to continue the
692	license of any insurance agency if it finds, as to any insurance
693	agency or as to any majority owner, partner, manager, director,
694	officer, or other person who manages or controls such insurance
695	agency, that any one or more of the following applicable grounds
696	exist:
697	(6)  Failure to take corrective action or report a
698	violation to the department within 30 days after an individual
699	licensee's violation is known or should have been known by one
700	or more of the partners, officers, or managers acting on behalf
701	of the agency. However, grounds for administrative action
702	against a licensed agency do not in and of themselves constitute
703	grounds for action against any other licensed agency, including
704	an agency that owns, is under common ownership with, or is owned
705	by, in whole or in part, the agency for which grounds for
706	administrative action exist.
707	Section 62.  Subsections (1) and (2) of section 626.641,
708	Florida Statutes, are amended to read:
709	626.641  Duration of suspension or revocation.--
710	(1)  The department or office shall, in its order
711	suspending a license or appointment or in its order suspending
712	the eligibility of a person to hold or apply for such license or
713	appointment, specify the period during which the suspension is
714	to be in effect; but such period shall not exceed 2 years. The
715	license, appointment, or eligibility shall remain suspended
716	during the period so specified, subject, however, to any
717	rescission or modification of the order by the department or
718	office, or modification or reversal thereof by the court, prior
719	to expiration of the suspension period. A license, appointment,
720	or eligibility which has been suspended shall not be reinstated
721	except upon request for such reinstatement; but the department
722	or office shall not grant such reinstatement if it finds that
723	the circumstance or circumstances for which the license,
724	appointment, or eligibility was suspended still exist or are
725	likely to recur or if grounds exist to deny the license or
726	appointment pursuant to s. 626.611, s. 626.6115, s. 626.621, or
727	s. 626.6215.
728	(2)  No person or appointee under any license or
729	appointment revoked by the department or office, nor any person
730	whose eligibility to hold same has been revoked by the
731	department or office, shall have the right to apply for another
732	license or appointment under this code within 2 years from the
733	effective date of such revocation or, if judicial review of such
734	revocation is sought, within 2 years from the date of final
735	court order or decree affirming the revocation. An applicant for
736	another license or appointment pursuant to this subsection must
737	qualify for licensure in the same manner as a first-time
738	applicant and is subject to denial of the application pursuant
739	to s. 626.611, s. 626.6115, s. 626.621, or s. 626.6215. The
740	department or office shall not, however, grant a new license or
741	appointment or reinstate eligibility to hold such license or
742	appointment if it finds that the circumstance or circumstances
743	for which the eligibility was revoked or for which the previous
744	license or appointment was revoked still exist or are likely to
745	recur; if an individual's license as agent or customer
746	representative or eligibility to hold same has been revoked upon
747	the ground specified in s. 626.611(12), the department or office
748	shall refuse to grant or issue any new license or appointment so
749	applied for.
750	Section 63.  Section 626.7315, Florida Statutes, is amended
751	to read:
752	626.7315  Prohibition against the unlicensed transaction of
753	general lines insurance.--With respect to any line of authority
754	as defined in s. 626.015(5)(6), no individual shall, unless
755	licensed as a general lines agent:
756	(1)  Solicit insurance or procure applications therefor;
757	(2)  In this state, receive or issue a receipt for any
758	money on account of or for any insurer, or receive or issue a
759	receipt for money from other persons to be transmitted to any
760	insurer for a policy, contract, or certificate of insurance or
761	any renewal thereof, even though the policy, certificate, or
762	contract is not signed by him or her as agent or representative
763	of the insurer, except as provided in s. 626.0428(1);
764	(3)  Directly or indirectly represent himself or herself to
765	be an agent of any insurer or as an agent, to collect or forward
766	any insurance premium, or to solicit, negotiate, effect,
767	procure, receive, deliver, or forward, directly or indirectly,
768	any insurance contract or renewal thereof or any endorsement
769	relating to an insurance contract, or attempt to effect the
770	same, of property or insurable business activities or interests,
771	located in this state;
772	(4)  In this state, engage or hold himself or herself out
773	as engaging in the business of analyzing or abstracting
774	insurance policies or of counseling or advising or giving
775	opinions, other than as a licensed attorney at law, relative to
776	insurance or insurance contracts, for fee, commission, or other
777	compensation, other than as a salaried bona fide full-time
778	employee so counseling and advising his or her employer relative
779	to the insurance interests of the employer and of the
780	subsidiaries or business affiliates of the employer;
781	(5)  In any way, directly or indirectly, make or cause to
782	be made, or attempt to make or cause to be made, any contract of
783	insurance for or on account of any insurer;
784	(6)  Solicit, negotiate, or in any way, directly or
785	indirectly, effect insurance contracts, if a member of a
786	partnership or association, or a stockholder, officer, or agent
787	of a corporation which holds an agency appointment from any
788	insurer; or
789	(7)  Receive or transmit applications for suretyship, or
790	receive for delivery bonds founded on applications forwarded
791	from this state, or otherwise procure suretyship to be effected
792	by a surety insurer upon the bonds of persons in this state or
793	upon bonds given to persons in this state.
794	Section 64.  Subsection (1) of section 626.7351, Florida
795	Statutes, is amended to read:
796	626.7351  Qualifications for customer representative's
797	license.--The department shall not grant or issue a license as
798	customer representative to any individual found by it to be
799	untrustworthy or incompetent, or who does not meet each of the
800	following qualifications:
801	(1)  The applicant is a natural person 18 years of age or
802	older.
803	Section 65.  Paragraph (c) of subsection (2) of section
804	626.292, Florida Statutes, is amended to read:
805	626.292  Transfer of license from another state.--
806	(2)  To qualify for a license transfer, an individual
807	applicant must meet the following requirements:
808	(c)  The individual shall submit a completed application
809	for this state which is received by the department within 90
810	days after the date the individual became a resident of this
811	state, along with payment of the applicable fees set forth in s.
812	624.501 and submission of the following documents:
813	1.  A certification issued by the appropriate official of
814	the applicant's home state identifying the type of license and
815	lines of authority under the license and stating that, at the
816	time the license from the home state was canceled, the applicant
817	was in good standing in that state or that the state's Producer
818	Database records, maintained by the National Association of
819	Insurance Commissioners, its affiliates, or subsidiaries,
820	indicate that the agent is or was licensed in good standing for
821	the line of authority requested.
822	2.  A set of the individual applicant's fingerprints in
823	accordance with s. 626.171(4)(5).
824	Section 66.  Section 626.592, Florida Statutes, is
825	repealed.
826	Section 67.  Subsection (1) of section 626.747, Florida
827	Statutes, is amended to read:
828	626.747  Branch agencies.--
829	(1)  Each branch place of business established by an agent
830	or agency, firm, corporation, or association shall be in the
831	active full-time charge of a licensed general lines agent who is
832	appointed to represent one or more insurers.  Any agent or
833	agency, firm, corporation, or association which has established
834	one or more branch places of business shall be required to have
835	at least one licensed general lines agent or life or health
836	agent who is appointed to represent one or more insurers at each
837	location of the agency, including its headquarters location.
838
839	================ T I T L E  A M E N D M E N T =============
840	After line 791, insert:
841	amending s. 624.318, F.S.; authorizing the Department of
842	Financial Services and the Office of Insurance Regulation to
843	scan or photocopy records, accounts, documents, files, or other
844	materials under specified circumstances; amending s. 624.501,
845	F.S.; clarifying a license fee; amending s. 626.016, F.S.;
846	subjecting insurance agencies to regulation by the Chief
847	Financial Officer; amending s. 626.112, F.S.; delaying the
848	effective date by which agencies must obtain a license;
849	providing that an agency may file for registration in lieu of
850	licensure, under specified conditions; imposing a fine on any
851	agency that fails to timely apply for licensure or registration;
852	deleting provisions requiring certain licensed agencies to
853	remain licensed under certain circumstances, providing for
854	revocation or suspension of licenses, and exceptions from
855	certain license application requirements; amending s. 626.171,
856	F.S.; specifying licensure and registration application
857	requirements for insurance entities other than insurance
858	agencies; deleting a provision applying to insurance agencies;
859	amending s. 626.172, F.S.; revising insurance agency licensure
860	application requirements; amending s. 626.191, F.S.; clarifying
861	repeated application provisions; amending s. 626.201, F.S.;
862	clarifying a department-authorized interrogatories provision;
863	amending s. 626.221, F.S.; deleting provisions that permit
864	certain persons who previously qualified as managing general
865	agents, service or customer representatives, or all-lines
866	adjusters to be licensed as general lines agents without an
867	examination; providing for certain adjusters to be relicensed
868	without examination; amending s. 626.342, F.S.; including
869	insurance agencies under provisions prohibiting furnishing
870	supplies to certain unlicensed agents and imposing civil
871	liability under certain circumstances; amending s. 626.382,
872	F.S.; requiring licensure renewal application forms to be
873	adopted; amending s. 626.451, F.S.; clarifying the effect of
874	appointment; amending s. 626.536, F.S.; including insurance
875	agencies under an action-reporting requirement; amending s.
876	626.561, F.S.; including insurance agencies under provisions
877	providing funds reporting and accounting requirements and
878	imposing criminal penalties; amending s. 626.572, F.S.;
879	including insurance agencies under provisions prohibiting
880	rebating; amending s. 626.601, F.S.; including insurance
881	agencies under provisions authorizing the department to inquire
882	into improper conduct; creating s. 626.602, F.S.; authorizing
883	the Department of Financial Services to disapprove the use of
884	certain names under certain circumstances; amending s. 626.6115,
885	F.S.; providing an additional ground for the department to take
886	compulsory adverse insurance agency license actions; providing
887	that grounds for adverse action against a licensed agency do not
888	necessarily constitute grounds for adverse action against
889	another licensed agency, even if there is common ownership;
890	amending s. 626.6215, F.S.; providing an additional ground for
891	the department to take discretionary adverse insurance agency
892	license actions; providing that grounds for adverse action
893	against a licensed agency do not necessarily constitute grounds
894	for adverse action against another licensed agency, even if
895	there is common ownership; amending s. 626.641, F.S.; providing
896	additional criteria for duration of license suspensions or
897	revocations; amending s. 626.7315, F.S.; correcting a cross
898	reference; amending s. 626.7351, F.S.; providing an age
899	requirement for customer representatives; amending s. 626.292,
900	F.S.; correcting cross references; repealing s. 626.592, F.S.,
901	relating to primary agents; amending s. 626.747, F.S.; requiring
902	each branch agency to have a licensed general lines agent or
903	life or health agents;

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