HB 105

1	A bill to be entitled
2	An act relating to life insurance and annuity contracts;
3	amending s. 624.402, F.S.; providing that a certificate of
4	authority is not required of insurers domiciled outside
5	the United States for certain life insurance policies or
6	annuity contracts covering only persons who are not
7	residents of the United States and are not nonresidents
8	illegally residing in the United States; providing
9	criteria, requirements, and limitations; requiring the
10	insurer to disclose certain information; providing for the
11	Office of Insurance Regulation to determine when the
12	insurer is no longer eligible for the exemption; providing
13	an exemption from certain taxes; requiring life insurance
14	applications and policies and annuity contracts to provide
15	certain disclosure statements; specifying application of
16	certain provisions to single-premium life insurance
17	policies and single-premium annuity contracts issued to
18	certain nonresidents; providing an effective date.
19
20	Be It Enacted by the Legislature of the State of Florida:
21
22	Section 1.  Subsection (8) is added to section 624.402,
23	Florida Statutes, to read:
24	624.402  Exceptions, certificate of authority required.--A
25	certificate of authority shall not be required of an insurer
26	with respect to:
27	(8)(a)  Life insurance policies or annuity contracts issued
28	by an insurer domiciled outside the United States covering only
29	persons who, at the time of issuance, are not residents of the
30	United States and are not nonresidents illegally residing in the
31	United States, provided:
32	1.  The insurer must currently be an authorized insurer in
33	its country of domicile as to the kind or kinds of insurance
34	proposed to be offered and must have been such an insurer for
35	not fewer than the immediately preceding 3 years, or must be the
36	wholly owned subsidiary of such authorized insurer or must be
37	the wholly owned subsidiary of an already eligible authorized
38	insurer as to the kind or kinds of insurance proposed for a
39	period of not fewer than the immediately preceding 3 years.
40	However, the office may waive the 3-year requirement if the
41	insurer has operated successfully for a period of at least the
42	immediately preceding year and has capital and surplus of not
43	less than $25 million.
44	2.  Before the office may grant eligibility, the requesting
45	insurer shall furnish the office with a duly authenticated copy
46	of its current annual financial statement, in English, and with
47	all monetary values therein expressed in United States dollars,
48	at an exchange rate then current and shown in the statement, in
49	the case of statements originally made in the currencies of
50	other countries, and with such additional information relative
51	to the insurer as the office may request.
52	3.  The insurer must have and maintain surplus as to
53	policyholders of not less than $15 million. Any such surplus as
54	to policyholders shall be represented by investments consisting
55	of eligible investments for like funds of like domestic insurers
56	under part II of chapter 625; however, any such surplus as to
57	policyholders may be represented by investments permitted by the
58	domestic regulator of such alien insurance company if such
59	investments are substantially similar in terms of quality,
60	liquidity, and security to eligible investments for like funds
61	of like domestic insurers under part II of chapter 625.
62	4.  The insurer must be of good reputation as to the
63	providing of service to its policyholders and the payment of
64	losses and claims.
65	5.  To maintain eligibility, the insurer shall furnish the
66	office within the time period specified in s. 624.424(1)(a) a
67	duly authenticated copy of its current annual and quarterly
68	financial statements, in English, and with all monetary values
69	therein expressed in United States dollars, at an exchange rate
70	then current and shown in the statement, in the case of
71	statements originally made in the currencies of other countries,
72	and with such additional information relative to the insurer as
73	the office may request.
74	6.  An insurer receiving eligibility under this subsection
75	shall agree to make its books and records pertaining to its
76	operations in this state available for inspection during normal
77	business hours upon request of the office.
78	7.  The insurer shall provide to the applicant for the
79	policy or contract a copy of the most recent quarterly financial
80	statements of the insurer providing, in clear and conspicuous
81	language:
82	a.  The date of organization of the insurer.
83	b.  The identity of and rating assigned by each recognized
84	insurance company rating organization that has rated the insurer
85	or, if applicable, that the insurer is unrated.
86	c.  That the insurer does not hold a certificate of
87	authority issued in this state and that the office does not
88	exercise regulatory oversight over the insurer.
89	d.  The identity and address of the regulatory authority
90	exercising oversight of the insurer.
91
92	This paragraph does not impose upon the office any duty or
93	responsibility to determine the actual financial condition or
94	claims practices of any unauthorized insurer, and the status of
95	eligibility, if granted by the office, indicates only that the
96	insurer appears to be financially sound and to have satisfactory
97	claims practices and that the office has no credible evidence to
98	the contrary.
99	(b)  If at any time the office has reason to believe that
100	an insurer issuing policies or contracts pursuant to this
101	subsection is insolvent or is in unsound financial condition,
102	does not make reasonable prompt payment of benefits, or is no
103	longer eligible under the conditions specified in this
104	subsection, the office may conduct an examination or
105	investigation in accordance with s. 624.316, s. 624.3161, or s.
106	624.320 and, if the findings of such examination or
107	investigation warrant, may withdraw the eligibility of the
108	insurer to issue policies or contracts pursuant to this
109	subsection without having a certificate of authority issued by
110	the office.
111	(c)  This subsection does not provide an exception to the
112	agent licensure requirements of chapter 626. Any insurer issuing
113	policies or contracts pursuant to this subsection shall appoint
114	the agents that the insurer uses to sell such policies or
115	contracts as provided in chapter 626.
116	(d)  An insurer issuing policies or contracts pursuant to
117	this subsection is subject to part IX of chapter 626, Unfair
118	Insurance Trade Practices, and the office may take such actions
119	against the insurer for a violation as are provided in that
120	part.
121	(e)  Policies and contracts issued pursuant to this
122	subsection are not subject to the premium tax specified in s.
123	624.509.
124	(f)  Applications for life insurance coverage offered under
125	this subsection must contain, in contrasting color and not less
126	than 12-point type, the following statement on the same page as
127	the applicant's signature:
128
129	This policy is primarily governed by the laws of a foreign
130	country. As a result, all of the rating and underwriting
131	laws applicable to policies filed in this state do not
132	apply to this coverage, which may result in your premiums
133	being higher than would be permissible under a Florida-
134	approved policy. Any purchase of individual life insurance
135	should be considered carefully, as future medical
136	conditions may make it impossible to qualify for another
137	individual life policy. If the insurer issuing your policy
138	becomes insolvent, this policy is not covered by the
139	Florida Life and Health Insurance Guaranty Association. For
140	information concerning individual life coverage under a
141	Florida-approved policy, consult your agent or the Florida
142	Department of Financial Services.
143
144	(g)  All life insurance policies and annuity contracts
145	issued pursuant to this subsection must contain on the first
146	page of the policy or contract, in contrasting color and not
147	less than 10-point type, the following statement:
148
149	The benefits of the policy providing your coverage are
150	governed primarily by the law of a country other than the
151	United States.
152
153	(h)  All single-premium life insurance policies and single-
154	premium annuity contracts issued to persons who are not
155	residents of the United States and are not nonresidents
156	illegally residing in the United States pursuant to this
157	subsection shall be subject to the provisions of chapter 896.
158	Section 2.  This act shall take effect July 1, 2005.

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