Senate Bill sb1662
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Florida Senate - 2005 SB 1662
By Senator Fasano
11-825-05
1 A bill to be entitled
2 An act relating to insurance; amending s.
3 626.901, F.S.; revising an exception from the
4 prohibition against representing or aiding
5 unauthorized insurers; providing for immediate
6 cease-and-desist orders for violations of the
7 prohibition; providing legislative findings;
8 authorizing investigations of activities that
9 may constitute violations of the prohibition;
10 amending s. 626.902, F.S.; providing an
11 exception from penalty provisions for aiding an
12 unauthorized insurer; amending s. 626.908,
13 F.S.; providing conditions on defenses of
14 certain actions against unauthorized insurers
15 and persons representing or aiding them;
16 prescribing a time limit on motions to quash or
17 set aside service of process in actions against
18 such unauthorized insurers and other persons;
19 providing an effective date.
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21 Be It Enacted by the Legislature of the State of Florida:
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23 Section 1. Subsection (4) of section 626.901, Florida
24 Statutes, is amended, and subsections (5) and (6) are added to
25 that section, to read:
26 626.901 Representing or aiding unauthorized insurer
27 prohibited.--
28 (4) This section does not apply to:
29 (a) Matters authorized to be done by the office under
30 the Unauthorized Insurers Process Law, ss. 626.904-626.912.
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Florida Senate - 2005 SB 1662
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1 (b) Surplus lines insurance when written pursuant to
2 the Surplus Lines Law, ss. 626.913-626.937.
3 (c) Transactions as to which a certificate of
4 authority is not required of an insurer, as stated in s.
5 624.402.
6 (d) Independently procured coverage written pursuant
7 to s. 626.938 which is not solicited, marketed, negotiated, or
8 sold in this state.
9 (5) The office or department may, pursuant to s.
10 120.569 and in its discretion and without advance notice or
11 hearing, issue an immediate final order to cease and desist to
12 any person or entity that violates this section. The
13 Legislature finds that a violation of this section constitutes
14 an imminent and immediate threat to the health, safety, and
15 welfare of the residents of this state.
16 (6) The office may investigate the accounts, records,
17 documents, and transactions pertaining to the activities of
18 any unauthorized insurer or person, as defined in s. 624.04,
19 which is or may be aiding or representing an unauthorized
20 insurer.
21 Section 2. Subsection (3) is added to section 626.902,
22 Florida Statutes, to read:
23 626.902 Penalty for representing unauthorized
24 insurer.--
25 (3) This section does not apply to matters authorized
26 by the office under the Unauthorized Insurers Process Law, ss.
27 626.904-626.912.
28 Section 3. Subsections (1) and (3) of section 626.908,
29 Florida Statutes, are amended to read:
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Florida Senate - 2005 SB 1662
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1 626.908 Defense of action by unauthorized insurer or
2 person representing or aiding such insurer; damages and
3 attorney fee.--
4 (1) Before an unauthorized insurer or person
5 representing or aiding such insurer files or causes to be
6 filed any pleading in any action or proceeding instituted
7 against it under s. ss. 626.906, s. and 626.907, or s. 626.909
8 or a suit instituted by the office or the department enforcing
9 agency action against unauthorized insurers under s. 120.69,
10 an unauthorized insurer or person representing or aiding such
11 insurer shall:
12 (a) Procure a certificate of authority to transact
13 insurance in this state, or
14 (b) Deposit with the clerk of the court in which such
15 action or proceeding is pending cash or securities or file
16 with such clerk a bond with good and sufficient sureties, to
17 be approved by the court, in an amount to be fixed by the
18 court sufficient to secure the payment of any final judgment
19 which may be rendered in such action. The court may in its
20 discretion make an order dispensing with such deposit or bond
21 where the insurer makes a showing satisfactory to the court
22 that it maintains in a state of the United States funds or
23 securities, in trust or otherwise, sufficient and available to
24 satisfy any final judgment which may be entered in such action
25 or proceeding, and that the insurer or person representing or
26 aiding such insurer will pay any final judgment entered
27 therein without requiring suit to be brought on such judgment
28 in the state where such funds or securities are located, and
29 that if, nevertheless, such suit is brought on such final
30 judgment the insurer or person representing or aiding such
31 insurer shall waive all defenses thereto.
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Florida Senate - 2005 SB 1662
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1 (c) Any proof, evidence, or testimony in support of
2 such motion shall be taken in the jurisdiction of the court in
3 which the action or proceeding is pending.
4 (d) If the unauthorized insurer or person representing
5 or aiding such insurer seeks to take discovery or de bene esse
6 depositions of witnesses beyond the jurisdiction of the court
7 in which the action is pending, upon seasonable application by
8 the plaintiff, the court by appropriate order shall require
9 the unauthorized insurer or person representing or aiding such
10 insurer, before such depositions are taken, to make similar
11 deposit as described in paragraph (b), in sufficient amount to
12 pay the reasonable expenses of the plaintiff and his or her
13 attorney in attending the taking of such depositions,
14 including reasonable attorney's fees to be fixed by the court.
15 (3) Nothing in subsection (1) is to be construed to
16 prevent an unauthorized insurer or person representing or
17 aiding such insurer from filing, within 30 days after service,
18 a motion to quash or to set aside the service of any process
19 made in the manner provided in s. 626.907 hereof on the ground
20 either:
21 (a) That such unauthorized insurer or person
22 representing or aiding such insurer has not done any of the
23 acts enumerated in s. 626.906; or
24 (b) That the person on whom service was made pursuant
25 to s. 626.907(2) was not doing any of the acts therein
26 enumerated.
27 Section 4. This act shall take effect July 1, 2005.
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2 SENATE SUMMARY
3 Provides that the exemption, for independently procured
coverage, from the prohibition against representing or
4 aiding unauthorized insurers applies only when that
coverage is not solicited, marketed, negotiated, or sold
5 in the state. Authorizes immediate cease-and-desist
orders for violations of that prohibition and
6 investigations of unauthorized insurers and persons
aiding or representing them. Declares legislative
7 findings to the effect that unlawfully aiding or
representing such insurers is an imminent threat to the
8 public health, welfare, and safety. Provides that the
penalty for unlawfully aiding or representing
9 unauthorized insurers does not apply with respect to
actions that are permitted. Requires an unauthorized
10 insurer or person aiding or representing one to take
certain actions before filing any pleading in an action
11 against the unauthorized insurer.
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