Senate Bill sb1662e1

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    CS for SB 1662                           First Engrossed (ntc)



  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 a person

12         who cooperates with the office to administer

13         the Unauthorized Insurers Process Law; amending

14         s. 626.908, F.S.; providing conditions on

15         defenses of certain actions against

16         unauthorized insurers and persons representing

17         or aiding them; prescribing a time limit on

18         motions to quash or set aside service of

19         process in actions against such unauthorized

20         insurers and other persons; providing an

21         effective date.

22  

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

24  

25         Section 1.  Subsection (4) of section 626.901, Florida

26  Statutes, is amended, and subsections (5) and (6) are added to

27  that section, to read:

28         626.901  Representing or aiding unauthorized insurer

29  prohibited.--

30         (4)  This section does not apply to:

31  


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    CS for SB 1662                           First Engrossed (ntc)



 1         (a)  Matters authorized to be done by the office under

 2  the Unauthorized Insurers Process Law, ss. 626.904-626.912.

 3         (b)  Surplus lines insurance when written pursuant to

 4  the Surplus Lines Law, ss. 626.913-626.937.

 5         (c)  Transactions as to which a certificate of

 6  authority is not required of an insurer, as stated in s.

 7  624.402.

 8         (d)  Independently procured coverage written pursuant

 9  to s. 626.938 which is not solicited, marketed, negotiated, or

10  sold in this state.

11         (5)  The office or department may, pursuant to s.

12  120.569 and in its discretion, issue an immediate final order

13  to cease and desist to any person or entity that violates this

14  section. The Legislature finds that a violation of this

15  section constitutes an imminent and immediate threat to the

16  health, safety, and welfare of the residents of this state.

17         (6)  The office may investigate the accounts, records,

18  documents, and transactions pertaining to the activities of

19  any unauthorized insurer or person, as defined in s. 624.04,

20  which is or may be aiding or representing an unauthorized

21  insurer.

22         Section 2.  Subsection (3) is added to section 626.902,

23  Florida Statutes, to read:

24         626.902  Penalty for representing unauthorized

25  insurer.--

26         (3)  This section does not apply to actions of a person

27  who is assisting the office at its direction in the

28  administration of its responsibilities under ss.

29  626.904-626.912, the Unauthorized Insurers Process Law.

30         Section 3.  Subsections (1) and (3) of section 626.908,

31  Florida Statutes, are amended to read:


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    CS for SB 1662                           First Engrossed (ntc)



 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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    CS for SB 1662                           First Engrossed (ntc)



 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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