Senate Bill sb1912c2

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    Florida Senate - 2005                    CS for CS for SB 1912

    By the Committees on Judiciary; Banking and Insurance; and
    Senator Argenziano




    590-2046-05

  1                      A bill to be entitled

  2         An act relating to insurance agents and

  3         agencies; amending s. 624.317, F.S.; including

  4         insurance agencies among entities the

  5         Department of Financial Services is authorized

  6         to investigate; amending s. 624.318, F.S.;

  7         providing for electronic scanning in the course

  8         of investigations and examinations; amending s.

  9         624.501, F.S.; clarifying a license fee;

10         amending s. 626.015, F.S.; redefining the term

11         "home state"; defining the term "resident";

12         amending s. 626.016, F.S.; including insurance

13         agencies among entities subject to regulation

14         by the Chief Financial Officer; amending s.

15         626.025, F.S.; correcting cross-references;

16         amending s. 626.112, F.S.; delaying the

17         effective date by which agencies must obtain a

18         license; providing that an agency may file for

19         registration in lieu of licensure, under

20         specified conditions; imposing a fine on any

21         agency that fails to timely apply for licensure

22         or registration; deleting certain agency

23         licensure requirement provisions; amending s.

24         626.171, F.S.; specifying licensure and

25         registration application requirements for

26         insurance entities other than insurance

27         agencies; deleting a provision applying to

28         insurance agency license application

29         requirements; amending s. 626.172, F.S.;

30         revising insurance agency licensure application

31         requirements; providing procedures and

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 1         limitations; providing duties of the

 2         department; amending s. 626.221, F.S.; revising

 3         examination requirements; amending s. 626.2815,

 4         F.S.; revising continuing education

 5         requirements; amending ss. 626.292 and 626.321,

 6         F.S.; correcting cross-references, to conform;

 7         amending s. 626.342, F.S.; including insurance

 8         agencies under provisions prohibiting

 9         furnishing supplies to certain unlicensed

10         agents and imposing civil liability under

11         certain circumstances; amending s. 626.382,

12         F.S.; providing for renewal of licenses;

13         amending s. 626.451, F.S.; revising

14         requirements for appointment; amending s.

15         626.536, F.S.; including insurance agencies

16         under an action reporting requirement; amending

17         s. 626.561, F.S.; including insurance agencies

18         under provisions providing funds reporting and

19         accounting requirements and imposing criminal

20         penalties; amending s. 626.572, F.S.; including

21         insurance agencies under provision prohibiting

22         rebating under certain circumstances; amending

23         s. 626.601, F.S.; including insurance agencies

24         under provisions authorizing the department to

25         inquire into improper conduct; creating s.

26         626.602, F.S.; authorizing the department to

27         disapprove the use of certain names under

28         certain circumstances; amending s. 626.6115,

29         F.S.; providing an additional ground for the

30         department to take compulsory adverse insurance

31         agency license actions; providing that the

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 1         existence of grounds for adverse action against

 2         a licensed agency does not constitute grounds

 3         for adverse action against another licensed

 4         agency; amending s. 626.6215, F.S.; providing

 5         an additional ground for the department to take

 6         discretionary adverse insurance agency license

 7         actions; providing that the existence of

 8         grounds for adverse action against a licensed

 9         agency does not constitute grounds for adverse

10         action against another licensed agency;

11         amending s. 626.747, F.S.; revising agent

12         requirements for branch agencies to include

13         life or health agents; amending s. 626.621,

14         F.S.; revising criteria for the department's

15         refusal, suspension or revocation of a license

16         or appointment; amending s. 626.641, F.S.;

17         providing requirements for reinstatement of a

18         previously suspended license or appointment;

19         revising criteria for reapplication and

20         requalification for a previously revoked

21         license or appointment; amending s. 626.7351,

22         F.S.; revising the qualifications for a

23         customer representative's license; amending ss.

24         626.7355 and 626.8411, F.S.; deleting

25         cross-references, to conform; creating s.

26         626.84201, F.S.; providing for the issuance of

27         a nonresident title insurance agent license;

28         amending s. 648.50, F.S.; revising the persons

29         whose license or appointment may be revoked or

30         suspended when a bail bond's license or

31         appointment is revoked or suspended; repealing

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 1         s. 626.592, F.S., relating to primary agents;

 2         creating s. 624.1275, F.S.; providing a

 3         restriction for state agencies or political

 4         subdivisions from preventing a licensed agent

 5         from responding to a bid or negotiation for an

 6         insurance product; providing an effective date.

 7  

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

 9  

10         Section 1.  Subsection (1) of section 624.317, Florida

11  Statutes, is amended to read:

12         624.317  Investigation of agents, adjusters,

13  administrators, service companies, and others.--If it has

14  reason to believe that any person has violated or is violating

15  any provision of this code, or upon the written complaint

16  signed by any interested person indicating that any such

17  violation may exist:

18         (1)  The department shall conduct such investigation as

19  it deems necessary of the accounts, records, documents, and

20  transactions pertaining to or affecting the insurance affairs

21  of any general agent, surplus lines agent, adjuster, managing

22  general agent, insurance agent, insurance agency, customer

23  representative, service representative, or other person

24  subject to its jurisdiction, subject to the requirements of s.

25  626.601.

26         Section 2.  Subsection (7) is added to section 624.318,

27  Florida Statutes, to read:

28         624.318  Conduct of examination or investigation;

29  access to records; correction of accounts; appraisals.--

30         (7)(a)  The department or office or its examiners or

31  investigators may electronically scan accounts, records,

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 1  documents, files, and information, relating to the subject of

 2  the examination or investigation, in the possession or control

 3  of the person being examined or investigated.

 4         (b)  The provisions of this subsection are applicable

 5  to all investigations and examinations authorized by any

 6  provision of the Florida Insurance Code.

 7         Section 3.  Subsection (20) of section 624.501, Florida

 8  Statutes, is amended to read:

 9         624.501  Filing, license, appointment, and

10  miscellaneous fees.--The department, commission, or office, as

11  appropriate, shall collect in advance, and persons so served

12  shall pay to it in advance, fees, licenses, and miscellaneous

13  charges as follows:

14         (20)  Insurance agency or Adjusting firm, original or

15  renewal 3-year license..................................$60.00

16         Section 4.  Subsections (7) and (16) of section

17  626.015, Florida Statutes, are amended to read:

18         626.015  Definitions.--As used in this part:

19         (7)  "Home state" means the District of Columbia and

20  any state or territory of the United States in which an

21  insurance agent maintains his or her principal place of

22  residence or principal place of business and is licensed to

23  act as an insurance agent.

24         (16)  "Resident" means an individual whose home state

25  is the State of Florida domiciled and residing in this state.

26         Section 5.  Subsection (1) of section 626.016, Florida

27  Statutes, is amended to read:

28         626.016  Powers and duties of department, commission,

29  and office.--

30         (1)  The powers and duties of the Chief Financial

31  Officer and the department specified in this part apply only

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    Florida Senate - 2005                    CS for CS for SB 1912
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 1  with respect to insurance agents, insurance agencies, managing

 2  general agents, insurance adjusters, reinsurance

 3  intermediaries, viatical settlement brokers, customer

 4  representatives, service representatives, and agencies.

 5         Section 6.  Subsections (7) and (12) of section

 6  626.025, Florida Statutes, are amended to read:

 7         626.025  Consumer protections.--To transact insurance,

 8  agents shall comply with consumer protection laws, including

 9  the following, as applicable:

10         (7)  Required licensure or registration of certain

11  insurance agencies under s. 626.112 s. 626.172.

12         (12)  Designation of a primary agent by an insurance

13  agency under s. 626.592.

14         Section 7.  Subsection (7) of section 626.112, Florida

15  Statutes, is amended to read:

16         626.112  License and appointment required; agents,

17  customer representatives, adjusters, insurance agencies,

18  service representatives, managing general agents.--

19         (7)(a)  Effective October 1, 2006, no individual, firm,

20  partnership, corporation, association, or any other entity

21  shall act in its own name or under a trade name, directly or

22  indirectly, as an insurance agency, when required to be

23  licensed by this subsection, unless it complies with s.

24  626.172 with respect to possessing an insurance agency license

25  for each place of business at which it engages in any activity

26  which may be performed only by a licensed insurance agent.

27  Each agency engaged in business in this state before January

28  1, 2003, which is wholly owned by insurance agents currently

29  licensed and appointed under this chapter, each incorporated

30  agency whose voting shares are traded on a securities

31  exchange, and each agency whose primary function is offering

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 1  insurance as a service or member benefit to members of a

 2  nonprofit corporation may file an application for registration

 3  in lieu of licensure in accordance with s. 626.172(3). Each

 4  agency engaged in business before October 1, 2006, shall file

 5  an application for licensure or registration on or before

 6  October 1, 2006.

 7         1.  If an agency is required to be licensed but fails

 8  to file an application for licensure in accordance with this

 9  section, the department shall impose on the agency an

10  administrative penalty in an amount of up to $10,000.

11         2.  If an agency is eligible for registration but fails

12  to file an application for registration or an application for

13  licensure in accordance with this section, the department

14  shall impose on the agency an administrative penalty in an

15  amount of up to $5,000.

16         (b)  A registered An insurance agency shall, as a

17  condition precedent to continuing business, obtain an

18  insurance agency license if the department finds that, with

19  respect to any majority owner, partner, manager, director,

20  officer, or other person who manages or controls the agency,

21  any person has, subsequent to the effective date of this act:

22         1.  Been found guilty of, or has pleaded guilty or nolo

23  contendere to, a felony in this state or any other state

24  relating to the business of insurance or to an insurance

25  agency, without regard to whether a judgment of conviction has

26  been entered by the court having jurisdiction of the cases.

27         2.  Employed any individual in a managerial capacity or

28  in a capacity dealing with the public who is under an order of

29  revocation or suspension issued by the department.  An

30  insurance agency may request, on forms prescribed by the

31  department, verification of any person's license status. If a

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 1  request is mailed within 5 working days after an employee is

 2  hired, and the employee's license is currently suspended or

 3  revoked, the agency shall not be required to obtain a license,

 4  if the unlicensed person's employment is immediately

 5  terminated.

 6         3.  Operated the agency or permitted the agency to be

 7  operated in violation of s. 626.747.

 8         4.  With such frequency as to have made the operation

 9  of the agency hazardous to the insurance-buying public or

10  other persons:

11         a.  Solicited or handled controlled business.  This

12  subparagraph shall not prohibit the licensing of any lending

13  or financing institution or creditor, with respect to

14  insurance only, under credit life or disability insurance

15  policies of borrowers from the institutions, which policies

16  are subject to part IX of chapter 627.

17         b.  Misappropriated, converted, or unlawfully withheld

18  moneys belonging to insurers, insureds, beneficiaries, or

19  others and received in the conduct of business under the

20  license.

21         c.  Unlawfully rebated, attempted to unlawfully rebate,

22  or unlawfully divided or offered to divide commissions with

23  another.

24         d.  Misrepresented any insurance policy or annuity

25  contract, or used deception with regard to any policy or

26  contract, done either in person or by any form of

27  dissemination of information or advertising.

28         e.  Violated any provision of this code or any other

29  law applicable to the business of insurance in the course of

30  dealing under the license.

31  

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 1         f.  Violated any lawful order or rule of the

 2  department.

 3         g.  Failed or refused, upon demand, to pay over to any

 4  insurer he or she represents or has represented any money

 5  coming into his or her hands belonging to the insurer.

 6         h.  Violated the provision against twisting as defined

 7  in s. 626.9541(1)(l).

 8         i.  In the conduct of business, engaged in unfair

 9  methods of competition or in unfair or deceptive acts or

10  practices, as prohibited under part IX of this chapter.

11         j.  Willfully overinsured any property insurance risk.

12         k.  Engaged in fraudulent or dishonest practices in the

13  conduct of business arising out of activities related to

14  insurance or the insurance agency.

15         l.  Demonstrated lack of fitness or trustworthiness to

16  engage in the business of insurance arising out of activities

17  related to insurance or the insurance agency.

18         m.  Authorized or knowingly allowed individuals to

19  transact insurance who were not then licensed as required by

20  this code.

21         5.  Knowingly employed any person who within the

22  preceding 3 years has had his or her relationship with an

23  agency terminated in accordance with paragraph (d).

24         6.  Willfully circumvented the requirements or

25  prohibitions of this code.

26         (c)  An agency required to be licensed in accordance

27  with paragraph (b) shall remain so licensed for a period of 3

28  years from the date of licensure unless the license is

29  suspended or revoked in accordance with law. The department

30  may revoke or suspend the agency authority to do business for

31  

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 1  activities occurring during the time the agency is licensed,

 2  regardless of whether the licensing period has terminated.

 3         (d)  Notwithstanding the provisions of this subsection,

 4  no insurance agency shall be required to apply for an agency

 5  license if such agency can prove to the department that:

 6         1.  The agency is severing its relationship with each

 7  majority owner, partner, manager, director, officer, or other

 8  person who managed or controlled such agency and who violated

 9  any of the provisions of paragraph (b).

10         2.  No such majority owner, partner, manager, director,

11  officer, or other person who managed such agency is to be

12  affiliated with such agency in any capacity for a period of 3

13  years from the date of such severance.

14         Section 8.  Section 626.171, Florida Statutes, is

15  amended to read:

16         626.171  Application for license as an agent, customer

17  representative, adjuster, service representative, managing

18  general agent, or reinsurance intermediary.--

19         (1)  The department shall not issue a license as agent,

20  customer representative, adjuster, insurance agency, service

21  representative, managing general agent, or reinsurance

22  intermediary to any person except upon written application

23  therefor filed with it, qualification therefor, and payment in

24  advance of all applicable fees. Any such application shall be

25  made under the oath of the applicant and be signed by the

26  applicant. Beginning November 1, 2002, The department shall

27  accept the uniform application for nonresident agent

28  licensing. The department may adopt revised versions of the

29  uniform application by rule.

30         (2)  In the application, the applicant shall set forth:

31  

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 1         (a)  His or her full name, age, social security number,

 2  residence address, business address, and mailing address.

 3         (b)  Proof that he or she has completed or is in the

 4  process of completing any required prelicensing course.

 5         (c)  Whether he or she has been refused or has

 6  voluntarily surrendered or has had suspended or revoked a

 7  license to solicit insurance by the department or by the

 8  supervising officials of any state.

 9         (d)  Whether any insurer or any managing general agent

10  claims the applicant is indebted under any agency contract or

11  otherwise and, if so, the name of the claimant, the nature of

12  the claim, and the applicant's defense thereto, if any.

13         (e)  Proof that the applicant meets the requirements

14  for the type of license for which he or she is applying.

15         (f)  Such other or additional information as the

16  department may deem proper to enable it to determine the

17  character, experience, ability, and other qualifications of

18  the applicant to hold himself or herself out to the public as

19  an insurance representative.

20         (3)  An application for an insurance agency license

21  shall be signed by the owner or owners of the agency.  If the

22  agency is incorporated, the application shall be signed by the

23  president and secretary of the corporation.

24         (3)(4)  Each application shall be accompanied by

25  payment of any applicable fee.

26         (4)(5)  An application for a license as an agent,

27  customer representative, adjuster, insurance agency, service

28  representative, managing general agent, or reinsurance

29  intermediary must be accompanied by a set of the individual

30  applicant's fingerprints, or, if the applicant is not an

31  individual, by a set of the fingerprints of the sole

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 1  proprietor, majority owner, partners, officers, and directors,

 2  on a form adopted by rule of the department and accompanied by

 3  the fingerprint processing fee set forth in s. 624.501.

 4  Fingerprints shall be used to investigate the applicant's

 5  qualifications pursuant to s. 626.201. The fingerprints shall

 6  be taken by a law enforcement agency or other

 7  department-approved entity.

 8         (5)(6)  The application for license filing fee

 9  prescribed in s. 624.501 is not subject to refund.

10         (6)(7)  Pursuant to the federal Personal Responsibility

11  and Work Opportunity Reconciliation Act of 1996, each party is

12  required to provide his or her social security number in

13  accordance with this section.  Disclosure of social security

14  numbers obtained through this requirement shall be limited to

15  the purpose of administration of the Title IV-D program for

16  child support enforcement.

17         Section 9.  Section 626.172, Florida Statutes, is

18  amended to read:

19         626.172  Application for insurance agency license.--

20         (1)  The department may issue a license as an insurance

21  agency to any person only after such person files a written

22  application with the department and qualifies for such

23  license. If any majority owner, partner, officer, or director

24  of an insurance agency:

25         (a)  Has been found guilty of, or has pleaded guilty or

26  nolo contendere to, a felony relating to the business of

27  insurance in this state or any other state or federal court,

28  regardless of whether a judgment of conviction has been

29  entered by the court having jurisdiction of such cases; or

30         (b)  Has been denied a license relating to the business

31  of insurance, or has had his or her license to practice or

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 1  conduct any regulated profession, business, or vocation

 2  relating to the business of insurance revoked or suspended, by

 3  this or any other state, any nation, any possession or

 4  district of the United States, or any court, or any lawful

 5  agency thereof;

 6  

 7  the insurance agency and any subsidiary or branch thereof

 8  shall obtain a license from the department pursuant to this

 9  section.

10         (2)  An application for an insurance agency license

11  shall be signed by the owner or owners of the agency. If the

12  agency is incorporated, the application shall be signed by the

13  president and secretary of the corporation. The application

14  for an insurance agency license shall include:

15         (a)  The name of each majority owner, partner, officer,

16  and director of the insurance agency.

17         (b)  The residence address of each person required to

18  be listed in the application under paragraph (a).

19         (c)  The name of the insurance agency and its principal

20  business address.

21         (d)  The location of each agency office and the name

22  under which each agency office conducts or will conduct

23  business.

24         (e)  The name of each agent to be in full-time charge

25  of an agency office and specification of which office.

26         (f)  The fingerprints of each of the following:

27         1.  A sole proprietor;

28         2.  Each partner;

29         3.  Each owner of an unincorporated agency;

30  

31  

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 1         4.  Each owner who directs or participates in the

 2  management or control of an incorporated agency whose shares

 3  are not traded on a securities exchange;

 4         5.  The president, senior vice presidents, treasurer,

 5  secretary, and directors of the agency; and

 6         6.  Any other person who directs or participates in the

 7  management or control of the agency, whether through the

 8  ownership of voting securities, by contract, or otherwise.

 9  

10  Fingerprints must be taken by a law enforcement agency or

11  other entity approved by the department and must be

12  accompanied by the fingerprint processing fee specified in s.

13  624.501. However, fingerprints need not be filed for any

14  individual who is currently licensed and appointed under this

15  chapter. This paragraph does not apply to corporations whose

16  voting shares are traded on a securities exchange. The name of

17  any person to whom subsection (1) applies.

18         (g)  Such additional information as the department

19  requires by promulgated rule to ascertain the trustworthiness

20  and competence of persons required to be listed on the

21  application and to ascertain that such persons meet the

22  requirements of this code. However, the department may not

23  require that credit or character reports be submitted for

24  persons required to be listed on the application.

25         (h)  Beginning October 1, 2005, the department shall

26  accept the uniform application for nonresident agency

27  licensure. The department may adopt by rule revised versions

28  of the uniform application.

29         (3) The department shall issue a registration as an

30  insurance agency to any agency that files a written

31  application with the department and qualifies for

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 1  registration. The application for registration shall require

 2  the agency to provide the same information required for an

 3  agency licensed under subsection (2), the agent identification

 4  number for each owner who is a licensed agent, proof that the

 5  agency qualifies for registration as provided in s.

 6  626.112(7), and any other additional information that the

 7  department determines is necessary in order to demonstrate

 8  that the agency qualifies for registration. The application

 9  must be signed by the owner or owners of the agency. If the

10  agency is incorporated, the application must be signed by the

11  president and the secretary of the corporation. An agent who

12  owns the agency need not file fingerprints with the department

13  if the agent obtained a license under this chapter, and the

14  license is currently valid.

15         (a)  If an application for registration is denied, the

16  agency must file an application for licensure no later than 30

17  days after the date of the denial of registration.

18         (b)  A registered insurance agency must file an

19  application for licensure no later than 30 days after the date

20  that any person who is not a licensed and appointed agent in

21  this state acquires any ownership interest in the agency. If

22  an agency fails to file an application for licensure in

23  compliance with this paragraph, the department shall impose an

24  administrative penalty in an amount of up to $5,000 on the

25  agency.

26         (c)  Sections 626.6115 and 626.6215 do not apply to

27  agencies registered under this subsection.

28         (4)  The department shall issue a license or

29  registration to each agency upon approval of the application

30  and each agency shall display the license or registration

31  

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 1  prominently in a manner that makes it clearly visible to any

 2  customer or potential customer who enters the agency.

 3         Section 10.  Subsection (2) of section 626.221, Florida

 4  Statutes, is amended to read:

 5         626.221  Examination requirement; exemptions.--

 6         (2)  However, no such examination shall be necessary in

 7  any of the following cases:

 8         (a)  An applicant for renewal of appointment as an

 9  agent, customer representative, or adjuster, unless the

10  department determines that an examination is necessary to

11  establish the competence or trustworthiness of such applicant.

12         (b)  An applicant for limited license as agent for

13  personal accident insurance, baggage and motor vehicle excess

14  liability insurance, credit life or disability insurance,

15  credit insurance, credit property insurance, in-transit and

16  storage personal property insurance, or communications

17  equipment property insurance or communication equipment inland

18  marine insurance.

19         (c)  In the discretion of the department, an applicant

20  for reinstatement of license or appointment as an agent,

21  customer representative, or adjuster whose license has been

22  suspended within 4 2 years prior to the date of application or

23  written request for reinstatement.

24         (d)  An applicant who, within 4 2 years prior to

25  application for license and appointment as an agent, customer

26  representative, or adjuster, was a full-time salaried employee

27  of the department and had continuously been such an employee

28  with responsible insurance duties for not less than 2 years

29  and who had been a licensee within 4 2 years prior to

30  employment by the department with the same class of license as

31  that being applied for.

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 1         (e)  An individual who qualified as a managing general

 2  agent, service representative, customer representative, or

 3  all-lines adjuster by passing a general lines agent's

 4  examination and subsequently was licensed and appointed and

 5  has been actively engaged in all lines of property and

 6  casualty insurance may, upon filing an application for

 7  appointment, be licensed and appointed as a general lines

 8  agent for the same kinds of business without taking another

 9  examination if he or she holds any such currently effective

10  license referred to in this paragraph or held the license

11  within 48 months prior to the date of filing the application

12  with the department.

13         (e)(f)  A person who has been licensed and appointed as

14  a public adjuster, or independent adjuster, or licensed and

15  appointed either as an agent or company adjuster as to all

16  property, casualty, and surety insurances, may be licensed and

17  appointed as a company, adjuster as to any of such insurances,

18  or as an independent, adjuster or public adjuster, as to these

19  kinds of insurance, without additional written examination if

20  an application for licensure appointment is filed with the

21  department within 48 months following the date of cancellation

22  or expiration of the prior appointment.

23         (f)(g)  A person who has been licensed as an adjuster

24  for motor vehicle, property and casualty, workers'

25  compensation, and health insurance may be licensed as such an

26  adjuster without additional written examination if his or her

27  application for licensure appointment is filed with the

28  department within 48 months after cancellation or expiration

29  of the prior license.

30         (g)(h)  An applicant for temporary license, except as

31  provided in this code.

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 1         (h)(i)  An applicant for a life or health license who

 2  has received the designation of chartered life underwriter

 3  (CLU) from the American College of Life Underwriters and who

 4  has been engaged in the insurance business within the past 4

 5  years, except that such an individual may be examined on

 6  pertinent provisions of this code.

 7         (i)(j)  An applicant for license as a general lines

 8  agent, customer representative, or adjuster who has received

 9  the designation of chartered property and casualty underwriter

10  (CPCU) from the American Institute for Property and Liability

11  Underwriters and who has been engaged in the insurance

12  business within the past 4 years, except that such an

13  individual may be examined on pertinent provisions of this

14  code.

15         (j)(k)  An applicant for license as a customer

16  representative who has the designation of Accredited Advisor

17  in Insurance (AAI) from the Insurance Institute of America,

18  the designation of Certified Insurance Counselor (CIC) from

19  the Society of Certified Insurance Service Counselors, the

20  designation of Accredited Customer Service Representative

21  (ACSR) from the Independent Insurance Agents of America, the

22  designation of Certified Professional Service Representative

23  (CPSR) from the National Foundation for Certified Professional

24  Service Representatives, the designation of Certified

25  Insurance Service Representative (CISR) from the Society of

26  Certified Insurance Service Representatives. Also, an

27  applicant for license as a customer representative who has the

28  designation of Certified Customer Service Representative

29  (CCSR) from the Florida Association of Insurance Agents, or

30  the designation of Registered Customer Service Representative

31  (RCSR) from a regionally accredited postsecondary institution

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 1  in this state, or the designation of Professional Customer

 2  Service Representative (PCSR) from the Professional Career

 3  Institute, whose curriculum has been approved by the

 4  department and whose curriculum includes comprehensive

 5  analysis of basic property and casualty lines of insurance and

 6  testing at least equal to that of standard department testing

 7  for the customer representative license. The department shall

 8  adopt rules establishing standards for the approval of

 9  curriculum.

10         (k)(l)  An applicant for license as an adjuster who has

11  the designation of Accredited Claims Adjuster (ACA) from a

12  regionally accredited postsecondary institution in this state,

13  or the designation of Professional Claims Adjuster (PCA) from

14  the Professional Career Institute, whose curriculum has been

15  approved by the department and whose curriculum includes

16  comprehensive analysis of basic property and casualty lines of

17  insurance and testing at least equal to that of standard

18  department testing for the all-lines adjuster license. The

19  department shall adopt rules establishing standards for the

20  approval of curriculum.

21         (l)(m)  An applicant qualifying for a license transfer

22  under s. 626.292, if the applicant:

23         1.  Has successfully completed the prelicensing

24  examination requirements in the applicant's previous state

25  which are substantially equivalent to the examination

26  requirements in this state, as determined by the department;

27         2.  Has received the designation of chartered property

28  and casualty underwriter (CPCU) from the American Institute

29  for Property and Liability Underwriters and has been engaged

30  in the insurance business within the past 4 years if applying

31  to transfer a general lines agent license; or

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 1         3.  Has received the designation of chartered life

 2  underwriter (CLU) from the American College of Life

 3  Underwriters and has been engaged in the insurance business

 4  within the past 4 years, if applying to transfer a life or

 5  health agent license.

 6         (m)(n)  An applicant for a nonresident agent license,

 7  if the applicant:

 8         1.  Has successfully completed prelicensing examination

 9  requirements in the applicant's home state which are

10  substantially equivalent to the examination requirements in

11  this state, as determined by the department, as a requirement

12  for obtaining a resident license in his or her home state;

13         2.  Held a general lines agent license, life agent

14  license, or health agent license prior to the time a written

15  examination was required;

16         3.  Has received the designation of chartered property

17  and casualty underwriter (CPCU) from the American Institute

18  for Property and Liability Underwriters and has been engaged

19  in the insurance business within the past 4 years, if an

20  applicant for a nonresident license as a general lines agent;

21  or

22         4.  Has received the designation of chartered life

23  underwriter (CLU) from the American College of Life

24  Underwriters and has been in the insurance business within the

25  past 4 years, if an applicant for a nonresident license as a

26  life agent or health agent.

27         Section 11.  Subsection (3) of section 626.2815,

28  Florida Statutes, is amended to read:

29         626.2815  Continuing education required; application;

30  exceptions; requirements; penalties.--

31  

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 1         (3)(a)  Each person subject to the provisions of this

 2  section must, except as set forth in paragraphs (b), and (c),

 3  and (d), complete a minimum of 24 hours of continuing

 4  education courses every 2 years in basic or higher-level

 5  courses prescribed by this section or in other courses

 6  approved by the department. Each person subject to the

 7  provisions of this section must complete, as part of his or

 8  her required number of continuing education hours, 3 hours of

 9  continuing education, approved by the department, every 2

10  years on the subject matter of ethics.

11         (b)  For compliance periods beginning on January 1,

12  1998, A person who has been licensed for a period of 6 or more

13  years must complete 20 hours every 2 years in intermediate or

14  advanced-level courses prescribed by this section or in other

15  courses approved by the department.

16         (c)  A licensee who has been licensed for 25 years or

17  more and is a CLU or a CPCU or has a Bachelor of Science

18  degree in risk management or insurance with evidence of 18 or

19  more semester hours in upper-level insurance-related courses

20  must complete 10 12 hours of continuing education courses

21  every 2 years in courses prescribed by this section or in

22  other courses approved by the department, except, for

23  compliance periods beginning January 1, 1998, the licensees

24  described in this paragraph shall be required to complete 10

25  hours of continuing education courses every 2 years.

26         (d)  Any person who holds a license as a customer

27  representative, limited customer representative, title agent,

28  motor vehicle physical damage and mechanical breakdown

29  insurance agent, crop or hail and multiple-peril crop

30  insurance agent, or as an industrial fire insurance or

31  burglary insurance agent and who is not a licensed life or

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 1  health insurance agent, shall be required to complete 10 12

 2  hours of continuing education courses every 2 years, except,

 3  for compliance periods beginning on January 1, 1998, each

 4  licensee subject to this paragraph shall be required to

 5  complete 10 hours of continuing education courses every 2

 6  years.

 7         (e)  Any person who holds a license to solicit or sell

 8  life or health insurance and a license to solicit or sell

 9  property, casualty, surety, or surplus lines insurance must

10  complete the continuing education requirements by completing

11  courses in life or health insurance for one-half of the total

12  hours required and courses in property, casualty, surety, or

13  surplus lines insurance for one-half of the total hours

14  required. However, a licensee who holds an industrial fire or

15  burglary insurance license and who is a licensed life or

16  health agent shall be required to complete 4 hours of

17  continuing education courses every 2 years related to

18  industrial fire or burglary insurance and the remaining number

19  of hours of continuing education courses required related to

20  life or health insurance.

21         (f)  Compliance with continuing education requirements

22  is a condition precedent to the issuance, continuation,

23  reinstatement, or renewal of any appointment subject to this

24  section.

25         (g)  A person teaching any approved course of

26  instruction or lecturing at any approved seminar and attending

27  the entire course or seminar shall qualify for the same number

28  of classroom hours as would be granted to a person taking and

29  successfully completing such course, seminar, or program.

30  Credit shall be limited to the number of hours actually taught

31  unless a person attends the entire course or seminar.  Any

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 1  person who is an official of or employed by any governmental

 2  entity in this state and serves as a professor, instructor, or

 3  in any other position or office the duties and

 4  responsibilities of which are determined by the department to

 5  require monitoring and review of insurance laws or insurance

 6  regulations and practices shall be exempt from this section.

 7         (h)  Excess classroom hours accumulated during any

 8  compliance period may be carried forward to the next

 9  compliance period.

10         (i)  For good cause shown, the department may grant an

11  extension of time during which the requirements imposed by

12  this section may be completed, but such extension of time may

13  not exceed 1 year.

14         (j)  A nonresident who must complete continuing

15  education requirements in his or her home state may use the

16  home state requirements to meet this state's continuing

17  education requirements as well, if the resident's state

18  recognizes reciprocity with this state's continuing education

19  requirements. A nonresident whose home state does not have a

20  continuing education requirement but is licensed for the same

21  class of business in another state which does have a

22  continuing education requirement may comply with this section

23  by furnishing proof of compliance with the other state's

24  requirement if that state has a reciprocal agreement with this

25  state relative to continuing education. A nonresident whose

26  home state does not have such continuing education

27  requirements, and who is not licensed as a nonresident agent

28  in a state that has continuing education requirements and

29  reciprocates with this state, must meet the continuing

30  education requirements of this state.

31  

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 1         Section 12.  Paragraph (c) of subsection (2) of section

 2  626.292, Florida Statutes, is amended to read:

 3         626.292  Transfer of license from another state.--

 4         (2)  To qualify for a license transfer, an individual

 5  applicant must meet the following requirements:

 6         (c)  The individual shall submit a completed

 7  application for this state which is received by the department

 8  within 90 days after the date the individual became a resident

 9  of this state, along with payment of the applicable fees set

10  forth in s. 624.501 and submission of the following documents:

11         1.  A certification issued by the appropriate official

12  of the applicant's home state identifying the type of license

13  and lines of authority under the license and stating that, at

14  the time the license from the home state was canceled, the

15  applicant was in good standing in that state or that the

16  state's Producer Database records, maintained by the National

17  Association of Insurance Commissioners, its affiliates, or

18  subsidiaries, indicate that the agent is or was licensed in

19  good standing for the line of authority requested.

20         2.  A set of the individual applicant's fingerprints in

21  accordance with s. 626.171(4) s. 626.171(5).

22         Section 13.  Paragraph (d) of subsection (1) and

23  paragraph (a) of subsection (2) of section 626.321, Florida

24  Statutes, are amended to read:

25         626.321  Limited licenses.--

26         (1)  The department shall issue to a qualified

27  individual, or a qualified individual or entity under

28  paragraphs (c), (d), (e), and (i), a license as agent

29  authorized to transact a limited class of business in any of

30  the following categories:

31  

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 1         (d)  Baggage and motor vehicle excess liability

 2  insurance.--

 3         1.  License covering only insurance of personal effects

 4  except as provided in subparagraph 2.  The license may be

 5  issued only:

 6         a.  To a full-time salaried employee of a common

 7  carrier or a full-time salaried employee or owner of a

 8  transportation ticket agency, which person is engaged in the

 9  sale or handling of transportation of baggage and personal

10  effects of travelers, and may authorize the sale of such

11  insurance only in connection with such transportation; or

12         b.  To the full-time salaried employee of a licensed

13  general lines agent or to a business entity that offers motor

14  vehicles for rent or lease if insurance sales activities

15  authorized by the license are in connection with and

16  incidental to the rental of a motor vehicle. An entity

17  applying for a license under this sub-subparagraph:

18         (I)  Is required to submit only one application for a

19  license under s. 626.171. The requirements of s. 626.171(4) s.

20  626.171(5) shall apply only to the officers and directors of

21  the entity submitting the application.

22         (II)  Is required to obtain a license for each office,

23  branch office, or place of business making use of the entity's

24  business name by applying to the department for the license on

25  a simplified application form developed by rule of the

26  department for this purpose.

27         (III)  Is required to pay the applicable fees for a

28  license as prescribed in s. 624.501, be appointed under s.

29  626.112, and pay the prescribed appointment fee under s.

30  624.501. A licensed and appointed entity shall be directly

31  

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 1  responsible and accountable for all acts of the licensee's

 2  employees.

 3  

 4  The purchaser of baggage insurance shall be provided written

 5  information disclosing that the insured's homeowner's policy

 6  may provide coverage for loss of personal effects and that the

 7  purchase of such insurance is not required in connection with

 8  the purchase of tickets or in connection with the lease or

 9  rental of a motor vehicle.

10         2.  A business entity that offers motor vehicles for

11  rent or lease, may include lessees under a master contract

12  providing coverage to the lessor or may transact excess motor

13  vehicle liability insurance providing coverage in excess of

14  the standard liability limits provided by the lessor in its

15  lease to a person renting or leasing a motor vehicle from the

16  licensee's employer for liability arising in connection with

17  the negligent operation of the leased or rented motor vehicle,

18  provided that the lease or rental agreement is for not more

19  than 30 days; that the lessee is not provided coverage for

20  more than 30 consecutive days per lease period, and, if the

21  lease is extended beyond 30 days, the coverage may be extended

22  one time only for a period not to exceed an additional 30

23  days; that the lessee is given written notice that his or her

24  personal insurance policy providing coverage on an owned motor

25  vehicle may provide additional excess coverage; and that the

26  purchase of the insurance is not required in connection with

27  the lease or rental of a motor vehicle.  The excess liability

28  insurance may be provided to the lessee as an additional

29  insured on a policy issued to the licensee's employer.

30         3.  A business entity that offers motor vehicles for

31  rent or lease, may, as an agent of an insurer, transact

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 1  insurance that provides coverage for the liability of the

 2  lessee to the lessor for damage to the leased or rented motor

 3  vehicle if:

 4         a.  The lease or rental agreement is for not more than

 5  30 days; or the lessee is not provided coverage for more than

 6  30 consecutive days per lease period, but, if the lease is

 7  extended beyond 30 days, the coverage may be extended one time

 8  only for a period not to exceed an additional 30 days;

 9         b.  The lessee is given written notice that his or her

10  personal insurance policy that provides coverage on an owned

11  motor vehicle may provide such coverage with or without a

12  deductible; and

13         c.  The purchase of the insurance is not required in

14  connection with the lease or rental of a motor vehicle.

15         (2)  An entity applying for a license under this

16  section is required to:

17         (a)  Submit only one application for a license under s.

18  626.171. The requirements of s. 626.171(4) s. 626.171(5) shall

19  only apply to the officers and directors of the entity

20  submitting the application.

21         Section 14.  Subsections (1) and (2) of section

22  626.342, Florida Statutes, are amended to read:

23         626.342  Furnishing supplies to unlicensed life,

24  health, or general lines agent prohibited; civil liability.--

25         (1)  An insurer, a managing general agent, an insurance

26  agency, or an agent, directly or through any representative,

27  may not furnish to any agent any blank forms, applications,

28  stationery, or other supplies to be used in soliciting,

29  negotiating, or effecting contracts of insurance on its behalf

30  unless such blank forms, applications, stationery, or other

31  supplies relate to a class of business with respect to which

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 1  the agent is licensed and appointed, whether for that insurer

 2  or another insurer.

 3         (2)  Any insurer, general agent, insurance agency, or

 4  agent who furnishes any of the supplies specified in

 5  subsection (1) to any agent or prospective agent not appointed

 6  to represent the insurer and who accepts from or writes any

 7  insurance business for such agent or agency is subject to

 8  civil liability to any insured of such insurer to the same

 9  extent and in the same manner as if such agent or prospective

10  agent had been appointed or authorized by the insurer or such

11  agent to act in its or his or her behalf.  The provisions of

12  this subsection do not apply to insurance risk apportionment

13  plans under s. 627.351.

14         Section 15.  Section 626.382, Florida Statutes, is

15  amended to read:

16         626.382  Continuation, expiration of license; insurance

17  agencies.--The license of any insurance agency shall be issued

18  for a period of 3 years, subject to the payment of the fees

19  prescribed in s. 624.501, and shall continue in force until

20  canceled, suspended, revoked, or otherwise terminated. A

21  license may be renewed by submitting a renewal request to the

22  department on a form adopted by department rule.

23         Section 16.  Subsection (3) of section 626.451, Florida

24  Statutes, is amended to read:

25         626.451  Appointment of agent or other

26  representative.--

27         (3)  By authorizing the effectuation of the appointment

28  of an agent, adjuster, service representative, customer

29  representative, or managing general agent the appointing

30  entity is thereby certifying to the department that it is

31  willing to be bound by the acts of the agent, adjuster,

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 1  service representative, customer representative, or managing

 2  general agent, within the scope of the licensee's employment

 3  or appointment.

 4         Section 17.  Section 626.536, Florida Statutes, is

 5  amended to read:

 6         626.536  Reporting of actions.--Each An agent and

 7  insurance agency, shall submit to the department, within 30

 8  days after the final disposition of any administrative action

 9  taken against the agent or insurance agency by a governmental

10  agency in this or any other state or jurisdiction relating to

11  the business of insurance, the sale of securities, or activity

12  involving fraud, dishonesty, trustworthiness, or breach of a

13  fiduciary duty, a copy of the order, consent to order, or

14  other relevant legal documents. The department may adopt rules

15  implementing the provisions of this section.

16         Section 18.  Subsections (1) and (3) of section

17  626.561, Florida Statutes, are amended to read:

18         626.561  Reporting and accounting for funds.--

19         (1)  All premiums, return premiums, or other funds

20  belonging to insurers or others received by an agent,

21  insurance agency, customer representative, or adjuster in

22  transactions under the his or her license are trust funds

23  received by the licensee in a fiduciary capacity. An agent or

24  insurance agency shall keep the funds belonging to each

25  insurer for which an agent he or she is not appointed, other

26  than a surplus lines insurer, in a separate account so as to

27  allow the department or office to properly audit such funds.

28  The licensee in the applicable regular course of business

29  shall account for and pay the same to the insurer, insured, or

30  other person entitled thereto.

31  

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 1         (3)  Any agent, insurance agency, customer

 2  representative, or adjuster who, not being lawfully entitled

 3  thereto, either temporarily or permanently diverts or

 4  misappropriates such funds or any portion thereof or deprives

 5  the other person of a benefit therefrom commits the offense

 6  specified below:

 7         (a)  If the funds diverted or misappropriated are $300

 8  or less, a misdemeanor of the first degree, punishable as

 9  provided in s. 775.082 or s. 775.083.

10         (b)  If the funds diverted or misappropriated are more

11  than $300, but less than $20,000, a felony of the third

12  degree, punishable as provided in s. 775.082, s. 775.083, or

13  s. 775.084.

14         (c)  If the funds diverted or misappropriated are

15  $20,000 or more, but less than $100,000, a felony of the

16  second degree, punishable as provided in s. 775.082, s.

17  775.083, or s. 775.084.

18         (d)  If the funds diverted or misappropriated are

19  $100,000 or more, a felony of the first degree, punishable as

20  provided in s. 775.082, s. 775.083, or s. 775.084.

21         Section 19.  Subsections (1) and (2) of section

22  626.572, Florida Statutes, are amended to read:

23         626.572  Rebating; when allowed.--

24         (1)  No insurance agency agent shall rebate any portion

25  of a his or her commission except as follows:

26         (a)  The rebate shall be available to all insureds in

27  the same actuarial class.

28         (b)  The rebate shall be in accordance with a rebating

29  schedule filed by the agent with the insurer issuing the

30  policy to which the rebate applies.

31  

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 1         (c)  The rebating schedule shall be uniformly applied

 2  in that all insureds who purchase the same policy through the

 3  agent for the same amount of insurance receive the same

 4  percentage rebate.

 5         (d)  Rebates shall not be given to an insured with

 6  respect to a policy purchased from an insurer that prohibits

 7  its agents from rebating commissions.

 8         (e)  The rebate schedule is prominently displayed in

 9  public view in the agent's place of doing business and a copy

10  is available to insureds on request at no charge.

11         (f)  The age, sex, place of residence, race,

12  nationality, ethnic origin, marital status, or occupation of

13  the insured or location of the risk is not utilized in

14  determining the percentage of the rebate or whether a rebate

15  is available.

16         (2)  The insurance agency agent shall maintain a copy

17  of all rebate schedules for the most recent 5 years and their

18  effective dates.

19         Section 20.  Subsection (1) of section 626.601, Florida

20  Statutes, is amended to read:

21         626.601  Improper conduct; inquiry; fingerprinting.--

22         (1)  The department or office may, upon its own motion

23  or upon a written complaint signed by any interested person

24  and filed with the department or office, inquire into any

25  alleged improper conduct of any licensed insurance agency,

26  agent, adjuster, service representative, managing general

27  agent, customer representative, title insurance agent, title

28  insurance agency, continuing education course provider,

29  instructor, school official, or monitor group under this code.

30  The department or office may thereafter initiate an

31  investigation of any such licensee if it has reasonable cause

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 1  to believe that the licensee has violated any provision of the

 2  insurance code. During the course of its investigation, the

 3  department or office shall contact the licensee being

 4  investigated unless it determines that contacting such person

 5  could jeopardize the successful completion of the

 6  investigation or cause injury to the public.

 7         Section 21.  Section 626.602, Florida Statutes, is

 8  created to read:

 9         626.602  Insurance agency names; disapproval.--The

10  department may disapprove the use of any true or fictitious

11  name, other than the bona fide natural name of an individual,

12  by any insurance agency on any of the following grounds:

13         (1)  The name interferes with or is too similar to a

14  name already filed and in use by another agency or insurer.

15         (2)  The use of the name may mislead the public in any

16  respect.

17         (3)  The name states or implies that the agency is an

18  insurer, motor club, hospital service plan, state or federal

19  agency, charitable organization, or entity that primarily

20  provides advice and counsel rather than sells or solicits

21  insurance, or is entitled to engage in insurance activities

22  not permitted under licenses held or applied for. This

23  provision does not prohibit the use of the word "state" or

24  "states" in the name of the agency. The use of the word

25  "state" or "states" in the name of an agency does not in and

26  of itself imply that the agency is a state agency.

27         Section 22.  Section 626.6115, Florida Statutes, is

28  amended to read:

29         626.6115  Grounds for compulsory refusal, suspension,

30  or revocation of insurance agency license.--The department

31  shall deny, suspend, revoke, or refuse to continue the license

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 1  of any insurance agency if it finds, as to any insurance

 2  agency or as to any majority owner, partner, manager,

 3  director, officer, or other person who manages or controls

 4  such agency, that any either one or both of the following

 5  applicable grounds exist:

 6         (1)  Lack by the agency of one or more of the

 7  qualifications for the license as specified in this code.

 8         (2)  Material misstatement, misrepresentation, or fraud

 9  in obtaining the license or in attempting to obtain the

10  license.

11         (3)  Denial, suspension, or revocation of a license to

12  practice or conduct any regulated profession, business, or

13  vocation relating to the business of insurance by this state,

14  any other state, any nation, any possession or district of the

15  United States, any court, or any lawful agency thereof.

16  However, the existence of grounds for administrative action

17  against a licensed agency does not constitute grounds for

18  action against any other licensed agency, including an agency

19  that owns, is under common ownership with, or is owned by, in

20  whole or in part, the agency for which grounds for

21  administrative action exist.

22         Section 23.  Subsection (6) is added to section

23  626.6215, Florida Statutes, to read:

24         626.6215  Grounds for discretionary refusal,

25  suspension, or revocation of insurance agency license.--The

26  department may, in its discretion, deny, suspend, revoke, or

27  refuse to continue the license of any insurance agency if it

28  finds, as to any insurance agency or as to any majority owner,

29  partner, manager, director, officer, or other person who

30  manages or controls such insurance agency, that any one or

31  more of the following applicable grounds exist:

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 1         (6)  Failure to take corrective action or report a

 2  violation to the department within 30 days after an individual

 3  licensee's violation is known or should have been known by one

 4  or more of the partners, officers, or managers acting on

 5  behalf of the agency. However, the existence of grounds for

 6  administrative action against a licensed agency does not

 7  constitute grounds for action against any other licensed

 8  agency, including an agency that owns, is under common

 9  ownership with, or is owned by, in whole or in part, the

10  agency for which grounds for administrative action exist.

11         Section 24.  Subsection (6) of section 626.621, Florida

12  Statutes, is amended to read:

13         626.621  Grounds for discretionary refusal, suspension,

14  or revocation of agent's, adjuster's, customer

15  representative's, service representative's, or managing

16  general agent's license or appointment.--The department may,

17  in its discretion, deny an application for, suspend, revoke,

18  or refuse to renew or continue the license or appointment of

19  any applicant, agent, adjuster, customer representative,

20  service representative, or managing general agent, and it may

21  suspend or revoke the eligibility to hold a license or

22  appointment of any such person, if it finds that as to the

23  applicant, licensee, or appointee any one or more of the

24  following applicable grounds exist under circumstances for

25  which such denial, suspension, revocation, or refusal is not

26  mandatory under s. 626.611:

27         (6)  In the conduct of business under the license or

28  appointment, engaging in unfair methods of competition or in

29  unfair or deceptive acts or practices, as prohibited under

30  part IX of this chapter, or having otherwise shown himself or

31  

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 1  herself to be a source of injury or loss to the public or

 2  detrimental to the public interest.

 3         Section 25.   Subsections (1) and (2) of section

 4  626.641, Florida Statutes, are amended to read:

 5         626.641  Duration of suspension or revocation.--

 6         (1)  The department shall, in its order suspending a

 7  license or appointment or in its order suspending the

 8  eligibility of a person to hold or apply for such license or

 9  appointment, specify the period during which the suspension is

10  to be in effect; but such period shall not exceed 2 years. The

11  license, appointment, or eligibility shall remain suspended

12  during the period so specified, subject, however, to any

13  rescission or modification of the order by the department, or

14  modification or reversal thereof by the court, prior to

15  expiration of the suspension period. A license, appointment,

16  or eligibility which has been suspended shall not be

17  reinstated except upon request for such reinstatement and, in

18  the case of a second suspension, completion of continuing

19  education courses prescribed and approved by the department or

20  office; but the department shall not grant such reinstatement

21  if it finds that the circumstance or circumstances for which

22  the license, appointment, or eligibility was suspended still

23  exist or are likely to recur. In addition, a request for

24  reinstatement is subject to denial and subject to a waiting

25  period prior to approval on the same grounds that apply to

26  applications for licensure pursuant to ss. 626.207, 626.611,

27  and 626.621.

28         (2)  No person or appointee under any license or

29  appointment revoked by the department, nor any person whose

30  eligibility to hold same has been revoked by the department,

31  shall have the right to apply for another license or

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 1  appointment under this code within 2 years from the effective

 2  date of such revocation or, if judicial review of such

 3  revocation is sought, within 2 years from the date of final

 4  court order or decree affirming the revocation. An applicant

 5  for another license or appointment pursuant to this subsection

 6  must apply and qualify for licensure in the same manner as a

 7  first-time applicant, and the application may be denied on the

 8  same grounds that apply to first-time applicants for licensure

 9  pursuant to ss. 626.207, 626.611, and 626.621. In addition,

10  the department shall not, however, grant a new license or

11  appointment or reinstate eligibility to hold such license or

12  appointment if it finds that the circumstance or circumstances

13  for which the eligibility was revoked or for which the

14  previous license or appointment was revoked still exist or are

15  likely to recur; if an individual's license as agent or

16  customer representative or eligibility to hold same has been

17  revoked upon the ground specified in s. 626.611(12), the

18  department shall refuse to grant or issue any new license or

19  appointment so applied for.

20         Section 26.  Subsection (1) of section 626.7351,

21  Florida Statutes, is amended to read:

22         626.7351  Qualifications for customer representative's

23  license.--The department shall not grant or issue a license as

24  customer representative to any individual found by it to be

25  untrustworthy or incompetent, or who does not meet each of the

26  following qualifications:

27         (1)  The applicant is a natural person at least 18

28  years of age.

29         Section 27.  Subsection (2) of section 626.7355,

30  Florida Statutes, is amended to read:

31  

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 1         626.7355  Temporary license as customer representative

 2  pending examination.--

 3         (2)  There must be no more than one temporary customer

 4  representative licensee in the general lines agency location

 5  where the temporary licensee is housed and the temporary

 6  licensee shall be housed wholly and completely within the

 7  actual confines of the office of the agent or agency whom he

 8  or she represents. Such agency must be in compliance with the

 9  provisions of s. 626.592, commonly referred to as the Primary

10  Agent Law, for the most recent reporting period. No such

11  temporary licensee may be employed from any location except

12  where his or her designated supervising general lines agent

13  spends his or her full time.  No general lines agency location

14  may employ more than two temporary customer representative

15  licensees in one calendar year.

16         Section 28.  Subsection (1) of section 626.747, Florida

17  Statutes, is amended to read:

18         626.747  Branch agencies.--

19         (1)  Each branch place of business established by an

20  agent or agency, firm, corporation, or association shall be in

21  the active full-time charge of a licensed general lines agent

22  or life or health agent who is appointed to represent one or

23  more insurers. Any agent or agency, firm, corporation, or

24  association which has established one or more branch places of

25  business shall be required to have at least one licensed

26  general lines agent who is appointed to represent one or more

27  insurers at each location of the agency including its

28  headquarters location.

29         Section 29.  Subsection (1) of section 626.8411,

30  Florida Statutes, is amended to read:

31  

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 1         626.8411  Application of Florida Insurance Code

 2  provisions to title insurance agents or agencies.--

 3         (1)  The following provisions of part II, as applicable

 4  to general lines agents or agencies, also apply to title

 5  insurance agents or agencies:

 6         (a)  Section 626.734, relating to liability of certain

 7  agents.

 8         (b)  Section 626.175, relating to temporary licenses.

 9         (c)  Section 626.747, relating to branch agencies.

10         (d)  Section 626.749, relating to place of business in

11  residence.

12         (d)(e)  Section 626.753, relating to sharing of

13  commissions.

14         (e)(f)  Section 626.754, relating to rights of agent

15  following termination of appointment.

16         Section 30.  Section 626.84201, Florida Statutes, is

17  created to read:

18         626.84201  Nonresident title insurance

19  agents.--Notwithstanding s. 626.8414(2), the department, upon

20  application and payment of the fees specified in s. 624.501,

21  may issue a license as a nonresident title insurance agent to

22  an individual not a resident of this state in the same manner

23  applicable to the licensure of nonresident general lines

24  agents under the provisions of s. 626.741. Sections 626.742

25  and 626.743 apply to nonresident title insurance agents.

26         Section 31.  Subsection (2) of section 648.50, Florida

27  Statutes, is amended to read:

28         648.50  Effect of suspension, revocation upon

29  associated licenses and licensees.--

30         (2)  In case of the suspension or revocation of the

31  license or appointment, or the eligibility to hold a license

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 1  or appointment, of any bail bond agent, the license,

 2  appointment, or eligibility of any and all bail bond agents

 3  who are members of a bail bond agency, whether incorporated or

 4  unincorporated, and any and all temporary bail bond agents or

 5  runners employed by such bail bond agency, who knowingly are

 6  parties to the act which formed the ground for the suspension

 7  or revocation may likewise be suspended or revoked.

 8         Section 32.  Section 626.592, Florida Statutes, is

 9  repealed.

10         Section 33.  Section 624.1275, Florida Statutes, is

11  created to read:

12         624.1275  Insurance agents; prohibited exclusion from

13  public bidding and negotiations.--A licensed insurance agent

14  shall not be prohibited or excluded from competing or

15  negotiating for any insurance product or plan purchased,

16  provided, or endorsed by a state agency or any political

17  subdivision of this state on the basis of the compensation,

18  contractual or employment arrangement granted to the agent by

19  an employer, insurer, or licensed agency. The term "political

20  subdivision" has the same meaning set forth in s. 1.01.

21         Section 34.  This act shall take effect October 1,

22  2005.

23  

24          STATEMENT OF SUBSTANTIAL CHANGES CONTAINED IN
                       COMMITTEE SUBSTITUTE FOR
25                       CS/Senate Bill 1912

26                                 

27  The committee substitute makes the following changes to the
    underlying committee substitute:
28  
    --   Makes technical changes throughout.
29  

30  

31  

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