HB 0591

CS

CHAMBER ACTION

1	The Commerce Council recommends the following:
2
3	Council/Committee Substitute
4	Remove the entire bill and insert:
5	A bill to be entitled
6	An act relating to insurance agents and agencies; creating
7	s. 624.1275, F.S.; proscribing state agencies and
8	political subdivisions from prohibiting or excluding
9	licensed insurance agents from competing or negotiating
10	for certain insurance products or plans; providing a
11	definition; amending s. 624.317, F.S.; including insurance
12	agencies among entities the Department of Financial
13	Services is authorized to investigate; amending s.
14	624.318, F.S.; authorizing the department or the Office of
15	Insurance Regulation to electronically scan certain
16	information for certain purposes; providing application;
17	amending s. 624.501, F.S.; clarifying a license fee;
18	amending s. 626.015, F.S.; revising definitions; amending
19	s. 626.016, F.S.; including insurance agencies among
20	entities subject to regulation by the Chief Financial
21	Officer; amending s. 626.025, F.S.; correcting cross
22	references; amending s. 626.112, F.S.; delaying the
23	effective date by which agencies must obtain a license;
24	providing that an agency may file for registration in lieu
25	of licensure under specified conditions; imposing a fine
26	on any agency that fails to timely apply for licensure or
27	registration; deleting certain agency licensure
28	requirement provisions; amending s. 626.171, F.S.;
29	specifying licensure and registration application
30	requirements for insurance entities other than insurance
31	agencies; deleting a provision applying to insurance
32	agency license application requirements; amending s.
33	626.172, F.S.; revising insurance agency licensure
34	application requirements; providing procedures and
35	limitations; providing duties of the department; amending
36	s. 626.221, F.S.; revising exceptions to certain
37	examination requirements; amending s. 626.2815, F.S.;
38	revising certain continuing education requirements;
39	amending ss. 626.292 and 626.321, F.S.; correcting cross
40	references, to conform; amending s. 626.342, F.S.;
41	including insurance agencies under provisions prohibiting
42	furnishing supplies to certain unlicensed agents and
43	imposing civil liability under certain circumstances;
44	amending s. 626.382, F.S.; providing for renewal of
45	licenses; amending s. 626.451, F.S.; clarifying
46	application of a provision relating to authorizing
47	effectuation of certain appointments; amending s. 626.536,
48	F.S.; including insurance agencies under an action
49	reporting requirement; amending s. 626.561, F.S.;
50	including insurance agencies under provisions providing
51	funds reporting and accounting requirements and imposing
52	criminal penalties; amending s. 626.572, F.S.; including
53	insurance agencies under provisions prohibiting rebating
54	under certain circumstances; creating s. 626.594, F.S.;
55	prohibiting insurance producers and affiliates from
56	accepting or receiving compensation from insurers or third
57	parties for certain purposes under certain circumstances;
58	providing an exception relating to certain disclosures;
59	providing requirements; providing construction; specifying
60	that disclosures need not be made by certain persons;
61	providing definitions; amending s. 626.601, F.S.;
62	including insurance agencies under provisions authorizing
63	the department to inquire into improper conduct; creating
64	s. 626.602, F.S.; authorizing the department to disapprove
65	the use of certain names under certain circumstances;
66	providing construction; amending s. 626.6115, F.S.;
67	providing an additional ground for the department to take
68	compulsory adverse insurance agency license actions;
69	providing that the existence of grounds for adverse action
70	against a licensed agency does not constitute grounds for
71	adverse action against another licensed agency; amending
72	s. 626.621, F.S.; clarifying a ground for certain adverse
73	actions against certain licenses or appointments; amending
74	s. 626.6215, F.S.; providing an additional ground for the
75	department to take discretionary adverse insurance agency
76	license actions; providing that the existence of grounds
77	for adverse action against a licensed agency does not
78	constitute grounds for adverse action against another
79	licensed agency; amending s. 626.641, F.S.; specifying
80	requests for reinstatements that are subject to denial and
81	certain waiting periods; requiring applicants for
82	additional licenses or appointments to apply and qualify;
83	providing for denial of such applications; amending s.
84	626.7351, F.S.; specifying an age requirement for
85	applicants for a customer representative's license;
86	amending s. 626.747, F.S.; revising agent requirements for
87	branch agencies to include life or health agents; amending
88	ss. 626.7355 and 626.8411, F.S.; deleting cross
89	references, to conform; amending s. 626.854, F.S.;
90	providing definitions; specifying prohibited activities
91	for public adjusters; limiting a public adjuster's
92	commissions; providing requirements for public adjusters'
93	contracts; providing general ethical requirements for
94	public adjusters; specifying limitations; limiting the
95	authority of a public adjuster to adjust total loss
96	claims; amending s. 626.9541, F.S.; prohibiting certain
97	persons from receiving unearned premiums from flood
98	insurance carriers; providing that falsely representing a
99	contract to be a contract of reinsurance is an unfair
100	trade practice; amending s. 648.50, F.S.; clarifying a
101	provision relating to adverse actions against licenses and
102	appointments; repealing s. 626.592, F.S., relating to
103	primary agents; providing an effective date.
104
105	Be It Enacted by the Legislature of the State of Florida:
106
107	Section 1.  Section 624.1275, Florida Statutes, is created
108	to read:
109	624.1275  Insurance agents; prohibited exclusion from
110	public bidding and negotiations.--A licensed insurance agent may
111	not be prohibited or excluded from competing or negotiating for
112	any insurance product or plan purchased, provided, or endorsed
113	by a state agency or any political subdivision of this state on
114	the basis of the compensation or contractual or employment
115	arrangement granted to the agent by an employer, insurer, or
116	licensed agency. The term "political subdivision" has the same
117	meaning set forth in s. 1.01.
118	Section 2.  Subsection (1) of section 624.317, Florida
119	Statutes, is amended to read:
120	624.317  Investigation of agents, agencies, adjusters,
121	administrators, service companies, and others.--If it has reason
122	to believe that any person has violated or is violating any
123	provision of this code, or upon the written complaint signed by
124	any interested person indicating that any such violation may
125	exist:
126	(1)  The department shall conduct such investigation as it
127	deems necessary of the accounts, records, documents, and
128	transactions pertaining to or affecting the insurance affairs of
129	any general agent, surplus lines agent, adjuster, managing
130	general agent, insurance agent, insurance agency, customer
131	representative, service representative, or other person subject
132	to its jurisdiction, subject to the requirements of s. 626.601.
133	Section 3.  Subsection (7) is added to section 624.318,
134	Florida Statutes, to read:
135	624.318  Conduct of examination or investigation; access to
136	records; correction of accounts; appraisals.--
137	(7)(a)  The department or office or its examiners or
138	investigators may electronically scan accounts, records,
139	documents, files, and information, relating to the subject of
140	the examination or investigation, in the possession or control
141	of the person being examined or investigated.
142	(b)  The provisions of this subsection are applicable to
143	all investigations and examinations authorized by any provision
144	of the Florida Insurance Code.
145	Section 4.  Subsection (20) of section 624.501, Florida
146	Statutes, is amended to read:
147	624.501  Filing, license, appointment, and miscellaneous
148	fees.--The department, commission, or office, as appropriate,
149	shall collect in advance, and persons so served shall pay to it
150	in advance, fees, licenses, and miscellaneous charges as
151	follows:
152	(20)  Insurance agency or Adjusting firm, original or
153	renewal 3-year license....$60.00
154	Section 5.  Subsections (7) and (16) of section 626.015,
155	Florida Statutes, are amended to read:
156	626.015  Definitions.--As used in this part:
157	(7)  "Home state" means the District of Columbia and any
158	state or territory of the United States in which an insurance
159	agent maintains his or her principal place of residence or
160	principal place of business and is licensed to act as an
161	insurance agent.
162	(16)  "Resident" means an individual whose home state is
163	the State of Florida domiciled and residing in this state.
164	Section 6.  Subsection (1) of section 626.016, Florida
165	Statutes, is amended to read:
166	626.016  Powers and duties of department, commission, and
167	office.--
168	(1)  The powers and duties of the Chief Financial Officer
169	and the department specified in this part apply only with
170	respect to insurance agents, insurance agencies, managing
171	general agents, insurance adjusters, reinsurance intermediaries,
172	viatical settlement brokers, customer representatives, service
173	representatives, and agencies.
174	Section 7.  Subsections (7) and (12) of section 626.025,
175	Florida Statutes, are amended, and subsections (13), (14), and
176	(15) of said section are renumbered as subsections (12), (13),
177	and (14), respectively, to read:
178	626.025  Consumer protections.--To transact insurance,
179	agents shall comply with consumer protection laws, including the
180	following, as applicable:
181	(7)  Required licensure or registration of certain
182	insurance agencies under s. 626.112 626.172.
183	(12)  Designation of a primary agent by an insurance agency
184	under s. 626.592.
185	Section 8.  Subsection (7) of section 626.112, Florida
186	Statutes, is amended to read:
187	626.112  License and appointment required; agents, customer
188	representatives, adjusters, insurance agencies, service
189	representatives, managing general agents.--
190	(7)(a)  Effective October 1, 2006, no individual, firm,
191	partnership, corporation, association, or any other entity shall
192	act in its own name or under a trade name, directly or
193	indirectly, as an insurance agency, when required to be licensed
194	by this subsection, unless it complies with s. 626.172 with
195	respect to possessing an insurance agency license for each place
196	of business at which it engages in any activity which may be
197	performed only by a licensed insurance agent. Each agency
198	engaged in business in this state before January 1, 2003, which
199	is wholly owned by insurance agents currently licensed and
200	appointed under this chapter, each incorporated agency whose
201	voting shares are traded on a securities exchange, and each
202	agency whose primary function is offering insurance as a service
203	or member benefit to members of a nonprofit corporation may file
204	an application for registration in lieu of licensure in
205	accordance with s. 626.172(3). Each agency engaged in business
206	before October 1, 2006, shall file an application for licensure
207	or registration on or before October 1, 2006.
208	1.  If an agency is required to be licensed but fails to
209	file an application for licensure in accordance with this
210	section, the department shall impose on the agency an
211	administrative penalty in an amount of up to $10,000.
212	2.  If an agency is eligible for registration but fails to
213	file an application for registration or an application for
214	licensure in accordance with this section, the department shall
215	impose on the agency an administrative penalty in an amount of
216	up to $5,000.
217	(b)  A registered An insurance agency shall, as a condition
218	precedent to continuing business, obtain an insurance agency
219	license if the department finds that, with respect to any
220	majority owner, partner, manager, director, officer, or other
221	person who manages or controls the agency, any person has,
222	subsequent to the effective date of this act:
223	1.  Been found guilty of, or has pleaded guilty or nolo
224	contendere to, a felony in this state or any other state
225	relating to the business of insurance or to an insurance agency,
226	without regard to whether a judgment of conviction has been
227	entered by the court having jurisdiction of the cases.
228	2.  Employed any individual in a managerial capacity or in
229	a capacity dealing with the public who is under an order of
230	revocation or suspension issued by the department. An insurance
231	agency may request, on forms prescribed by the department,
232	verification of any person's license status. If a request is
233	mailed within 5 working days after an employee is hired, and the
234	employee's license is currently suspended or revoked, the agency
235	shall not be required to obtain a license, if the unlicensed
236	person's employment is immediately terminated.
237	3.  Operated the agency or permitted the agency to be
238	operated in violation of s. 626.747.
239	4.  With such frequency as to have made the operation of
240	the agency hazardous to the insurance-buying public or other
241	persons:
242	a.  Solicited or handled controlled business. This
243	subparagraph shall not prohibit the licensing of any lending or
244	financing institution or creditor, with respect to insurance
245	only, under credit life or disability insurance policies of
246	borrowers from the institutions, which policies are subject to
247	part IX of chapter 627.
248	b.  Misappropriated, converted, or unlawfully withheld
249	moneys belonging to insurers, insureds, beneficiaries, or others
250	and received in the conduct of business under the license.
251	c.  Unlawfully rebated, attempted to unlawfully rebate, or
252	unlawfully divided or offered to divide commissions with
253	another.
254	d.  Misrepresented any insurance policy or annuity
255	contract, or used deception with regard to any policy or
256	contract, done either in person or by any form of dissemination
257	of information or advertising.
258	e.  Violated any provision of this code or any other law
259	applicable to the business of insurance in the course of dealing
260	under the license.
261	f.  Violated any lawful order or rule of the department.
262	g.  Failed or refused, upon demand, to pay over to any
263	insurer he or she represents or has represented any money coming
264	into his or her hands belonging to the insurer.
265	h.  Violated the provision against twisting as defined in
266	s. 626.9541(1)(l).
267	i.  In the conduct of business, engaged in unfair methods
268	of competition or in unfair or deceptive acts or practices, as
269	prohibited under part IX of this chapter.
270	j.  Willfully overinsured any property insurance risk.
271	k.  Engaged in fraudulent or dishonest practices in the
272	conduct of business arising out of activities related to
273	insurance or the insurance agency.
274	l.  Demonstrated lack of fitness or trustworthiness to
275	engage in the business of insurance arising out of activities
276	related to insurance or the insurance agency.
277	m.  Authorized or knowingly allowed individuals to transact
278	insurance who were not then licensed as required by this code.
279	5.  Knowingly employed any person who within the preceding
280	3 years has had his or her relationship with an agency
281	terminated in accordance with paragraph (d).
282	6.  Willfully circumvented the requirements or prohibitions
283	of this code.
284	(c)  An agency required to be licensed in accordance with
285	paragraph (b) shall remain so licensed for a period of 3 years
286	from the date of licensure unless the license is suspended or
287	revoked in accordance with law. The department may revoke or
288	suspend the agency authority to do business for activities
289	occurring during the time the agency is licensed, regardless of
290	whether the licensing period has terminated.
291	(d)  Notwithstanding the provisions of this subsection, no
292	insurance agency shall be required to apply for an agency
293	license if such agency can prove to the department that:
294	1.  The agency is severing its relationship with each
295	majority owner, partner, manager, director, officer, or other
296	person who managed or controlled such agency and who violated
297	any of the provisions of paragraph (b).
298	2.  No such majority owner, partner, manager, director,
299	officer, or other person who managed such agency is to be
300	affiliated with such agency in any capacity for a period of 3
301	years from the date of such severance.
302	Section 9.  Section 626.171, Florida Statutes, is amended
303	to read:
304	626.171  Application for license as an agent, customer
305	representative, adjuster, service representative, managing
306	general agent, or reinsurance intermediary.--
307	(1)  The department shall not issue a license as an agent,
308	customer representative, adjuster, insurance agency, service
309	representative, managing general agent, or reinsurance
310	intermediary to any person except upon written application
311	therefor filed with it, qualification therefor, and payment in
312	advance of all applicable fees. Any such application shall be
313	made under the oath of the applicant and be signed by the
314	applicant. Beginning November 1, 2002, The department shall
315	accept the uniform application for nonresident agent licensing.
316	The department may adopt revised versions of the uniform
317	application by rule.
318	(2)  In the application, the applicant shall set forth:
319	(a)  His or her full name, age, social security number,
320	residence address, business address, and mailing address.
321	(b)  Proof that he or she has completed or is in the
322	process of completing any required prelicensing course.
323	(c)  Whether he or she has been refused or has voluntarily
324	surrendered or has had suspended or revoked a license to solicit
325	insurance by the department or by the supervising officials of
326	any state.
327	(d)  Whether any insurer or any managing general agent
328	claims the applicant is indebted under any agency contract or
329	otherwise and, if so, the name of the claimant, the nature of
330	the claim, and the applicant's defense thereto, if any.
331	(e)  Proof that the applicant meets the requirements for
332	the type of license for which he or she is applying.
333	(f)  Such other or additional information as the department
334	may deem proper to enable it to determine the character,
335	experience, ability, and other qualifications of the applicant
336	to hold himself or herself out to the public as an insurance
337	representative.
338	(3)  An application for an insurance agency license shall
339	be signed by the owner or owners of the agency. If the agency is
340	incorporated, the application shall be signed by the president
341	and secretary of the corporation.
342	(3)(4)  Each application shall be accompanied by payment of
343	any applicable fee.
344	(4)(5)  An application for a license as an agent, customer
345	representative, adjuster, insurance agency, service
346	representative, managing general agent, or reinsurance
347	intermediary must be accompanied by a set of the individual
348	applicant's fingerprints, or, if the applicant is not an
349	individual, by a set of the fingerprints of the sole proprietor,
350	majority owner, partners, officers, and directors, on a form
351	adopted by rule of the department and accompanied by the
352	fingerprint processing fee set forth in s. 624.501. Fingerprints
353	shall be used to investigate the applicant's qualifications
354	pursuant to s. 626.201. The fingerprints shall be taken by a law
355	enforcement agency or other department-approved entity.
356	(5)(6)  The application for license filing fee prescribed
357	in s. 624.501 is not subject to refund.
358	(6)(7)  Pursuant to the federal Personal Responsibility and
359	Work Opportunity Reconciliation Act of 1996, each party is
360	required to provide his or her social security number in
361	accordance with this section. Disclosure of social security
362	numbers obtained through this requirement shall be limited to
363	the purpose of administration of the Title IV-D program for
364	child support enforcement.
365	Section 10.  Section 626.172, Florida Statutes, is amended
366	to read:
367	626.172  Application for insurance agency license.--
368	(1)  The department may issue a license as an insurance
369	agency to any person only after such person files a written
370	application with the department and qualifies for such license.
371	If any majority owner, partner, officer, or director of an
372	insurance agency:
373	(a)  Has been found guilty of, or has pleaded guilty or
374	nolo contendere to, a felony relating to the business of
375	insurance in this state or any other state or federal court,
376	regardless of whether a judgment of conviction has been entered
377	by the court having jurisdiction of such cases; or
378	(b)  Has been denied a license relating to the business of
379	insurance, or has had his or her license to practice or conduct
380	any regulated profession, business, or vocation relating to the
381	business of insurance revoked or suspended, by this or any other
382	state, any nation, any possession or district of the United
383	States, or any court, or any lawful agency thereof;
384
385	the insurance agency and any subsidiary or branch thereof shall
386	obtain a license from the department pursuant to this section.
387	(2)  An application for an insurance agency license shall
388	be signed by the owner or owners of the agency. If the agency is
389	incorporated, the application shall be signed by the president
390	and secretary of the corporation. The application for an
391	insurance agency license shall include:
392	(a)  The name of each majority owner, partner, officer, and
393	director of the insurance agency.
394	(b)  The residence address of each person required to be
395	listed in the application under paragraph (a).
396	(c)  The name of the insurance agency and its principal
397	business address.
398	(d)  The location of each agency office and the name under
399	which each agency office conducts or will conduct business.
400	(e)  The name of each agent to be in full-time charge of an
401	agency office and specification of which office.
402	(f)  The fingerprints of each of the following:
403	1.  A sole proprietor.
404	2.  Each partner.
405	3.  Each owner of an unincorporated agency.
406	4.  Each owner who directs or participates in the
407	management or control of an incorporated agency whose shares are
408	not traded on a securities exchange.
409	5.  The president, senior vice-presidents, treasurer,
410	secretary, and directors of the agency.
411	6.  Any other person who directs or participates in the
412	management or control of the agency, whether through the
413	ownership of voting securities, by contract, or otherwise.
414
415	Fingerprints must be taken by a law enforcement agency or other
416	entity approved by the department and must be accompanied by the
417	fingerprint processing fee specified in s. 624.501. Fingerprints
418	shall be processed in accordance with s. 624.34. However,
419	fingerprints need not be filed for any individual who is
420	currently licensed and appointed under this chapter. This
421	paragraph does not apply to corporations whose voting shares are
422	traded on a securities exchange. The name of any person to whom
423	subsection (1) applies.
424	(g)  Such additional information as the department requires
425	by promulgated rule to ascertain the trustworthiness and
426	competence of persons required to be listed on the application
427	and to ascertain that such persons meet the requirements of this
428	code. However, the department may not require that credit or
429	character reports be submitted for persons required to be listed
430	on the application.
431	(h)  Beginning October 1, 2005, the department shall accept
432	the uniform application for nonresident agency licensure. The
433	department may adopt by rule revised versions of the uniform
434	application.
435	(3)  The department shall issue a registration as an
436	insurance agency to any agency that files a written application
437	with the department and qualifies for registration. The
438	application for registration shall require the agency to provide
439	the same information required for an agency licensed under
440	subsection (2); the agent identification number for each owner
441	who is a licensed agent; proof that the agency qualifies for
442	registration as provided in s. 626.112(7); and any other
443	additional information that the department determines is
444	necessary in order to demonstrate that the agency qualifies for
445	registration. The application must be signed by the owner or
446	owners of the agency. If the agency is incorporated, the
447	application must be signed by the president and the secretary of
448	the corporation. An agent who owns the agency need not file
449	fingerprints with the department if the agent obtained a license
450	under this chapter, and the license is currently valid.
451	(a)  If an application for registration is denied, the
452	agency must file an application for licensure no later than 30
453	days after the date of the denial of registration.
454	(b)  A registered insurance agency must file an application
455	for licensure no later than 30 days after the date that any
456	person who is not a licensed and appointed agent in this state
457	acquires any ownership interest in the agency. If an agency
458	fails to file an application for licensure in compliance with
459	this paragraph, the department shall impose an administrative
460	penalty in an amount of up to $5,000 on the agency.
461	(c)  Sections 626.6115 and 626.6215 do not apply to
462	agencies registered under this subsection.
463	(4)  The department shall issue a license or registration
464	to each agency upon approval of the application and each agency
465	shall display the license or registration prominently in a
466	manner that makes it clearly visible to any customer or
467	potential customer who enters the agency.
468	Section 11.  Subsection (2) of section 626.221, Florida
469	Statutes, is amended to read:
470	626.221  Examination requirement; exemptions.--
471	(2)  However, no such examination shall be necessary in any
472	of the following cases:
473	(a)  An applicant for renewal of appointment as an agent,
474	customer representative, or adjuster, unless the department
475	determines that an examination is necessary to establish the
476	competence or trustworthiness of such applicant.
477	(b)  An applicant for limited license as agent for personal
478	accident insurance, baggage and motor vehicle excess liability
479	insurance, credit life or disability insurance, credit
480	insurance, credit property insurance, in-transit and storage
481	personal property insurance, or communications equipment
482	property insurance or communication equipment inland marine
483	insurance.
484	(c)  In the discretion of the department, an applicant for
485	reinstatement of license or appointment as an agent, customer
486	representative, or adjuster whose license has been suspended
487	within 2 years prior to the date of application or written
488	request for reinstatement.
489	(d)  An applicant who, within 2 years prior to application
490	for license and appointment as an agent, customer
491	representative, or adjuster, was a full-time salaried employee
492	of the department and had continuously been such an employee
493	with responsible insurance duties for not less than 2 years and
494	who had been a licensee within 2 years prior to employment by
495	the department with the same class of license as that being
496	applied for.
497	(e)  An individual who qualified as a managing general
498	agent, service representative, customer representative, or all-
499	lines adjuster by passing a general lines agent's examination
500	and subsequently was licensed and appointed and has been
501	actively engaged in all lines of property and casualty insurance
502	may, upon filing an application for appointment, be licensed and
503	appointed as a general lines agent for the same kinds of
504	business without taking another examination if he or she holds
505	any such currently effective license referred to in this
506	paragraph or held the license within 48 months prior to the date
507	of filing the application with the department.
508	(e)(f)  A person who has been licensed and appointed as a
509	public adjuster, or independent adjuster, or licensed and
510	appointed either as an agent or company adjuster, as to all
511	property, casualty, and surety insurances, may be licensed and
512	appointed as a company, adjuster as to any of such insurances,
513	or as an independent, adjuster or public adjuster, as to such
514	kinds of insurance, without additional written examination if an
515	application for licensure appointment is filed with the
516	department within 48 months following the date of cancellation
517	or expiration of the prior appointment.
518	(f)(g)  A person who has been licensed as an adjuster for
519	motor vehicle, property and casualty, workers' compensation, and
520	health insurance may be licensed as such an adjuster without
521	additional written examination if his or her application for
522	licensure appointment is filed with the department within 48
523	months after cancellation or expiration of the prior license.
524	(g)(h)  An applicant for temporary license, except as
525	provided in this code.
526	(h)(i)  An applicant for a life or health license who has
527	received the designation of chartered life underwriter (CLU)
528	from the American College of Life Underwriters and who has been
529	engaged in the insurance business within the past 4 years,
530	except that such an individual may be examined on pertinent
531	provisions of this code.
532	(i)(j)  An applicant for license as a general lines agent,
533	customer representative, or adjuster who has received the
534	designation of chartered property and casualty underwriter
535	(CPCU) from the American Institute for Property and Liability
536	Underwriters and who has been engaged in the insurance business
537	within the past 4 years, except that such an individual may be
538	examined on pertinent provisions of this code.
539	(j)(k)  An applicant for license as a customer
540	representative who has the designation of Accredited Advisor in
541	Insurance (AAI) from the Insurance Institute of America, the
542	designation of Certified Insurance Counselor (CIC) from the
543	Society of Certified Insurance Service Counselors, the
544	designation of Accredited Customer Service Representative (ACSR)
545	from the Independent Insurance Agents of America, the
546	designation of Certified Professional Service Representative
547	(CPSR) from the National Foundation for Certified Professional
548	Service Representatives, the designation of Certified Insurance
549	Service Representative (CISR) from the Society of Certified
550	Insurance Service Representatives. Also, an applicant for
551	license as a customer representative who has the designation of
552	Certified Customer Service Representative (CCSR) from the
553	Florida Association of Insurance Agents, or the designation of
554	Registered Customer Service Representative (RCSR) from a
555	regionally accredited postsecondary institution in this state,
556	or the designation of Professional Customer Service
557	Representative (PCSR) from the Professional Career Institute,
558	whose curriculum has been approved by the department and whose
559	curriculum includes comprehensive analysis of basic property and
560	casualty lines of insurance and testing at least equal to that
561	of standard department testing for the customer representative
562	license. The department shall adopt rules establishing standards
563	for the approval of curriculum.
564	(k)(l)  An applicant for license as an adjuster who has the
565	designation of Accredited Claims Adjuster (ACA) from a
566	regionally accredited postsecondary institution in this state,
567	or the designation of Professional Claims Adjuster (PCA) from
568	the Professional Career Institute, whose curriculum has been
569	approved by the department and whose curriculum includes
570	comprehensive analysis of basic property and casualty lines of
571	insurance and testing at least equal to that of standard
572	department testing for the all-lines adjuster license. The
573	department shall adopt rules establishing standards for the
574	approval of curriculum.
575	(l)(m)  An applicant qualifying for a license transfer
576	under s. 626.292, if the applicant:
577	1.  Has successfully completed the prelicensing examination
578	requirements in the applicant's previous state which are
579	substantially equivalent to the examination requirements in this
580	state, as determined by the department;
581	2.  Has received the designation of chartered property and
582	casualty underwriter (CPCU) from the American Institute for
583	Property and Liability Underwriters and has been engaged in the
584	insurance business within the past 4 years if applying to
585	transfer a general lines agent license; or
586	3.  Has received the designation of chartered life
587	underwriter (CLU) from the American College of Life Underwriters
588	and has been engaged in the insurance business within the past 4
589	years, if applying to transfer a life or health agent license.
590	(m)(n)  An applicant for a nonresident agent license, if
591	the applicant:
592	1.  Has successfully completed prelicensing examination
593	requirements in the applicant's home state which are
594	substantially equivalent to the examination requirements in this
595	state, as determined by the department, as a requirement for
596	obtaining a resident license in his or her home state;
597	2.  Held a general lines agent license, life agent license,
598	or health agent license prior to the time a written examination
599	was required;
600	3.  Has received the designation of chartered property and
601	casualty underwriter (CPCU) from the American Institute for
602	Property and Liability Underwriters and has been engaged in the
603	insurance business within the past 4 years, if an applicant for
604	a nonresident license as a general lines agent; or
605	4.  Has received the designation of chartered life
606	underwriter (CLU) from the American College of Life Underwriters
607	and has been in the insurance business within the past 4 years,
608	if an applicant for a nonresident license as a life agent or
609	health agent.
610	Section 12.  Paragraphs (a), (b), (c), and (d) of
611	subsection (3) of section 626.2815, Florida Statutes, are
612	amended to read:
613	626.2815  Continuing education required; application;
614	exceptions; requirements; penalties.--
615	(3)(a)  Each person subject to the provisions of this
616	section must, except as set forth in paragraphs (b), and (c),
617	and (d), complete a minimum of 24 hours of continuing education
618	courses every 2 years in basic or higher-level courses
619	prescribed by this section or in other courses approved by the
620	department. Each person subject to the provisions of this
621	section must complete, as part of his or her required number of
622	continuing education hours, 3 hours of continuing education,
623	approved by the department, every 2 years on the subject matter
624	of ethics.
625	(b)  For compliance periods beginning on January 1, 1998, A
626	person who has been licensed for a period of 6 or more years
627	must complete 20 hours every 2 years in intermediate or
628	advanced-level courses prescribed by this section or in other
629	courses approved by the department.
630	(c)  A licensee who has been licensed for 25 years or more
631	and is a CLU or a CPCU or has a Bachelor of Science degree in
632	risk management or insurance with evidence of 18 or more
633	semester hours in upper-level insurance-related courses must
634	complete 10 12 hours of continuing education courses every 2
635	years in courses prescribed by this section or in other courses
636	approved by the department, except, for compliance periods
637	beginning January 1, 1998, the licensees described in this
638	paragraph shall be required to complete 10 hours of continuing
639	education courses every 2 years.
640	(d)  Any person who holds a license as a customer
641	representative, limited customer representative, title agent,
642	motor vehicle physical damage and mechanical breakdown insurance
643	agent, crop or hail and multiple-peril crop insurance agent, or
644	as an industrial fire insurance or burglary insurance agent and
645	who is not a licensed life or health insurance agent, shall be
646	required to complete 10 12 hours of continuing education courses
647	every 2 years, except, for compliance periods beginning on
648	January 1, 1998, each licensee subject to this paragraph shall
649	be required to complete 10 hours of continuing education courses
650	every 2 years.
651	Section 13.  Paragraph (c) of subsection (2) of section
652	626.292, Florida Statutes, is amended to read:
653	626.292  Transfer of license from another state.--
654	(2)  To qualify for a license transfer, an individual
655	applicant must meet the following requirements:
656	(c)  The individual shall submit a completed application
657	for this state which is received by the department within 90
658	days after the date the individual became a resident of this
659	state, along with payment of the applicable fees set forth in s.
660	624.501 and submission of the following documents:
661	1.  A certification issued by the appropriate official of
662	the applicant's home state identifying the type of license and
663	lines of authority under the license and stating that, at the
664	time the license from the home state was canceled, the applicant
665	was in good standing in that state or that the state's Producer
666	Database records, maintained by the National Association of
667	Insurance Commissioners, its affiliates, or subsidiaries,
668	indicate that the agent is or was licensed in good standing for
669	the line of authority requested.
670	2.  A set of the individual applicant's fingerprints in
671	accordance with s. 626.171(4)(5).
672	Section 14.  Paragraph (d) of subsection (1) and paragraph
673	(a) of subsection (2) of section 626.321, Florida Statutes, are
674	amended to read:
675	626.321  Limited licenses.--
676	(1)  The department shall issue to a qualified individual,
677	or a qualified individual or entity under paragraphs (c), (d),
678	(e), and (i), a license as agent authorized to transact a
679	limited class of business in any of the following categories:
680	(d)  Baggage and motor vehicle excess liability
681	insurance.--
682	1.  License covering only insurance of personal effects
683	except as provided in subparagraph 2. The license may be issued
684	only:
685	a.  To a full-time salaried employee of a common carrier or
686	a full-time salaried employee or owner of a transportation
687	ticket agency, which person is engaged in the sale or handling
688	of transportation of baggage and personal effects of travelers,
689	and may authorize the sale of such insurance only in connection
690	with such transportation; or
691	b.  To the full-time salaried employee of a licensed
692	general lines agent or to a business entity that offers motor
693	vehicles for rent or lease if insurance sales activities
694	authorized by the license are in connection with and incidental
695	to the rental of a motor vehicle. An entity applying for a
696	license under this sub-subparagraph:
697	(I)  Is required to submit only one application for a
698	license under s. 626.171. The requirements of s. 626.171(4)(5)
699	shall apply only to the officers and directors of the entity
700	submitting the application.
701	(II)  Is required to obtain a license for each office,
702	branch office, or place of business making use of the entity's
703	business name by applying to the department for the license on a
704	simplified application form developed by rule of the department
705	for this purpose.
706	(III)  Is required to pay the applicable fees for a license
707	as prescribed in s. 624.501, be appointed under s. 626.112, and
708	pay the prescribed appointment fee under s. 624.501. A licensed
709	and appointed entity shall be directly responsible and
710	accountable for all acts of the licensee's employees.
711
712	The purchaser of baggage insurance shall be provided written
713	information disclosing that the insured's homeowner's policy may
714	provide coverage for loss of personal effects and that the
715	purchase of such insurance is not required in connection with
716	the purchase of tickets or in connection with the lease or
717	rental of a motor vehicle.
718	2.  A business entity that offers motor vehicles for rent
719	or lease, may include lessees under a master contract providing
720	coverage to the lessor or may transact excess motor vehicle
721	liability insurance providing coverage in excess of the standard
722	liability limits provided by the lessor in its lease to a person
723	renting or leasing a motor vehicle from the licensee's employer
724	for liability arising in connection with the negligent operation
725	of the leased or rented motor vehicle, provided that the lease
726	or rental agreement is for not more than 30 days; that the
727	lessee is not provided coverage for more than 30 consecutive
728	days per lease period, and, if the lease is extended beyond 30
729	days, the coverage may be extended one time only for a period
730	not to exceed an additional 30 days; that the lessee is given
731	written notice that his or her personal insurance policy
732	providing coverage on an owned motor vehicle may provide
733	additional excess coverage; and that the purchase of the
734	insurance is not required in connection with the lease or rental
735	of a motor vehicle. The excess liability insurance may be
736	provided to the lessee as an additional insured on a policy
737	issued to the licensee's employer.
738	3.  A business entity that offers motor vehicles for rent
739	or lease, may, as an agent of an insurer, transact insurance
740	that provides coverage for the liability of the lessee to the
741	lessor for damage to the leased or rented motor vehicle if:
742	a.  The lease or rental agreement is for not more than 30
743	days; or the lessee is not provided coverage for more than 30
744	consecutive days per lease period, but, if the lease is extended
745	beyond 30 days, the coverage may be extended one time only for a
746	period not to exceed an additional 30 days;
747	b.  The lessee is given written notice that his or her
748	personal insurance policy that provides coverage on an owned
749	motor vehicle may provide such coverage with or without a
750	deductible; and
751	c.  The purchase of the insurance is not required in
752	connection with the lease or rental of a motor vehicle.
753	(2)  An entity applying for a license under this section is
754	required to:
755	(a)  Submit only one application for a license under s.
756	626.171. The requirements of s. 626.171(4)(5) shall only apply
757	to the officers and directors of the entity submitting the
758	application.
759	Section 15.  Subsections (1) and (2) of section 626.342,
760	Florida Statutes, are amended to read:
761	626.342  Furnishing supplies to unlicensed life, health, or
762	general lines agent prohibited; civil liability.--
763	(1)  An insurer, a managing general agent, an insurance
764	agency, or an agent, directly or through any representative, may
765	not furnish to any agent any blank forms, applications,
766	stationery, or other supplies to be used in soliciting,
767	negotiating, or effecting contracts of insurance on its behalf
768	unless such blank forms, applications, stationery, or other
769	supplies relate to a class of business with respect to which the
770	agent is licensed and appointed, whether for that insurer or
771	another insurer.
772	(2)  Any insurer, general agent, insurance agency, or agent
773	who furnishes any of the supplies specified in subsection (1) to
774	any agent or prospective agent not appointed to represent the
775	insurer and who accepts from or writes any insurance business
776	for such agent or agency is subject to civil liability to any
777	insured of such insurer to the same extent and in the same
778	manner as if such agent or prospective agent had been appointed
779	or authorized by the insurer or such agent to act in its or his
780	or her behalf. The provisions of this subsection do not apply to
781	insurance risk apportionment plans under s. 627.351.
782	Section 16.  Section 626.382, Florida Statutes, is amended
783	to read:
784	626.382  Continuation, expiration of license; insurance
785	agencies.--The license of any insurance agency shall be issued
786	for a period of 3 years, subject to the payment of the fees
787	prescribed in s. 624.501, and shall continue in force until
788	canceled, suspended, revoked, or otherwise terminated. A license
789	may be renewed by submitting a renewal request to the department
790	on a form adopted by department rule.
791	Section 17.  Subsection (3) of section 626.451, Florida
792	Statutes, is amended to read:
793	626.451  Appointment of agent or other representative.--
794	(3)  By authorizing the effectuation of the appointment of
795	an agent, adjuster, service representative, customer
796	representative, or managing general agent the appointing entity
797	is thereby certifying to the department that it is willing to be
798	bound by the acts of the agent, adjuster, service
799	representative, customer representative, or managing general
800	agent, within the scope of the licensee's employment or
801	appointment.
802	Section 18.  Section 626.536, Florida Statutes, is amended
803	to read:
804	626.536  Reporting of actions.--Each An agent and insurance
805	agency shall submit to the department, within 30 days after the
806	final disposition of any administrative action taken against the
807	agent by a governmental agency in this or any other state or
808	jurisdiction relating to the business of insurance, the sale of
809	securities, or activity involving fraud, dishonesty,
810	trustworthiness, or breach of a fiduciary duty, a copy of the
811	order, consent to order, or other relevant legal documents. The
812	department may adopt rules implementing the provisions of this
813	section.
814	Section 19.  Subsections (1) and (3) of section 626.561,
815	Florida Statutes, are amended to read:
816	626.561  Reporting and accounting for funds.--
817	(1)  All premiums, return premiums, or other funds
818	belonging to insurers or others received by an agent, insurance
819	agency, customer representative, or adjuster in transactions
820	under the his or her license are trust funds received by the
821	licensee in a fiduciary capacity. An agent or insurance agency
822	shall keep the funds belonging to each insurer for which an
823	agent he or she is not appointed, other than a surplus lines
824	insurer, in a separate account so as to allow the department or
825	office to properly audit such funds. The licensee in the
826	applicable regular course of business shall account for and pay
827	the same to the insurer, insured, or other person entitled
828	thereto.
829	(3)  Any agent, insurance agency, customer representative,
830	or adjuster who, not being lawfully entitled thereto, either
831	temporarily or permanently diverts or misappropriates such funds
832	or any portion thereof or deprives the other person of a benefit
833	therefrom commits the offense specified below:
834	(a)  If the funds diverted or misappropriated are $300 or
835	less, a misdemeanor of the first degree, punishable as provided
836	in s. 775.082 or s. 775.083.
837	(b)  If the funds diverted or misappropriated are more than
838	$300, but less than $20,000, a felony of the third degree,
839	punishable as provided in s. 775.082, s. 775.083, or s. 775.084.
840	(c)  If the funds diverted or misappropriated are $20,000
841	or more, but less than $100,000, a felony of the second degree,
842	punishable as provided in s. 775.082, s. 775.083, or s. 775.084.
843	(d)  If the funds diverted or misappropriated are $100,000
844	or more, a felony of the first degree, punishable as provided in
845	s. 775.082, s. 775.083, or s. 775.084.
846	Section 20.  Subsections (1) and (2) of section 626.572,
847	Florida Statutes, are amended to read:
848	626.572  Rebating; when allowed.--
849	(1)  No insurance agency or agent shall rebate any portion
850	of a his or her commission except as follows:
851	(a)  The rebate shall be available to all insureds in the
852	same actuarial class.
853	(b)  The rebate shall be in accordance with a rebating
854	schedule filed by the agent with the insurer issuing the policy
855	to which the rebate applies.
856	(c)  The rebating schedule shall be uniformly applied in
857	that all insureds who purchase the same policy through the agent
858	for the same amount of insurance receive the same percentage
859	rebate.
860	(d)  Rebates shall not be given to an insured with respect
861	to a policy purchased from an insurer that prohibits its agents
862	from rebating commissions.
863	(e)  The rebate schedule is prominently displayed in public
864	view in the agent's place of doing business and a copy is
865	available to insureds on request at no charge.
866	(f)  The age, sex, place of residence, race, nationality,
867	ethnic origin, marital status, or occupation of the insured or
868	location of the risk is not utilized in determining the
869	percentage of the rebate or whether a rebate is available.
870	(2)  The insurance agency or agent shall maintain a copy of
871	all rebate schedules for the most recent 5 years and their
872	effective dates.
873	Section 21.  Section 626.594, Florida Statutes, is created
874	to read:
875	626.594  Disclosure of producer compensation.--
876	(1)  Whenever any insurance producer or an affiliate of the
877	producer legally receives any compensation from a customer for
878	the placement of insurance or represents the customer with
879	respect to that placement, such producer or any affiliate may
880	not accept or receive any compensation from an insurer or other
881	third party related to that placement of insurance unless the
882	producer has, prior to the customer's purchase of insurance:
883	(a)  Obtained the customer's documented acknowledgment that
884	such compensation will be received by the producer or affiliate.
885	(b)  Disclosed the amount of compensation received from the
886	insurer or other third party for that placement. If the amount
887	of compensation is not known at the time of disclosure, the
888	producer shall disclose the specific method for calculating the
889	compensation, the nature of the consideration if other than
890	monetary, and, if possible, a reasonable estimate of the amount.
891	The required disclosure must be made in a separate document
892	signed and retained by the insured that contains the heading
893	"Important Information Concerning Compensation Received By Your
894	Agent" or similar heading that clearly indicates the subject of
895	the disclosure. If insurance coverage is purchased
896	telephonically, the disclosure document need not be signed by
897	the customer but must be transmitted to the customer at the time
898	coverage is effectuated.
899
900	For purposes of this subsection, an agent placing insurance
901	coverage pursuant to s. 626.752, s. 626.793, or s. 626.837 shall
902	not be considered to be representing the customer with respect
903	to that placement.
904	(2)  A person shall not be considered a customer for
905	purposes of this section if the person is:
906	(a)  A participant or beneficiary of an employee benefit
907	plan and individual coverage is not solicited by the producer;
908	(b)  Covered by a group or blanket insurance policy or
909	group annuity contract sold, solicited, or negotiated by the
910	insurance producer or affiliate if the producer did not solicit
911	the purchase of insurance by individual insureds; or
912	(c)  An authorized or eligible insurer.
913	(3)  The disclosures provided for by this section need not
914	be made by a person licensed as an insurance producer who acts
915	only as an intermediary between an insurer and the customer's
916	producer, including, but not limited to, a managing general
917	agent, a sales manager, or wholesale broker.
918	(4)  For purposes of this section, the term:
919	(a)  "Affiliate" means a person that controls, is
920	controlled by, or is under common control with the producer or
921	that has a contractual relationship with the producer relating
922	to the placement of insurance.
923	(b)  "Compensation received from an insurer or other third
924	party" means payments, commissions, fees, awards, overrides,
925	bonuses, contingent commissions, loans, stock options, gifts,
926	prizes, or any other form of valuable consideration, whether or
927	not payable pursuant to a written agreement. The term also
928	includes any agreement to reinsure business in a manner that in
929	any way benefits the producer or affiliate or any other
930	agreement to act in a manner that provides a financial benefit
931	to the producer.
932	(c)  "Compensation from the customer" does not include any
933	fee or similar expense as provided in s. 626.7451(11), s.
934	627.7295(5)(a), s. 627.7295(5)(b), or s. 627.744(4).
935	(d)  "Documented acknowledgement" means the customer's
936	written consent obtained prior to the customer's purchase of
937	insurance. In the case of a purchase over the telephone or by
938	electronic means for which written consent cannot reasonably be
939	obtained, consent documented by the producer shall be
940	acceptable.
941	(e)  "Producer" means any person required to be licensed
942	under the insurance code to sell, solicit, or negotiate
943	insurance.
944	Section 22.  Subsection (1) of section 626.601, Florida
945	Statutes, is amended to read:
946	626.601  Improper conduct; inquiry; fingerprinting.--
947	(1)  The department or office may, upon its own motion or
948	upon a written complaint signed by any interested person and
949	filed with the department or office, inquire into any alleged
950	improper conduct of any licensed insurance agency, agent,
951	adjuster, service representative, managing general agent,
952	customer representative, title insurance agent, title insurance
953	agency, continuing education course provider, instructor, school
954	official, or monitor group under this code. The department or
955	office may thereafter initiate an investigation of any such
956	licensee if it has reasonable cause to believe that the licensee
957	has violated any provision of the insurance code. During the
958	course of its investigation, the department or office shall
959	contact the licensee being investigated unless it determines
960	that contacting such person could jeopardize the successful
961	completion of the investigation or cause injury to the public.
962	Section 23.  Section 626.602, Florida Statutes, is created
963	to read:
964	626.602  Insurance agency names; disapproval.--The
965	department may disapprove the use of any true or fictitious
966	name, other than the bona fide natural name of an individual, by
967	any insurance agency on any of the following grounds:
968	(1)  The name is an interference with or is too similar to
969	a name already filed and in use by another agency or insurer;
970	(2)  The use of the name may mislead the public in any
971	respect; or
972	(3)  The name states or implies that the agency is an
973	insurer, motor club, hospital service plan, state or federal
974	agency, charitable organization, or entity that primarily
975	provides advice and counsel rather than sells or solicits
976	insurance, or is entitled to engage in insurance activities not
977	permitted under licenses held or applied for. This provision
978	does not prohibit the use of the word "state" or "states" in the
979	name of the agency and the use of such words in the name of the
980	agency does not imply that the agency is a state agency.
981	Section 24.  Section 626.6115, Florida Statutes, is amended
982	to read:
983	626.6115  Grounds for compulsory refusal, suspension, or
984	revocation of insurance agency license.--The department shall
985	deny, suspend, revoke, or refuse to continue the license of any
986	insurance agency if it finds, as to any insurance agency or as
987	to any majority owner, partner, manager, director, officer, or
988	other person who manages or controls such agency, that any
989	either one or both of the following applicable grounds exist:
990	(1)  Lack by the agency of one or more of the
991	qualifications for the license as specified in this code.
992	(2)  Material misstatement, misrepresentation, or fraud in
993	obtaining the license or in attempting to obtain the license.
994	(3)  Denial, suspension, or revocation of a license to
995	practice or conduct any regulated profession, business, or
996	vocation relating to the business of insurance by this state,
997	any other state, any nation, any possession or district of the
998	United States, any court, or any lawful agency thereof. However,
999	the existence of grounds for administrative action against a
1000	licensed agency does not constitute grounds for action against
1001	any other licensed agency, including an agency that owns, is
1002	under common ownership with, or is owned by, in whole or in
1003	part, the agency for which grounds for administrative action
1004	exist.
1005	Section 25.  Subsection (6) of section 626.621, Florida
1006	Statutes, is amended to read:
1007	626.621  Grounds for discretionary refusal, suspension, or
1008	revocation of agent's, adjuster's, customer representative's,
1009	service representative's, or managing general agent's license or
1010	appointment.--The department may, in its discretion, deny an
1011	application for, suspend, revoke, or refuse to renew or continue
1012	the license or appointment of any applicant, agent, adjuster,
1013	customer representative, service representative, or managing
1014	general agent, and it may suspend or revoke the eligibility to
1015	hold a license or appointment of any such person, if it finds
1016	that as to the applicant, licensee, or appointee any one or more
1017	of the following applicable grounds exist under circumstances
1018	for which such denial, suspension, revocation, or refusal is not
1019	mandatory under s. 626.611:
1020	(6)  In the conduct of business under the license or
1021	appointment, engaging in unfair methods of competition or in
1022	unfair or deceptive acts or practices, as prohibited under part
1023	IX of this chapter, or having otherwise shown himself or herself
1024	to be a source of injury or loss to the public or detrimental to
1025	the public interest.
1026	Section 26.  Subsection (6) is added to section 626.6215,
1027	Florida Statutes, to read:
1028	626.6215  Grounds for discretionary refusal, suspension, or
1029	revocation of insurance agency license.--The department may, in
1030	its discretion, deny, suspend, revoke, or refuse to continue the
1031	license of any insurance agency if it finds, as to any insurance
1032	agency or as to any majority owner, partner, manager, director,
1033	officer, or other person who manages or controls such insurance
1034	agency, that any one or more of the following applicable grounds
1035	exist:
1036	(6)  Failure to take corrective action or report a
1037	violation to the department within 30 days after an individual
1038	licensee's violation is known or should have been known by one
1039	or more of the partners, officers, or managers acting on behalf
1040	of the agency. However, the existence of grounds for
1041	administrative action against a licensed agency does not
1042	constitute grounds for action against any other licensed agency,
1043	including an agency that owns, is under common ownership with,
1044	or is owned by, in whole or in part, the agency for which
1045	grounds for administrative action exist.
1046	Section 27.  Subsections (1) and (2) of section 626.641,
1047	Florida Statutes, are amended to read:
1048	626.641  Duration of suspension or revocation.--
1049	(1)  The department shall, in its order suspending a
1050	license or appointment or in its order suspending the
1051	eligibility of a person to hold or apply for such license or
1052	appointment, specify the period during which the suspension is
1053	to be in effect; but such period shall not exceed 2 years. The
1054	license, appointment, or eligibility shall remain suspended
1055	during the period so specified, subject, however, to any
1056	rescission or modification of the order by the department, or
1057	modification or reversal thereof by the court, prior to
1058	expiration of the suspension period. A license, appointment, or
1059	eligibility which has been suspended shall not be reinstated
1060	except upon request for such reinstatement and, in the case of a
1061	second suspension, completion of continuing education courses
1062	prescribed and approved by the department or office; but the
1063	department shall not grant such reinstatement if it finds that
1064	the circumstance or circumstances for which the license,
1065	appointment, or eligibility was suspended still exist or are
1066	likely to recur. In addition, a request for reinstatement is
1067	subject to denial and subject to a waiting period prior to
1068	approval on the same grounds that apply to applications for
1069	licensure pursuant to ss. 626.207, 626.611, and 626.621.
1070	(2)  No person or appointee under any license or
1071	appointment revoked by the department, nor any person whose
1072	eligibility to hold same has been revoked by the department,
1073	shall have the right to apply for another license or appointment
1074	under this code within 2 years from the effective date of such
1075	revocation or, if judicial review of such revocation is sought,
1076	within 2 years from the date of final court order or decree
1077	affirming the revocation. An applicant for another license or
1078	appointment pursuant to this subsection must apply and qualify
1079	for licensure and appointment in the same manner as a first-time
1080	applicant, and the application may be denied on the same grounds
1081	that apply to first-time applicants for licensure pursuant to
1082	ss. 626.207, 626.611, and 626.621. In addition, the department
1083	shall not, however, grant a new license or appointment or
1084	reinstate eligibility to hold such license or appointment if it
1085	finds that the circumstance or circumstances for which the
1086	eligibility was revoked or for which the previous license or
1087	appointment was revoked still exist or are likely to recur; if
1088	an individual's license as agent or customer representative or
1089	eligibility to hold same has been revoked upon the ground
1090	specified in s. 626.611(12), the department shall refuse to
1091	grant or issue any new license or appointment so applied for.
1092	Section 28.  Subsection (1) of section 626.7351, Florida
1093	Statutes, is amended to read:
1094	626.7351  Qualifications for customer representative's
1095	license.--The department shall not grant or issue a license as
1096	customer representative to any individual found by it to be
1097	untrustworthy or incompetent, or who does not meet each of the
1098	following qualifications:
1099	(1)  The applicant is a natural person who is at least 18
1100	years of age.
1101	Section 29.  Subsection (2) of section 626.7355, Florida
1102	Statutes, is amended to read:
1103	626.7355  Temporary license as customer representative
1104	pending examination.--
1105	(2)  There must be no more than one temporary customer
1106	representative licensee in the general lines agency location
1107	where the temporary licensee is housed and the temporary
1108	licensee shall be housed wholly and completely within the actual
1109	confines of the office of the agent or agency whom he or she
1110	represents. Such agency must be in compliance with the
1111	provisions of s. 626.592, commonly referred to as the Primary
1112	Agent Law, for the most recent reporting period. No such
1113	temporary licensee may be employed from any location except
1114	where his or her designated supervising general lines agent
1115	spends his or her full time. No general lines agency location
1116	may employ more than two temporary customer representative
1117	licensees in one calendar year.
1118	Section 30.  Subsection (1) of section 626.747, Florida
1119	Statutes, is amended to read:
1120	626.747  Branch agencies.--
1121	(1)  Each branch place of business established by an agent
1122	or agency, firm, corporation, or association shall be in the
1123	active full-time charge of a licensed general lines agent who is
1124	appointed to represent one or more insurers. Any agent or
1125	agency, firm, corporation, or association which has established
1126	one or more branch places of business shall be required to have
1127	at least one licensed general lines agent or life or health
1128	agent who is appointed to represent one or more insurers at each
1129	location of the agency, including its headquarters location.
1130	Section 31.  Paragraph (d) of subsection (2) of section
1131	626.8411, Florida Statutes, is amended to read:
1132	626.8411  Application of Florida Insurance Code provisions
1133	to title insurance agents or agencies.--
1134	(2)  The following provisions of part I do not apply to
1135	title insurance agents or title insurance agencies:
1136	(d)  Section 626.592, relating to primary agents.
1137	Section 32.  Section 626.854, Florida Statutes, is amended
1138	to read:
1139	626.854  "Public adjuster" defined; prohibitions;
1140	requirements.--The Legislature finds that it is necessary for
1141	the protection of the public to regulate public insurance
1142	adjusters and to prevent the unauthorized practice of law.
1143	(1)  DEFINITIONS.--For purposes of this section, the term:
1144	(a)1.  A "Public adjuster" means is any person, except a
1145	duly licensed attorney at law as hereinafter in s. 626.860
1146	provided, who, for money, commission, or any other thing of
1147	value, prepares, completes, or files an insurance claim form for
1148	an insured or third-party claimant or who, for money,
1149	commission, or any other thing of value, acts or aids in any
1150	manner on behalf of an insured or third-party claimant in
1151	negotiating for or effecting the settlement of a claim or claims
1152	for loss or damage covered by an insurance contract or who
1153	advertises for employment as an adjuster of such claims, and
1154	also includes any person who, for money, commission, or any
1155	other thing of value, solicits, investigates, or adjusts such
1156	claims on behalf of any such public adjuster.
1157	2.(2)  This definition does not apply to:
1158	a.(a)  A licensed health care provider or employee thereof
1159	who prepares or files a health insurance claim form on behalf of
1160	a patient.
1161	b.(b)  A person who files a health claim on behalf of
1162	another and does so without compensation.
1163	(b)  "Insured" includes only the policyholder and any
1164	beneficiaries named or similarly identified in the policy.
1165	(2)  PROHIBITIONS.--
1166	(a)(3)  A public adjuster may not give legal advice. A
1167	public adjuster may not act on behalf of or aid any person in
1168	negotiating or settling a claim relating to bodily injury,
1169	death, or noneconomic damages, and may not receive a fee under
1170	the contract of representation for any unfair claims practices
1171	violations, for tort claims, for statutory interest, costs, and
1172	attorneys fees, or for extra-contractual damages unrelated to
1173	the damages under the policy.
1174	(b)  A public adjuster may not restrict or prevent an
1175	insurer, company or independent adjuster, attorney,
1176	investigator, or any other person acting on behalf of the
1177	insurer from having reasonable access at reasonable times to an
1178	insured or claimant or to the insured property which is the
1179	subject of a claim.
1180	(3)  LIMITS ON COMMISSIONS.--
1181	(a)  As to any one loss or occurrence, a public adjuster
1182	may not charge, agree to, or accept as compensation or
1183	reimbursement any payment, commission, fee, or other thing of
1184	value equal to or greater than 10 percent of any insurance
1185	settlement or proceeds. The department may, however, adopt a
1186	rule specifying higher limits on public adjuster commissions
1187	than the 10 percent limit specified in this paragraph.
1188	(b)  Prior to settlement of a claim, a public adjuster may
1189	not require, demand, or accept any fee, retainer, compensation,
1190	deposit, or other thing of value.
1191	(4)  CONTRACT REQUIREMENTS.--
1192	(a)  A public adjuster shall provide a true and complete
1193	copy of any contracts with an insured or claimant, including any
1194	revised or supplemental contracts, to the insurer and its
1195	representatives handling the claim immediately upon providing
1196	notice of representation to the insurer and throughout the
1197	claims handling process.
1198	(b)  A public adjuster shall ensure that all contracts for
1199	his or her services are in writing and comply with the following
1200	requirements:
1201	1.  The contract shall legibly state the full name of the
1202	public adjuster signing the contract, as specified in the
1203	department records.
1204	2.  The contract shall be signed by the public adjuster who
1205	solicited the contract. If the public adjuster is licensed by
1206	the department as an emergency public adjuster, the contract
1207	shall also show the emergency public adjuster's:
1208	a.  Permanent home address and home telephone number.
1209	b.  Permanent home state business address and telephone
1210	number.
1211	c.  Florida department license number.
1212	3.  The contract shall show:
1213	a.  The insured's full name and street address.
1214	b.  The address of the loss.
1215	c.  A brief description of the loss.
1216	d.  The name of the insurer and, if available, the policy
1217	number.
1218	4.  The contract shall be signed by the insured or claimant
1219	and shall show the date on which the insured or claimant signed
1220	the contract and the county in which it was executed or signed.
1221	5.a.  The contract shall show the full amount of
1222	compensation to the public adjuster.
1223	b.  If the compensation is based on a share of the
1224	insurance settlement, the contract shall show the exact
1225	percentage.
1226	c.  The contract shall specify any costs to be reimbursed
1227	to the public adjuster out of the proceeds, including
1228	specification by type and an estimate of the dollar amount.
1229	(c)  Compensation provisions in a public adjuster's
1230	contract shall not be redacted in any copy provided to an
1231	insurer. Any such redaction constitutes an omission of material
1232	fact in violation of s. 626.9541(1)(e)2.
1233	(5)  GENERAL ETHICAL REQUIREMENTS.--Public adjusters shall
1234	comply with  the following requirements:
1235	(a)  A public adjuster shall not undertake the adjustment
1236	of any claim concerning whether he or she is not currently
1237	competent and knowledgeable as to the terms and conditions of
1238	the insurance coverage or which otherwise exceeds his or her
1239	expertise.
1240	(b)  A person may not represent:
1241	1.  As a public adjuster, any person or entity whose claim
1242	the public adjuster had previously adjusted while acting as an
1243	adjuster representing any insurer or independent adjusting firm.
1244	2.  As a company or independent adjuster, himself or
1245	herself, or any insurer or independent adjusting firm, against
1246	any person or entity that he or she previously represented as a
1247	public adjuster.
1248	(c)1.  A public adjuster may not represent or imply to any
1249	client or potential client that insurers, company adjusters, or
1250	independent adjusters routinely attempt to, or do in fact,
1251	deprive claimants of their full rights under an insurance
1252	policy.
1253	2.  An insurer, independent adjuster, or company adjuster
1254	may not represent or imply to any claimant that engaging a
1255	public adjuster will delay or have other adverse effect upon the
1256	settlement of a claim.
1257	(d)1.  A public adjuster, while so licensed in the
1258	department's records, may not represent or act as a company
1259	adjuster, independent adjuster, or general lines agent.
1260	2.  An independent adjuster, company adjuster, or general
1261	lines agent, while so licensed in the department's records, may
1262	not represent or act as a public adjuster.
1263	(e)1.  A public adjuster's contract with a client shall be
1264	revocable or cancelable by the insured or claimant, without
1265	penalty or obligation, for at least 14 days after the day the
1266	contract is entered into.
1267	2.  The public adjuster shall disclose in writing to the
1268	insured or claimant that the insured or claimant has the right
1269	to cancel with prompt notice within the revocation period.
1270	3.  If the insured or claimant elects to cancel the
1271	contract, the insured or claimant shall provide prompt notice to
1272	the public adjuster.
1273	4.  Nothing in this paragraph shall be construed to prevent
1274	an insured or claimant from pursuing any civil remedy after the
1275	expiration of the revocation period.
1276	(f)1.  A public adjuster shall not enter into a contract or
1277	accept a power of attorney which vests in the public adjuster
1278	the effective authority to choose the persons who are to perform
1279	repair work.
1280	2.  A public adjuster shall ensure that if a contractor,
1281	architect, engineer, or other licensed professional is used in
1282	formulating estimates or otherwise participates in the
1283	adjustment of a claim, the professional must be licensed by the
1284	Department of Business and Professional Regulation.
1285	(g)  A public adjuster shall ensure that all contracts for
1286	the public adjuster's services are in writing and set forth all
1287	terms and conditions of the engagement.
1288	(6)  TOTAL LOSS CLAIMS.--A public adjuster may not
1289	knowingly enter into a contract to adjust a residential property
1290	claim subsequent to an insurer declaring the property a total
1291	loss, or when the property is an obvious total loss, unless the
1292	services to be provided by the public adjuster can reasonably be
1293	expected to result in the insured or claimant obtaining an
1294	insurance settlement, net of the public adjuster's compensation,
1295	in excess of what the insured or claimant would have obtained
1296	without the services of the public adjuster.
1297	(4)  For purposes of this section, the term "insured"
1298	includes only the policyholder and any beneficiaries named or
1299	similarly identified in the policy.
1300	Section 33.  Paragraph (l) of subsection (1) of section
1301	626.9541, Florida Statutes, is amended, and paragraph (cc) is
1302	added to said subsection, to read:
1303	626.9541  Unfair methods of competition and unfair or
1304	deceptive acts or practices defined.--
1305	(1)  UNFAIR METHODS OF COMPETITION AND UNFAIR OR DECEPTIVE
1306	ACTS.--The following are defined as unfair methods of
1307	competition and unfair or deceptive acts or practices:
1308	(l)  Twisting.--Knowingly making any misleading
1309	representations or incomplete or fraudulent comparisons or
1310	fraudulent material omissions of or with respect to any
1311	insurance policies, including those of the National Flood
1312	Insurance Program or its successors, or insurers for the purpose
1313	of inducing, or tending to induce, any person to lapse, forfeit,
1314	surrender, terminate, retain, pledge, assign, borrow on, or
1315	convert any insurance policy, including those of the National
1316	Flood Insurance Program or its successors, or to take out a
1317	policy of insurance in another insurer. It is a violation of
1318	this paragraph for any individual or entity to receive direct
1319	payment from the National Flood Insurance Program, the Federal
1320	Emergency Management Agency, or any write-your-own flood carrier
1321	of any unearned premium due a policyholder except an individual
1322	who is a relative of any such policyholder.
1323	(cc)  Representing that a contract is an insurance or
1324	reinsurance contract and transfers risk when the primary purpose
1325	and effect of the contract is other than transfer of risk.
1326	Section 34.  Subsection (2) of section 648.50, Florida
1327	Statutes, is amended to read:
1328	648.50  Effect of suspension, revocation upon associated
1329	licenses and licensees.--
1330	(2)  In case of the suspension or revocation of the license
1331	or appointment, or the eligibility to hold a license or
1332	appointment, of any bail bond agent, the license, appointment,
1333	or eligibility of any and all bail bond agents who are members
1334	of a bail bond agency, whether incorporated or unincorporated,
1335	and any and all temporary bail bond agents or runners employed
1336	by such bail bond agency, who knowingly are parties to the act
1337	which formed the ground for the suspension or revocation may
1338	likewise be suspended or revoked.
1339	Section 35.  Section 626.592, Florida Statutes, is
1340	repealed.
1341	Section 36.  This act shall take effect October 1, 2005.

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