| 1 | The State Administration Appropriations Committee recommends the |
| 2 | following: |
| 3 |
|
| 4 | Council/Committee Substitute |
| 5 | Remove the entire bill and insert: |
| 6 | A bill to be entitled |
| 7 | An act relating to insurance agents; amending s. 626.171, |
| 8 | F.S.; providing additional requirements for applications |
| 9 | for certain licenses; requiring applicants to submit |
| 10 | fingerprints and pay a processing fee; providing for |
| 11 | fingerprints to be taken by a designated examination |
| 12 | center; requiring the Department of Financial Services to |
| 13 | require designated examination centers to have |
| 14 | fingerprinting equipment and take fingerprints; |
| 15 | prohibiting the department from approving licensure |
| 16 | applications without submitted fingerprints; amending s. |
| 17 | 626.211, F.S.; deleting a prohibition against the |
| 18 | department denying, delaying, or withholding approval of |
| 19 | applications lacking a criminal history report; revising |
| 20 | circumstances under which the department must notify an |
| 21 | applicant about examinations; amending s. 626.221, F.S.; |
| 22 | expanding the authorized adjuster designations for |
| 23 | exemptions from adjuster license examinations; amending s. |
| 24 | 626.231, F.S.; providing authorization and procedures for |
| 25 | applying on the department's Internet website to take a |
| 26 | licensure examination prior to applying for licensure; |
| 27 | specifying required application information; requiring an |
| 28 | application disclosure statement; requiring payment of an |
| 29 | examination fee with an application; amending s. 626.241, |
| 30 | F.S.; providing for application of certain examination |
| 31 | provisions to certain persons; creating s. 626.2415, F.S.; |
| 32 | requiring the department to annually prepare, publicly |
| 33 | announce, and publish reports of certain examination |
| 34 | statistical information; providing report requirements; |
| 35 | authorizing the department to provide certain contracted |
| 36 | testing service providers with certain demographic |
| 37 | application information under certain circumstances; |
| 38 | amending s. 626.251, F.S.; requiring the department to |
| 39 | provide certain information to examination applicants; |
| 40 | amending s. 626.261, F.S.; specifying required conduct for |
| 41 | examination applicants; amending s. 626.281, F.S.; |
| 42 | applying reexamination provisions to examination |
| 43 | applicants; amending s. 626.291, F.S.; requiring the |
| 44 | department to issue a license for certain applicants after |
| 45 | the department approves the application; specifying a |
| 46 | period of validity of a passing examination grade; |
| 47 | prohibiting the department from issuing a license based on |
| 48 | an examination taken more than 1 year prior to filing an |
| 49 | application; providing appropriations; authorizing |
| 50 | additional positions; providing effective dates. |
| 51 |
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| 52 | Be It Enacted by the Legislature of the State of Florida: |
| 53 |
|
| 54 | Section 1. Effective January 1, 2007, subsections (2) and |
| 55 | (4) of section 626.171, Florida Statutes, are amended to read: |
| 56 | 626.171 Application for license as an agent, customer |
| 57 | representative, adjuster, service representative, managing |
| 58 | general agent, or reinsurance intermediary.-- |
| 59 | (2) In the application, the applicant shall set forth: |
| 60 | (a) His or her full name, age, social security number, |
| 61 | residence address, business address, and mailing address. |
| 62 | (b) Proof that he or she has completed or is in the |
| 63 | process of completing any required prelicensing course. |
| 64 | (c) Whether he or she has been refused or has voluntarily |
| 65 | surrendered or has had suspended or revoked a license to solicit |
| 66 | insurance by the department or by the supervising officials of |
| 67 | any state. |
| 68 | (d) Whether any insurer or any managing general agent |
| 69 | claims the applicant is indebted under any agency contract or |
| 70 | otherwise and, if so, the name of the claimant, the nature of |
| 71 | the claim, and the applicant's defense thereto, if any. |
| 72 | (e) Proof that the applicant meets the requirements for |
| 73 | the type of license for which he or she is applying. |
| 74 | (f) The applicant's gender (male or female). |
| 75 | (g) The applicant's native language. |
| 76 | (h) The highest level of education achieved by the |
| 77 | applicant. |
| 78 | (i) The applicant's race or ethnicity (African American, |
| 79 | white, American Indian, Asian, Hispanic, or other). |
| 80 | (j)(f) Such other or additional information as the |
| 81 | department may deem proper to enable it to determine the |
| 82 | character, experience, ability, and other qualifications of the |
| 83 | applicant to hold himself or herself out to the public as an |
| 84 | insurance representative. |
| 85 |
|
| 86 | However, the application must contain a statement that an |
| 87 | applicant is not required to disclose his or her race or |
| 88 | ethnicity, gender, or native language, that he or she will not |
| 89 | be penalized for not doing so, and that the department will use |
| 90 | this information exclusively for research and statistical |
| 91 | purposes and to improve the quality and fairness of the |
| 92 | examinations. |
| 93 | (4) An applicant application for a license as an agent, |
| 94 | customer representative, adjuster, service representative, |
| 95 | managing general agent, or reinsurance intermediary must submit |
| 96 | be accompanied by a set of the individual applicant's |
| 97 | fingerprints, or, if the applicant is not an individual, by a |
| 98 | set of the fingerprints of the sole proprietor, majority owner, |
| 99 | partners, officers, and directors, to the department and must |
| 100 | pay on a form adopted by rule of the department and accompanied |
| 101 | by the fingerprint processing fee set forth in s. 624.501. |
| 102 | Fingerprints shall be used to investigate the applicant's |
| 103 | qualifications pursuant to s. 626.201. The fingerprints shall be |
| 104 | taken by a law enforcement agency, designated examination |
| 105 | center, or other department-approved entity. The department |
| 106 | shall require all designated examination centers to have |
| 107 | fingerprinting equipment and to take fingerprints from any |
| 108 | applicant or prospective applicant who pays the applicable fee. |
| 109 | The department may not approve an application for licensure as |
| 110 | an agent, customer service representative, adjuster, service |
| 111 | representative, managing general agent, or reinsurance |
| 112 | intermediary if fingerprints have not been submitted. |
| 113 | Section 2. Effective January 1, 2007, subsections (1) and |
| 114 | (2) of section 626.211, Florida Statutes, are amended to read: |
| 115 | 626.211 Approval, disapproval of application.-- |
| 116 | (1) If upon the basis of a completed application for |
| 117 | license and such further inquiry or investigation as the |
| 118 | department may make concerning an applicant the department is |
| 119 | satisfied that, subject to any examination required to be taken |
| 120 | and passed by the applicant for a license, the applicant is |
| 121 | qualified for the license applied for and that all pertinent |
| 122 | fees have been paid, it shall approve the application. The |
| 123 | department shall not deny, delay, or withhold approval of an |
| 124 | application due to the fact that it has not received a criminal |
| 125 | history report based on the applicant's fingerprints. |
| 126 | (2) Upon approval of an applicant for license as agent, |
| 127 | customer representative, or adjuster who is subject to written |
| 128 | examination, the department shall notify the applicant when and |
| 129 | where he or she may take the required examination unless the |
| 130 | applicant has taken and passed the examination within the 1-year |
| 131 | period prior to the date of filing the application. |
| 132 | Section 3. Paragraph (k) of subsection (2) of section |
| 133 | 626.221, Florida Statutes, is amended to read: |
| 134 | 626.221 Examination requirement; exemptions.-- |
| 135 | (2) However, no such examination shall be necessary in any |
| 136 | of the following cases: |
| 137 | (k) An applicant for license as an adjuster who has the |
| 138 | designation of Accredited Claims Adjuster (ACA) from a |
| 139 | regionally accredited postsecondary institution in this state, |
| 140 | or the designation of Professional Claims Adjuster (PCA) from |
| 141 | the Professional Career Institute, or Certified Claims Adjuster |
| 142 | (CCA) from the Association of Property and Casualty Claims |
| 143 | Professionals whose curriculum has been approved by the |
| 144 | department and whose curriculum includes comprehensive analysis |
| 145 | of basic property and casualty lines of insurance and testing at |
| 146 | least equal to that of standard department testing for the all- |
| 147 | lines adjuster license. The department shall adopt rules |
| 148 | establishing standards for the approval of curriculum. |
| 149 | Section 4. Effective January 1, 2007, section 626.231, |
| 150 | Florida Statutes, is amended to read: |
| 151 | 626.231 Eligibility; application for examination.-- |
| 152 | (1) No person shall be permitted to take an examination |
| 153 | for license until his or her application for examination or |
| 154 | application for the license has been approved and the required |
| 155 | fees have been received by the department or a person designated |
| 156 | by the department to administer the examination. |
| 157 | (2) A person required to take an examination for a license |
| 158 | may be permitted to take an examination prior to submitting an |
| 159 | application for licensure pursuant to s. 626.171 by submitting |
| 160 | an application for examination through the department's Internet |
| 161 | website. In the application, the applicant shall set forth: |
| 162 | (a) His or her full name, age, social security number, |
| 163 | residence address, business address, and mailing address. |
| 164 | (b) The type of license that the applicant intends to |
| 165 | apply for. |
| 166 | (c) The name of any required prelicensing course he or she |
| 167 | has completed or is in the process of completing. |
| 168 | (d) The method by which the applicant intends to qualify |
| 169 | for the type of license if other than by completing a |
| 170 | prelicensing course. |
| 171 | (e) The applicant's gender (male or female). |
| 172 | (f) The applicant's native language. |
| 173 | (g) The highest level of education achieved by the |
| 174 | applicant. |
| 175 | (h) The applicant's race or ethnicity (African American, |
| 176 | white, American Indian, Asian, Hispanic, or other). |
| 177 |
|
| 178 | However, the application must contain a statement that an |
| 179 | applicant is not required to disclose his or her race or |
| 180 | ethnicity, gender, or native language, that he or she will not |
| 181 | be penalized for not doing so, and that the department will use |
| 182 | this information exclusively for research and statistical |
| 183 | purposes and to improve the quality and fairness of the |
| 184 | examinations. |
| 185 | (3) Each application shall be accompanied by payment of |
| 186 | the applicable examination fee. |
| 187 | Section 5. Subsection (9) is added to section 626.241, |
| 188 | Florida Statutes, to read: |
| 189 | 626.241 Scope of examination.-- |
| 190 | (9) This section applies to any person who submits an |
| 191 | application for license and to any person who submits an |
| 192 | application for examination prior to filing an application for |
| 193 | license. |
| 194 | Section 6. Section 626.2415, Florida Statutes, is created |
| 195 | to read: |
| 196 | 626.2415 Annual report of results of life insurance |
| 197 | examinations.-- |
| 198 | (1) No later than May 1 of each year, the department or a |
| 199 | person designated by the department shall prepare, publicly |
| 200 | announce, and publish a report that summarizes statistical |
| 201 | information relating to life insurance agent examinations |
| 202 | administered during the preceding calendar year. Each report |
| 203 | shall include the following information, for all examinees |
| 204 | combined and separately by race or ethnicity, gender, race or |
| 205 | ethnicity within gender, education level, and native language: |
| 206 | (a) The total number of examinees. |
| 207 | (b) The percentage and number of examinees who passed the |
| 208 | examination. |
| 209 | (c) The mean scaled scores on the examination. |
| 210 | (d) Standard deviation of scaled scores on the |
| 211 | examination. |
| 212 | (2) No later than May 1 of each year, the department or a |
| 213 | person designated by the department shall prepare and make |
| 214 | available upon request a report of summary statistical |
| 215 | information relating to each operational item on each life |
| 216 | insurance test form administered during the preceding calendar |
| 217 | year. The report shall show, for each operational item, for all |
| 218 | examinees combined and separately for African-American |
| 219 | examinees, white examinees, American Indian examinees, Asian |
| 220 | examinees, Hispanic examinees, and other examinees, the correct- |
| 221 | answer rates and correlations. |
| 222 | (3) The department may provide a testing service provider, |
| 223 | under contract with the department, demographic information |
| 224 | received by the department on applications relating to |
| 225 | examinations taken to qualify for an insurance agent license if |
| 226 | the department requires the provider to review and analyze |
| 227 | examination results in conjunction with the race or ethnicity, |
| 228 | gender, education level, and native language of examinees. |
| 229 | Section 7. Subsection (1) of section 626.251, Florida |
| 230 | Statutes, is amended to read: |
| 231 | 626.251 Time and place of examination; notice.-- |
| 232 | (1) The department or a person designated by the |
| 233 | department shall mail written notice of the time and place of |
| 234 | the examination to each applicant for examination and each |
| 235 | applicant for license required to take an examination who will |
| 236 | be eligible to take the examination as of the examination date. |
| 237 | The notice shall be so mailed, postage prepaid, and addressed to |
| 238 | the applicant at his or her address shown on the application for |
| 239 | license or at such other address as requested by the applicant |
| 240 | in writing filed with the department prior to the mailing of the |
| 241 | notice. Notice shall be deemed given when so mailed. |
| 242 | Section 8. Effective January 1, 2007, subsection (1) of |
| 243 | section 626.261, Florida Statutes, is amended to read: |
| 244 | 626.261 Conduct of examination.-- |
| 245 | (1) The applicant for license or the applicant for |
| 246 | examination shall appear in person and personally take the |
| 247 | examination for license at the time and place specified by the |
| 248 | department or by a person designated by the department. |
| 249 | Section 9. Subsection (1) of section 626.281, Florida |
| 250 | Statutes, is amended to read: |
| 251 | 626.281 Reexamination.-- |
| 252 | (1) Any applicant for license or applicant for examination |
| 253 | who has either: |
| 254 | (a) Taken an examination and failed to make a passing |
| 255 | grade, or |
| 256 | (b) Failed to appear for the examination or to take or |
| 257 | complete the examination at the time and place specified in the |
| 258 | notice of the department, |
| 259 |
|
| 260 | may take additional examinations, after filing with the |
| 261 | department an application for reexamination together with |
| 262 | applicable fees. The failure of an applicant to pass an |
| 263 | examination or the failure to appear for the examination or to |
| 264 | take or complete the examination does not preclude the applicant |
| 265 | from taking subsequent examinations. |
| 266 | Section 10. Effective January 1, 2007, subsections (1) and |
| 267 | (3) of section 626.291, Florida Statutes, are amended to read: |
| 268 | 626.291 Examination results; denial, issuance of |
| 269 | license.-- |
| 270 | (1) Within 30 days after the applicant has completed any |
| 271 | examination required under s. 626.221, the department or its |
| 272 | designee shall provide a score report; and, if it finds that the |
| 273 | applicant has received a passing grade, the department shall |
| 274 | within such period notify the applicant and issue and transmit |
| 275 | the license to which such examination related. If it finds that |
| 276 | the applicant did not make a passing grade on the examination |
| 277 | for a particular license, the department or its designee shall |
| 278 | within this period provide notice to the applicant to that |
| 279 | effect and of its denial of the license. For those applicants |
| 280 | who have completed the examination and received a passing grade |
| 281 | prior to submitting the license application, the department |
| 282 | shall promptly issue the license applied for as soon as the |
| 283 | department approves the application. |
| 284 | (3) A passing grade on an examination is valid for a |
| 285 | period of 1 year. The department shall not issue a license to an |
| 286 | applicant based on an examination taken more than 1 year prior |
| 287 | to the date that an application for license is filed. The |
| 288 | department shall not deny, delay, or withhold issuance of a |
| 289 | license due to the fact that it has not received a criminal |
| 290 | history report based on the applicant's fingerprints. |
| 291 | Section 11. The sums of $158,995 in recurring funds and |
| 292 | $120,069 in nonrecurring funds are appropriated from the |
| 293 | Insurance Regulatory Trust Fund in the Department of Financial |
| 294 | Services for the 2006-2007 fiscal year for the purposes of |
| 295 | funding the provisions of this act, and three full-time |
| 296 | equivalent positions with 103,285 in associated salary rate are |
| 297 | authorized. |
| 298 | Section 12. Except as otherwise expressly provided in this |
| 299 | act, this act shall take effect July 1, 2006. |