HB 1113

1
A bill to be entitled
2An act relating to insurance agents; amending s. 626.171,
3F.S.; providing additional requirements for applications
4for certain licenses; requiring applicants to submit
5fingerprints and pay a processing fee; providing for
6fingerprints to be taken by a designated examination
7center; requiring the Department of Financial Services to
8require designated examination centers to have
9fingerprinting equipment and take fingerprints;
10prohibiting the department from approving licensure
11applications without submitted fingerprints; amending s.
12626.211, F.S.; deleting a prohibition against the
13department denying, delaying, or withholding approval of
14applications lacking a criminal history report; revising
15circumstances under which the department must notify an
16applicant about examinations; amending s. 626.221, F.S.;
17expanding the authorized adjuster designations for
18exemptions from adjuster license examinations; amending s.
19626.231, F.S.; providing authorization and procedures for
20applying on the department's Internet website to take a
21licensure examination prior to applying for licensure;
22specifying required application information; requiring an
23application disclosure statement; requiring payment of an
24examination fee with an application; amending s. 626.241,
25F.S.; providing for application of certain examination
26provisions to certain persons; creating s. 626.2415, F.S.;
27requiring the department to annually prepare, publicly
28announce, and publish reports of certain examination
29statistical information; providing report requirements;
30authorizing the department to provide certain contracted
31testing service providers with certain demographic
32application information under certain circumstances;
33amending s. 626.251, F.S.; requiring the department to
34provide certain information to examination applicants;
35amending s. 626.261, F.S.; specifying required conduct for
36examination applicants; amending s. 626.281, F.S.;
37applying reexamination provisions to examination
38applicants; amending s. 626.291, F.S.; requiring the
39department to issue a license for certain applicants after
40the department approves the application; specifying a
41period of validity of a passing examination grade;
42prohibiting the department from issuing a license based on
43an examination taken more than 1 year prior to filing an
44application; providing appropriations; authorizing
45additional positions; providing effective dates.
46
47Be It Enacted by the Legislature of the State of Florida:
48
49     Section 1.  Effective January 1, 2007, subsections (2) and
50(4) of section 626.171, Florida Statutes, are amended to read:
51     626.171  Application for license as an agent, customer
52representative, adjuster, service representative, managing
53general agent, or reinsurance intermediary.--
54     (2)  In the application, the applicant shall set forth:
55     (a)  His or her full name, age, social security number,
56residence address, business address, and mailing address.
57     (b)  Proof that he or she has completed or is in the
58process of completing any required prelicensing course.
59     (c)  Whether he or she has been refused or has voluntarily
60surrendered or has had suspended or revoked a license to solicit
61insurance by the department or by the supervising officials of
62any state.
63     (d)  Whether any insurer or any managing general agent
64claims the applicant is indebted under any agency contract or
65otherwise and, if so, the name of the claimant, the nature of
66the claim, and the applicant's defense thereto, if any.
67     (e)  Proof that the applicant meets the requirements for
68the type of license for which he or she is applying.
69     (f)  The applicant's gender (male or female).
70     (g)  The applicant's native language.
71     (h)  The highest level of education achieved by the
72applicant.
73     (i)  The applicant's race or ethnicity (African American,
74white, American Indian, Asian, Hispanic, or other).
75     (j)(f)  Such other or additional information as the
76department may deem proper to enable it to determine the
77character, experience, ability, and other qualifications of the
78applicant to hold himself or herself out to the public as an
79insurance representative.
80
81However, the application must contain a statement that an
82applicant is not required to disclose his or her race or
83ethnicity, gender, or native language, that he or she will not
84be penalized for not doing so, and that the department will use
85this information exclusively for research and statistical
86purposes and to improve the quality and fairness of the
87examinations.
88     (4)  An applicant application for a license as an agent,
89customer representative, adjuster, service representative,
90managing general agent, or reinsurance intermediary must submit
91be accompanied by a set of the individual applicant's
92fingerprints, or, if the applicant is not an individual, by a
93set of the fingerprints of the sole proprietor, majority owner,
94partners, officers, and directors, to the department and must
95pay on a form adopted by rule of the department and accompanied
96by the fingerprint processing fee set forth in s. 624.501.
97Fingerprints shall be used to investigate the applicant's
98qualifications pursuant to s. 626.201. The fingerprints shall be
99taken by a law enforcement agency, designated examination
100center, or other department-approved entity. The department
101shall require all designated examination centers to have
102fingerprinting equipment and to take fingerprints from any
103applicant or prospective applicant who pays the applicable fee.
104The department may not approve an application for licensure as
105an agent, customer service representative, adjuster, service
106representative, managing general agent, or reinsurance
107intermediary if fingerprints have not been submitted.
108     Section 2.  Effective January 1, 2007, subsections (1) and
109(2) of section 626.211, Florida Statutes, are amended to read:
110     626.211  Approval, disapproval of application.--
111     (1)  If upon the basis of a completed application for
112license and such further inquiry or investigation as the
113department may make concerning an applicant the department is
114satisfied that, subject to any examination required to be taken
115and passed by the applicant for a license, the applicant is
116qualified for the license applied for and that all pertinent
117fees have been paid, it shall approve the application. The
118department shall not deny, delay, or withhold approval of an
119application due to the fact that it has not received a criminal
120history report based on the applicant's fingerprints.
121     (2)  Upon approval of an applicant for license as agent,
122customer representative, or adjuster who is subject to written
123examination, the department shall notify the applicant when and
124where he or she may take the required examination unless the
125applicant has taken and passed the examination within the 1-year
126period prior to the date of filing the application.
127     Section 3.  Paragraph (k) of subsection (2) of section
128626.221, Florida Statutes, is amended to read:
129     626.221  Examination requirement; exemptions.--
130     (2)  However, no such examination shall be necessary in any
131of the following cases:
132     (k)  An applicant for license as an adjuster who has the
133designation of Accredited Claims Adjuster (ACA) from a
134regionally accredited postsecondary institution in this state,
135or the designation of Professional Claims Adjuster (PCA) from
136the Professional Career Institute, Professional Property
137Insurance Adjuster (PPIA) from the HurriClaim Training Academy,
138or Certified Claims Adjuster (CCA) from the Association of
139Property and Casualty Claims Professionals whose curriculum has
140been approved by the department and whose curriculum includes
141comprehensive analysis of basic property and casualty lines of
142insurance and testing at least equal to that of standard
143department testing for the all-lines adjuster license. The
144department shall adopt rules establishing standards for the
145approval of curriculum.
146     Section 4.  Effective January 1, 2007, section 626.231,
147Florida Statutes, is amended to read:
148     626.231  Eligibility; application for examination.--
149     (1)  No person shall be permitted to take an examination
150for license until his or her application for examination or
151application for the license has been approved and the required
152fees have been received by the department or a person designated
153by the department to administer the examination.
154     (2)  A person required to take an examination for a license
155may be permitted to take an examination prior to submitting an
156application for licensure pursuant to s. 626.171 by submitting
157an application for examination through the department's Internet
158website. In the application, the applicant shall set forth:
159     (a)  His or her full name, age, social security number,
160residence address, business address, and mailing address.
161     (b)  The type of license that the applicant intends to
162apply for.
163     (c)  The name of any required prelicensing course he or she
164has completed or is in the process of completing.
165     (d)  The method by which the applicant intends to qualify
166for the type of license if other than by completing a
167prelicensing course.
168     (e)  The applicant's gender (male or female).
169     (f)  The applicant's native language.
170     (g)  The highest level of education achieved by the
171applicant.
172     (h)  The applicant's race or ethnicity (African American,
173white, American Indian, Asian, Hispanic, or other).
174
175However, the application must contain a statement that an
176applicant is not required to disclose his or her race or
177ethnicity, gender, or native language, that he or she will not
178be penalized for not doing so, and that the department will use
179this information exclusively for research and statistical
180purposes and to improve the quality and fairness of the
181examinations.
182     (3)  Each application shall be accompanied by payment of
183the applicable examination fee.
184     Section 5.  Subsection (9) is added to section 626.241,
185Florida Statutes, to read:
186     626.241  Scope of examination.--
187     (9)  This section applies to any person who submits an
188application for license and to any person who submits an
189application for examination prior to filing an application for
190license.
191     Section 6.  Section 626.2415, Florida Statutes, is created
192to read:
193     626.2415  Annual report of results of life insurance
194examinations.--
195     (1)  No later than May 1 of each year, the department or a
196person designated by the department shall prepare, publicly
197announce, and publish a report that summarizes statistical
198information relating to life insurance agent examinations
199administered during the preceding calendar year. Each report
200shall include the following information, for all examinees
201combined and separately by race or ethnicity, gender, race or
202ethnicity within gender, education level, and native language:
203     (a)  The total number of examinees.
204     (b)  The percentage and number of examinees who passed the
205examination.
206     (c)  The mean scaled scores on the examination.
207     (d)  Standard deviation of scaled scores on the
208examination.
209     (2)  No later than May 1 of each year, the department or a
210person designated by the department shall prepare and make
211available upon request a report of summary statistical
212information relating to each life insurance test form
213administered during the preceding calendar year. The report
214shall show, for each test form, for all examinees combined and
215separately for African-American examinees, white examinees,
216American Indian examinees, Asian examinees, Hispanic examinees,
217and other examinees, the correct-answer rates and correlations.
218     (3)  The department may provide a testing service provider,
219under contract with the department, demographic information
220received by the department on applications relating to
221examinations taken to qualify for an insurance agent license if
222the department requires the provider to review and analyze
223examination results in conjunction with the race or ethnicity,
224gender, education level, and native language of examinees.
225     Section 7.  Subsection (1) of section 626.251, Florida
226Statutes, is amended to read:
227     626.251  Time and place of examination; notice.--
228     (1)  The department or a person designated by the
229department shall mail written notice of the time and place of
230the examination to each applicant for examination and each
231applicant for license required to take an examination who will
232be eligible to take the examination as of the examination date.
233The notice shall be so mailed, postage prepaid, and addressed to
234the applicant at his or her address shown on the application for
235license or at such other address as requested by the applicant
236in writing filed with the department prior to the mailing of the
237notice. Notice shall be deemed given when so mailed.
238     Section 8.  Effective January 1, 2007, subsection (1) of
239section 626.261, Florida Statutes, is amended to read:
240     626.261  Conduct of examination.--
241     (1)  The applicant for license or the applicant for
242examination shall appear in person and personally take the
243examination for license at the time and place specified by the
244department or by a person designated by the department.
245     Section 9.  Subsection (1) of section 626.281, Florida
246Statutes, is amended to read:
247     626.281  Reexamination.--
248     (1)  Any applicant for license or applicant for examination
249who has either:
250     (a)  Taken an examination and failed to make a passing
251grade, or
252     (b)  Failed to appear for the examination or to take or
253complete the examination at the time and place specified in the
254notice of the department,
255
256may take additional examinations, after filing with the
257department an application for reexamination together with
258applicable fees. The failure of an applicant to pass an
259examination or the failure to appear for the examination or to
260take or complete the examination does not preclude the applicant
261from taking subsequent examinations.
262     Section 10.  Effective January 1, 2007, subsections (1) and
263(3) of section 626.291, Florida Statutes, are amended to read:
264     626.291  Examination results; denial, issuance of
265license.--
266     (1)  Within 30 days after the applicant has completed any
267examination required under s. 626.221, the department or its
268designee shall provide a score report; and, if it finds that the
269applicant has received a passing grade, the department shall
270within such period notify the applicant and issue and transmit
271the license to which such examination related. If it finds that
272the applicant did not make a passing grade on the examination
273for a particular license, the department or its designee shall
274within this period provide notice to the applicant to that
275effect and of its denial of the license. For those applicants
276who have completed the examination and received a passing grade
277prior to submitting the license application, the department
278shall promptly issue the license applied for as soon as the
279department approves the application.
280     (3)  A passing grade on an examination is valid for a
281period of 1 year. The department shall not issue a license to an
282applicant based on an examination taken more than 1 year prior
283to the date that an application for license is filed. The
284department shall not deny, delay, or withhold issuance of a
285license due to the fact that it has not received a criminal
286history report based on the applicant's fingerprints.
287     Section 11.  The sums of $158,995 in recurring funds and
288$120,069 in nonrecurring funds are appropriated from the
289Insurance Regulatory Trust Fund in the Department of Financial
290Services for the 2006-2007 fiscal year for the purposes of
291funding the provisions of this act, and three full-time
292equivalent positions with 103,285 in associated salary rate are
293authorized.
294     Section 12.  Except as otherwise expressly provided in this
295act, this act shall take effect July 1, 2006.


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