Senate Bill sb2526c1
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Florida Senate - 2006 CS for SB 2526
By the Committee on Banking and Insurance; and Senator Posey
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1 A bill to be entitled
2 An act relating to insurance agents; amending
3 s. 626.171, F.S.; providing additional
4 requirements for applications for certain
5 licenses; requiring applicants to submit
6 fingerprints and pay a processing fee;
7 providing for fingerprints to be taken by a
8 designated examination center; requiring the
9 Department of Financial Services to require
10 designated examination centers to have certain
11 equipment; prohibiting the department from
12 approving licensure applications without
13 submitted fingerprints; amending s. 626.211,
14 F.S.; deleting a prohibition against the
15 department denying, delaying, or withholding
16 approval of applications lacking a criminal
17 history report; revising circumstances under
18 which the department must notify an applicant
19 about examinations; amending s. 626.221, F.S.;
20 expanding the authorized adjuster designations
21 for exemptions from adjuster license
22 examinations; amending s. 626.231, F.S.;
23 providing authorization and procedures for
24 applying on the department's Internet website
25 to take a licensure examination prior to
26 applying for licensure; specifying required
27 application information; requiring an
28 application disclosure statement; requiring
29 payment of an examination fee with an
30 application; amending s. 626.241, F.S.;
31 providing for application of certain
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1 examination provisions to certain persons;
2 creating s. 626.2415, F.S.; requiring the
3 department to annually prepare, publicly
4 announce, and publish reports of certain
5 examination statistical information; providing
6 report requirements; authorizing the department
7 to provide certain contracted testing service
8 providers with certain demographic application
9 information under certain circumstances;
10 amending s. 626.251, F.S.; requiring the
11 department to provide certain information to
12 examination applicants; amending s. 626.261,
13 F.S.; requiring examination applicants to
14 personally take the examination; amending s.
15 626.281, F.S.; applying reexamination
16 provisions to examination applicants; amending
17 s. 626.291, F.S.; requiring the department to
18 issue a license for certain applicants after
19 the department approves the application;
20 specifying a period of validity of a passing
21 examination grade; prohibiting the department
22 from issuing a license based on an examination
23 taken more than 1 year prior to filing an
24 application; providing appropriations;
25 authorizing additional positions; providing
26 effective dates.
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28 Be It Enacted by the Legislature of the State of Florida:
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1 Section 1. Effective January 1, 2007, subsections (2)
2 and (4) of section 626.171, Florida Statutes, are amended to
3 read:
4 626.171 Application for license as an agent, customer
5 representative, adjuster, service representative, managing
6 general agent, or reinsurance intermediary.--
7 (2) In the application, the applicant shall set forth:
8 (a) His or her full name, age, social security number,
9 residence address, business address, and mailing address.
10 (b) Proof that he or she has completed or is in the
11 process of completing any required prelicensing course.
12 (c) Whether he or she has been refused or has
13 voluntarily surrendered or has had suspended or revoked a
14 license to solicit insurance by the department or by the
15 supervising officials of any state.
16 (d) Whether any insurer or any managing general agent
17 claims the applicant is indebted under any agency contract or
18 otherwise and, if so, the name of the claimant, the nature of
19 the claim, and the applicant's defense thereto, if any.
20 (e) Proof that the applicant meets the requirements
21 for the type of license for which he or she is applying.
22 (f) The applicant's gender (male or female).
23 (g) The applicant's native language.
24 (h) The highest level of education achieved by the
25 applicant.
26 (i) The applicant's race or ethnicity (African
27 American, white, American Indian, Asian, Hispanic, or other).
28 (j)(f) Such other or additional information as the
29 department may deem proper to enable it to determine the
30 character, experience, ability, and other qualifications of
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1 the applicant to hold himself or herself out to the public as
2 an insurance representative.
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4 However, the application must contain a statement that an
5 applicant is not required to disclose his or her race or
6 ethnicity, gender, or native language, that he or she will not
7 be penalized for not doing so, and that the department will
8 use this information exclusively for research and statistical
9 purposes and to improve the quality and fairness of the
10 examinations.
11 (4) An applicant application for a license as an
12 agent, customer representative, adjuster, service
13 representative, managing general agent, or reinsurance
14 intermediary must submit be accompanied by a set of the
15 individual applicant's fingerprints, or, if the applicant is
16 not an individual, by a set of the fingerprints of the sole
17 proprietor, majority owner, partners, officers, and directors,
18 to the department and must pay on a form adopted by rule of
19 the department and accompanied by the fingerprint processing
20 fee set forth in s. 624.501. Fingerprints shall be used to
21 investigate the applicant's qualifications pursuant to s.
22 626.201. The fingerprints shall be taken by a law enforcement
23 agency, designated examination center, or other
24 department-approved entity. The department shall require all
25 designated examination centers to have fingerprinting
26 equipment and to take fingerprints from any applicant or
27 prospective applicant who pays the applicable fee. The
28 department may not approve an application for licensure as an
29 agent, customer service representative, adjuster, service
30 representative, managing general agent, or reinsurance
31 intermediary if fingerprints have not been submitted.
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1 Section 2. Effective January 1, 2007, subsections (1)
2 and (2) of section 626.211, Florida Statutes, are amended to
3 read:
4 626.211 Approval, disapproval of application.--
5 (1) If upon the basis of a completed application for
6 license and such further inquiry or investigation as the
7 department may make concerning an applicant the department is
8 satisfied that, subject to any examination required to be
9 taken and passed by the applicant for a license, the applicant
10 is qualified for the license applied for and that all
11 pertinent fees have been paid, it shall approve the
12 application. The department shall not deny, delay, or
13 withhold approval of an application due to the fact that it
14 has not received a criminal history report based on the
15 applicant's fingerprints.
16 (2) Upon approval of an applicant for license as
17 agent, customer representative, or adjuster who is subject to
18 written examination, the department shall notify the applicant
19 when and where he or she may take the required examination
20 unless the applicant has taken and passed the examination
21 within 1 year before the date of filing the application.
22 Section 3. Paragraph (k) of subsection (2) of section
23 626.221, Florida Statutes, is amended to read:
24 626.221 Examination requirement; exemptions.--
25 (2) However, no such examination shall be necessary in
26 any of the following cases:
27 (k) An applicant for license as an adjuster who has
28 the designation of Accredited Claims Adjuster (ACA) from a
29 regionally accredited postsecondary institution in this state,
30 or the designation of Professional Claims Adjuster (PCA) from
31 the Professional Career Institute, or Certified Claims
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1 Adjuster (CCA) from the Association of Property and Casualty
2 Claims Professionals, whose curriculum has been approved by
3 the department and whose curriculum includes comprehensive
4 analysis of basic property and casualty lines of insurance and
5 testing at least equal to that of standard department testing
6 for the all-lines adjuster license. The department shall adopt
7 rules establishing standards for the approval of curriculum.
8 Section 4. Effective January 1, 2007, section 626.231,
9 Florida Statutes, is amended to read:
10 626.231 Eligibility; application for examination.--
11 (1) A No person may not shall be permitted to take an
12 examination for license until his or her application for
13 examination or application for the license has been approved
14 and the required fees have been received by the department or
15 a person designated by the department to administer the
16 examination.
17 (2) A person required to take an examination for a
18 license may be permitted to take an examination prior to
19 submitting an application for licensure pursuant to s. 626.171
20 by submitting an application for examination through the
21 department's Internet website. In the application, the
22 applicant shall set forth:
23 (a) His or her full name, age, social security number,
24 residence address, business address, and mailing address.
25 (b) The type of license that the applicant intends to
26 apply for.
27 (c) The name of any required prelicensing course he or
28 she has completed or is in the process of completing.
29 (d) The method by which the applicant intends to
30 qualify for the type of license if other than by completing a
31 prelicensing course.
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1 (e) The applicant's gender (male or female).
2 (f) The applicant's native language.
3 (g) The highest level of education achieved by the
4 applicant.
5 (h) The applicant's race or ethnicity (African
6 American, white, American Indian, Asian, Hispanic, or other).
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8 However, the application must contain a statement that an
9 applicant is not required to disclose his or her race or
10 ethnicity, gender, or native language, that he or she will not
11 be penalized for not doing so, and that the department will
12 use this information exclusively for research and statistical
13 purposes and to improve the quality and fairness of the
14 examinations.
15 (3) Each application must be accompanied by payment of
16 the applicable examination fee.
17 Section 5. Subsection (9) is added to section 626.241,
18 Florida Statutes, to read:
19 626.241 Scope of examination.--
20 (9) This section applies to any person who submits an
21 application for license and to any person who submits an
22 application for examination prior to filing an application for
23 license.
24 Section 6. Section 626.2415, Florida Statutes, is
25 created to read:
26 626.2415 Annual report of results of life insurance
27 examinations.--
28 (1) No later than May 1 of each year, the department
29 or a person designated by the department shall prepare,
30 publicly announce, and publish a report that summarizes
31 statistical information relating to life insurance agent
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1 examinations administered during the preceding calendar year.
2 Each report shall include the following information for all
3 examinees, combined and separately by race or ethnicity,
4 gender, race or ethnicity within gender, education level, and
5 native language:
6 (a) The total number of examinees.
7 (b) The percentage and number of examinees who passed
8 the examination.
9 (c) The mean scaled scores on the examination.
10 (d) Standard deviation of scaled scores on the
11 examination.
12 (2) No later than May 1 of each year, the department
13 or a person designated by the department shall prepare and
14 make available upon request a report of summary statistical
15 information relating to each operational item on each life
16 insurance test form administered during the preceding calendar
17 year. The report shall show, for each operational item, for
18 all examinees combined and separately for African-American
19 examinees, white examinees, American Indian examinees, Asian
20 examinees, Hispanic examinees, and other examinees, the
21 correct-answer rates and correlations.
22 (3) The department may provide a testing service
23 provider, under contract with the department, demographic
24 information received by the department on applications
25 relating to examinations taken to qualify for an insurance
26 agent license if the department requires the provider to
27 review and analyze examination results in conjunction with the
28 race or ethnicity, gender, education level, and native
29 language of examinees.
30 Section 7. Subsection (1) of section 626.251, Florida
31 Statutes, is amended to read:
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1 626.251 Time and place of examination; notice.--
2 (1) The department or a person designated by the
3 department shall mail written notice of the time and place of
4 the examination to each applicant for examination and each
5 applicant for license required to take an examination who will
6 be eligible to take the examination as of the examination
7 date. The notice shall be so mailed, postage prepaid, and
8 addressed to the applicant at his or her address shown on the
9 application for license or at such other address as requested
10 by the applicant in writing filed with the department prior to
11 the mailing of the notice. Notice shall be deemed given when
12 so mailed.
13 Section 8. Effective January 1, 2007, subsection (1)
14 of section 626.261, Florida Statutes, is amended to read:
15 626.261 Conduct of examination.--
16 (1) The applicant for license or the applicant for
17 examination shall appear in person and personally take the
18 examination for license at the time and place specified by the
19 department or by a person designated by the department.
20 Section 9. Subsection (1) of section 626.281, Florida
21 Statutes, is amended to read:
22 626.281 Reexamination.--
23 (1) Any applicant for license or applicant for
24 examination who has either:
25 (a) Taken an examination and failed to make a passing
26 grade, or
27 (b) Failed to appear for the examination or to take or
28 complete the examination at the time and place specified in
29 the notice of the department,
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1 may take additional examinations, after filing with the
2 department an application for reexamination together with
3 applicable fees. The failure of an applicant to pass an
4 examination or the failure to appear for the examination or to
5 take or complete the examination does not preclude the
6 applicant from taking subsequent examinations.
7 Section 10. Effective January 1, 2007, section
8 626.291, Florida Statutes, is amended to read:
9 626.291 Examination results; denial, issuance of
10 license.--
11 (1) Within 30 days after the applicant has completed
12 any examination required under s. 626.221, the department or
13 its designee shall provide a score report; and, if it finds
14 that the applicant has received a passing grade, the
15 department shall within such period notify the applicant and
16 issue and transmit the license to which such examination
17 related. If it finds that the applicant did not make a
18 passing grade on the examination for a particular license, the
19 department or its designee shall within this period provide
20 notice to the applicant to that effect and of its denial of
21 the license. For those applicants who have completed the
22 examination and received a passing grade prior to submitting
23 the license application, the department shall promptly issue
24 the license applied for as soon as the department approves the
25 application.
26 (2) As to an applicant for a license for which no
27 examination is required, the department shall promptly issue
28 the license applied for as soon as it has approved the
29 application.
30 (3) A passing grade on an examination is valid for a
31 period of 1 year. The department may not issue a license to an
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1 applicant based on an examination taken more than 1 year prior
2 to the date that an application for license is filed. The
3 department shall not deny, delay, or withhold issuance of a
4 license due to the fact that it has not received a criminal
5 history report based on the applicant's fingerprints.
6 Section 11. The sums of $158,995 in recurring funds
7 and $120,069 in nonrecurring funds are appropriated from the
8 Insurance Regulatory Trust Fund in the Department of Financial
9 Services for the 2006-2007 fiscal year for the purposes of
10 funding this act, and three full-time equivalent positions
11 with $103,285 in associated salary rate are authorized.
12 Section 12. Except as otherwise expressly provided in
13 this act, this act shall take effect July 1, 2006.
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1 STATEMENT OF SUBSTANTIAL CHANGES CONTAINED IN
COMMITTEE SUBSTITUTE FOR
2 Senate Bill 2526
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4 1. Allows fingerprints of insurance agent applicants to be
taken at a designated examination center and requires DFS
5 to have fingerprinting equipment available.
6 2. Deletes a prohibition against the Department of Financial
Services (DFS) denying, delaying, or withholding approval
7 of license applications without a criminal history
report.
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3. Revises circumstances under which the department must
9 notify an applicant about license examinations.
10 4. Exempts from the examination requirement for a claims
adjuster an individual who has obtained certification as
11 a claims adjuster from the Association of Property and
Casualty Claims Professionals.
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5. Provides procedures for applying for agent licensure
13 examination prior to applying for licensure.
14 6. Allows insurance agent applicants to voluntarily disclose
their race, ethnicity, gender, and native language on
15 license applications to the (DFS) which will use the
information for research and statistical purposes to
16 improve the fairness of the license examinations.
17 7. Requires DFS to annually publish a report summarizing
information relating to life insurance agent examinations
18 administered each year, including ethnic classifications
(race, ethnicity, gender, or native language) pertaining
19 to passing rates and correct-answer rates.
20 8. Requires DFS to provide certain information to
examination applicants.
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9. Appropriates to DFS $158,995 (recurring) and $120,069
22 (non-recurring), from the Insurance Regulatory Trust
Fund, and 3 full-time positions with a $103,285
23 associated salary rate.
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