| 1 | A bill to be entitled |
| 2 | An act relating to insurance representatives; amending s. |
| 3 | 626.221, F.S.; providing an exemption from the required |
| 4 | written examination to certain applicants for licensure as |
| 5 | a claims adjuster; amending s. 626.7851, F.S.; authorizing |
| 6 | certain programs to offer correspondence courses to |
| 7 | applicants for licensure as a life insurance agent; |
| 8 | amending s. 626.8311, F.S.; authorizing certain programs |
| 9 | to offer correspondence courses to applicants for |
| 10 | licensure as a health insurance agent; amending s. |
| 11 | 626.747, F.S.; authorizing certain licensed agents to be |
| 12 | the agent in charge of branch locations under certain |
| 13 | circumstances; amending s. 626.865, F.S.; requiring public |
| 14 | adjusters to maintain their surety bond unimpaired for a |
| 15 | certain period; amending s. 626.869, F.S.; authorizing an |
| 16 | extension of time to complete continuing education |
| 17 | requirements for public adjusters; amending s. 626.8698, |
| 18 | F.S.; designating the Department of Financial Services as |
| 19 | the appropriate agency responsible for disciplinary action |
| 20 | against public adjusters; amending s. 626.921, F.S.; |
| 21 | providing that the department is responsible for approval |
| 22 | of the surplus lines agent manual; amending s. 626.9531, |
| 23 | F.S.; revising requirements for identification of |
| 24 | insurers, agents, and insurance contracts; specifying |
| 25 | absence of liability and prohibiting causes of action |
| 26 | against certain agents for insolvency of certain entities |
| 27 | under certain circumstances; providing definitions; |
| 28 | amending s. 626.9611, F.S.; requiring that the department |
| 29 | and Financial Services Commission adopt rules prohibiting |
| 30 | the use of unfair and deceptive practices in the sale of |
| 31 | insurance to members of the United States Armed Forces; |
| 32 | providing limitations; providing an appropriation; |
| 33 | providing effective dates. |
| 34 |
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| 35 | Be It Enacted by the Legislature of the State of Florida: |
| 36 |
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| 37 | Section 1. Paragraph (k) of subsection (2) of section |
| 38 | 626.221, Florida Statutes, is amended to read: |
| 39 | 626.221 Examination requirement; exemptions.-- |
| 40 | (2) However, no such examination shall be necessary in any |
| 41 | of the following cases: |
| 42 | (k) An applicant for license as an independent or company |
| 43 | employee adjuster who has the designation of Accredited Claims |
| 44 | Adjuster (ACA) from a regionally accredited postsecondary |
| 45 | institution in this state, Professional Claims Adjuster (PCA) |
| 46 | from the Professional Career Institute, Professional Property |
| 47 | Insurance Adjuster (PPIA) from the HurriClaim Training Academy, |
| 48 | Certified Professional Claims Adjuster (CPCA) from ALL LINES |
| 49 | Training, or Certified Claims Adjuster (CCA) from the |
| 50 | Association of Property and Casualty Claims Professionals whose |
| 51 | curriculum has been approved by the department and whose |
| 52 | curriculum includes comprehensive analysis of basic property and |
| 53 | casualty lines of insurance and testing at least equal to that |
| 54 | of standard department testing for the all-lines adjuster |
| 55 | license. The department shall adopt rules establishing standards |
| 56 | for the approval of curriculum. |
| 57 | Section 2. Subsection (2) of section 626.7851, Florida |
| 58 | Statutes, is amended to read: |
| 59 | 626.7851 Requirement as to knowledge, experience, or |
| 60 | instruction.--No applicant for a license as a life agent, except |
| 61 | for a chartered life underwriter (CLU), shall be qualified or |
| 62 | licensed unless within the 4 years immediately preceding the |
| 63 | date the application for a license is filed with the department |
| 64 | he or she has: |
| 65 | (2) Successfully completed a correspondence course in |
| 66 | insurance, 3 hours of which shall be on the subject matter of |
| 67 | ethics, satisfactory to the department and regularly offered by |
| 68 | accredited institutions of higher learning in this state or by |
| 69 | independent programs of study, approved by the department. |
| 70 | Courses must include instruction on the subject matter of |
| 71 | unauthorized entities engaging in the business of insurance, to |
| 72 | include the Florida Nonprofit Multiple-Employer Welfare |
| 73 | Arrangement Act and the Employee Retirement Income Security Act, |
| 74 | 29 U.S.C. ss. 1001 et seq., as it relates to the provision of |
| 75 | life insurance by employers to their employees and the |
| 76 | regulation thereof; |
| 77 | Section 3. Subsection (2) of section 626.8311, Florida |
| 78 | Statutes, is amended to read: |
| 79 | 626.8311 Requirement as to knowledge, experience, or |
| 80 | instruction.--No applicant for a license as a health agent, |
| 81 | except for a chartered life underwriter (CLU), shall be |
| 82 | qualified or licensed unless within the 4 years immediately |
| 83 | preceding the date the application for license is filed with the |
| 84 | department he or she has: |
| 85 | (2) Successfully completed a correspondence course in |
| 86 | insurance, 3 hours of which shall be on the subject matter of |
| 87 | ethics, satisfactory to the department and regularly offered by |
| 88 | accredited institutions of higher learning in this state or by |
| 89 | independent programs of study, approved by the department. |
| 90 | Courses must include instruction on the subject matter of |
| 91 | unauthorized entities engaging in the business of insurance, to |
| 92 | include the Florida Nonprofit Multiple-Employer Welfare |
| 93 | Arrangement Act and the Employee Retirement Income Security Act, |
| 94 | 29 U.S.C. ss. 1001 et seq., as it relates to the provision of |
| 95 | health insurance by employers to their employees and the |
| 96 | regulation thereof; |
| 97 | Section 4. Effective January 1, 2008, subsection (1) of |
| 98 | section 626.747, Florida Statutes, is amended to read: |
| 99 | 626.747 Branch agencies.-- |
| 100 | (1)(a) Each branch place of business established by an |
| 101 | agent or agency, firm, corporation, or association shall be in |
| 102 | the active full-time charge of a licensed general lines agent or |
| 103 | life or health agent who is appointed to represent one or more |
| 104 | insurers. Any agent or agency, firm, corporation, or association |
| 105 | which has established one or more branch places of business |
| 106 | shall be required to have at least one licensed general lines |
| 107 | agent who is appointed to represent one or more insurers at each |
| 108 | location of the agency including its headquarters location. |
| 109 | (b) Notwithstanding paragraph (a), the licensed agent in |
| 110 | charge of an insurance agency may also be the agent in charge of |
| 111 | additional branch office locations of the agency if insurance |
| 112 | activities requiring licensure as an insurance agent do not |
| 113 | occur at any location when the agent is not physically present |
| 114 | and unlicensed employees at the location do not engage in any |
| 115 | insurance activities requiring licensure as an insurance agent |
| 116 | or customer service representative. |
| 117 | Section 5. Subsection (2) of section 626.865, Florida |
| 118 | Statutes, is amended to read: |
| 119 | 626.865 Public adjuster's qualifications, bond.-- |
| 120 | (2) At the time of application for license as a public |
| 121 | adjuster, the applicant shall file with the department a bond |
| 122 | executed and issued by a surety insurer authorized to transact |
| 123 | such business in this state, in the amount of $50,000, |
| 124 | conditioned for the faithful performance of his or her duties as |
| 125 | a public adjuster under the license for which the applicant has |
| 126 | applied, and thereafter maintain the bond unimpaired throughout |
| 127 | the existence of the license and for at least 1 year after |
| 128 | termination of the license for. The bond shall be in favor of |
| 129 | the department and shall specifically authorize recovery by the |
| 130 | department of the damages sustained in case the licensee is |
| 131 | guilty of fraud or unfair practices in connection with his or |
| 132 | her business as public adjuster. The aggregate liability of the |
| 133 | surety for all such damages shall in no event exceed the amount |
| 134 | of the bond. Such bond shall not be terminated unless at least |
| 135 | 30 days' written notice is given to the licensee and filed with |
| 136 | the department. |
| 137 | Section 6. Paragraph (c) of subsection (4) of section |
| 138 | 626.869, Florida Statutes, is amended to read: |
| 139 | 626.869 License, adjusters.-- |
| 140 | (4) |
| 141 | (c) The department shall adopt rules necessary to |
| 142 | implement and administer the continuing education requirements |
| 143 | of this subsection. For good cause shown, the department may |
| 144 | grant an extension of time during which the requirements imposed |
| 145 | by this section may be completed, but such extension of time may |
| 146 | not exceed 1 year. |
| 147 | Section 7. Subsection (1) of section 626.8698, Florida |
| 148 | Statutes, is amended to read: |
| 149 | 626.8698 Disciplinary guidelines for public |
| 150 | adjusters.--The department may deny, suspend, or revoke the |
| 151 | license of a public adjuster, and administer a fine not to |
| 152 | exceed $5,000 per act, for any of the following: |
| 153 | (1) Violating any provision of this chapter or a rule or |
| 154 | order of the department office or commission; |
| 155 | Section 8. Paragraphs (a) and (c) of section 626.921, |
| 156 | Florida Statutes, are amended to read: |
| 157 | 626.921 Florida Surplus Lines Service Office.-- |
| 158 | (5)(a) The association shall submit to the office a plan |
| 159 | of operation, and any amendments thereto, to provide operating |
| 160 | procedures for the administration of the service office. The |
| 161 | plan of operation and any amendments thereto shall become |
| 162 | effective upon approval by order of the office. The association |
| 163 | shall submit to the department an agents' manual, and any |
| 164 | amendments thereto, which shall provide administrative |
| 165 | procedures that surplus lines insurance agents must follow with |
| 166 | respect to their duties to the service office. The manual shall |
| 167 | be prepared in cooperation with the department, and any changes, |
| 168 | updates, or amendments shall be submitted to the department |
| 169 | before distribution. The manual shall be approved by order of |
| 170 | the department. |
| 171 | (c) All surplus lines agents licensed in this state must |
| 172 | comply with the plan of operation and the agent's manual. |
| 173 | Section 9. Section 626.9531, Florida Statutes, is amended |
| 174 | to read: |
| 175 | 626.9531 Identification of insurers, agents, and insurance |
| 176 | contracts.-- |
| 177 | (1) Advertising materials and other communications |
| 178 | developed by insurers, or other risk bearing entities authorized |
| 179 | under this code and approved by the office to do business in |
| 180 | this state, regarding insurance products shall clearly indicate |
| 181 | that the communication relates to insurance products. When |
| 182 | soliciting or selling insurance products, agents shall clearly |
| 183 | indicate to prospective insureds that they are acting as |
| 184 | insurance agents with regard to insurance products and |
| 185 | identified insurers, or other risk bearing entities authorized |
| 186 | under this code and approved by the office to do business in |
| 187 | this state. |
| 188 | (2) There shall be no liability on the part of, and no |
| 189 | cause of action of any nature shall arise against, any licensed |
| 190 | and appointed insurance agent for the insolvency of any risk |
| 191 | bearing entity when such entity has been duly authorized or |
| 192 | approved by the office to do business in this state. However if |
| 193 | the licensed and appointed agent was a controlling producer, as |
| 194 | defined in s. 626.7491(2), of the risk bearing entity within 2 |
| 195 | years preceding the insolvency, the agent is subject to penalty |
| 196 | as provided in s. 626.7491(8). |
| 197 | (3) For the purposes of this section, the term "risk |
| 198 | bearing entity" means a reciprocal insurer as defined in s. |
| 199 | 629.021, a commercial self-insurance fund as defined in s. |
| 200 | 624.462, a group self-insurance fund as defined in s. 624.4621, |
| 201 | a local government self-insurance fund as defined in s. |
| 202 | 624.4622, a self-insured public utility as defined in s. |
| 203 | 624.46225, or an independent educational institution self- |
| 204 | insurance fund as defined in s. 624.4623. For the purposes of |
| 205 | this section, the term "risk bearing entity" does not include an |
| 206 | authorized insurer as defined in s. 624.09. |
| 207 | Section 10. Section 626.9611, Florida Statutes, is amended |
| 208 | to read: |
| 209 | 626.9611 Rules.-- |
| 210 | (1) The department or commission may, in accordance with |
| 211 | chapter 120, adopt reasonable rules as are necessary or proper |
| 212 | to identify specific methods of competition or acts or practices |
| 213 | which are prohibited by s. 626.9541 or s. 626.9551, but the |
| 214 | rules shall not enlarge upon or extend the provisions of ss. |
| 215 | 626.9541 and 626.9551. |
| 216 | (2) The department and the commission shall, in accordance |
| 217 | with chapter 120, adopt rules to protect members of the United |
| 218 | States Armed Forces from dishonest or predatory insurance sales |
| 219 | practices by insurers and insurance agents. The rules shall |
| 220 | identify specific false, misleading, deceptive, or unfair |
| 221 | methods of competition, acts, or practices which are prohibited |
| 222 | by s. 626.9541 or s. 626.9551. The rules shall be based upon |
| 223 | model rules or model laws adopted by the National Association of |
| 224 | Insurance Commissioners which identify certain insurance |
| 225 | practices involving the solicitation or sale of insurance and |
| 226 | annuities to members of the United States Armed Forces which are |
| 227 | false, misleading, deceptive, or unfair. |
| 228 | Section 11. For the 2007-2008 fiscal year, the sum of |
| 229 | $132,000 in nonrecurring funds is appropriated from the |
| 230 | Insurance Regulatory Trust Fund to the Department of Financial |
| 231 | Services for computer system changes necessary to implement the |
| 232 | provisions of s. 626.747, Florida Statutes. |
| 233 | Section 12. Except as otherwise expressly provided in this |
| 234 | act, this act shall take effect July 1, 2007. |