Florida Senate - 2007 COMMITTEE AMENDMENT
Bill No. SB 2702
Barcode 232954
CHAMBER ACTION
Senate House
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11 The Committee on Banking and Insurance (Deutch) recommended
12 the following amendment:
13
14 Senate Amendment (with title amendment)
15 Delete everything after the enacting clause
16
17 and insert:
18 Section 1. Paragraph (k) of subsection (2) of section
19 626.221, Florida Statutes, is amended to read:
20 626.221 Examination requirement; exemptions.--
21 (2) However, no such examination shall be necessary in
22 any of the following cases:
23 (k) An applicant for license as an independent or
24 company employee adjuster who has the designation of
25 Accredited Claims Adjuster (ACA) from a regionally accredited
26 postsecondary institution in this state, Professional Claims
27 Adjuster (PCA) from the Professional Career Institute,
28 Professional Property Insurance Adjuster (PPIA) from the
29 HurriClaim Training Academy, or Certified Claims Adjuster
30 (CCA) from the Association of Property and Casualty Claims
31 Professionals whose curriculum has been approved by the
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Florida Senate - 2007 COMMITTEE AMENDMENT
Bill No. SB 2702
Barcode 232954
1 department and whose curriculum includes comprehensive
2 analysis of basic property and casualty lines of insurance and
3 testing at least equal to that of standard department testing
4 for the all-lines adjuster license. The department shall adopt
5 rules establishing standards for the approval of curriculum.
6 Section 2. Section 626.7851, Florida Statutes, is
7 amended to read:
8 626.7851 Requirement as to knowledge, experience, or
9 instruction.--No applicant for a license as a life agent,
10 except for a chartered life underwriter (CLU), shall be
11 qualified or licensed unless within the 4 years immediately
12 preceding the date the application for a license is filed with
13 the department he or she has:
14 (1) Successfully completed 40 hours of classroom
15 courses in insurance, 3 hours of which shall be on the subject
16 matter of ethics, satisfactory to the department at a school
17 or college, or extension division thereof, or other authorized
18 course of study, approved by the department. Courses must
19 include instruction on the subject matter of unauthorized
20 entities engaging in the business of insurance, to include the
21 Florida Nonprofit Multiple-Employer Welfare Arrangement Act
22 and the Employee Retirement Income Security Act, 29 U.S.C. ss.
23 1001 et seq., as it relates to the provision of life insurance
24 by employers to their employees and the regulation thereof;
25 (2) Successfully completed a correspondence course in
26 insurance, 3 hours of which shall be on the subject matter of
27 ethics, satisfactory to the department and regularly offered
28 by accredited institutions of higher learning in this state or
29 by independent programs of study, approved by the department.
30 Courses must include instruction on the subject matter of
31 unauthorized entities engaging in the business of insurance,
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Florida Senate - 2007 COMMITTEE AMENDMENT
Bill No. SB 2702
Barcode 232954
1 to include the Florida Nonprofit Multiple-Employer Welfare
2 Arrangement Act and the Employee Retirement Income Security
3 Act, 29 U.S.C. ss. 1001 et seq., as it relates to the
4 provision of life insurance by employers to their employees
5 and the regulation thereof;
6 (3) Held an active license in life, or life and
7 health, insurance in another state. This provision may not be
8 utilized unless the other state grants reciprocal treatment to
9 licensees formerly licensed in Florida; or
10 (4) Been employed by the department or office for at
11 least 1 year, full time in life or life and health insurance
12 regulatory matters and who was not terminated for cause, and
13 application for examination is made within 90 days after the
14 date of termination of his or her employment with the
15 department or office.
16 Section 3. Section 626.8311, Florida Statutes, is
17 amended to read:
18 626.8311 Requirement as to knowledge, experience, or
19 instruction.--No applicant for a license as a health agent,
20 except for a chartered life underwriter (CLU), shall be
21 qualified or licensed unless within the 4 years immediately
22 preceding the date the application for license is filed with
23 the department he or she has:
24 (1) Successfully completed 40 hours of classroom
25 courses in insurance, 3 hours of which shall be on the subject
26 matter of ethics, satisfactory to the department at a school
27 or college, or extension division thereof, or other authorized
28 course of study, approved by the department. Courses must
29 include instruction on the subject matter of unauthorized
30 entities engaging in the business of insurance, to include the
31 Florida Nonprofit Multiple-Employer Welfare Arrangement Act
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Florida Senate - 2007 COMMITTEE AMENDMENT
Bill No. SB 2702
Barcode 232954
1 and the Employee Retirement Income Security Act, 29 U.S.C. ss.
2 1001 et seq., as it relates to the provision of health
3 insurance by employers to their employees and the regulation
4 thereof;
5 (2) Successfully completed a correspondence course in
6 insurance, 3 hours of which shall be on the subject matter of
7 ethics, satisfactory to the department and regularly offered
8 by accredited institutions of higher learning in this state or
9 by independent programs of study, approved by the department.
10 Courses must include instruction on the subject matter of
11 unauthorized entities engaging in the business of insurance,
12 to include the Florida Nonprofit Multiple-Employer Welfare
13 Arrangement Act and the Employee Retirement Income Security
14 Act, 29 U.S.C. ss. 1001 et seq., as it relates to the
15 provision of health insurance by employers to their employees
16 and the regulation thereof;
17 (3) Held an active license in health, or life and
18 health, insurance in another state. This provision may not be
19 utilized unless the other state grants reciprocal treatment to
20 licensees formerly licensed in Florida; or
21 (4) Been employed by the department or office for at
22 least 1 year, full time in health insurance regulatory matters
23 and who was not terminated for cause, and application for
24 examination is made within 90 days after the date of
25 termination of his or her employment with the department or
26 office.
27 Section 4. Effective January 1, 2008, subsection (1)
28 of section 626.747, Florida Statutes, is amended to read:
29 626.747 Branch agencies.--
30 (1)(a) Each branch place of business established by an
31 agent or agency, firm, corporation, or association shall be in
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Florida Senate - 2007 COMMITTEE AMENDMENT
Bill No. SB 2702
Barcode 232954
1 the active full-time charge of a licensed general lines agent
2 or life or health agent who is appointed to represent one or
3 more insurers. Any agent or agency, firm, corporation, or
4 association which has established one or more branch places of
5 business shall be required to have at least one licensed
6 general lines agent who is appointed to represent one or more
7 insurers at each location of the agency including its
8 headquarters location.
9 (b) Notwithstanding paragraph (a), the licensed agent
10 in charge of an insurance agency may also be the agent in
11 charge of additional branch office locations of the agency if
12 insurance activities requiring licensure as an insurance agent
13 do not occur at any location when the agent is not physically
14 present and unlicensed employees at the location do not engage
15 in any insurance activities requiring licensure as an
16 insurance agent or customer service representative.
17 Section 5. Subsection (2) of section 626.865, Florida
18 Statutes, is amended to read:
19 626.865 Public adjuster's qualifications, bond.--
20 (2) At the time of application for license as a public
21 adjuster, the applicant shall file with the department a bond
22 executed and issued by a surety insurer authorized to transact
23 such business in this state, in the amount of $50,000,
24 conditioned for the faithful performance of his or her duties
25 as a public adjuster under the license for which the applicant
26 has applied, and thereafter maintain the bond unimpaired
27 throughout the existence of the license and for at least 1
28 year after termination of the license for. The bond shall be
29 in favor of the department and shall specifically authorize
30 recovery by the department of the damages sustained in case
31 the licensee is guilty of fraud or unfair practices in
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Florida Senate - 2007 COMMITTEE AMENDMENT
Bill No. SB 2702
Barcode 232954
1 connection with his or her business as public adjuster. The
2 aggregate liability of the surety for all such damages shall
3 in no event exceed the amount of the bond. Such bond shall
4 not be terminated unless at least 30 days' written notice is
5 given to the licensee and filed with the department.
6 Section 6. Paragraph (c) of subsection (4) of section
7 626.869, Florida Statutes, is amended to read:
8 626.869 License, adjusters.--
9 (4)
10 (c) The department shall adopt rules necessary to
11 implement and administer the continuing education requirements
12 of this subsection. For good cause shown, the department may
13 grant an extension of time during which the requirements
14 imposed by this section may be completed, but such extension
15 of time may not exceed 1 year.
16 Section 7. Section 626.8698, Florida Statutes, is
17 amended to read:
18 626.8698 Disciplinary guidelines for public
19 adjusters.--The department may deny, suspend, or revoke the
20 license of a public adjuster, and administer a fine not to
21 exceed $5,000 per act, for any of the following:
22 (1) Violating any provision of this chapter or a rule
23 or order of the department office or commission;
24 (2) Receiving payment or anything of value as a result
25 of an unfair or deceptive practice;
26 (3) Receiving or accepting any fee, kickback, or other
27 thing of value pursuant to any agreement or understanding,
28 oral or otherwise; entering into a split-fee arrangement with
29 another person who is not a public adjuster; or being
30 otherwise paid or accepting payment for services that have not
31 been performed;
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Florida Senate - 2007 COMMITTEE AMENDMENT
Bill No. SB 2702
Barcode 232954
1 (4) Violating s. 316.066 or s. 817.234;
2 (5) Soliciting or otherwise taking advantage of a
3 person who is vulnerable, emotional, or otherwise upset as the
4 result of a trauma, accident, or other similar occurrence; or
5 (6) Violating any ethical rule of the department.
6 Section 8. Paragraphs (a) and (c) of section 626.921,
7 Florida Statutes, are amended to read:
8 626.921 Florida Surplus Lines Service Office.--
9 (5)(a) The association shall submit to the office a
10 plan of operation, and any amendments thereto, to provide
11 operating procedures for the administration of the service
12 office. The plan of operation and any amendments thereto shall
13 become effective upon approval by order of the office. The
14 association shall submit to the department an agents' manual,
15 and any amendments thereto, which shall provide administrative
16 procedures that surplus lines insurance agents must follow
17 with respect to their duties to the service office. The manual
18 shall be prepared in cooperation with the department, and any
19 changes, updates, or amendments shall be submitted to the
20 department before distribution. The manual shall be approved
21 by order of the department.
22 (c) All surplus lines agents licensed in this state
23 must comply with the plan of operation and the agent's manual.
24 Section 9. Section 626.9611, Florida Statutes, is
25 amended to read:
26 626.9611 Rules.--
27 (1) The department or commission may, in accordance
28 with chapter 120, adopt reasonable rules as are necessary or
29 proper to identify specific methods of competition or acts or
30 practices which are prohibited by s. 626.9541 or s. 626.9551,
31 but the rules shall not enlarge upon or extend the provisions
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Florida Senate - 2007 COMMITTEE AMENDMENT
Bill No. SB 2702
Barcode 232954
1 of ss. 626.9541 and 626.9551.
2 (2) The department and the commission shall, in
3 accordance with chapter 120, adopt rules to protect members of
4 the United States Armed Forces from dishonest or predatory
5 insurance sales practices by insurers and insurance agents.
6 The rules shall identify specific false, misleading,
7 deceptive, or unfair methods of competition, acts, or
8 practices which are prohibited by s. 626.9541 or s. 626.9551.
9 The rules shall be based upon model rules or model laws
10 adopted by the National Association of Insurance Commissioners
11 which identify certain insurance practices involving the
12 solicitation or sale of insurance and annuities to members of
13 the United States Armed Forces which are false, misleading,
14 deceptive, or unfair.
15 Section 10. For the 2007-2008 fiscal year, the sum of
16 $132,000 in nonrecurring funds is appropriated from the
17 Insurance Regulatory Trust Fund to the Department of Financial
18 Services for computer system changes necessary to implement
19 the provisions of s. 626.747, Florida Statutes.
20 Section 11. Except as otherwise expressly provided in
21 this act, this act shall take effect July 1, 2007.
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24 ================ T I T L E A M E N D M E N T ===============
25 And the title is amended as follows:
26 Delete everything before the enacting clause
27
28 and insert:
29 A bill to be entitled
30 An act relating to insurance representatives;
31 amending s. 626.221, F.S.; providing an
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Florida Senate - 2007 COMMITTEE AMENDMENT
Bill No. SB 2702
Barcode 232954
1 exemption from the required written examination
2 to certain applicants for licensure as a claims
3 adjuster; amending s. 626.7851, F.S.;
4 authorizing certain programs to offer
5 correspondence courses to applicants for
6 licensure as a life insurance agent; amending
7 s. 626.8311, F.S.; authorizing certain programs
8 to offer correspondence courses to applicants
9 for licensure as a health insurance agent;
10 amending s. 626.747, F.S.; authorizing certain
11 licensed agents to be the agent in charge of
12 branch locations under certain circumstances;
13 amending s. 626.865, F.S.; requiring public
14 adjusters to maintain their surety bond
15 unimpaired for a certain period; amending s.
16 626.869, F.S.; authorizing an extension of time
17 to complete continuing education requirements
18 for public adjusters; amending s. 626.8698,
19 F.S.; designating the Department of Financial
20 Services as the appropriate agency responsible
21 for disciplinary action against public
22 adjusters; amending s. 626.921, F.S.; providing
23 that the department is responsible for approval
24 of the surplus lines agent manual; amending s.
25 626.9611, F.S.; requiring that the department
26 adopt rules prohibiting the use of unfair and
27 deceptive practices in the sale of insurance to
28 members of the United States Armed Forces;
29 providing limitations; providing an
30 appropriation; providing effective dates.
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