Senate Bill sb2702c1
CODING: Words stricken are deletions; words underlined are additions.
Florida Senate - 2007 CS for SB 2702
By the Committee on Banking and Insurance; and Senator
Aronberg
597-2470-07
1 A bill to be entitled
2 An act relating to insurance representatives;
3 amending s. 626.221, F.S.; providing an
4 exemption from the required written examination
5 to certain applicants for licensure as a claims
6 adjuster; amending s. 626.7851, F.S.;
7 authorizing certain programs to offer
8 correspondence courses to applicants for
9 licensure as a life insurance agent; amending
10 s. 626.8311, F.S.; authorizing certain programs
11 to offer correspondence courses to applicants
12 for licensure as a health insurance agent;
13 amending s. 626.747, F.S.; authorizing certain
14 licensed agents to be the agent in charge of
15 branch locations under certain circumstances;
16 amending s. 626.865, F.S.; requiring public
17 adjusters to maintain their surety bond
18 unimpaired for a certain period; amending s.
19 626.869, F.S.; authorizing an extension of time
20 to complete continuing education requirements
21 for public adjusters; amending s. 626.8698,
22 F.S.; designating the Department of Financial
23 Services as the appropriate agency responsible
24 for disciplinary action against public
25 adjusters; amending s. 626.921, F.S.; providing
26 that the department is responsible for approval
27 of the surplus lines agent manual; amending s.
28 626.9611, F.S.; requiring that the department
29 adopt rules prohibiting the use of unfair and
30 deceptive practices in the sale of insurance to
31 members of the United States Armed Forces;
1
CODING: Words stricken are deletions; words underlined are additions.
Florida Senate - 2007 CS for SB 2702
597-2470-07
1 providing limitations; providing an
2 appropriation; providing effective dates.
3
4 Be It Enacted by the Legislature of the State of Florida:
5
6 Section 1. Paragraph (k) of subsection (2) of section
7 626.221, Florida Statutes, is amended to read:
8 626.221 Examination requirement; exemptions.--
9 (2) However, no such examination shall be necessary in
10 any of the following cases:
11 (k) An applicant for license as an independent or
12 company employee adjuster who has the designation of
13 Accredited Claims Adjuster (ACA) from a regionally accredited
14 postsecondary institution in this state, Professional Claims
15 Adjuster (PCA) from the Professional Career Institute,
16 Professional Property Insurance Adjuster (PPIA) from the
17 HurriClaim Training Academy, or Certified Claims Adjuster
18 (CCA) from the Association of Property and Casualty Claims
19 Professionals whose curriculum has been approved by the
20 department and whose curriculum includes comprehensive
21 analysis of basic property and casualty lines of insurance and
22 testing at least equal to that of standard department testing
23 for the all-lines adjuster license. The department shall adopt
24 rules establishing standards for the approval of curriculum.
25 Section 2. Section 626.7851, Florida Statutes, is
26 amended to read:
27 626.7851 Requirement as to knowledge, experience, or
28 instruction.--No applicant for a license as a life agent,
29 except for a chartered life underwriter (CLU), shall be
30 qualified or licensed unless within the 4 years immediately
31
2
CODING: Words stricken are deletions; words underlined are additions.
Florida Senate - 2007 CS for SB 2702
597-2470-07
1 preceding the date the application for a license is filed with
2 the department he or she has:
3 (1) Successfully completed 40 hours of classroom
4 courses in insurance, 3 hours of which shall be on the subject
5 matter of ethics, satisfactory to the department at a school
6 or college, or extension division thereof, or other authorized
7 course of study, approved by the department. Courses must
8 include instruction on the subject matter of unauthorized
9 entities engaging in the business of insurance, to include the
10 Florida Nonprofit Multiple-Employer Welfare Arrangement Act
11 and the Employee Retirement Income Security Act, 29 U.S.C. ss.
12 1001 et seq., as it relates to the provision of life insurance
13 by employers to their employees and the regulation thereof;
14 (2) Successfully completed a correspondence course in
15 insurance, 3 hours of which shall be on the subject matter of
16 ethics, satisfactory to the department and regularly offered
17 by accredited institutions of higher learning in this state or
18 by independent programs of study, approved by the department.
19 Courses must include instruction on the subject matter of
20 unauthorized entities engaging in the business of insurance,
21 to include the Florida Nonprofit Multiple-Employer Welfare
22 Arrangement Act and the Employee Retirement Income Security
23 Act, 29 U.S.C. ss. 1001 et seq., as it relates to the
24 provision of life insurance by employers to their employees
25 and the regulation thereof;
26 (3) Held an active license in life, or life and
27 health, insurance in another state. This provision may not be
28 utilized unless the other state grants reciprocal treatment to
29 licensees formerly licensed in Florida; or
30 (4) Been employed by the department or office for at
31 least 1 year, full time in life or life and health insurance
3
CODING: Words stricken are deletions; words underlined are additions.
Florida Senate - 2007 CS for SB 2702
597-2470-07
1 regulatory matters and who was not terminated for cause, and
2 application for examination is made within 90 days after the
3 date of termination of his or her employment with the
4 department or office.
5 Section 3. Section 626.8311, Florida Statutes, is
6 amended to read:
7 626.8311 Requirement as to knowledge, experience, or
8 instruction.--No applicant for a license as a health agent,
9 except for a chartered life underwriter (CLU), shall be
10 qualified or licensed unless within the 4 years immediately
11 preceding the date the application for license is filed with
12 the department he or she has:
13 (1) Successfully completed 40 hours of classroom
14 courses in insurance, 3 hours of which shall be on the subject
15 matter of ethics, satisfactory to the department at a school
16 or college, or extension division thereof, or other authorized
17 course of study, approved by the department. Courses must
18 include instruction on the subject matter of unauthorized
19 entities engaging in the business of insurance, to include the
20 Florida Nonprofit Multiple-Employer Welfare Arrangement Act
21 and the Employee Retirement Income Security Act, 29 U.S.C. ss.
22 1001 et seq., as it relates to the provision of health
23 insurance by employers to their employees and the regulation
24 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,
4
CODING: Words stricken are deletions; words underlined are additions.
Florida Senate - 2007 CS for SB 2702
597-2470-07
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 health insurance by employers to their employees
5 and the regulation thereof;
6 (3) Held an active license in health, 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 health insurance regulatory matters
12 and who was not terminated for cause, and application for
13 examination is made within 90 days after the date of
14 termination of his or her employment with the department or
15 office.
16 Section 4. Effective January 1, 2008, subsection (1)
17 of section 626.747, Florida Statutes, is amended to read:
18 626.747 Branch agencies.--
19 (1)(a) Each branch place of business established by an
20 agent or agency, firm, corporation, or association shall be in
21 the active full-time charge of a licensed general lines agent
22 or life or health agent who is appointed to represent one or
23 more insurers. Any agent or agency, firm, corporation, or
24 association which has established one or more branch places of
25 business shall be required to have at least one licensed
26 general lines agent who is appointed to represent one or more
27 insurers at each location of the agency including its
28 headquarters location.
29 (b) Notwithstanding paragraph (a), the licensed agent
30 in charge of an insurance agency may also be the agent in
31 charge of additional branch office locations of the agency if
5
CODING: Words stricken are deletions; words underlined are additions.
Florida Senate - 2007 CS for SB 2702
597-2470-07
1 insurance activities requiring licensure as an insurance agent
2 do not occur at any location when the agent is not physically
3 present and unlicensed employees at the location do not engage
4 in any insurance activities requiring licensure as an
5 insurance agent or customer service representative.
6 Section 5. Subsection (2) of section 626.865, Florida
7 Statutes, is amended to read:
8 626.865 Public adjuster's qualifications, bond.--
9 (2) At the time of application for license as a public
10 adjuster, the applicant shall file with the department a bond
11 executed and issued by a surety insurer authorized to transact
12 such business in this state, in the amount of $50,000,
13 conditioned for the faithful performance of his or her duties
14 as a public adjuster under the license for which the applicant
15 has applied, and thereafter maintain the bond unimpaired
16 throughout the existence of the license and for at least 1
17 year after termination of the license for. The bond shall be
18 in favor of the department and shall specifically authorize
19 recovery by the department of the damages sustained in case
20 the licensee is guilty of fraud or unfair practices in
21 connection with his or her business as public adjuster. The
22 aggregate liability of the surety for all such damages shall
23 in no event exceed the amount of the bond. Such bond shall
24 not be terminated unless at least 30 days' written notice is
25 given to the licensee and filed with the department.
26 Section 6. Paragraph (c) of subsection (4) of section
27 626.869, Florida Statutes, is amended to read:
28 626.869 License, adjusters.--
29 (4)
30 (c) The department shall adopt rules necessary to
31 implement and administer the continuing education requirements
6
CODING: Words stricken are deletions; words underlined are additions.
Florida Senate - 2007 CS for SB 2702
597-2470-07
1 of this subsection. For good cause shown, the department may
2 grant an extension of time during which the requirements
3 imposed by this section may be completed, but such extension
4 of time may not exceed 1 year.
5 Section 7. Section 626.8698, Florida Statutes, is
6 amended to read:
7 626.8698 Disciplinary guidelines for public
8 adjusters.--The department may deny, suspend, or revoke the
9 license of a public adjuster, and administer a fine not to
10 exceed $5,000 per act, for any of the following:
11 (1) Violating any provision of this chapter or a rule
12 or order of the department office or commission;
13 (2) Receiving payment or anything of value as a result
14 of an unfair or deceptive practice;
15 (3) Receiving or accepting any fee, kickback, or other
16 thing of value pursuant to any agreement or understanding,
17 oral or otherwise; entering into a split-fee arrangement with
18 another person who is not a public adjuster; or being
19 otherwise paid or accepting payment for services that have not
20 been performed;
21 (4) Violating s. 316.066 or s. 817.234;
22 (5) Soliciting or otherwise taking advantage of a
23 person who is vulnerable, emotional, or otherwise upset as the
24 result of a trauma, accident, or other similar occurrence; or
25 (6) Violating any ethical rule of the department.
26 Section 8. Paragraphs (a) and (c) of section 626.921,
27 Florida Statutes, are amended to read:
28 626.921 Florida Surplus Lines Service Office.--
29 (5)(a) The association shall submit to the office a
30 plan of operation, and any amendments thereto, to provide
31 operating procedures for the administration of the service
7
CODING: Words stricken are deletions; words underlined are additions.
Florida Senate - 2007 CS for SB 2702
597-2470-07
1 office. The plan of operation and any amendments thereto shall
2 become effective upon approval by order of the office. The
3 association shall submit to the department an agents' manual,
4 and any amendments thereto, which shall provide administrative
5 procedures that surplus lines insurance agents must follow
6 with respect to their duties to the service office. The manual
7 shall be prepared in cooperation with the department, and any
8 changes, updates, or amendments shall be submitted to the
9 department before distribution. The manual shall be approved
10 by order of the department.
11 (c) All surplus lines agents licensed in this state
12 must comply with the plan of operation and the agent's manual.
13 Section 9. Section 626.9611, Florida Statutes, is
14 amended to read:
15 626.9611 Rules.--
16 (1) The department or commission may, in accordance
17 with chapter 120, adopt reasonable rules as are necessary or
18 proper to identify specific methods of competition or acts or
19 practices which are prohibited by s. 626.9541 or s. 626.9551,
20 but the rules shall not enlarge upon or extend the provisions
21 of ss. 626.9541 and 626.9551.
22 (2) The department and the commission shall, in
23 accordance with chapter 120, adopt rules to protect members of
24 the United States Armed Forces from dishonest or predatory
25 insurance sales practices by insurers and insurance agents.
26 The rules shall identify specific false, misleading,
27 deceptive, or unfair methods of competition, acts, or
28 practices which are prohibited by s. 626.9541 or s. 626.9551.
29 The rules shall be based upon model rules or model laws
30 adopted by the National Association of Insurance Commissioners
31 which identify certain insurance practices involving the
8
CODING: Words stricken are deletions; words underlined are additions.
Florida Senate - 2007 CS for SB 2702
597-2470-07
1 solicitation or sale of insurance and annuities to members of
2 the United States Armed Forces which are false, misleading,
3 deceptive, or unfair.
4 Section 10. For the 2007-2008 fiscal year, the sum of
5 $132,000 in nonrecurring funds is appropriated from the
6 Insurance Regulatory Trust Fund to the Department of Financial
7 Services for computer system changes necessary to implement
8 the provisions of s. 626.747, Florida Statutes.
9 Section 11. Except as otherwise expressly provided in
10 this act, this act shall take effect July 1, 2007.
11
12
13
14
15
16
17
18
19
20
21
22
23
24
25
26
27
28
29
30
31
9
CODING: Words stricken are deletions; words underlined are additions.
Florida Senate - 2007 CS for SB 2702
597-2470-07
1 STATEMENT OF SUBSTANTIAL CHANGES CONTAINED IN
COMMITTEE SUBSTITUTE FOR
2 Senate Bill 2702
3
4 The committee substitute provides the following changes:
5 1. Allows an insurance agent to be in charge of more than
one agency location.
6
2. Requires the Department of Financial Services (DFS) and
7 the Financial Services Commission to adopt rules to
protect service members of the United States Armed Forces
8 from dishonest and predatory insurance sales practices by
insurers and insurance agents.
9
3. Allows correspondence courses to be approved by the DFS
10 for satisfying the pre-licensing education requirements
for obtaining a life or health insurance agent license.
11
4. Specifies that the surety bond required for a public
12 adjuster must be maintained continuously and until one
year after termination of the license.
13
5. Provides that the current exemptions from taking the
14 examination for an adjuster's license for persons who
complete certain educational programs apply to persons
15 who are applying for an independent adjuster or company
employee adjuster license (and, therefore, do not apply
16 to applicants for a public adjuster licensee).
17 6. Allows the DFS to extend the deadline for up to one year
for an insurance adjuster to meet continuing education
18 requirements, for good cause.
19 7. Clarifies that the agent manual of the Florida Surplus
Lines Service Office must be approved by the DFS.
20
8. Provides an appropiation of $132,000 to the DFS from the
21 Insurance Regulatory Trust fund to make necessary
computer system changes to comply with the bill's
22 provisions.
23
24
25
26
27
28
29
30
31
10
CODING: Words stricken are deletions; words underlined are additions.