CS/HB 411

1	A bill to be entitled
2	An act relating to limited insurance licenses; amending s.
3	624.501, F.S.; specifying fees for limited appointments as
4	motor vehicle rental insurance agents; amending s.
5	626.321, F.S.; revising provisions relating to limited
6	licenses to transact personal accident insurance to apply
7	to travel insurance; providing criteria and requirements;
8	specifying authorized entities; specifying applicable
9	coverage; providing limitations; providing entity training
10	requirements; revising provisions relating to limited
11	licenses to transact baggage and motor vehicle excess
12	liability insurance to apply to motor vehicle rental
13	insurance; providing criteria and requirements; specifying
14	authorized entities; specifying applicable coverage;
15	providing limitations; providing application requirements;
16	providing responsibilities of licensees; limiting sales of
17	certain insurance policies or certificates for limited
18	classes of business to certain insurers; providing an
19	effective date.
20
21	Be It Enacted by the Legislature of the State of Florida:
22
23	Section 1.  Subsection (9) of section 624.501, Florida
24	Statutes, is amended to read:
25	624.501  Filing, license, appointment, and miscellaneous
26	fees.--The department, commission, or office, as appropriate,
27	shall collect in advance, and persons so served shall pay to it
28	in advance, fees, licenses, and miscellaneous charges as
29	follows:
30	(9)(a)  Except as provided in paragraph (b), all limited
31	appointments as agent, as provided for in s. 626.321. Agent's
32	original appointment and biennial renewal or continuation
33	thereof, each insurer:
34	Appointment fee....$42.00
35	State tax....12.00
36	County tax....6.00
37	Total....$60.00
38	(b)  For all limited appointments as agent, as provided for
39	in s. 626.321(1)(d), the agent's original appointment and
40	biennial renewal or continuation thereof for each insurer shall
41	be equal to the number of offices, branch offices, or places of
42	business covered by the license multiplied by the fees set forth
43	in paragraph (a).
44	Section 2.  Paragraphs (c) and (d) of subsection (1) of
45	section 626.321, Florida Statutes, are amended, and subsection
46	(5) is added to that section, to read:
47	626.321  Limited licenses.--
48	(1)  The department shall issue to a qualified individual,
49	or a qualified individual or entity under paragraphs (c), (d),
50	(e), and (i), a license as agent authorized to transact a
51	limited class of business in any of the following categories:
52	(c)  Travel Personal accident insurance.--License covering
53	only policies and certificates of travel personal accident
54	insurance, which are subject to review by the office under s.
55	624.605(1)(q). Policies and certificates of travel insurance may
56	provide coverage for risks incidental to travel, planned travel,
57	or accommodations while traveling, including, but not limited
58	to, accidental death and dismemberment of a traveler; trip
59	cancellation, interruption, or delay; loss of or damage to
60	personal effects or travel documents; baggage delay; emergency
61	medical travel or evacuation of a traveler; or medical,
62	surgical, and hospital expenses related to an illness or
63	emergency of a traveler. Any such policy or certificate may be
64	issued for terms longer than 60 days, but each policy or
65	certificate must be limited to coverage for travel or use of
66	accommodations of no longer than 60 days covering the risks of
67	travel, except as provided in subparagraph 2.  The license may
68	be issued only:
69	1.  To a full-time salaried employee of a common carrier or
70	a full-time salaried employee or owner of a transportation
71	ticket agency and may authorize the sale of such ticket policies
72	only in connection with the sale of transportation tickets, or
73	to the full-time salaried employee of such an agent. No such
74	policy shall be for a duration of more than 48 hours or for the
75	duration of a specified one-way trip or round trip.
76	2.  To an entity or individual that is:
77	a.  The developer of a timeshare plan that is the subject
78	of an approved public offering statement under chapter 721;
79	b.  An exchange company operating an exchange program
80	approved under chapter 721;
81	c.  A managing entity operating a timeshare plan approved
82	under chapter 721;
83	d.  A seller of travel as defined in chapter 559; or
84	e.  A subsidiary or affiliate of any of the entities
85	described in sub-subparagraphs a.-d.
86
87	A licensee shall require each employee who offers policies or
88	certificates under this subparagraph to receive initial training
89	from a general lines agent or an insurer authorized under
90	chapter 624 to transact insurance within this state. For an
91	entity applying for a license as a travel insurance agent, the
92	fingerprinting requirement of this section applies only to the
93	president, secretary, and treasurer and to any other officer or
94	person who directs or controls the travel insurance operations
95	of the entity. To a full-time salaried employee of a business
96	which offers motor vehicles for rent or lease, or to a business
97	entity which offers motor vehicles for rent or lease. A business
98	office licensed or a person licensed pursuant to this
99	subparagraph may, as an agent of an insurer, transact insurance
100	that provides coverage for accidental personal injury or death
101	of the lessee and any passenger who is riding or driving with
102	the covered lessee in the rental motor vehicle if the lease or
103	rental agreement is for not more than 30 days, or if the lessee
104	is not provided coverage for more than 30 consecutive days per
105	lease period; however, if the lease is extended beyond 30 days,
106	the coverage may be extended one time only for a period not to
107	exceed an additional 30 days.
108	(d)  Baggage and Motor vehicle rental excess liability
109	insurance.--
110	1.  License covering only insurance of the risks set forth
111	in this paragraph when offered, sold, or solicited with and
112	incidental to the rental or lease of a motor vehicle and which
113	applies only to the motor vehicle that is the subject of the
114	lease or rental agreement and occupants of the motor vehicle:
115	a.  Excess motor vehicle liability insurance providing
116	coverage in excess of the standard liability limits provided by
117	the lessor in the lessor's lease to a person renting or leasing
118	a motor vehicle from the licensee's employer for liability
119	arising in connection with the negligent operation of the leased
120	or rented motor vehicle.
121	b.  Insurance covering the liability of the lessee to the
122	lessor for damage to the leased or rented motor vehicle.
123	c.  Insurance covering the loss of or damage to baggage,
124	personal effects, or travel documents of a person renting or
125	leasing a motor vehicle.
126	d.  Insurance covering accidental personal injury or death
127	of the lessee and any passenger who is riding or driving with
128	the covered lessee in the leased or rented motor vehicle.
129	2.  Insurance under a motor vehicle rental insurance
130	license may be issued only if the lease or rental agreement is
131	for no more than 60 days, the lessee is not provided coverage
132	for more than 60 consecutive days per lease period, and the
133	lessee is given written notice that his or her personal
134	insurance policy providing coverage on an owned motor vehicle
135	may provide coverage of such risks and that the purchase of the
136	insurance is not required in connection with the lease or rental
137	of a motor vehicle. If the lease is extended beyond 60 days, the
138	coverage may be extended one time only for a period not to
139	exceed an additional 60 days. Insurance may be provided to the
140	lessee as an additional insured on a policy issued to the
141	licensee's employer personal effects except as provided in
142	subparagraph 2.
143	3.  The license may be issued only:
144	a.  To a full-time salaried employee of a common carrier or
145	a full-time salaried employee or owner of a transportation
146	ticket agency, which person is engaged in the sale or handling
147	of transportation of baggage and personal effects of travelers,
148	and may authorize the sale of such insurance only in connection
149	with such transportation; or
150	b.  to the full-time salaried employee of a licensed
151	general lines agent or to a business entity that offers motor
152	vehicles for rent or lease if insurance sales activities
153	authorized by the license are in connection with and incidental
154	to the rental or lease of a motor vehicle.
155	a.  A license issued to a business entity that offers motor
156	vehicles for rent or lease shall encompass each office, branch
157	office, or place of business making use of the entity's business
158	name in order to offer, solicit, and sell insurance pursuant to
159	this paragraph.
160	b.  The application for licensure must list the name,
161	address, and phone number for each office, branch office, or
162	place of business that is to be covered by the license. The
163	licensee shall notify the department of the name, address, and
164	phone number of any new location that is to be covered by the
165	license before the new office, branch office, or place of
166	business engages in the sale of insurance pursuant to this
167	paragraph. The licensee shall notify the department within 30
168	days after closing or terminating an office, branch office, or
169	place of business. Upon receipt of the notice, the department
170	shall delete the office, branch office, or place of business
171	from the license. An entity applying for a license under this
172	sub-subparagraph:
173	(I)  Is required to submit only one application for a
174	license under s. 626.171. The requirements of s. 626.171(4)
175	shall apply only to the officers and directors of the entity
176	submitting the application.
177	(II)  Is required to obtain a license for each office,
178	branch office, or place of business making use of the entity's
179	business name by applying to the department for the license on a
180	simplified application form developed by rule of the department
181	for this purpose.
182	(III)  Is required to pay the applicable fees for a license
183	as prescribed in s. 624.501, be appointed under s. 626.112, and
184	pay the prescribed appointment fee under s. 624.501.
185	c.  A licensed and appointed entity is shall be directly
186	responsible and accountable for all acts of the licensee's
187	employees.
188
189	The purchaser of baggage insurance shall be provided written
190	information disclosing that the insured's homeowner's policy may
191	provide coverage for loss of personal effects and that the
192	purchase of such insurance is not required in connection with
193	the purchase of tickets or in connection with the lease or
194	rental of a motor vehicle.
195	2.  A business entity that offers motor vehicles for rent
196	or lease, may include lessees under a master contract providing
197	coverage to the lessor or may transact excess motor vehicle
198	liability insurance providing coverage in excess of the standard
199	liability limits provided by the lessor in its lease to a person
200	renting or leasing a motor vehicle from the licensee's employer
201	for liability arising in connection with the negligent operation
202	of the leased or rented motor vehicle, provided that the lease
203	or rental agreement is for not more than 30 days; that the
204	lessee is not provided coverage for more than 30 consecutive
205	days per lease period, and, if the lease is extended beyond 30
206	days, the coverage may be extended one time only for a period
207	not to exceed an additional 30 days; that the lessee is given
208	written notice that his or her personal insurance policy
209	providing coverage on an owned motor vehicle may provide
210	additional excess coverage; and that the purchase of the
211	insurance is not required in connection with the lease or rental
212	of a motor vehicle. The excess liability insurance may be
213	provided to the lessee as an additional insured on a policy
214	issued to the licensee's employer.
215	3.  A business entity that offers motor vehicles for rent
216	or lease, may, as an agent of an insurer, transact insurance
217	that provides coverage for the liability of the lessee to the
218	lessor for damage to the leased or rented motor vehicle if:
219	a.  The lease or rental agreement is for not more than 30
220	days; or the lessee is not provided coverage for more than 30
221	consecutive days per lease period, but, if the lease is extended
222	beyond 30 days, the coverage may be extended one time only for a
223	period not to exceed an additional 30 days;
224	b.  The lessee is given written notice that his or her
225	personal insurance policy that provides coverage on an owned
226	motor vehicle may provide such coverage with or without a
227	deductible; and
228	c.  The purchase of the insurance is not required in
229	connection with the lease or rental of a motor vehicle.
230	(5)  Nothing in this section shall permit the sale of an
231	insurance policy or certificate for any limited class of
232	business in a category identified under subsection (1) by a
233	person or entity other than an insurance policy or certificate
234	offered by an authorized insurer in this state or an eligible
235	surplus lines insurer in this state.
236	Section 3.  This act shall take effect July 1, 2007.

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