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, other than a policy or certificate providing
66	coverage for air ambulatory services only, must be limited to
67	coverage for travel or use of accommodations of no longer than
68	60 days covering the risks of travel, except as provided in
69	subparagraph 2.  The license may be issued only:
70	1.  To a full-time salaried employee of a common carrier or
71	a full-time salaried employee or owner of a transportation
72	ticket agency and may authorize the sale of such ticket policies
73	only in connection with the sale of transportation tickets, or
74	to the full-time salaried employee of such an agent. No such
75	policy shall be for a duration of more than 48 hours or for the
76	duration of a specified one-way trip or round trip.
77	2.  To an entity or individual that is:
78	a.  The developer of a timeshare plan that is the subject
79	of an approved public offering statement under chapter 721;
80	b.  An exchange company operating an exchange program
81	approved under chapter 721;
82	c.  A managing entity operating a timeshare plan approved
83	under chapter 721;
84	d.  A seller of travel as defined in chapter 559; or
85	e.  A subsidiary or affiliate of any of the entities
86	described in sub-subparagraphs a.-d.
87
88	A licensee shall require each employee who offers policies or
89	certificates under this subparagraph to receive initial training
90	from a general lines agent or an insurer authorized under
91	chapter 624 to transact insurance within this state. For an
92	entity applying for a license as a travel insurance agent, the
93	fingerprinting requirement of this section applies only to the
94	president, secretary, and treasurer and to any other officer or
95	person who directs or controls the travel insurance operations
96	of the entity. To a full-time salaried employee of a business
97	which offers motor vehicles for rent or lease, or to a business
98	entity which offers motor vehicles for rent or lease. A business
99	office licensed or a person licensed pursuant to this
100	subparagraph may, as an agent of an insurer, transact insurance
101	that provides coverage for accidental personal injury or death
102	of the lessee and any passenger who is riding or driving with
103	the covered lessee in the rental motor vehicle if the lease or
104	rental agreement is for not more than 30 days, or if the lessee
105	is not provided coverage for more than 30 consecutive days per
106	lease period; however, if the lease is extended beyond 30 days,
107	the coverage may be extended one time only for a period not to
108	exceed an additional 30 days.
109	(d)  Baggage and Motor vehicle rental excess liability
110	insurance.--
111	1.  License covering only insurance of the risks set forth
112	in this paragraph when offered, sold, or solicited with and
113	incidental to the rental or lease of a motor vehicle and which
114	applies only to the motor vehicle that is the subject of the
115	lease or rental agreement and occupants of the motor vehicle:
116	a.  Excess motor vehicle liability insurance providing
117	coverage in excess of the standard liability limits provided by
118	the lessor in the lessor's lease to a person renting or leasing
119	a motor vehicle from the licensee's employer for liability
120	arising in connection with the negligent operation of the leased
121	or rented motor vehicle.
122	b.  Insurance covering the liability of the lessee to the
123	lessor for damage to the leased or rented motor vehicle.
124	c.  Insurance covering the loss of or damage to baggage,
125	personal effects, or travel documents of a person renting or
126	leasing a motor vehicle.
127	d.  Insurance covering accidental personal injury or death
128	of the lessee and any passenger who is riding or driving with
129	the covered lessee in the leased or rented motor vehicle.
130	2.  Insurance under a motor vehicle rental insurance
131	license may be issued only if the lease or rental agreement is
132	for no more than 60 days, the lessee is not provided coverage
133	for more than 60 consecutive days per lease period, and the
134	lessee is given written notice that his or her personal
135	insurance policy providing coverage on an owned motor vehicle
136	may provide coverage of such risks and that the purchase of the
137	insurance is not required in connection with the lease or rental
138	of a motor vehicle. If the lease is extended beyond 60 days, the
139	coverage may be extended one time only for a period not to
140	exceed an additional 60 days. Insurance may be provided to the
141	lessee as an additional insured on a policy issued to the
142	licensee's employer personal effects except as provided in
143	subparagraph 2.
144	3.  The license may be issued only:
145	a.  To a full-time salaried employee of a common carrier or
146	a full-time salaried employee or owner of a transportation
147	ticket agency, which person is engaged in the sale or handling
148	of transportation of baggage and personal effects of travelers,
149	and may authorize the sale of such insurance only in connection
150	with such transportation; or
151	b.  to the full-time salaried employee of a licensed
152	general lines agent or to a business entity that offers motor
153	vehicles for rent or lease if insurance sales activities
154	authorized by the license are in connection with and incidental
155	to the rental or lease of a motor vehicle.
156	a.  A license issued to a business entity that offers motor
157	vehicles for rent or lease shall encompass each office, branch
158	office, or place of business making use of the entity's business
159	name in order to offer, solicit, and sell insurance pursuant to
160	this paragraph.
161	b.  The application for licensure must list the name,
162	address, and phone number for each office, branch office, or
163	place of business that is to be covered by the license. The
164	licensee shall notify the department of the name, address, and
165	phone number of any new location that is to be covered by the
166	license before the new office, branch office, or place of
167	business engages in the sale of insurance pursuant to this
168	paragraph. The licensee shall notify the department within 30
169	days after closing or terminating an office, branch office, or
170	place of business. Upon receipt of the notice, the department
171	shall delete the office, branch office, or place of business
172	from the license. An entity applying for a license under this
173	sub-subparagraph:
174	(I)  Is required to submit only one application for a
175	license under s. 626.171. The requirements of s. 626.171(4)
176	shall apply only to the officers and directors of the entity
177	submitting the application.
178	(II)  Is required to obtain a license for each office,
179	branch office, or place of business making use of the entity's
180	business name by applying to the department for the license on a
181	simplified application form developed by rule of the department
182	for this purpose.
183	(III)  Is required to pay the applicable fees for a license
184	as prescribed in s. 624.501, be appointed under s. 626.112, and
185	pay the prescribed appointment fee under s. 624.501.
186	c.  A licensed and appointed entity is shall be directly
187	responsible and accountable for all acts of the licensee's
188	employees.
189
190	The purchaser of baggage insurance shall be provided written
191	information disclosing that the insured's homeowner's policy may
192	provide coverage for loss of personal effects and that the
193	purchase of such insurance is not required in connection with
194	the purchase of tickets or in connection with the lease or
195	rental of a motor vehicle.
196	2.  A business entity that offers motor vehicles for rent
197	or lease, may include lessees under a master contract providing
198	coverage to the lessor or may transact excess motor vehicle
199	liability insurance providing coverage in excess of the standard
200	liability limits provided by the lessor in its lease to a person
201	renting or leasing a motor vehicle from the licensee's employer
202	for liability arising in connection with the negligent operation
203	of the leased or rented motor vehicle, provided that the lease
204	or rental agreement is for not more than 30 days; that the
205	lessee is not provided coverage for more than 30 consecutive
206	days per lease period, and, if the lease is extended beyond 30
207	days, the coverage may be extended one time only for a period
208	not to exceed an additional 30 days; that the lessee is given
209	written notice that his or her personal insurance policy
210	providing coverage on an owned motor vehicle may provide
211	additional excess coverage; and that the purchase of the
212	insurance is not required in connection with the lease or rental
213	of a motor vehicle. The excess liability insurance may be
214	provided to the lessee as an additional insured on a policy
215	issued to the licensee's employer.
216	3.  A business entity that offers motor vehicles for rent
217	or lease, may, as an agent of an insurer, transact insurance
218	that provides coverage for the liability of the lessee to the
219	lessor for damage to the leased or rented motor vehicle if:
220	a.  The lease or rental agreement is for not more than 30
221	days; or the lessee is not provided coverage for more than 30
222	consecutive days per lease period, but, if the lease is extended
223	beyond 30 days, the coverage may be extended one time only for a
224	period not to exceed an additional 30 days;
225	b.  The lessee is given written notice that his or her
226	personal insurance policy that provides coverage on an owned
227	motor vehicle may provide such coverage with or without a
228	deductible; and
229	c.  The purchase of the insurance is not required in
230	connection with the lease or rental of a motor vehicle.
231	(5)  Nothing in this section shall permit the sale of an
232	insurance policy or certificate for any limited class of
233	business in a category identified under subsection (1) by a
234	person or entity other than an insurance policy or certificate
235	offered by an authorized insurer in this state or an eligible
236	surplus lines insurer in this state.
237	Section 3.  This act shall take effect January 1, 2008.

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