CS/HB 1003

1	A bill to be entitled
2	An act relating to insurance; providing a short title;
3	amending s. 626.171, F.S.; requiring that an applicant for
4	licensure as an insurance agent, customer representative,
5	adjuster, service representative, managing general agent,
6	or reinsurance intermediary provide to the Department of
7	Financial Services his or her contact and business
8	telephone numbers and e-mail address; amending s.
9	626.2815, F.S.; requiring persons licensed to solicit or
10	sell life insurance to complete a specified number of
11	hours in continuing education on the subject of
12	suitability in annuity and life insurance transactions;
13	amending s. 626.551, F.S.; requiring that a licensee
14	notify the department within 60 days after a change in
15	contact or business telephone numbers or e-mail address;
16	amending s. 626.9521, F.S.; providing for administrative
17	fines and criminal penalties for offenses involving
18	misleading representations or fraudulent comparisons or
19	omissions, the generation of unlawful fees and
20	commissions, or the use of fraudulent signatures; limiting
21	the aggregate amounts of fines; providing for other
22	administrative fines to supersede the administrative fines
23	and penalties provided by the act under certain
24	conditions; amending s. 626.9541, F.S.; revising the
25	elements of the offense known as "churning" to include
26	direct or indirect purchases made for the purpose of
27	earning fees or commissions; providing that the submission
28	of certain fraudulent signatures or the misrepresentation
29	of a licensee's qualifications constitute an unfair method
30	of competition and an unfair or deceptive act or practice;
31	amending s. 626.99, F.S.; revising requirements for life
32	insurance or annuity policies to increase the period of
33	time allowed for obtaining an unconditional refund;
34	requiring insurers for all types of annuities to provide a
35	buyer's guide and a policy summary to the buyer; amending
36	s. 627.0655, F.S.; expanding application of policyholder
37	loss or expense-related premium discounts; amending s.
38	627.4554, F.S.; revising the regulation of recommendations
39	relating to the sale of annuities to senior consumers;
40	redefining the term "annuity"; requiring that an agent
41	obtain financial and other information concerning the
42	senior consumer before executing a purchase or exchange of
43	an annuity; requiring that the agent perform a suitability
44	analysis relative to the investment he or she recommends
45	and document the analysis in writing; requiring an agent
46	to provide a comparison of current and recommended
47	products if the transaction involves the replacement or
48	exchange of an annuity; requiring an agent to provide
49	information about any surrender charges and tax
50	consequences; authorizing the department and Financial
51	Services Commission to adopt rules; amending s. 627.805,
52	F.S.; providing for regulation of the issuance and sale of
53	variable and indeterminate value contracts by the
54	department, the Office of Insurance Regulation, and the
55	Office of Financial Regulation; authorizing the department
56	and the commission to adopt rules; providing an effective
57	date for such rulemaking authority; providing for
58	applicability of such rules; providing effective dates.
59
60	Be It Enacted by the Legislature of the State of Florida:
61
62
63	Section 1.  This act may be cited as the "John and Patricia
64	Seibel Act."
65	Section 2.  Paragraph (a) of subsection (2) of section
66	626.171, Florida Statutes, is amended to read:
67	626.171  Application for license as an agent, customer
68	representative, adjuster, service representative, managing
69	general agent, or reinsurance intermediary.--
70	(2)  In the application, the applicant shall set forth:
71	(a)  His or her full name, age, social security number,
72	residence address, business address, and mailing address,
73	contact telephone numbers including a business telephone number,
74	and e-mail address.
75
76	However, the application must contain a statement that an
77	applicant is not required to disclose his or her race or
78	ethnicity, gender, or native language, that he or she will not
79	be penalized for not doing so, and that the department will use
80	this information exclusively for research and statistical
81	purposes and to improve the quality and fairness of the
82	examinations.
83	Section 3.  Paragraph (k) is added to subsection (3) of
84	section 626.2815, Florida Statutes, to read:
85	626.2815  Continuing education required; application;
86	exceptions; requirements; penalties.--
87	(3)
88	(k)  Effective January 1, 2009, and until January 1, 2010,
89	any person who holds a license to solicit or sell life insurance
90	in this state must complete a minimum of 3 hours in continuing
91	education, approved by the department, on the subject of
92	suitability in annuity and life insurance transactions. A
93	licensee may use the hours obtained under this paragraph to
94	satisfy the requirement for continuing education in ethics under
95	paragraph (a).
96	Section 4.  Section 626.551, Florida Statutes, is amended
97	to read:
98	626.551  Notice of change of address, name.--Every licensee
99	shall notify the department in writing within 60 days after a
100	change of name, residence address, principal business street
101	address, or mailing address, contact telephone numbers including
102	a business telephone number, or e-mail address. A Any licensed
103	agent who has moved his or her residence from this state shall
104	have his or her license and all appointments immediately
105	terminated by the department. Failure to notify the department
106	within the required time period shall result in a fine not to
107	exceed $250 for the first offense and, for subsequent offenses,
108	a fine of at least not less than $500 or suspension or
109	revocation of the license pursuant to s. 626.611 or s. 626.621.
110	Section 5.  Section 626.9521, Florida Statutes, is amended
111	to read:
112	626.9521  Unfair methods of competition and unfair or
113	deceptive acts or practices prohibited; penalties.--
114	(1)  No person shall engage in this state in any trade
115	practice which is defined in this part as, or determined
116	pursuant to s. 626.951 or s. 626.9561 to be, an unfair method of
117	competition or an unfair or deceptive act or practice involving
118	the business of insurance.
119	(2)  Except as provided in subsection (3), any person who
120	violates any provision of this part is shall be subject to a
121	fine in an amount not greater than $2,500 for each nonwillful
122	violation and not greater than $20,000 for each willful
123	violation. Fines under this subsection may not exceed an
124	aggregate amount of $10,000 for all nonwillful violations
125	arising out of the same action or an aggregate amount of
126	$100,000 for all willful violations arising out of the same
127	action. The fines authorized by this subsection may be imposed
128	in addition to any other applicable penalty.
129	(3)(a)  If a person violates s. 626.9541(1)(l), the offense
130	known as "twisting," or violates s. 626.9541(1)(aa), the offense
131	known as "churning," the person commits a misdemeanor of the
132	second degree, punishable as provided in s. 775.082, and an
133	administrative fine not greater than $5,000 shall be imposed for
134	each nonwillful violation or an administrative fine not greater
135	than $30,000 shall be imposed for each willful violation.
136	However, if the victim of such offense is 65 years of age or
137	older or the agent knew or should have known the victim suffered
138	from a mental incapacity, the person commits a misdemeanor of
139	the first degree, punishable as provided in s. 775.082, and an
140	administrative fine not greater than $5,000 shall be imposed for
141	each nonwillful violation or an administrative fine not greater
142	than $30,000 shall be imposed for each willful violation. To
143	impose criminal penalties under this paragraph, the practice of
144	"churning" or "twisting" must involve fraudulent conduct.
145	(b)  If a person violates s. 626.9541(1)(ee) by willfully
146	submitting fraudulent signatures on an application or policy-
147	related document, the person commits a felony of the third
148	degree, punishable as provided in s. 775.082, and an
149	administrative fine not greater than $5,000 shall be imposed for
150	each nonwillful violation or an administrative fine not greater
151	than $30,000 shall be imposed for each willful violation.
152	(c)  Administrative fines under this subsection may not
153	exceed an aggregate amount of $50,000 for all nonwillful
154	violations arising out of the same action or an aggregate amount
155	of $250,000 for all willful violations arising out of the same
156	action.
157	Section 6.  Any increase in the fines imposed under s.
158	626.9521, Florida Statutes, which exceeds the increase provided
159	by this act shall supersede the amendments made to that section
160	by this act if such increase is enacted during the 2008
161	legislative session and becomes law, and the amendments to s.
162	626.9521, Florida Statutes, made by this act shall not take
163	effect.
164	Section 7.  Paragraph (aa) of subsection (1) of section
165	626.9541, Florida Statutes, is amended, and paragraphs (ee) and
166	(ff) are added to that subsection, to read:
167	626.9541  Unfair methods of competition and unfair or
168	deceptive acts or practices defined.--
169	(1)  UNFAIR METHODS OF COMPETITION AND UNFAIR OR DECEPTIVE
170	ACTS.--The following are defined as unfair methods of
171	competition and unfair or deceptive acts or practices:
172	(aa)  Churning.--
173	1.  Churning is the practice whereby policy values in an
174	existing life insurance policy or annuity contract, including,
175	but not limited to, cash, loan values, or dividend values, and
176	in any riders to that policy or contract, are directly or
177	indirectly used utilized to purchase another insurance policy or
178	annuity contract with that same insurer for the purpose of
179	earning additional premiums, fees, commissions, or other
180	compensation:
181	a.  Without an objectively reasonable basis for believing
182	that the replacement or extraction will result in an actual and
183	demonstrable benefit to the policyholder;
184	b.  In a fashion that is fraudulent, deceptive, or
185	otherwise misleading or that involves a deceptive omission;
186	c.  When the applicant is not informed that the policy
187	values including cash values, dividends, and other assets of the
188	existing policy or contract will be reduced, forfeited, or used
189	utilized in the purchase of the replacing or additional policy
190	or contract, if this is the case; or
191	d.  Without informing the applicant that the replacing or
192	additional policy or contract will not be a paid-up policy or
193	that additional premiums will be due, if this is the case.
194
195	Churning by an insurer or an agent is an unfair method of
196	competition and an unfair or deceptive act or practice.
197	2.  Each insurer shall comply with sub-subparagraphs 1.c.
198	and 1.d. by disclosing to the applicant at the time of the offer
199	on a form designed and adopted by rule by the commission if,
200	how, and the extent to which the policy or contract values
201	(including cash value, dividends, and other assets) of a
202	previously issued policy or contract will be used to purchase a
203	replacing or additional policy or contract with the same
204	insurer. The form must shall include disclosure of the premium,
205	the death benefit of the proposed replacing or additional
206	policy, and the date when the policy values of the existing
207	policy or contract will be insufficient to pay the premiums of
208	the replacing or additional policy or contract.
209	3.  Each insurer shall adopt written procedures to
210	reasonably avoid churning of policies or contracts that it has
211	issued, and failure to adopt written procedures sufficient to
212	reasonably avoid churning shall be an unfair method of
213	competition and an unfair or deceptive act or practice.
214	(ee)  Fraudulent signatures on an application or policy-
215	related document.--Willfully submitting to an insurer on behalf
216	of a consumer an insurance application or policy-related
217	document bearing a false or fraudulent signature.
218	(ff)  Unlawful use of designations; misrepresentation of
219	agent qualifications.--
220	1.  A licensee may not, in any sales presentation or
221	solicitation for insurance, use a designation or title in such a
222	way as to falsely imply that the licensee:
223	a.  Possesses special financial knowledge or has obtained
224	specialized financial training; or
225	b.  Is certified or qualified to provide specialized
226	financial advice to senior citizens.
227	2.  A licensee may not use terms such as "financial
228	advisor" in such a way as to falsely imply that the licensee is
229	licensed or qualified to discuss, sell, or recommend financial
230	products other than insurance products.
231	3.  A licensee may not, in any sales presentation or
232	solicitation for insurance, falsely imply that he or she is
233	qualified to discuss, recommend, or sell securities or other
234	investment products in addition to insurance products.
235	4.  A licensee who also holds a designation as a certified
236	financial planner (CFP), chartered life underwriter (CLU),
237	chartered financial consultant (ChFC), life underwriter training
238	council fellow (LUTC), or the appropriate license to sell
239	securities from the Financial Industry Regulatory Authority
240	(FINRA) may inform the customer of those licenses or
241	designations and make recommendations in accordance with those
242	licenses or designations, and in so doing does not violate this
243	paragraph.
244	Section 8.  Paragraph (a) of subsection (4) of section
245	626.99, Florida Statutes, is amended to read:
246	626.99  Life insurance solicitation.--
247	(4)  DISCLOSURE REQUIREMENTS.--
248	(a)  The insurer shall provide to each prospective
249	purchaser a buyer's guide and a policy summary prior to
250	accepting the any applicant's initial premium or premium
251	deposit, unless the policy for which application is made
252	provides contains a provision for an unconditional refund for a
253	period of at least 14 10 days, or unless the policy summary
254	contains an offer of such an unconditional refund, in which
255	event the buyer's guide and policy summary must be delivered
256	with the policy or prior to delivery of the policy. With respect
257	to fixed annuities, the insurer shall provide to each
258	prospective purchaser a buyer's guide to annuities and a
259	contract summary as provided in the National Association of
260	Insurance Commissioners (NAIC) Model Annuity and Deposit Fund
261	Regulation and the policy must provide shall contain a provision
262	for an unconditional refund for a period of at least 14 10 days.
263	Section 9.  Section 627.0655, Florida Statutes, is amended
264	to read:
265	627.0655  Policyholder loss or expense-related premium
266	discounts.--An insurer or person authorized to engage in the
267	business of insurance in this state may include, in the premium
268	charged an insured for any policy, contract, or certificate of
269	insurance, a discount based on the fact that another policy,
270	contract, or certificate of any type has been purchased by the
271	insured from the same insurer or insurer group, the Citizens
272	Property Insurance Corporation created under s. 627.351(6) if
273	the same insurance agent is servicing both policies, or an
274	insurer that has removed the policy from the Citizens Property
275	Insurance Corporation if the same insurance agent is servicing
276	both policies.
277	Section 10.  Section 627.4554, Florida Statutes, is amended
278	to read:
279	627.4554  Annuity investments by seniors.--
280	(1)  PURPOSE; CONSTRUCTION.--
281	(a)  The purpose of this section is to set forth standards
282	and procedures for making recommendations to senior consumers
283	which result in a transaction involving annuity products to
284	appropriately address the insurance needs and financial
285	objectives of senior consumers at the time of the transaction.
286	(b)  A violation of Nothing in this section does not shall
287	be construed to create or imply a private cause of action for a
288	violation of this section.
289	(c)  Nothing in this section shall subject an insurer to
290	criminal or civil liability for the acts of independent
291	individuals not affiliated with that insurer for selling its
292	products, when such sales are made in a way not authorized by
293	the insurer.
294	(2)  APPLICATION.--This section applies to any
295	recommendation to purchase or exchange an annuity made to a
296	senior consumer by an insurance agent, or an insurer where no
297	agent is involved, and which, that results in the purchase or
298	exchange recommended.
299	(3)  DEFINITIONS.--For purposes of this section, the term:
300	(a)  "Annuity contract" means a fixed annuity, fixed equity
301	indexed annuity, or variable annuity that is individually
302	solicited, whether the product is classified as an individual
303	annuity or a group annuity.
304	(b)  "Recommendation" means advice provided by an insurance
305	agent, or an insurer if no insurance agent is involved, to an
306	individual senior consumer which results in a purchase or
307	exchange of an annuity in accordance with that advice.
308	(c)  "Senior consumer" means a person 65 years of age or
309	older. In the event of a joint purchase by more than one party,
310	a purchaser is considered to be a senior consumer if any of the
311	parties is age 65 or older.
312	(4)  DUTIES OF INSURERS AND INSURANCE AGENTS.--
313	(a)  In recommending to a senior consumer the purchase or
314	exchange of an annuity that or the exchange of an annuity that
315	results in another insurance transaction or series of insurance
316	transactions, an insurance agent, or an insurer if no insurance
317	agent is involved, must shall have an objectively reasonable
318	basis grounds for believing that the recommendation is suitable
319	for the senior consumer based on the basis of the facts
320	disclosed by the senior consumer as to his or her investments
321	and other insurance products and as to his or her financial
322	situation and needs.
323	(b)  Before executing a purchase or exchange of an annuity
324	resulting from a recommendation to a senior consumer, an
325	insurance agent, or an insurer if no insurance agent is
326	involved, shall make reasonable efforts to obtain information
327	concerning the suitability of senior consumer's financial
328	status, tax status, and investment objectives and such other
329	information used or considered to be reasonable by the insurance
330	agent, or the insurer if no agent is involved, in making the
331	recommendation. The information shall include, at a minimum:
332	1.  Personal information, including the age and sex of the
333	parties to the annuity and the ages and number of any
334	dependents;
335	2.  Tax status of the consumer;
336	3.  Investment objectives of the consumer;
337	4.  The source of the funds to be used to purchase the
338	annuity;
339	5.  The applicant's annual income;
340	6.  Intended use of the annuity;
341	7.  The applicant's existing assets, including investment
342	holdings;
343	8.  The applicant's liquid net worth and liquidity needs;
344	9.  The applicant's financial situation and needs;
345	10.  The applicant's risk tolerance; and
346	11.  Such other information used or considered to be
347	relevant by the insurance agent or insurer in making
348	recommendations to the consumer regarding the purchase or
349	exchange of an annuity contract.
350
351	This information shall be collected on a form adopted by rule by
352	the department and completed and signed by the applicant and
353	agent. Questions requesting this information must be presented
354	in at least 12-point type and be sufficiently clear so as to be
355	readily understandable by both the agent and the consumer. A
356	true and correct executed copy of the form shall be provided by
357	the agent to the insurer, or the third party that has contracted
358	with such insurer pursuant to subparagraph (f)3., within 10 days
359	after execution of the form, and shall be provided to the
360	consumer no later than the date of delivery of the contract or
361	contracts.
362	(c)1.  Except as provided under subparagraph 2., an
363	insurance agent, or an insurer if no insurance agent is
364	involved, has no shall not have any obligation to a senior
365	consumer under paragraph (a) related to any recommendation if
366	the senior consumer:
367	a.  Refuses to provide relevant information requested by
368	the insurer or insurance agent;
369	b.  Decides to enter into an insurance transaction that is
370	not based on a recommendation of the insurer or insurance agent;
371	or
372	c.  Fails to provide complete or accurate information.
373	2.  An insurer or insurance agent's recommendation subject
374	to subparagraph 1. shall be objectively reasonable under all the
375	circumstances actually known to the insurer or insurance agent
376	at the time of the recommendation.
377	3.  If the consumer refuses to provide relevant information
378	requested by the insurance agent or insurer, before the
379	execution of the sale the insurance agent or insurer shall
380	obtain a signed verification from the senior consumer on a form
381	adopted by rule by the department that he or she refuses to
382	provide the requested information and may be limiting
383	protections afforded by this section regarding the suitability
384	of the sale.
385	(d)  In addition to the information required by paragraph
386	(b), before the execution of a replacement or exchange of an
387	annuity contract resulting from a recommendation, the insurance
388	agent shall also provide, on a form adopted by rule by the
389	department, information concerning differences between each
390	existing annuity contract and the annuity contract being
391	recommended in order to determine the suitability of the
392	recommendation and its benefit to the consumer. A true and
393	correct executed copy of this form shall be provided by the
394	agent to the insurer, or the third party that has contracted
395	with such insurer pursuant to subparagraph (f)3., within 10 days
396	after execution of the form, and shall be provided to the
397	consumer no later than the date of delivery of the contract or
398	contracts. The information shall include, at a minimum:
399	1.  A comparison of the benefits, terms, and limitations
400	between the annuity contracts.
401	2.  A comparison of any fees and charges between the
402	annuity contracts.
403	3.  A written basis for the recommended exchange, including
404	the overall advantages and disadvantages to the consumer if the
405	recommendation is followed.
406	4.  Such other information used or considered to be
407	relevant by the insurance agent or the insurer in making
408	recommendations to the consumer regarding the replacement or
409	exchange of an annuity contract.
410	(e)  Prior to the execution of a purchase or exchange of an
411	annuity contract resulting from a recommendation, an agent shall
412	also disclose to the consumer that such purchase or exchange may
413	have tax consequences and that the applicant should contact his
414	or her tax advisor for more information.
415	(f)(d)1.  An insurer or insurance agent must shall ensure
416	that a system to supervise recommendations, which is reasonably
417	designed to achieve compliance with this section, is established
418	and maintained by complying with subparagraphs 3., 4., and 5.,
419	or shall establish and maintain such a system, including, but
420	not limited to:
421	a.  Maintaining written procedures.
422	b.  Conducting periodic reviews of its records that are
423	reasonably designed to assist in detecting and preventing
424	violations of this section.
425	2.  A managing general agent and an insurance agency shall
426	adopt a system established by an insurer to supervise
427	recommendations of its insurance agents which is reasonably
428	designed to achieve compliance with this section or shall
429	establish and maintain such a system, including, but not limited
430	to:
431	a.  Maintaining written procedures.
432	b.  Conducting periodic reviews of records that are
433	reasonably designed to assist in detecting and preventing
434	violations of this section.
435	3.  An insurer may contract with a third party, including a
436	managing general agent or an insurance agency, to establish and
437	maintain a system of supervision as required by subparagraph 1.
438	with respect to insurance agents under contract with or employed
439	by the third party.
440	4.  An insurer shall make reasonable inquiry to ensure that
441	such third party contracting under subparagraph 3. is performing
442	the functions required under subparagraph 1. and shall take such
443	action as is reasonable under the circumstances to enforce the
444	contractual obligation to perform the functions. An insurer may
445	comply with its obligation to make reasonable inquiry by:
446	a.  Annually obtaining a certification from a third party
447	senior manager who has responsibility for the delegated
448	functions that the manager has a reasonable basis to represent,
449	and does represent, that the third party is performing the
450	required functions.
451	b.  Based on reasonable selection criteria, periodically
452	selecting third parties contracting under subparagraph 3. for a
453	review to determine whether the third parties are performing the
454	required functions. The insurer shall perform any procedures
455	necessary to conduct the review which are reasonable under the
456	circumstances.
457	5.  An insurer that contracts with a third party pursuant
458	to subparagraph 3. and complies with the requirements specified
459	in subparagraph 4. is deemed to have fulfilled its
460	responsibilities under subparagraph 1.
461	6.  An insurer, managing general agent, or insurance agency
462	is not required by subparagraph 1. or subparagraph 2. to:
463	a.  Review or provide for review of all transactions
464	solicited by an insurance agent; or
465	b.  Include in its system of supervision an insurance
466	agent's recommendations to senior consumers of products other
467	than the annuities offered by the insurer, managing general
468	agent, or insurance agency.
469	7.  A managing general agent or insurance agency
470	contracting with an insurer pursuant to subparagraph 3. shall
471	promptly, when requested by the insurer pursuant to subparagraph
472	4., provide a certification as described in subparagraph 4. or
473	provide a clear statement that the managing general agent or
474	insurance agency is unable to meet the certification criteria.
475	8.  A person may not provide a certification under sub-
476	subparagraph 4.a. unless the person is a senior manager with
477	responsibility for the delegated functions and has a reasonable
478	basis for making the certification.
479	(5)  MITIGATION OF RESPONSIBILITY.--
480	(a)  The office may order an insurer to take reasonably
481	appropriate corrective action, including rescission of the
482	policy or contract and a full refund of the premiums paid or the
483	accumulation value, whichever is greater, for any senior
484	consumer harmed by a violation of this section by the insurer or
485	the insurer's insurance agent.
486	(b)  The department may order:
487	1.  An insurance agent to take reasonably appropriate
488	corrective action for any senior consumer harmed by a violation
489	of this section by the insurance agent.
490	2.  A managing general agency or insurance agency that
491	employs or contracts with an insurance agent to sell or solicit
492	the sale of annuities to senior consumers to take reasonably
493	appropriate corrective action for any senior consumer harmed by
494	a violation of this section by the insurance agent.
495	(c)  Any applicable penalty under the Florida Insurance
496	Code for a violation of paragraph (4)(a), paragraph (4)(b), or
497	subparagraph (4)(c)2. may be reduced or eliminated, according to
498	a schedule adopted by the office or the department, as
499	appropriate, if corrective action for the senior consumer was
500	taken promptly after a violation was discovered.
501	(6)  RECORDKEEPING.--
502	(a)  Insurers, managing general agents, insurance agencies,
503	and insurance agents shall each maintain or be able to make
504	available from the entity or entities responsible for
505	maintaining the records pursuant to paragraph (4)(f), to the
506	department or office, as appropriate, records of the information
507	collected from the senior consumer and other information used in
508	making the recommendations that were the basis for insurance
509	transactions for 5 years after the insurance transaction is
510	completed by the insurer. An insurer is permitted, but shall not
511	be required, to maintain documentation on behalf of an insurance
512	agent.
513	(b)  Records required to be maintained by this subsection
514	regulation may be maintained in paper, photographic,
515	microprocess, magnetic, mechanical, or electronic media, or by
516	any process that accurately reproduces the actual document.
517	(7)  EXEMPTIONS.--Unless otherwise specifically included,
518	this section does not apply to recommendations involving:
519	(a)  Direct-response solicitations where there is no
520	recommendation based on information collected from the senior
521	consumer pursuant to this section.
522	(b)  Contracts used to fund:
523	1.  An employee pension or welfare benefit plan that is
524	covered by the Employee Retirement and Income Security Act;
525	2.  A plan described by s. 401(a), s. 401(k), s. 403(b), s.
526	408(k), or s. 408(p) of the Internal Revenue Code of 1986, as
527	amended, if established or maintained by an employer;
528	3.  A government or church plan defined in s. 414 of the
529	Internal Revenue Code of 1986, as amended, a government or
530	church welfare benefit plan, or a deferred compensation plan of
531	a state or local government or tax-exempt organization under s.
532	457 of the Internal Revenue Code of 1986, as amended;
533	4.  A nonqualified deferred compensation arrangement
534	established or maintained by an employer or plan sponsor;
535	5.  Settlements of or assumptions of liabilities associated
536	with personal injury litigation or any dispute or claim
537	resolution process; or
538	6.  Prepaid funeral contracts.
539	(8)  APPLICATION TO VARIABLE ANNUITIES.--Compliance with
540	the Financial Industry Regulatory Authority National Association
541	of Securities Dealers Conduct Rules in effect on May 5, 2008
542	January 1, 2004, shall satisfy the requirements under this
543	section for the recommendation of variable annuities. This
544	section does not limit the department's ability to enforce the
545	provisions of this section with respect to insurance agents,
546	insurance agencies, and managing general agents, or the office's
547	ability to enforce the provisions of this section with respect
548	to insurers.
549	(9)  RULES.--The department and commission may adopt rules
550	to administer this section.
551	Section 11.  Section 627.805, Florida Statutes, is amended
552	to read:
553	627.805  Regulation of variable and indeterminate value
554	contracts; rules.--The Department of Financial Services and the
555	Office of Insurance Regulation office, notwithstanding any other
556	provision of law, shall have the sole authority to regulate the
557	issuance and sale of variable and indeterminate value contracts
558	pursuant to their respective authority as conferred by state
559	law. The Office of Financial Regulation shall regulate the sale
560	of variable and indeterminate value contracts pursuant to its
561	authority under chapter 517. The Department of Financial
562	Services and, when applicable, the Financial Services
563	Commission, may, and the commission has authority to adopt rules
564	pursuant to ss. 120.536(1) and 120.54 to implement the
565	provisions of this part.
566	Section 12.  The Department of Financial Services may adopt
567	rules to implement this act effective upon the act becoming a
568	law. Section 10 of this act and such implementing rules shall
569	take effect 60 days after the date on which the final rule is
570	adopted or January 1, 2009, whichever is later.
571	Section 13.  Except as otherwise expressly provided by this
572	act, this act shall take effect January 1, 2009.

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