1

The Committee on Banking and Insurance (Gaetz) recommended the

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following amendment:

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4

     Senate Amendment (with title amendment)

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     Delete everything after the enacting clause

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and insert:

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     Section 1.  Subsection (5) of section 624.501, Florida

9

Statutes, is amended, and subsection (29) is added to that

10

section, to read:

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     624.501  Filing, license, appointment, and miscellaneous

12

fees.--The department, commission, or office, as appropriate,

13

shall collect in advance, and persons so served shall pay to it

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in advance, fees, licenses, and miscellaneous charges as

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follows:

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     (5) All insurance representatives and property insurance

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appraisal umpires, application for license, each filing, filing

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fee....$50.00

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     (29) Property appraisal umpire original appointment,

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biennial renewal, or continuation by the licensee....$50.00

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     Section 2.  Present subsections (16), (17), and (18) of

22

section 626.015, Florida Statutes, are renumbered as subsections

23

(18), (19), and (20), respectively, and new subsections (16) and

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(17) are added to that section, to read:

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     626.015  Definitions.--As used in this part:

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     (16) "Property insurance loss appraiser" has the same

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meaning as in s. 626.9933.

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     (17) "Property insurance appraisal umpire" has the same

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meaning as in s. 626.9933.

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     Section 3.  Subsection (1) of section 626.016, Florida

31

Statutes, is amended to read:

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     626.016  Powers and duties of department, commission, and

33

office.--

34

     (1)  The powers and duties of the Chief Financial Officer

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and the department specified in this part apply only with

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respect to insurance agents, insurance agencies, managing

37

general agents, insurance adjusters, reinsurance intermediaries,

38

viatical settlement brokers, customer representatives, service

39

representatives, and property insurance appraisal umpires

40

agencies.

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     Section 4.  Subsection (1) of section 626.022, Florida

42

Statutes, is amended to read:

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     626.022  Scope of part.--

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     (1) This part applies as to insurance agents, service

45

representatives, adjusters, property insurance appraisal

46

umpires, and insurance agencies; as to any and all kinds of

47

insurance; and as to stock insurers, mutual insurers, reciprocal

48

insurers, and all other types of insurers, except that:

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     (a) It does not apply as to reinsurance, except that ss.

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626.011-626.022, ss. 626.112-626.181, ss. 626.191-626.211, ss.

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626.291-626.301, s. 626.331, ss. 626.342-626.521, ss. 626.541-

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626.591, and ss. 626.601-626.711 shall apply as to reinsurance

53

intermediaries as defined in s. 626.7492.

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     (b) The applicability of this chapter as to fraternal

55

benefit societies shall be as provided in chapter 632.

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     (c)  It does not apply to a bail bond agent, as defined in

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s. 648.25, except as provided in chapter 648 or chapter 903.

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     (d) It This part does not apply to a certified public

59

accountant licensed under chapter 473 who is acting within the

60

scope of the practice of public accounting, as defined in s.

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473.302, if provided that the activities of the certified public

62

accountant are limited to advising a client of the necessity of

63

obtaining insurance, the amount of insurance needed, or the line

64

of coverage needed, and if provided that the certified public

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accountant does not directly or indirectly receive or share in

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any commission or referral fee.

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     Section 5.  Section 626.112, Florida Statutes, is amended

68

to read:

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     626.112  License and appointment required; agents, customer

70

representatives, adjusters, insurance agencies, service

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representatives, managing general agents, and property insurance

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appraisal umpires.--

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     (1)(a)  No person may be, act as, or advertise or hold

74

himself or herself out to be an insurance agent, insurance

75

adjuster, or customer representative unless he or she is

76

currently licensed by the department and appointed by an

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appropriate appointing entity or person.

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     (b)  Except as provided in subsection (6) or in applicable

79

department rules, and in addition to other conduct described in

80

this chapter with respect to particular types of agents, a

81

license as an insurance agent, service representative, customer

82

representative, or limited customer representative is required

83

in order to engage in the solicitation of insurance. For

84

purposes of this requirement, as applicable to any of the

85

license types described in this section, the solicitation of

86

insurance is the attempt to persuade any person to purchase an

87

insurance product by:

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     1.  Describing the benefits or terms of insurance coverage,

89

including premiums or rates of return;

90

     2.  Distributing an invitation to contract to prospective

91

purchasers;

92

     3.  Making general or specific recommendations as to

93

insurance products;

94

     4.  Completing orders or applications for insurance

95

products;

96

     5.  Comparing insurance products, advising as to insurance

97

matters, or interpreting policies or coverages; or

98

     6.  Offering or attempting to negotiate on behalf of

99

another person a viatical settlement contract as defined in s.

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626.9911.

101

102

However, an employee leasing company licensed pursuant to

103

chapter 468 which is seeking to enter into a contract with an

104

employer that identifies products and services offered to

105

employees may deliver proposals for the purchase of employee

106

leasing services to prospective clients of the employee leasing

107

company setting forth the terms and conditions of doing

108

business; classify employees as permitted by s. 468.529; collect

109

information from prospective clients and other sources as

110

necessary to perform due diligence on the prospective client and

111

to prepare a proposal for services; provide and receive

112

enrollment forms, plans, and other documents; and discuss or

113

explain in general terms the conditions, limitations, options,

114

or exclusions of insurance benefit plans available to the client

115

or employees of the employee leasing company were the client to

116

contract with the employee leasing company. Any advertising

117

materials or other documents describing specific insurance

118

coverages must identify and be from a licensed insurer or its

119

licensed agent or a licensed and appointed agent employed by the

120

employee leasing company. The employee leasing company may not

121

advise or inform the prospective business client or individual

122

employees of specific coverage provisions, exclusions, or

123

limitations of particular plans. As to clients for which the

124

employee leasing company is providing services pursuant to s.

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468.525(4), the employee leasing company may engage in

126

activities permitted by ss. 626.7315, 626.7845, and 626.8305,

127

subject to the restrictions specified in those sections. If a

128

prospective client requests more specific information concerning

129

the insurance provided by the employee leasing company, the

130

employee leasing company must refer the prospective business

131

client to the insurer or its licensed agent or to a licensed and

132

appointed agent employed by the employee leasing company.

133

     (2)  No agent or customer representative shall solicit or

134

otherwise transact as agent or customer representative, or

135

represent or hold himself or herself out to be an agent or

136

customer representative as to, any kind or kinds of insurance

137

for as to which he or she is not then licensed and appointed.

138

     (3)  No person shall act as an adjuster as to any class of

139

business for which he or she is not then licensed and appointed.

140

     (4)  No person shall be, act as, or represent or hold

141

himself or herself out to be a service representative unless he

142

or she then holds a currently effective service representative

143

license and appointment. This subsection does not apply as to

144

similar representatives or employees of casualty insurers whose

145

duties are restricted to health insurance.

146

     (5)  No person shall be, act as, or represent or hold

147

himself or herself out to be a managing general agent unless he

148

or she then holds a currently effective managing general agent

149

license and appointment.

150

     (6)  An individual employed by a life or health insurer as

151

an officer or other salaried representative may solicit and

152

effect contracts of life insurance or annuities or of health

153

insurance, without being licensed as an agent, when and only if

154

when he or she is accompanied by and solicits for and on the

155

behalf of a licensed and appointed agent.

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     (7)(a) Effective October 1, 2006, No individual, firm,

157

partnership, corporation, association, or any other entity shall

158

act in its own name or under a trade name, directly or

159

indirectly, as an insurance agency, unless it complies with s.

160

626.172 with respect to possessing an insurance agency license

161

for each place of business at which it engages in any activity

162

which may be performed only by a licensed insurance agent. Each

163

agency engaged in business in this state before January 1, 2003,

164

which is wholly owned by insurance agents currently licensed and

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appointed under this chapter, each incorporated agency whose

166

voting shares are traded on a securities exchange, each agency

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designated and subject to supervision and inspection as a branch

168

office under the rules of the National Association of Securities

169

Dealers, and each agency whose primary function is offering

170

insurance as a service or member benefit to members of a

171

nonprofit corporation may file an application for registration

172

in lieu of licensure in accordance with s. 626.172(3). Each

173

agency engaged in business before October 1, 2006, shall file an

174

application for licensure or registration on or before October

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1, 2006.

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     1.  If an agency is required to be licensed but fails to

177

file an application for licensure in accordance with this

178

section, the department shall impose on the agency an

179

administrative penalty in an amount of up to $10,000.

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     2.  If an agency is eligible for registration but fails to

181

file an application for registration or an application for

182

licensure in accordance with this section, the department shall

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impose on the agency an administrative penalty in an amount of

184

up to $5,000.

185

     (b)  A registered insurance agency shall, as a condition

186

precedent to continuing business, obtain an insurance agency

187

license if the department finds that, with respect to any

188

majority owner, partner, manager, director, officer, or other

189

person who manages or controls the agency, any person has:

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     1.  Been found guilty of, or has pleaded guilty or nolo

191

contendere to, a felony in this state or any other state

192

relating to the business of insurance or to an insurance agency,

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without regard to whether a judgment of conviction has been

194

entered by the court having jurisdiction of the cases.

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     2.  Employed any individual in a managerial capacity or in

196

a capacity dealing with the public who is under an order of

197

revocation or suspension issued by the department. An insurance

198

agency may request, on forms prescribed by the department,

199

verification of any person's license status. If a request is

200

mailed within 5 working days after an employee is hired, and the

201

employee's license is currently suspended or revoked, the agency

202

shall not be required to obtain a license, if the unlicensed

203

person's employment is immediately terminated.

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     3.  Operated the agency or permitted the agency to be

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operated in violation of s. 626.747.

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     4.  With such frequency as to have made the operation of

207

the agency hazardous to the insurance-buying public or other

208

persons:

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     a.  Solicited or handled controlled business. This

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subparagraph shall not prohibit the licensing of any lending or

211

financing institution or creditor, with respect to insurance

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only, under credit life or disability insurance policies of

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borrowers from the institutions, which policies are subject to

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part IX of chapter 627.

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     b.  Misappropriated, converted, or unlawfully withheld

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moneys belonging to insurers, insureds, beneficiaries, or others

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and received in the conduct of business under the license.

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     c.  Unlawfully rebated, attempted to unlawfully rebate, or

219

unlawfully divided or offered to divide commissions with

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another.

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     d.  Misrepresented any insurance policy or annuity

222

contract, or used deception with regard to any policy or

223

contract, done either in person or by any form of dissemination

224

of information or advertising.

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     e.  Violated any provision of this code or any other law

226

applicable to the business of insurance in the course of dealing

227

under the license.

228

     f.  Violated any lawful order or rule of the department.

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     g.  Failed or refused, upon demand, to pay over to any

230

insurer he or she represents or has represented any money coming

231

into his or her hands belonging to the insurer.

232

     h.  Violated the provision against twisting as defined in

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s. 626.9541(1)(l).

234

     i.  In the conduct of business, engaged in unfair methods

235

of competition or in unfair or deceptive acts or practices, as

236

prohibited under part IX of this chapter.

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     j.  Willfully overinsured any property insurance risk.

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     k.  Engaged in fraudulent or dishonest practices in the

239

conduct of business arising out of activities related to

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insurance or the insurance agency.

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     l.  Demonstrated lack of fitness or trustworthiness to

242

engage in the business of insurance arising out of activities

243

related to insurance or the insurance agency.

244

     m.  Authorized or knowingly allowed individuals to transact

245

insurance who were not then licensed as required by this code.

246

     5.  Knowingly employed any person who within the preceding

247

3 years has had his or her relationship with an agency

248

terminated in accordance with paragraph (d).

249

     6.  Willfully circumvented the requirements or prohibitions

250

of this code.

251

     (8)  No insurance agent, insurance agency, or other person

252

licensed under the Insurance Code may pay any fee or other

253

consideration to an unlicensed person other than an insurance

254

agency for the referral of prospective purchasers to an

255

insurance agent which is in any way dependent upon whether the

256

referral results in the purchase of an insurance product.

257

     (9)  Any person who knowingly transacts insurance or

258

otherwise engages in insurance activities in this state without

259

a license in violation of this section commits a felony of the

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third degree, punishable as provided in s. 775.082, s. 775.083,

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or s. 775.084.

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     (10) Effective July 1, 2009, a person may not act as,

263

represent himself or herself as, or hold himself or herself out

264

to be a property insurance appraisal umpire unless he or she

265

holds a current property insurance appraisal umpire license

266

issued by the department.

267

     Section 6.  Part XII of chapter 626, Florida Statutes,

268

consisting of sections 626.9931, 626.9932, 626.9933, 626.9934,

269

626.9935, 626.9936, 626.9937, 626.9938, 626.9939, 626.9940,

270

626.9941, 626.9942, and 626.9943, is created to read:

271

     626.9931 Purpose.--The Legislature finds that it is in the

272

interest of the public welfare to regulate property insurance

273

loss appraisers and property insurance appraisal umpires in this

274

state.

275

     626.9932 Scope of part.--This part applies to residential

276

and commercial residential property insurance contracts that

277

contain an appraisal clause and to the umpires and appraisers

278

who participate in the appraisal process as a result of an

279

appraisal clause.

280

     626.9933 Definitions.--As used in this part, the term:

281

     (1) "Appraisal" means the process of estimating or

282

evaluating actual cash value, the amount of loss, or the cost of

283

repair or replacement of property for the purpose of quantifying

284

the monetary value of a property loss claim when an insurer and

285

an insured have failed to mutually agree on the value of the

286

loss pursuant to a residential or commercial residential

287

property insurance contract that provides for the resolution of

288

a claim dispute by appraisal.

289

     (2) "Competent" means properly or sufficiently qualified

290

or capable to perform an appraisal.

291

     (3) "Independent" means not subject to control,

292

restriction, modification, or limitation by the appointing

293

party.

294

     (4) "Property insurance appraisal umpire" or "umpire"

295

means a competent, independent, and impartial third party

296

selected by the appraisers for the insurer and the insured to

297

resolve issues for which the appraisers are unable to reach an

298

agreement in the course of the appraisal process pursuant to a

299

residential or commercial residential property insurance

300

contract that provides for the resolution of a claim dispute by

301

appraisal.

302

     (5) "Property insurance loss appraiser" or "appraiser"

303

mean a competent and independent third party selected by an

304

insurer or an insured to develop an appraisal for purposes of

305

the appraisal process under a residential or commercial

306

residential property insurance contract that provides for the

307

resolution of a claim dispute by appraisal.

308

     626.9934 Appraisal umpire application; fingerprinting

309

required; umpire list.--

310

     (1) Application for a license under this part shall be

311

made as provided in s. 626.171 and related sections of this

312

code.

313

     (2) At the time of application, the applicant must be

314

fingerprinted by a law enforcement agency or other entity

315

approved by the department and must pay the fingerprint

316

processing fee specified in s. 624.501. Fingerprints must be

317

processed in accordance with s. 624.34.

318

     (3) The department shall develop and maintain as a public

319

record a current list of licensed property insurance appraisal

320

umpires.

321

     626.9935 Rulemaking authority.--The department may adopt

322

rules to administer the requirements of this part pursuant to

323

ss. 120.536(1) and 120.54.

324

     626.9936 Qualifications for licensure as a property

325

insurance appraisal umpire.--

326

     (1) The department may not issue a license as a property

327

insurance appraisal umpire to any individual found by it to be

328

untrustworthy or incompetent, or who has not met the following

329

qualifications:

330

     (a) The applicant has filed an application with the

331

department in accordance with s. 626.171;

332

     (b) The applicant is a natural person who is at least 18

333

years of age;

334

     (c) The applicant is a United States citizen or legal

335

alien who possesses work authorization from the United States

336

Bureau of Citizenship and Immigration Services; and

337

     (d) The applicant has completed the education, experience,

338

or licensing requirements in s. 626.9937.

339

     (2) An incomplete application expires 6 months after the

340

date it is received.

341

     (3) An applicant seeking to become licensed under this

342

part may not be rejected solely by virtue of membership or lack

343

of membership in any particular appraisal organization.

344

     626.9937 Professional or educational requirements for

345

insurance appraisal umpires applicants.--The department may not

346

issue a license to an applicant for licensure as a property

347

insurance appraisal umpire unless the applicant meets one of the

348

following requirements:

349

     (1) The applicant is currently licensed, registered,

350

certified, or approved as an engineer as defined in s. 471.005,

351

or as a retired professional engineer as defined in s. 471.005

352

and has taught or successfully completed 4 hours of classroom

353

coursework, approved by the department, specifically related to

354

construction, building codes, appraisal procedure, appraisal

355

preparation, and any other related material deemed appropriate

356

by the department.

357

     (2) The applicant is currently or, within the 5 years

358

immediately preceding the date on which the application is filed

359

with the department, has been licensed, registered, certified,

360

or approved as a general contractor, building contractor, or

361

residential contractor as defined in s. 489.105 and has taught

362

or successfully completed 4 hours of classroom coursework,

363

approved by the department, specifically related to

364

construction, building codes, appraisal procedure, appraisal

365

preparation, and any other related material deemed appropriate

366

by the department.

367

     (3) The applicant is currently or, within the 5 years

368

immediately preceding the date on which the application is filed

369

with the department, has been licensed or registered as an

370

architect to engage in the practice of architecture pursuant to

371

part I of chapter 481 and has taught or successfully completed 4

372

hours of classroom coursework, approved by the department,

373

specifically related to construction, building codes, appraisal

374

procedure, appraisal preparation, and any other related material

375

deemed appropriate by the department.

376

     (4) The applicant is currently or, within the 5 years

377

immediately preceding the date on which the application is filed

378

with the department, has been a qualified geologist or

379

professional geologist as defined in s. 492.102 and has taught

380

or successfully completed 4 hours of classroom coursework,

381

approved by the department, specifically related to

382

construction, building codes, appraisal procedure, appraisal

383

preparation, and any other related material deemed appropriate

384

by the department.

385

     (5) The applicant is currently or, within the 5 years

386

immediately preceding the date on which the application is filed

387

with the department, has been licensed as a certified public

388

accountant as defined in s. 473.302 and has taught or

389

successfully completed 4 hours of classroom coursework, approved

390

by the department, specifically related to construction,

391

building codes, appraisal procedure, appraisal preparation, and

392

any other related material deemed appropriate by the department.

393

     (6) The applicant is currently or, within the 5 years

394

immediately preceding the date on which the application is filed

395

with the department, has been licensed as an attorney at law in

396

this state and has taught or successfully completed 4 hours of

397

classroom coursework, approved by the department, specifically

398

related to construction, building codes, appraisal procedure,

399

appraisal preparation, and any other related material deemed

400

appropriate by the department.

401

     (7) The applicant has received a baccalaureate degree from

402

an accredited 4-year college in the field of engineering,

403

architecture, or building construction and has taught or

404

successfully completed 4 hours of classroom coursework, approved

405

by the department, specifically related to construction,

406

building codes, appraisal procedure, appraisal preparation, and

407

any other related material deemed appropriate by the department.

408

     (8) The applicant is currently licensed as an all-lines or

409

property and casualty adjuster pursuant to part VI and:

410

     (a) Has 1 year of proven experience as an employee of a

411

general contractor, building contractor, or residential

412

contractor;

413

     (b) Has received a minimum of 8 semester hours or 12

414

quarter hours of credit from an accredited college in the field

415

of accounting, geology, engineering, architecture, or building

416

construction;

417

     (c) Has taught or successfully completed 4 hours of

418

classroom coursework, approved by the department, specifically

419

related to construction, building codes, appraisal procedure,

420

appraisal preparation, and any other related material deemed

421

appropriate by the department; or

422

     (d) Has acted as an appraiser or umpire in a minimum of 20

423

appraisal proceedings under a property insurance contract.

424

     (9) The applicant has successfully completed 40 hours of

425

classroom coursework, approved by the department, specifically

426

related to construction, building codes, appraisal procedure,

427

appraisal preparation, property insurance, and any other related

428

material deemed appropriate by the department.

429

626.9938 Regulation of umpire course providers,

430

instructors, and courses.--

431

     (1) Each umpire course provider, instructor, and classroom

432

course must be approved by and registered with the department

433

before prelicensure courses for property insurance appraisal

434

umpires may be offered. Each classroom course must include a

435

written examination at the conclusion of the course and must

436

cover all of the material contained in the course. A student may

437

not receive credit for the course unless the student achieves a

438

grade of at least 75 on the examination.

439

     (2) The department shall adopt rules establishing:

440

     (a) Standards for the approval, registration, discipline,

441

or removal from registration of course providers, instructors,

442

and courses. The standards must be designed to ensure that

443

instructors have the knowledge, competence, and integrity to

444

fulfill the educational objectives of the prelicensure

445

requirements of this part.

446

     (b) A process for determining compliance with the

447

prelicensure requirements of this part. The department shall

448

adopt rules prescribing the forms necessary to administer the

449

prelicensure requirements of this part.

450

     (3) Approval to teach prescribed or approved appraisal

451

courses does not entitle the instructor to teach any courses

452

outside the scope of this part.

453

     626.9939 Grounds for compulsory refusal, suspension, or

454

revocation of an umpire's license.--In addition to the grounds

455

set forth in s. 626.611, the department shall deny an

456

application for, and suspend, revoke, or refuse to renew or

457

continue, a license as a property insurance appraisal umpire if

458

the applicant or licensee has:

459

     (1) Violated a duty imposed upon her or him by law or by

460

the terms of a contract, whether written, oral, express, or

461

implied, in an appraisal; has aided, assisted, or conspired with

462

any other person engaged in any such misconduct and in

463

furtherance thereof; or has formed an intent, design, or scheme

464

to engage in such misconduct and committed an overt act in

465

furtherance of such intent, design, or scheme. It is immaterial

466

to a finding that a licensee has committed a violation of this

467

subsection that the victim or intended victim of the misconduct

468

has sustained no damage or loss, that the damage or loss has

469

been settled and paid after the discovery of misconduct, or that

470

such victim or intended victim was a customer or a person in a

471

confidential relation with the licensee or was an identified

472

member of the general public.

473

     (2) Violated any provision of this part or any lawful

474

order or rule of the department.

475

     (3) Had a registration, license, or certification as an

476

appraiser revoked, suspended, or otherwise acted against; has

477

had his or her registration, license, or certificate to practice

478

or conduct any regulated profession, business, or vocation

479

revoked or suspended by this or any other state, any nation, or

480

any possession or district of the United States; or has had an

481

application for such registration, licensure, or certification

482

to practice or conduct any regulated profession, business, or

483

vocation denied by this or any other state, any nation, or any

484

possession or district of the United States.

485

     (4) Made or filed a report or record, written or oral,

486

which the licensee knows to be false; has willfully failed to

487

file a report or record required by state or federal law; has

488

willfully impeded or obstructed such filing; or has induced

489

another person to impede or obstruct such filing.

490

     (5) Accepted an appointment as an umpire if the

491

appointment is contingent upon the umpire reporting a

492

predetermined result, analysis, or opinion, or if the fee to be

493

paid for the services of the umpire is contingent upon the

494

opinion, conclusion, or valuation reached by the umpire.

495

     626.9940 Grounds for discretionary denial, suspension, or

496

revocation of a license as a property insurance appraisal

497

umpire.--In addition to the applicable grounds set forth in s.

498

626.621, the department may deny an application for and suspend,

499

revoke, or refuse to renew or continue a license as a property

500

insurance appraisal umpire if the applicant or licensee has:

501

     (1) Failed to timely communicate with the appraisers

502

without good cause.

503

     (2) Failed or refused to exercise reasonable diligence in

504

submitting recommendations to the appraisers.

505

     (3) Violated any ethical standard for property insurance

506

appraisal umpires set forth in s. 626.9941.

507

     (4) Failed to inform the department in writing within 30

508

days after pleading guilty or nolo contendere to, or being

509

convicted or found guilty of, any felony.

510

     (5) Failed to timely notify the department of any change

511

in business location, or has failed to fully disclose all

512

business locations from which he or she operates as a property

513

insurance appraisal umpire.

514

     626.9941 Ethical standards for property insurance

515

appraisal umpires.--

516

     (1) IMPARTIALITY.--An umpire shall be neutral and maintain

517

impartiality throughout the appraisal process. Impartiality

518

means freedom from favoritism or bias in word, action, or

519

appearance. An umpire shall withdraw from appraisal if the

520

umpire is no longer impartial.

521

     (2) GIFTS AND SOLICITATION.--An umpire may not give or

522

accept any gift, favor, loan, or other item of value in an

523

appraisal process. During the appraisal process, an umpire may

524

not solicit or otherwise attempt to procure future professional

525

services.

526

     (3) CONFLICTS OF INTEREST.--An umpire may not participate

527

in a matter that presents a clear or undisclosed conflict of

528

interest. A conflict of interest arises when any relationship

529

between the umpire and the appraisal participants or the subject

530

matter of the dispute compromises, or appears to compromise, the

531

umpire's impartiality.

532

     (4) BURDEN OF DISCLOSURE.--The burden of disclosing a

533

potential conflict of interest rests on the umpire. Disclosure

534

must be made as soon as practical after the umpire becomes aware

535

of the interest or relationship giving rise to the potential

536

conflict of interest.

537

     (5) EFFECT OF DISCLOSURE.--After appropriate disclosure,

538

the umpire may serve if all parties agree. However, if a

539

conflict of interest clearly impairs an umpire's impartiality,

540

the umpire shall withdraw regardless of the express agreement of

541

the parties.

542

     (6) CONFIDENTIALITY.--An umpire shall maintain

543

confidentiality of all information revealed during an appraisal

544

except where disclosure is required by law.

545

     (7) RECORDKEEPING.--An umpire shall maintain

546

confidentiality in the storage and disposal of records and may

547

not disclose any identifying information when materials are used

548

for research, training, or statistical compilations.

549

     (8) FEES AND EXPENSES.--An umpire holds a position of

550

trust. Fees charged for appraisal services shall be reasonable

551

and consistent with the nature of the case. An umpire shall be

552

guided by the following general principles in determining fees:

553

     (a) Any charges for services as an umpire based on time

554

may not exceed actual time spent or allocated;

555

     (b) Charges for costs shall be for those actually

556

incurred; and

557

     (c) An umpire may not charge, agree to, or accept as

558

compensation or reimbursement any payment, commission, or fee

559

that is based on a percentage basis, or that is contingent upon

560

arriving at a particular value or any future happening or

561

outcome of the assignment.

562

     (9) MAINTENANCE OF RECORDS.--An umpire shall maintain

563

records necessary to support charges for services and expenses,

564

and upon request shall provide an accounting of all applicable

565

charges to the parties.

566

     (10) ADVERTISING.--An umpire may not engage in marketing

567

practices that contain false or misleading information. An

568

umpire shall ensure that any advertisements of the umpire's

569

qualifications, services to be rendered, or the appraisal

570

process are accurate and honest. An umpire may not make claims

571

of achieving specific outcomes or promises implying favoritism

572

for the purpose of obtaining business.

573

     (11) INTEGRITY AND IMPARTIALITY.--An umpire may not accept

574

any engagement, provide any service, or perform any act that

575

would compromise the umpire's integrity or impartiality.

576

     (12) SKILL AND EXPERIENCE.--An umpire shall decline an

577

appointment or selection, withdraw, or request appropriate

578

assistance when the facts and circumstances of the appraisal are

579

beyond the umpire's skill or experience.

580

     626.9942 Retention of records.--An umpire licensed under

581

this part shall retain for at least 5 years original or true

582

copies of any contracts engaging the umpire's services,

583

appraisal reports, and supporting data assembled and formulated

584

by the umpire in preparing appraisal reports. The period for

585

retaining the records applicable to each engagement starts on

586

the date of the submission of the appraisal report to the

587

client. These records must be made available by the umpire for

588

inspection and copying by the department upon reasonable notice

589

to the umpire. If an appraisal has been the subject of, or has

590

been admitted as evidence in, a lawsuit, reports and records

591

must be retained for at least 2 years after the date the trial

592

ends.

593

     626.9943 Ethical standards for property insurance loss

594

appraisers.--

595

     (1) INTEGRITY AND IMPARTIALITY.--

596

     (a) An appraiser may not accept an appointment unless he

597

or she can serve impartially; can serve independently from the

598

party appointing him or her; is competent to serve; and is

599

available to promptly commence the appraisal, and thereafter

600

devote the time and attention for its completion that the

601

parties are reasonably entitled to expect.

602

     (b) An appraiser shall conduct the appraisal process in a

603

manner that advances the fair and efficient resolution of the

604

matters submitted for decision. An appraiser shall make all

605

reasonable efforts to prevent delays in the appraisal process,

606

the harassment of parties or other participants, or other abuse

607

or disruption of the appraisal process.

608

     (c) Once an appraiser has accepted an appointment, the

609

appraiser may not withdraw or abandon the appointment unless

610

compelled to do so by unanticipated circumstances that would

611

render it impossible or impracticable to continue.

612

     (d) The appraiser shall, after careful deliberation,

613

decide all issues submitted for determination and no other

614

issues. An appraiser shall decide all matters justly, exercising

615

independent judgment, and may not allow outside pressure to

616

affect the decision. An appraiser may not delegate the duty to

617

decide to any other person.

618

     (2) COMMUNICATIONS WITH PARTIES.--

619

     (a) If an agreement of the parties establishes the manner

620

or content of the communications between the appraisers and the

621

parties, the appraiser shall abide by such agreement. In the

622

absence of agreement, an appraiser may not discuss a proceeding

623

with any party in the absence of any other party, except in the

624

following circumstances:

625

     1. If the appointment of the appraiser is being

626

considered, the prospective appraiser may ask about the

627

identities of the parties, counsel, and the general nature of

628

the case, and may respond to inquiries from a party or its

629

counsel designed to determine his or her suitability and

630

availability for the appointment;

631

     2. To consult with the party who appointed the appraiser

632

concerning the selection of a neutral umpire;

633

     3. To make arrangements for any compensation to be paid by

634

the party who appointed the appraiser; or

635

     4. To make arrangements for obtaining materials and

636

inspection of the property with the party who appointed the

637

appraiser. Such communication is limited to scheduling and the

638

exchange of materials.

639

     (b) There may be no communications whereby a party

640

dictates to an appraiser what the result of the proceedings must

641

be, what matters or elements may be included or considered by

642

the appraiser, or what actions the appraiser may take.

643

     (3) GIFTS AND SOLICITATION.--An appraiser may not give or

644

accept any gift, favor, loan, or other item of value in an

645

appraisal process. During the appraisal process, an appraiser

646

may not solicit or otherwise attempt to procure future

647

professional services.

648

     (4) CONFLICTS OF INTEREST.--An appraiser may not

649

participate in a matter that presents a clear or undisclosed

650

conflict of interest. A conflict of interest arises when any

651

known existing or past financial, business, professional, or

652

personal relationship between the appraiser and the appraisal

653

participants or the subject matter of the dispute might

654

reasonably affect impartiality or lack of independence in the

655

eyes of any of the parties.

656

     (5) BURDEN OF DISCLOSURE.--The burden of disclosing any

657

potential conflict of interest rests on the appraiser.

658

Disclosure must be made before accepting an appointment, or, if

659

the conflict of interest arises after accepting an appointment,

660

disclosure must be made as soon as practical after the appraiser

661

becomes aware of the interest or relationship giving rise to the

662

potential conflict of interest.

663

     (6) EFFECT OF DISCLOSURE.--After appropriate disclosure,

664

the appraiser may serve if all parties agree. However, if an

665

appraiser is requested to withdraw by all parties, he or she

666

must withdraw. If an appraiser is requested to withdraw due to

667

alleged partiality, the appraiser must withdraw. If the

668

appraiser refuses to withdraw, a party may challenge the

669

appraiser's partiality by filing a petition with a county or

670

circuit court in the jurisdiction in which the covered property

671

is located.

672

     (7) FEES AND EXPENSES.--An appraiser holds a position of

673

trust. Fees charged for appraisal services shall be reasonable

674

and consistent with the nature of the case. An appraiser shall

675

be guided by the following general principles in determining

676

fees:

677

     (a) Any charges for services as an appraiser based on time

678

may not exceed the actual time spent or allocated; and

679

     (b) Charges for costs shall be only for those costs

680

actually incurred.

681

     (8) MAINTENANCE OF RECORDS.--An appraiser shall maintain

682

records to support charges for services, fees, and expenses, and

683

upon request shall provide an accounting of all applicable

684

charges to the parties.

685

     (9) ADVERTISING.--An appraiser may not engage in marketing

686

practices that contain false or misleading information. An

687

appraiser shall ensure that any advertisements of the

688

appraiser's qualifications, services to be rendered, or the

689

appraisal process are accurate and honest. An appraiser may not

690

make claims of achieving specific outcomes or promises implying

691

favoritism for the purpose of obtaining business.

692

     (10) SKILL AND EXPERIENCE.--An appraiser shall decline an

693

appointment or selection, withdraw, or request appropriate

694

assistance when the facts and circumstances of the appraisal are

695

beyond the appraiser's skill or experience.

696

     Section 7.  Section 627.4141, Florida Statutes, is created

697

to read:

698

     627.4141 Residential or commercial property insurance loss

699

appraisal.--If a residential or commercial residential property

700

insurance contract provides that either party may submit a

701

written demand to enter into the process of appraisal if the

702

insured and the insurer fail to mutually agree as to the actual

703

cash value, the amount of loss, or the cost of repair or

704

replacement of property for which a claim has been filed, that

705

process shall be governed by this section. The insurer may

706

refuse to accept the demand only if the insured materially fails

707

to comply with the proof-of -loss obligations of the insured as

708

set forth in the policy conditions. The insurer is deemed to

709

have waived its right to demand an appraisal if it fails to

710

invoke an appraisal within 30 days after the insured

711

substantially complies with the proof-of-loss obligation as set

712

forth in the policy conditions.

713

     (1) Each party shall select a competent and independent

714

appraiser and notify the other party of the appraiser selected

715

within 20 days after the date of the demand for an appraisal.

716

The appraisers shall select a competent, independent, and

717

impartial umpire who is on the department's list of licensed

718

property insurance appraisal umpires. If the appraisers are

719

unable to agree on an umpire within 15 days, the insured or the

720

insurer may file a petition with a county or circuit court in

721

the jurisdiction in which the covered property is located to

722

designate a licensed property insurance appraisal umpire for the

723

appraisal.

724

     (2) Appraisal proceedings are informal unless the insured

725

and the insurer mutually agree otherwise. For purposes of this

726

section, "informal" means that no formal discovery shall be

727

conducted, including depositions, interrogatories, requests for

728

admission, or other forms of formal civil discovery; no formal

729

rules of evidence shall be applied; and no court reporter shall

730

be used for the proceedings.

731

     (3) Each appraiser shall appraise the loss and submit a

732

written report to the other appraiser, separately stating the

733

cost of the loss, the actual cash value, or the cost to repair

734

or replace each item. The appraisers shall attempt to resolve

735

any differences in their appraisals and reach a mutual agreement

736

on all matters. If the appraisers are unable to agree, they

737

shall submit the differences in their findings to the umpire.

738

     (4) The umpire shall review any differences in appraisals

739

submitted by the appraisers and determine the amount of the loss

740

for each item submitted. Within 10 days after receipt of any

741

differences in appraisals, the umpire shall submit the umpire's

742

conclusions in writing to each appraiser.

743

     (5) If either appraiser agrees with the conclusions of the

744

umpire, an itemized written appraisal award signed by the umpire

745

and the appraiser shall be filed with the insurer and shall

746

determine the amount of the loss.

747

     (6) The appraisal award is binding on the insurer and the

748

insured with regard to the amount of the loss. If the insurance

749

policy so provides, the insurer may assert that there is no

750

coverage under the policy for the loss as a whole or that there

751

has been a violation of the policy conditions with respect to

752

fraud, lack of notice, or failure to cooperate.

753

     (7) Each appraiser shall be paid by the party who selects

754

the appraiser and the expenses of the appraisal and fees of the

755

umpire shall be paid by the parties equally, except that if the

756

final determination of the amount of the loss exceeds 50 percent

757

of the insurer's original appraisal, the insurer shall pay all

758

of the expenses, including any fees and expenses charged by the

759

insured's appraiser and all fees and expenses of the umpire.

760

This subsection does not affect an insured's claim for

761

attorney's fees under s. 627.428.

762

     (8) The provisions of the Florida Arbitration Code do not

763

apply to residential and commercial residential property

764

insurance loss appraisal proceedings.

765

     (9) The appraisal process may not address issues involving

766

whether or not the loss or damage is covered under the terms of

767

the insurance contract. However, the appraisers and the umpire

768

may consider causation issues, if necessary, to determine the

769

amount of loss.

770

     Section 8.  This act shall take effect July 1, 2008.

771

772

================ T I T L E  A M E N D M E N T ================

773

And the title is amended as follows:

774

     Delete everything before the enacting clause

775

and insert:

776

A bill to be entitled

777

An act relating to property insurance appraisal umpires;

778

amending s. 624.501, F.S.; providing license application,

779

issuance, biennial renewal, or continuation fees for

780

property appraisal umpires; amending s. 626.015, F.S.;

781

defining the terms "property insurance loss appraiser" and

782

"property insurance appraisal umpire" for purposes of the

783

Licensing Procedures Law; amending s. 626.016, F.S.;

784

providing that property insurance appraisal umpires are

785

subject to the powers of the Department of Financial

786

Services, the Financial Services Commission, and the

787

Office of Insurance Regulation; amending s. 626.022, F.S.;

788

expanding the scope of part I of ch. 626, F.S., to include

789

property insurance appraisal umpires; deleting obsolete

790

provisions; amending s. 626.112, F.S.; requiring that

791

property insurance appraisal umpires operating in this

792

state be licensed by the department; creating part XII of

793

ch. 626, F.S.; creating s. 626.9931, F.S.; providing a

794

legislative finding and purpose; creating s. 626.9932,

795

F.S.; providing the scope and parameters for application;

796

creating s. 626.9933, F.S.; providing definitions;

797

creating s. 626.9934, F.S.; providing procedures for the

798

application for licensure as a property insurance

799

appraisal umpire; requiring that all applicants be

800

fingerprinted by a law enforcement agency or other entity

801

approved by the department at the time of application;

802

requiring the department to develop and maintain an

803

updated list of licensed umpires; creating s. 626.9935,

804

F.S.; authorizing the department to adopt rules; creating

805

s. 626.9936, F.S.; providing qualifications for licensure

806

as a property insurance appraisal umpire; creating s.

807

626.9937, F.S.; providing professional and educational

808

requirements for licensure as a property insurance

809

appraisal umpire; creating s. 626.9938, F.S.; providing

810

for the regulation of umpire course providers,

811

instructors, and courses; requiring the department to

812

adopt rules establishing standards for providers,

813

instructors, and courses, and a process for determining

814

compliance with certain prelicensure requirements and

815

adopting forms to be used for the administration of such

816

requirements; creating s. 626.9939, F.S.; providing

817

grounds for the compulsory refusal, suspension, or

818

revocation of an umpire's license; creating s. 626.9940,

819

F.S.; providing grounds for the discretionary refusal,

820

suspension, or revocation of an umpire's license; creating

821

s. 626.9941, F.S.; providing ethical standards for

822

property insurance loss appraisal umpires; creating s.

823

626.9942, F.S.; requiring that a licensed property

824

insurance appraisal umpire retain certain records for a

825

specified period; requiring that umpires make such records

826

available for inspection and copying by the department;

827

requiring that appraisals that are the subject of

828

litigation or have been admitted as evidence in a lawsuit

829

be retained for a specified period; creating s. 626.9943,

830

F.S.; providing ethical standards for property loss

831

insurance appraisers; creating s. 627.4141, F.S.;

832

providing procedures that must be followed if a

833

residential or commercial property insurance contract

834

provides that either party may submit a written demand to

835

enter into the process of appraisal when the insured and

836

the insurer fail to mutually agree to the actual cash

837

value, the amount of loss, or the cost of repair or

838

replacement of property for which a claim has been filed;

839

providing an exception upon which an insurer may refuse to

840

accept such demand; authorizing each party to select a

841

competent and independent appraiser and to notify the

842

opposing party within a specified period; requiring the

843

appraisers to select an umpire from the department's list

844

of licensed umpires; authorizing either party to file a

845

petition, in a county or circuit court in the jurisdiction

846

in which the covered property is located, to designate an

847

umpire if the appraisers cannot agree on the selection of

848

an umpire; providing that appraisal proceedings are

849

informal unless the insurer and the insured agree

850

otherwise; defining and providing the scope of the term

851

"informal" for purposes of appraisal proceedings;

852

requiring each appraiser to submit a written report to the

853

other appraisers; requiring that any differences in

854

findings among the appraisers which cannot be resolved by

855

the appraisers themselves be submitted to the umpire for

856

review; requiring the umpire to submit his or her

857

conclusions regarding any unresolved differences in the

858

findings of the appraisers within a specified period;

859

providing that if either appraiser agrees with the

860

conclusions of the umpire, an itemized written appraisal

861

award signed by the umpire and appraiser shall be filed

862

with the insurer and shall determine the amount of the

863

loss; providing that the appraisal award is binding upon

864

the insurer and the insured; providing for compensation of

865

the appraisers and the umpire; providing that the Florida

866

Arbitration Code does not apply to residential or

867

commercial property insurance loss appraisal proceedings;

868

prohibiting the appraisal process from addressing issues

869

involving coverage or lack thereof under an insurance

870

contract; authorizing the umpire and appraisers to

871

consider causation issues when necessary to determine the

872

amount of loss; providing an effective date.

3/7/2008  11:56:00 AM     597-04297-08