1

A bill to be entitled

2

An act relating to property insurance appraisal umpires;

3

amending s. 624.501, F.S.; providing filing fees regarding

4

the application for and issuance of a license, as well as

5

the biennial renewal or continuation thereof, by a

6

property insurance appraisal umpire; amending s. 626.015,

7

F.S.; defining the terms "property insurance loss

8

appraiser" and "property insurance appraisal umpire" for

9

purposes of the Licensing Procedures Law; amending s.

10

626.016, F.S.; providing that property insurance appraisal

11

umpires are subject to the powers of the Department of

12

Financial Services, the Financial Services Commission, and

13

the Office of Insurance Regulation; amending s. 626.022,

14

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

15

include property insurance appraisal umpires; amending s.

16

626.112, F.S.; requiring that property insurance appraisal

17

umpires operating in this state be licensed by the

18

department; creating part XII of ch. 626, F.S.; creating

19

s. 626.9931, F.S.; providing a legislative finding and

20

purpose; creating s. 626.9932, F.S.; providing the scope

21

and parameters for application; creating s. 626.9933,

22

F.S.; providing definitions; creating s. 626.9934, F.S.;

23

providing procedures for the application for licensure as

24

a property insurance appraisal umpire; requiring that all

25

applicants be fingerprinted by a law enforcement agency or

26

other entity approved by the department at the time of

27

application; requiring the department to develop and

28

maintain an updated list of licensed umpires; creating s.

29

626.9935, F.S.; authorizing the department to adopt rules;

30

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

31

licensure as a property insurance appraisal umpire;

32

creating s. 626.9937, F.S.; providing requirements for

33

licensure as a property insurance appraisal umpire;

34

creating s. 626.9938, F.S.; providing for the regulation

35

of umpire course providers, instructors, and courses;

36

requiring the department to adopt rules establishing

37

standards for providers, instructors, and courses;

38

requiring the department to adopt rules establishing a

39

process for determining compliance with certain

40

prelicensure requirements and adopting forms to be used

41

for the administration of such requirements; creating s.

42

626.9939, F.S.; providing grounds for the compulsory

43

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

44

creating s. 626.9940, F.S.; providing grounds for the

45

discretionary refusal, suspension, or revocation of an

46

umpire's license; creating s. 626.9941, F.S.; providing

47

ethical standards for property insurance loss appraisal

48

umpires; creating s. 626.9942, F.S.; requiring that a

49

licensed property insurance appraisal umpire retain

50

certain records for a specified period; requiring that

51

umpires make such records available for inspection and

52

copying by the department; requiring that appraisals that

53

are the subject of litigation or have been admitted as

54

evidence in a lawsuit be retained for a specified period;

55

creating s. 627.4141, F.S.; providing procedures that must

56

be followed if a residential or commercial property

57

insurance contract provides that either party may submit a

58

written demand to enter into the process of appraisal when

59

the insured and the insurer fail to mutually agree to the

60

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

61

repair or replacement of property for which a claim has

62

been filed; providing an exception upon which an insurer

63

may refuse to accept such demand; authorizing each party

64

to select a competent and independent appraiser and to

65

notify the opposing party within a specified period;

66

requiring the appraisers to select an umpire from the

67

department's list of licensed umpires; authorizing either

68

party to file a petition, in a county or circuit court in

69

the jurisdiction in which the covered property is located,

70

to designate an umpire if the appraisers cannot agree on

71

the selection of an umpire; providing that appraisal

72

proceedings are informal unless the insurer and the

73

insured agree otherwise; defining and providing the scope

74

of the term "informal" for purposes of appraisal

75

proceedings; requiring each appraiser to submit a written

76

report to the other appraisers; requiring that any

77

differences in findings among the appraisers which cannot

78

be resolved by the appraisers themselves be submitted to

79

the umpire for review; requiring the umpire to submit his

80

or her conclusions regarding any unresolved differences in

81

the findings of the appraisers within a specified period;

82

providing that if either appraiser agrees with the

83

conclusions of the umpire, an itemized written appraisal

84

award signed by the umpire and appraiser shall be filed

85

with the insurer and shall determine the amount of the

86

loss; providing that the appraisal award is binding upon

87

the insurer and the insured; providing for compensation of

88

the appraisers and the umpire; providing that the Florida

89

Arbitration Code does not apply to residential or

90

commercial property insurance loss appraisal proceedings;

91

prohibiting the appraisal process from addressing issues

92

involving coverage or lack thereof under an insurance

93

contract; authorizing the umpire and appraisers to

94

consider causation issues when necessary to determine the

95

amount of loss; providing an effective date.

96

97

Be It Enacted by the Legislature of the State of Florida:

98

99

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

100

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

101

section, to read:

102

     624.501  Filing, license, appointment, and miscellaneous

103

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

104

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

105

in advance, fees, licenses, and miscellaneous charges as follows:

106

     (5) All insurance representatives and property insurance

107

appraisal umpires, application for license, each filing, filing

108

fee....$50.00

109

     (29) All property insurance appraisal umpires, fees for

110

issuance of original license and for biennial renewal or

111

continuation thereof...........$50.00

112

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

113

section 626.015, Florida Statutes, are redesignated as

114

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

115

subsections (16) and (17) are added to that section, to read:

116

     626.015  Definitions.--As used in this part:

117

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

118

meaning as in s. 626.9933.

119

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

120

meaning as in s. 626.9933.

121

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

122

Statutes, is amended to read:

123

     626.016  Powers and duties of department, commission, and

124

office.--

125

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

126

and the department specified in this part apply only with respect

127

to insurance agents, insurance agencies, managing general agents,

128

insurance adjusters, reinsurance intermediaries, viatical

129

settlement brokers, customer representatives, service

130

representatives, and property insurance appraisal umpires

131

agencies.

132

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

133

Statutes, is amended to read:

134

     626.022  Scope of part.--

135

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

136

representatives, adjusters, property insurance appraisal umpires,

137

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

138

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

139

all other types of insurers, except that:

140

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

141

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

142

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

143

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

144

intermediaries as defined in s. 626.7492.

145

     (b)  The applicability of this chapter as to fraternal

146

benefit societies shall be as provided in chapter 632.

147

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

148

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

149

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

150

accountant licensed under chapter 473 who is acting within the

151

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

152

473.302, provided that the activities of the certified public

153

accountant are limited to advising a client of the necessity of

154

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

155

of coverage needed, and provided that the certified public

156

accountant does not directly or indirectly receive or share in

157

any commission or referral fee.

158

     Section 5.  Section 626.112, Florida Statutes, is amended to

159

read:

160

     626.112  License and appointment required; agents, customer

161

representatives, adjusters, insurance agencies, service

162

representatives, managing general agents, and property insurance

163

appraisal umpires.--

164

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

165

himself or herself out to be an insurance agent, insurance

166

adjuster, or customer representative unless he or she is

167

currently licensed by the department and appointed by an

168

appropriate appointing entity or person.

169

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

170

department rules, and in addition to other conduct described in

171

this chapter with respect to particular types of agents, a

172

license as an insurance agent, service representative, customer

173

representative, or limited customer representative is required in

174

order to engage in the solicitation of insurance. For purposes of

175

this requirement, as applicable to any of the license types

176

described in this section, the solicitation of insurance is the

177

attempt to persuade any person to purchase an insurance product

178

by:

179

     1.  Describing the benefits or terms of insurance coverage,

180

including premiums or rates of return;

181

     2.  Distributing an invitation to contract to prospective

182

purchasers;

183

     3.  Making general or specific recommendations as to

184

insurance products;

185

     4.  Completing orders or applications for insurance

186

products;

187

     5.  Comparing insurance products, advising as to insurance

188

matters, or interpreting policies or coverages; or

189

     6.  Offering or attempting to negotiate on behalf of another

190

person a viatical settlement contract as defined in s. 626.9911.

191

192

However, an employee leasing company licensed pursuant to chapter

193

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

194

that identifies products and services offered to employees may

195

deliver proposals for the purchase of employee leasing services

196

to prospective clients of the employee leasing company setting

197

forth the terms and conditions of doing business; classify

198

employees as permitted by s. 468.529; collect information from

199

prospective clients and other sources as necessary to perform due

200

diligence on the prospective client and to prepare a proposal for

201

services; provide and receive enrollment forms, plans, and other

202

documents; and discuss or explain in general terms the

203

conditions, limitations, options, or exclusions of insurance

204

benefit plans available to the client or employees of the

205

employee leasing company were the client to contract with the

206

employee leasing company. Any advertising materials or other

207

documents describing specific insurance coverages must identify

208

and be from a licensed insurer or its licensed agent or a

209

licensed and appointed agent employed by the employee leasing

210

company. The employee leasing company may not advise or inform

211

the prospective business client or individual employees of

212

specific coverage provisions, exclusions, or limitations of

213

particular plans. As to clients for which the employee leasing

214

company is providing services pursuant to s. 468.525(4), the

215

employee leasing company may engage in activities permitted by

216

ss. 626.7315, 626.7845, and 626.8305, subject to the restrictions

217

specified in those sections. If a prospective client requests

218

more specific information concerning the insurance provided by

219

the employee leasing company, the employee leasing company must

220

refer the prospective business client to the insurer or its

221

licensed agent or to a licensed and appointed agent employed by

222

the employee leasing company.

223

     (2)  No agent or customer representative shall solicit or

224

otherwise transact as agent or customer representative, or

225

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

226

customer representative as to, any kind or kinds of insurance as

227

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

228

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

229

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

230

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

231

himself or herself out to be a service representative unless he

232

or she then holds a currently effective service representative

233

license and appointment. This subsection does not apply as to

234

similar representatives or employees of casualty insurers whose

235

duties are restricted to health insurance.

236

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

237

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

238

or she then holds a currently effective managing general agent

239

license and appointment.

240

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

241

an officer or other salaried representative may solicit and

242

effect contracts of life insurance or annuities or of health

243

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

244

he or she is accompanied by and solicits for and on the behalf of

245

a licensed and appointed agent.

246

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

247

partnership, corporation, association, or any other entity shall

248

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

249

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

250

626.172 with respect to possessing an insurance agency license

251

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

252

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

253

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

254

which is wholly owned by insurance agents currently licensed and

255

appointed under this chapter, each incorporated agency whose

256

voting shares are traded on a securities exchange, each agency

257

designated and subject to supervision and inspection as a branch

258

office under the rules of the National Association of Securities

259

Dealers, and each agency whose primary function is offering

260

insurance as a service or member benefit to members of a

261

nonprofit corporation may file an application for registration in

262

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

263

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

264

application for licensure or registration on or before October 1,

265

2006.

266

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

267

file an application for licensure in accordance with this

268

section, the department shall impose on the agency an

269

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

270

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

271

file an application for registration or an application for

272

licensure in accordance with this section, the department shall

273

impose on the agency an administrative penalty in an amount of up

274

to $5,000.

275

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

276

precedent to continuing business, obtain an insurance agency

277

license if the department finds that, with respect to any

278

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

279

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

280

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

281

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

282

to the business of insurance or to an insurance agency, without

283

regard to whether a judgment of conviction has been entered by

284

the court having jurisdiction of the cases.

285

     2.  Employed any individual in a managerial capacity or in a

286

capacity dealing with the public who is under an order of

287

revocation or suspension issued by the department. An insurance

288

agency may request, on forms prescribed by the department,

289

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

290

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

291

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

292

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

293

person's employment is immediately terminated.

294

     3.  Operated the agency or permitted the agency to be

295

operated in violation of s. 626.747.

296

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

297

agency hazardous to the insurance-buying public or other persons:

298

     a.  Solicited or handled controlled business. This

299

subparagraph shall not prohibit the licensing of any lending or

300

financing institution or creditor, with respect to insurance

301

only, under credit life or disability insurance policies of

302

borrowers from the institutions, which policies are subject to

303

part IX of chapter 627.

304

     b.  Misappropriated, converted, or unlawfully withheld

305

moneys belonging to insurers, insureds, beneficiaries, or others

306

and received in the conduct of business under the license.

307

     c.  Unlawfully rebated, attempted to unlawfully rebate, or

308

unlawfully divided or offered to divide commissions with another.

309

     d.  Misrepresented any insurance policy or annuity contract,

310

or used deception with regard to any policy or contract, done

311

either in person or by any form of dissemination of information

312

or advertising.

313

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

314

applicable to the business of insurance in the course of dealing

315

under the license.

316

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

317

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

318

insurer he or she represents or has represented any money coming

319

into his or her hands belonging to the insurer.

320

     h.  Violated the provision against twisting as defined in s.

321

626.9541(1)(l).

322

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

323

competition or in unfair or deceptive acts or practices, as

324

prohibited under part IX of this chapter.

325

     j.  Willfully overinsured any property insurance risk.

326

     k.  Engaged in fraudulent or dishonest practices in the

327

conduct of business arising out of activities related to

328

insurance or the insurance agency.

329

     l.  Demonstrated lack of fitness or trustworthiness to

330

engage in the business of insurance arising out of activities

331

related to insurance or the insurance agency.

332

     m.  Authorized or knowingly allowed individuals to transact

333

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

334

     5.  Knowingly employed any person who within the preceding 3

335

years has had his or her relationship with an agency terminated

336

in accordance with paragraph (d).

337

     6.  Willfully circumvented the requirements or prohibitions

338

of this code.

339

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

340

licensed under the Insurance Code may pay any fee or other

341

consideration to an unlicensed person other than an insurance

342

agency for the referral of prospective purchasers to an insurance

343

agent which is in any way dependent upon whether the referral

344

results in the purchase of an insurance product.

345

     (9)  Any person who knowingly transacts insurance or

346

otherwise engages in insurance activities in this state without a

347

license in violation of this section commits a felony of the

348

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

349

or s. 775.084.

350

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

351

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

352

to be a property insurance appraisal umpire unless he or she

353

holds a current property insurance appraisal umpire license

354

issued by the department.

355

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

356

consisting of sections 626.9931, 626.9932, 626.9933, 626.9934,

357

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

358

626.9941, and 626.9942, is created to read:

359

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

360

interest of the public welfare to regulate property insurance

361

appraisal umpires in this state.

362

     626.9932 Scope of part.--The provisions of this part apply

363

to residential and commercial residential property insurance

364

contracts that contain an appraisal clause and to the umpires and

365

appraisers who participate in the appraisal process as a result

366

of an appraisal clause.

367

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

368

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

369

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

370

repair or replacement of property for the purpose of quantifying

371

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

372

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

373

pursuant to a residential or commercial residential property

374

insurance contract that permits the resolution of a claim dispute

375

by appraisal.

376

     (2) "Property insurance appraisal umpire" and "umpire" mean

377

a competent, independent, and impartial third party selected by

378

the appraisers for the insurer and insured to resolve issues for

379

which the appraisers are unable to reach an agreement in the

380

course of the appraisal process pursuant to a residential or

381

commercial residential property insurance contract that permits

382

the resolution of a claim dispute by appraisal.

383

     (3) "Property insurance loss appraiser" and "appraiser"

384

mean a competent and independent third party selected by an

385

insurer or an insured to develop an appraisal for purposes of the

386

appraisal process under a residential or commercial residential

387

property insurance contract that permits the resolution of a

388

claim dispute by appraisal.

389

     626.9934 Appraisal umpire application; fingerprinting

390

required; umpire list.--

391

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

392

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

393

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

394

fingerprinted by a law enforcement agency or other entity

395

approved by the department and must pay the fingerprint

396

processing fee specified in s. 624.501. Fingerprints must be

397

processed in accordance with s. 624.34.

398

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

399

record a current list of licensed property insurance appraisal

400

umpires.

401

     626.9935 Rulemaking authority.--The department may adopt

402

rules to administer the requirements of this part pursuant to ss.

403

120.536(1) and 120.54.

404

     626.9936 Qualifications for licensure as a property

405

insurance appraisal umpire.--The department may not issue a

406

license as a property insurance appraisal umpire to any

407

individual found by it to be untrustworthy or incompetent, or who

408

does not meet the following qualifications:

409

     (a) The applicant has filed an application with the

410

department in accordance with s. 626.171;

411

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

412

years of age;

413

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

414

who possesses work authorization from the United States Bureau of

415

Citizenship and Immigration Services; and

416

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

417

or licensing requirements in s. 626.9937.

418

     (2) An incomplete application expires 6 months after the

419

date on which it is received.

420

     (3) An applicant seeking to become licensed under this part

421

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

422

membership in any particular appraisal organization.

423

     626.9937 Requirements as to licensure, education,

424

experience, or instruction for applicants seeking licensure as a

425

property insurance appraisal umpire.--The department may not

426

issue a license to an applicant for licensure as a property

427

insurance appraisal umpire unless the applicant meets one of the

428

following requirements:

429

     (1) The applicant is currently licensed, registered,

430

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

431

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

432

and has taught or successfully completed 4 hours of classroom

433

coursework, approved by the department, specifically related to

434

construction, building codes, appraisal procedure, appraisal

435

preparation, and any other related material deemed appropriate by

436

the department.

437

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

438

immediately preceding the date on which the application is filed

439

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

440

approved as a general contractor, building contractor, or

441

residential contractor as defined in s. 489.105, and has taught

442

or successfully completed 4 hours of classroom coursework,

443

approved by the department, specifically related to construction,

444

building codes, appraisal procedure, appraisal preparation, and

445

any other related material deemed appropriate by the department.

446

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

447

immediately preceding the date on which the application is filed

448

with the department, has been licensed or registered as an

449

architect to engage in the practice of architecture pursuant to

450

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

451

hours of classroom coursework, approved by the department,

452

specifically related to construction, building codes, appraisal

453

procedure, appraisal preparation, and any other related material

454

deemed appropriate by the department.

455

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

456

immediately preceding the date on which the application is filed

457

with the department, has been a qualified geologist or

458

professional geologist as defined in s. 492.102 and has taught or

459

successfully completed 4 hours of classroom coursework, approved

460

by the department, specifically related to construction, building

461

codes, appraisal procedure, appraisal preparation, and any other

462

related material deemed appropriate by the department.

463

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

464

immediately preceding the date on which the application is filed

465

with the department, has been licensed as a certified public

466

accountant as defined in s. 473.302, and has taught or

467

successfully completed 4 hours of classroom coursework, approved

468

by the department, specifically related to construction, building

469

codes, appraisal procedure, appraisal preparation, and any other

470

related material deemed appropriate by the department.

471

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

472

immediately preceding the date on which the application is filed

473

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

474

this state and has taught or successfully completed 4 hours of

475

classroom coursework, approved by the department, specifically

476

related to construction, building codes, appraisal procedure,

477

appraisal preparation, and any other related material deemed

478

appropriate by the department.

479

     (7) The applicant has received a baccalaureate degree from

480

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

481

architecture, or building construction and has taught or

482

successfully completed 4 hours of classroom coursework, approved

483

by the department, specifically related to construction, building

484

codes, appraisal procedure, appraisal preparation, and any other

485

related material deemed appropriate by the department.

486

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

487

property and casualty adjuster pursuant to part VI and:

488

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

489

general contractor, building contractor, or residential

490

contractor;

491

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

492

quarter hours of credit from an accredited college in the field

493

of accounting, geology, engineering, architecture, or building

494

construction;

495

     (c) Has taught or successfully completed 24 hours of

496

classroom coursework, approved by the department, specifically

497

related to construction, building codes, appraisal procedure,

498

appraisal preparation, and any other related material deemed

499

appropriate by the department; or

500

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

501

appraisal proceedings under a property insurance contract within

502

the 4 years immediately preceding the date on which an insurer or

503

insured demands an appraisal.

504

     (9) The applicant has successfully completed 40 hours of

505

classroom coursework, approved by the department, specifically

506

related to construction, building codes, appraisal procedure,

507

appraisal preparation, property insurance, and any other related

508

material deemed appropriate by the department.

509

626.9938 Regulation of umpire course providers, instructors

510

and courses.--

511

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

512

course must be approved by and registered with the department

513

before prelicensure courses for property insurance appraisal

514

umpires may be offered. Each classroom course must include a

515

written examination at the conclusion of the course and must

516

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

517

not receive credit for the course unless the student achieves a

518

grade of not less than 75 on the examination.

519

     (2) The department shall adopt rules establishing standards

520

for the approval, registration, discipline, or removal from

521

registration of course providers, instructors, and courses. The

522

standards must be designed to ensure that instructors have the

523

knowledge, competence, and integrity to fulfill the educational

524

objectives of the prelicensure requirements of this part.

525

     (3) The department shall adopt rules to establish a process

526

for determining compliance with the prelicensure requirements of

527

this part. The department shall adopt rules prescribing the forms

528

necessary to administer the prelicensure requirements of this

529

part.

530

     (4) Approval to teach prescribed or approved appraisal

531

courses does not entitle the instructor to teach any courses

532

outside the scope of this part.

533

     626.9939 Grounds for compulsory refusal, suspension, or

534

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

535

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

536

for, and suspend, revoke, or refuse to renew or continue, a

537

license as a property insurance appraisal umpire if it finds that

538

the licensee has:

539

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

540

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

541

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

542

any other person engaged in any such misconduct and in

543

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

544

to engage in such misconduct and committed an overt act in

545

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

546

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

547

subsection that the victim or intended victim of the misconduct

548

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

549

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

550

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

551

confidential relation with the licensee or was an identified

552

member of the general public.

553

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

554

or rule of the department.

555

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

556

appraiser revoked, suspended, or otherwise acted against; has had

557

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

558

conduct any regulated profession, business, or vocation revoked

559

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

560

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

561

application for such registration, licensure, or certification to

562

practice or conduct any regulated profession, business, or

563

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

564

possession or district of the United States.

565

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

566

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

567

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

568

willfully impeded or obstructed such filing; or has induced

569

another person to impede or obstruct such filing.

570

     (5) Accepted an appointment as an umpire if the appointment

571

itself is contingent upon the umpire reporting a predetermined

572

result, analysis, or opinion, or if the fee to be paid for the

573

services of the umpire is contingent upon the opinion,

574

conclusion, or valuation reached by the umpire.

575

     626.9940 Grounds for discretionary denial, suspension, or

576

revocation of a license as a property insurance appraisal

577

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

578

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

579

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

580

insurance appraisal umpire, if it finds that the umpire has:

581

     (1) Failed to timely communicate with the appraisers

582

without good cause.

583

     (2) Failed or refused to exercise reasonable diligence in

584

submitting recommendations to the appraisers.

585

     (3) Violated any ethical standard for property insurance

586

appraisal umpires set forth in s. 626.9941.

587

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

588

days after pleading guilty or nolo contendere to, or being

589

convicted or found guilty of, any felony.

590

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

591

business location, or has failed to fully disclose all business

592

locations from which he or she operates as a property insurance

593

appraisal umpire.

594

     626.9941 Ethical standards for property insurance appraisal

595

umpires.--

596

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

597

impartiality throughout the appraisal process. Impartiality means

598

freedom from favoritism or bias in word, action, or appearance.

599

An umpire shall withdraw from appraisal if the umpire is no

600

longer impartial.

601

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

602

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

603

appraisal process. During the appraisal process, an umpire may

604

not solicit or otherwise attempt to procure future professional

605

services.

606

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

607

in a matter that presents a clear or undisclosed conflict of

608

interest. A conflict of interest arises when any relationship

609

between the umpire and the appraisal participants or the subject

610

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

611

umpire's impartiality.

612

     (4) BURDEN OF DISCLOSURE.--The burden of disclosure of any

613

potential conflict of interest rests on the umpire. Disclosure

614

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

615

of the interest or relationship giving rise to the potential

616

conflict of interest.

617

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

618

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

619

of interest clearly impairs an umpire's impartiality, the umpire

620

shall withdraw regardless of the express agreement of the

621

parties.

622

     (6) CONFIDENTIALITY.--An umpire shall maintain

623

confidentiality of all information revealed during an appraisal

624

except where disclosure is required by law.

625

     (7) RECORDKEEPING.--An umpire shall maintain

626

confidentiality in the storage and disposal of records and may

627

not disclose any identifying information when materials are used

628

for research, training, or statistical compilations.

629

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

630

trust. Fees charged for appraisal services shall be reasonable

631

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

632

guided by the following general principles in determining fees:

633

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

634

not exceed actual time spent or allocated;

635

     (b) Charges for costs shall be for those actually incurred;

636

and

637

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

638

compensation or reimbursement any payment, commission, or fee

639

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

640

arriving at a particular value or any future happening or outcome

641

of the assignment.

642

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

643

records necessary to support charges for services and expenses

644

and upon request shall provide an accounting of all applicable

645

charges to the parties.

646

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

647

practices that contain false or misleading information. An umpire

648

shall ensure that any advertisements of the umpire's

649

qualifications, services to be rendered, or the appraisal process

650

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

651

achieving specific outcomes or promises implying favoritism for

652

the purpose of obtaining business.

653

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

654

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

655

would compromise the umpire's integrity or impartiality.

656

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

657

appointment or selection, withdraw, or request appropriate

658

assistance when the facts and circumstances of the appraisal are

659

beyond the umpire's skill or experience.

660

     626.9942 Retention of records.--An umpire licensed under

661

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

662

copies of any contracts engaging the umpire's services, appraisal

663

reports, and supporting data assembled and formulated by the

664

umpire in preparing appraisal reports. The period for retaining

665

the records applicable to each engagement of the services of the

666

umpire starts on the date of the submission of the appraisal

667

report to the client. These records must be made available by the

668

umpire for inspection and copying by the department upon

669

reasonable notice to the umpire. If an appraisal has been the

670

subject of, or has been admitted as evidence in, a lawsuit,

671

reports and records must be retained for at least 2 years after

672

the date on which the trial ends.

673

     Section 7.  Section 627.4141, Florida Statutes, is created

674

to read:

675

     627.4141 Residential or commercial property insurance loss

676

appraisal.--If a residential or commercial residential property

677

insurance contract provides that either party may submit a

678

written demand to enter into the process of appraisal if the

679

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

680

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

681

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

682

process shall be governed by this section. The insurer may refuse

683

to accept the demand only if the insured materially failed to

684

comply with the post-loss obligations of the insured as set forth

685

in the policy conditions.

686

     (1) Each party shall select a competent and independent

687

appraiser and notify the other party of the appraiser selected

688

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

689

appraisers shall select a competent, independent, and impartial

690

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

691

insurance appraisal umpires. If the appraisers are unable to

692

agree on an umpire within 15 days, the insured or the insurer may

693

file a petition with a county or circuit court in the

694

jurisdiction in which the covered property is located to

695

designate a licensed property insurance appraisal umpire for the

696

appraisal.

697

     (2) Appraisal proceedings are informal unless the insured

698

and the insurer mutually agree otherwise. For purposes of this

699

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

700

conducted, including depositions, interrogatories, requests for

701

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

702

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

703

be used for the proceedings.

704

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

705

written report to the other appraiser, separately stating the

706

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

707

replace each item. The appraisers shall attempt to resolve any

708

differences in their appraisals and reach a mutual agreement on

709

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

710

submit the differences in their findings to the umpire.

711

     (4) The umpire shall review any differences in appraisals

712

submitted by the appraisers and determine the amount of the loss

713

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

714

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

715

conclusions in writing to each appraiser.

716

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

717

umpire, an itemized written appraisal award signed by the umpire

718

and the appraiser shall be filed with the insurer and shall

719

determine the amount of the loss.

720

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

721

insured with regard to the amount of the loss. The insurer

722

retains the right to enforce policy terms, conditions, and

723

exclusions with regard to coverage issues.

724

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

725

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

726

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

727

determination of the amount of the loss exceeds 50 percent of the

728

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

729

expenses, including any fees and expenses charged by the

730

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

731

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

732

apply to residential and commercial property insurance loss

733

appraisal proceedings.

734

     (9) The appraisal process may not address issues involving

735

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

736

the insurance contract. However, the appraisers and the umpire

737

may consider causation issues, when necessary, to determine the

738

amount of loss.

739

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