1

A bill to be entitled

2

An act relating to insurance; providing a short title;

3

amending s. 626.171, F.S.; requiring that an applicant for

4

licensure as an insurance agent, customer representative,

5

adjuster, service representative, managing general agent,

6

or reinsurance intermediary provide to the Department of

7

Financial Services his or her home and office telephone

8

numbers and e-mail address; amending s. 626.2815, F.S.;

9

requiring persons licensed to solicit or sell life

10

insurance to complete a specified number of hours in

11

continuing education on the subject of suitability in

12

annuity and life insurance transactions; amending s.

13

626.551, F.S.; requiring that a licensee notify the

14

department within 60 days after a change in home or

15

business telephone numbers or e-mail address; amending s.

16

626.9521, F.S.; providing enhanced penalties for offenses

17

involving misleading representations or fraudulent

18

comparisons or omissions, the generation of unlawful fees

19

and commissions, or the use of fraudulent signatures;

20

providing for other enhanced penalties to supersede the

21

penalties provided by the act under certain conditions;

22

amending s. 626.9541, F.S.; revising the elements of the

23

offense known as "churning" to include direct or indirect

24

purchases made for the purpose of earning fees or

25

commissions; providing that the submission of certain

26

fraudulent signatures or the misrepresentation of a

27

licensee's qualifications constitute an unfair method of

28

competition and an unfair or deceptive act or practice;

29

amending s. 626.99, F.S.; revising requirements for life

30

insurance or annuity policies to increase the period of

31

time allowed for obtaining an unconditional refund;

32

requiring insurers for all types of annuities to provide a

33

buyer's guide and a policy summary to the buyer; amending

34

s. 627.4554, F.S.; providing for the regulation of

35

recommendations relating to the sale of life insurance

36

products to senior consumers; redefining the term

37

"annuity" and defining the term "life insurance contract";

38

requiring that an agent obtain financial and other

39

information concerning the senior consumer before

40

executing a purchase or exchange of an annuity or life

41

insurance contract; requiring that the agent perform a

42

suitability analysis relative to the investment he or she

43

recommends and document the analysis in writing; requiring

44

an agent to provide a comparison of current and

45

recommended products if the transaction involves the

46

replacement or exchange of an in-force insurance policy or

47

annuity; requiring an agent to provide information about

48

any surrender charges and tax consequences; authorizing

49

the department and commission to adopt rules; providing an

50

effective date.

51

52

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

53

54

     Section 1. This act may be cited as the "John and Patricia

55

Seibel Act."

56

     Section 2.  Paragraph (a) of subsection (2) of section

57

626.171, Florida Statutes, is amended to read:

58

     626.171  Application for license as an agent, customer

59

representative, adjuster, service representative, managing

60

general agent, or reinsurance intermediary.--

61

     (2)  In the application, the applicant shall set forth:

62

     (a)  His or her full name, age, social security number,

63

residence address, business address, and mailing address, home

64

telephone number, business telephone number, and e-mail address.

65

66

However, the application must contain a statement that an

67

applicant is not required to disclose his or her race or

68

ethnicity, gender, or native language, that he or she will not be

69

penalized for not doing so, and that the department will use this

70

information exclusively for research and statistical purposes and

71

to improve the quality and fairness of the examinations.

72

     Section 3.  Paragraph (k) is added to subsection (3) of

73

section 626.2815, Florida Statutes, to read:

74

     626.2815  Continuing education required; application;

75

exceptions; requirements; penalties.--

76

     (3)

77

     (k) Effective January 1, 2009, and until January 1, 2010,

78

any person who holds a license to solicit or sell life insurance

79

in this state must complete a minimum of 3 hours in continuing

80

education, approved by the department, on the subject of

81

suitability in annuity and life insurance transactions. A

82

licensee may use the hours obtained under this paragraph to

83

satisfy the requirement for continuing education in ethics under

84

paragraph (a).

85

     Section 4.  Section 626.551, Florida Statutes, is amended to

86

read:

87

     626.551  Notice of change of address, name.--Every licensee

88

shall notify the department in writing within 60 days after a

89

change of name, residence address, principal business street

90

address, or mailing address, home telephone number, business

91

telephone number, or e-mail address. A Any licensed agent who has

92

moved his or her residence from this state shall have his or her

93

license and all appointments immediately terminated by the

94

department. Failure to notify the department within the required

95

time period shall result in a fine not to exceed $250 for the

96

first offense and, for subsequent offenses, a fine of at least

97

not less than $500 or suspension or revocation of the license

98

pursuant to s. 626.611 or s. 626.621.

99

     Section 5.  Section 626.9521, Florida Statutes, is amended

100

to read:

101

     626.9521  Unfair methods of competition and unfair or

102

deceptive acts or practices prohibited; penalties.--

103

     (1)  No person shall engage in this state in any trade

104

practice which is defined in this part as, or determined pursuant

105

to s. 626.951 or s. 626.9561 to be, an unfair method of

106

competition or an unfair or deceptive act or practice involving

107

the business of insurance.

108

     (2) Except as provided in subsection (3), any person who

109

violates any provision of this part is shall be subject to a fine

110

in an amount not greater than $2,500 for each nonwillful

111

violation and not greater than $20,000 for each willful

112

violation. Fines under this subsection may not exceed an

113

aggregate amount of $10,000 for all nonwillful violations arising

114

out of the same action or an aggregate amount of $100,000 for all

115

willful violations arising out of the same action. The fines

116

authorized by this subsection may be imposed in addition to any

117

other applicable penalty.

118

     (3)(a) If a person violates s. 626.9541(1)(l), the offense

119

known as "twisting," or violates s. 626.9541(1)(aa), the offense

120

known as "churning," the person commits a felony of the third

121

degree, punishable as provided in s. 775.082, and a fine not

122

greater than $5,000 shall be imposed for each nonwillful

123

violation or a fine not greater than $30,000 shall be imposed for

124

each willful violation. However, if the victim of such offense is

125

65 years of age or older or the agent knew or should have known

126

the victim is mentally disabled, the person commits a felony of

127

the second degree, punishable as provided in s. 775.082, and a

128

fine not greater than $5,000 shall be imposed for each nonwillful

129

violation or a fine not greater than $30,000 shall be imposed for

130

each willful violation. To impose criminal penalties under this

131

subparagraph, the agent must have exhibited a pattern or practice

132

of "churning" or "twisting."

133

     (b) If a person violates s. 626.9541(1)(ee) by submitting

134

fraudulent signatures on an application or policy-related

135

document, the person commits a felony of the third degree,

136

punishable as provided in s. 775.082, and a fine not greater than

137

$5,000 shall be imposed for each nonwillful violation or a fine

138

not greater than $30,000 shall be imposed for each willful

139

violation.

140

     (c) Fines under this subsection may not exceed an aggregate

141

amount of $20,000 for all nonwillful violations arising out of

142

the same action or an aggregate amount of $150,000 for all

143

willful violations arising out of the same action.

144

     Section 6. Any increase in the fines imposed under s.

145

626.9521, Florida Statutes, which exceeds the increase provided

146

by this act shall supersede the amendments made to that section

147

by this act if such increase is enacted during the 2008

148

legislative session and becomes law, and the amendments to s.

149

626.9521, Florida Statutes, made by this act shall not take

150

effect.

151

     Section 7.  Paragraph (aa) of subsection (1) of section

152

626.9541, Florida Statutes, is amended, and paragraphs (ee) and

153

(ff) are added to that subsection, to read:

154

     626.9541  Unfair methods of competition and unfair or

155

deceptive acts or practices defined.--

156

     (1)  UNFAIR METHODS OF COMPETITION AND UNFAIR OR DECEPTIVE

157

ACTS.--The following are defined as unfair methods of competition

158

and unfair or deceptive acts or practices:

159

     (aa)  Churning.--

160

     1.  Churning is the practice whereby policy values in an

161

existing life insurance policy or annuity contract, including,

162

but not limited to, cash, loan values, or dividend values, and in

163

any riders to that policy or contract, are directly or indirectly

164

used utilized to purchase another insurance policy or annuity

165

contract with that same insurer for the purpose of earning

166

additional premiums, fees, commissions, or other compensation:

167

     a.  Without an objectively reasonable basis for believing

168

that the replacement or extraction will result in an actual and

169

demonstrable benefit to the policyholder;

170

     b.  In a fashion that is fraudulent, deceptive, or otherwise

171

misleading or that involves a deceptive omission;

172

     c.  When the applicant is not informed that the policy

173

values including cash values, dividends, and other assets of the

174

existing policy or contract will be reduced, forfeited, or used

175

utilized in the purchase of the replacing or additional policy or

176

contract, if this is the case; or

177

     d.  Without informing the applicant that the replacing or

178

additional policy or contract will not be a paid-up policy or

179

that additional premiums will be due, if this is the case.

180

181

Churning by an insurer or an agent is an unfair method of

182

competition and an unfair or deceptive act or practice.

183

     2.  Each insurer shall comply with sub-subparagraphs 1.c.

184

and 1.d. by disclosing to the applicant at the time of the offer

185

on a form designed and adopted by rule by the commission if, how,

186

and the extent to which the policy or contract values (including

187

cash value, dividends, and other assets) of a previously issued

188

policy or contract will be used to purchase a replacing or

189

additional policy or contract with the same insurer. The form

190

must shall include disclosure of the premium, the death benefit

191

of the proposed replacing or additional policy, and the date when

192

the policy values of the existing policy or contract will be

193

insufficient to pay the premiums of the replacing or additional

194

policy or contract.

195

     3.  Each insurer shall adopt written procedures to

196

reasonably avoid churning of policies or contracts that it has

197

issued, and failure to adopt written procedures sufficient to

198

reasonably avoid churning shall be an unfair method of

199

competition and an unfair or deceptive act or practice.

200

     (ee) Fraudulent signatures on an application or policy-

201

related document.--Willfully submitting to an insurer on behalf

202

of a consumer an insurance application or policy-related document

203

bearing a false or fraudulent signature.

204

     (ff) Unlawful use of designations; misrepresentation of

205

agent qualifications.--

206

     1. A licensee may not, in any sales presentation or

207

solicitation for insurance, use a designation or title in such a

208

way as to falsely imply that the licensee:

209

     a. Possesses special financial knowledge or has obtained

210

specialized financial training; or

211

     b. Is certified or qualified to provide specialized

212

financial advice to senior citizens.

213

     2. A licensee may not use terms such as "financial advisor"

214

in such a way as to falsely imply that the licensee is licensed

215

or qualified to discuss, sell, or recommend financial products

216

other than insurance products.

217

     3. A licensee may not, in any sales presentation or

218

solicitation for insurance, falsely imply that he or she is

219

qualified to discuss, recommend, or sell securities or other

220

investment products in addition to insurance products.

221

     4. A licensee who also holds a designation as a certified

222

financial planner (CFP), chartered life underwriter (CLU),

223

chartered financial consultant (ChFC), life underwriter training

224

council fellow (LUTC), or the appropriate license to sell

225

securities from the Financial Industry Regulatory Authority

226

(FINRA) may inform the customer of those licenses or designations

227

and make recommendations in accordance with those licenses or

228

designations, and in so doing does not violate this paragraph.

229

     Section 8.  Paragraph (a) of subsection (4) of section

230

626.99, Florida Statutes, is amended to read:

231

     626.99  Life insurance solicitation.--

232

     (4)  DISCLOSURE REQUIREMENTS.--

233

     (a)  The insurer shall provide to each prospective purchaser

234

a buyer's guide and a policy summary prior to accepting the any

235

applicant's initial premium or premium deposit, unless the policy

236

for which application is made provides contains a provision for

237

an unconditional refund for a period of at least 14 10 days, or

238

unless the policy summary contains an offer of such an

239

unconditional refund, in which event the buyer's guide and policy

240

summary must be delivered with the policy or prior to delivery of

241

the policy. With respect to fixed annuities, the insurer shall

242

provide to each prospective purchaser a buyer's guide to

243

annuities and a contract summary as provided in the National

244

Association of Insurance Commissioners (NAIC) Model Annuity and

245

Deposit Fund Regulation and the policy must provide shall contain

246

a provision for an unconditional refund for a period of at least

247

14 10 days.

248

     Section 9.  Section 627.4554, Florida Statutes, is amended

249

to read:

250

     627.4554 Annuity and life insurance investments by

251

seniors.--

252

     (1)  PURPOSE; CONSTRUCTION.--

253

     (a)  The purpose of this section is to set forth standards

254

and procedures for making recommendations to senior consumers

255

which result in a transaction involving life insurance or annuity

256

products to appropriately address the insurance needs and

257

financial objectives of senior consumers at the time of the

258

transaction.

259

     (b) A violation of Nothing in this section does not shall

260

be construed to create or imply a private cause of action for a

261

violation of this section.

262

     (2)  APPLICATION.--This section applies to any

263

recommendation to purchase or exchange an annuity or life

264

insurance product which is made to a senior consumer by an

265

insurance agent, or an insurer where no agent is involved, and

266

which, that results in the purchase or exchange recommended.

267

     (3) DEFINITIONS.--For purposes of this section, the term:

268

     (a) "Annuity contract" means a fixed annuity, fixed equity

269

indexed annuity, or variable annuity that is individually

270

solicited, whether the product is classified as an individual

271

annuity or a group annuity.

272

     (b) "Life insurance contract" means life insurance of human

273

lives.

274

     (c)(b) "Recommendation" means advice provided by an

275

insurance agent, or an insurer if no insurance agent is involved,

276

to an individual senior consumer which results in a purchase or

277

exchange of an annuity or life insurance contract in accordance

278

with that advice.

279

     (d)(c) "Senior consumer" means a person 65 years of age or

280

older. In the event of a joint purchase by more than one party, a

281

purchaser is considered to be a senior consumer if any of the

282

parties is age 65 or older.

283

     (4)  DUTIES OF INSURERS AND INSURANCE AGENTS.--

284

     (a) In recommending to a senior consumer the purchase or

285

exchange of an annuity or life insurance contract which or the

286

exchange of an annuity that results in another insurance

287

transaction or series of insurance transactions, an insurance

288

agent, or an insurer if no insurance agent is involved, must

289

shall have an objectively reasonable basis grounds for believing

290

that the recommendation is suitable for the senior consumer based

291

on the basis of the facts disclosed by the senior consumer as to

292

his or her investments and other insurance products and as to his

293

or her financial situation and needs.

294

     (b)  Before executing a purchase or exchange of an annuity

295

or life insurance contract resulting from a recommendation to a

296

senior consumer, an insurance agent, or an insurer if no

297

insurance agent is involved, shall make reasonable efforts to

298

obtain information concerning the suitability of senior

299

consumer's financial status, tax status, and investment

300

objectives and such other information used or considered to be

301

reasonable by the insurance agent, or the insurer if no agent is

302

involved, in making the recommendation. The information shall

303

include, at a minimum:

304

     1. Personal information, including the age and gender of

305

the parties to the annuity or life insurance and ages and number

306

of any dependents;

307

     2. Sources and amounts of income, including employment and

308

salary details or other compensation applicable to the parties to

309

the annuity or life insurance;

310

     3. Financial information applicable to the parties to the

311

annuity or life insurance, including, at a minimum, specific

312

assets and liabilities to determine net worth and long-term and

313

short-term debt;

314

     4. Other in-force insurance and annuities and retirement or

315

savings plans;

316

     5. Tax status of the consumer;

317

     6. Current and foreseeable living and health-related

318

expenses;

319

     7. Investment experience of the consumer;

320

     8. Savings and investment goals relative to investment and

321

income time horizons and need for liquidity;

322

     9. Individual objectives, anticipated changes in needs, and

323

investment preferences, including risk tolerance;

324

     10. The source of the funds that will be used to purchase

325

the annuity or life insurance; and

326

     11. Such other information used or considered to be

327

relevant by the insurance agent or insurer in making

328

recommendations to the consumer regarding the purchase or

329

exchange of an annuity or life insurance contract.

330

331

This information shall be collected on a form adopted by rule by

332

the department and completed and signed by the applicant and

333

agent. Questions requesting this information must be presented in

334

at least 12-point type and be sufficiently clear so as to be

335

readily understandable by both the agent and the consumer. A true

336

and correct executed copy of the form shall be provided by the

337

agent to the insurer within 10 days after execution of the form,

338

and shall be provided to the consumer no later than the date of

339

delivery of the contract or contracts.

340

     (c)1.  Except as provided under subparagraph 2., an

341

insurance agent, or an insurer if no insurance agent is involved,

342

has no shall not have any obligation to a senior consumer under

343

paragraph (a) related to any recommendation if the senior

344

consumer:

345

     a.  Refuses to provide relevant information requested by the

346

insurer or insurance agent;

347

     b.  Decides to enter into an insurance transaction that is

348

not based on a recommendation of the insurer or insurance agent;

349

or

350

     c.  Fails to provide complete or accurate information.

351

     2.  An insurer or insurance agent's recommendation subject

352

to subparagraph 1. shall be objectively reasonable under all the

353

circumstances actually known to the insurer or insurance agent at

354

the time of the recommendation.

355

     3. If the consumer refuses to provide relevant information

356

requested by the insurance agent or insurer, before the execution

357

of the sale the insurance agent or insurer shall obtain a signed

358

verification from the senior consumer on a form adopted by rule

359

by the department that he or she refuses to provide the requested

360

information and may be limiting protections afforded by this

361

section regarding the suitability of the sale.

362

     (d) In addition to the information required by paragraph

363

(b), before the execution of a replacement or exchange of an

364

annuity or life insurance policy resulting from a recommendation,

365

the insurance agent shall also provide, on a form adopted by rule

366

by the department, information concerning differences between

367

each existing annuity or life insurance policy and the annuity or

368

life insurance policy being recommended in order to determine the

369

suitability of the recommendation and its benefit to the

370

consumer. A true and correct executed copy of this form shall be

371

provided by the agent to the insurer within 10 days after

372

execution of the form, and shall be provided to the consumer no

373

later than the date of delivery of the contract or contracts. The

374

information shall include, at a minimum:

375

     1. A comparison of the benefits, terms, and limitations

376

between the annuities and life insurance policies;

377

     2. A comparison of any fees and charges between the

378

annuities and life insurance policies;

379

     3. A written basis for the recommended exchange, including

380

the overall advantages and disadvantages to the consumer if the

381

recommendation is followed; and

382

     4. Such other information used or considered to be relevant

383

by the insurance agent or the insurer in making recommendations

384

to the consumer regarding the replacement or exchange of an

385

annuity or life insurance policy.

386

     (e) Prior to the execution of a purchase or exchange of an

387

annuity or life insurance policy resulting from a recommendation,

388

an agent shall also disclose to the consumer that such purchase

389

or exchange may have tax consequences and that the applicant

390

should contact his or her tax advisor for more information.

391

     (f)(d)1. An insurer or insurance agent must shall ensure

392

that a system to supervise recommendations, which is reasonably

393

designed to achieve compliance with this section, is established

394

and maintained by complying with subparagraphs 3., 4., and 5., or

395

shall establish and maintain such a system, including, but not

396

limited to:

397

     a.  Maintaining written procedures.

398

     b.  Conducting periodic reviews of its records that are

399

reasonably designed to assist in detecting and preventing

400

violations of this section.

401

     2.  A managing general agent and an insurance agency shall

402

adopt a system established by an insurer to supervise

403

recommendations of its insurance agents which is reasonably

404

designed to achieve compliance with this section or shall

405

establish and maintain such a system, including, but not limited

406

to:

407

     a.  Maintaining written procedures.

408

     b.  Conducting periodic reviews of records that are

409

reasonably designed to assist in detecting and preventing

410

violations of this section.

411

     3.  An insurer may contract with a third party, including a

412

managing general agent or an insurance agency, to establish and

413

maintain a system of supervision as required by subparagraph 1.

414

with respect to insurance agents under contract with or employed

415

by the third party.

416

     4.  An insurer shall make reasonable inquiry to ensure that

417

such third party contracting under subparagraph 3. is performing

418

the functions required under subparagraph 1. and shall take such

419

action as is reasonable under the circumstances to enforce the

420

contractual obligation to perform the functions. An insurer may

421

comply with its obligation to make reasonable inquiry by:

422

     a.  Annually obtaining a certification from a third party

423

senior manager who has responsibility for the delegated functions

424

that the manager has a reasonable basis to represent, and does

425

represent, that the third party is performing the required

426

functions.

427

     b.  Based on reasonable selection criteria, periodically

428

selecting third parties contracting under subparagraph 3. for a

429

review to determine whether the third parties are performing the

430

required functions. The insurer shall perform any procedures

431

necessary to conduct the review which are reasonable under the

432

circumstances.

433

     5.  An insurer that contracts with a third party pursuant to

434

subparagraph 3. and complies with the requirements specified in

435

subparagraph 4. is deemed to have fulfilled its responsibilities

436

under subparagraph 1.

437

     6.  An insurer, managing general agent, or insurance agency

438

is not required by subparagraph 1. or subparagraph 2. to:

439

     a.  Review or provide for review of all transactions

440

solicited by an insurance agent; or

441

     b.  Include in its system of supervision an insurance

442

agent's recommendations to senior consumers of products other

443

than the annuities offered by the insurer, managing general

444

agent, or insurance agency.

445

     7.  A managing general agent or insurance agency contracting

446

with an insurer pursuant to subparagraph 3. shall promptly, when

447

requested by the insurer pursuant to subparagraph 4., provide a

448

certification as described in subparagraph 4. or provide a clear

449

statement that the managing general agent or insurance agency is

450

unable to meet the certification criteria.

451

     8.  A person may not provide a certification under sub-

452

subparagraph 4.a. unless the person is a senior manager with

453

responsibility for the delegated functions and has a reasonable

454

basis for making the certification.

455

     (5)  MITIGATION OF RESPONSIBILITY.--

456

     (a)  The office may order an insurer to take reasonably

457

appropriate corrective action, including rescission of the policy

458

or contract and a full refund of the premiums paid or the

459

accumulation value, whichever is greater, for any senior consumer

460

harmed by a violation of this section by the insurer or the

461

insurer's insurance agent.

462

     (b)  The department may order:

463

     1.  An insurance agent to take reasonably appropriate

464

corrective action for any senior consumer harmed by a violation

465

of this section by the insurance agent.

466

     2.  A managing general agency or insurance agency that

467

employs or contracts with an insurance agent to sell or solicit

468

the sale of annuities to senior consumers to take reasonably

469

appropriate corrective action for any senior consumer harmed by a

470

violation of this section by the insurance agent.

471

     (c)  Any applicable penalty under the Florida Insurance Code

472

for a violation of paragraph (4)(a), paragraph (4)(b), or

473

subparagraph (4)(c)2. may be reduced or eliminated, according to

474

a schedule adopted by the office or the department, as

475

appropriate, if corrective action for the senior consumer was

476

taken promptly after a violation was discovered.

477

     (6)  RECORDKEEPING.--

478

     (a)  Insurers, managing general agents, insurance agencies,

479

and insurance agents shall each maintain or be able to make

480

available to the department or office, as appropriate, records of

481

the information collected from the senior consumer and other

482

information used in making the recommendations that were the

483

basis for insurance transactions for 5 years after the insurance

484

transaction is completed by the insurer. An insurer is permitted,

485

but shall not be required, to maintain documentation on behalf of

486

an insurance agent.

487

     (b) Records required to be maintained by this subsection

488

regulation may be maintained in paper, photographic,

489

microprocess, magnetic, mechanical, or electronic media, or by

490

any process that accurately reproduces the actual document.

491

     (7)  EXEMPTIONS.--Unless otherwise specifically included,

492

this section does not apply to recommendations involving:

493

     (a)  Direct-response solicitations where there is no

494

recommendation based on information collected from the senior

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consumer pursuant to this section.

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     (b)  Contracts used to fund:

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     1.  An employee pension or welfare benefit plan that is

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covered by the Employee Retirement and Income Security Act;

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     2.  A plan described by s. 401(a), s. 401(k), s. 403(b), s.

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408(k), or s. 408(p) of the Internal Revenue Code of 1986, as

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amended, if established or maintained by an employer;

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     3.  A government or church plan defined in s. 414 of the

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Internal Revenue Code of 1986, as amended, a government or church

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welfare benefit plan, or a deferred compensation plan of a state

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or local government or tax-exempt organization under s. 457 of

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the Internal Revenue Code of 1986, as amended;

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     4.  A nonqualified deferred compensation arrangement

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established or maintained by an employer or plan sponsor;

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     5.  Settlements of or assumptions of liabilities associated

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with personal injury litigation or any dispute or claim

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resolution process; or

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     6.  Prepaid funeral contracts.

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     (8)  APPLICATION TO VARIABLE ANNUITIES.--Compliance with the

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Financial Industry Regulatory Authority National Association of

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Securities Dealers Conduct Rules in effect on January 1, 2004,

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shall satisfy the requirements under this section for the

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recommendation of variable annuities. This section does not limit

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the department's ability to enforce the provisions of this

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section with respect to insurance agents, insurance agencies, and

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managing general agents, or the office's ability to enforce the

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provisions of this section with respect to insurers.

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     (9) RULES.--The department and commission may adopt rules

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to administer this section.

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     Section 10.  This act shall take effect January 1, 2009.