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; amending s.

50

627.805, F.S.; providing for regulation of the issuance

51

and sale of variable and indeterminate value contracts by

52

the Department of Financial Services, the Office of

53

Insurance Regulation, and the Office of Financial

54

Regulation; authorizing the department and the Financial

55

Services Commission to adopt rules; providing an effective

56

date.

57

58

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

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60

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

61

Seibel Act."

62

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

63

626.171, Florida Statutes, is amended to read:

64

     626.171  Application for license as an agent, customer

65

representative, adjuster, service representative, managing

66

general agent, or reinsurance intermediary.--

67

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

68

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

69

residence address, business address, and mailing address, home

70

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

71

72

However, the application must contain a statement that an

73

applicant is not required to disclose his or her race or

74

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

75

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

76

information exclusively for research and statistical purposes and

77

to improve the quality and fairness of the examinations.

78

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

79

section 626.2815, Florida Statutes, to read:

80

     626.2815  Continuing education required; application;

81

exceptions; requirements; penalties.--

82

     (3)

83

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

84

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

85

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

86

education, approved by the department, on the subject of

87

suitability in annuity and life insurance transactions. A

88

licensee may use the hours obtained under this paragraph to

89

satisfy the requirement for continuing education in ethics under

90

paragraph (a).

91

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

92

read:

93

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

94

shall notify the department in writing within 60 days after a

95

change of name, residence address, principal business street

96

address, or mailing address, home telephone number, business

97

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

98

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

99

license and all appointments immediately terminated by the

100

department. Failure to notify the department within the required

101

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

102

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

103

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

104

pursuant to s. 626.611 or s. 626.621.

105

     Section 5.  Section 626.9521, Florida Statutes, is amended

106

to read:

107

     626.9521  Unfair methods of competition and unfair or

108

deceptive acts or practices prohibited; penalties.--

109

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

110

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

111

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

112

competition or an unfair or deceptive act or practice involving

113

the business of insurance.

114

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

115

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

116

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

117

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

118

violation. Fines under this subsection may not exceed an

119

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

120

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

121

willful violations arising out of the same action. The fines

122

authorized by this subsection may be imposed in addition to any

123

other applicable penalty.

124

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

125

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

126

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

127

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

128

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. However, if the victim of such offense is

131

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

132

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

133

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

134

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

135

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

136

each willful violation. To impose criminal penalties under this

137

paragraph, the agent must have exhibited a pattern or of

138

"churning" or "twisting" and the practice of "churning" must

139

involve the conduct described in both sub-subparagraphs a. and b.

140

of s. 626.9541(1)(aa)1.

141

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

142

fraudulent signatures on an application or policy-related

143

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

144

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

145

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

146

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

147

violation.

148

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

149

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

150

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

151

willful violations arising out of the same action.

152

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

153

626.9521, Florida Statutes, which exceeds the increase provided

154

by this act shall supersede the amendments made to that section

155

by this act if such increase is enacted during the 2008

156

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

157

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

158

effect.

159

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

160

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

161

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

162

     626.9541  Unfair methods of competition and unfair or

163

deceptive acts or practices defined.--

164

     (1)  UNFAIR METHODS OF COMPETITION AND UNFAIR OR DECEPTIVE

165

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

166

and unfair or deceptive acts or practices:

167

     (aa)  Churning.--

168

     1.  Churning is the practice whereby policy values in an

169

existing life insurance policy or annuity contract, including,

170

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

171

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

172

used utilized to purchase another insurance policy or annuity

173

contract with that same insurer for the purpose of earning

174

additional premiums, fees, commissions, or other compensation:

175

     a.  Without an objectively reasonable basis for believing

176

that the replacement or extraction will result in an actual and

177

demonstrable benefit to the policyholder;

178

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

179

misleading or that involves a deceptive omission;

180

     c.  When the applicant is not informed that the policy

181

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

182

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

183

utilized in the purchase of the replacing or additional policy or

184

contract, if this is the case; or

185

     d.  Without informing the applicant that the replacing or

186

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

187

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

188

189

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

190

competition and an unfair or deceptive act or practice.

191

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

192

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

193

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

194

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

195

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

196

policy or contract will be used to purchase a replacing or

197

additional policy or contract with the same insurer. The form

198

must shall include disclosure of the premium, the death benefit

199

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

200

the policy values of the existing policy or contract will be

201

insufficient to pay the premiums of the replacing or additional

202

policy or contract.

203

     3.  Each insurer shall adopt written procedures to

204

reasonably avoid churning of policies or contracts that it has

205

issued, and failure to adopt written procedures sufficient to

206

reasonably avoid churning shall be an unfair method of

207

competition and an unfair or deceptive act or practice.

208

     (ee) Fraudulent signatures on an application or policy-

209

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

210

of a consumer an insurance application or policy-related document

211

bearing a false or fraudulent signature.

212

     (ff) Unlawful use of designations; misrepresentation of

213

agent qualifications.--

214

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

215

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

216

way as to falsely imply that the licensee:

217

     a. Possesses special financial knowledge or has obtained

218

specialized financial training; or

219

     b. Is certified or qualified to provide specialized

220

financial advice to senior citizens.

221

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

222

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

223

or qualified to discuss, sell, or recommend financial products

224

other than insurance products.

225

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

226

solicitation for insurance, falsely imply that he or she is

227

qualified to discuss, recommend, or sell securities or other

228

investment products in addition to insurance products.

229

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

230

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

231

chartered financial consultant (ChFC), life underwriter training

232

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

233

securities from the Financial Industry Regulatory Authority

234

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

235

and make recommendations in accordance with those licenses or

236

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

237

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

238

626.99, Florida Statutes, is amended to read:

239

     626.99  Life insurance solicitation.--

240

     (4)  DISCLOSURE REQUIREMENTS.--

241

     (a)  The insurer shall provide to each prospective purchaser

242

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

243

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

244

for which application is made provides contains a provision for

245

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

246

unless the policy summary contains an offer of such an

247

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

248

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

249

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

250

provide to each prospective purchaser a buyer's guide to

251

annuities and a contract summary as provided in the National

252

Association of Insurance Commissioners (NAIC) Model Annuity and

253

Deposit Fund Regulation and the policy must provide shall contain

254

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

255

14 10 days.

256

     Section 9.  Section 627.4554, Florida Statutes, is amended

257

to read:

258

     627.4554 Annuity and life insurance investments by

259

seniors.--

260

     (1)  PURPOSE; CONSTRUCTION.--

261

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

262

and procedures for making recommendations to senior consumers

263

which result in a transaction involving life insurance or annuity

264

products to appropriately address the insurance needs and

265

financial objectives of senior consumers at the time of the

266

transaction.

267

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

268

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

269

violation of this section.

270

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

271

recommendation to purchase or exchange an annuity or life

272

insurance product which is made to a senior consumer by an

273

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

274

which, that results in the purchase or exchange recommended.

275

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

276

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

277

indexed annuity, or variable annuity that is individually

278

solicited, whether the product is classified as an individual

279

annuity or a group annuity.

280

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

281

lives.

282

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

283

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

284

to an individual senior consumer which results in a purchase or

285

exchange of an annuity or life insurance contract in accordance

286

with that advice.

287

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

288

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

289

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

290

parties is age 65 or older.

291

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

292

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

293

exchange of an annuity or life insurance contract which or the

294

exchange of an annuity that results in another insurance

295

transaction or series of insurance transactions, an insurance

296

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

297

shall have an objectively reasonable basis grounds for believing

298

that the recommendation is suitable for the senior consumer based

299

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

300

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

301

or her financial situation and needs.

302

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

303

or life insurance contract resulting from a recommendation to a

304

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

305

insurance agent is involved, shall make reasonable efforts to

306

obtain information concerning the suitability of senior

307

consumer's financial status, tax status, and investment

308

objectives and such other information used or considered to be

309

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

310

involved, in making the recommendation. The information shall

311

include, at a minimum:

312

     1. Personal information, including the age and gender of

313

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

314

of any dependents;

315

     2. Sources and amounts of income, including employment and

316

salary details or other compensation applicable to the parties to

317

the annuity or life insurance;

318

     3. Financial information applicable to the parties to the

319

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

320

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

321

short-term debt;

322

     4. Other in-force insurance and annuities;

323

     5. Tax status of the consumer;

324

     6. Current and foreseeable living and health concerns;

325

     7. Investment experience of the consumer;

326

     8. Savings and investment goals relative to investment and

327

income time horizons and need for liquidity;

328

     9. Individual investment objectives, consumer-anticipated

329

changes in needs, and income time horizons and need for

330

liquidity;

331

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

332

the annuity or life insurance; and

333

     11. Such other information used or considered to be

334

relevant by the insurance agent or insurer in making

335

recommendations to the consumer regarding the purchase or

336

exchange of an annuity or life insurance contract.

337

338

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

339

the department and completed and signed by the applicant and

340

agent. Questions requesting this information must be presented in

341

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

342

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

343

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

344

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

345

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

346

delivery of the contract or contracts.

347

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

348

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

349

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

350

paragraph (a) related to any recommendation if the senior

351

consumer:

352

     a.  Refuses to provide relevant information requested by the

353

insurer or insurance agent;

354

     b.  Decides to enter into an insurance transaction that is

355

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

356

or

357

     c.  Fails to provide complete or accurate information.

358

     2.  An insurer or insurance agent's recommendation subject

359

to subparagraph 1. shall be objectively reasonable under all the

360

circumstances actually known to the insurer or insurance agent at

361

the time of the recommendation.

362

     3. If the consumer refuses to provide relevant information

363

requested by the insurance agent or insurer, before the execution

364

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

365

verification from the senior consumer on a form adopted by rule

366

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

367

information and may be limiting protections afforded by this

368

section regarding the suitability of the sale.

369

     (d) In addition to the information required by paragraph

370

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

371

annuity or life insurance policy resulting from a recommendation,

372

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

373

by the department, information concerning differences between

374

each existing annuity or life insurance policy and the annuity or

375

life insurance policy being recommended in order to determine the

376

suitability of the recommendation and its benefit to the

377

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

378

provided by the agent to the insurer within 10 days after

379

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

380

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

381

information shall include, at a minimum:

382

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

383

between the annuities and life insurance policies;

384

     2. A comparison of any fees and charges between the

385

annuities and life insurance policies;

386

     3. A written basis for the recommended exchange, including

387

the overall advantages and disadvantages to the consumer if the

388

recommendation is followed; and

389

     4. Such other information used or considered to be relevant

390

by the insurance agent or the insurer in making recommendations

391

to the consumer regarding the replacement or exchange of an

392

annuity or life insurance policy.

393

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

394

annuity or life insurance policy resulting from a recommendation,

395

an agent shall also disclose to the consumer that such purchase

396

or exchange may have tax consequences and that the applicant

397

should contact his or her tax advisor for more information.

398

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

399

that a system to supervise recommendations, which is reasonably

400

designed to achieve compliance with this section, is established

401

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

402

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

403

limited to:

404

     a.  Maintaining written procedures.

405

     b.  Conducting periodic reviews of its records that are

406

reasonably designed to assist in detecting and preventing

407

violations of this section.

408

     2.  A managing general agent and an insurance agency shall

409

adopt a system established by an insurer to supervise

410

recommendations of its insurance agents which is reasonably

411

designed to achieve compliance with this section or shall

412

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

413

to:

414

     a.  Maintaining written procedures.

415

     b.  Conducting periodic reviews of records that are

416

reasonably designed to assist in detecting and preventing

417

violations of this section.

418

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

419

managing general agent or an insurance agency, to establish and

420

maintain a system of supervision as required by subparagraph 1.

421

with respect to insurance agents under contract with or employed

422

by the third party.

423

     4.  An insurer shall make reasonable inquiry to ensure that

424

such third party contracting under subparagraph 3. is performing

425

the functions required under subparagraph 1. and shall take such

426

action as is reasonable under the circumstances to enforce the

427

contractual obligation to perform the functions. An insurer may

428

comply with its obligation to make reasonable inquiry by:

429

     a.  Annually obtaining a certification from a third party

430

senior manager who has responsibility for the delegated functions

431

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

432

represent, that the third party is performing the required

433

functions.

434

     b.  Based on reasonable selection criteria, periodically

435

selecting third parties contracting under subparagraph 3. for a

436

review to determine whether the third parties are performing the

437

required functions. The insurer shall perform any procedures

438

necessary to conduct the review which are reasonable under the

439

circumstances.

440

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

441

subparagraph 3. and complies with the requirements specified in

442

subparagraph 4. is deemed to have fulfilled its responsibilities

443

under subparagraph 1.

444

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

445

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

446

     a.  Review or provide for review of all transactions

447

solicited by an insurance agent; or

448

     b.  Include in its system of supervision an insurance

449

agent's recommendations to senior consumers of products other

450

than the annuities offered by the insurer, managing general

451

agent, or insurance agency.

452

     7.  A managing general agent or insurance agency contracting

453

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

454

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

455

certification as described in subparagraph 4. or provide a clear

456

statement that the managing general agent or insurance agency is

457

unable to meet the certification criteria.

458

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

459

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

460

responsibility for the delegated functions and has a reasonable

461

basis for making the certification.

462

     (5)  MITIGATION OF RESPONSIBILITY.--

463

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

464

appropriate corrective action, including rescission of the policy

465

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

466

accumulation value, whichever is greater, for any senior consumer

467

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

468

insurer's insurance agent.

469

     (b)  The department may order:

470

     1.  An insurance agent to take reasonably appropriate

471

corrective action for any senior consumer harmed by a violation

472

of this section by the insurance agent.

473

     2.  A managing general agency or insurance agency that

474

employs or contracts with an insurance agent to sell or solicit

475

the sale of annuities to senior consumers to take reasonably

476

appropriate corrective action for any senior consumer harmed by a

477

violation of this section by the insurance agent.

478

     (c)  Any applicable penalty under the Florida Insurance Code

479

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

480

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

481

a schedule adopted by the office or the department, as

482

appropriate, if corrective action for the senior consumer was

483

taken promptly after a violation was discovered.

484

     (6)  RECORDKEEPING.--

485

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

486

and insurance agents shall each maintain or be able to make

487

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

488

the information collected from the senior consumer and other

489

information used in making the recommendations that were the

490

basis for insurance transactions for 5 years after the insurance

491

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

492

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

493

an insurance agent.

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     (b) Records required to be maintained by this subsection

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regulation may be maintained in paper, photographic,

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

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any process that accurately reproduces the actual document.

498

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

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this section does not apply to recommendations involving:

500

     (a)  Direct-response solicitations where there is no

501

recommendation based on information collected from the senior

502

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

505

covered by the Employee Retirement and Income Security Act;

506

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

507

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

508

amended, if established or maintained by an employer;

509

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

510

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

511

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

512

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

513

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

517

with personal injury litigation or any dispute or claim

518

resolution process; or

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     6.  Prepaid funeral contracts.

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     (8) APPLICATION TO VARIABLE ANNUITIES AND VARIABLE LIFE

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INSURANCE.--Compliance with the Financial Industry Regulatory

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Authority National Association of Securities Dealers Conduct

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Rules in effect on May 5, 2008 January 1, 2004, shall satisfy the

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requirements under this section for the recommendation of

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variable annuities and variable life insurance. This section does

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not limit the department's ability to enforce the provisions of

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this section with respect to insurance agents, insurance

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agencies, and managing general agents, or the office's ability to

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enforce the 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.  Section 627.805, Florida Statutes, is amended

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to read:

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     627.805  Regulation of variable and indeterminate value

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contracts; rules.--The Department of Financial Services and the

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Office of Insurance Regulation office, notwithstanding any other

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provision of law, shall have the sole authority to regulate the

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issuance and sale of variable and indeterminate value contracts

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pursuant to their respective authority as conferred by state law.

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The Office of Financial Regulation shall regulate the sale of

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variable and indeterminate value contracts pursuant to its

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authority under chapter 517. The Department of Financial Services

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and, when applicable, the Financial Services Commission, may, and

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the commission has authority to adopt rules pursuant to ss.

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120.536(1) and 120.54 to implement the provisions of this part.

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     Section 11.  This act shall take effect January 1, 2009.