CS for CS for SB 2082 Second Engrossed

20082082e2

A bill to be entitled

An act relating to insurance; providing a short title;

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

licensure as an insurance agent, customer representative,

adjuster, service representative, managing general agent,

or reinsurance intermediary provide to the Department of

Financial Services his or her contact and business

telephone numbers and e-mail address; amending s.

626.2815, F.S.; requiring persons licensed to solicit or

sell life insurance to complete a specified number of

hours in continuing education on the subject of

suitability in annuity and life insurance transactions;

amending s. 626.551, F.S.; requiring that a licensee

notify the department within 60 days after a change in

contact or business telephone numbers or e-mail address;

amending s. 626.9521, F.S.; providing for administrative

fines and criminal penalties for offenses involving

misleading representations or fraudulent comparisons or

omissions, the generation of unlawful fees and

commissions, or the use of fraudulent signatures; limiting

the aggregate amounts of fines; providing for other

administrative fines to supersede the administrative fines

and penalties provided by the act under certain

conditions; amending s. 626.9541, F.S.; revising the

elements of the offense known as "churning" to include

direct or indirect purchases made for the purpose of

earning fees or commissions; providing that the willful

submission of certain fraudulent signatures or the

misrepresentation of a licensee's qualifications

constitute an unfair method of competition and an unfair

or deceptive act or practice; amending s. 626.99, F.S.;

revising requirements for life insurance or annuity

policies to increase the period of time allowed for

obtaining an unconditional refund; requiring insurers for

all types of annuities to provide a buyer's guide and a

policy summary to the buyer; amending s. 627.4554, F.S.;

revising the regulation of recommendations relating to the

sale of annuities to senior consumers; redefining the term

"annuity"; requiring that an agent obtain financial and

other information concerning the senior consumer before

executing a purchase or exchange of an annuity; requiring

that the agent perform a suitability analysis relative to

the investment he or she recommends and document the

analysis in writing; requiring an agent to provide a

comparison of current and recommended products if the

transaction involves the replacement or exchange of an

annuity; requiring an agent to provide information about

any surrender charges and tax consequences; exempting

certain persons from compliance with certain separate

suitability determinations under certain circumstances;

authorizing the department and Financial Services

Commission to adopt rules; amending s. 627.551, F.S.;

expanding the list of life insurance policies and plans of

self-insurance that are exempt from certain provisions of

state law; providing for contingent effect; amending s.

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

and sale of variable and indeterminate value contracts by

the department, the Office of Insurance Regulation, and

the Office of Financial Regulation; authorizing the

department and the commission to adopt rules; providing an

effective date for such rulemaking authority; providing

for applicability of such rules; providing effective

dates.

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

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

Seibel Act."

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

626.171, Florida Statutes, is amended to read:

626.171 Application for license as an agent, customer

representative, adjuster, service representative, managing

general agent, or reinsurance intermediary.--

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

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

residence address, business address, and mailing address, contact

telephone numbers, including a business telephone number, and e-

mail address.

However, the application must contain a statement that an

applicant is not required to disclose his or her race or

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

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

information exclusively for research and statistical purposes and

to improve the quality and fairness of the examinations.

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

section 626.2815, Florida Statutes, to read:

626.2815 Continuing education required; application;

exceptions; requirements; penalties.--

(3)

(k) Any person who holds a license to solicit or sell life

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

continuing education, approved by the department, on the subject

of suitability in annuity and life insurance transactions. A

licensee may use the hours obtained under this paragraph to

satisfy the requirement for continuing education in ethics under

paragraph (a).

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

read:

100

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

101

shall notify the department in writing within 60 days after a

102

change of name, residence address, principal business street

103

address, or mailing address, contact telephone numbers, including

104

a business telephone number, or e-mail address. A Any licensed

105

agent who has moved his or her residence from this state shall

106

have his or her license and all appointments immediately

107

terminated by the department. Failure to notify the department

108

within the required time period shall result in a fine not to

109

exceed $250 for the first offense and, for subsequent offenses, a

110

fine of at least not less than $500 or suspension or revocation

111

of the license pursuant to s. 626.611 or s. 626.621.

112

Section 5. Section 626.9521, Florida Statutes, is amended

113

to read:

114

626.9521 Unfair methods of competition and unfair or

115

deceptive acts or practices prohibited; penalties.--

116

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

117

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

118

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

119

competition or an unfair or deceptive act or practice involving

120

the business of insurance.

121

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

122

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

123

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

124

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

125

violation. Fines under this subsection may not exceed an

126

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

127

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

128

willful violations arising out of the same action. The fines

129

authorized by this subsection may be imposed in addition to any

130

other applicable penalty.

131

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

132

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

133

known as "churning," the person commits a misdemeanor of the

134

first degree, punishable as provided in s. 775.082, and an

135

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

136

each nonwillful violation or an administrative fine not greater

137

than $30,000 shall be imposed for each willful violation. To

138

impose criminal penalties under this paragraph, the practice of

139

"churning" or "twisting" must involve fraudulent conduct.

140

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

141

submitting fraudulent signatures on an application or policy-

142

related document, the person commits a felony of the third

143

degree, punishable as provided in s. 775.082, and an

144

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

145

each nonwillful violation or an administrative fine not greater

146

than $30,000 shall be imposed for each willful violation.

147

148

exceed an aggregate amount of $50,000 for all nonwillful

149

violations arising out of the same action or an aggregate amount

150

of $250,000 for all willful violations arising out of the same

151

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 investments by seniors.--

259

(1) PURPOSE; CONSTRUCTION.--

260

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

261

and procedures for making recommendations to senior consumers

262

which result in a transaction involving annuity products to

263

appropriately address the insurance needs and financial

264

objectives of senior consumers at the time of the transaction.

265

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

266

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

267

violation of this section.

268

269

criminal or civil liability for the acts of independent

270

individuals not affiliated with that insurer for selling its

271

products, when such sales are made in a way not authorized by the

272

insurer.

273

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

274

recommendation to purchase or exchange an annuity made to a

275

senior consumer by an insurance agent, or an insurer where no

276

agent is involved, and which, that results in the purchase or

277

exchange recommended.

278

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

279

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

280

indexed annuity, fixed equity indexed annuity, or variable

281

annuity that is individually solicited, whether the product is

282

classified as an individual annuity or a group annuity.

283

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

284

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

285

individual senior consumer which results in a purchase or

286

exchange of an annuity in accordance with that advice.

287

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 that or the exchange of an annuity that

294

results in another insurance transaction or series of insurance

295

transactions, an insurance agent, or an insurer if no insurance

296

agent is involved, must shall have an objectively reasonable

297

basis grounds for believing that the recommendation is suitable

298

for the senior consumer based on the basis of the facts disclosed

299

by the senior consumer as to his or her investments and other

300

insurance products and as to his or her financial situation and

301

needs.

302

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

303

resulting from a recommendation to a senior consumer, an

304

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

305

shall make reasonable efforts to obtain information concerning

306

the suitability of senior consumer's financial status, tax

307

status, and investment objectives and such other information used

308

or considered to be reasonable by the insurance agent, or the

309

insurer if no agent is involved, in making the recommendation.

310

The information shall include, at a minimum:

311

1. Personal information, including the age and sex of the

312

parties to the annuity and the ages and number of any dependents;

313

2. Tax status of the consumer;

314

3. Investment objectives of the consumer;

315

4. The source of the funds to be used to purchase the

316

annuity;

317

5. The applicant's annual income;

318

6. Intended use of the annuity;

319

7. The applicant's existing assets, including investment

320

holdings;

321

8. The applicant's liquid net worth and liquidity needs;

322

9. The applicant's financial situation and needs;

323

10. The applicant's risk tolerance; and

324

11. Such other information used or considered to be

325

relevant by the insurance agent or insurer in making

326

recommendations to the consumer regarding the purchase or

327

exchange of an annuity contract.

328

329

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

330

the department and completed and signed by the applicant and

331

agent. Questions requesting this information must be presented in

332

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

333

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

334

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

335

agent to the insurer, or the third party that has contracted with

336

such insurer pursuant to subparagraph (f)3., within 10 days after

337

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

338

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

339

340

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

341

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

342

paragraph (a) related to any recommendation if the senior

343

consumer:

344

a. Refuses to provide relevant information requested by the

345

insurer or insurance agent;

346

b. Decides to enter into an insurance transaction that is

347

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

348

349

c. Fails to provide complete or accurate information.

350

2. An insurer or insurance agent's recommendation subject

351

to subparagraph 1. shall be objectively reasonable under all the

352

circumstances actually known to the insurer or insurance agent at

353

the time of the recommendation.

354

3. If the consumer refuses to provide relevant information

355

requested by the insurance agent or insurer, before the execution

356

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

357

verification from the senior consumer on a form adopted by rule

358

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

359

information and may be limiting protections afforded by this

360

section regarding the suitability of the sale.

361

(d) In addition to the information required by paragraph

362

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

363

annuity contract resulting from a recommendation, the insurance

364

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

365

department, information concerning differences between each

366

existing annuity contract and the annuity contract being

367

recommended in order to determine the suitability of the

368

recommendation and its benefit to the consumer. A true and

369

correct executed copy of this form shall be provided by the agent

370

to the insurer, or the third party that has contracted with such

371

insurer pursuant to subparagraph (f)3., 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 annuity contracts.

377

2. A comparison of any fees and charges between the annuity

378

contracts.

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.

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 contract.

386

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

387

annuity contract resulting from a recommendation, an agent shall

388

also disclose to the consumer that such purchase or exchange may

389

have tax consequences and that the applicant should contact his

390

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

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 maintain or be able to make available

480

from the entity or entities responsible for maintaining the

481

records pursuant to paragraph (4)(f), to the department or

482

office, as appropriate, records of the information collected from

483

the senior consumer and other information used in making the

484

recommendations that were the basis for insurance transactions

485

for 5 years after the insurance transaction is completed by the

486

insurer. An insurer is permitted, but shall not be required, to

487

maintain documentation on behalf of an insurance agent.

488

(b) Records required to be maintained by this subsection

489

regulation may be maintained in paper, photographic,

490

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

491

any process that accurately reproduces the actual document.

492

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

493

this section does not apply to recommendations involving:

494

(a) Direct-response solicitations where there is no

495

recommendation based on information collected from the senior

496

consumer pursuant to this section.

497

(b) Contracts used to fund:

498

1. An employee pension or welfare benefit plan that is

499

covered by the Employee Retirement and Income Security Act;

500

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

501

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

502

amended, if established or maintained by an employer;

503

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

504

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

505

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

506

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

507

the Internal Revenue Code of 1986, as amended;

508

4. A nonqualified deferred compensation arrangement

509

established or maintained by an employer or plan sponsor;

510

5. Settlements of or assumptions of liabilities associated

511

with personal injury litigation or any dispute or claim

512

resolution process; or

513

6. Prepaid funeral contracts.

514

(8) APPLICATION TO VARIABLE ANNUITIES.--Any person who is

515

registered with a member of the Financial Industry Regulatory

516

Authority, who is required to make a suitability determination,

517

and who makes and documents such determination is deemed to

518

Compliance with the National Association of Securities Dealers

519

Conduct Rules in effect on January 1, 2004, shall satisfy the

520

requirements under this section for the recommendation of

521

variable annuities. This section does not limit the department's

522

ability to enforce the provisions of this section with respect to

523

insurance agents, insurance agencies, and managing general

524

agents, or the office's ability to enforce the provisions of this

525

section with respect to insurers.

526

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

527

to administer this section.

528

Section 10. Effective only if Senate Bill 648, adopted

529

during the 2008 Regular Session of the Legislature, becomes a

530

law, paragraph (d) is added to subsection (2) of section 627.551,

531

Florida Statutes, to read:

532

627.551 Group contracts and plans of self-insurance must

533

meet group requirements.--

534

(2) Subsection (1) does not apply to life insurance

535

policies or plans of self-insurance:

536

(a) Insuring or providing benefits only to individuals

537

related by blood, marriage, or legal adoption.

538

(b) Insuring or providing benefits only to individuals who

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have a common interest through ownership of a business

540

enterprise, or a substantial legal interest or equity therein,

541

and who are actively engaged in the management of the business

542

enterprise.

543

544

otherwise having an insurable interest in each other's lives.

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(d) Insuring or providing benefits pursuant to s.

546

627.404(2)(b)8. or 9.

547

Section 11. Section 627.805, Florida Statutes, is amended

548

to read:

549

627.805 Regulation of variable and indeterminate value

550

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

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Office of Insurance Regulation office, notwithstanding any other

552

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.

561

Section 12. Effective upon this act becoming a law, the

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Department of Financial Services may adopt rules to implement

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this act. Section 9 of this act and such implementing rules shall

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take effect 60 days after the date on which the final rule is

565

adopted or January 1, 2009, whichever is later.

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Section 13. Except as otherwise expressly provided in this

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act and except for this section, which shall take effect upon

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becoming a law, this act shall take effect January 1, 2009.

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