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A bill to be entitled

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An act relating to insurance; requiring a specified amount

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of contributions paid to the Florida Retirement System to

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be distributed to the Florida Hurricane Catastrophe Fund

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for certain purposes; providing criteria for the

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reimbursement of such distributions; amending s. 626.221,

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F.S.; expanding the list of applicants eligible for

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exemption from certain examination requirements; amending

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s. 626.2815, F.S.; revising certain continuing education

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applicability requirements; prohibiting certain entities

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from imposing certain continuing education requirements;

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providing exceptions and limitations; providing an

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exception to certain examination monitoring requirements;

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providing exception requirements; revising duties of a

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continuing education advisory board; amending s. 626.311,

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F.S.; authorizing agents qualifying as unaffiliated

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insurance consultants to transact insurance business

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within the scope of the agent's license; providing a

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definition; providing requirements for qualifying or

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continuing to qualify as an unaffiliated insurance

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consultant; specifying prohibited activities for

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unaffiliated insurance consultants; amending s. 626.381,

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F.S.; authorizing appointing entities to impose certain

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training program requirements; providing a limitation;

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limiting appointment authority of appointing entities to

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persons meeting continuing education requirements;

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prohibiting appointments contingent upon certain

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continuing education course attendance; providing an

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effective date.

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

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     Section 1. Effective June 1, 2008, an amount equal to the

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lesser of 5 percent of the annual accumulated employee

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contributions paid to the Florida Retirement System or 10 percent

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of the Florida Hurricane Catastrophe Fund exposure shall be

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deducted from the annual accumulated employee contributions of

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the Florida Retirement System and distributed to the Florida

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Hurricane Catastrophe Fund. Underwriting profits from the Florida

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Hurricane Catastrophe Fund shall be used to make annual interest

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payments to the Florida Retirement System at the 1-year London

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Interbank Offered Rate. In a year in which the Florida Hurricane

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Catastrophe Fund experiences a loss, interest shall accrue on the

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Florida Retirement System investment, and the Florida Hurricane

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Catastrophe Fund shall pay back this interest to the Florida

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Retirement System in the next year that the Florida Hurricane

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Catastrophe Fund experiences a profit.

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

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626.221, Florida Statutes, is amended to read:

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     626.221  Examination requirement; exemptions.--

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     (2)  However, no such examination shall be necessary in any

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of the following cases:

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     (j)  An applicant for license as a customer representative

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who has earned the designation of Accredited Advisor in Insurance

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(AAI) from the Insurance Institute of America, the designation of

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Certified Insurance Counselor (CIC) from the Society of Certified

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Insurance Service Counselors, the designation of Accredited

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Customer Service Representative (ACSR) from the Independent

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Insurance Agents of America, the designation of Certified

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Professional Service Representative (CPSR) from the National

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Foundation for Certified Professional Service Representatives,

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the designation of Certified Insurance Service Representative

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(CISR) from the Society of Certified Insurance Service

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Representatives. Also, an applicant for license as a customer

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representative who has earned an Associate of Arts degree,

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Associate of Science degree, or Associate of Applied Science

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degree in insurance from an accredited college or university with

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at least 9 academic hours of property and casualty insurance

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curriculum, or has earned the designation of Certified Customer

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Service Representative (CCSR) from the Florida Association of

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Insurance Agents, or the designation of Registered Customer

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Service Representative (RCSR) from a regionally accredited

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postsecondary institution in this state, or the designation of

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Professional Customer Service Representative (PCSR) from the

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Professional Career Institute, whose curriculum has been approved

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by the department and whose curriculum includes comprehensive

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analysis of basic property and casualty lines of insurance and

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testing at least equal to that of standard department testing for

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the customer representative license. The department shall adopt

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rules establishing standards for the approval of curriculum.

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     Section 3.  Subsection (2), paragraph (f) of subsection (3),

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paragraph (j) of subsection (4), and paragraph (a) of subsection

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(6) of section 626.2815, Florida Statutes, are amended to read:

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     626.2815  Continuing education required; application;

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exceptions; requirements; penalties.--

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     (2) Except as otherwise provided in this section, the

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provisions of this section apply to persons licensed to engage in

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the sale of insurance in this state for all lines of insurance

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for which an examination is required for licensing and to any

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insurer, employer, or appointing entity, including those created

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or existing pursuant to s. 627.351. The provisions of this

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section shall not apply to any person holding a license for the

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sale of any line of insurance for which an examination is not

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required by the laws of this state, nor shall the provisions of

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this section apply to any limited license as the department may

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exempt by rule.

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     (3)

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     (f)  Compliance with continuing education requirements is a

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condition precedent to the issuance, continuation, reinstatement,

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or renewal of any appointment subject to this section.

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     1. An appointing entity, except those that appoint

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individuals who are employees or exclusive independent

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contractors of the appointing entity, may not require, directly

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or indirectly, as a condition of such appointment or the

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continuation of such appointment, the taking of an approved

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course or program by any appointee or potential appointee that is

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not of the appointee's choosing.

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     2. Any entity created or existing pursuant to s. 627.351

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may require employees to take training of any type relevant to

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their employment but may not require appointees who are not also

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employees to take any approved course or program unless the

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course or program deals solely with the appointing entity's

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internal procedures or products or subjects substantially unique

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to the appointing entity.

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     (4)  The following courses may be completed in order to meet

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the continuing education course requirements:

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     (j)  Any course, including courses relating to agency

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management or errors and omissions, developed or sponsored by any

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authorized insurer or recognized agents' association or insurance

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trade association or any independent study program of

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instruction, subject to approval by the department, qualifies for

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the equivalency of the number of classroom hours assigned thereto

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by the department. However, unless otherwise provided in this

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section, continuing education hours may not be credited toward

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meeting the requirements of this section unless the course is

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provided by classroom instruction or results in a monitored

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examination. A monitored examination is not required for:

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     1. An independent study program of instruction that is

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presented through interactive, online technology that the

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department determines has sufficient internal testing to validate

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the student's full comprehension of the materials presented; or

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     2. An independent study program of instruction presented by

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correspondence for insurance agents and adjusters that imposes a

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final closed book examination that meets the requirements of the

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department's rule for self-study courses. The examination may be

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taken without a proctor provided the student presents to the

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department a sworn affidavit certifying that the student did not

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consult any written materials or receive outside assistance of

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any kind or from any person, directly or indirectly, while taking

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the examination. If the student is an employee of an agency or

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corporate entity, the student's supervisor or a manager or owner

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of the agency or corporate entity must also sign the sworn

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affidavit. If the student is self-employed, a sole proprietor, or

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a partner, or if the examination is administered online, the

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sworn affidavit must also be signed by a disinterested third

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party. The sworn affidavit must be received by the approved

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provider prior to reporting continuing education credits to the

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department.

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     (6)(a)  There is created an 11-member continuing education

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advisory board to be appointed by the Chief Financial Officer.

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Appointments shall be for terms of 4 years. The purpose of the

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board is to advise the department in determining standards by

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which courses may be evaluated and categorized as basic,

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intermediate, or advanced, and to advise on issues related to

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appointments based upon appointees meeting continuing education

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requirements. The board shall submit recommendations to the

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department of changes needed in such criteria not less frequently

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than every 2 years. The department shall require all approved

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course providers to submit courses for approval to the department

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using the criteria. All materials, brochures, and advertisements

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related to the approved courses must specify the level assigned

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to the course.

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     Section 4.  Subsection (7) is added to section 626.311,

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Florida Statutes, to read:

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     626.311  Scope of license.--

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     (7) Subject to the limitations of paragraph (c) and

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notwithstanding any other provisions of this chapter, an agent

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who qualifies as an unaffiliated insurance consultant pursuant to

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paragraphs (a) and (b) shall be authorized to transact insurance

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within the scope of his or her agent's license.

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     (a) For purposes of this subsection, the term "unaffiliated

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insurance consultant" means a person who is not affiliated with

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any insurer and chooses to practice as an independent insurance

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consultant providing objective advice to the buyers of insurance

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and who:

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     1. Is licensed as an agent with respect to the type of

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insurance for which he or she transacts the business of

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insurance.

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     2. Is not appointed by an insurer or other authorized

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appointing authority.

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     3. Does not sell or service insurance on behalf of any

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insurer, or sell or service insurance on behalf of any insurance

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agent or insurance agency, in connection with the sale or service

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on behalf of an insurer or by the insurance agent or insurance

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agency.

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     4. Does not receive any commission or any other form of

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direct or indirect compensation from any insurer for the sale or

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servicing of insurance on behalf of such insurer, or receive any

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commission or any other form of direct or indirect compensation

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from any insurance agent or insurance agency, in connection with

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the sale or servicing of insurance on behalf of an insurer or by

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the insurance agent or insurance agency.

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     5. Has provided the department with evidence that he or

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she:

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     a. Has been licensed as an agent for a minimum of 2 years

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with respect to the type of insurance for which he or she will

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transact;

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     b. With respect to a general lines agent, holds a Chartered

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Property Casualty Underwriter (CPCU), Associate in Risk

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Management (ARM), Accredited Advisor in Insurance (AAI), or

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Certified Insurance Counselor (CIC) designation;

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     c. With respect to a life or health agent, holds a

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Chartered Life Underwriter (CLU) or Certified Employee Benefit

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Specialist (CEBS) designation;

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     d. Has earned a bachelor's or graduate degree in risk

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management or insurance from an accredited college or university;

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     e. Has taught a course in risk management or insurance as a

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professor at an accredited college or university;

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     f. Is a member of The Florida Bar; or

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     g. Meets any other requirements the department may deem

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proper to enable the department to determine the character,

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experience, ability, and other qualifications of the person to

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hold himself or herself out to the public as an unaffiliated

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insurance consultant.

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     (b)1. A person may not initially qualify as an unaffiliated

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insurance consultant:

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     a. Except upon written request for such qualification made

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in a form acceptable to the department under the oath of, and

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signed by, him or her, submitted to and filed with the department

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certifying that he or she meets the definition of an unaffiliated

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insurance consultant pursuant to paragraph (a).

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     b. Except upon payment in advance by such person of all

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applicable fees. For the purposes of this provision, the

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applicable fee shall be twice the amount of the fee that would

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apply to an insurer for an agent's original appointment. If the

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applicant has more than one agent's license, a separate fee shall

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be paid for each license for which the person seeks to qualify as

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an unaffiliated insurance consultant.

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     2. As a condition to continued qualification as an

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unaffiliated insurance consultant, the person shall:

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     a. On a biennial basis submit a request for the

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continuation of such qualification in a form acceptable to the

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department under the oath of, and signed by, him or her,

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submitted to and filed with the department certifying that he or

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she meets the definition of an unaffiliated insurance consultant

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under paragraph (a).

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     b. Shall pay all applicable fees. For the purposes of this

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provision, the applicable fee shall be twice the amount of the

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fee that would apply to an insurer for the continuation of an

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agent's original appointment. If the unaffiliated insurance

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consultant has more than one license, a separate fee shall be

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paid for each license for which the person seeks to continue to

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qualify as an unaffiliated insurance consultant.

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     (c) An unaffiliated insurance consultant may not:

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     1. Hold himself or herself out as acting as the agent for

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an insurer;

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     2. Act as a countersigning agent for an insurer; or

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     3. Hold himself or herself out as replacing the need for an

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appointed agent in the placement or sale of insurance.

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     Section 5.  Subsections (6) and (7) of section 626.381,

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Florida Statutes, are renumbered as subsections (8) and (9),

252

respectively, and new subsections (6) and (7) are added to that

253

section to read:

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     626.381  Renewal, continuation, reinstatement, or

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termination of appointment.--

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     (6) An appointing entity may require any appointee to

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attend training programs exclusively on the internal procedures

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of the appointing entity or exclusively on products substantially

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unique to the appointing entity, in order for the appointee to

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receive a new appointment or maintain an existing appointment.

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However, an appointing entity may not require, directly or

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indirectly, any appointee to attend any training programs that

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are wholly or partially approved for general continuing education

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credit as described in s. 626.2815.

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     (7) Each appointing entity may appoint only those persons

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who have met the continuing education requirements of the license

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necessary for such appointment as described in s. 626.2815.

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However, an appointing entity may not make or allow, directly or

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indirectly, any appointment of any appointee or potential

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appointee to be contingent, in whole or in part, on any

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appointee's attendance at any course that is approved, in whole

272

or in part, for continuing education credit pursuant to s.

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626.2815.

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     Section 6.  This act shall take effect June 1, 2008.