HB 563

1
A bill to be entitled
2An act relating to property insurance appraisal umpires;
3amending s. 624.501, F.S.; providing filing fees regarding
4the application for and issuance of a license, as well as
5the biennial renewal or continuation thereof, by a
6property insurance appraisal umpire; amending s. 626.015,
7F.S.; defining the terms "property insurance loss
8appraiser" and "property insurance appraisal umpire" for
9purposes of the Licensing Procedures Law; amending s.
10626.016, F.S.; providing that property insurance appraisal
11umpires are subject to the powers of the Department of
12Financial Services, the Financial Services Commission, and
13the Office of Insurance Regulation; amending s. 626.022,
14F.S.; expanding the scope of part I of ch. 626, F.S., to
15include property insurance appraisal umpires; amending s.
16626.112, F.S.; requiring that property insurance appraisal
17umpires operating in this state be licensed by the
18department; creating part XII of ch. 626, F.S.; creating
19s. 626.9931, F.S.; providing a legislative finding and
20purpose; creating s. 626.9932, F.S.; providing the scope
21and parameters for application; creating s. 626.9933,
22F.S.; providing definitions; creating s. 626.9934, F.S.;
23providing procedures for the application for licensure as
24a property insurance appraisal umpire; requiring that all
25applicants be fingerprinted by a law enforcement agency or
26other entity approved by the department at the time of
27application; requiring the department to develop and
28maintain an updated list of licensed umpires; creating s.
29626.9935, F.S.; authorizing the department to adopt rules;
30creating s. 626.9936, F.S.; providing qualifications for
31licensure as a property insurance appraisal umpire;
32creating s. 626.9937, F.S.; providing requirements for
33licensure as a property insurance appraisal umpire;
34creating s. 626.9938, F.S.; providing for the regulation
35of umpire course providers, instructors, and courses;
36requiring the department to adopt rules establishing
37standards for providers, instructors, and courses;
38requiring the department to adopt rules establishing a
39process for determining compliance with certain
40prelicensure requirements and adopting forms to be used
41for the administration of such requirements; creating s.
42626.9939, F.S.; providing grounds for the compulsory
43refusal, suspension, or revocation of an umpire's license;
44creating s. 626.9940, F.S.; providing grounds for the
45discretionary refusal, suspension, or revocation of an
46umpire's license; creating s. 626.9941, F.S.; providing
47ethical standards for property insurance loss appraisal
48umpires; creating s. 626.9942, F.S.; requiring that a
49licensed property insurance appraisal umpire retain
50certain records for a specified period; requiring that
51umpires make such records available for inspection and
52copying by the department; requiring that appraisals that
53are the subject of litigation or have been admitted as
54evidence in a lawsuit be retained for a specified period;
55creating s. 627.4141, F.S.; providing procedures that must
56be followed if a residential or commercial property
57insurance contract provides that either party may submit a
58written demand to enter into the process of appraisal when
59the insured and the insurer fail to mutually agree to the
60actual cash value, the amount of loss, or the cost of
61repair or replacement of property for which a claim has
62been filed; providing an exception upon which an insurer
63may refuse to accept such demand; authorizing each party
64to select a competent and independent appraiser and to
65notify the opposing party within a specified period;
66requiring the appraisers to select an umpire from the
67department's list of licensed umpires; authorizing either
68party to file a petition, in a county or circuit court in
69the jurisdiction in which the covered property is located,
70to designate an umpire if the appraisers cannot agree on
71the selection of an umpire; providing that appraisal
72proceedings are informal unless the insurer and the
73insured agree otherwise; defining and providing the scope
74of the term "informal" for purposes of appraisal
75proceedings; requiring each appraiser to submit a written
76report to the other appraisers; requiring that any
77differences in findings among the appraisers which cannot
78be resolved by the appraisers themselves be submitted to
79the umpire for review; requiring the umpire to submit his
80or her conclusions regarding any unresolved differences in
81the findings of the appraisers within a specified period;
82providing that if either appraiser agrees with the
83conclusions of the umpire, an itemized written appraisal
84award signed by the umpire and appraiser shall be filed
85with the insurer and shall determine the amount of the
86loss; providing that the appraisal award is binding upon
87the insurer and the insured; providing for compensation of
88the appraisers and the umpire; providing that the Florida
89Arbitration Code does not apply to residential or
90commercial property insurance loss appraisal proceedings;
91prohibiting the appraisal process from addressing issues
92involving coverage or lack thereof under an insurance
93contract; authorizing the umpire and appraisers to
94consider causation issues when necessary to determine the
95amount of loss; providing an effective date.
96
97Be It Enacted by the Legislature of the State of Florida:
98
99     Section 1.  Subsection (5) of section 624.501, Florida
100Statutes, is amended, and subsection (29) is added to that
101section, to read:
102     624.501  Filing, license, appointment, and miscellaneous
103fees.--The department, commission, or office, as appropriate,
104shall collect in advance, and persons so served shall pay to it
105in advance, fees, licenses, and miscellaneous charges as
106follows:
107     (5)  All insurance representatives and property insurance
108appraisal umpires, application for license, each filing, filing
109fee....$50.00
110     (29)  All property insurance appraisal umpires, fees for
111issuance of original license and for biennial renewal or
112continuation thereof....$50.00
113     Section 2.  Present subsections (16), (17), and (18) of
114section 626.015, Florida Statutes, are redesignated as
115subsections (18), (19), and (20), respectively, and new
116subsections (16) and (17) are added to that section to read:
117     626.015  Definitions.--As used in this part:
118     (16)  "Property insurance loss appraiser" has the same
119meaning as in s. 626.9933.
120     (17)  "Property insurance appraisal umpire" has the same
121meaning as in s. 626.9933.
122     Section 3.  Subsection (1) of section 626.016, Florida
123Statutes, is amended to read:
124     626.016  Powers and duties of department, commission, and
125office.--
126     (1)  The powers and duties of the Chief Financial Officer
127and the department specified in this part apply only with
128respect to insurance agents, insurance agencies, managing
129general agents, insurance adjusters, reinsurance intermediaries,
130viatical settlement brokers, customer representatives, service
131representatives, and property insurance appraisal umpires
132agencies.
133     Section 4.  Subsection (1) of section 626.022, Florida
134Statutes, is amended to read:
135     626.022  Scope of part.--
136     (1)  This part applies as to insurance agents, service
137representatives, adjusters, property insurance appraisal
138umpires, and insurance agencies; as to any and all kinds of
139insurance; and as to stock insurers, mutual insurers, reciprocal
140insurers, and all other types of insurers, except that:
141     (a)  It does not apply as to reinsurance, except that ss.
142626.011-626.022, ss. 626.112-626.181, ss. 626.191-626.211, ss.
143626.291-626.301, s. 626.331, ss. 626.342-626.521, ss. 626.541-
144626.591, and ss. 626.601-626.711 shall apply as to reinsurance
145intermediaries as defined in s. 626.7492.
146     (b)  The applicability of this chapter as to fraternal
147benefit societies shall be as provided in chapter 632.
148     (c)  It does not apply to a bail bond agent, as defined in
149s. 648.25, except as provided in chapter 648 or chapter 903.
150     (d)  This part does not apply to a certified public
151accountant licensed under chapter 473 who is acting within the
152scope of the practice of public accounting, as defined in s.
153473.302, provided that the activities of the certified public
154accountant are limited to advising a client of the necessity of
155obtaining insurance, the amount of insurance needed, or the line
156of coverage needed, and provided that the certified public
157accountant does not directly or indirectly receive or share in
158any commission or referral fee.
159     Section 5.  Section 626.112, Florida Statutes, is amended
160to read:
161     626.112  License and appointment required; agents, customer
162representatives, adjusters, insurance agencies, service
163representatives, managing general agents, and property insurance
164appraisal umpires.--
165     (1)(a)  No person may be, act as, or advertise or hold
166himself or herself out to be an insurance agent, insurance
167adjuster, or customer representative unless he or she is
168currently licensed by the department and appointed by an
169appropriate appointing entity or person.
170     (b)  Except as provided in subsection (6) or in applicable
171department rules, and in addition to other conduct described in
172this chapter with respect to particular types of agents, a
173license as an insurance agent, service representative, customer
174representative, or limited customer representative is required
175in order to engage in the solicitation of insurance. For
176purposes of this requirement, as applicable to any of the
177license types described in this section, the solicitation of
178insurance is the attempt to persuade any person to purchase an
179insurance product by:
180     1.  Describing the benefits or terms of insurance coverage,
181including premiums or rates of return;
182     2.  Distributing an invitation to contract to prospective
183purchasers;
184     3.  Making general or specific recommendations as to
185insurance products;
186     4.  Completing orders or applications for insurance
187products;
188     5.  Comparing insurance products, advising as to insurance
189matters, or interpreting policies or coverages; or
190     6.  Offering or attempting to negotiate on behalf of
191another person a viatical settlement contract as defined in s.
192626.9911.
193
194However, an employee leasing company licensed pursuant to
195chapter 468 which is seeking to enter into a contract with an
196employer that identifies products and services offered to
197employees may deliver proposals for the purchase of employee
198leasing services to prospective clients of the employee leasing
199company setting forth the terms and conditions of doing
200business; classify employees as permitted by s. 468.529; collect
201information from prospective clients and other sources as
202necessary to perform due diligence on the prospective client and
203to prepare a proposal for services; provide and receive
204enrollment forms, plans, and other documents; and discuss or
205explain in general terms the conditions, limitations, options,
206or exclusions of insurance benefit plans available to the client
207or employees of the employee leasing company were the client to
208contract with the employee leasing company. Any advertising
209materials or other documents describing specific insurance
210coverages must identify and be from a licensed insurer or its
211licensed agent or a licensed and appointed agent employed by the
212employee leasing company. The employee leasing company may not
213advise or inform the prospective business client or individual
214employees of specific coverage provisions, exclusions, or
215limitations of particular plans. As to clients for which the
216employee leasing company is providing services pursuant to s.
217468.525(4), the employee leasing company may engage in
218activities permitted by ss. 626.7315, 626.7845, and 626.8305,
219subject to the restrictions specified in those sections. If a
220prospective client requests more specific information concerning
221the insurance provided by the employee leasing company, the
222employee leasing company must refer the prospective business
223client to the insurer or its licensed agent or to a licensed and
224appointed agent employed by the employee leasing company.
225     (2)  No agent or customer representative shall solicit or
226otherwise transact as agent or customer representative, or
227represent or hold himself or herself out to be an agent or
228customer representative as to, any kind or kinds of insurance as
229to which he or she is not then licensed and appointed.
230     (3)  No person shall act as an adjuster as to any class of
231business for which he or she is not then licensed and appointed.
232     (4)  No person shall be, act as, or represent or hold
233himself or herself out to be a service representative unless he
234or she then holds a currently effective service representative
235license and appointment. This subsection does not apply as to
236similar representatives or employees of casualty insurers whose
237duties are restricted to health insurance.
238     (5)  No person shall be, act as, or represent or hold
239himself or herself out to be a managing general agent unless he
240or she then holds a currently effective managing general agent
241license and appointment.
242     (6)  An individual employed by a life or health insurer as
243an officer or other salaried representative may solicit and
244effect contracts of life insurance or annuities or of health
245insurance, without being licensed as an agent, when and only
246when he or she is accompanied by and solicits for and on the
247behalf of a licensed and appointed agent.
248     (7)(a)  Effective October 1, 2006, no individual, firm,
249partnership, corporation, association, or any other entity shall
250act in its own name or under a trade name, directly or
251indirectly, as an insurance agency, unless it complies with s.
252626.172 with respect to possessing an insurance agency license
253for each place of business at which it engages in any activity
254which may be performed only by a licensed insurance agent. Each
255agency engaged in business in this state before January 1, 2003,
256which is wholly owned by insurance agents currently licensed and
257appointed under this chapter, each incorporated agency whose
258voting shares are traded on a securities exchange, each agency
259designated and subject to supervision and inspection as a branch
260office under the rules of the National Association of Securities
261Dealers, and each agency whose primary function is offering
262insurance as a service or member benefit to members of a
263nonprofit corporation may file an application for registration
264in lieu of licensure in accordance with s. 626.172(3). Each
265agency engaged in business before October 1, 2006, shall file an
266application for licensure or registration on or before October
2671, 2006.
268     1.  If an agency is required to be licensed but fails to
269file an application for licensure in accordance with this
270section, the department shall impose on the agency an
271administrative penalty in an amount of up to $10,000.
272     2.  If an agency is eligible for registration but fails to
273file an application for registration or an application for
274licensure in accordance with this section, the department shall
275impose on the agency an administrative penalty in an amount of
276up to $5,000.
277     (b)  A registered insurance agency shall, as a condition
278precedent to continuing business, obtain an insurance agency
279license if the department finds that, with respect to any
280majority owner, partner, manager, director, officer, or other
281person who manages or controls the agency, any person has:
282     1.  Been found guilty of, or has pleaded guilty or nolo
283contendere to, a felony in this state or any other state
284relating to the business of insurance or to an insurance agency,
285without regard to whether a judgment of conviction has been
286entered by the court having jurisdiction of the cases.
287     2.  Employed any individual in a managerial capacity or in
288a capacity dealing with the public who is under an order of
289revocation or suspension issued by the department. An insurance
290agency may request, on forms prescribed by the department,
291verification of any person's license status. If a request is
292mailed within 5 working days after an employee is hired, and the
293employee's license is currently suspended or revoked, the agency
294shall not be required to obtain a license, if the unlicensed
295person's employment is immediately terminated.
296     3.  Operated the agency or permitted the agency to be
297operated in violation of s. 626.747.
298     4.  With such frequency as to have made the operation of
299the agency hazardous to the insurance-buying public or other
300persons:
301     a.  Solicited or handled controlled business. This
302subparagraph shall not prohibit the licensing of any lending or
303financing institution or creditor, with respect to insurance
304only, under credit life or disability insurance policies of
305borrowers from the institutions, which policies are subject to
306part IX of chapter 627.
307     b.  Misappropriated, converted, or unlawfully withheld
308moneys belonging to insurers, insureds, beneficiaries, or others
309and received in the conduct of business under the license.
310     c.  Unlawfully rebated, attempted to unlawfully rebate, or
311unlawfully divided or offered to divide commissions with
312another.
313     d.  Misrepresented any insurance policy or annuity
314contract, or used deception with regard to any policy or
315contract, done either in person or by any form of dissemination
316of information or advertising.
317     e.  Violated any provision of this code or any other law
318applicable to the business of insurance in the course of dealing
319under the license.
320     f.  Violated any lawful order or rule of the department.
321     g.  Failed or refused, upon demand, to pay over to any
322insurer he or she represents or has represented any money coming
323into his or her hands belonging to the insurer.
324     h.  Violated the provision against twisting as defined in
325s. 626.9541(1)(l).
326     i.  In the conduct of business, engaged in unfair methods
327of competition or in unfair or deceptive acts or practices, as
328prohibited under part IX of this chapter.
329     j.  Willfully overinsured any property insurance risk.
330     k.  Engaged in fraudulent or dishonest practices in the
331conduct of business arising out of activities related to
332insurance or the insurance agency.
333     l.  Demonstrated lack of fitness or trustworthiness to
334engage in the business of insurance arising out of activities
335related to insurance or the insurance agency.
336     m.  Authorized or knowingly allowed individuals to transact
337insurance who were not then licensed as required by this code.
338     5.  Knowingly employed any person who within the preceding
3393 years has had his or her relationship with an agency
340terminated in accordance with paragraph (d).
341     6.  Willfully circumvented the requirements or prohibitions
342of this code.
343     (8)  No insurance agent, insurance agency, or other person
344licensed under the Insurance Code may pay any fee or other
345consideration to an unlicensed person other than an insurance
346agency for the referral of prospective purchasers to an
347insurance agent which is in any way dependent upon whether the
348referral results in the purchase of an insurance product.
349     (9)  Any person who knowingly transacts insurance or
350otherwise engages in insurance activities in this state without
351a license in violation of this section commits a felony of the
352third degree, punishable as provided in s. 775.082, s. 775.083,
353or s. 775.084.
354     (10)  Effective July 1, 2009, a person may not act as,
355represent himself or herself as, or hold himself or herself out
356to be a property insurance appraisal umpire unless he or she
357holds a current property insurance appraisal umpire license
358issued by the department.
359     Section 6.  Part XII of chapter 626, Florida Statutes,
360consisting of sections 626.9931, 626.9932, 626.9933, 626.9934,
361626.9935, 626.9936, 626.9937, 626.9938, 626.9939, 626.9940,
362626.9941, and 626.9942, is created to read:
363     626.9931  Purpose.--The Legislature finds that it is in the
364interest of the public welfare to regulate property insurance
365appraisal umpires in this state.
366     626.9932  Scope of part.--The provisions of this part apply
367to residential and commercial residential property insurance
368contracts that contain an appraisal clause and to the umpires
369and appraisers who participate in the appraisal process as a
370result of an appraisal clause.
371     626.9933  Definitions.--As used in this part, the term:
372     (1)  "Appraisal" means the process of estimating or
373evaluating actual cash value, the amount of loss, or the cost of
374repair or replacement of property for the purpose of quantifying
375the monetary value of a property loss claim when an insurer and
376an insured have failed to mutually agree on the value of the
377loss pursuant to a residential or commercial residential
378property insurance contract that permits the resolution of a
379claim dispute by appraisal.
380     (2)  "Property insurance appraisal umpire" and "umpire"
381mean a competent, independent, and impartial third party
382selected by the appraisers for the insurer and insured to
383resolve issues for which the appraisers are unable to reach an
384agreement in the course of the appraisal process pursuant to a
385residential or commercial residential property insurance
386contract that permits the resolution of a claim dispute by
387appraisal.
388     (3)  "Property insurance loss appraiser" and "appraiser"
389mean a competent and independent third party selected by an
390insurer or an insured to develop an appraisal for purposes of
391the appraisal process under a residential or commercial
392residential property insurance contract that permits the
393resolution of a claim dispute by appraisal.
394     626.9934  Appraisal umpire application; fingerprinting
395required; umpire list.--
396     (1)  Application for a license under this part shall be
397made as provided in s. 626.171 and related sections of this
398code.
399     (2)  At the time of application, the applicant must be
400fingerprinted by a law enforcement agency or other entity
401approved by the department and must pay the fingerprint
402processing fee specified in s. 624.501. Fingerprints must be
403processed in accordance with s. 624.34.
404     (3)  The department shall develop and maintain as a public
405record a current list of licensed property insurance appraisal
406umpires.
407     626.9935  Rulemaking authority.--The department may adopt
408rules to administer the requirements of this part pursuant to
409ss. 120.536(1) and 120.54.
410     626.9936  Qualifications for licensure as a property
411insurance appraisal umpire.--
412     (1)  The department may not issue a license as a property
413insurance appraisal umpire to any individual found by it to be
414untrustworthy or incompetent, or who does not meet the following
415qualifications:
416     (a)  The applicant has filed an application with the
417department in accordance with s. 626.171;
418     (b)  The applicant is a natural person who is at least 18
419years of age;
420     (c)  The applicant is a United States citizen or legal
421alien who possesses work authorization from the United States
422Bureau of Citizenship and Immigration Services; and
423     (d)  The applicant has completed the education, experience,
424or licensing requirements in s. 626.9937.
425     (2)  An incomplete application expires 6 months after the
426date on which it is received.
427     (3)  An applicant seeking to become licensed under this
428part may not be rejected solely by virtue of membership or lack
429of membership in any particular appraisal organization.
430     626.9937  Requirements as to licensure, education,
431experience, or instruction for applicants seeking licensure as a
432property insurance appraisal umpire.--The department may not
433issue a license to an applicant for licensure as a property
434insurance appraisal umpire unless the applicant meets one of the
435following requirements:
436     (1)  The applicant is currently licensed, registered,
437certified, or approved as an engineer as defined in s. 471.005,
438or as a retired professional engineer as defined in s. 471.005,
439and has taught or successfully completed 4 hours of classroom
440coursework, approved by the department, specifically related to
441construction, building codes, appraisal procedure, appraisal
442preparation, and any other related material deemed appropriate
443by the department.
444     (2)  The applicant is currently or, within the 5 years
445immediately preceding the date on which the application is filed
446with the department, has been licensed, registered, certified,
447or approved as a general contractor, building contractor, or
448residential contractor as defined in s. 489.105, and has taught
449or successfully completed 4 hours of classroom coursework,
450approved by the department, specifically related to
451construction, building codes, appraisal procedure, appraisal
452preparation, and any other related material deemed appropriate
453by the department.
454     (3)  The applicant is currently or, within the 5 years
455immediately preceding the date on which the application is filed
456with the department, has been licensed or registered as an
457architect to engage in the practice of architecture pursuant to
458part I of chapter 481 and has taught or successfully completed 4
459hours of classroom coursework, approved by the department,
460specifically related to construction, building codes, appraisal
461procedure, appraisal preparation, and any other related material
462deemed appropriate by the department.
463     (4)  The applicant is currently or, within the 5 years
464immediately preceding the date on which the application is filed
465with the department, has been a qualified geologist or
466professional geologist as defined in s. 492.102 and has taught
467or successfully completed 4 hours of classroom coursework,
468approved by the department, specifically related to
469construction, building codes, appraisal procedure, appraisal
470preparation, and any other related material deemed appropriate
471by the department.
472     (5)  The applicant is currently or, within the 5 years
473immediately preceding the date on which the application is filed
474with the department, has been licensed as a certified public
475accountant as defined in s. 473.302, and has taught or
476successfully completed 4 hours of classroom coursework, approved
477by the department, specifically related to construction,
478building codes, appraisal procedure, appraisal preparation, and
479any other related material deemed appropriate by the department.
480     (6)  The applicant is currently or, within the 5 years
481immediately preceding the date on which the application is filed
482with the department, has been licensed as an attorney at law in
483this state and has taught or successfully completed 4 hours of
484classroom coursework, approved by the department, specifically
485related to construction, building codes, appraisal procedure,
486appraisal preparation, and any other related material deemed
487appropriate by the department.
488     (7)  The applicant has received a baccalaureate degree from
489an accredited 4-year college in the field of engineering,
490architecture, or building construction and has taught or
491successfully completed 4 hours of classroom coursework, approved
492by the department, specifically related to construction,
493building codes, appraisal procedure, appraisal preparation, and
494any other related material deemed appropriate by the department.
495     (8)  The applicant is currently licensed as an all-lines or
496property and casualty adjuster pursuant to part VI and:
497     (a)  Has 1 year of proven experience as an employee of a
498general contractor, building contractor, or residential
499contractor;
500     (b)  Has received a minimum of 8 semester hours or 12
501quarter hours of credit from an accredited college in the field
502of accounting, geology, engineering, architecture, or building
503construction;
504     (c)  Has taught or successfully completed 24 hours of
505classroom coursework, approved by the department, specifically
506related to construction, building codes, appraisal procedure,
507appraisal preparation, and any other related material deemed
508appropriate by the department; or
509     (d)  Has acted as an appraiser or umpire in a minimum of 20
510appraisal proceedings under a property insurance contract within
511the 4 years immediately preceding the date on which an insurer
512or insured demands an appraisal.
513     (9)  The applicant has successfully completed 40 hours of
514classroom coursework, approved by the department, specifically
515related to construction, building codes, appraisal procedure,
516appraisal preparation, property insurance, and any other related
517material deemed appropriate by the department.
518     626.9938  Regulation of umpire course providers,
519instructors, and courses.--
520     (1)  Each umpire course provider, instructor, and classroom
521course must be approved by and registered with the department
522before prelicensure courses for property insurance appraisal
523umpires may be offered. Each classroom course must include a
524written examination at the conclusion of the course and must
525cover all of the material contained in the course. A student may
526not receive credit for the course unless the student achieves a
527grade of not less than 75 on the examination.
528     (2)  The department shall adopt rules establishing
529standards for the approval, registration, discipline, or removal
530from registration of course providers, instructors, and courses.
531The standards must be designed to ensure that instructors have
532the knowledge, competence, and integrity to fulfill the
533educational objectives of the prelicensure requirements of this
534part.
535     (3)  The department shall adopt rules to establish a
536process for determining compliance with the prelicensure
537requirements of this part. The department shall adopt rules
538prescribing the forms necessary to administer the prelicensure
539requirements of this part.
540     (4)  Approval to teach prescribed or approved appraisal
541courses does not entitle the instructor to teach any courses
542outside the scope of this part.
543     626.9939  Grounds for compulsory refusal, suspension, or
544revocation of an umpire's license.--In addition to the grounds
545set forth in s. 626.611, the department shall deny an
546application for, and suspend, revoke, or refuse to renew or
547continue, a license as a property insurance appraisal umpire if
548it finds that the licensee has:
549     (1)  Violated a duty imposed upon him or her by law or by
550the terms of a contract, whether written, oral, express, or
551implied, in an appraisal; has aided, assisted, or conspired with
552any other person engaged in any such misconduct and in
553furtherance thereof; or has formed an intent, design, or scheme
554to engage in such misconduct and committed an overt act in
555furtherance of such intent, design, or scheme. It is immaterial
556to a finding that a licensee has committed a violation of this
557subsection that the victim or intended victim of the misconduct
558has sustained no damage or loss, that the damage or loss has
559been settled and paid after the discovery of misconduct, or that
560such victim or intended victim was a customer or a person in a
561confidential relation with the licensee or was an identified
562member of the general public.
563     (2)  Violated any provision of this part or any lawful
564order or rule of the department.
565     (3)  Had a registration, license, or certification as an
566appraiser revoked, suspended, or otherwise acted against; has
567had his or her registration, license, or certificate to practice
568or conduct any regulated profession, business, or vocation
569revoked or suspended by this or any other state, any nation, or
570any possession or district of the United States; or has had an
571application for such registration, licensure, or certification
572to practice or conduct any regulated profession, business, or
573vocation denied by this or any other state, any nation, or any
574possession or district of the United States.
575     (4)  Made or filed a report or record, either written or
576oral, which the licensee knows to be false; has willfully failed
577to file a report or record required by state or federal law; has
578willfully impeded or obstructed such filing; or has induced
579another person to impede or obstruct such filing.
580     (5)  Accepted an appointment as an umpire if the
581appointment itself is contingent upon the umpire reporting a
582predetermined result, analysis, or opinion, or if the fee to be
583paid for the services of the umpire is contingent upon the
584opinion, conclusion, or valuation reached by the umpire.
585     626.9940  Grounds for discretionary denial, suspension, or
586revocation of a license as a property insurance appraisal
587umpire.--In addition to the applicable grounds set forth in s.
588626.621, the department may deny an application for and suspend,
589revoke, or refuse to renew or continue a license as a property
590insurance appraisal umpire, if it finds that the umpire has:
591     (1)  Failed to timely communicate with the appraisers
592without good cause.
593     (2)  Failed or refused to exercise reasonable diligence in
594submitting recommendations to the appraisers.
595     (3)  Violated any ethical standard for property insurance
596appraisal umpires set forth in s. 626.9941.
597     (4)  Failed to inform the department in writing within 30
598days after pleading guilty or nolo contendere to, or being
599convicted or found guilty of, any felony.
600     (5)  Failed to timely notify the department of any change
601in business location, or has failed to fully disclose all
602business locations from which he or she operates as a property
603insurance appraisal umpire.
604     626.9941  Ethical standards for property insurance
605appraisal umpires.--
606     (1)  IMPARTIALITY.--An umpire shall be neutral and maintain
607impartiality throughout the appraisal process. Impartiality
608means freedom from favoritism or bias in word, action, or
609appearance. An umpire shall withdraw from appraisal if the
610umpire is no longer impartial.
611     (2)  GIFTS AND SOLICITATION.--An umpire may not give or
612accept any gift, favor, loan, or other item of value in an
613appraisal process. During the appraisal process, an umpire may
614not solicit or otherwise attempt to procure future professional
615services.
616     (3)  CONFLICTS OF INTEREST.--An umpire may not participate
617in a matter that presents a clear or undisclosed conflict of
618interest. A conflict of interest arises when any relationship
619between the umpire and the appraisal participants or the subject
620matter of the dispute compromises, or appears to compromise, the
621umpire's impartiality.
622     (4)  BURDEN OF DISCLOSURE.--The burden of disclosure of any
623potential conflict of interest rests on the umpire. Disclosure
624must be made as soon as practical after the umpire becomes aware
625of the interest or relationship giving rise to the potential
626conflict of interest.
627     (5)  EFFECT OF DISCLOSURE.--After appropriate disclosure,
628the umpire may serve if all parties agree. However, if a
629conflict of interest clearly impairs an umpire's impartiality,
630the umpire shall withdraw regardless of the express agreement of
631the parties.
632     (6)  CONFIDENTIALITY.--An umpire shall maintain
633confidentiality of all information revealed during an appraisal
634except where disclosure is required by law.
635     (7)  RECORDKEEPING.--An umpire shall maintain
636confidentiality in the storage and disposal of records and may
637not disclose any identifying information when materials are used
638for research, training, or statistical compilations.
639     (8)  FEES AND EXPENSES.--An umpire holds a position of
640trust. Fees charged for appraisal services shall be reasonable
641and consistent with the nature of the case. An umpire shall be
642guided by the following general principles in determining fees:
643     (a)  Any charges for services as an umpire based on time
644may not exceed actual time spent or allocated;
645     (b)  Charges for costs shall be for those actually
646incurred; and
647     (c)  An umpire may not charge, agree to, or accept as
648compensation or reimbursement any payment, commission, or fee
649that is based on a percentage basis, or that is contingent upon
650arriving at a particular value or any future happening or
651outcome of the assignment.
652     (9)  MAINTENANCE OF RECORDS.--An umpire shall maintain
653records necessary to support charges for services and expenses
654and upon request shall provide an accounting of all applicable
655charges to the parties.
656     (10)  ADVERTISING.--An umpire may not engage in marketing
657practices that contain false or misleading information. An
658umpire shall ensure that any advertisements of the umpire's
659qualifications, services to be rendered, or the appraisal
660process are accurate and honest. An umpire may not make claims
661of achieving specific outcomes or promises implying favoritism
662for the purpose of obtaining business.
663     (11)  INTEGRITY AND IMPARTIALITY.--An umpire may not accept
664any engagement, provide any service, or perform any act that
665would compromise the umpire's integrity or impartiality.
666     (12)  SKILL AND EXPERIENCE.--An umpire shall decline an
667appointment or selection, withdraw, or request appropriate
668assistance when the facts and circumstances of the appraisal are
669beyond the umpire's skill or experience.
670     626.9942  Retention of records.--An umpire licensed under
671this part shall retain for at least 5 years original or true
672copies of any contracts engaging the umpire's services,
673appraisal reports, and supporting data assembled and formulated
674by the umpire in preparing appraisal reports. The period for
675retaining the records applicable to each engagement of the
676services of the umpire starts on the date of the submission of
677the appraisal report to the client. These records must be made
678available by the umpire for inspection and copying by the
679department upon reasonable notice to the umpire. If an appraisal
680has been the subject of, or has been admitted as evidence in, a
681lawsuit, reports and records must be retained for at least 2
682years after the date on which the trial ends.
683     Section 7.  Section 627.4141, Florida Statutes, is created
684to read:
685     627.4141  Residential or commercial property insurance loss
686appraisal.--If a residential or commercial residential property
687insurance contract provides that either party may submit a
688written demand to enter into the process of appraisal if the
689insured and the insurer fail to mutually agree as to the actual
690cash value, the amount of loss, or the cost of repair or
691replacement of property for which a claim has been filed, that
692process shall be governed by this section. The insurer may
693refuse to accept the demand only if the insured materially
694failed to comply with the post-loss obligations of the insured
695as set forth in the policy conditions.
696     (1)  Each party shall select a competent and independent
697appraiser and notify the other party of the appraiser selected
698within 20 days after the date of the demand for appraisal. The
699appraisers shall select a competent, independent, and impartial
700umpire who is on the department's list of licensed property
701insurance appraisal umpires. If the appraisers are unable to
702agree on an umpire within 15 days, the insured or the insurer
703may file a petition with a county or circuit court in the
704jurisdiction in which the covered property is located to
705designate a licensed property insurance appraisal umpire for the
706appraisal.
707     (2)  Appraisal proceedings are informal unless the insured
708and the insurer mutually agree otherwise. For purposes of this
709section, "informal" means that no formal discovery shall be
710conducted, including depositions, interrogatories, requests for
711admission, or other forms of formal civil discovery; no formal
712rules of evidence shall be applied; and no court reporter shall
713be used for the proceedings.
714     (3)  Each appraiser shall appraise the loss and submit a
715written report to the other appraiser, separately stating the
716cost of the loss, the actual cash value, or the cost to repair
717or replace each item. The appraisers shall attempt to resolve
718any differences in their appraisals and reach a mutual agreement
719on all matters. If the appraisers are unable to agree, they
720shall submit the differences in their findings to the umpire.
721     (4)  The umpire shall review any differences in appraisals
722submitted by the appraisers and determine the amount of the loss
723for each item submitted. Within 10 days after receipt of any
724differences in appraisals, the umpire shall submit the umpire's
725conclusions in writing to each appraiser.
726     (5)  If either appraiser agrees with the conclusions of the
727umpire, an itemized written appraisal award signed by the umpire
728and the appraiser shall be filed with the insurer and shall
729determine the amount of the loss.
730     (6)  The appraisal award is binding on the insurer and the
731insured with regard to the amount of the loss. The insurer
732retains the right to enforce policy terms, conditions, and
733exclusions with regard to coverage issues.
734     (7)  Each appraiser shall be paid by the party who selects
735the appraiser and the expenses of the appraisal and fees of the
736umpire shall be paid by the parties equally except, if the final
737determination of the amount of the loss exceeds 50 percent of
738the insurer's original appraisal, the insurer shall pay all of
739the expenses, including any fees and expenses charged by the
740insured's appraiser and all fees and expenses of the umpire.
741     (8)  The provisions of the Florida Arbitration Code do not
742apply to residential and commercial property insurance loss
743appraisal proceedings.
744     (9)  The appraisal process may not address issues involving
745whether or not the loss or damage is covered under the terms of
746the insurance contract. However, the appraisers and the umpire
747may consider causation issues, when necessary, to determine the
748amount of loss.
749     Section 8.  This act shall take effect July 1, 2008.


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