CS/HB 1087

1	A bill to be entitled
2	An act relating to insurance; amending s. 440.12, F.S.;
3	authorizing payment of workers' compensation benefits on a
4	prepaid card under certain circumstances; requiring the
5	keeping and furnishing, upon request, of certain records;
6	providing for the adoption of rules; amending s. 440.20,
7	F.S.; specifying when an insurer's obligation to pay
8	workers' compensation benefits is satisfied if payment is
9	made on a prepaid card; amending s. 624.402, F.S.;
10	providing an exemption from having to obtain a certificate
11	of authority to insurers that cover only nonresidents of
12	the United States under certain conditions; requiring such
13	insurers to provide certain documentation to the Office of
14	Insurance Regulation; requiring certificates, policies, or
15	contracts issued by such insurers to include a disclaimer
16	relating to the coverage provided; defining a
17	"nonresident" for purposes of applying the exemption
18	provided to such insurers from having to obtain a
19	certificate of authority; providing penalties applicable
20	to alien insurers who transact insurance without complying
21	with certain provisions; deleting procedures and
22	requirements relating to an exemption from obtaining a
23	certificate of authority provided to alien insurers who
24	issue life insurance policies and annuity contracts to
25	certain nonresidents; amending s. 624.424, F.S.; revising
26	the timeframes that limit how frequently an insurer may
27	use the same accountant or partner to prepare an annual
28	audited financial report; amending s. 626.207, F.S.;
29	defining the term "financial services business";
30	precluding licensure under the Florida Insurance Code of
31	specified persons who commit specified offenses; providing
32	application to convictions and certain pleas, regardless
33	of adjudication; establishing waiting periods relating to
34	other specified offenses during which time an applicant is
35	disqualified for licensure; granting rulemaking authority
36	to the Department of Financial Services relating to
37	specific penalties against licensees; clarifying
38	rulemaking authority relating to penalties against
39	licensees; providing that specified statutory provisions
40	prohibiting prior crimes from being a bar to employment
41	are not applicable to applicants for licensure under the
42	Florida Insurance Code; amending s. 626.8651, F.S.;
43	revising requirements for a public adjuster apprentice
44	license to include additional qualifying designations;
45	amending s. 627.4133, F.S.; changing the designated person
46	or persons who must be notified by an insurer from the
47	"insured" to the "first-named insured" in situations
48	involving the nonrenewal, renewal premium, cancellation,
49	or termination of workers' compensation, employer
50	liability, or certain property and casualty insurance
51	coverage; specifying that the date of cancellation of a
52	workers' compensation or employer's liability policy is
53	the date of the insured's written request to cancel;
54	amending s. 627.4137, F.S.; requiring a claimant's request
55	concerning insurance coverage to be served upon the
56	disclosing entity in a specified manner; amending s.
57	627.7277, F.S.; making a conforming change that specifies
58	the "first-named insured" as the person who is to receive
59	notification of a renewal premium; amending s. 627.728,
60	F.S.; changing the designated person or persons who must
61	be notified by an insurer from the "insured" to the
62	"first-named insured" in certain situations involving the
63	cancellation or nonrenewal of motor vehicle insurance
64	coverage; making a conforming change that specifies the
65	"first-named insured's insurance agent" as a person who is
66	to receive certain notifications relating to motor vehicle
67	insurance coverage; amending s. 627.7281, F.S.; making a
68	conforming change that specifies the "first-named insured"
69	as the person who is to receive notification of
70	cancellation of motor vehicle insurance coverage; creating
71	s. 634.1711, F.S.; authorizing a consumer to purchase a
72	motor vehicle service agreement for a premium negotiated
73	with the salesperson notwithstanding certain regulatory
74	provisions relating to rebates and specified trade
75	practices; providing that motor vehicle service agreement
76	companies are responsible for establishing premium rates
77	to ensure their solvency; amending s. 634.403, F.S.;
78	exempting certain persons providing service warranties
79	relating to consumer products from licensing requirements
80	under certain circumstances; providing applicability;
81	providing effective dates.
82
83	Be It Enacted by the Legislature of the State of Florida:
84
85	Section 1.  Subsection (1) of section 440.12, Florida
86	Statutes, is amended to read:
87	440.12  Time for commencement and limits on weekly rate of
88	compensation.-
89	(1)  No Compensation is not shall be allowed for the first
90	7 days of the disability, except for benefits provided under for
91	in s. 440.13. However, if the injury results in disability of
92	more than 21 days, compensation shall be allowed from the
93	commencement of the disability.
94	(a)  All weekly compensation payments, except for the first
95	payment, shall be paid by check or, if authorized by the
96	employee, on a prepaid card pursuant to paragraph (b) or
97	deposited directly into the employee's account at a financial
98	institution. As used in this subsection, the term "financial
99	institution" means a financial institution as defined in s.
100	655.005(1)(h).
101	(b)  Upon receipt of authorization by the employee as
102	provided in paragraph (a), a carrier may use a prepaid card to
103	deliver the payment of compensation to an employee if the
104	employee is:
105	1.  Provided with at least one means of accessing his or
106	her entire compensation payment once per week without incurring
107	fees;
108	2.  Provided with the ability to make point-of-sale
109	purchases without incurring fees from the financial institution
110	issuing the prepaid card; and
111	3.  Provided with the terms and conditions of the prepaid
112	card program, including a description of any fees that may be
113	assessed.
114	(c)  Each carrier shall keep a record of all payments made
115	under this subsection, including the time and manner of such
116	payments, and shall furnish these records or a report based on
117	these records to the Division of Insurance Fraud and the
118	Division of Workers' Compensation, upon request.
119	(d)  The department may adopt rules to administer this
120	section.
121	Section 2.  Paragraph (a) of subsection (1) of section
122	440.20, Florida Statutes, is amended to read:
123	440.20  Time for payment of compensation and medical bills;
124	penalties for late payment.-
125	(1)(a)  Unless it denies compensability or entitlement to
126	benefits, the carrier shall pay compensation directly to the
127	employee as required by ss. 440.14, 440.15, and 440.16, in
128	accordance with the obligations set forth in those such
129	sections. Upon receipt of the employee's authorization as
130	provided for in s. 440.12(1)(a) If authorized by the employee,
131	the carrier's obligation to pay compensation directly to the
132	employee is satisfied when the carrier directly deposits, by
133	electronic transfer or other means, compensation into the
134	employee's account at a financial institution or onto a prepaid
135	card in accordance with s. 440.12(1). As used in this paragraph,
136	the term "financial institution" means a financial institution
137	as defined in s. 655.005(1)(h). Compensation by direct deposit
138	or through the use of a prepaid card is considered paid on the
139	date the funds become available for withdrawal by the employee.
140	Section 3.  Subsection (8) of section 624.402, Florida
141	Statutes, is amended to read:
142	624.402  Exceptions, certificate of authority required.-A
143	certificate of authority shall not be required of an insurer
144	with respect to:
145	(8)(a)  An insurer domiciled outside the United States
146	covering only persons who, at the time of issuance or renewal,
147	are nonresidents of the United States if:
148	1.  The insurer or any affiliated person as defined in s.
149	624.04 under common ownership or control with the insurer does
150	not solicit, sell, or accept application for any insurance
151	policy or contract to be delivered or issued for delivery to any
152	person in any state;
153	2.  The insurer registers with the office via a letter of
154	notification upon commencing business from this state;
155	3.  The insurer provides the following information, in
156	English, to the office annually by March 1:
157	a.  The name of the insurer, the country of domicile, the
158	address of the insurer's principal office and office in this
159	state, the names of the owners of the insurer and their
160	percentage of ownership, the names of the officers and directors
161	of the insurer, the name, e-mail, and telephone number of a
162	contact person for the insurer, and the number of individuals
163	who are employed by the insurer or its affiliates in this state;
164	b.  The lines of insurance and types of products offered by
165	the insurer;
166	c.  A statement from the applicable regulatory body of the
167	insurer's domicile certifying that the insurer is licensed or
168	registered for those lines of insurance and types of products in
169	that domicile; and
170	d.  A copy of the filings required by the applicable
171	regulatory body of the insurer's country of domicile in that
172	country's official language or in English, if available;
173	4.  All certificates, policies, or contracts issued in this
174	state showing coverage under the insurer's policy include the
175	following statement in a contrasting color and at least 10-point
176	type: "The policy providing your coverage and the insurer
177	providing this policy have not been approved by the Florida
178	Office of Insurance Regulation"; and
179	5.  In the event the insurer ceases to do business from
180	this state, the insurer will provide written notification to the
181	office within 30 days after cessation.
182	(b)  For purposes of this subsection, "nonresident" means a
183	person who resides in and maintains a physical place of domicile
184	in a country other than the United States, which he or she
185	recognizes as and intends to maintain as his or her permanent
186	home. A nonresident does not include an unauthorized immigrant
187	present in the United States. Notwithstanding any other
188	provision of law, it is conclusively presumed, for purposes of
189	this subsection, that a person is a resident of the United
190	States if such person has:
191	1.  Had his or her principal place of domicile in the
192	United States for 180 days or more in the 365 days prior to
193	issuance or renewal of the policy;
194	2.  Registered to vote in any state;
195	3.  Made a statement of domicile in any state; or
196	4.  Filed for homestead tax exemption on property in any
197	state.
198	(c)  Subject to the limitations provided in this
199	subsection, services, including those listed in s. 624.10, may
200	be provided by the insurer or an affiliated person as defined in
201	s. 624.04 under common ownership or control with the insurer.
202	(d)  An alien insurer transacting insurance in this state
203	without complying with this subsection shall be in violation of
204	this chapter and subject to the penalties provided in s. 624.15.
205	(a)  Life insurance policies or annuity contracts issued by
206	an insurer domiciled outside the United States covering only
207	persons who, at the time of issuance, are not residents of the
208	United States and are not nonresidents illegally residing in the
209	United States, provided:
210	1.  The insurer must currently be an authorized insurer in
211	its country of domicile as to the kind or kinds of insurance
212	proposed to be offered and must have been such an insurer for
213	not fewer than the immediately preceding 3 years, or must be the
214	wholly owned subsidiary of such authorized insurer or must be
215	the wholly owned subsidiary of an already eligible authorized
216	insurer as to the kind or kinds of insurance proposed for a
217	period of not fewer than the immediately preceding 3 years.
218	However, the office may waive the 3-year requirement if the
219	insurer has operated successfully for a period of at least the
220	immediately preceding year and has capital and surplus of not
221	less than $25 million.
222	2.  Before the office may grant eligibility, the requesting
223	insurer shall furnish the office with a duly authenticated copy
224	of its current annual financial statement, in English, and with
225	all monetary values therein expressed in United States dollars,
226	at an exchange rate then-current and shown in the statement, in
227	the case of statements originally made in the currencies of
228	other countries, and with such additional information relative
229	to the insurer as the office may request.
230	3.  The insurer must have and maintain surplus as to
231	policyholders of not less than $15 million. Any such surplus as
232	to policyholders shall be represented by investments consisting
233	of eligible investments for like funds of like domestic insurers
234	under part II of chapter 625; however, any such surplus as to
235	policyholders may be represented by investments permitted by the
236	domestic regulator of such alien insurance company if such
237	investments are substantially similar in terms of quality,
238	liquidity, and security to eligible investments for like funds
239	of like domestic insurers under part II of chapter 625.
240	4.  The insurer must be of good reputation as to the
241	providing of service to its policyholders and the payment of
242	losses and claims.
243	5.  To maintain eligibility, the insurer shall furnish the
244	office within the time period specified in s. 624.424(1)(a) a
245	duly authenticated copy of its current annual and quarterly
246	financial statements, in English, and with all monetary values
247	therein expressed in United States dollars, at an exchange rate
248	then-current and shown in the statement, in the case of
249	statements originally made in the currencies of other countries,
250	and with such additional information relative to the insurer as
251	the office may request.
252	6.  An insurer receiving eligibility under this subsection
253	shall agree to make its books and records pertaining to its
254	operations in this state available for inspection during normal
255	business hours upon request of the office.
256	7.  The insurer shall provide to the applicant for the
257	policy or contract a copy of the most recent quarterly financial
258	statements of the insurer providing, in clear and conspicuous
259	language:
260	a.  The date of organization of the insurer.
261	b.  The identity of and rating assigned by each recognized
262	insurance company rating organization that has rated the insurer
263	or, if applicable, that the insurer is unrated.
264	c.  That the insurer does not hold a certificate of
265	authority issued in this state and that the office does not
266	exercise regulatory oversight over the insurer.
267	d.  The identity and address of the regulatory authority
268	exercising oversight of the insurer.
269
270	This paragraph does not impose upon the office any duty or
271	responsibility to determine the actual financial condition or
272	claims practices of any unauthorized insurer, and the status of
273	eligibility, if granted by the office, indicates only that the
274	insurer appears to be financially sound and to have satisfactory
275	claims practices and that the office has no credible evidence to
276	the contrary.
277	(b)  If at any time the office has reason to believe that
278	an insurer issuing policies or contracts pursuant to this
279	subsection is insolvent or is in unsound financial condition,
280	does not make reasonable prompt payment of benefits, or is no
281	longer eligible under the conditions specified in this
282	subsection, the office may conduct an examination or
283	investigation in accordance with s. 624.316, s. 624.3161, or s.
284	624.320 and, if the findings of such examination or
285	investigation warrant, may withdraw the eligibility of the
286	insurer to issue policies or contracts pursuant to this
287	subsection without having a certificate of authority issued by
288	the office.
289	(c)  This subsection does not provide an exception to the
290	agent licensure requirements of chapter 626. Any insurer issuing
291	policies or contracts pursuant to this subsection shall appoint
292	the agents that the insurer uses to sell such policies or
293	contracts as provided in chapter 626.
294	(d)  An insurer issuing policies or contracts pursuant to
295	this subsection is subject to part IX of chapter 626, Unfair
296	Insurance Trade Practices, and the office may take such actions
297	against the insurer for a violation as are provided in that
298	part.
299	(e)  Policies and contracts issued pursuant to this
300	subsection are not subject to the premium tax specified in s.
301	624.509.
302	(f)  Applications for life insurance coverage offered under
303	this subsection must contain, in contrasting color and not less
304	than 12-point type, the following statement on the same page as
305	the applicant's signature:
306
307	This policy is primarily governed by the laws of a
308	foreign country. As a result, all of the rating and
309	underwriting laws applicable to policies filed in this
310	state do not apply to this coverage, which may result
311	in your premiums being higher than would be
312	permissible under a Florida-approved policy. Any
313	purchase of individual life insurance should be
314	considered carefully, as future medical conditions may
315	make it impossible to qualify for another individual
316	life policy. If the insurer issuing your policy
317	becomes insolvent, this policy is not covered by the
318	Florida Life and Health Insurance Guaranty
319	Association. For information concerning individual
320	life coverage under a Florida-approved policy, consult
321	your agent or the Florida Department of Financial
322	Services.
323
324	(g)  All life insurance policies and annuity contracts
325	issued pursuant to this subsection must contain on the first
326	page of the policy or contract, in contrasting color and not
327	less than 10-point type, the following statement:
328
329	The benefits of the policy providing your coverage are
330	governed primarily by the law of a country other than
331	the United States.
332
333	(h)  All single-premium life insurance policies and single-
334	premium annuity contracts issued to persons who are not
335	residents of the United States and are not nonresidents
336	illegally residing in the United States pursuant to this
337	subsection shall be subject to the provisions of chapter 896.
338	Section 4.  Paragraph (d) of subsection (8) of section
339	624.424, Florida Statutes, is amended to read:
340	624.424  Annual statement and other information.-
341	(8)
342	(d)  An insurer may not use the same accountant or partner
343	of an accounting firm responsible for preparing the report
344	required by this subsection for more than 5 7 consecutive years.
345	Following this period, the insurer may not use such accountant
346	or partner for a period of 5 2 years, but may use another
347	accountant or partner of the same firm. An insurer may request
348	the office to waive this prohibition based upon an unusual
349	hardship to the insurer and a determination that the accountant
350	is exercising independent judgment that is not unduly influenced
351	by the insurer considering such factors as the number of
352	partners, expertise of the partners or the number of insurance
353	clients of the accounting firm; the premium volume of the
354	insurer; and the number of jurisdictions in which the insurer
355	transacts business.
356	Section 5.  Effective upon this act becoming a law, section
357	626.207, Florida Statutes, is amended to read:
358	626.207  Disqualification of applicants and licensees;
359	penalties against licensees; rulemaking authority Department
360	rulemaking authority; waiting periods for applicants; penalties
361	against licensees.-
362	(1)  For purposes of this section, the term "financial
363	services business" means any financial activity regulated by the
364	Department of Financial Services, the Office of Insurance
365	Regulation, or the Office of Financial Regulation. The
366	department shall adopt rules establishing specific waiting
367	periods for applicants to become eligible for licensure
368	following denial, suspension, or revocation pursuant to s.
369	626.611, s. 626.621, s. 626.8437, s. 626.844, s. 626.935, s.
370	634.181, s. 634.191, s. 634.320, s. 634.321, s. 634.422, s.
371	634.423, s. 642.041, or s. 642.043. The purpose of the waiting
372	periods is to provide sufficient time to demonstrate reformation
373	of character and rehabilitation. The waiting periods shall vary
374	based on the type of conduct and the length of time since the
375	conduct occurred and shall also be based on the probability that
376	the propensity to commit illegal conduct has been overcome. The
377	waiting periods may be adjusted based on aggravating and
378	mitigating factors established by rule and consistent with this
379	purpose.
380	(2)  For purposes of this section, the terms "felony of the
381	first degree" and "capital felony" include all felonies
382	designated as such by the Florida Statutes, as well as any
383	felony so designated in the jurisdiction in which the plea is
384	entered or judgment is rendered.
385	(3)  An applicant who commits a felony of the first degree,
386	a capital felony, a felony involving money laundering, fraud, or
387	embezzlement, or a felony directly related to the financial
388	services business is permanently barred from applying for a
389	license under this part. This bar applies to convictions, guilty
390	pleas, or nolo contendere pleas, regardless of adjudication, by
391	any applicant, officer, director, majority owner, partner,
392	manager, or other person who manages or controls any applicant.
393	(4)  For all other crimes not included in subsection (3),
394	the department shall adopt rules establishing the process and
395	application of disqualifying periods that include:
396	(a)  A 15-year disqualifying period for all felonies
397	involving moral turpitude that are not specifically included in
398	the permanent bar contained in subsection (3).
399	(b)  A 7-year disqualifying period for all felonies to
400	which neither the permanent bar in subsection (3) nor the 15-
401	year disqualifying period in paragraph (a) applies.
402	(c)  A 7-year disqualifying period for all misdemeanors
403	directly related to the financial services business.
404	(5)  The department shall adopt rules providing for
405	additional disqualifying periods due to the commitment of
406	multiple crimes and other factors reasonably related to the
407	applicant's criminal history. The rules shall provide for
408	mitigating and aggravating factors. However, mitigation may not
409	result in a period of disqualification of less than 7 years and
410	may not mitigate the disqualifying periods in paragraphs (4)(b)
411	and (c).
412	(6)  For purposes of this section, the disqualifying
413	periods begin upon the applicant's final release from
414	supervision or upon completion of the applicant's criminal
415	sentence, including payment of fines, restitution, and court
416	costs for the crime for which the disqualifying period applies.
417	(7)  After the disqualifying period has been met, the
418	burden is on the applicant to demonstrate that the applicant has
419	been rehabilitated, does not pose a risk to the insurance-buying
420	public, is fit and trustworthy to engage in the business of
421	insurance pursuant to s. 626.611(7), and is otherwise qualified
422	for licensure.
423	(8)(2)  The department shall adopt rules establishing
424	specific penalties against licensees in accordance with ss.
425	626.641 and 626.651 for violations of s. 626.611, s. 626.621, s.
426	626.8437, s. 626.844, s. 626.935, s. 634.181, s. 634.191, s.
427	634.320, s. 634.321, s. 634.422, s. 634.423, s. 642.041, or s.
428	642.043. The purpose of the revocation or suspension is to
429	provide a sufficient penalty to deter future violations of the
430	Florida Insurance Code. The imposition of a revocation or the
431	length of suspension shall be based on the type of conduct and
432	the probability that the propensity to commit further illegal
433	conduct has been overcome at the time of eligibility for
434	relicensure. The revocation or the length of suspension may be
435	adjusted based on aggravating or mitigating factors, established
436	by rule and consistent with this purpose.
437	(9)  Section 112.011 does not apply to any applicants for
438	licensure under the Florida Insurance Code, including, but not
439	limited to, agents, agencies, adjusters, adjusting firms,
440	customer representatives, or managing general agents.
441	Section 6.  Subsection (4) of section 626.8651, Florida
442	Statutes, is amended to read:
443	626.8651  Public adjuster apprentice license;
444	qualifications.-
445	(4)  An applicant must have received designation as an
446	Accredited Claims Adjuster (ACA), as a Certified Adjuster (CA),
447	or as a Certified Claims Adjuster (CCA) after completion of
448	training that qualifies the applicant to engage in the business
449	of a public adjuster apprentice fairly and without injury to the
450	public. Such training and instruction must address adjusting
451	damages and losses under insurance contracts, the terms and
452	effects of insurance contracts, and knowledge of the laws of
453	this state relating to insurance contracts.
454	Section 7.  Paragraphs (a) and (b) of subsection (1),
455	paragraphs (a) and (b) of subsection (2), and subsection (4) of
456	section 627.4133, Florida Statutes, are amended to read:
457	627.4133  Notice of cancellation, nonrenewal, or renewal
458	premium.-
459	(1)  Except as provided in subsection (2):
460	(a)  An insurer issuing a policy providing coverage for
461	workers' compensation and employer's liability insurance,
462	property, casualty, except mortgage guaranty, surety, or marine
463	insurance, other than motor vehicle insurance subject to s.
464	627.728, shall give the first-named named insured at least 45
465	days' advance written notice of nonrenewal or of the renewal
466	premium. If the policy is not to be renewed, the written notice
467	shall state the reason or reasons as to why the policy is not to
468	be renewed. This requirement applies only if the insured has
469	furnished all of the necessary information so as to enable the
470	insurer to develop the renewal premium prior to the expiration
471	date of the policy to be renewed.
472	(b)  An insurer issuing a policy providing coverage for
473	property, casualty, except mortgage guaranty, surety, or marine
474	insurance, other than motor vehicle insurance subject to s.
475	627.728 or s. 627.7281, shall give the first-named named insured
476	written notice of cancellation or termination other than
477	nonrenewal at least 45 days prior to the effective date of the
478	cancellation or termination, including in the written notice the
479	reason or reasons for the cancellation or termination, except
480	that:
481	1.  When cancellation is for nonpayment of premium, at
482	least 10 days' written notice of cancellation accompanied by the
483	reason therefor shall be given. As used in this subparagraph and
484	s. 440.42(3), the term "nonpayment of premium" means failure of
485	the named insured to discharge when due any of her or his
486	obligations in connection with the payment of premiums on a
487	policy or any installment of such premium, whether the premium
488	is payable directly to the insurer or its agent or indirectly
489	under any premium finance plan or extension of credit, or
490	failure to maintain membership in an organization if such
491	membership is a condition precedent to insurance coverage.
492	"Nonpayment of premium" also means the failure of a financial
493	institution to honor an insurance applicant's check after
494	delivery to a licensed agent for payment of a premium, even if
495	the agent has previously delivered or transferred the premium to
496	the insurer. If a dishonored check represents the initial
497	premium payment, the contract and all contractual obligations
498	shall be void ab initio unless the nonpayment is cured within
499	the earlier of 5 days after actual notice by certified mail is
500	received by the applicant or 15 days after notice is sent to the
501	applicant by certified mail or registered mail, and if the
502	contract is void, any premium received by the insurer from a
503	third party shall be refunded to that party in full; and
504	2.  When such cancellation or termination occurs during the
505	first 90 days during which the insurance is in force and the
506	insurance is canceled or terminated for reasons other than
507	nonpayment of premium, at least 20 days' written notice of
508	cancellation or termination accompanied by the reason therefor
509	shall be given except where there has been a material
510	misstatement or misrepresentation or failure to comply with the
511	underwriting requirements established by the insurer.
512
513	After the policy has been in effect for 90 days, no such policy
514	shall be canceled by the insurer except when there has been a
515	material misstatement, a nonpayment of premium, a failure to
516	comply with underwriting requirements established by the insurer
517	within 90 days of the date of effectuation of coverage, or a
518	substantial change in the risk covered by the policy or when the
519	cancellation is for all insureds under such policies for a given
520	class of insureds. This subsection does not apply to
521	individually rated risks having a policy term of less than 90
522	days.
523	(2)  With respect to any personal lines or commercial
524	residential property insurance policy, including, but not
525	limited to, any homeowner's, mobile home owner's, farmowner's,
526	condominium association, condominium unit owner's, apartment
527	building, or other policy covering a residential structure or
528	its contents:
529	(a)  The insurer shall give the first-named named insured
530	at least 45 days' advance written notice of the renewal premium.
531	(b)  The insurer shall give the first-named named insured
532	written notice of nonrenewal, cancellation, or termination at
533	least 100 days prior to the effective date of the nonrenewal,
534	cancellation, or termination. However, the insurer shall give at
535	least 100 days' written notice, or written notice by June 1,
536	whichever is earlier, for any nonrenewal, cancellation, or
537	termination that would be effective between June 1 and November
538	30. The notice must include the reason or reasons for the
539	nonrenewal, cancellation, or termination, except that:
540	1.  The insurer shall give the first-named named insured
541	written notice of nonrenewal, cancellation, or termination at
542	least 180 days prior to the effective date of the nonrenewal,
543	cancellation, or termination for a first-named named insured
544	whose residential structure has been insured by that insurer or
545	an affiliated insurer for at least a 5-year period immediately
546	prior to the date of the written notice.
547	2.  When cancellation is for nonpayment of premium, at
548	least 10 days' written notice of cancellation accompanied by the
549	reason therefor shall be given. As used in this subparagraph,
550	the term "nonpayment of premium" means failure of the named
551	insured to discharge when due any of her or his obligations in
552	connection with the payment of premiums on a policy or any
553	installment of such premium, whether the premium is payable
554	directly to the insurer or its agent or indirectly under any
555	premium finance plan or extension of credit, or failure to
556	maintain membership in an organization if such membership is a
557	condition precedent to insurance coverage. "Nonpayment of
558	premium" also means the failure of a financial institution to
559	honor an insurance applicant's check after delivery to a
560	licensed agent for payment of a premium, even if the agent has
561	previously delivered or transferred the premium to the insurer.
562	If a dishonored check represents the initial premium payment,
563	the contract and all contractual obligations shall be void ab
564	initio unless the nonpayment is cured within the earlier of 5
565	days after actual notice by certified mail is received by the
566	applicant or 15 days after notice is sent to the applicant by
567	certified mail or registered mail, and if the contract is void,
568	any premium received by the insurer from a third party shall be
569	refunded to that party in full.
570	3.  When such cancellation or termination occurs during the
571	first 90 days during which the insurance is in force and the
572	insurance is canceled or terminated for reasons other than
573	nonpayment of premium, at least 20 days' written notice of
574	cancellation or termination accompanied by the reason therefor
575	shall be given except where there has been a material
576	misstatement or misrepresentation or failure to comply with the
577	underwriting requirements established by the insurer.
578	4.  The requirement for providing written notice of
579	nonrenewal by June 1 of any nonrenewal that would be effective
580	between June 1 and November 30 does not apply to the following
581	situations, but the insurer remains subject to the requirement
582	to provide such notice at least 100 days prior to the effective
583	date of nonrenewal:
584	a.  A policy that is nonrenewed due to a revision in the
585	coverage for sinkhole losses and catastrophic ground cover
586	collapse pursuant to s. 627.706, as amended by s. 30, chapter
587	2007-1, Laws of Florida.
588	b.  A policy that is nonrenewed by Citizens Property
589	Insurance Corporation, pursuant to s. 627.351(6), for a policy
590	that has been assumed by an authorized insurer offering
591	replacement or renewal coverage to the policyholder.
592
593	After the policy has been in effect for 90 days, the policy
594	shall not be canceled by the insurer except when there has been
595	a material misstatement, a nonpayment of premium, a failure to
596	comply with underwriting requirements established by the insurer
597	within 90 days of the date of effectuation of coverage, or a
598	substantial change in the risk covered by the policy or when the
599	cancellation is for all insureds under such policies for a given
600	class of insureds. This paragraph does not apply to individually
601	rated risks having a policy term of less than 90 days.
602	(4)  Notwithstanding the provisions of s. 440.42(3), if
603	cancellation of a policy providing coverage for workers'
604	compensation and employer's liability insurance is requested in
605	writing by the insured, such cancellation shall be effective on
606	the date requested by the insured or, if no date is specified by
607	the insured, cancellation shall be effective on the date of the
608	written request. The carrier is not required to send notice of
609	cancellation to the insured if the cancellation is requested in
610	writing by the insured the carrier sends the notice of
611	cancellation to the insured. Any retroactive assumption of
612	coverage and liabilities under a policy providing workers'
613	compensation and employer's liability insurance may not exceed
614	21 days.
615	Section 8.  Subsection (3) is added to section 627.4137,
616	Florida Statutes, to read:
617	627.4137  Disclosure of certain information required.-
618	(3)  Any request made to a self-insured corporation
619	pursuant to this section shall be sent by certified mail to the
620	registered agent of the disclosing entity.
621	Section 9.  Subsection (2) of section 627.7277, Florida
622	Statutes, is amended to read:
623	627.7277  Notice of renewal premium.-
624	(2)  An insurer shall mail or deliver to the first-named
625	insured its policyholder at least 30 days' advance written
626	notice of the renewal premium for the policy.
627	Section 10.  Paragraph (a) of subsection (3), paragraphs
628	(a) and (d) of subsection (4), and subsections (5) and (6) of
629	section 627.728, Florida Statutes, are amended to read:
630	627.728  Cancellations; nonrenewals.-
631	(3)(a)  No notice of cancellation of a policy to which this
632	section applies shall be effective unless mailed or delivered by
633	the insurer to the first-named named insured and to the first-
634	named named insured's insurance agent at least 45 days prior to
635	the effective date of cancellation, except that, when
636	cancellation is for nonpayment of premium, at least 10 days'
637	notice of cancellation accompanied by the reason therefor shall
638	be given. No notice of cancellation of a policy to which this
639	section applies shall be effective unless the reason or reasons
640	for cancellation accompany the notice of cancellation.
641	(4)(a)  No insurer shall fail to renew a policy unless it
642	mails or delivers to the first-named named insured, at the
643	address shown in the policy, and to the first-named named
644	insured's insurance agent at her or his business address, at
645	least 45 days' advance notice of its intention not to renew; and
646	the reasons for refusal to renew must accompany such notice.
647	This subsection does not apply:
648	1.  If the insurer has manifested its willingness to renew;
649	or
650	2.  In case of nonpayment of premium.
651
652	Notwithstanding the failure of an insurer to comply with this
653	subsection, the policy shall terminate on the effective date of
654	any other automobile liability insurance policy procured by the
655	insured with respect to any automobile designated in both
656	policies. Unless a written explanation for refusal to renew
657	accompanies the notice of intention not to renew, the policy
658	shall remain in full force and effect.
659	(d)  Instead of canceling or nonrenewing a policy, an
660	insurer may, upon expiration of the policy term, transfer a
661	policy to another insurer under the same ownership or management
662	as the transferring insurer, by giving the first-named named
663	insured at least 45 days' advance notice of its intent to
664	transfer the policy and of the premium and the specific reasons
665	for any increase in the premium.
666	(5)  United States postal proof of mailing or certified or
667	registered mailing of notice of cancellation, of intention not
668	to renew, or of reasons for cancellation, or of the intention of
669	the insurer to issue a policy by an insurer under the same
670	ownership or management, to the first-named named insured at the
671	address shown in the policy shall be sufficient proof of notice.
672	(6)  When a policy is canceled, other than for nonpayment
673	of premium, or in the event of failure to renew a policy to
674	which subsection (4) applies, the insurer shall notify the
675	first-named named insured of her or his possible eligibility for
676	insurance through the Automobile Joint Underwriting Association.
677	Such notice shall accompany or be included in the notice of
678	cancellation or the notice of intent not to renew and shall
679	state that such notice of availability of the Automobile Joint
680	Underwriting Association is given pursuant to this section.
681	Section 11.  Section 627.7281, Florida Statutes, is amended
682	to read:
683	627.7281  Cancellation notice.-An insurer issuing a policy
684	of motor vehicle insurance not covered under the cancellation
685	provisions of s. 627.728 shall give the first-named named
686	insured notice of cancellation at least 45 days prior to the
687	effective date of cancellation, except that, when cancellation
688	is for nonpayment of premium, at least 10 days' notice of
689	cancellation accompanied by the reason therefor shall be given.
690	As used in this section, "policy" does not include a binder as
691	defined in s. 627.420 unless the duration of the binder period
692	exceeds 60 days.
693	Section 12.  Section 634.1711, Florida Statutes, is created
694	to read:
695	634.1711  Premium payable.-Notwithstanding ss. 634.1815 and
696	634.282(6), (7), and (13), a consumer may purchase a service
697	agreement for a premium amount negotiated with the salesperson.
698	The service agreement company is responsible for establishing
699	minimum premium rates to ensure its solvency under this part.
700	Other than as stated in this section, no other terms or
701	conditions of the service agreement may be revised, amended, or
702	changed by the salesperson.
703	Section 13.  Section 634.403, Florida Statutes, is amended
704	to read:
705	634.403  License required; exemptions.-
706	(1)  No person in this state shall provide or offer to
707	provide service warranties to residents of this state unless
708	authorized therefor under a subsisting license issued by the
709	office. The service warranty association shall pay to the office
710	a license fee of $200 for such license for each license year, or
711	part thereof, the license is in force.
712	(2)  An insurer, while authorized to transact property or
713	casualty insurance in this state, may also transact a service
714	warranty business without additional qualifications or
715	authority, but shall be otherwise subject to the applicable
716	provisions of this part.
717	(3)  The office may, pursuant to s. 120.569, in its
718	discretion and without advance notice and hearing, issue an
719	immediate final order to cease and desist to any person or
720	entity which violates this section. The Legislature finds that a
721	violation of this section constitutes an imminent and immediate
722	threat to the public health, safety, and welfare of the
723	residents of this state.
724	(4)  Any person that is an affiliate of a domestic insurer
725	as defined in chapter 624 is exempt from application of this
726	part if the person does not issue, or market or cause to be
727	marketed, service warranties to residents of this state and does
728	not administer service warranties that were originally issued to
729	residents of this state. The domestic insurer or its wholly
730	owned Florida licensed insurer must be the direct obligor of all
731	service warranties issued by such affiliate or must issue a
732	contractual liability insurance policy to such affiliate that
733	meets the conditions described in s. 634.406(3). If the Office
734	of Insurance Regulation determines, after notice and opportunity
735	for a hearing, that a person's intentional business practices do
736	not comply with any of the exemption requirements of this
737	subsection, the person shall be subject to this part.
738	(5)  A person is exempt from the license requirement in
739	this section if the person complies with the following:
740	(a)  The service warranties are only sold to nonresidents
741	of this state and the person does not issue, market, or cause to
742	be marketed service warranties to residents of this state and
743	does not administer service warranties that were originally
744	issued to residents of this state.
745	(b)  The person submits a letter of notification that
746	provides the following information to the office upon the start
747	of business from this state and annually thereafter by March 1:
748	1.  The type of products offered and a statement certifying
749	that the products are not regulated in the state in which the
750	person is transacting business or that the person is licensed in
751	the state in which the person is transacting business.
752	2.  The name of the person, the state of domicile, the home
753	address and address in this state of the person, the names of
754	the owners and their percentage of ownership, the names of the
755	officers and directors, the name, e-mail, and telephone number
756	of a contact person, the states in which the person is
757	transacting business, and how many individuals are employed in
758	this state.
759	(c)  If the person ceases to do business from this state,
760	the person shall provide written notification to the office
761	within 30 days after cessation of business.
762	(6)(5)  Any person who provides, offers to provide, or
763	holds oneself out as providing or offering to provide a service
764	warranty to residents of in this state or from this state
765	without holding a subsisting license commits, in addition to any
766	other violation, a misdemeanor of the first degree, punishable
767	as provided in s. 775.082 or s. 775.083.
768	Section 14.  The amendments to s. 626.207, Florida
769	Statutes, made by this act do not apply retroactively and apply
770	only to applicants whose applications are pending or submitted
771	on or after the date that the amendments to s. 626.207, Florida
772	Statutes, made by this act become law. This section shall take
773	effect upon this act becoming a law.
774	Section 15.  Except as otherwise expressly provided in this
775	act and except for this section, which shall take effect upon
776	this act becoming a law, this act shall take effect July 1,
777	2011.

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