Florida Senate - 2013 COMMITTEE AMENDMENT
Bill No. SB 1046
Barcode 457546
LEGISLATIVE ACTION
Senate . House
Comm: RS .
04/02/2013 .
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The Committee on Banking and Insurance (Hays) recommended the
following:
1 Senate Amendment (with title amendment)
2
3 Delete everything after the enacting clause
4 and insert:
5 Section 1. Paragraph (b) of subsection (6) of section
6 215.555, Florida Statutes, is amended to read:
7 215.555 Florida Hurricane Catastrophe Fund.—
8 (6) REVENUE BONDS.—
9 (b) Emergency assessments.—
10 1. If the board determines that the amount of revenue
11 produced under subsection (5) is insufficient to fund the
12 obligations, costs, and expenses of the fund and the
13 corporation, including repayment of revenue bonds and that
14 portion of the debt service coverage not met by reimbursement
15 premiums, the board shall direct the Office of Insurance
16 Regulation to levy, by order, an emergency assessment on direct
17 premiums for all property and casualty lines of business in this
18 state, including property and casualty business of surplus lines
19 insurers regulated under part VIII of chapter 626, but not
20 including any workers’ compensation premiums or medical
21 malpractice premiums. As used in this subsection, the term
22 “property and casualty business” includes all lines of business
23 identified on Form 2, Exhibit of Premiums and Losses, in the
24 annual statement required of authorized insurers by s. 624.424
25 and any rule adopted under this section, except for those lines
26 identified as accident and health insurance and except for
27 policies written under the National Flood Insurance Program. The
28 assessment shall be specified as a percentage of direct written
29 premium and is subject to annual adjustments by the board in
30 order to meet debt obligations. The same percentage shall apply
31 to all policies in lines of business subject to the assessment
32 issued or renewed during the 12-month period beginning on the
33 effective date of the assessment.
34 2. A premium is not subject to an annual assessment under
35 this paragraph in excess of 6 percent of premium with respect to
36 obligations arising out of losses attributable to any one
37 contract year, and a premium is not subject to an aggregate
38 annual assessment under this paragraph in excess of 10 percent
39 of premium. An annual assessment under this paragraph shall
40 continue as long as the revenue bonds issued with respect to
41 which the assessment was imposed are outstanding, including any
42 bonds the proceeds of which were used to refund the revenue
43 bonds, unless adequate provision has been made for the payment
44 of the bonds under the documents authorizing issuance of the
45 bonds.
46 3. Emergency assessments shall be collected from
47 policyholders. Emergency assessments shall be remitted by
48 insurers as a percentage of direct written premium for the
49 preceding calendar quarter as specified in the order from the
50 Office of Insurance Regulation. The office shall verify the
51 accurate and timely collection and remittance of emergency
52 assessments and shall report the information to the board in a
53 form and at a time specified by the board. Each insurer
54 collecting assessments shall provide the information with
55 respect to premiums and collections as may be required by the
56 office to enable the office to monitor and verify compliance
57 with this paragraph.
58 4. With respect to assessments of surplus lines premiums,
59 each surplus lines agent shall collect the assessment at the
60 same time as the agent collects the surplus lines tax required
61 by s. 626.932, and the surplus lines agent shall remit the
62 assessment to the Florida Surplus Lines Service Office created
63 by s. 626.921 at the same time as the agent remits the surplus
64 lines tax to the Florida Surplus Lines Service Office. The
65 emergency assessment on each insured procuring coverage and
66 filing under s. 626.938 shall be remitted by the insured to the
67 Florida Surplus Lines Service Office at the time the insured
68 pays the surplus lines tax to the Florida Surplus Lines Service
69 Office. The Florida Surplus Lines Service Office shall remit the
70 collected assessments to the fund or corporation as provided in
71 the order levied by the Office of Insurance Regulation. The
72 Florida Surplus Lines Service Office shall verify the proper
73 application of such emergency assessments and shall assist the
74 board in ensuring the accurate and timely collection and
75 remittance of assessments as required by the board. The Florida
76 Surplus Lines Service Office shall annually calculate the
77 aggregate written premium on property and casualty business,
78 other than workers’ compensation and medical malpractice,
79 procured through surplus lines agents and insureds procuring
80 coverage and filing under s. 626.938 and shall report the
81 information to the board in a form and at a time specified by
82 the board.
83 5. Any assessment authority not used for a particular
84 contract year may be used for a subsequent contract year. If,
85 for a subsequent contract year, the board determines that the
86 amount of revenue produced under subsection (5) is insufficient
87 to fund the obligations, costs, and expenses of the fund and the
88 corporation, including repayment of revenue bonds and that
89 portion of the debt service coverage not met by reimbursement
90 premiums, the board shall direct the Office of Insurance
91 Regulation to levy an emergency assessment up to an amount not
92 exceeding the amount of unused assessment authority from a
93 previous contract year or years, plus an additional 4 percent
94 provided that the assessments in the aggregate do not exceed the
95 limits specified in subparagraph 2.
96 6. The assessments otherwise payable to the corporation
97 under this paragraph shall be paid to the fund unless and until
98 the Office of Insurance Regulation and the Florida Surplus Lines
99 Service Office have received from the corporation and the fund a
100 notice, which shall be conclusive and upon which they may rely
101 without further inquiry, that the corporation has issued bonds
102 and the fund has no agreements in effect with local governments
103 under paragraph (c). On or after the date of the notice and
104 until the date the corporation has no bonds outstanding, the
105 fund shall have no right, title, or interest in or to the
106 assessments, except as provided in the fund’s agreement with the
107 corporation.
108 7. Emergency assessments are not premium and are not
109 subject to the premium tax, to the surplus lines tax, to any
110 fees, or to any commissions. An insurer is liable for all
111 assessments that it collects and must treat the failure of an
112 insured to pay an assessment as a failure to pay the premium. An
113 insurer is not liable for uncollectible assessments.
114 8. When an insurer is required to return an unearned
115 premium, it shall also return any collected assessment
116 attributable to the unearned premium. A credit adjustment to the
117 collected assessment may be made by the insurer with regard to
118 future remittances that are payable to the fund or corporation,
119 but the insurer is not entitled to a refund.
120 9. When a surplus lines insured or an insured who has
121 procured coverage and filed under s. 626.938 is entitled to the
122 return of an unearned premium, the Florida Surplus Lines Service
123 Office shall provide a credit or refund to the agent or such
124 insured for the collected assessment attributable to the
125 unearned premium before prior to remitting the emergency
126 assessment collected to the fund or corporation.
127 10. The exemption of medical malpractice insurance premiums
128 from emergency assessments under this paragraph is repealed May
129 31, 2013, and medical malpractice insurance premiums shall be
130 subject to emergency assessments attributable to loss events
131 occurring in the contract years commencing on June 1, 2013.
132 Section 2. Subsection (1) of section 316.646, Florida
133 Statutes, is amended, and subsection (5) is added to that
134 section, to read:
135 316.646 Security required; proof of security and display
136 thereof; dismissal of cases.—
137 (1) Any person required by s. 324.022 to maintain property
138 damage liability security, required by s. 324.023 to maintain
139 liability security for bodily injury or death, or required by s.
140 627.733 to maintain personal injury protection security on a
141 motor vehicle shall have in his or her immediate possession at
142 all times while operating such motor vehicle proper proof of
143 maintenance of the required security. Such proof shall be a
144 uniform proof-of-insurance card, in paper or electronic format,
145 in a form prescribed by the department, a valid insurance
146 policy, an insurance policy binder, a certificate of insurance,
147 or such other proof as may be prescribed by the department. If a
148 person presents an electronic device to a law enforcement
149 officer for the purpose of displaying a proof-of-insurance card
150 in an electronic format:
151 (a) The person presenting the device is not deemed to
152 consent to access to any information on the electronic device
153 other than the displayed proof-of-insurance card.
154 (b) The law enforcement officer is not liable for any
155 damage to the electronic device.
156 (5) The department may adopt rules to implement this
157 section.
158 Section 3. Paragraph (a) of subsection (5) of section
159 320.02, Florida Statutes, is amended to read:
160 320.02 Registration required; application for registration;
161 forms.—
162 (5)(a) Proof that personal injury protection benefits have
163 been purchased when required under s. 627.733, that property
164 damage liability coverage has been purchased as required under
165 s. 324.022, that bodily injury or death coverage has been
166 purchased if required under s. 324.023, and that combined bodily
167 liability insurance and property damage liability insurance have
168 been purchased when required under s. 627.7415 shall be provided
169 in the manner prescribed by law by the applicant at the time of
170 application for registration of any motor vehicle that is
171 subject to such requirements. The issuing agent shall refuse to
172 issue registration if such proof of purchase is not provided.
173 Insurers shall furnish uniform proof-of-purchase cards, in paper
174 or electronic format, in a form prescribed by the department and
175 shall include the name of the insured’s insurance company, the
176 coverage identification number, and the make, year, and vehicle
177 identification number of the vehicle insured. The card shall
178 contain a statement notifying the applicant of the penalty
179 specified in s. 316.646(4). The card or insurance policy,
180 insurance policy binder, or certificate of insurance or a
181 photocopy of any of these; an affidavit containing the name of
182 the insured’s insurance company, the insured’s policy number,
183 and the make and year of the vehicle insured; or such other
184 proof as may be prescribed by the department shall constitute
185 sufficient proof of purchase. If an affidavit is provided as
186 proof, it shall be in substantially the following form:
187
188 Under penalty of perjury, I ...(Name of insured)... do hereby
189 certify that I have ...(Personal Injury Protection, Property
190 Damage Liability, and, when required, Bodily Injury
191 Liability)... Insurance currently in effect with ...(Name of
192 insurance company)... under ...(policy number)... covering
193 ...(make, year, and vehicle identification number of
194 vehicle).... ...(Signature of Insured)...
195
196 Such affidavit shall include the following warning:
197
198 WARNING: GIVING FALSE INFORMATION IN ORDER TO OBTAIN A VEHICLE
199 REGISTRATION CERTIFICATE IS A CRIMINAL OFFENSE UNDER FLORIDA
200 LAW. ANYONE GIVING FALSE INFORMATION ON THIS AFFIDAVIT IS
201 SUBJECT TO PROSECUTION.
202
203 When an application is made through a licensed motor vehicle
204 dealer as required in s. 319.23, the original or a photostatic
205 copy of such card, insurance policy, insurance policy binder, or
206 certificate of insurance or the original affidavit from the
207 insured shall be forwarded by the dealer to the tax collector of
208 the county or the Department of Highway Safety and Motor
209 Vehicles for processing. By executing the aforesaid affidavit,
210 no licensed motor vehicle dealer will be liable in damages for
211 any inadequacy, insufficiency, or falsification of any statement
212 contained therein. A card shall also indicate the existence of
213 any bodily injury liability insurance voluntarily purchased.
214 Section 4. Subsection (8) is added to section 554.1021,
215 Florida Statutes, to read:
216 554.1021 Definitions.—As used in ss. 554.1011-554.115:
217 (8) “Authorized inspection agency” means:
218 (a) Any county, city, town, or other governmental
219 subdivision that has adopted and administers, at a minimum,
220 Section I of the A.S.M.E. Boiler and Pressure Vessel Code as a
221 legal requirement and whose inspectors hold valid certificates
222 of competency in accordance with s. 554.113; or
223 (b) Any insurance company that is licensed or registered by
224 an appropriate authority of any state of the United States or
225 province of Canada and whose inspectors hold valid certificates
226 of competency in accordance with s. 554.113.
227 Section 5. Section 554.107, Florida Statutes, is amended to
228 read:
229 554.107 Special inspectors.—
230 (1) Upon application by any authorized inspection agency
231 company licensed to insure boilers in this state, the chief
232 inspector shall issue a certificate of competency as a special
233 inspector to any inspector employed by the authorized inspection
234 agency company, provided that such inspector satisfies the
235 competency requirements for inspectors as provided in s.
236 554.113.
237 (2) The certificate of competency of a special inspector
238 shall remain in effect only so long as the special inspector is
239 employed by an authorized inspection agency a company licensed
240 to insure boilers in this state. Upon termination of employment
241 with such agency company, a special inspector shall, in writing,
242 notify the chief inspector of such termination. Such notice
243 shall be given within 15 days following the date of termination.
244 Section 6. Subsection (1) of section 554.109, Florida
245 Statutes, is amended to read:
246 554.109 Exemptions.—
247 (1) Any insurance company insuring a boiler located in a
248 public assembly location in this state shall inspect or contract
249 with an authorized inspection agency to inspect such boiler so
250 insured, and shall annually report to the department the
251 identity of any authorized inspection agency performing any
252 required boiler inspection on behalf of the company. A any
253 county, city, town, or other governmental subdivision that which
254 has adopted into law the Boiler and Pressure Vessel Code of the
255 American Society of Mechanical Engineers and the National Board
256 Inspection Code for the construction, installation, inspection,
257 maintenance, and repair of boilers, regulating such boilers in
258 public assembly locations, shall inspect such boilers so
259 regulated; provided that such inspection shall be conducted by a
260 special inspector licensed pursuant to ss. 554.1011-554.115.
261 Upon filing of a report of satisfactory inspection with the
262 department, such boiler is exempt from inspection by the
263 department.
264 Section 7. Paragraph (f) of subsection (1) of section
265 624.413, Florida Statutes, is amended to read:
266 624.413 Application for certificate of authority.—
267 (1) To apply for a certificate of authority, an insurer
268 shall file its application therefor with the office, upon a form
269 adopted by the commission and furnished by the office, showing
270 its name; location of its home office and, if an alien insurer,
271 its principal office in the United States; kinds of insurance to
272 be transacted; state or country of domicile; and such additional
273 information as the commission reasonably requires, together with
274 the following documents:
275 (f) If a foreign or alien insurer, a copy of the report of
276 the most recent examination of the insurer certified by the
277 public official having supervision of insurance in its state of
278 domicile or of entry into the United States. The end of the most
279 recent year covered by the examination must be within the 5-year
280 3-year period preceding the date of application. In lieu of the
281 certified examination report, the office may accept an audited
282 certified public accountant’s report prepared on a basis
283 consistent with the insurance laws of the insurer’s state of
284 domicile, certified by the public official having supervision of
285 insurance in its state of domicile or of entry into the United
286 States.
287 Section 8. Subsection (4) is added to section 626.0428,
288 Florida Statutes, to read:
289 626.0428 Agency personnel powers, duties, and limitations.—
290 (4)(a) Each place of business established by an agent or
291 agency, firm, corporation, or association shall be in the active
292 full-time charge of a licensed and appointed agent holding the
293 required agent licenses to transact the lines of insurance being
294 handled at the location.
295 (b) Notwithstanding paragraph (a), the licensed agent in
296 charge of an insurance agency may also be the agent in charge of
297 additional branch office locations of the agency if insurance
298 activities requiring licensure as an insurance agent do not
299 occur at any location when the agent is not physically present
300 and unlicensed employees at the location do not engage in any
301 insurance activities requiring licensure as an insurance agent
302 or customer representative.
303 (c) An insurance agency and each branch place of business
304 of an insurance agency shall designate an agent in charge and
305 file the name and license number of the agent in charge and the
306 physical address of the insurance agency location with the
307 department at the department’s designated website. The
308 designation of the agent in charge may be changed at the option
309 of the agency, and any change shall be effective upon
310 notification to the department. Notice to the department must be
311 provided within 30 days after such change.
312 (d) For the purposes of this subsection, an “agent in
313 charge” is the licensed and appointed agent who is responsible
314 for the supervision of all individuals within an insurance
315 agency location, regardless of whether such individuals deal
316 with the general public in the solicitation or negotiation of
317 insurance contracts or the collection or accounting of moneys.
318 (e) An agent in charge of an insurance agency is
319 accountable for any wrongful acts, misconduct, or violations of
320 provisions of this code committed by the agent or by any person
321 under his or her supervision while acting on behalf of the
322 agency. This section may not be construed to render the agent in
323 charge criminally liable for an act unless he or she personally
324 committed or knew or should have known of the act and of the
325 facts constituting a violation of this chapter.
326 (f) An insurance agency location may not conduct the
327 business of insurance unless the agency designates an agent in
328 charge at all times. If the agency fails to update the
329 designation of the agent in charge within 90 days after the date
330 of a change in designation, the department shall automatically
331 revoke the agency’s license.
332 Section 9. Subsection (7) of section 626.112, Florida
333 Statutes, is amended to read:
334 626.112 License and appointment required; agents, customer
335 representatives, adjusters, insurance agencies, service
336 representatives, managing general agents.—
337 (7)(a) Effective October 1, 2006, No individual, firm,
338 partnership, corporation, association, or any other entity shall
339 act in its own name or under a trade name, directly or
340 indirectly, as an insurance agency, unless it complies with s.
341 626.172 with respect to possessing an insurance agency license
342 for each place of business at which it engages in any activity
343 which may be performed only by a licensed insurance agent.
344 However, an insurance agency that is owned and operated by a
345 single licensed agent conducting business in his or her
346 individual name and not employing or otherwise using the
347 services of or appointing other licensees shall be exempt from
348 the agency licensing requirements of this subsection. A branch
349 place of business that is established by a licensed agency is
350 considered a branch agency and is not required to be licensed so
351 long as it transacts business under the same name and federal
352 tax identification number as the licensed agency and has
353 designated a licensed agent in charge of the location as
354 required by s. 626.0428 and the address and telephone number of
355 the location have been submitted to the department for inclusion
356 in the licensing record of the licensed agency within 30 days
357 after insurance transactions begin at the location Each agency
358 engaged in business in this state before January 1, 2003, which
359 is wholly owned by insurance agents currently licensed and
360 appointed under this chapter, each incorporated agency whose
361 voting shares are traded on a securities exchange, each agency
362 designated and subject to supervision and inspection as a branch
363 office under the rules of the National Association of Securities
364 Dealers, and each agency whose primary function is offering
365 insurance as a service or member benefit to members of a
366 nonprofit corporation may file an application for registration
367 in lieu of licensure in accordance with s. 626.172(3). Each
368 agency engaged in business before October 1, 2006, shall file an
369 application for licensure or registration on or before October
370 1, 2006.
371 (b)1. If an agency is required to be licensed but fails to
372 file an application for licensure in accordance with this
373 section, the department shall impose on the agency an
374 administrative penalty in an amount of up to $10,000.
375 2. If an agency is eligible for registration but fails to
376 file an application for registration or an application for
377 licensure in accordance with this section, the department shall
378 impose on the agency an administrative penalty in an amount of
379 up to $5,000.
380 (c)(b) Effective October 1, 2013, the department must
381 automatically convert the registration of an approved a
382 registered insurance agency to shall, as a condition precedent
383 to continuing business, obtain an insurance agency license if
384 the department finds that, with respect to any majority owner,
385 partner, manager, director, officer, or other person who manages
386 or controls the agency, any person has:
387 1. Been found guilty of, or has pleaded guilty or nolo
388 contendere to, a felony in this state or any other state
389 relating to the business of insurance or to an insurance agency,
390 without regard to whether a judgment of conviction has been
391 entered by the court having jurisdiction of the cases.
392 2. Employed any individual in a managerial capacity or in a
393 capacity dealing with the public who is under an order of
394 revocation or suspension issued by the department. An insurance
395 agency may request, on forms prescribed by the department,
396 verification of any person’s license status. If a request is
397 mailed within 5 working days after an employee is hired, and the
398 employee’s license is currently suspended or revoked, the agency
399 shall not be required to obtain a license, if the unlicensed
400 person’s employment is immediately terminated.
401 3. Operated the agency or permitted the agency to be
402 operated in violation of s. 626.747.
403 4. With such frequency as to have made the operation of the
404 agency hazardous to the insurance-buying public or other
405 persons:
406 a. Solicited or handled controlled business. This
407 subparagraph shall not prohibit the licensing of any lending or
408 financing institution or creditor, with respect to insurance
409 only, under credit life or disability insurance policies of
410 borrowers from the institutions, which policies are subject to
411 part IX of chapter 627.
412 b. Misappropriated, converted, or unlawfully withheld
413 moneys belonging to insurers, insureds, beneficiaries, or others
414 and received in the conduct of business under the license.
415 c. Unlawfully rebated, attempted to unlawfully rebate, or
416 unlawfully divided or offered to divide commissions with
417 another.
418 d. Misrepresented any insurance policy or annuity contract,
419 or used deception with regard to any policy or contract, done
420 either in person or by any form of dissemination of information
421 or advertising.
422 e. Violated any provision of this code or any other law
423 applicable to the business of insurance in the course of dealing
424 under the license.
425 f. Violated any lawful order or rule of the department.
426 g. Failed or refused, upon demand, to pay over to any
427 insurer he or she represents or has represented any money coming
428 into his or her hands belonging to the insurer.
429 h. Violated the provision against twisting as defined in s.
430 626.9541(1)(l).
431 i. In the conduct of business, engaged in unfair methods of
432 competition or in unfair or deceptive acts or practices, as
433 prohibited under part IX of this chapter.
434 j. Willfully overinsured any property insurance risk.
435 k. Engaged in fraudulent or dishonest practices in the
436 conduct of business arising out of activities related to
437 insurance or the insurance agency.
438 l. Demonstrated lack of fitness or trustworthiness to
439 engage in the business of insurance arising out of activities
440 related to insurance or the insurance agency.
441 m. Authorized or knowingly allowed individuals to transact
442 insurance who were not then licensed as required by this code.
443 5. Knowingly employed any person who within the preceding 3
444 years has had his or her relationship with an agency terminated
445 in accordance with paragraph (d).
446 6. Willfully circumvented the requirements or prohibitions
447 of this code.
448 Section 10. Subsections (2), (3), and (4) of section
449 626.172, Florida Statutes, are amended to read:
450 626.172 Application for insurance agency license.—
451 (2) An application for an insurance agency license must
452 shall be signed by the owner or owners of the agency. If the
453 agency is incorporated, the application must shall be signed by
454 the president and secretary of the corporation. The application
455 for an insurance agency license must shall include:
456 (a) The name of each majority owner, partner, officer, and
457 director of the insurance agency.
458 (b) The residence address of each person required to be
459 listed in the application under paragraph (a).
460 (c) The name of the insurance agency, and its principal
461 business street address and a valid e-mail address of the
462 insurance agency.
463 (d) The physical address location of each branch agency,
464 including its name, e-mail address, and telephone number and the
465 date that the branch location began transacting insurance office
466 and the name under which each agency office conducts or will
467 conduct business.
468 (e) The name of each agent to be in full-time charge of an
469 agency office and specification of which office, including
470 branch locations.
471 (f) The fingerprints of each of the following:
472 1. A sole proprietor;
473 2. Each partner;
474 3. Each owner of an unincorporated agency;
475 4. Each owner who directs or participates in the management
476 or control of an incorporated agency whose shares are not traded
477 on a securities exchange;
478 5. The president, senior vice presidents, treasurer,
479 secretary, and directors of the agency; and
480 6. Any other person who directs or participates in the
481 management or control of the agency, whether through the
482 ownership of voting securities, by contract, by ownership of any
483 agency bank accounts, or otherwise.
484
485 Fingerprints must be taken by a law enforcement agency or other
486 entity approved by the department and must be accompanied by the
487 fingerprint processing fee specified in s. 624.501. Fingerprints
488 must shall be processed in accordance with s. 624.34. However,
489 fingerprints need not be filed for any individual who is
490 currently licensed and appointed under this chapter. This
491 paragraph does not apply to corporations whose voting shares are
492 traded on a securities exchange.
493 (g) Such additional information as the department requires
494 by rule to ascertain the trustworthiness and competence of
495 persons required to be listed on the application and to
496 ascertain that such persons meet the requirements of this code.
497 However, the department may not require that credit or character
498 reports be submitted for persons required to be listed on the
499 application.
500 (h) Beginning October 1, 2005, The department must shall
501 accept the uniform application for nonresident agency licensure.
502 The department may adopt by rule revised versions of the uniform
503 application.
504 (3) The department shall issue a registration as an
505 insurance agency to any agency that files a written application
506 with the department and qualifies for registration. The
507 application for registration shall require the agency to provide
508 the same information required for an agency licensed under
509 subsection (2), the agent identification number for each owner
510 who is a licensed agent, proof that the agency qualifies for
511 registration as provided in s. 626.112(7), and any other
512 additional information that the department determines is
513 necessary in order to demonstrate that the agency qualifies for
514 registration. The application must be signed by the owner or
515 owners of the agency. If the agency is incorporated, the
516 application must be signed by the president and the secretary of
517 the corporation. An agent who owns the agency need not file
518 fingerprints with the department if the agent obtained a license
519 under this chapter and the license is currently valid.
520 (a) If an application for registration is denied, the
521 agency must file an application for licensure no later than 30
522 days after the date of the denial of registration.
523 (b) A registered insurance agency must file an application
524 for licensure no later than 30 days after the date that any
525 person who is not a licensed and appointed agent in this state
526 acquires any ownership interest in the agency. If an agency
527 fails to file an application for licensure in compliance with
528 this paragraph, the department shall impose an administrative
529 penalty in an amount of up to $5,000 on the agency.
530 (c) Sections 626.6115 and 626.6215 do not apply to agencies
531 registered under this subsection.
532 (3)(4) The department must shall issue a license or
533 registration to each agency upon approval of the application,
534 and each agency location must shall display the license or
535 registration prominently in a manner that makes it clearly
536 visible to any customer or potential customer who enters the
537 agency.
538 Section 11. Paragraph (d) of subsection (1) of section
539 626.321, Florida Statutes, is amended to read:
540 626.321 Limited licenses.—
541 (1) The department shall issue to a qualified applicant a
542 license as agent authorized to transact a limited class of
543 business in any of the following categories of limited lines
544 insurance:
545 (d) Motor vehicle rental insurance.—
546 1. License covering only insurance of the risks set forth
547 in this paragraph when offered, sold, or solicited with and
548 incidental to the rental or lease of a motor vehicle and which
549 applies only to the motor vehicle that is the subject of the
550 lease or rental agreement and the occupants of the motor
551 vehicle:
552 a. Excess motor vehicle liability insurance providing
553 coverage in excess of the standard liability limits provided by
554 the lessor in the lessor’s lease to a person renting or leasing
555 a motor vehicle from the licensee’s employer for liability
556 arising in connection with the negligent operation of the leased
557 or rented motor vehicle.
558 b. Insurance covering the liability of the lessee to the
559 lessor for damage to the leased or rented motor vehicle.
560 c. Insurance covering the loss of or damage to baggage,
561 personal effects, or travel documents of a person renting or
562 leasing a motor vehicle.
563 d. Insurance covering accidental personal injury or death
564 of the lessee and any passenger who is riding or driving with
565 the covered lessee in the leased or rented motor vehicle.
566 2. Insurance under a motor vehicle rental insurance license
567 may be issued only if the lease or rental agreement is for no
568 more than 60 days, the lessee is not provided coverage for more
569 than 60 consecutive days per lease period, and the lessee is
570 given written notice that his or her personal insurance policy
571 providing coverage on an owned motor vehicle may provide
572 coverage of such risks and that the purchase of the insurance is
573 not required in connection with the lease or rental of a motor
574 vehicle. If the lease is extended beyond 60 days, the coverage
575 may be extended one time only for a period not to exceed an
576 additional 60 days. Insurance may be provided to the lessee as
577 an additional insured on a policy issued to the licensee’s
578 employer.
579 3. The license may be issued only to the full-time salaried
580 employee of a licensed general lines agent or to a business
581 entity that offers motor vehicles for rent or lease if insurance
582 sales activities authorized by the license are in connection
583 with and incidental to the rental or lease of a motor vehicle.
584 a. A license issued to a business entity that offers motor
585 vehicles for rent or lease encompasses each office, branch
586 office, employee, or place of business making use of the
587 entity’s business name in order to offer, solicit, and sell
588 insurance pursuant to this paragraph.
589 b. The application for licensure must list the name,
590 address, and phone number for each office, branch office, or
591 place of business that is to be covered by the license. The
592 licensee shall notify the department of the name, address, and
593 phone number of any new location that is to be covered by the
594 license before the new office, branch office, or place of
595 business engages in the sale of insurance pursuant to this
596 paragraph. The licensee must notify the department within 30
597 days after closing or terminating an office, branch office, or
598 place of business. Upon receipt of the notice, the department
599 shall delete the office, branch office, or place of business
600 from the license.
601 c. A licensed and appointed entity is directly responsible
602 and accountable for all acts of the licensee’s employees.
603 Section 12. Section 626.382, Florida Statutes, is amended
604 to read:
605 626.382 Continuation, expiration of license; insurance
606 agencies.—The license of any insurance agency shall be issued
607 for a period of 3 years and shall continue in force until
608 canceled, suspended, revoked, or otherwise terminated. A license
609 may be renewed by submitting a renewal request to the department
610 on a form adopted by department rule.
611 Section 13. Section 626.601, Florida Statutes, is amended
612 to read:
613 626.601 Improper conduct; inquiry; fingerprinting.—
614 (1) The department or office may, upon its own motion or
615 upon a written complaint signed by any interested person and
616 filed with the department or office, inquire into any alleged
617 improper conduct of any licensed, approved, or certified
618 insurance agency, agent, adjuster, service representative,
619 managing general agent, customer representative, title insurance
620 agent, title insurance agency, mediator, neutral evaluator,
621 continuing education course provider, instructor, school
622 official, or monitor group under this code. The department or
623 office may thereafter initiate an investigation of any such
624 individual or entity licensee if it has reasonable cause to
625 believe that the individual or entity licensee has violated any
626 provision of the insurance code. During the course of its
627 investigation, the department or office shall contact the
628 individual or entity licensee being investigated unless it
629 determines that contacting such individual or entity person
630 could jeopardize the successful completion of the investigation
631 or cause injury to the public.
632 (2) In the investigation by the department or office of the
633 alleged misconduct, the individual or entity licensee shall,
634 whenever so required by the department or office, cause the
635 individual’s or entity’s his or her books and records to be open
636 for inspection for the purpose of such inquiries.
637 (3) The complaints against any individual or entity
638 licensee may be informally alleged and need not be in any such
639 language as is necessary to charge a crime on an indictment or
640 information.
641 (4) The expense for any hearings or investigations under
642 this law, as well as the fees and mileage of witnesses, may be
643 paid out of the appropriate fund.
644 (5) If the department or office, after investigation, has
645 reason to believe that an individual a licensee may have been
646 found guilty of or pleaded guilty or nolo contendere to a felony
647 or a crime related to the business of insurance in this or any
648 other state or jurisdiction, the department or office may
649 require the individual licensee to file with the department or
650 office a complete set of his or her fingerprints, which shall be
651 accompanied by the fingerprint processing fee set forth in s.
652 624.501. The fingerprints shall be taken by an authorized law
653 enforcement agency or other department-approved entity.
654 (6) The complaint and any information obtained pursuant to
655 the investigation by the department or office are confidential
656 and are exempt from the provisions of s. 119.07, unless the
657 department or office files a formal administrative complaint,
658 emergency order, or consent order against the individual or
659 entity licensee. Nothing in This subsection does not shall be
660 construed to prevent the department or office from disclosing
661 the complaint or such information as it deems necessary to
662 conduct the investigation, to update the complainant as to the
663 status and outcome of the complaint, or to share such
664 information with any law enforcement agency.
665 Section 14. Section 626.747, Florida Statutes, is repealed.
666 Section 15. Paragraph (b) of subsection (1) of section
667 626.8411, Florida Statutes, is amended to read:
668 626.8411 Application of Florida Insurance Code provisions
669 to title insurance agents or agencies.—
670 (1) The following provisions of part II applicable to
671 general lines agents or agencies also apply to title insurance
672 agents or agencies:
673 (b) Section 626.0428(4)(a) and (b) 626.747, relating to
674 branch agencies.
675 Section 16. Subsection (1) of section 626.9914, Florida
676 Statutes, is amended to read:
677 626.9914 Suspension, revocation, denial, or nonrenewal of
678 viatical settlement provider license; grounds; administrative
679 fine.—
680 (1) The office shall suspend, revoke, deny, or refuse to
681 renew the license of any viatical settlement provider if the
682 office finds that the licensee:
683 (a) Has made a misrepresentation in the application for the
684 license;
685 (b) Has engaged in fraudulent or dishonest practices, or
686 otherwise has been shown to be untrustworthy or incompetent to
687 act as a viatical settlement provider;
688 (c) Demonstrates a pattern of unreasonable payments to
689 viators;
690 (d) Has been found guilty of, or has pleaded guilty or nolo
691 contendere to, any felony, or a misdemeanor involving fraud or
692 moral turpitude, regardless of whether a judgment of conviction
693 has been entered by the court;
694 (e) Has issued viatical settlement contracts that have not
695 been approved pursuant to this act;
696 (f) Has failed to honor contractual obligations related to
697 the business of viatical settlement contracts;
698 (g) Deals in bad faith with viators;
699 (h) Has violated any provision of the insurance code or of
700 this act;
701 (i) Employs any person who materially influences the
702 licensee’s conduct and who fails to meet the requirements of
703 this act; or
704 (j) No longer meets the requirements for initial licensure;
705 or
706 (k) Obtains or utilizes life expectancies from life
707 expectancy providers who are not registered with the office
708 pursuant to this act.
709 Section 17. Section 626.99175, Florida Statutes, is
710 repealed.
711 Section 18. Section 626.9919, Florida Statutes, is amended
712 to read:
713 626.9919 Notice of change of licensee or registrant’s
714 address or name.—Each viatical settlement provider licensee and
715 registered life expectancy provider must provide the office at
716 least 30 days’ advance notice of any change in the licensee’s or
717 registrant’s name, residence address, principal business
718 address, or mailing address.
719 Section 19. Section 626.992, Florida Statutes, is amended
720 to read:
721 626.992 Use of licensed viatical settlement providers and,
722 viatical settlement brokers, and registered life expectancy
723 providers required.—
724 (1) A licensed viatical settlement provider may not use any
725 person to perform the functions of a viatical settlement broker
726 as defined in this act unless such person holds a current, valid
727 life agent license and has appointed himself or herself in
728 conformance with this chapter.
729 (2) A viatical settlement broker may not use any person to
730 perform the functions of a viatical settlement provider as
731 defined in this act unless such person holds a current, valid
732 license as a viatical settlement provider.
733 (3) After July 1, 2006, a person may not operate as a life
734 expectancy provider unless such person is registered as a life
735 expectancy provider pursuant to this act.
736 (4) After July 1, 2006, a viatical settlement provider,
737 viatical settlement broker, or any other person in the business
738 of viatical settlements may not obtain life expectancies from a
739 person who is not registered as a life expectancy provider
740 pursuant to this act.
741 Section 20. Section 626.9925, Florida Statutes, is amended
742 to read:
743 626.9925 Rules.—The commission may adopt rules to
744 administer this act, including rules establishing standards for
745 evaluating advertising by licensees; rules providing for the
746 collection of data, for disclosures to viators, and for the
747 reporting of life expectancies, and for the registration of life
748 expectancy providers; and rules defining terms used in this act
749 and prescribing recordkeeping requirements relating to executed
750 viatical settlement contracts.
751 Section 21. Section 626.99278, Florida Statutes, is amended
752 to read:
753 626.99278 Viatical provider anti-fraud plan.—Every licensed
754 viatical settlement provider and registered life expectancy
755 provider must adopt an anti-fraud plan and file it with the
756 Division of Insurance Fraud of the department. Each anti-fraud
757 plan shall include:
758 (1) A description of the procedures for detecting and
759 investigating possible fraudulent acts and procedures for
760 resolving material inconsistencies between medical records and
761 insurance applications.
762 (2) A description of the procedures for the mandatory
763 reporting of possible fraudulent insurance acts and prohibited
764 practices set forth in s. 626.99275 to the Division of Insurance
765 Fraud of the department.
766 (3) A description of the plan for anti-fraud education and
767 training of its underwriters or other personnel.
768 (4) A written description or chart outlining the
769 organizational arrangement of the anti-fraud personnel who are
770 responsible for the investigation and reporting of possible
771 fraudulent insurance acts and for the investigation of
772 unresolved material inconsistencies between medical records and
773 insurance applications.
774 (5) For viatical settlement providers, a description of the
775 procedures used to perform initial and continuing review of the
776 accuracy of life expectancies used in connection with a viatical
777 settlement contract or viatical settlement investment.
778 Section 22. Paragraph (b) of subsection (2) of section
779 627.062, Florida Statutes, is amended to read:
780 627.062 Rate standards.—
781 (2) As to all such classes of insurance:
782 (b) Upon receiving a rate filing, the office shall review
783 the filing to determine if a rate is excessive, inadequate, or
784 unfairly discriminatory. In making that determination, the
785 office shall, in accordance with generally accepted and
786 reasonable actuarial techniques, consider the following factors:
787 1. Past and prospective loss experience within and without
788 this state.
789 2. Past and prospective expenses.
790 3. The degree of competition among insurers for the risk
791 insured.
792 4. Investment income reasonably expected by the insurer,
793 consistent with the insurer’s investment practices, from
794 investable premiums anticipated in the filing, plus any other
795 expected income from currently invested assets representing the
796 amount expected on unearned premium reserves and loss reserves.
797 The commission may adopt rules using reasonable techniques of
798 actuarial science and economics to specify the manner in which
799 insurers calculate investment income attributable to classes of
800 insurance written in this state and the manner in which
801 investment income is used to calculate insurance rates. Such
802 manner must contemplate allowances for an underwriting profit
803 factor and full consideration of investment income which produce
804 a reasonable rate of return; however, investment income from
805 invested surplus may not be considered.
806 5. The reasonableness of the judgment reflected in the
807 filing.
808 6. Dividends, savings, or unabsorbed premium deposits
809 allowed or returned to Florida policyholders, members, or
810 subscribers.
811 7. The adequacy of loss reserves.
812 8. The cost of reinsurance. The office may not disapprove a
813 rate as excessive solely due to the insurer having obtained
814 catastrophic reinsurance to cover the insurer’s estimated 250
815 year probable maximum loss or any lower level of loss.
816 9. Trend factors, including trends in actual losses per
817 insured unit for the insurer making the filing.
818 10. Conflagration and catastrophe hazards, if applicable.
819 11. Projected hurricane losses, if applicable, which must
820 be estimated using a model or method, or a straight average of
821 model results or output ranges, independently found to be
822 acceptable or reliable by the Florida Commission on Hurricane
823 Loss Projection Methodology, and as further provided in s.
824 627.0628.
825 12. A reasonable margin for underwriting profit and
826 contingencies.
827 13. The cost of medical services, if applicable.
828 14. Other relevant factors that affect the frequency or
829 severity of claims or expenses.
830 Section 23. Paragraph (d) of subsection (3) of section
831 627.0628, Florida Statutes, is amended to read:
832 627.0628 Florida Commission on Hurricane Loss Projection
833 Methodology; public records exemption; public meetings
834 exemption.—
835 (3) ADOPTION AND EFFECT OF STANDARDS AND GUIDELINES.—
836 (d) With respect to a rate filing under s. 627.062, an
837 insurer shall employ and may not modify or adjust actuarial
838 methods, principles, standards, models, or output ranges found
839 by the commission to be accurate or reliable in determining
840 hurricane loss factors for use in a rate filing under s.
841 627.062. An insurer shall employ and may not modify or adjust
842 models found by the commission to be accurate or reliable in
843 determining probable maximum loss levels pursuant to paragraph
844 (b) with respect to a rate filing under s. 627.062 made more
845 than 180 60 days after the commission has made such findings.
846 This paragraph does not prohibit an insurer from using a
847 straight average of model results or output ranges or using
848 straight averages for the purposes of a rate filing under s.
849 627.062.
850 Section 24. Subsections (2) through (4) of section 627.072,
851 Florida Statutes, are renumbered as subsections (3) through (5),
852 respectively, and a new subsection (2) is added to that section,
853 to read:
854 627.072 Making and use of rates.—
855 (2) A retrospective rating plan may contain a provision
856 that allows negotiation between the employer and the insurer to
857 determine the retrospective rating factors used to calculate the
858 premium for employers that have exposure in more than one state
859 and an estimated annual countrywide standard premium of $1
860 million or more for workers’ compensation.
861 Section 25. Subsection (2) of section 627.281, Florida
862 Statutes, is amended to read:
863 627.281 Appeal from rating organization; workers’
864 compensation and employer’s liability insurance filings.—
865 (2) If such appeal is based upon the failure of the rating
866 organization to make a filing on behalf of such member or
867 subscriber which is based on a system of expense provisions
868 which differs, in accordance with the right granted in s.
869 627.072(3) 627.072(2), from the system of expense provisions
870 included in a filing made by the rating organization, the office
871 shall, if it grants the appeal, order the rating organization to
872 make the requested filing for use by the appellant. In deciding
873 such appeal, the office shall apply the applicable standards set
874 forth in ss. 627.062 and 627.072.
875 Section 26. Section 627.3519, Florida Statutes, is
876 repealed.
877 Section 27. Paragraph (b) of subsection (2) of section
878 627.4133, Florida Statutes, is amended to read:
879 627.4133 Notice of cancellation, nonrenewal, or renewal
880 premium.—
881 (2) With respect to any personal lines or commercial
882 residential property insurance policy, including, but not
883 limited to, any homeowner’s, mobile home owner’s, farmowner’s,
884 condominium association, condominium unit owner’s, apartment
885 building, or other policy covering a residential structure or
886 its contents:
887 (b) The insurer shall give the first-named insured written
888 notice of nonrenewal, cancellation, or termination at least 120
889 100 days before the effective date of the nonrenewal,
890 cancellation, or termination. However, the insurer shall give at
891 least 100 days’ written notice, or written notice by June 1,
892 whichever is earlier, for any nonrenewal, cancellation, or
893 termination that would be effective between June 1 and November
894 30. The notice must include the reason or reasons for the
895 nonrenewal, cancellation, or termination, except that:
896 1. The insurer shall give the first-named insured written
897 notice of nonrenewal, cancellation, or termination at least 120
898 days prior to the effective date of the nonrenewal,
899 cancellation, or termination for a first-named insured whose
900 residential structure has been insured by that insurer or an
901 affiliated insurer for at least a 5-year period immediately
902 prior to the date of the written notice.
903 1.2. If cancellation is for nonpayment of premium, at least
904 10 days’ written notice of cancellation accompanied by the
905 reason therefor must be given. As used in this subparagraph, the
906 term “nonpayment of premium” means failure of the named insured
907 to discharge when due her or his obligations for in connection
908 with the payment of premiums on a policy or any installment of
909 such premium, whether the premium is payable directly to the
910 insurer or its agent or indirectly under any premium finance
911 plan or extension of credit, or failure to maintain membership
912 in an organization if such membership is a condition precedent
913 to insurance coverage. The term also means the failure of a
914 financial institution to honor an insurance applicant’s check
915 after delivery to a licensed agent for payment of a premium,
916 even if the agent has previously delivered or transferred the
917 premium to the insurer. If a dishonored check represents the
918 initial premium payment, the contract and all contractual
919 obligations are void ab initio unless the nonpayment is cured
920 within the earlier of 5 days after actual notice by certified
921 mail is received by the applicant or 15 days after notice is
922 sent to the applicant by certified mail or registered mail., and
923 If the contract is void, any premium received by the insurer
924 from a third party must be refunded to that party in full.
925 2.3. If such cancellation or termination occurs during the
926 first 90 days the insurance is in force and the insurance is
927 canceled or terminated for reasons other than nonpayment of
928 premium, at least 20 days’ written notice of cancellation or
929 termination accompanied by the reason therefor must be given
930 unless there has been a material misstatement or
931 misrepresentation or failure to comply with the underwriting
932 requirements established by the insurer.
933 3. After the policy has been in effect for 90 days, the
934 policy may not be canceled by the insurer unless there has been
935 a material misstatement, a nonpayment of premium, a failure to
936 comply with underwriting requirements established by the insurer
937 within 90 days after the date of effectuation of coverage, or a
938 substantial change in the risk covered by the policy or if the
939 cancellation is for all insureds under such policies for a given
940 class of insureds. This subparagraph does not apply to
941 individually rated risks having a policy term of less than 90
942 days.
943 4. The requirement for providing written notice by June 1
944 of any nonrenewal that would be effective between June 1 and
945 November 30 does not apply to the following situations, but the
946 insurer remains subject to the requirement to provide such
947 notice at least 100 days before the effective date of
948 nonrenewal:
949 a. A policy that is nonrenewed due to a revision in the
950 coverage for sinkhole losses and catastrophic ground cover
951 collapse pursuant to s. 627.706.
952 4.b. A policy that is nonrenewed by Citizens Property
953 Insurance Corporation, pursuant to s. 627.351(6), for a policy
954 that has been assumed by an authorized insurer offering
955 replacement coverage to the policyholder is exempt from the
956 notice requirements of paragraph (a) and this paragraph. In such
957 cases, the corporation must give the named insured written
958 notice of nonrenewal at least 45 days before the effective date
959 of the nonrenewal.
960
961 After the policy has been in effect for 90 days, the policy may
962 not be canceled by the insurer unless there has been a material
963 misstatement, a nonpayment of premium, a failure to comply with
964 underwriting requirements established by the insurer within 90
965 days after the date of effectuation of coverage, or a
966 substantial change in the risk covered by the policy or if the
967 cancellation is for all insureds under such policies for a given
968 class of insureds. This paragraph does not apply to individually
969 rated risks having a policy term of less than 90 days.
970 5. Notwithstanding any other provision of law, an insurer
971 may cancel or nonrenew a property insurance policy after at
972 least 45 days’ notice if the office finds that the early
973 cancellation of some or all of the insurer’s policies is
974 necessary to protect the best interests of the public or
975 policyholders and the office approves the insurer’s plan for
976 early cancellation or nonrenewal of some or all of its policies.
977 The office may base such finding upon the financial condition of
978 the insurer, lack of adequate reinsurance coverage for hurricane
979 risk, or other relevant factors. The office may condition its
980 finding on the consent of the insurer to be placed under
981 administrative supervision pursuant to s. 624.81 or to the
982 appointment of a receiver under chapter 631.
983 6. A policy covering both a home and motor vehicle may be
984 nonrenewed for any reason applicable to either the property or
985 motor vehicle insurance after providing 90 days’ notice.
986 Section 28. Subsection (1) of section 627.4137, Florida
987 Statutes, is amended to read:
988 627.4137 Disclosure of certain information required.—
989 (1) Each insurer that provides which does or may provide
990 liability insurance coverage to pay all or a portion of any
991 claim that which might be made shall provide, within 30 days
992 after of the written request of the claimant, a statement, under
993 oath, of a corporate officer or the insurer’s claims manager, or
994 superintendent, or licensed company adjuster setting forth the
995 following information with regard to each known policy of
996 insurance, including excess or umbrella insurance:
997 (a) The name of the insurer.
998 (b) The name of each insured.
999 (c) The limits of the liability coverage.
1000 (d) A statement of any policy or coverage defense that the
1001 which such insurer reasonably believes is available to the such
1002 insurer at the time of filing such statement.
1003 (e) A copy of the policy.
1004
1005 In addition, the insured, or her or his insurance agent, upon
1006 written request of the claimant or the claimant’s attorney,
1007 shall disclose the name and coverage of each known insurer to
1008 the claimant and shall forward such request for information as
1009 required by this subsection to all affected insurers. The
1010 insurer shall then supply the information required in this
1011 subsection to the claimant within 30 days after of receipt of
1012 such request.
1013 Section 29. Subsection (1) of section 627.421, Florida
1014 Statutes, is amended to read:
1015 627.421 Delivery of policy.—
1016 (1) Subject to the insurer’s requirement as to payment of
1017 premium, every policy shall be mailed or delivered to the
1018 insured or to the person entitled thereto not later than 60 days
1019 after the effectuation of coverage. Notwithstanding any other
1020 provision of law, an insurer may allow a policyholder to
1021 affirmatively elect delivery of the policy documents, including,
1022 but not limited to, policies, endorsements, notices, or
1023 documents, by electronic means in lieu of delivery by mail.
1024 Section 30. Subsection (2) of section 627.43141, Florida
1025 Statutes, is amended to read:
1026 627.43141 Notice of change in policy terms.—
1027 (2) A renewal policy may contain a change in policy terms.
1028 If a renewal policy contains does contain such change, the
1029 insurer must give the named insured written notice of the
1030 change, which may either must be enclosed along with the written
1031 notice of renewal premium required by ss. 627.4133 and 627.728
1032 or be sent in a separate notice that complies with the
1033 nonrenewal mailing time requirement for that particular line of
1034 business. The insurer must also provide a sample copy of the
1035 notice to the insured’s insurance agent before or at the same
1036 time that notice is given to the insured. Such notice shall be
1037 entitled “Notice of Change in Policy Terms.”
1038 Section 31. Subsection (7) of section 627.701, Florida
1039 Statutes, is amended to read:
1040 627.701 Liability of insureds; coinsurance; deductibles.—
1041 (7) Before Prior to issuing a personal lines residential
1042 property insurance policy on or after January 1, 2014 April 1,
1043 1997, or before prior to the first renewal of a residential
1044 property insurance policy on or after January 1, 2014 April 1,
1045 1997, the insurer must offer a deductible equal to $500, or
1046 equal to 1 percent of the policy dwelling limits if such amount
1047 is not less than $500, applicable to losses from perils other
1048 than hurricane. The insurer must provide the policyholder with
1049 notice of the availability of the deductible specified in this
1050 subsection in a form approved by the office at least once every
1051 3 years. The failure to provide such notice constitutes a
1052 violation of this code but does not affect the coverage provided
1053 under the policy. An insurer may require a higher deductible
1054 only as part of a deductible program lawfully in effect on June
1055 1, 1996, or as part of a similar deductible program.
1056 Section 32. Paragraph (b) of subsection (4) of section
1057 627.7015, Florida Statutes, is amended to read:
1058 627.7015 Alternative procedure for resolution of disputed
1059 property insurance claims.—
1060 (4) The department shall adopt by rule a property insurance
1061 mediation program to be administered by the department or its
1062 designee. The department may also adopt special rules which are
1063 applicable in cases of an emergency within the state. The rules
1064 shall be modeled after practices and procedures set forth in
1065 mediation rules of procedure adopted by the Supreme Court. The
1066 rules shall provide for:
1067 (b) Qualifications, denial of application, suspension,
1068 revocation, and other penalties for of mediators as provided in
1069 s. 627.745 and in the Florida Rules of Certified and Court
1070 Appointed Mediators, and for such other individuals as are
1071 qualified by education, training, or experience as the
1072 department determines to be appropriate.
1073 Section 33. Section 627.70151, Florida Statutes, is created
1074 to read:
1075 627.70151 Appraisal; conflicts of interest.—An insurer that
1076 offers residential coverage, as defined in s. 627.4025, or a
1077 policyholder that uses an appraisal clause in the property
1078 insurance contract to establish a process of estimating or
1079 evaluating the amount of the loss through the use of an
1080 impartial umpire may challenge the umpire’s impartiality and
1081 disqualify the proposed umpire only if:
1082 (1) A familial relationship within the third degree exists
1083 between the umpire and any party or a representative of any
1084 party;
1085 (2) The umpire has previously represented any party or a
1086 representative of any party in a professional capacity in the
1087 same or a substantially related matter;
1088 (3) The umpire has represented another person in a
1089 professional capacity on the same or a substantially related
1090 matter, which includes the claim, same property, or an adjacent
1091 property and that other person’s interests are materially
1092 adverse to the interests of any party; or
1093 (4) The umpire has worked as an employer or employee of any
1094 party within the preceding 5 years.
1095 Section 34. Paragraph (c) of subsection (2) of section
1096 627.706, Florida Statutes, is amended to read:
1097 627.706 Sinkhole insurance; catastrophic ground cover
1098 collapse; definitions.—
1099 (2) As used in ss. 627.706-627.7074, and as used in
1100 connection with any policy providing coverage for a catastrophic
1101 ground cover collapse or for sinkhole losses, the term:
1102 (c) “Neutral evaluator” means a professional engineer or a
1103 professional geologist who has completed a course of study in
1104 alternative dispute resolution designed or approved by the
1105 department for use in the neutral evaluation process, and who is
1106 determined by the department to be fair and impartial, and who
1107 is not otherwise ineligible for certification as provided in s.
1108 627.7074.
1109 Section 35. Subsection (1) of section 627.7074, Florida
1110 Statutes, is amended to read:
1111 627.7074 Alternative procedure for resolution of disputed
1112 sinkhole insurance claims.—
1113 (1) The department shall:
1114 (a) Certify and maintain a list of persons who are neutral
1115 evaluators.
1116 (b) Adopt rules for certifying, denying certification,
1117 suspending certification, and revoking certification as a
1118 neutral evaluator, in keeping with qualifications specified in
1119 this section and ss. 627.706 and 627.745(4).
1120 (c)(b) Prepare a consumer information pamphlet for
1121 distribution by insurers to policyholders which clearly
1122 describes the neutral evaluation process and includes
1123 information necessary for the policyholder to request a neutral
1124 evaluation.
1125 Section 36. Paragraph (a) of subsection (5) of section
1126 627.736, Florida Statutes, is amended to read:
1127 627.736 Required personal injury protection benefits;
1128 exclusions; priority; claims.—
1129 (5) CHARGES FOR TREATMENT OF INJURED PERSONS.—
1130 (a) A physician, hospital, clinic, or other person or
1131 institution lawfully rendering treatment to an injured person
1132 for a bodily injury covered by personal injury protection
1133 insurance may charge the insurer and injured party only a
1134 reasonable amount pursuant to this section for the services and
1135 supplies rendered, and the insurer providing such coverage may
1136 pay for such charges directly to such person or institution
1137 lawfully rendering such treatment if the insured receiving such
1138 treatment or his or her guardian has countersigned the properly
1139 completed invoice, bill, or claim form approved by the office
1140 upon which such charges are to be paid for as having actually
1141 been rendered, to the best knowledge of the insured or his or
1142 her guardian. However, such a charge may not exceed the amount
1143 the person or institution customarily charges for like services
1144 or supplies. In determining whether a charge for a particular
1145 service, treatment, or otherwise is reasonable, consideration
1146 may be given to evidence of usual and customary charges and
1147 payments accepted by the provider involved in the dispute,
1148 reimbursement levels in the community and various federal and
1149 state medical fee schedules applicable to motor vehicle and
1150 other insurance coverages, and other information relevant to the
1151 reasonableness of the reimbursement for the service, treatment,
1152 or supply.
1153 1. The insurer may limit reimbursement to 80 percent of the
1154 following schedule of maximum charges:
1155 a. For emergency transport and treatment by providers
1156 licensed under chapter 401, 200 percent of Medicare.
1157 b. For emergency services and care provided by a hospital
1158 licensed under chapter 395, 75 percent of the hospital’s usual
1159 and customary charges.
1160 c. For emergency services and care as defined by s. 395.002
1161 provided in a facility licensed under chapter 395 rendered by a
1162 physician or dentist, and related hospital inpatient services
1163 rendered by a physician or dentist, the usual and customary
1164 charges in the community.
1165 d. For hospital inpatient services, other than emergency
1166 services and care, 200 percent of the Medicare Part A
1167 prospective payment applicable to the specific hospital
1168 providing the inpatient services.
1169 e. For hospital outpatient services, other than emergency
1170 services and care, 200 percent of the Medicare Part A Ambulatory
1171 Payment Classification for the specific hospital providing the
1172 outpatient services.
1173 f. For all other medical services, supplies, and care, 200
1174 percent of the allowable amount under:
1175 (I) The participating physicians fee schedule of Medicare
1176 Part B, except as provided in sub-sub-subparagraphs (II) and
1177 (III).
1178 (II) Medicare Part B, in the case of services, supplies,
1179 and care provided by ambulatory surgical centers and clinical
1180 laboratories.
1181 (III) The Durable Medical Equipment Prosthetics/Orthotics
1182 and Supplies fee schedule of Medicare Part B, in the case of
1183 durable medical equipment.
1184
1185 However, if such services, supplies, or care is not reimbursable
1186 under Medicare Part B, as provided in this sub-subparagraph, the
1187 insurer may limit reimbursement to 80 percent of the maximum
1188 reimbursable allowance under workers’ compensation, as
1189 determined under s. 440.13 and rules adopted thereunder which
1190 are in effect at the time such services, supplies, or care is
1191 provided. Services, supplies, or care that is not reimbursable
1192 under Medicare or workers’ compensation is not required to be
1193 reimbursed by the insurer.
1194 2. For purposes of subparagraph 1., the applicable fee
1195 schedule or payment limitation under Medicare is the fee
1196 schedule or payment limitation in effect on March 1 of the year
1197 in which the services, supplies, or care is rendered and for the
1198 area in which such services, supplies, or care is rendered, and
1199 the applicable fee schedule or payment limitation applies from
1200 March 1 until the last day of the following February throughout
1201 the remainder of that year, notwithstanding any subsequent
1202 change made to the fee schedule or payment limitation, except
1203 that it may not be less than the allowable amount under the
1204 applicable schedule of Medicare Part B for 2007 for medical
1205 services, supplies, and care subject to Medicare Part B.
1206 3. Subparagraph 1. does not allow the insurer to apply any
1207 limitation on the number of treatments or other utilization
1208 limits that apply under Medicare or workers’ compensation. An
1209 insurer that applies the allowable payment limitations of
1210 subparagraph 1. must reimburse a provider who lawfully provided
1211 care or treatment under the scope of his or her license,
1212 regardless of whether such provider is entitled to reimbursement
1213 under Medicare due to restrictions or limitations on the types
1214 or discipline of health care providers who may be reimbursed for
1215 particular procedures or procedure codes. However, subparagraph
1216 1. does not prohibit an insurer from using the Medicare coding
1217 policies and payment methodologies of the federal Centers for
1218 Medicare and Medicaid Services, including applicable modifiers,
1219 to determine the appropriate amount of reimbursement for medical
1220 services, supplies, or care if the coding policy or payment
1221 methodology does not constitute a utilization limit.
1222 4. If an insurer limits payment as authorized by
1223 subparagraph 1., the person providing such services, supplies,
1224 or care may not bill or attempt to collect from the insured any
1225 amount in excess of such limits, except for amounts that are not
1226 covered by the insured’s personal injury protection coverage due
1227 to the coinsurance amount or maximum policy limits.
1228 5. Effective July 1, 2012, an insurer may limit payment as
1229 authorized by this paragraph only if the insurance policy
1230 includes a notice at the time of issuance or renewal that the
1231 insurer may limit payment pursuant to the schedule of charges
1232 specified in this paragraph. A policy form approved by the
1233 office satisfies this requirement. If a provider submits a
1234 charge for an amount less than the amount allowed under
1235 subparagraph 1., the insurer may pay the amount of the charge
1236 submitted.
1237 Section 37. Subsection (3) of section 627.745, Florida
1238 Statutes, is amended, present subsections (4) and (5) of that
1239 section are renumbered as subsections (5) and (6), respectively,
1240 and a new subsection (4) is added to that section, to read:
1241 627.745 Mediation of claims.—
1242 (3)(a) The department shall approve mediators to conduct
1243 mediations pursuant to this section. All mediators must file an
1244 application under oath for approval as a mediator.
1245 (b) To qualify for approval as a mediator, an individual a
1246 person must meet one of the following qualifications:
1247 1. Possess an active certification as a Florida Circuit
1248 Court Mediator. A Florida Circuit Court Mediator in a lapsed,
1249 suspended, or decertified status is not eligible to participate
1250 in the mediation program a masters or doctorate degree in
1251 psychology, counseling, business, accounting, or economics, be a
1252 member of The Florida Bar, be licensed as a certified public
1253 accountant, or demonstrate that the applicant for approval has
1254 been actively engaged as a qualified mediator for at least 4
1255 years prior to July 1, 1990.
1256 2. Be an approved department mediator as of July 1, 2013,
1257 and have conducted at least one mediation on behalf of the
1258 department within 4 years immediately preceding that the date
1259 the application for approval is filed with the department, have
1260 completed a minimum of a 40-hour training program approved by
1261 the department and successfully passed a final examination
1262 included in the training program and approved by the department.
1263 The training program shall include and address all of the
1264 following:
1265 a. Mediation theory.
1266 b. Mediation process and techniques.
1267 c. Standards of conduct for mediators.
1268 d. Conflict management and intervention skills.
1269 e. Insurance nomenclature.
1270 (4) The department shall deny an application, or suspend or
1271 revoke its approval of a mediator or its certification of a
1272 neutral evaluator to serve in such capacity, if the department
1273 finds that any of the following grounds exist:
1274 (a) Lack of one or more of the qualifications specified in
1275 this section for approval or certification.
1276 (b) Material misstatement, misrepresentation, or fraud in
1277 obtaining or attempting to obtain the approval or certification.
1278 (c) Demonstrated lack of fitness or trustworthiness to act
1279 as a mediator or neutral evaluator.
1280 (d) Fraudulent or dishonest practices in the conduct of
1281 mediation or neutral evaluation or in the conduct of business in
1282 the financial services industry.
1283 (e) Violation of any provision of this code, a lawful order
1284 or rule of the department, the Florida Rules for Certified and
1285 Court-Appointed Mediators, or aiding, instructing, or
1286 encouraging another party in committing such a violation.
1287
1288 The department may adopt rules to administer this subsection.
1289 Section 38. Paragraph (b) of subsection (1) of section
1290 627.952, Florida Statutes, is amended to read:
1291 627.952 Risk retention and purchasing group agents.—
1292 (1) Any person offering, soliciting, selling, purchasing,
1293 administering, or otherwise servicing insurance contracts,
1294 certificates, or agreements for any purchasing group or risk
1295 retention group to any resident of this state, either directly
1296 or indirectly, by the use of mail, advertising, or other means
1297 of communication, shall obtain a license and appointment to act
1298 as a resident general lines agent, if a resident of this state,
1299 or a nonresident general lines agent if not a resident. Any such
1300 person shall be subject to all requirements of the Florida
1301 Insurance Code.
1302 (b) Any person required to be licensed and appointed under
1303 this subsection, in order to place business through Florida
1304 eligible surplus lines carriers, must, if a resident of this
1305 state, be licensed and appointed as a surplus lines agent. If
1306 not a resident of this state, such person must be licensed and
1307 appointed as a nonresident surplus lines agent in this her or
1308 his state of residence and file and maintain a fidelity bond in
1309 favor of the people of the State of Florida executed by a surety
1310 company admitted in this state and payable to the State of
1311 Florida; however, such nonresident is limited to the provision
1312 of insurance for purchasing groups. The bond must be continuous
1313 in form and in the amount of not less than $50,000, aggregate
1314 liability. The bond must remain in force and effect until the
1315 surety is released from liability by the department or until the
1316 bond is canceled by the surety. The surety may cancel the bond
1317 and be released from further liability upon 30 days’ prior
1318 written notice to the department. The cancellation does not
1319 affect any liability incurred or accrued before the termination
1320 of the 30-day period. Upon receipt of a notice of cancellation,
1321 the department shall immediately notify the agent.
1322 Section 39. Subsection (6) of section 627.971, Florida
1323 Statutes, is amended to read:
1324 627.971 Definitions.—As used in this part:
1325 (6) “Financial guaranty insurance corporation” means a
1326 stock or mutual insurer licensed to transact financial guaranty
1327 insurance business in this state.
1328 Section 40. Subsection (1) of section 627.972, Florida
1329 Statutes, is amended to read:
1330 627.972 Organization; financial requirements.—
1331 (1) A financial guaranty insurance corporation must be
1332 organized and licensed in the manner prescribed in this code for
1333 stock or mutual property and casualty insurers except that:
1334 (a) A corporation organized to transact financial guaranty
1335 insurance may, subject to the provisions of this code, be
1336 licensed to transact:
1337 1. Residual value insurance, as defined by s. 624.6081;
1338 2. Surety insurance, as defined by s. 624.606;
1339 3. Credit insurance, as defined by s. 624.605(1)(i); and
1340 4. Mortgage guaranty insurance as defined in s. 635.011,
1341 provided that the provisions of chapter 635 are met.
1342 (b)1. Before Prior to the issuance of a license, a
1343 corporation must submit to the office for approval, a plan of
1344 operation detailing:
1345 a. The types and projected diversification of guaranties to
1346 be issued;
1347 b. The underwriting procedures to be followed;
1348 c. The managerial oversight methods;
1349 d. The investment policies; and
1350 e. Any other matters prescribed by the office;
1351 2. An insurer which is writing only the types of insurance
1352 allowed under this part on July 1, 1988, and otherwise meets the
1353 requirements of this part, is exempt from the requirements of
1354 this paragraph.
1355 (c) An insurer transacting financial guaranty insurance is
1356 subject to all provisions of this code that are applicable to
1357 property and casualty insurers to the extent that those
1358 provisions are not inconsistent with this part.
1359 (d) The investments of an insurer transacting financial
1360 guaranty insurance in any entity insured by the corporation may
1361 not exceed 2 percent of its admitted assets as of the end of the
1362 prior calendar year.
1363 (e) An insurer transacting financial guaranty insurance may
1364 only assume those lines of insurance for which it is licensed to
1365 write direct business.
1366 Section 41. Subsection (13) of section 628.901, Florida
1367 Statutes, is amended to read:
1368 628.901 Definitions.—As used in this part, the term:
1369 (13) “Qualifying reinsurer parent company” means a
1370 reinsurer that which currently holds a certificate of authority
1371 or a, letter of eligibility or is a trusteed reinsurer or an
1372 accredited or a satisfactory non-approved reinsurer in this
1373 state possessing a consolidated GAAP net worth of at least $500
1374 million and a consolidated debt to total capital ratio of not
1375 greater than 0.50.
1376 Section 42. Paragraph (a) of subsection (2) and paragraph
1377 (a) of subsection (3) of section 628.909, Florida Statutes, are
1378 amended to read:
1379 628.909 Applicability of other laws.—
1380 (2) The following provisions of the Florida Insurance Code
1381 apply to captive insurers who are not industrial insured captive
1382 insurers to the extent that such provisions are not inconsistent
1383 with this part:
1384 (a) Chapter 624, except for ss. 624.407, 624.408, 624.4085,
1385 624.40851, 624.4095, 624.411, 624.425, and 624.426.
1386 (3) The following provisions of the Florida Insurance Code
1387 apply to industrial insured captive insurers to the extent that
1388 such provisions are not inconsistent with this part:
1389 (a) Chapter 624, except for ss. 624.407, 624.408, 624.4085,
1390 624.40851, 624.4095, 624.411, 624.425, 624.426, and 624.609(1).
1391 Section 43. Subsection (8) of section 634.406, Florida
1392 Statutes, is renumbered as subsection (7), and present
1393 subsections (6) and (7) of that section are amended, to read:
1394 634.406 Financial requirements.—
1395 (6) An association that which holds a license under this
1396 part and which does not hold any other license under this
1397 chapter may allow its premiums for service warranties written
1398 under this part to exceed the ratio to net assets limitations of
1399 this section if the association meets all of the following:
1400 (a) Maintains net assets of at least $750,000.
1401 (b) Utilizes a contractual liability insurance policy
1402 approved by the office which:
1403 1. Reimburses the service warranty association for 100
1404 percent of its claims liability and is issued by an insurer that
1405 maintains a policyholder surplus of at least $100 million; or
1406 2. Complies with the requirements of subsection (3) and is
1407 issued by an insurer that maintains a policyholder surplus of at
1408 least $200 million.
1409 (c) The insurer issuing the contractual liability insurance
1410 policy:
1411 1. Maintains a policyholder surplus of at least $100
1412 million.
1413 1.2. Is rated “A” or higher by A.M. Best Company or an
1414 equivalent rating by another national rating service acceptable
1415 to the office.
1416 3. Is in no way affiliated with the warranty association.
1417 2.4. In conjunction with the warranty association’s filing
1418 of the quarterly and annual reports, provides, on a form
1419 prescribed by the commission, a statement certifying the gross
1420 written premiums in force reported by the warranty association
1421 and a statement that all of the warranty association’s gross
1422 written premium in force is covered under the contractual
1423 liability policy, whether or not it has been reported.
1424 (7) A contractual liability policy must insure 100 percent
1425 of an association’s claims exposure under all of the
1426 association’s service warranty contracts, wherever written,
1427 unless all of the following are satisfied:
1428 (a) The contractual liability policy contains a clause that
1429 specifically names the service warranty contract holders as sole
1430 beneficiaries of the contractual liability policy and claims are
1431 paid directly to the person making a claim under the contract;
1432 (b) The contractual liability policy meets all other
1433 requirements of this part, including subsection (3) of this
1434 section, which are not inconsistent with this subsection;
1435 (c) The association has been in existence for at least 5
1436 years or the association is a wholly owned subsidiary of a
1437 corporation that has been in existence and has been licensed as
1438 a service warranty association in the state for at least 5
1439 years, and:
1440 1. Is listed and traded on a recognized stock exchange; is
1441 listed in NASDAQ (National Association of Security Dealers
1442 Automated Quotation system) and publicly traded in the over-the
1443 counter securities market; is required to file either of Form
1444 10-K, Form 100, or Form 20-G with the United States Securities
1445 and Exchange Commission; or has American Depository Receipts
1446 listed on a recognized stock exchange and publicly traded or is
1447 the wholly owned subsidiary of a corporation that is listed and
1448 traded on a recognized stock exchange; is listed in NASDAQ
1449 (National Association of Security Dealers Automated Quotation
1450 system) and publicly traded in the over-the-counter securities
1451 market; is required to file Form 10-K, Form 100, or Form 20-G
1452 with the United States Securities and Exchange Commission; or
1453 has American Depository Receipts listed on a recognized stock
1454 exchange and is publicly traded;
1455 2. Maintains outstanding debt obligations, if any, rated in
1456 the top four rating categories by a recognized rating service;
1457 3. Has and maintains at all times a minimum net worth of
1458 not less than $10 million as evidenced by audited financial
1459 statements prepared by an independent certified public
1460 accountant in accordance with generally accepted accounting
1461 principles and submitted to the office annually; and
1462 4. Is authorized to do business in this state; and
1463 (d) The insurer issuing the contractual liability policy:
1464 1. Maintains and has maintained for the preceding 5 years,
1465 policyholder surplus of at least $100 million and is rated “A”
1466 or higher by A.M. Best Company or has an equivalent rating by
1467 another rating company acceptable to the office;
1468 2. Holds a certificate of authority to do business in this
1469 state and is approved to write this type of coverage; and
1470 3. Acknowledges to the office quarterly that it insures all
1471 of the association’s claims exposure under contracts delivered
1472 in this state.
1473
1474 If all the preceding conditions are satisfied, then the scope of
1475 coverage under a contractual liability policy shall not be
1476 required to exceed an association’s claims exposure under
1477 service warranty contracts delivered in this state.
1478 Section 44. This act shall take effect upon becoming a law.
1479
1480 ================= T I T L E A M E N D M E N T ================
1481 And the title is amended as follows:
1482 Delete everything before the enacting clause
1483 and insert:
1484 A bill to be entitled
1485 An act relating to insurance; amending s. 215.555,
1486 F.S.; deleting the future repeal of an exemption of
1487 medical malpractice insurance premiums from emergency
1488 assessments imposed to fund certain obligations,
1489 costs, and expenses of the Florida Hurricane
1490 Catastrophe Fund and the Florida Hurricane Catastrophe
1491 Fund Finance Corporation; amending s. 316.646, F.S.;
1492 authorizing a uniform motor vehicle proof-of-insurance
1493 card to be in an electronic format; providing
1494 construction with respect to the parameters of a
1495 person’s consent to access information on an
1496 electronic device presented to provide proof of
1497 insurance; providing immunity from liability to a law
1498 enforcement officer for damage to an electronic device
1499 presented to provide proof of insurance; authorizing
1500 the Department of Highway Safety and Motor Vehicles to
1501 adopt rules; amending s. 320.02, F.S.; authorizing
1502 insurers to furnish uniform proof-of-purchase cards in
1503 an electronic format for use by insureds to prove the
1504 purchase of required insurance coverage when
1505 registering a motor vehicle; amending s. 554.1021,
1506 F.S.; defining the term “authorized inspection
1507 agency”; amending s. 554.107, F.S.; requiring the
1508 chief inspector of the state boiler inspection program
1509 to issue a certificate of competency as a special
1510 inspector to certain individuals; specifying how long
1511 such certificate remains in effect; amending s.
1512 554.109, F.S.; authorizing specified insurers to
1513 contract with an authorized inspection agency for
1514 boiler inspections; requiring such insurers to
1515 annually report the identity of contracted authorized
1516 inspection agencies to the Department of Financial
1517 Services; amending s. 624.413, F.S.; revising a
1518 specified time period applicable to a certified
1519 examination that must be filed by a foreign or alien
1520 insurer applying for a certificate of authority;
1521 amending s. 626.0428, F.S.; requiring each insurance
1522 agency to be under the control of an agent licensed to
1523 transact certain lines of insurance; authorizing an
1524 agent to be in charge of more than one branch office
1525 under certain circumstances; providing requirements
1526 relating to the designation of an agent in charge;
1527 prohibiting an insurance agency from conducting
1528 insurance business at a location without a designated
1529 agent in charge; providing a definition for the term
1530 “agent in charge”; providing that the designated agent
1531 in charge is liable for certain acts of misconduct;
1532 providing grounds for the Department of Financial
1533 Services to order operations to cease at certain
1534 insurance agency locations until an agent in charge is
1535 properly designated; amending s. 626.112, F.S.;
1536 providing licensure exemptions that allow specified
1537 individuals or entities to conduct insurance business
1538 at specified locations under certain circumstances;
1539 revising licensure requirements and penalties with
1540 respect to registered insurance agencies; providing
1541 that the registration of an approved registered
1542 insurance agency automatically converts to an
1543 insurance agency license on a specified date; amending
1544 s. 626.172, F.S.; revising requirements relating to
1545 applications for insurance agency licenses; conforming
1546 provisions to changes made by the act; amending s.
1547 626.321, F.S.; providing that a limited license to
1548 offer motor vehicle rental insurance issued to a
1549 business that rents or leases motor vehicles
1550 encompasses the employees of such business; amending
1551 s. 626.382, F.S.; providing that an insurance agency
1552 license continues in force until canceled, suspended,
1553 revoked, or terminated; amending s. 626.601, F.S.;
1554 revising terminology relating to investigations
1555 conducted by the Department of Financial Services and
1556 the Office of Insurance Regulation with respect to
1557 individuals and entities involved in the insurance
1558 industry; repealing s. 626.747, F.S., relating to
1559 branch agencies, agents in charge, and the payment of
1560 additional county tax under certain circumstances;
1561 amending s. 626.8411, F.S.; conforming a cross
1562 reference; amending s. 626.9914, F.S.; conforming a
1563 provision to changes made by the act; repealing s.
1564 626.99175, F.S., relating to the registration of life
1565 expectancy providers; amending ss. 626.9919, 626.992,
1566 626.9925, and 626.99278, F.S.; conforming provisions
1567 to changes made by the act; amending s. 627.062, F.S.;
1568 requiring the Office of Insurance Regulation to use
1569 certain models or straight averages of certain models
1570 to estimate hurricane losses when determining whether
1571 the rates in a rate filing are excessive, inadequate,
1572 or unfairly discriminatory; amending s. 627.0628,
1573 F.S.; increasing the length of time during which an
1574 insurer must adhere to certain findings made by the
1575 Commission on Hurricane Loss Projection Methodology
1576 with respect to certain methods, principles,
1577 standards, models, or output ranges used in a rate
1578 finding; providing that the requirement to adhere to
1579 such findings does not limit an insurer from using a
1580 straight average of results of certain models or
1581 output ranges under specified circumstances; amending
1582 s. 627.072, F.S.; authorizing retrospective rating
1583 plans relating to workers’ compensation and employer’s
1584 liability insurance to allow negotiations between
1585 certain employers and insurers with respect to rating
1586 factors used to calculate premiums; amending s.
1587 627.281, F.S.; conforming a cross-reference; repealing
1588 s. 627.3519, F.S., relating to an annual report from
1589 the Financial Services Commission to the Legislature
1590 of aggregate net probable maximum losses, financing
1591 options, and potential assessments of the Florida
1592 Hurricane Catastrophe Fund and Citizens Property
1593 Insurance Corporation; amending s. 627.4133, F.S.;
1594 increasing the amount of prior notice required with
1595 respect to the nonrenewal, cancellation, or
1596 termination of certain insurance policies; deleting
1597 certain provisions that require extended periods of
1598 prior notice with respect to the nonrenewal,
1599 cancellation, or termination of certain insurance
1600 policies; prohibiting the cancellation of certain
1601 policies that have been in effect for a specified
1602 amount of time except under certain circumstances;
1603 amending s. 627.4137, F.S.; adding licensed company
1604 adjusters to the list of persons who may respond to a
1605 claimant’s written request for information relating to
1606 liability insurance coverage; amending s. 627.421,
1607 F.S.; authorizing the electronic delivery of certain
1608 insurance documents; amending s. 627.43141, F.S.;
1609 authorizing a notice of change in policy terms to be
1610 sent in a separate mailing to an insured under certain
1611 circumstances; requiring an insurer to provide such
1612 notice to insured’s insurance agent; amending s.
1613 627.701, F.S.; revising requirements to issue or renew
1614 personal lines residential property insurance after a
1615 certain date; amending s. 627.7015, F.S.; revising the
1616 rulemaking authority of the department with respect to
1617 qualifications and specified types of penalties
1618 covered under the property insurance mediation
1619 program; creating s. 627.70151, F.S.; providing
1620 criteria for an insurer or policyholder to challenge
1621 the impartiality of a loss appraisal umpire for
1622 purposes of disqualifying such umpire; amending s.
1623 627.706, F.S.; revising the definition of the term
1624 “neutral evaluator”; amending s. 627.7074, F.S.;
1625 requiring the department to adopt rules relating to
1626 the certification of neutral evaluators; amending s.
1627 627.736, F.S.; revising the time period for
1628 applicability of certain Medicare fee schedules or
1629 payment limitations; amending s. 627.745, F.S.;
1630 revising qualifications for approval as a mediator by
1631 the department; providing grounds for the department
1632 to deny an application, or suspend or revoke approval
1633 of a mediator or certification of a neutral evaluator;
1634 authorizing the department to adopt rules; amending s.
1635 627.952, F.S.; providing that certain persons who are
1636 not residents of this state must be licensed and
1637 appointed as nonresident surplus lines agents in this
1638 state in order to engage in specified activities with
1639 respect to servicing insurance contracts,
1640 certificates, or agreements for purchasing or risk
1641 retention groups; deleting a fidelity bond requirement
1642 applicable to certain nonresident agents who are
1643 licensed as surplus lines agents in another state;
1644 amending ss. 627.971 and 627.972, F.S.; including
1645 licensed mutual insurers in financial guaranty
1646 insurance corporations; amending s. 628.901, F.S.;
1647 revising the definition of the term “qualifying
1648 reinsurer parent company”; amending s. 628.909, F.S.;
1649 providing for applicability of certain provisions of
1650 the Insurance Code to specified captive insurers;
1651 amending s. 634.406, F.S.; revising criteria
1652 authorizing premiums of certain service warranty
1653 associations to exceed their specified net assets
1654 limitations; revising requirements relating to
1655 contractual liability policies that insure warranty
1656 associations; providing an effective date.