Florida Senate - 2013                                    SB 1046
       By Senator Brandes
       22-00787A-13                                          20131046__
    1                        A bill to be entitled                      
    2         An act relating to insurance; amending s. 215.555,
    3         F.S.; deleting the future repeal of an exemption of
    4         medical malpractice insurance premiums from emergency
    5         assessments imposed to fund certain obligations,
    6         costs, and expenses of the Florida Hurricane
    7         Catastrophe Fund and the Florida Hurricane Catastrophe
    8         Fund Finance Corporation; amending s. 316.646, F.S.;
    9         authorizing a uniform motor vehicle proof-of-insurance
   10         card to be in an electronic format; authorizing the
   11         Department of Highway Safety and Motor Vehicles to
   12         adopt rules; amending s. 320.02, F.S.; authorizing
   13         insurers to furnish uniform proof-of-purchase cards in
   14         an electronic format for use by insureds to prove the
   15         purchase of required insurance coverage when
   16         registering a motor vehicle; amending s. 624.413,
   17         F.S.; revising a specified time period applicable to a
   18         certified examination that must be filed by a foreign
   19         or alien insurer applying for a certificate of
   20         authority; amending s. 626.321, F.S.; providing that a
   21         limited license to offer motor vehicle rental
   22         insurance issued to a business that rents or leases
   23         motor vehicles encompasses the employees of such
   24         business; amending s. 626.601, F.S.; revising
   25         terminology relating to investigations conducted by
   26         the Department of Financial Services and the Office of
   27         Insurance Regulation with respect to individuals and
   28         entities involved in the insurance industry; amending
   29         s. 626.9914, F.S.; conforming a provision to changes
   30         made by the act; amending s. 626.99175, F.S.; deleting
   31         provisions requiring registration of life expectancy
   32         providers; deleting procedures, qualifying criteria,
   33         and violations with respect thereto; amending ss.
   34         626.9919, 626.992, 626.9925, and 626.99278, F.S.;
   35         conforming provisions to changes made by the act;
   36         amending s. 627.062, F.S.; requiring the Office of
   37         Insurance Regulation to use certain models or averages
   38         of certain models to estimate hurricane losses when
   39         determining whether the rates in a rate filing are
   40         excessive, inadequate, or unfairly discriminatory;
   41         amending s. 627.0628, F.S.; increasing the length of
   42         time during which an insurer must adhere to certain
   43         findings made by the Commission on Hurricane Loss
   44         Projection Methodology with respect to certain
   45         methods, principles, standards, models, or output
   46         ranges used in a rate finding; providing that the
   47         requirement to adhere to such findings does not limit
   48         an insurer from averaging together the results of
   49         certain models or output ranges under specified
   50         circumstances; amending s. 627.072, F.S.; authorizing
   51         retrospective rating plans relating to workers’
   52         compensation and employer’s liability insurance to
   53         allow negotiations between certain employers and
   54         insurers with respect to rating factors used to
   55         calculate premiums; amending s. 627.281, F.S.;
   56         conforming a cross-reference; repealing s. 627.3519,
   57         F.S., relating to an annual report from the Financial
   58         Services Commission to the Legislature of aggregate
   59         net probable maximum losses, financing options, and
   60         potential assessments of the Florida Hurricane
   61         Catastrophe Fund and Citizens Property Insurance
   62         Corporation; amending s. 627.4133, F.S.; deleting
   63         provisions that require extended periods of prior
   64         notice with respect to the nonrenewal, cancellation,
   65         or termination of certain insurance policies;
   66         prohibiting the cancellation of certain policies that
   67         have been in effect for a specified amount of time
   68         except under certain circumstances; amending s.
   69         627.4137, F.S.; adding licensed company adjusters to
   70         the list of persons who may respond to a claimant’s
   71         written request for information relating to liability
   72         insurance coverage; amending s. 627.421, F.S.;
   73         authorizing the electronic delivery of certain
   74         insurance documents; amending s. 627.43141, F.S.;
   75         authorizing a notice of change in policy terms to be
   76         sent in a separate mailing to an insured under certain
   77         circumstances; requiring an insurer to provide such
   78         notice to insured’s insurance agent; amending s.
   79         627.701, F.S.; revising requirements to issue or renew
   80         personal lines residential property insurance after a
   81         certain date; amending s. 627.7015, F.S.; revising the
   82         rulemaking authority of the department with respect to
   83         qualifications and specified types of penalties
   84         covered under the property insurance mediation
   85         program; creating s. 627.70151, F.S.; providing
   86         criteria for an insurer or policyholder to challenge
   87         the impartiality of a loss appraisal umpire for
   88         purposes of disqualifying such umpire; amending s.
   89         627.706, F.S.; authorizing the inclusion of
   90         deductibles applicable to sinkhole losses in property
   91         insurance policies covering nonresidential buildings;
   92         revising the definition of the term “neutral
   93         evaluator”; amending s. 627.7074, F.S.; requiring the
   94         department to adopt rules relating to certification of
   95         neutral evaluators; amending s. 627.736, F.S.;
   96         revising the time period for applicability of certain
   97         Medicare fee schedules or payment limitations;
   98         amending s. 627.745, F.S.; revising qualifications for
   99         approval as a mediator by the department; providing
  100         grounds for the department to deny an application or
  101         revoke approval of a mediator or neutral evaluator;
  102         authorizing the department to adopt rules; amending s.
  103         627.952, F.S.; deleting a fidelity bond requirement
  104         applicable to certain nonresident general lines agents
  105         who are licensed as surplus lines agents in another
  106         state; amending ss. 627.971 and 627.972, F.S.;
  107         including licensed mutual insurers in financial
  108         guaranty insurance corporations; amending s. 628.901,
  109         F.S.; revising the definition of the term “qualifying
  110         reinsurer parent company” to delete obsolete language;
  111         amending s. 628.909, F.S.; providing for applicability
  112         of certain provisions of the Insurance Code to
  113         specified captive insurers; amending s. 634.406, F.S.;
  114         revising criteria authorizing certain premiums of
  115         certain service warranty associations to exceed their
  116         specified net assets limitations; revising
  117         requirements relating to contractual liability
  118         policies that insure warranty associations; providing
  119         an effective date.
  121  Be It Enacted by the Legislature of the State of Florida:
  123         Section 1. Paragraph (b) of subsection (6) of section
  124  215.555, Florida Statutes, is amended to read:
  125         215.555 Florida Hurricane Catastrophe Fund.—
  126         (6) REVENUE BONDS.—
  127         (b) Emergency assessments.—
  128         1. If the board determines that the amount of revenue
  129  produced under subsection (5) is insufficient to fund the
  130  obligations, costs, and expenses of the fund and the
  131  corporation, including repayment of revenue bonds and that
  132  portion of the debt service coverage not met by reimbursement
  133  premiums, the board shall direct the Office of Insurance
  134  Regulation to levy, by order, an emergency assessment on direct
  135  premiums for all property and casualty lines of business in this
  136  state, including property and casualty business of surplus lines
  137  insurers regulated under part VIII of chapter 626, but not
  138  including any workers’ compensation premiums or medical
  139  malpractice premiums. As used in this subsection, the term
  140  “property and casualty business” includes all lines of business
  141  identified on Form 2, Exhibit of Premiums and Losses, in the
  142  annual statement required of authorized insurers by s. 624.424
  143  and any rule adopted under this section, except for those lines
  144  identified as accident and health insurance and except for
  145  policies written under the National Flood Insurance Program. The
  146  assessment shall be specified as a percentage of direct written
  147  premium and is subject to annual adjustments by the board in
  148  order to meet debt obligations. The same percentage shall apply
  149  to all policies in lines of business subject to the assessment
  150  issued or renewed during the 12-month period beginning on the
  151  effective date of the assessment.
  152         2. A premium is not subject to an annual assessment under
  153  this paragraph in excess of 6 percent of premium with respect to
  154  obligations arising out of losses attributable to any one
  155  contract year, and a premium is not subject to an aggregate
  156  annual assessment under this paragraph in excess of 10 percent
  157  of premium. An annual assessment under this paragraph shall
  158  continue as long as the revenue bonds issued with respect to
  159  which the assessment was imposed are outstanding, including any
  160  bonds the proceeds of which were used to refund the revenue
  161  bonds, unless adequate provision has been made for the payment
  162  of the bonds under the documents authorizing issuance of the
  163  bonds.
  164         3. Emergency assessments shall be collected from
  165  policyholders. Emergency assessments shall be remitted by
  166  insurers as a percentage of direct written premium for the
  167  preceding calendar quarter as specified in the order from the
  168  Office of Insurance Regulation. The office shall verify the
  169  accurate and timely collection and remittance of emergency
  170  assessments and shall report the information to the board in a
  171  form and at a time specified by the board. Each insurer
  172  collecting assessments shall provide the information with
  173  respect to premiums and collections as may be required by the
  174  office to enable the office to monitor and verify compliance
  175  with this paragraph.
  176         4. With respect to assessments of surplus lines premiums,
  177  each surplus lines agent shall collect the assessment at the
  178  same time as the agent collects the surplus lines tax required
  179  by s. 626.932, and the surplus lines agent shall remit the
  180  assessment to the Florida Surplus Lines Service Office created
  181  by s. 626.921 at the same time as the agent remits the surplus
  182  lines tax to the Florida Surplus Lines Service Office. The
  183  emergency assessment on each insured procuring coverage and
  184  filing under s. 626.938 shall be remitted by the insured to the
  185  Florida Surplus Lines Service Office at the time the insured
  186  pays the surplus lines tax to the Florida Surplus Lines Service
  187  Office. The Florida Surplus Lines Service Office shall remit the
  188  collected assessments to the fund or corporation as provided in
  189  the order levied by the Office of Insurance Regulation. The
  190  Florida Surplus Lines Service Office shall verify the proper
  191  application of such emergency assessments and shall assist the
  192  board in ensuring the accurate and timely collection and
  193  remittance of assessments as required by the board. The Florida
  194  Surplus Lines Service Office shall annually calculate the
  195  aggregate written premium on property and casualty business,
  196  other than workers’ compensation and medical malpractice,
  197  procured through surplus lines agents and insureds procuring
  198  coverage and filing under s. 626.938 and shall report the
  199  information to the board in a form and at a time specified by
  200  the board.
  201         5. Any assessment authority not used for a particular
  202  contract year may be used for a subsequent contract year. If,
  203  for a subsequent contract year, the board determines that the
  204  amount of revenue produced under subsection (5) is insufficient
  205  to fund the obligations, costs, and expenses of the fund and the
  206  corporation, including repayment of revenue bonds and that
  207  portion of the debt service coverage not met by reimbursement
  208  premiums, the board shall direct the Office of Insurance
  209  Regulation to levy an emergency assessment up to an amount not
  210  exceeding the amount of unused assessment authority from a
  211  previous contract year or years, plus an additional 4 percent
  212  provided that the assessments in the aggregate do not exceed the
  213  limits specified in subparagraph 2.
  214         6. The assessments otherwise payable to the corporation
  215  under this paragraph shall be paid to the fund unless and until
  216  the Office of Insurance Regulation and the Florida Surplus Lines
  217  Service Office have received from the corporation and the fund a
  218  notice, which shall be conclusive and upon which they may rely
  219  without further inquiry, that the corporation has issued bonds
  220  and the fund has no agreements in effect with local governments
  221  under paragraph (c). On or after the date of the notice and
  222  until the date the corporation has no bonds outstanding, the
  223  fund shall have no right, title, or interest in or to the
  224  assessments, except as provided in the fund’s agreement with the
  225  corporation.
  226         7. Emergency assessments are not premium and are not
  227  subject to the premium tax, to the surplus lines tax, to any
  228  fees, or to any commissions. An insurer is liable for all
  229  assessments that it collects and must treat the failure of an
  230  insured to pay an assessment as a failure to pay the premium. An
  231  insurer is not liable for uncollectible assessments.
  232         8. When an insurer is required to return an unearned
  233  premium, it shall also return any collected assessment
  234  attributable to the unearned premium. A credit adjustment to the
  235  collected assessment may be made by the insurer with regard to
  236  future remittances that are payable to the fund or corporation,
  237  but the insurer is not entitled to a refund.
  238         9. When a surplus lines insured or an insured who has
  239  procured coverage and filed under s. 626.938 is entitled to the
  240  return of an unearned premium, the Florida Surplus Lines Service
  241  Office shall provide a credit or refund to the agent or such
  242  insured for the collected assessment attributable to the
  243  unearned premium before prior to remitting the emergency
  244  assessment collected to the fund or corporation.
  245         10. The exemption of medical malpractice insurance premiums
  246  from emergency assessments under this paragraph is repealed May
  247  31, 2013, and medical malpractice insurance premiums shall be
  248  subject to emergency assessments attributable to loss events
  249  occurring in the contract years commencing on June 1, 2013.
  250         Section 2. Subsection (1) of section 316.646, Florida
  251  Statutes, is amended, and subsection (5) is added to that
  252  section, to read:
  253         316.646 Security required; proof of security and display
  254  thereof; dismissal of cases.—
  255         (1) Any person required by s. 324.022 to maintain property
  256  damage liability security, required by s. 324.023 to maintain
  257  liability security for bodily injury or death, or required by s.
  258  627.733 to maintain personal injury protection security on a
  259  motor vehicle shall have in his or her immediate possession at
  260  all times while operating such motor vehicle proper proof of
  261  maintenance of the required security. Such proof shall be a
  262  uniform proof-of-insurance card, in paper or electronic format,
  263  in a form prescribed by the department, a valid insurance
  264  policy, an insurance policy binder, a certificate of insurance,
  265  or such other proof as may be prescribed by the department.
  266         (5) The department may adopt rules to implement this
  267  section.
  268         Section 3. Paragraph (a) of subsection (5) of section
  269  320.02, Florida Statutes, is amended to read:
  270         320.02 Registration required; application for registration;
  271  forms.—
  272         (5)(a) Proof that personal injury protection benefits have
  273  been purchased when required under s. 627.733, that property
  274  damage liability coverage has been purchased as required under
  275  s. 324.022, that bodily injury or death coverage has been
  276  purchased if required under s. 324.023, and that combined bodily
  277  liability insurance and property damage liability insurance have
  278  been purchased when required under s. 627.7415 shall be provided
  279  in the manner prescribed by law by the applicant at the time of
  280  application for registration of any motor vehicle that is
  281  subject to such requirements. The issuing agent shall refuse to
  282  issue registration if such proof of purchase is not provided.
  283  Insurers shall furnish uniform proof-of-purchase cards, in paper
  284  or electronic format, in a form prescribed by the department and
  285  shall include the name of the insured’s insurance company, the
  286  coverage identification number, and the make, year, and vehicle
  287  identification number of the vehicle insured. The card shall
  288  contain a statement notifying the applicant of the penalty
  289  specified in s. 316.646(4). The card or insurance policy,
  290  insurance policy binder, or certificate of insurance or a
  291  photocopy of any of these; an affidavit containing the name of
  292  the insured’s insurance company, the insured’s policy number,
  293  and the make and year of the vehicle insured; or such other
  294  proof as may be prescribed by the department shall constitute
  295  sufficient proof of purchase. If an affidavit is provided as
  296  proof, it shall be in substantially the following form:
  298  Under penalty of perjury, I ...(Name of insured)... do hereby
  299  certify that I have ...(Personal Injury Protection, Property
  300  Damage Liability, and, when required, Bodily Injury
  301  Liability)... Insurance currently in effect with ...(Name of
  302  insurance company)... under ...(policy number)... covering
  303  ...(make, year, and vehicle identification number of
  304  vehicle).... ...(Signature of Insured)...
  306  Such affidavit shall include the following warning:
  313  When an application is made through a licensed motor vehicle
  314  dealer as required in s. 319.23, the original or a photostatic
  315  copy of such card, insurance policy, insurance policy binder, or
  316  certificate of insurance or the original affidavit from the
  317  insured shall be forwarded by the dealer to the tax collector of
  318  the county or the Department of Highway Safety and Motor
  319  Vehicles for processing. By executing the aforesaid affidavit,
  320  no licensed motor vehicle dealer will be liable in damages for
  321  any inadequacy, insufficiency, or falsification of any statement
  322  contained therein. A card shall also indicate the existence of
  323  any bodily injury liability insurance voluntarily purchased.
  324         Section 4. Paragraph (f) of subsection (1) of section
  325  624.413, Florida Statutes, is amended to read:
  326         624.413 Application for certificate of authority.—
  327         (1) To apply for a certificate of authority, an insurer
  328  shall file its application therefor with the office, upon a form
  329  adopted by the commission and furnished by the office, showing
  330  its name; location of its home office and, if an alien insurer,
  331  its principal office in the United States; kinds of insurance to
  332  be transacted; state or country of domicile; and such additional
  333  information as the commission reasonably requires, together with
  334  the following documents:
  335         (f) If a foreign or alien insurer, a copy of the report of
  336  the most recent examination of the insurer certified by the
  337  public official having supervision of insurance in its state of
  338  domicile or of entry into the United States. The end of the most
  339  recent year covered by the examination must be within the 5-year
  340  3-year period preceding the date of application. In lieu of the
  341  certified examination report, the office may accept an audited
  342  certified public accountant’s report prepared on a basis
  343  consistent with the insurance laws of the insurer’s state of
  344  domicile, certified by the public official having supervision of
  345  insurance in its state of domicile or of entry into the United
  346  States.
  347         Section 5. Paragraph (d) of subsection (1) of section
  348  626.321, Florida Statutes, is amended to read:
  349         626.321 Limited licenses.—
  350         (1) The department shall issue to a qualified applicant a
  351  license as agent authorized to transact a limited class of
  352  business in any of the following categories of limited lines
  353  insurance:
  354         (d) Motor vehicle rental insurance.—
  355         1. License covering only insurance of the risks set forth
  356  in this paragraph when offered, sold, or solicited with and
  357  incidental to the rental or lease of a motor vehicle and which
  358  applies only to the motor vehicle that is the subject of the
  359  lease or rental agreement and the occupants of the motor
  360  vehicle:
  361         a. Excess motor vehicle liability insurance providing
  362  coverage in excess of the standard liability limits provided by
  363  the lessor in the lessor’s lease to a person renting or leasing
  364  a motor vehicle from the licensee’s employer for liability
  365  arising in connection with the negligent operation of the leased
  366  or rented motor vehicle.
  367         b. Insurance covering the liability of the lessee to the
  368  lessor for damage to the leased or rented motor vehicle.
  369         c. Insurance covering the loss of or damage to baggage,
  370  personal effects, or travel documents of a person renting or
  371  leasing a motor vehicle.
  372         d. Insurance covering accidental personal injury or death
  373  of the lessee and any passenger who is riding or driving with
  374  the covered lessee in the leased or rented motor vehicle.
  375         2. Insurance under a motor vehicle rental insurance license
  376  may be issued only if the lease or rental agreement is for no
  377  more than 60 days, the lessee is not provided coverage for more
  378  than 60 consecutive days per lease period, and the lessee is
  379  given written notice that his or her personal insurance policy
  380  providing coverage on an owned motor vehicle may provide
  381  coverage of such risks and that the purchase of the insurance is
  382  not required in connection with the lease or rental of a motor
  383  vehicle. If the lease is extended beyond 60 days, the coverage
  384  may be extended one time only for a period not to exceed an
  385  additional 60 days. Insurance may be provided to the lessee as
  386  an additional insured on a policy issued to the licensee’s
  387  employer.
  388         3. The license may be issued only to the full-time salaried
  389  employee of a licensed general lines agent or to a business
  390  entity that offers motor vehicles for rent or lease if insurance
  391  sales activities authorized by the license are in connection
  392  with and incidental to the rental or lease of a motor vehicle.
  393         a. A license issued to a business entity that offers motor
  394  vehicles for rent or lease encompasses each office, branch
  395  office, employee, or place of business making use of the
  396  entity’s business name in order to offer, solicit, and sell
  397  insurance pursuant to this paragraph.
  398         b. The application for licensure must list the name,
  399  address, and phone number for each office, branch office, or
  400  place of business that is to be covered by the license. The
  401  licensee shall notify the department of the name, address, and
  402  phone number of any new location that is to be covered by the
  403  license before the new office, branch office, or place of
  404  business engages in the sale of insurance pursuant to this
  405  paragraph. The licensee must notify the department within 30
  406  days after closing or terminating an office, branch office, or
  407  place of business. Upon receipt of the notice, the department
  408  shall delete the office, branch office, or place of business
  409  from the license.
  410         c. A licensed and appointed entity is directly responsible
  411  and accountable for all acts of the licensee’s employees.
  412         Section 6. Section 626.601, Florida Statutes, is amended to
  413  read:
  414         626.601 Improper conduct; inquiry; fingerprinting.—
  415         (1) The department or office may, upon its own motion or
  416  upon a written complaint signed by any interested person and
  417  filed with the department or office, inquire into any alleged
  418  improper conduct of any licensed, approved, or certified
  419  insurance agency, agent, adjuster, service representative,
  420  managing general agent, customer representative, title insurance
  421  agent, title insurance agency, mediator, neutral evaluator,
  422  continuing education course provider, instructor, school
  423  official, or monitor group under this code. The department or
  424  office may thereafter initiate an investigation of any such
  425  individual or entity licensee if it has reasonable cause to
  426  believe that the individual or entity licensee has violated any
  427  provision of the insurance code. During the course of its
  428  investigation, the department or office shall contact the
  429  individual or entity licensee being investigated unless it
  430  determines that contacting such individual or entity person
  431  could jeopardize the successful completion of the investigation
  432  or cause injury to the public.
  433         (2) In the investigation by the department or office of the
  434  alleged misconduct, the individual or entity licensee shall,
  435  whenever so required by the department or office, cause the
  436  individual’s or entity’s his or her books and records to be open
  437  for inspection for the purpose of such inquiries.
  438         (3) The complaints against any individual or entity
  439  licensee may be informally alleged and need not be in any such
  440  language as is necessary to charge a crime on an indictment or
  441  information.
  442         (4) The expense for any hearings or investigations under
  443  this law, as well as the fees and mileage of witnesses, may be
  444  paid out of the appropriate fund.
  445         (5) If the department or office, after investigation, has
  446  reason to believe that an individual or entity a licensee may
  447  have been found guilty of or pleaded guilty or nolo contendere
  448  to a felony or a crime related to the business of insurance in
  449  this or any other state or jurisdiction, the department or
  450  office may require the individual licensee to file with the
  451  department or office a complete set of his or her fingerprints,
  452  which shall be accompanied by the fingerprint processing fee set
  453  forth in s. 624.501. The fingerprints shall be taken by an
  454  authorized law enforcement agency or other department-approved
  455  entity.
  456         (6) The complaint and any information obtained pursuant to
  457  the investigation by the department or office are confidential
  458  and are exempt from the provisions of s. 119.07, unless the
  459  department or office files a formal administrative complaint,
  460  emergency order, or consent order against the individual or
  461  entity licensee. Nothing in This subsection does not shall be
  462  construed to prevent the department or office from disclosing
  463  the complaint or such information as it deems necessary to
  464  conduct the investigation, to update the complainant as to the
  465  status and outcome of the complaint, or to share such
  466  information with any law enforcement agency.
  467         Section 7. Paragraphs (i), (j), and (k) of subsection (1)
  468  of section 626.9914, Florida Statutes, are amended to read:
  469         626.9914 Suspension, revocation, denial, or nonrenewal of
  470  viatical settlement provider license; grounds; administrative
  471  fine.—
  472         (1) The office shall suspend, revoke, deny, or refuse to
  473  renew the license of any viatical settlement provider if the
  474  office finds that the licensee:
  475         (i) Employs any person who materially influences the
  476  licensee’s conduct and who fails to meet the requirements of
  477  this act; or
  478         (j) No longer meets the requirements for initial licensure;
  479  or
  480         (k) Obtains or utilizes life expectancies from life
  481  expectancy providers who are not registered with the office
  482  pursuant to this act.
  483         Section 8. Section 626.99175, Florida Statutes, is amended
  484  to read:
  485         626.99175 Life expectancy providers; registration required;
  486  denial, suspension, revocation.—
  487         (1) After July 1, 2006, a person may not perform the
  488  functions of a life expectancy provider without first having
  489  registered as a life expectancy provider, except as provided in
  490  subsection (6).
  491         (2) Application for registration as a life expectancy
  492  provider must be made to the office by the applicant on a form
  493  prescribed by the office, under oath and signed by the
  494  applicant. The application must be accompanied by a fee of $500.
  495         (3) A completed application shall be evidenced on a form
  496  and in a manner prescribed by the office and shall require the
  497  registered life expectancy provider to update such information
  498  and renew such registration as required by the office.
  499         (4) In the application, the applicant must provide all of
  500  the following:
  501         (a) The full name, age, residence address, and business
  502  address, and all occupations engaged in by the applicant during
  503  the 5 years preceding the date of the application.
  504         (b) A copy of the applicant’s basic organizational
  505  documents, if any, including the articles of incorporation,
  506  articles of association, partnership agreement, trust agreement,
  507  or other similar documents, together with all amendments to such
  508  documents.
  509         (c) Copies of all bylaws, rules, regulations, or similar
  510  documents regulating the conduct of the applicant’s internal
  511  affairs.
  512         (d) A list showing the name, business and residence
  513  addresses, and official position of each individual who is
  514  responsible for conduct of the applicant’s affairs, including,
  515  but not limited to, any member of the board of directors, board
  516  of trustees, executive committee, or other governing board or
  517  committee and any other person or entity owning or having the
  518  right to acquire 10 percent or more of the voting securities of
  519  the applicant, and any person performing life expectancies by
  520  the applicant.
  521         (e) A sworn biographical statement on forms supplied by the
  522  office with respect to each individual identified under
  523  paragraph (d), including whether such individual has been
  524  associated with any other life expectancy provider or has
  525  performed any services for a person in the business of viatical
  526  settlements.
  527         (f) A sworn statement of any criminal and civil actions
  528  pending or final against the registrant or any individual
  529  identified under paragraph (d).
  530         (g) A general description of the following policies and
  531  procedures covering all life expectancy determination criteria
  532  and protocols:
  533         1. The plan or plans of policies and procedures used to
  534  determine life expectancies.
  535         2. A description of the training, including continuing
  536  training, of the individuals who determine life expectancies.
  537         3. A description of how the life expectancy provider
  538  updates its manuals, underwriting guides, mortality tables, and
  539  other reference works and ensures that the provider bases its
  540  determination of life expectancies on current data.
  541         (h) A plan for assuring confidentiality of personal,
  542  medical, and financial information in accordance with federal
  543  and state laws.
  544         (i) An anti-fraud plan as required pursuant to s.
  545  626.99278.
  546         (j) A list of any agreements, contracts, or any other
  547  arrangement to provide life expectancies to a viatical
  548  settlement provider, viatical settlement broker, or any other
  549  person in the business of viatical settlements in connection
  550  with any viatical settlement contract or viatical settlement
  551  investment.
  552         (5) As part of the application, and on or before March 1 of
  553  every 3 years thereafter, a registered life expectancy provider
  554  shall file with the office an audit of all life expectancies by
  555  the life expectancy provider for the 5 calendar years
  556  immediately preceding such audit, which audit shall be conducted
  557  and certified by a nationally recognized actuarial firm and
  558  shall include only the following:
  559         (a) A mortality table.
  560         (b) The number, percentage, and an actual-to-expected ratio
  561  of life expectancies in the following categories: life
  562  expectancies of less than 24 months, life expectancies of 25
  563  months to 48 months, life expectancies of 49 months to 72
  564  months, life expectancies of 73 months to 108 months, life
  565  expectancies of 109 months to 144 months, life expectancies of
  566  145 months to 180 months, and life expectancies of more than 180
  567  months.
  568         (6)A No viatical settlement broker, viatical settlement
  569  provider, or insurance agent in the business of viatical
  570  settlements in this state may not shall directly or indirectly
  571  own or be an officer, director, or employee of a life expectancy
  572  provider.
  573         (7) Each registered life expectancy provider shall provide
  574  the office, as applicable, at least 30 days’ advance notice of
  575  any change in the registrant’s name, residence address,
  576  principal business address, or mailing address.
  577         (8) A person required to be registered by this section
  578  shall for 5 years retain copies of all life expectancies and
  579  supporting documents and medical records unless those personal
  580  medical records are subject to different retention or
  581  destruction requirements of a federal or state personal health
  582  information law.
  583         (9) An application for life expectancy provider
  584  registration shall be approved or denied by the commissioner
  585  within 60 calendar days following receipt of a completed
  586  application by the commissioner. The office shall notify the
  587  applicant that the application is complete. A completed
  588  application that is not approved or denied in 60 calendar days
  589  following its receipt shall be deemed approved.
  590         (10) The office may, in its discretion, deny the
  591  application for a life expectancy provider registration or
  592  suspend, revoke, or refuse to renew or continue the registration
  593  of a life expectancy provider if the office finds:
  594         (a) Any cause for which registration could have been
  595  refused had it then existed and been known to the office;
  596         (b) A violation of any provision of this code or of any
  597  other law applicable to the applicant or registrant;
  598         (c) A violation of any lawful order or rule of the
  599  department, commission, or office; or
  600         (d) That the applicant or registrant:
  601         1. Has been found guilty of or pled guilty or nolo
  602  contendere to a felony or a crime punishable by imprisonment of
  603  1 year or more under the law of the United States of America or
  604  of any state thereof or under the law of any other country;
  605         2. Has knowingly and willfully aided, assisted, procured,
  606  advised, or abetted any person in the violation of a provision
  607  of the insurance code or any order or rule of the department,
  608  commission, or office;
  609         3. Has knowingly and with intent to defraud, provided a
  610  life expectancy that does not conform to an applicant’s or
  611  registrant’s general practice;
  612         4. Does not have a good business reputation or does not
  613  have experience, training, or education that qualifies the
  614  applicant or registrant to conduct the business of a life
  615  expectancy provider; or
  616         5. Has demonstrated a lack of fitness or trustworthiness to
  617  engage in the business of issuing life expectancies.
  618         (11) The office may, in lieu of or in addition to any
  619  suspension or revocation, assess an administrative fine not to
  620  exceed $2,500 for each nonwillful violation or $10,000 for each
  621  willful violation by a registered life expectancy provider. The
  622  office may also place a registered life expectancy provider on
  623  probation for a period not to exceed 2 years.
  624         (12) It is a violation of this section for a person to
  625  represent, orally or in writing, that a life expectancy
  626  provider’s registration pursuant to this act is in any way a
  627  recommendation or approval of the entity or means that the
  628  qualifications or abilities have in any way been approved of.
  629         (13) The Financial Services Commission may, by rule,
  630  require that all or part of the statements or filings required
  631  under this section be submitted by electronic means and in a
  632  computer-readable format specified by the commission.
  633         Section 9. Section 626.9919, Florida Statutes, is amended
  634  to read:
  635         626.9919 Notice of change of licensee or registrant’s
  636  address or name.—Each viatical settlement provider licensee and
  637  registered life expectancy provider must provide the office at
  638  least 30 days’ advance notice of any change in the licensee’s or
  639  registrant’s name, residence address, principal business
  640  address, or mailing address.
  641         Section 10. Section 626.992, Florida Statutes, is amended
  642  to read:
  643         626.992 Use of licensed viatical settlement providers and,
  644  viatical settlement brokers, and registered life expectancy
  645  providers required.—
  646         (1) A licensed viatical settlement provider may not use any
  647  person to perform the functions of a viatical settlement broker
  648  as defined in this act unless such person holds a current, valid
  649  life agent license and has appointed himself or herself in
  650  conformance with this chapter.
  651         (2) A viatical settlement broker may not use any person to
  652  perform the functions of a viatical settlement provider as
  653  defined in this act unless such person holds a current, valid
  654  license as a viatical settlement provider.
  655         (3) After July 1, 2006, a person may not operate as a life
  656  expectancy provider unless such person is registered as a life
  657  expectancy provider pursuant to this act.
  658         (4) After July 1, 2006, a viatical settlement provider,
  659  viatical settlement broker, or any other person in the business
  660  of viatical settlements may not obtain life expectancies from a
  661  person who is not registered as a life expectancy provider
  662  pursuant to this act.
  663         Section 11. Section 626.9925, Florida Statutes, is amended
  664  to read:
  665         626.9925 Rules.—The commission may adopt rules to
  666  administer this act, including rules establishing standards for
  667  evaluating advertising by licensees; rules providing for the
  668  collection of data, for disclosures to viators, and for the
  669  reporting of life expectancies, and for the registration of life
  670  expectancy providers; and rules defining terms used in this act
  671  and prescribing recordkeeping requirements relating to executed
  672  viatical settlement contracts.
  673         Section 12. Section 626.99278, Florida Statutes, is amended
  674  to read:
  675         626.99278 Viatical provider anti-fraud plan.—Every licensed
  676  viatical settlement provider and registered life expectancy
  677  provider must adopt an anti-fraud plan and file it with the
  678  Division of Insurance Fraud of the department. Each anti-fraud
  679  plan shall include:
  680         (1) A description of the procedures for detecting and
  681  investigating possible fraudulent acts and procedures for
  682  resolving material inconsistencies between medical records and
  683  insurance applications.
  684         (2) A description of the procedures for the mandatory
  685  reporting of possible fraudulent insurance acts and prohibited
  686  practices set forth in s. 626.99275 to the Division of Insurance
  687  Fraud of the department.
  688         (3) A description of the plan for anti-fraud education and
  689  training of its underwriters or other personnel.
  690         (4) A written description or chart outlining the
  691  organizational arrangement of the anti-fraud personnel who are
  692  responsible for the investigation and reporting of possible
  693  fraudulent insurance acts and for the investigation of
  694  unresolved material inconsistencies between medical records and
  695  insurance applications.
  696         (5) For viatical settlement providers, a description of the
  697  procedures used to perform initial and continuing review of the
  698  accuracy of life expectancies used in connection with a viatical
  699  settlement contract or viatical settlement investment.
  700         Section 13. Paragraph (b) of subsection (2) of section
  701  627.062, Florida Statutes, is amended to read:
  702         627.062 Rate standards.—
  703         (2) As to all such classes of insurance:
  704         (b) Upon receiving a rate filing, the office shall review
  705  the filing to determine if a rate is excessive, inadequate, or
  706  unfairly discriminatory. In making that determination, the
  707  office shall, in accordance with generally accepted and
  708  reasonable actuarial techniques, consider the following factors:
  709         1. Past and prospective loss experience within and without
  710  this state.
  711         2. Past and prospective expenses.
  712         3. The degree of competition among insurers for the risk
  713  insured.
  714         4. Investment income reasonably expected by the insurer,
  715  consistent with the insurer’s investment practices, from
  716  investable premiums anticipated in the filing, plus any other
  717  expected income from currently invested assets representing the
  718  amount expected on unearned premium reserves and loss reserves.
  719  The commission may adopt rules using reasonable techniques of
  720  actuarial science and economics to specify the manner in which
  721  insurers calculate investment income attributable to classes of
  722  insurance written in this state and the manner in which
  723  investment income is used to calculate insurance rates. Such
  724  manner must contemplate allowances for an underwriting profit
  725  factor and full consideration of investment income which produce
  726  a reasonable rate of return; however, investment income from
  727  invested surplus may not be considered.
  728         5. The reasonableness of the judgment reflected in the
  729  filing.
  730         6. Dividends, savings, or unabsorbed premium deposits
  731  allowed or returned to Florida policyholders, members, or
  732  subscribers.
  733         7. The adequacy of loss reserves.
  734         8. The cost of reinsurance. The office may not disapprove a
  735  rate as excessive solely due to the insurer having obtained
  736  catastrophic reinsurance to cover the insurer’s estimated 250
  737  year probable maximum loss or any lower level of loss.
  738         9. Trend factors, including trends in actual losses per
  739  insured unit for the insurer making the filing.
  740         10. Conflagration and catastrophe hazards, if applicable.
  741         11. Projected hurricane losses, if applicable, which must
  742  be estimated using a model or method, or models or an average or
  743  weighted average of models, independently found to be acceptable
  744  or reliable by the Florida Commission on Hurricane Loss
  745  Projection Methodology, and as further provided in s. 627.0628.
  746         12. A reasonable margin for underwriting profit and
  747  contingencies.
  748         13. The cost of medical services, if applicable.
  749         14. Other relevant factors that affect the frequency or
  750  severity of claims or expenses.
  751         Section 14. Paragraph (d) of subsection (3) of section
  752  627.0628, Florida Statutes, is amended to read:
  753         627.0628 Florida Commission on Hurricane Loss Projection
  754  Methodology; public records exemption; public meetings
  755  exemption.—
  757         (d) With respect to a rate filing under s. 627.062, an
  758  insurer shall employ and may not modify or adjust actuarial
  759  methods, principles, standards, models, or output ranges found
  760  by the commission to be accurate or reliable in determining
  761  hurricane loss factors for use in a rate filing under s.
  762  627.062. An insurer shall employ and may not modify or adjust
  763  models found by the commission to be accurate or reliable in
  764  determining probable maximum loss levels pursuant to paragraph
  765  (b) with respect to a rate filing under s. 627.062 made more
  766  than 120 60 days after the commission has made such findings.
  767  This paragraph does not prohibit an insurer from averaging
  768  together the model results or output ranges or using weighted
  769  averages for the purposes of a rate filing under s. 627.062.
  770         Section 15. Present subsections (2), (3), and (4) of
  771  section 627.072, Florida Statutes, are renumbered as subsections
  772  (3), (4), and (5), respectively, and a new subsection (2) is
  773  added to that section, to read:
  774         627.072 Making and use of rates.—
  775         (2) A retrospective rating plan may contain a provision
  776  that allows negotiation between the employer and the insurer to
  777  determine the retrospective rating factors used to calculate the
  778  premium for employers having exposure in more than one state and
  779  an estimated annual countrywide standard premium of $1 million
  780  or more for workers’ compensation.
  781         Section 16. Subsection (2) of section 627.281, Florida
  782  Statutes, is amended to read:
  783         627.281 Appeal from rating organization; workers’
  784  compensation and employer’s liability insurance filings.—
  785         (2) If such appeal is based upon the failure of the rating
  786  organization to make a filing on behalf of such member or
  787  subscriber which is based on a system of expense provisions
  788  which differs, in accordance with the right granted in s.
  789  627.072(3) 627.072(2), from the system of expense provisions
  790  included in a filing made by the rating organization, the office
  791  shall, if it grants the appeal, order the rating organization to
  792  make the requested filing for use by the appellant. In deciding
  793  such appeal, the office shall apply the applicable standards set
  794  forth in ss. 627.062 and 627.072.
  795         Section 17. Section 627.3519, Florida Statutes, is
  796  repealed.
  797         Section 18. Paragraph (b) of subsection (2) of section
  798  627.4133, Florida Statutes, is amended to read:
  799         627.4133 Notice of cancellation, nonrenewal, or renewal
  800  premium.—
  801         (2) With respect to any personal lines or commercial
  802  residential property insurance policy, including, but not
  803  limited to, any homeowner’s, mobile home owner’s, farmowner’s,
  804  condominium association, condominium unit owner’s, apartment
  805  building, or other policy covering a residential structure or
  806  its contents:
  807         (b) The insurer shall give the first-named insured written
  808  notice of nonrenewal, cancellation, or termination at least 100
  809  days before the effective date of the nonrenewal, cancellation,
  810  or termination. However, the insurer shall give at least 100
  811  days’ written notice, or written notice by June 1, whichever is
  812  earlier, for any nonrenewal, cancellation, or termination that
  813  would be effective between June 1 and November 30. The notice
  814  must include the reason or reasons for the nonrenewal,
  815  cancellation, or termination, except that:
  816         1. The insurer shall give the first-named insured written
  817  notice of nonrenewal, cancellation, or termination at least 120
  818  days prior to the effective date of the nonrenewal,
  819  cancellation, or termination for a first-named insured whose
  820  residential structure has been insured by that insurer or an
  821  affiliated insurer for at least a 5-year period immediately
  822  prior to the date of the written notice.
  823         1.2. If cancellation is for nonpayment of premium, at least
  824  10 days’ written notice of cancellation accompanied by the
  825  reason therefor must be given. As used in this subparagraph, the
  826  term “nonpayment of premium” means failure of the named insured
  827  to discharge when due her or his obligations for in connection
  828  with the payment of premiums on a policy or any installment of
  829  such premium, whether the premium is payable directly to the
  830  insurer or its agent or indirectly under any premium finance
  831  plan or extension of credit, or failure to maintain membership
  832  in an organization if such membership is a condition precedent
  833  to insurance coverage. The term also means the failure of a
  834  financial institution to honor an insurance applicant’s check
  835  after delivery to a licensed agent for payment of a premium,
  836  even if the agent has previously delivered or transferred the
  837  premium to the insurer. If a dishonored check represents the
  838  initial premium payment, the contract and all contractual
  839  obligations are void ab initio unless the nonpayment is cured
  840  within the earlier of 5 days after actual notice by certified
  841  mail is received by the applicant or 15 days after notice is
  842  sent to the applicant by certified mail or registered mail., and
  843  If the contract is void, any premium received by the insurer
  844  from a third party must be refunded to that party in full.
  845         2.3. If such cancellation or termination occurs during the
  846  first 90 days the insurance is in force and the insurance is
  847  canceled or terminated for reasons other than nonpayment of
  848  premium, at least 20 days’ written notice of cancellation or
  849  termination accompanied by the reason therefor must be given
  850  unless there has been a material misstatement or
  851  misrepresentation or failure to comply with the underwriting
  852  requirements established by the insurer.
  853         3. After the policy has been in effect for 90 days, the
  854  policy may not be canceled by the insurer unless there has been
  855  a material misstatement, a nonpayment of premium, a failure to
  856  comply with underwriting requirements established by the insurer
  857  within 90 days after the date of effectuation of coverage, or a
  858  substantial change in the risk covered by the policy or if the
  859  cancellation is for all insureds under such policies for a given
  860  class of insureds. This subparagraph does not apply to
  861  individually rated risks having a policy term of less than 90
  862  days.
  863         4. The requirement for providing written notice by June 1
  864  of any nonrenewal that would be effective between June 1 and
  865  November 30 does not apply to the following situations, but the
  866  insurer remains subject to the requirement to provide such
  867  notice at least 100 days before the effective date of
  868  nonrenewal:
  869         a. A policy that is nonrenewed due to a revision in the
  870  coverage for sinkhole losses and catastrophic ground cover
  871  collapse pursuant to s. 627.706.
  872         4.b. A policy that is nonrenewed by Citizens Property
  873  Insurance Corporation, pursuant to s. 627.351(6), for a policy
  874  that has been assumed by an authorized insurer offering
  875  replacement coverage to the policyholder is exempt from the
  876  notice requirements of paragraph (a) and this paragraph. In such
  877  cases, the corporation must give the named insured written
  878  notice of nonrenewal at least 45 days before the effective date
  879  of the nonrenewal.
  881  After the policy has been in effect for 90 days, the policy may
  882  not be canceled by the insurer unless there has been a material
  883  misstatement, a nonpayment of premium, a failure to comply with
  884  underwriting requirements established by the insurer within 90
  885  days after the date of effectuation of coverage, or a
  886  substantial change in the risk covered by the policy or if the
  887  cancellation is for all insureds under such policies for a given
  888  class of insureds. This paragraph does not apply to individually
  889  rated risks having a policy term of less than 90 days.
  890         5. Notwithstanding any other provision of law, an insurer
  891  may cancel or nonrenew a property insurance policy after at
  892  least 45 days’ notice if the office finds that the early
  893  cancellation of some or all of the insurer’s policies is
  894  necessary to protect the best interests of the public or
  895  policyholders and the office approves the insurer’s plan for
  896  early cancellation or nonrenewal of some or all of its policies.
  897  The office may base such finding upon the financial condition of
  898  the insurer, lack of adequate reinsurance coverage for hurricane
  899  risk, or other relevant factors. The office may condition its
  900  finding on the consent of the insurer to be placed under
  901  administrative supervision pursuant to s. 624.81 or to the
  902  appointment of a receiver under chapter 631.
  903         6. A policy covering both a home and motor vehicle may be
  904  nonrenewed for any reason applicable to either the property or
  905  motor vehicle insurance after providing 90 days’ notice.
  906         Section 19. Subsection (1) of section 627.4137, Florida
  907  Statutes, is amended to read:
  908         627.4137 Disclosure of certain information required.—
  909         (1) Each insurer that provides which does or may provide
  910  liability insurance coverage to pay all or a portion of any
  911  claim that which might be made shall provide, within 30 days
  912  after of the written request of the claimant, a statement, under
  913  oath, of a corporate officer or the insurer’s claims manager, or
  914  superintendent, or licensed company adjuster setting forth the
  915  following information with regard to each known policy of
  916  insurance, including excess or umbrella insurance:
  917         (a) The name of the insurer.
  918         (b) The name of each insured.
  919         (c) The limits of the liability coverage.
  920         (d) A statement of any policy or coverage defense that the
  921  which such insurer reasonably believes is available to the such
  922  insurer at the time of filing such statement.
  923         (e) A copy of the policy.
  925  In addition, the insured, or her or his insurance agent, upon
  926  written request of the claimant or the claimant’s attorney,
  927  shall disclose the name and coverage of each known insurer to
  928  the claimant and shall forward such request for information as
  929  required by this subsection to all affected insurers. The
  930  insurer shall then supply the information required in this
  931  subsection to the claimant within 30 days after of receipt of
  932  such request.
  933         Section 20. Subsection (1) of section 627.421, Florida
  934  Statutes, is amended to read:
  935         627.421 Delivery of policy.—
  936         (1) Subject to the insurer’s requirement as to payment of
  937  premium, every policy shall be mailed or delivered to the
  938  insured or to the person entitled thereto not later than 60 days
  939  after the effectuation of coverage. Notwithstanding any other
  940  provision of law, an insurer may allow a policyholder to elect
  941  delivery of the policy documents, including, but not limited to,
  942  policies, endorsements, notices, or documents, by electronic
  943  means in lieu of delivery by mail.
  944         Section 21. Subsection (2) of section 627.43141, Florida
  945  Statutes, is amended to read:
  946         627.43141 Notice of change in policy terms.—
  947         (2) A renewal policy may contain a change in policy terms.
  948  If a renewal policy contains does contain such change, the
  949  insurer must give the named insured written notice of the
  950  change, which may either must be enclosed along with the written
  951  notice of renewal premium required by ss. 627.4133 and 627.728
  952  or sent in a separate notice that complies with the nonrenewal
  953  mailing time requirement for that particular line of business.
  954  The insurer must also provide or make available electronically
  955  to the insured’s insurance agent such notice before or at the
  956  same time notice is given to the insured. Such notice shall be
  957  entitled “Notice of Change in Policy Terms.”
  958         Section 22. Subsection (7) of section 627.701, Florida
  959  Statutes, is amended to read:
  960         627.701 Liability of insureds; coinsurance; deductibles.—
  961         (7) Before Prior to issuing a personal lines residential
  962  property insurance policy on or after January 1, 2014 April 1,
  963  1997, or before prior to the first renewal of a residential
  964  property insurance policy on or after January 1, 2014 April 1,
  965  1997, the insurer must offer a deductible equal to $500, or
  966  equal to 1 percent of the policy dwelling limits if such amount
  967  is not less than $500, applicable to losses from perils other
  968  than hurricane. The insurer must provide the policyholder with
  969  notice of the availability of the deductible specified in this
  970  subsection in a form approved by the office at least once every
  971  3 years. The failure to provide such notice constitutes a
  972  violation of this code but does not affect the coverage provided
  973  under the policy. An insurer may require a higher deductible
  974  only as part of a deductible program lawfully in effect on June
  975  1, 1996, or as part of a similar deductible program.
  976         Section 23. Paragraph (b) of subsection (4) of section
  977  627.7015, Florida Statutes, is amended to read:
  978         627.7015 Alternative procedure for resolution of disputed
  979  property insurance claims.—
  980         (4) The department shall adopt by rule a property insurance
  981  mediation program to be administered by the department or its
  982  designee. The department may also adopt special rules which are
  983  applicable in cases of an emergency within the state. The rules
  984  shall be modeled after practices and procedures set forth in
  985  mediation rules of procedure adopted by the Supreme Court. The
  986  rules shall provide for:
  987         (b) Qualifications, denial of application, suspension,
  988  revocation, and other penalties for of mediators as provided in
  989  s. 627.745 and in the Florida Rules of Certified and Court
  990  Appointed Mediators, and for such other individuals as are
  991  qualified by education, training, or experience as the
  992  department determines to be appropriate.
  993         Section 24. Section 627.70151, Florida Statutes, is created
  994  to read:
  995         627.70151 Appraisal; conflicts of interest.—An insurer that
  996  offers residential coverage, as defined in s. 627.4025, or a
  997  policyholder that uses an appraisal clause in the property
  998  insurance contract to establish a process of estimating or
  999  evaluating the amount of the loss through the use of an
 1000  impartial umpire may challenge the umpire’s impartiality and
 1001  disqualify the proposed umpire only if:
 1002         (1) A familial relationship within the third degree exists
 1003  between the umpire and any party or a representative of any
 1004  party;
 1005         (2) The umpire has previously represented any party or a
 1006  representative of any party in a professional capacity in the
 1007  same or a substantially related matter;
 1008         (3) The umpire has represented another person in a
 1009  professional capacity on the same or a substantially related
 1010  matter, including the claim, on the same property, or on an
 1011  adjacent property and that other person’s interests are
 1012  materially adverse to the interests of any party; or
 1013         (4) The umpire has worked as an employer or employee of any
 1014  party within the preceding 5 years.
 1015         Section 25. Subsection (1) and paragraph (c) of subsection
 1016  (2) of section 627.706, Florida Statutes, are amended to read:
 1017         627.706 Sinkhole insurance; catastrophic ground cover
 1018  collapse; definitions.—
 1019         (1)(a) Every insurer authorized to transact property
 1020  insurance in this state must provide coverage for a catastrophic
 1021  ground cover collapse.
 1022         (b) The insurer shall make available, for an appropriate
 1023  additional premium, coverage for sinkhole losses on any
 1024  structure, including the contents of personal property contained
 1025  therein, to the extent provided in the form to which the
 1026  coverage attaches. The insurer may require an inspection of the
 1027  property before issuance of sinkhole loss coverage. A policy for
 1028  residential property insurance may include a deductible amount
 1029  applicable to sinkhole losses equal to 1 percent, 2 percent, 5
 1030  percent, or 10 percent of the policy’s covered building policy
 1031  dwelling limits, with appropriate premium discounts offered with
 1032  each deductible amount.
 1033         (c) The insurer may restrict catastrophic ground cover
 1034  collapse and sinkhole loss coverage to the principal building,
 1035  as defined in the applicable policy.
 1036         (2) As used in ss. 627.706-627.7074, and as used in
 1037  connection with any policy providing coverage for a catastrophic
 1038  ground cover collapse or for sinkhole losses, the term:
 1039         (c) “Neutral evaluator” means a professional engineer or a
 1040  professional geologist who has completed a course of study in
 1041  alternative dispute resolution designed or approved by the
 1042  department for use in the neutral evaluation process, and who is
 1043  determined by the department to be fair and impartial, and who
 1044  is not otherwise ineligible for certification as provided in s.
 1045  627.7074.
 1046         Section 26. Subsection (1) of section 627.7074, Florida
 1047  Statutes, is amended to read:
 1048         627.7074 Alternative procedure for resolution of disputed
 1049  sinkhole insurance claims.—
 1050         (1) The department shall:
 1051         (a) Certify and maintain a list of persons who are neutral
 1052  evaluators.
 1053         (b) Adopt rules for certifying, denying certification,
 1054  suspending certification, and revoking certification as a
 1055  neutral evaluator, in keeping with qualifications specified in
 1056  this section and ss. 627.706 and 627.745(4).
 1057         (c)(b) Prepare a consumer information pamphlet for
 1058  distribution by insurers to policyholders which clearly
 1059  describes the neutral evaluation process and includes
 1060  information necessary for the policyholder to request a neutral
 1061  evaluation.
 1062         Section 27. Paragraph (a) of subsection (5) of section
 1063  627.736, Florida Statutes, is amended to read:
 1064         627.736 Required personal injury protection benefits;
 1065  exclusions; priority; claims.—
 1067         (a) A physician, hospital, clinic, or other person or
 1068  institution lawfully rendering treatment to an injured person
 1069  for a bodily injury covered by personal injury protection
 1070  insurance may charge the insurer and injured party only a
 1071  reasonable amount pursuant to this section for the services and
 1072  supplies rendered, and the insurer providing such coverage may
 1073  pay for such charges directly to such person or institution
 1074  lawfully rendering such treatment if the insured receiving such
 1075  treatment or his or her guardian has countersigned the properly
 1076  completed invoice, bill, or claim form approved by the office
 1077  upon which such charges are to be paid for as having actually
 1078  been rendered, to the best knowledge of the insured or his or
 1079  her guardian. However, such a charge may not exceed the amount
 1080  the person or institution customarily charges for like services
 1081  or supplies. In determining whether a charge for a particular
 1082  service, treatment, or otherwise is reasonable, consideration
 1083  may be given to evidence of usual and customary charges and
 1084  payments accepted by the provider involved in the dispute,
 1085  reimbursement levels in the community and various federal and
 1086  state medical fee schedules applicable to motor vehicle and
 1087  other insurance coverages, and other information relevant to the
 1088  reasonableness of the reimbursement for the service, treatment,
 1089  or supply.
 1090         1. The insurer may limit reimbursement to 80 percent of the
 1091  following schedule of maximum charges:
 1092         a. For emergency transport and treatment by providers
 1093  licensed under chapter 401, 200 percent of Medicare.
 1094         b. For emergency services and care provided by a hospital
 1095  licensed under chapter 395, 75 percent of the hospital’s usual
 1096  and customary charges.
 1097         c. For emergency services and care as defined by s. 395.002
 1098  provided in a facility licensed under chapter 395 rendered by a
 1099  physician or dentist, and related hospital inpatient services
 1100  rendered by a physician or dentist, the usual and customary
 1101  charges in the community.
 1102         d. For hospital inpatient services, other than emergency
 1103  services and care, 200 percent of the Medicare Part A
 1104  prospective payment applicable to the specific hospital
 1105  providing the inpatient services.
 1106         e. For hospital outpatient services, other than emergency
 1107  services and care, 200 percent of the Medicare Part A Ambulatory
 1108  Payment Classification for the specific hospital providing the
 1109  outpatient services.
 1110         f. For all other medical services, supplies, and care, 200
 1111  percent of the allowable amount under:
 1112         (I) The participating physicians fee schedule of Medicare
 1113  Part B, except as provided in sub-sub-subparagraphs (II) and
 1114  (III).
 1115         (II) Medicare Part B, in the case of services, supplies,
 1116  and care provided by ambulatory surgical centers and clinical
 1117  laboratories.
 1118         (III) The Durable Medical Equipment Prosthetics/Orthotics
 1119  and Supplies fee schedule of Medicare Part B, in the case of
 1120  durable medical equipment.
 1122  However, if such services, supplies, or care is not reimbursable
 1123  under Medicare Part B, as provided in this sub-subparagraph, the
 1124  insurer may limit reimbursement to 80 percent of the maximum
 1125  reimbursable allowance under workers’ compensation, as
 1126  determined under s. 440.13 and rules adopted thereunder which
 1127  are in effect at the time such services, supplies, or care is
 1128  provided. Services, supplies, or care that is not reimbursable
 1129  under Medicare or workers’ compensation is not required to be
 1130  reimbursed by the insurer.
 1131         2. For purposes of subparagraph 1., the applicable fee
 1132  schedule or payment limitation under Medicare is the fee
 1133  schedule or payment limitation in effect on March 1 of the year
 1134  in which the services, supplies, or care is rendered and for the
 1135  area in which such services, supplies, or care is rendered, and
 1136  the applicable fee schedule or payment limitation applies until
 1137  March 1 of the following throughout the remainder of that year,
 1138  notwithstanding any subsequent change made to the fee schedule
 1139  or payment limitation, except that it may not be less than the
 1140  allowable amount under the applicable schedule of Medicare Part
 1141  B for 2007 for medical services, supplies, and care subject to
 1142  Medicare Part B.
 1143         3. Subparagraph 1. does not allow the insurer to apply any
 1144  limitation on the number of treatments or other utilization
 1145  limits that apply under Medicare or workers’ compensation. An
 1146  insurer that applies the allowable payment limitations of
 1147  subparagraph 1. must reimburse a provider who lawfully provided
 1148  care or treatment under the scope of his or her license,
 1149  regardless of whether such provider is entitled to reimbursement
 1150  under Medicare due to restrictions or limitations on the types
 1151  or discipline of health care providers who may be reimbursed for
 1152  particular procedures or procedure codes. However, subparagraph
 1153  1. does not prohibit an insurer from using the Medicare coding
 1154  policies and payment methodologies of the federal Centers for
 1155  Medicare and Medicaid Services, including applicable modifiers,
 1156  to determine the appropriate amount of reimbursement for medical
 1157  services, supplies, or care if the coding policy or payment
 1158  methodology does not constitute a utilization limit.
 1159         4. If an insurer limits payment as authorized by
 1160  subparagraph 1., the person providing such services, supplies,
 1161  or care may not bill or attempt to collect from the insured any
 1162  amount in excess of such limits, except for amounts that are not
 1163  covered by the insured’s personal injury protection coverage due
 1164  to the coinsurance amount or maximum policy limits.
 1165         5. Effective July 1, 2012, an insurer may limit payment as
 1166  authorized by this paragraph only if the insurance policy
 1167  includes a notice at the time of issuance or renewal that the
 1168  insurer may limit payment pursuant to the schedule of charges
 1169  specified in this paragraph. A policy form approved by the
 1170  office satisfies this requirement. If a provider submits a
 1171  charge for an amount less than the amount allowed under
 1172  subparagraph 1., the insurer may pay the amount of the charge
 1173  submitted.
 1174         Section 28. Subsection (3) of section 627.745, Florida
 1175  Statutes, is amended, present subsections (4) and (5) of that
 1176  section are renumbered as subsections (5) and (6), respectively,
 1177  and a new subsection (4) is added to that section, to read:
 1178         627.745 Mediation of claims.—
 1179         (3)(a) The department shall approve mediators to conduct
 1180  mediations pursuant to this section. All mediators must file an
 1181  application under oath for approval as a mediator.
 1182         (b) To qualify for approval as a mediator, an individual a
 1183  person must meet one of the following qualifications:
 1184         1. Possess an active certification as a Florida Circuit
 1185  Court Mediator. A Florida Circuit Court Mediator in a lapsed,
 1186  suspended, or decertified status is not eligible to participate
 1187  in the mediation program a masters or doctorate degree in
 1188  psychology, counseling, business, accounting, or economics, be a
 1189  member of The Florida Bar, be licensed as a certified public
 1190  accountant, or demonstrate that the applicant for approval has
 1191  been actively engaged as a qualified mediator for at least 4
 1192  years prior to July 1, 1990.
 1193         2. Be an approved department mediator as of July 1, 2013,
 1194  and have conducted at least one mediation on behalf of the
 1195  department within 4 years immediately preceding that the date
 1196  the application for approval is filed with the department, have
 1197  completed a minimum of a 40-hour training program approved by
 1198  the department and successfully passed a final examination
 1199  included in the training program and approved by the department.
 1200  The training program shall include and address all of the
 1201  following:
 1202         a. Mediation theory.
 1203         b. Mediation process and techniques.
 1204         c. Standards of conduct for mediators.
 1205         d. Conflict management and intervention skills.
 1206         e. Insurance nomenclature.
 1207         (4) The department shall deny an application, or revoke its
 1208  approval of a mediator or neutral evaluator to serve in such
 1209  capacity, if the department finds that any of the following
 1210  grounds exist:
 1211         (a) Lack of one or more of the qualifications specified in
 1212  this section for approval or certification.
 1213         (b) Material misstatement, misrepresentation, or fraud in
 1214  obtaining or attempting to obtain the approval or certification.
 1215         (c) Demonstrated lack of fitness or trustworthiness to act
 1216  as a mediator or neutral evaluator.
 1217         (d) Fraudulent or dishonest practices in the conduct of
 1218  mediation or neutral evaluation or in the conduct of business in
 1219  the financial services industry.
 1220         (e) Violation of any provision of this code or of a lawful
 1221  order or rule of the department or aiding, instructing, or
 1222  encouraging another party in committing such a violation.
 1224  The department may adopt rules to administer this subsection.
 1225         Section 29. Paragraph (b) of subsection (1) of section
 1226  627.952, Florida Statutes, is amended to read:
 1227         627.952 Risk retention and purchasing group agents.—
 1228         (1) Any person offering, soliciting, selling, purchasing,
 1229  administering, or otherwise servicing insurance contracts,
 1230  certificates, or agreements for any purchasing group or risk
 1231  retention group to any resident of this state, either directly
 1232  or indirectly, by the use of mail, advertising, or other means
 1233  of communication, shall obtain a license and appointment to act
 1234  as a resident general lines agent, if a resident of this state,
 1235  or a nonresident general lines agent if not a resident. Any such
 1236  person shall be subject to all requirements of the Florida
 1237  Insurance Code.
 1238         (b) Any person required to be licensed and appointed under
 1239  this subsection, in order to place business through Florida
 1240  eligible surplus lines carriers, must, if a resident of this
 1241  state, be licensed and appointed as a surplus lines agent. If
 1242  not a resident of this state, such person must be licensed and
 1243  appointed as a surplus lines agent in her or his state of
 1244  residence and file and maintain a fidelity bond in favor of the
 1245  people of the State of Florida executed by a surety company
 1246  admitted in this state and payable to the State of Florida;
 1247  however, such nonresident is limited to the provision of
 1248  insurance for purchasing groups. The bond must be continuous in
 1249  form and in the amount of not less than $50,000, aggregate
 1250  liability. The bond must remain in force and effect until the
 1251  surety is released from liability by the department or until the
 1252  bond is canceled by the surety. The surety may cancel the bond
 1253  and be released from further liability upon 30 days’ prior
 1254  written notice to the department. The cancellation does not
 1255  affect any liability incurred or accrued before the termination
 1256  of the 30-day period. Upon receipt of a notice of cancellation,
 1257  the department shall immediately notify the agent.
 1258         Section 30. Subsection (6) of section 627.971, Florida
 1259  Statutes, is amended to read:
 1260         627.971 Definitions.—As used in this part:
 1261         (6) “Financial guaranty insurance corporation” means a
 1262  stock or mutual insurer licensed to transact financial guaranty
 1263  insurance business in this state.
 1264         Section 31. Subsection (1) of section 627.972, Florida
 1265  Statutes, is amended to read:
 1266         627.972 Organization; financial requirements.—
 1267         (1) A financial guaranty insurance corporation must be
 1268  organized and licensed in the manner prescribed in this code for
 1269  stock or mutual property and casualty insurers except that:
 1270         (a) A corporation organized to transact financial guaranty
 1271  insurance may, subject to the provisions of this code, be
 1272  licensed to transact:
 1273         1. Residual value insurance, as defined by s. 624.6081;
 1274         2. Surety insurance, as defined by s. 624.606;
 1275         3. Credit insurance, as defined by s. 624.605(1)(i); and
 1276         4. Mortgage guaranty insurance as defined in s. 635.011,
 1277  provided that the provisions of chapter 635 are met.
 1278         (b)1. Before Prior to the issuance of a license, a
 1279  corporation must submit to the office for approval, a plan of
 1280  operation detailing:
 1281         a. The types and projected diversification of guaranties to
 1282  be issued;
 1283         b. The underwriting procedures to be followed;
 1284         c. The managerial oversight methods;
 1285         d. The investment policies; and
 1286         e. Any other matters prescribed by the office;
 1287         2. An insurer which is writing only the types of insurance
 1288  allowed under this part on July 1, 1988, and otherwise meets the
 1289  requirements of this part, is exempt from the requirements of
 1290  this paragraph.
 1291         (c) An insurer transacting financial guaranty insurance is
 1292  subject to all provisions of this code that are applicable to
 1293  property and casualty insurers to the extent that those
 1294  provisions are not inconsistent with this part.
 1295         (d) The investments of an insurer transacting financial
 1296  guaranty insurance in any entity insured by the corporation may
 1297  not exceed 2 percent of its admitted assets as of the end of the
 1298  prior calendar year.
 1299         (e) An insurer transacting financial guaranty insurance may
 1300  only assume those lines of insurance for which it is licensed to
 1301  write direct business.
 1302         Section 32. Subsection (13) of section 628.901, Florida
 1303  Statutes, is amended to read:
 1304         628.901 Definitions.—As used in this part, the term:
 1305         (13) “Qualifying reinsurer parent company” means a
 1306  reinsurer that which currently holds a certificate of authority
 1307  or a, letter of eligibility or is an accredited or a
 1308  satisfactory non-approved reinsurer in this state possessing a
 1309  consolidated GAAP net worth of at least $500 million and a
 1310  consolidated debt to total capital ratio of not greater than
 1311  0.50.
 1312         Section 33. Paragraph (a) of subsection (2) and paragraph
 1313  (a) of subsection (3) of section 628.909, Florida Statutes, are
 1314  amended to read:
 1315         628.909 Applicability of other laws.—
 1316         (2) The following provisions of the Florida Insurance Code
 1317  apply to captive insurers who are not industrial insured captive
 1318  insurers to the extent that such provisions are not inconsistent
 1319  with this part:
 1320         (a) Chapter 624, except for ss. 624.407, 624.408, 624.4085,
 1321  624.40851, 624.4095, 624.411, 624.425, and 624.426.
 1322         (3) The following provisions of the Florida Insurance Code
 1323  apply to industrial insured captive insurers to the extent that
 1324  such provisions are not inconsistent with this part:
 1325         (a) Chapter 624, except for ss. 624.407, 624.408, 624.4085,
 1326  624.40851, 624.4095, 624.411, 624.425, 624.426, and 624.609(1).
 1327         Section 34. Present subsection (8) of section 634.406,
 1328  Florida Statutes, is renumbered as subsection (7), and present
 1329  subsections (6) and (7) of that section are amended, to read:
 1330         634.406 Financial requirements.—
 1331         (6) An association that which holds a license under this
 1332  part and which does not hold any other license under this
 1333  chapter may allow its premiums written under this part to exceed
 1334  the ratio to net assets limitations of this section if the
 1335  association meets all of the following:
 1336         (a) Maintains net assets of at least $750,000.
 1337         (b) Utilizes a contractual liability insurance policy
 1338  approved by the office which:
 1339         1. Reimburses the service warranty association for 100
 1340  percent of its claims liability and is issued by an insurer that
 1341  maintains a policyholder surplus of at least $100 million; or
 1342         2. Complies with the requirements of subsection (3) and is
 1343  issued by an insurer that maintains a policyholder surplus of at
 1344  least $200 million.
 1345         (c) The insurer issuing the contractual liability insurance
 1346  policy:
 1347         1. Maintains a policyholder surplus of at least $100
 1348  million.
 1349         1.2. Is rated “A” or higher by A.M. Best Company or an
 1350  equivalent rating by another national rating service acceptable
 1351  to the office.
 1352         3. Is in no way affiliated with the warranty association.
 1353         2.4. In conjunction with the warranty association’s filing
 1354  of the quarterly and annual reports, provides, on a form
 1355  prescribed by the commission, a statement certifying the gross
 1356  written premiums in force reported by the warranty association
 1357  and a statement that all of the warranty association’s gross
 1358  written premium in force is covered under the contractual
 1359  liability policy, whether or not it has been reported.
 1360         (7) A contractual liability policy must insure 100 percent
 1361  of an association’s claims exposure under all of the
 1362  association’s service warranty contracts, wherever written,
 1363  unless all of the following are satisfied:
 1364         (a) The contractual liability policy contains a clause that
 1365  specifically names the service warranty contract holders as sole
 1366  beneficiaries of the contractual liability policy and claims are
 1367  paid directly to the person making a claim under the contract;
 1368         (b) The contractual liability policy meets all other
 1369  requirements of this part, including subsection (3) of this
 1370  section, which are not inconsistent with this subsection;
 1371         (c) The association has been in existence for at least 5
 1372  years or the association is a wholly owned subsidiary of a
 1373  corporation that has been in existence and has been licensed as
 1374  a service warranty association in the state for at least 5
 1375  years, and:
 1376         1. Is listed and traded on a recognized stock exchange; is
 1377  listed in NASDAQ (National Association of Security Dealers
 1378  Automated Quotation system) and publicly traded in the over-the
 1379  counter securities market; is required to file either of Form
 1380  10-K, Form 100, or Form 20-G with the United States Securities
 1381  and Exchange Commission; or has American Depository Receipts
 1382  listed on a recognized stock exchange and publicly traded or is
 1383  the wholly owned subsidiary of a corporation that is listed and
 1384  traded on a recognized stock exchange; is listed in NASDAQ
 1385  (National Association of Security Dealers Automated Quotation
 1386  system) and publicly traded in the over-the-counter securities
 1387  market; is required to file Form 10-K, Form 100, or Form 20-G
 1388  with the United States Securities and Exchange Commission; or
 1389  has American Depository Receipts listed on a recognized stock
 1390  exchange and is publicly traded;
 1391         2. Maintains outstanding debt obligations, if any, rated in
 1392  the top four rating categories by a recognized rating service;
 1393         3. Has and maintains at all times a minimum net worth of
 1394  not less than $10 million as evidenced by audited financial
 1395  statements prepared by an independent certified public
 1396  accountant in accordance with generally accepted accounting
 1397  principles and submitted to the office annually; and
 1398         4. Is authorized to do business in this state; and
 1399         (d) The insurer issuing the contractual liability policy:
 1400         1. Maintains and has maintained for the preceding 5 years,
 1401  policyholder surplus of at least $100 million and is rated “A”
 1402  or higher by A.M. Best Company or has an equivalent rating by
 1403  another rating company acceptable to the office;
 1404         2. Holds a certificate of authority to do business in this
 1405  state and is approved to write this type of coverage; and
 1406         3. Acknowledges to the office quarterly that it insures all
 1407  of the association’s claims exposure under contracts delivered
 1408  in this state.
 1410  If all the preceding conditions are satisfied, then the scope of
 1411  coverage under a contractual liability policy shall not be
 1412  required to exceed an association’s claims exposure under
 1413  service warranty contracts delivered in this state.
 1414         Section 35. This act shall take effect upon becoming a law.