Florida Senate - 2014 SB 1210
By Senator Bean
4-00504C-14 20141210__
1 A bill to be entitled
2 An act relating to the Division of Insurance Agents
3 and Agency Services; amending s. 20.121, F.S.;
4 revising the name of the division; amending s.
5 624.310, F.S.; revising service delivery methods;
6 amending s. 624.318, F.S.; prohibiting the removal of
7 specified original documents under certain conditions;
8 amending s. 624.501, F.S.; revising original
9 appointment and renewal fees related to certain
10 insurance representatives; amending s. 626.015, F.S.;
11 defining the term “unaffiliated insurance agent”;
12 amending s. 626.0428, F.S.; requiring a branch place
13 of business to have an agent in charge; authorizing an
14 agent to be in charge of more than one branch office
15 under certain circumstances; providing requirements
16 relating to the designation of an agent in charge;
17 providing that the agent in charge is accountable for
18 wrongful acts, misconduct, and violations committed by
19 the licensee and any person under his or her
20 supervision; prohibiting an insurance agency from
21 conducting insurance business at a location without a
22 designated agent in charge; providing for expiration
23 of an agency license under specified circumstances;
24 amending s. 626.112, F.S.; prohibiting new limited
25 customer representative licenses from being issued
26 after a specified date; providing licensure exemptions
27 that allow specified individuals or entities to
28 conduct insurance business at specified locations
29 under certain circumstances; revising licensure
30 requirements and penalties with respect to registered
31 insurance agencies; providing that the registration of
32 an approved registered insurance agency automatically
33 converts to an insurance agency license on a specified
34 date; amending s. 626.171, F.S.; providing an
35 exemption from certain licensure application fees;
36 amending s. 626.172, F.S.; revising requirements
37 relating to applications for insurance agency
38 licenses; amending s. 626.207, F.S.; conforming a
39 cross-reference; amending s. 626.241, F.S.; revising
40 the scope of the examination for a limited agent
41 license; amending s. 626.261, F.S.; deleting a
42 provision requiring certain costs to be paid by
43 applicants who request licensure examinations in
44 Spanish; amending s. 626.311, F.S.; limiting the types
45 of business that may be transacted by certain agents;
46 amending s. 626.321, F.S.; providing that a license
47 issued to a business renting or leasing motor vehicles
48 applies to employees and authorized representatives;
49 amending s. 626.382, F.S.; providing that an insurance
50 agency license continues in force until canceled,
51 suspended, revoked, terminated, or expired; amending
52 s. 626.601, F.S.; revising terminology relating to
53 investigations conducted by the Department of
54 Financial Services and the Office of Insurance
55 Regulation with respect to individuals and entities
56 involved in the insurance industry; amending s.
57 626.611, F.S.; requiring the department to suspend
58 certain licenses and appointments; amending s.
59 626.641, F.S.; conforming a cross-reference; amending
60 s. 626.733, F.S.; revising applicability of certain
61 appointment provisions; amending s. 626.7355, F.S.;
62 revising qualifications for a temporary customer
63 representative’s license; repealing s. 626.747, F.S.,
64 relating to branch agencies, agents in charge, and the
65 payment of additional county tax under certain
66 circumstances on a specified date; amending s.
67 626.7845, F.S.; revising a prohibition against
68 unlicensed transaction of life insurance; amending ss.
69 626.8411, 626.861, and 626.862, F.S.; conforming
70 cross-references; amending s. 626.9272, F.S.; revising
71 requirements for the licensure of nonresident surplus
72 lines agents; creating s. 627.4553, F.S.; requiring an
73 insurance agent who recommends the surrender of
74 certain annuity or life insurance to provide certain
75 information to the department; amending s. 627.7015,
76 F.S.; revising the rulemaking authority of the
77 department with respect to qualifications and
78 specified types of penalties covered under the
79 property insurance mediation program; amending s.
80 627.706, F.S.; revising the definition of the term
81 “neutral evaluator”; amending s. 627.7074, F.S.;
82 providing grounds for the department to deny an
83 application, or suspend or revoke approval of
84 certification, of a neutral evaluator; requiring the
85 department to adopt rules; amending s. 627.745, F.S.;
86 revising qualifications for approval as a mediator by
87 the department; providing grounds for the department
88 to deny an application, or suspend or revoke approval,
89 of a mediator; requiring the department to adopt
90 rules; amending s. 627.952, F.S.; providing that
91 certain persons who are not residents of this state
92 must be licensed and appointed as nonresident surplus
93 lines agents in this state in order to engage in
94 specified activities with respect to servicing
95 insurance contracts, certificates, or agreements for
96 purchasing or risk retention groups; deleting a
97 fidelity bond requirement applicable to certain
98 nonresident agents who are licensed as surplus lines
99 agents in another state; amending s. 648.43, F.S.;
100 revising requirements for the submission of a power of
101 attorney; amending s. 648.49, F.S.; revising
102 provisions relating to the duration of suspension or
103 revocation of a license; amending ss. 943.0585 and
104 943.059, F.S.; prohibiting a person seeking a license
105 from the Division of Insurance Agent and Agency
106 Services who is the subject of an expunged or sealed
107 criminal history record from denying or failing to
108 acknowledge arrests covered by the record; providing
109 effective dates.
110
111 Be It Enacted by the Legislature of the State of Florida:
112
113 Section 1. Paragraph (g) of subsection (2) of section
114 20.121, Florida Statutes, is amended to read:
115 20.121 Department of Financial Services.—There is created a
116 Department of Financial Services.
117 (2) DIVISIONS.—The Department of Financial Services shall
118 consist of the following divisions:
119 (g) The Division of Insurance Agent Agents and Agency
120 Services.
121 Section 2. Subsection (6) of section 624.310, Florida
122 Statutes, is amended to read:
123 624.310 Enforcement; cease and desist orders; removal of
124 certain persons; fines.—
125 (6) ADMINISTRATIVE PROCEDURES.—All administrative
126 proceedings under subsections (3), (4), and (5) shall be
127 conducted in accordance with chapter 120. Any service required
128 or authorized to be made by the department or office under this
129 code shall be made:
130 (a) By certified mail, return receipt requested, delivered
131 to the addressee only;
132 (b) By e-mail, delivery receipt required, sent to the most
133 recent e-mail address provided to the department by the
134 applicant or licensee in accordance with s. 626.171, s. 626.551,
135 s. 648.34, or s. 648.421, if service by mail cannot be obtained
136 at the last address provided to the department by the recipient;
137 (c) By personal delivery, including hand delivery by
138 department investigators;
139 (d) By publication in accordance with s. 120.60; or
140 (e) In accordance with chapter 48.
141
142 The service provided for in this subsection herein shall be
143 effective from the date of delivery.
144 Section 3. Subsection (5) of section 624.318, Florida
145 Statutes, is amended to read:
146 624.318 Conduct of examination or investigation; access to
147 records; correction of accounts; appraisals.—
148 (5) Neither The department, the office, or an nor any
149 examiner may not shall remove an original any record, account,
150 document, file, or other property of the person being examined
151 from the offices of such person except with the person’s written
152 consent of such person given in advance of such removal or
153 pursuant to a court an order of court duly obtained.
154 Section 4. Paragraphs (a) and (c) of subsection (6) and
155 subsections (7) and (8) of section 624.501, Florida Statutes,
156 are amended to read:
157 624.501 Filing, license, appointment, and miscellaneous
158 fees.—The department, commission, or office, as appropriate,
159 shall collect in advance, and persons so served shall pay to it
160 in advance, fees, licenses, and miscellaneous charges as
161 follows:
162 (6) Insurance representatives, property, marine, casualty,
163 and surety insurance.
164 (a) Agent’s original appointment and biennial renewal or
165 continuation thereof, each insurer or unaffiliated agent making
166 an appointment:
167 Appointment fee....................................$42.00
168 State tax...........................................12.00
169 County tax...........................................6.00
170 Total.....................................................$60.00
171 (c) Nonresident agent’s original appointment and biennial
172 renewal or continuation thereof, appointment fee, each insurer
173 or unaffiliated agent making an appointment...............$60.00
174 (7) Life insurance agents.
175 (a) Agent’s original appointment and biennial renewal or
176 continuation thereof, each insurer or unaffiliated agent making
177 an appointment:
178 Appointment fee....................................$42.00
179 State tax...........................................12.00
180 County tax...........................................6.00
181 Total.....................................................$60.00
182 (b) Nonresident agent’s original appointment and biennial
183 renewal or continuation thereof, appointment fee, each insurer
184 or unaffiliated agent making an appointment $60.00
185 (8) Health insurance agents.
186 (a) Agent’s original appointment and biennial renewal or
187 continuation thereof, each insurer or unaffiliated agent making
188 an appointment:
189 Appointment fee....................................$42.00
190 State tax...........................................12.00
191 County tax...........................................6.00
192 Total.....................................................$60.00
193 (b) Nonresident agent’s original appointment and biennial
194 renewal or continuation thereof, appointment fee, each insurer
195 or unaffiliated agent making an appointment $60.00
196 Section 5. Present subsection (18) of section 626.015,
197 Florida Statutes, is renumbered as subsection (19), and a new
198 subsection (18) is added to that section, to read:
199 626.015 Definitions.—As used in this part:
200 (18) “Unaffiliated insurance agent” means a licensed
201 insurance agent, except a limited lines agent, who is self
202 appointed and who practices as an independent consultant in the
203 business of analyzing or abstracting insurance policies,
204 providing insurance advice or counseling, or making specific
205 recommendations or comparisons of insurance products for a fee
206 established in advance by written contract signed by the
207 parties. An unaffiliated insurance agent may not be affiliated
208 with an insurer, insurer-appointed insurance agent, or insurance
209 agency contracted with or employing insurer-appointed insurance
210 agents.
211 Section 6. Effective January 1, 2015, section 626.0428,
212 Florida Statutes, is amended to read:
213 626.0428 Agency personnel powers, duties, and limitations.—
214 (1) An employee of individual employed by an agent or
215 agency on salary who devotes full time to clerical work, with
216 incidental taking of insurance applications or quoting or
217 receiving premiums on incoming inquiries in the office of the
218 agent or agency, is not deemed to be an agent or customer
219 representative if his or her compensation does not include in
220 whole or in part any commissions on such business and is not
221 related to the production of applications, insurance, or
222 premiums.
223 (2) An employee, or an authorized representative located at
224 a designated branch of an agent or agency may not bind insurance
225 coverage unless licensed and appointed as an agent or customer
226 representative.
227 (3) An employee or an authorized representative located at
228 a designated branch of an agent or agency may not initiate
229 contact with any person for the purpose of soliciting insurance
230 unless licensed and appointed as an agent or customer
231 representative. As to title insurance, an employee of an agent
232 or agency may not initiate contact with an any individual
233 proposed to be insured for the purpose of soliciting title
234 insurance unless licensed as a title insurance agent or exempt
235 from such licensure pursuant to s. 626.8417(4).
236 (4)(a) Each place of business established by an agent or
237 agency, firm, corporation, or association must be in the active
238 full-time charge of a licensed and appointed agent holding the
239 required agent licenses to transact the lines of insurance being
240 handled at the location.
241 (b) However, the licensed agent in charge of an insurance
242 agency may also be the agent in charge of additional branch
243 office locations of the agency if insurance activities requiring
244 licensure as an insurance agent do not occur at a location when
245 an agent is not physically present and unlicensed employees at
246 the location do not engage in insurance activities requiring
247 licensure as an insurance agent or customer representative.
248 (c) An insurance agency and each branch place of business
249 of an insurance agency shall designate an agent in charge and
250 file the name and license number of the agent in charge and the
251 physical address of the insurance agency location with the
252 department at the department’s designated website. The
253 designation of the agent in charge may be changed at the option
254 of the agency. A change of the designated agent in charge is
255 effective upon notification to the department, which shall be
256 provided within 30 days after such change.
257 (d) For the purposes of this subsection, an “agent in
258 charge” is the licensed and appointed agent who is responsible
259 for the supervision of all individuals within an insurance
260 agency location, regardless of whether the agent in charge
261 handles a specific transaction or deals with the general public
262 in the solicitation or negotiation of insurance contracts or the
263 collection or accounting of moneys.
264 (e) An agent in charge of an insurance agency is
265 accountable for wrongful acts, misconduct, or violations of this
266 code committed by the licensee or agent or by any person under
267 his or her supervision while acting on behalf of the agency.
268 This section does not render an agent in charge criminally
269 liable for an act unless the agent in charge personally
270 committed the act or knew or should have known of the act and of
271 the facts constituting a violation of this chapter.
272 (f) An insurance agency location may not conduct the
273 business of insurance unless an agent in charge is designated
274 by, and providing services to, the agency at all times. If the
275 agent in charge designated with the department ends his or her
276 affiliation with the agency and the agency fails to designate
277 another agent in charge within the 30 days provided for in
278 paragraph (c) and such failure continues for 90 days, the agency
279 license shall automatically expire on the 91st day after the
280 date the designated agent in charge ended his or her affiliation
281 with the agency.
282 Section 7. Effective January 1, 2015, paragraph (b) of
283 subsection (1) and subsection (7) of section 626.112, Florida
284 Statutes, are amended to read:
285 626.112 License and appointment required; agents, customer
286 representatives, adjusters, insurance agencies, service
287 representatives, managing general agents.—
288 (1)
289 (b) Except as provided in subsection (6) or in applicable
290 department rules, and in addition to other conduct described in
291 this chapter with respect to particular types of agents, a
292 license as an insurance agent, service representative, customer
293 representative, or limited customer representative is required
294 in order to engage in the solicitation of insurance. Effective
295 October 1, 2014, new limited customer representative licenses
296 may not be issued. For purposes of this requirement, as
297 applicable to any of the license types described in this
298 section, the solicitation of insurance is the attempt to
299 persuade any person to purchase an insurance product by:
300 1. Describing the benefits or terms of insurance coverage,
301 including premiums or rates of return;
302 2. Distributing an invitation to contract to prospective
303 purchasers;
304 3. Making general or specific recommendations as to
305 insurance products;
306 4. Completing orders or applications for insurance
307 products;
308 5. Comparing insurance products, advising as to insurance
309 matters, or interpreting policies or coverages; or
310 6. Offering or attempting to negotiate on behalf of another
311 person a viatical settlement contract as defined in s. 626.9911.
312
313 However, an employee leasing company licensed under pursuant to
314 chapter 468 which is seeking to enter into a contract with an
315 employer that identifies products and services offered to
316 employees may deliver proposals for the purchase of employee
317 leasing services to prospective clients of the employee leasing
318 company setting forth the terms and conditions of doing
319 business; classify employees as permitted by s. 468.529; collect
320 information from prospective clients and other sources as
321 necessary to perform due diligence on the prospective client and
322 to prepare a proposal for services; provide and receive
323 enrollment forms, plans, and other documents; and discuss or
324 explain in general terms the conditions, limitations, options,
325 or exclusions of insurance benefit plans available to the client
326 or employees of the employee leasing company were the client to
327 contract with the employee leasing company. Any advertising
328 materials or other documents describing specific insurance
329 coverages must identify and be from a licensed insurer or its
330 licensed agent or a licensed and appointed agent employed by the
331 employee leasing company. The employee leasing company may not
332 advise or inform the prospective business client or individual
333 employees of specific coverage provisions, exclusions, or
334 limitations of particular plans. As to clients for which the
335 employee leasing company is providing services pursuant to s.
336 468.525(4), the employee leasing company may engage in
337 activities permitted by ss. 626.7315, 626.7845, and 626.8305,
338 subject to the restrictions specified in those sections. If a
339 prospective client requests more specific information concerning
340 the insurance provided by the employee leasing company, the
341 employee leasing company must refer the prospective business
342 client to the insurer or its licensed agent or to a licensed and
343 appointed agent employed by the employee leasing company.
344 (7)(a) An Effective October 1, 2006, no individual, firm,
345 partnership, corporation, association, or any other entity may
346 not shall act in its own name or under a trade name, directly or
347 indirectly, as an insurance agency, unless it complies with s.
348 626.172 with respect to possessing an insurance agency license
349 for each place of business at which it engages in an any
350 activity that which may be performed only by a licensed
351 insurance agent. However, an insurance agency that is owned and
352 operated by a single licensed agent conducting business in his
353 or her individual name and not employing or otherwise using the
354 services of or appointing other licensees is exempt from the
355 agency licensing requirements of this subsection.
356 (a) A branch location of a business which is established by
357 a licensed insurance agency is considered a branch agency and is
358 not required to be licensed if it transacts business under the
359 same name and federal tax identification number as the licensed
360 agency and has designated with the department a licensed agent
361 in charge of the branch location as required by s. 626.0428 and
362 the address and telephone number of the branch location have
363 been submitted to the department for inclusion in the licensing
364 record of the licensed agency within 30 days after insurance
365 transactions begin at the branch location Each agency engaged in
366 business in this state before January 1, 2003, which is wholly
367 owned by insurance agents currently licensed and appointed under
368 this chapter, each incorporated agency whose voting shares are
369 traded on a securities exchange, each agency designated and
370 subject to supervision and inspection as a branch office under
371 the rules of the National Association of Securities Dealers, and
372 each agency whose primary function is offering insurance as a
373 service or member benefit to members of a nonprofit corporation
374 may file an application for registration in lieu of licensure in
375 accordance with s. 626.172(3). Each agency engaged in business
376 before October 1, 2006, shall file an application for licensure
377 or registration on or before October 1, 2006.
378 (b)1. If an agency is required to be licensed but fails to
379 file an application for licensure in accordance with this
380 section, the department shall impose on the agency an
381 administrative penalty in an amount of up to $10,000.
382 2. If an agency is eligible for registration but fails to
383 file an application for registration or an application for
384 licensure in accordance with this section, the department shall
385 impose on the agency an administrative penalty in an amount of
386 up to $5,000.
387 (c)(b) Effective October 1, 2015, the department must
388 convert the registration of an approved a registered insurance
389 agency to shall, as a condition precedent to continuing
390 business, obtain an insurance agency license if the department
391 finds that, with respect to any majority owner, partner,
392 manager, director, officer, or other person who manages or
393 controls the agency, any person has:
394 1. Been found guilty of, or has pleaded guilty or nolo
395 contendere to, a felony in this state or any other state
396 relating to the business of insurance or to an insurance agency,
397 without regard to whether a judgment of conviction has been
398 entered by the court having jurisdiction of the cases.
399 2. Employed any individual in a managerial capacity or in a
400 capacity dealing with the public who is under an order of
401 revocation or suspension issued by the department. An insurance
402 agency may request, on forms prescribed by the department,
403 verification of any person’s license status. If a request is
404 mailed within 5 working days after an employee is hired, and the
405 employee’s license is currently suspended or revoked, the agency
406 shall not be required to obtain a license, if the unlicensed
407 person’s employment is immediately terminated.
408 3. Operated the agency or permitted the agency to be
409 operated in violation of s. 626.747.
410 4. With such frequency as to have made the operation of the
411 agency hazardous to the insurance-buying public or other
412 persons:
413 a. Solicited or handled controlled business. This
414 subparagraph shall not prohibit the licensing of any lending or
415 financing institution or creditor, with respect to insurance
416 only, under credit life or disability insurance policies of
417 borrowers from the institutions, which policies are subject to
418 part IX of chapter 627.
419 b. Misappropriated, converted, or unlawfully withheld
420 moneys belonging to insurers, insureds, beneficiaries, or others
421 and received in the conduct of business under the license.
422 c. Unlawfully rebated, attempted to unlawfully rebate, or
423 unlawfully divided or offered to divide commissions with
424 another.
425 d. Misrepresented any insurance policy or annuity contract,
426 or used deception with regard to any policy or contract, done
427 either in person or by any form of dissemination of information
428 or advertising.
429 e. Violated any provision of this code or any other law
430 applicable to the business of insurance in the course of dealing
431 under the license.
432 f. Violated any lawful order or rule of the department.
433 g. Failed or refused, upon demand, to pay over to any
434 insurer he or she represents or has represented any money coming
435 into his or her hands belonging to the insurer.
436 h. Violated the provision against twisting as defined in s.
437 626.9541(1)(l).
438 i. In the conduct of business, engaged in unfair methods of
439 competition or in unfair or deceptive acts or practices, as
440 prohibited under part IX of this chapter.
441 j. Willfully overinsured any property insurance risk.
442 k. Engaged in fraudulent or dishonest practices in the
443 conduct of business arising out of activities related to
444 insurance or the insurance agency.
445 l. Demonstrated lack of fitness or trustworthiness to
446 engage in the business of insurance arising out of activities
447 related to insurance or the insurance agency.
448 m. Authorized or knowingly allowed individuals to transact
449 insurance who were not then licensed as required by this code.
450 5. Knowingly employed any person who within the preceding 3
451 years has had his or her relationship with an agency terminated
452 in accordance with paragraph (d).
453 6. Willfully circumvented the requirements or prohibitions
454 of this code.
455 Section 8. Present subsection (6) of section 626.171,
456 Florida Statutes, is renumbered as subsection (7), and a new
457 subsection (6) is added to that section, to read:
458 626.171 Application for license as an agent, customer
459 representative, adjuster, service representative, managing
460 general agent, or reinsurance intermediary.—
461 (6) Members of the United States Armed Forces and their
462 spouses, and veterans of the United States Armed Forces who have
463 retired within 24 months before application for licensure, are
464 exempt from the application filing fee prescribed in s. 624.501.
465 Qualified individuals must provide a copy of a military
466 identification card, military dependent identification card,
467 military service record, military personnel file, veteran
468 record, discharge paper, or separation document, or separation
469 document that indicates such members of the United States Armed
470 Forces are currently in good standing or were honorably
471 discharged.
472 Section 9. Subsections (2), (3), and (4) of section
473 626.172, Florida Statutes, are amended to read:
474 626.172 Application for insurance agency license.—
475 (2) An application for an insurance agency license must be
476 signed by an individual specified in paragraph (a) shall be
477 signed by the owner or owners of the agency. An insurance agency
478 may permit a third party to complete, submit, and sign an
479 application on the insurance agency’s behalf; however, the
480 insurance agency is responsible for ensuring that the
481 information on the application is true and correct and is
482 accountable for any misstatements or misrepresentations. If the
483 agency is incorporated, the application shall be signed by the
484 president and secretary of the corporation. The application must
485 for an insurance agency license shall include:
486 (a) The name of each majority owner, partner, officer, and
487 director, president, senior vice president, secretary,
488 treasurer, and limited liability company member who directs or
489 participates in the management or control of the insurance
490 agency, whether through ownership of voting securities, by
491 contract, by ownership of an agency bank account, or otherwise.
492 (b) The residence address of each person required to be
493 listed in the application under paragraph (a).
494 (c) The name, principal business street address, and valid
495 e-mail address of the insurance agency and the name, address,
496 and e-mail address of the agency’s registered agent or person or
497 company authorized to accept service on behalf of the agency and
498 its principal business address.
499 (d) The physical address location of each branch agency,
500 including its name, e-mail address, and telephone number, and
501 the date that the branch location began transacting insurance
502 office and the name under which each agency office conducts or
503 will conduct business.
504 (e) The name of the each agent to be in full-time charge of
505 the an agency office, including branch locations, and his or her
506 corresponding location specification of which office.
507 (f) The fingerprints of each of the following:
508 1. A sole proprietor;
509 2. Each individual specified in paragraph (a) partner; and
510 3. Each owner of an unincorporated agency;
511 3.4. Each individual owner who directs or participates in
512 the management or control of an incorporated agency whose shares
513 are not traded on a securities exchange;
514 5. The president, senior vice presidents, treasurer,
515 secretary, and directors of the agency; and
516 6. Any other person who directs or participates in the
517 management or control of the agency, whether through the
518 ownership of voting securities, by contract, or otherwise.
519
520 Fingerprints must be taken by a law enforcement agency or other
521 entity approved by the department and must be accompanied by the
522 fingerprint processing fee specified in s. 624.501. Fingerprints
523 must shall be processed in accordance with s. 624.34. However,
524 fingerprints need not be filed for an any individual who is
525 currently licensed and appointed under this chapter. This
526 paragraph does not apply to corporations whose voting shares are
527 traded on a securities exchange.
528 (g) Such additional information as the department requires
529 by rule to ascertain the trustworthiness and competence of
530 persons required to be listed on the application and to
531 ascertain that such persons meet the requirements of this code.
532 However, the department may not require that credit or character
533 reports be submitted for persons required to be listed on the
534 application.
535 (3)(h) Beginning October 1, 2005, The department must shall
536 accept the uniform application for nonresident agency licensure.
537 The department may adopt by rule revised versions of the uniform
538 application.
539 (3) The department shall issue a registration as an
540 insurance agency to any agency that files a written application
541 with the department and qualifies for registration. The
542 application for registration shall require the agency to provide
543 the same information required for an agency licensed under
544 subsection (2), the agent identification number for each owner
545 who is a licensed agent, proof that the agency qualifies for
546 registration as provided in s. 626.112(7), and any other
547 additional information that the department determines is
548 necessary in order to demonstrate that the agency qualifies for
549 registration. The application must be signed by the owner or
550 owners of the agency. If the agency is incorporated, the
551 application must be signed by the president and the secretary of
552 the corporation. An agent who owns the agency need not file
553 fingerprints with the department if the agent obtained a license
554 under this chapter and the license is currently valid.
555 (a) If an application for registration is denied, the
556 agency must file an application for licensure no later than 30
557 days after the date of the denial of registration.
558 (b) A registered insurance agency must file an application
559 for licensure no later than 30 days after the date that any
560 person who is not a licensed and appointed agent in this state
561 acquires any ownership interest in the agency. If an agency
562 fails to file an application for licensure in compliance with
563 this paragraph, the department shall impose an administrative
564 penalty in an amount of up to $5,000 on the agency.
565 (c) Sections 626.6115 and 626.6215 do not apply to agencies
566 registered under this subsection.
567 (4) The department must shall issue a license or
568 registration to each agency upon approval of the application,
569 and each agency location must shall display the license or
570 registration prominently in a manner that makes it clearly
571 visible to any customer or potential customer who enters the
572 agency location.
573 Section 10. Subsection (7) of section 626.207, Florida
574 Statutes, is amended to read:
575 626.207 Disqualification of applicants and licensees;
576 penalties against licensees; rulemaking authority.—
577 (7) After the disqualifying period has been met, the burden
578 is on the applicant to demonstrate that the applicant has been
579 rehabilitated, does not pose a risk to the insurance-buying
580 public, is fit and trustworthy to engage in the business of
581 insurance pursuant to s. 626.611(1)(g) s. 626.611(7), and is
582 otherwise qualified for licensure.
583 Section 11. Subsection (5) of section 626.241, Florida
584 Statutes, is amended to read:
585 626.241 Scope of examination.—
586 (5) Examinations given applicants for a limited agent
587 license as agent or as customer representative shall be limited
588 in scope to the kind of business to be transacted under such
589 license.
590 Section 12. Subsection (5) of section 626.261, Florida
591 Statutes, is amended to read:
592 626.261 Conduct of examination.—
593 (5) The department may provide licensure examinations in
594 Spanish. Applicants requesting examination or reexamination in
595 Spanish must bear the full cost of the department’s development,
596 preparation, administration, grading, and evaluation of the
597 Spanish-language examination. When determining whether it is in
598 the public interest to allow the examination to be translated
599 into and administered in Spanish, the department shall consider
600 the percentage of the population who speak Spanish.
601 Section 13. Present subsection (6) of section 626.311,
602 Florida Statutes, is renumbered as subsection (7), and a new
603 subsection (6) is added to that section, to read:
604 626.311 Scope of license.—
605 (6) An agent who appoints his or her license as an
606 unaffiliated insurance agent may not hold an appointment from an
607 insurer for any license he or she holds; transact, solicit, or
608 service an insurance contract on behalf of an insurer; interfere
609 with commissions received or to be received by an insurer
610 appointed insurance agent or an insurance agency contracted with
611 or employing insurer-appointed insurance agents; or receive
612 compensation or any other thing of value from an insurer, an
613 insurer-appointed insurance agent, or an insurance agency
614 contracted with or employing insurer-appointed insurance agents
615 for any transaction or referral occurring after the date of
616 appointment as an unaffiliated insurance agent. An unaffiliated
617 insurance agent may continue to receive commissions on sales
618 that occurred before the date of appointment as an unaffiliated
619 insurance agent if the receipt of such commissions is disclosed
620 when making recommendations or evaluating products for a client
621 that involve products of the entity from which the commissions
622 are received.
623 Section 14. Paragraph (d) of subsection (1) of section
624 626.321, Florida Statutes, is amended to read:
625 626.321 Limited licenses.—
626 (1) The department shall issue to a qualified applicant a
627 license as agent authorized to transact a limited class of
628 business in any of the following categories of limited lines
629 insurance:
630 (d) Motor vehicle rental insurance.—
631 1. License covering only insurance of the risks set forth
632 in this paragraph when offered, sold, or solicited with and
633 incidental to the rental or lease of a motor vehicle and which
634 applies only to the motor vehicle that is the subject of the
635 lease or rental agreement and the occupants of the motor
636 vehicle:
637 a. Excess motor vehicle liability insurance providing
638 coverage in excess of the standard liability limits provided by
639 the lessor in the lessor’s lease to a person renting or leasing
640 a motor vehicle from the licensee’s employer for liability
641 arising in connection with the negligent operation of the leased
642 or rented motor vehicle.
643 b. Insurance covering the liability of the lessee to the
644 lessor for damage to the leased or rented motor vehicle.
645 c. Insurance covering the loss of or damage to baggage,
646 personal effects, or travel documents of a person renting or
647 leasing a motor vehicle.
648 d. Insurance covering accidental personal injury or death
649 of the lessee and any passenger who is riding or driving with
650 the covered lessee in the leased or rented motor vehicle.
651 2. Insurance under a motor vehicle rental insurance license
652 may be issued only if the lease or rental agreement is for no
653 more than 60 days, the lessee is not provided coverage for more
654 than 60 consecutive days per lease period, and the lessee is
655 given written notice that his or her personal insurance policy
656 providing coverage on an owned motor vehicle may provide
657 coverage of such risks and that the purchase of the insurance is
658 not required in connection with the lease or rental of a motor
659 vehicle. If the lease is extended beyond 60 days, the coverage
660 may be extended one time only for up to 60 a period not to
661 exceed an additional 60 days. Insurance may be provided to the
662 lessee as an additional insured on a policy issued to the
663 licensee’s employer.
664 3. The license may be issued only to the full-time salaried
665 employee of a licensed general lines agent or to a business
666 entity that offers motor vehicles for rent or lease if insurance
667 sales activities authorized by the license are in connection
668 with and incidental to the rental or lease of a motor vehicle.
669 a. A license issued to a business entity that offers motor
670 vehicles for rent or lease encompasses each office, branch
671 office, employee, and authorized representative located at a
672 designated branch or place of business making use of the
673 entity’s business name in order to offer, solicit, and sell
674 insurance pursuant to this paragraph.
675 b. The application for licensure must list the name,
676 address, and phone number for each office, branch office, or
677 place of business that is to be covered by the license. The
678 licensee shall notify the department of the name, address, and
679 phone number of any new location that is to be covered by the
680 license before the new office, branch office, or place of
681 business engages in the sale of insurance pursuant to this
682 paragraph. The licensee must notify the department within 30
683 days after closing or terminating an office, branch office, or
684 place of business. Upon receipt of the notice, the department
685 shall delete the office, branch office, or place of business
686 from the license.
687 c. A licensed and appointed entity is directly responsible
688 and accountable for all acts of the licensee’s employees.
689 Section 15. Effective January 1, 2015, section 626.382,
690 Florida Statutes, is amended to read:
691 626.382 Continuation, expiration of license; insurance
692 agencies.—The license of an any insurance agency shall be issued
693 for a period of 3 years and shall continue in force until
694 canceled, suspended, or revoked, or until it is otherwise
695 terminated or expires by operation of law. A license may be
696 renewed by submitting a renewal request to the department on a
697 form adopted by department rule.
698 Section 16. Section 626.601, Florida Statutes, is amended
699 to read:
700 626.601 Improper conduct; investigation inquiry;
701 fingerprinting.—
702 (1) The department or office may, upon its own motion or
703 upon a written complaint signed by an any interested person and
704 filed with the department or office, inquire into the any
705 alleged improper conduct of any licensed, approved, or certified
706 licensee, insurance agency, agent, adjuster, service
707 representative, managing general agent, customer representative,
708 title insurance agent, title insurance agency, mediator, neutral
709 evaluator, navigator, continuing education course provider,
710 instructor, school official, or monitor group under this code.
711 The department or office may thereafter initiate an
712 investigation of any such individual or entity licensee if it
713 has reasonable cause to believe that the individual or entity
714 licensee has violated any provision of the insurance code.
715 During the course of its investigation, the department or office
716 shall contact the individual or entity licensee being
717 investigated unless it determines that contacting such
718 individual or entity person could jeopardize the successful
719 completion of the investigation or cause injury to the public.
720 (2) In the investigation by the department or office of any
721 the alleged misconduct, an individual or entity the licensee
722 shall, if whenever so required by the department or office,
723 cause the individual’s or entity’s his or her books and records
724 to be open for inspection for the purpose of such investigation
725 inquiries.
726 (3) The Complaints against an individual or entity any
727 licensee may be informally alleged and are not required to
728 include need not be in any such language as is necessary to
729 charge a crime on an indictment or information.
730 (4) The expense for any hearings or investigations
731 conducted under this section law, as well as the fees and
732 mileage of witnesses, may be paid out of the appropriate fund.
733 (5) If the department or office, after investigation, the
734 department or office has reason to believe that an individual a
735 licensee may have been found guilty of or pleaded guilty or nolo
736 contendere to a felony or a crime related to the business of
737 insurance in this or any other state or jurisdiction, the
738 department or office may require the individual licensee to file
739 with the department or office a complete set of his or her
740 fingerprints, which shall be accompanied by the fingerprint
741 processing fee set forth in s. 624.501. The fingerprints shall
742 be taken by an authorized law enforcement agency or other
743 department-approved entity.
744 (6) The complaint and any information obtained pursuant to
745 the investigation by the department or office are confidential
746 and are exempt from the provisions of s. 119.07, unless the
747 department or office files a formal administrative complaint,
748 emergency order, or consent order against the individual or
749 entity licensee. Nothing in This subsection does not shall be
750 construed to prevent the department or office from disclosing
751 the complaint or such information as it deems necessary to
752 conduct the investigation, to update the complainant as to the
753 status and outcome of the complaint, or to share such
754 information with any law enforcement agency or other regulatory
755 body.
756 Section 17. Section 626.611, Florida Statutes, is amended
757 to read:
758 626.611 Grounds for compulsory refusal, suspension, or
759 revocation of agent’s, title agency’s, adjuster’s, customer
760 representative’s, service representative’s, or managing general
761 agent’s license or appointment.—
762 (1) The department shall deny an application for, suspend,
763 revoke, or refuse to renew or continue the license or
764 appointment of an any applicant, agent, title agency, adjuster,
765 customer representative, service representative, or managing
766 general agent, and it shall suspend or revoke the eligibility to
767 hold a license or appointment of any such person, if it finds
768 that as to the applicant, licensee, or appointee any one or more
769 of the following applicable grounds exist:
770 (a)(1) Lack of one or more of the qualifications for the
771 license or appointment as specified in this code.
772 (b)(2) Material misstatement, misrepresentation, or fraud
773 in obtaining the license or appointment or in attempting to
774 obtain the license or appointment.
775 (c)(3) Failure to pass to the satisfaction of the
776 department any examination required under this code.
777 (d)(4) If the license or appointment is willfully used, or
778 to be used, to circumvent any of the requirements or
779 prohibitions of this code.
780 (e)(5) Willful misrepresentation of any insurance policy or
781 annuity contract or willful deception with regard to any such
782 policy or contract, done either in person or by any form of
783 dissemination of information or advertising.
784 (f)(6) If, as an adjuster, or as an agent licensed and
785 appointed to adjust claims under this code, he or she has
786 materially misrepresented to an insured or other interested
787 party the terms and coverage of an insurance contract with
788 intent and for the purpose of effecting settlement of claim for
789 loss or damage or benefit under such contract on less favorable
790 terms than those provided in and contemplated by the contract.
791 (g)(7) Demonstrated lack of fitness or trustworthiness to
792 engage in the business of insurance.
793 (h)(8) Demonstrated lack of reasonably adequate knowledge
794 and technical competence to engage in the transactions
795 authorized by the license or appointment.
796 (i)(9) Fraudulent or dishonest practices in the conduct of
797 business under the license or appointment.
798 (j)(10) Misappropriation, conversion, or unlawful
799 withholding of moneys belonging to insurers or insureds or
800 beneficiaries or to others and received in conduct of business
801 under the license or appointment.
802 (k)(11) Unlawfully rebating, attempting to unlawfully
803 rebate, or unlawfully dividing or offering to divide his or her
804 commission with another.
805 (l)(12) Having obtained or attempted to obtain, or having
806 used or using, a license or appointment as agent or customer
807 representative for the purpose of soliciting or handling
808 “controlled business” as defined in s. 626.730 with respect to
809 general lines agents, s. 626.784 with respect to life agents,
810 and s. 626.830 with respect to health agents.
811 (m)(13) Willful failure to comply with, or willful
812 violation of, any proper order or rule of the department or
813 willful violation of any provision of this code.
814 (n)(14) Having been found guilty of or having pleaded
815 guilty or nolo contendere to a felony or a crime punishable by
816 imprisonment of 1 year or more under the law of the United
817 States of America or of any state thereof or under the law of
818 any other country which involves moral turpitude, without regard
819 to whether a judgment of conviction has been entered by the
820 court having jurisdiction of such cases.
821 (o)(15) Fraudulent or dishonest practice in submitting or
822 aiding or abetting any person in the submission of an
823 application for workers’ compensation coverage under chapter 440
824 containing false or misleading information as to employee
825 payroll or classification for the purpose of avoiding or
826 reducing the amount of premium due for such coverage.
827 (p)(16) Sale of an unregistered security that was required
828 to be registered, pursuant to chapter 517.
829 (q)(17) In transactions related to viatical settlement
830 contracts as defined in s. 626.9911:
831 1.(a) Commission of a fraudulent or dishonest act.
832 2.(b) No longer meeting the requirements for initial
833 licensure.
834 3.(c) Having received a fee, commission, or other valuable
835 consideration for his or her services with respect to viatical
836 settlements that involved unlicensed viatical settlement
837 providers or persons who offered or attempted to negotiate on
838 behalf of another person a viatical settlement contract as
839 defined in s. 626.9911 and who were not licensed life agents.
840 4.(d) Dealing in bad faith with viators.
841 (2) Upon receipt of an information or indictment, the
842 department shall immediately temporarily suspend a license or
843 appointment issued under this chapter if the licensee is charged
844 with a felony enumerated in s. 626.207(3). The suspension shall
845 continue if the licensee is found guilty of, or pleads guilty or
846 nolo contendere to, the crime, regardless of whether a judgment
847 or conviction is entered, during a pending appeal. A person may
848 not transact insurance business after suspension of his or her
849 license or appointment.
850 Section 18. Subsection (2) of section 626.641, Florida
851 Statutes, is amended to read:
852 626.641 Duration of suspension or revocation.—
853 (2) No person or appointee under any license or appointment
854 revoked by the department, nor any person whose eligibility to
855 hold same has been revoked by the department, shall have the
856 right to apply for another license or appointment under this
857 code within 2 years after from the effective date of such
858 revocation or, if judicial review of such revocation is sought,
859 within 2 years after from the date of final court order or
860 decree affirming the revocation. An applicant for another
861 license or appointment pursuant to this subsection must apply
862 and qualify for licensure in the same manner as a first-time
863 applicant, and the application may be denied on the same grounds
864 that apply to first-time applicants for licensure pursuant to
865 ss. 626.207, 626.611, and 626.621. In addition, the department
866 may shall not grant a new license or appointment or reinstate
867 eligibility to hold such license or appointment if it finds that
868 the circumstance or circumstances for which the eligibility was
869 revoked or for which the previous license or appointment was
870 revoked still exist or are likely to recur, or; if an
871 individual’s license as agent or customer representative or
872 eligibility to hold same has been revoked upon the ground
873 specified in s. 626.611(1)(l) s. 626.611(12), the department
874 shall refuse to grant or issue any new license or appointment so
875 applied for.
876 Section 19. Section 626.733, Florida Statutes, is amended
877 to read:
878 626.733 Agency firms and corporations; special
879 requirements.—If a sole proprietorship, partnership,
880 corporation, or association holds an agency contract, all
881 members thereof who solicit, negotiate, or effect insurance
882 contracts, and all officers and stockholders of the corporation
883 who solicit, negotiate, or effect insurance contracts, must are
884 required to qualify and be licensed individually as agents or
885 customer representatives,; and all of such agents must be
886 individually appointed as to each property and casualty insurer
887 entering into an agency contract with such agency. Each such
888 appointing insurer as soon as known to it shall comply with this
889 section and shall determine and require that each agent so
890 associated in or so connected with such agency is likewise
891 appointed as to the same such insurer and for the same type and
892 class of license. However, an no insurer is not required to
893 comply with the appointment provisions of this section for an
894 agent within an agency who does not solicit, negotiate, or
895 effect insurance contracts for that insurer if such insurer
896 satisfactorily demonstrates to the department that the insurer
897 has issued an aggregate net written premium, in an agency, in an
898 amount of $25,000 or less.
899 Section 20. Paragraphs (a) and (g) of subsection (1) of
900 section 626.7355, Florida Statutes, are amended to read:
901 626.7355 Temporary license as customer representative
902 pending examination.—
903 (1) The department shall issue a temporary customer
904 representative’s license with respect to a person who has
905 applied for such license upon finding that the person:
906 (a) Has filed an application for a customer
907 representative’s license or a limited customer representative’s
908 license and has paid any fees required under s. 624.501(5) in
909 connection with such application for a customer representative’s
910 license or limited customer representative’s license.
911 (g) Is not disqualified from licensure by the department
912 under s. 626.207 Within the last 5 years, has not been
913 convicted, found guilty or pleaded nolo contendere to a felony
914 or a crime punishable by imprisonment of 1 year or more under
915 the law of any municipality, county, state, territory, or
916 country, whether or not a judgment of conviction has been
917 entered.
918 Section 21. Effective January 1, 2015, section 626.747,
919 Florida Statutes, is repealed.
920 Section 22. Subsection (1) of section 626.7845, Florida
921 Statutes, is amended to read:
922 626.7845 Prohibition against unlicensed transaction of life
923 insurance.—
924 (1) An individual may not solicit or sell variable life
925 insurance, variable annuity contracts, or any other
926 indeterminate value or variable contract as defined in s.
927 627.8015, unless the individual has successfully completed a
928 licensure examination relating to variable annuity contracts
929 authorized and approved by the department.
930 Section 23. Effective January 1, 2015, subsection (1) of
931 section 626.8411, Florida Statutes, is amended to read:
932 626.8411 Application of Florida Insurance Code provisions
933 to title insurance agents or agencies.—
934 (1) The following provisions of part II applicable to
935 general lines agents or agencies also apply to title insurance
936 agents or agencies:
937 (a) Section 626.734, relating to liability of certain
938 agents.
939 (b) Section 626.0428(4)(a) and (b) 626.747, relating to
940 branch agencies.
941 (c) Section 626.749, relating to place of business in
942 residence.
943 (d) Section 626.753, relating to sharing of commissions.
944 (e) Section 626.754, relating to rights of agent following
945 termination of appointment.
946 Section 24. Subsection (2) of section 626.861, Florida
947 Statutes, is amended to read:
948 626.861 Insurer’s officers, insurer’s employees, reciprocal
949 insurer’s representatives; adjustments by.—
950 (2) If any such officer, employee, attorney, or agent in
951 connection with the adjustment of any such claim, loss, or
952 damage engages in any of the misconduct described in or
953 contemplated by s. 626.611(1)(f) s. 626.611(6), the office may
954 suspend or revoke the insurer’s certificate of authority.
955 Section 25. Section 626.862, Florida Statutes, is amended
956 to read:
957 626.862 Agents; adjustments by.—A licensed and appointed
958 insurance agent may, without being licensed as an adjuster,
959 adjust losses for the insurer represented by him or her as agent
960 if so authorized by the insurer. The license and appointment of
961 the agent may be suspended or revoked for violation of or
962 misconduct prohibited by s. 626.611(1)(f) s. 626.611(6).
963 Section 26. Subsection (2) of section 626.9272, Florida
964 Statutes, is amended to read:
965 626.9272 Licensing of nonresident surplus lines agents.—
966 (2) The department may not issue a license unless the
967 applicant satisfies the same licensing requirements under s.
968 626.927 as required of a resident surplus lines agent, excluding
969 the required experience or coursework and examination. The
970 department may refuse to issue such license or appointment if
971 when it has reason to believe that any of the grounds exist for
972 denial, suspension, or revocation of a license as set forth in
973 ss. 626.611 and 626.621.
974 Section 27. Section 627.4553, Florida Statutes, is created
975 to read:
976 627.4553 Recommendations to surrender.—If an insurance
977 agent recommends the surrender of an annuity or life insurance
978 policy containing a cash value but does not recommend that the
979 proceeds from the surrender be used to fund or purchase another
980 annuity or life insurance policy, before execution of the
981 surrender, the insurance agent, or the insurance company if no
982 agent is involved, must provide, on a form that satisfies the
983 requirements of the rule adopted by the department, information
984 relating to the annuity or policy to be surrendered. Such
985 information must include, but need not limited to, the amount of
986 any surrender charge, the loss of any minimum interest rate
987 guarantees, the amount of any tax consequences resulting from
988 the transaction, the amount of any forfeited death benefit, and
989 the value of any other investment performance guarantees being
990 forfeited as a result of the transaction. This section also
991 applies to a person performing insurance agent activities
992 pursuant to an exemption from licensure under this part.
993 Section 28. Paragraph (b) of subsection (4) of section
994 627.7015, Florida Statutes, is amended to read:
995 627.7015 Alternative procedure for resolution of disputed
996 property insurance claims.—
997 (4) The department shall adopt by rule a property insurance
998 mediation program to be administered by the department or its
999 designee. The department may also adopt special rules which are
1000 applicable in cases of an emergency within the state. The rules
1001 shall be modeled after practices and procedures set forth in
1002 mediation rules of procedure adopted by the Supreme Court. The
1003 rules shall provide for:
1004 (b) Qualifications, denial of application, suspension,
1005 revocation, and other penalties for of mediators as provided in
1006 s. 627.745 and in the Florida Rules for of Certified and Court
1007 Appointed Court Appointed Mediators, and for such other
1008 individuals as are qualified by education, training, or
1009 experience as the department determines to be appropriate.
1010 Section 29. Paragraph (c) of subsection (2) of section
1011 627.706, Florida Statutes, is amended to read:
1012 627.706 Sinkhole insurance; catastrophic ground cover
1013 collapse; definitions.—
1014 (2) As used in ss. 627.706-627.7074, and as used in
1015 connection with any policy providing coverage for a catastrophic
1016 ground cover collapse or for sinkhole losses, the term:
1017 (c) “Neutral evaluator” means a professional engineer or a
1018 professional geologist who has completed a course of study in
1019 alternative dispute resolution designed or approved by the
1020 department for use in the neutral evaluation process, and who is
1021 determined by the department to be fair and impartial, and who
1022 is not otherwise ineligible for certification as provided in s.
1023 627.7074.
1024 Section 30. Subsections (7) and (18) of section 627.7074,
1025 Florida Statutes, are amended to read:
1026 627.7074 Alternative procedure for resolution of disputed
1027 sinkhole insurance claims.—
1028 (7) Upon receipt of a request for neutral evaluation, the
1029 department shall provide the parties a list of certified neutral
1030 evaluators. The department shall allow the parties to submit
1031 requests to disqualify evaluators on the list for cause.
1032 (a) The department shall disqualify neutral evaluators for
1033 cause based only on any of the following grounds:
1034 1. A familial relationship exists between the neutral
1035 evaluator and either party or a representative of either party
1036 within the third degree.
1037 2. The proposed neutral evaluator has, in a professional
1038 capacity, previously represented either party or a
1039 representative of either party, in the same or a substantially
1040 related matter.
1041 3. The proposed neutral evaluator has, in a professional
1042 capacity, represented another person in the same or a
1043 substantially related matter and that person’s interests are
1044 materially adverse to the interests of the parties. The term
1045 “substantially related matter” means participation by the
1046 neutral evaluator on the same claim, property, or adjacent
1047 property.
1048 4. The proposed neutral evaluator has, within the preceding
1049 5 years, worked as an employer or employee of a any party to the
1050 case.
1051 (b) The department shall deny an application, or suspend or
1052 revoke its certification, of a neutral evaluator to serve in
1053 such capacity if the department finds that one or more of the
1054 following grounds exist:
1055 1. Lack of one or more of the qualifications specified in
1056 this section for certification.
1057 2. Material misstatement, misrepresentation, or fraud in
1058 obtaining or attempting to obtain certification.
1059 3. Demonstrated lack of fitness or trustworthiness to act
1060 as a neutral evaluator.
1061 4. Fraudulent or dishonest practices in the conduct of an
1062 evaluation or in the conduct of financial services business.
1063 5. Violation of any provision of this code or of a lawful
1064 order or rule of the department or aiding, instructing, or
1065 encouraging another party in committing such a violation.
1066 (c)(b) The parties shall appoint a neutral evaluator from
1067 the department list and promptly inform the department. If the
1068 parties cannot agree to a neutral evaluator within 14 business
1069 days, the department shall appoint a neutral evaluator from the
1070 list of certified neutral evaluators. The department shall allow
1071 each party to disqualify two neutral evaluators without cause.
1072 Upon selection or appointment, the department shall promptly
1073 refer the request to the neutral evaluator.
1074 (d)(c) Within 14 business days after the referral, the
1075 neutral evaluator shall notify the policyholder and the insurer
1076 of the date, time, and place of the neutral evaluation
1077 conference. The conference may be held by telephone, if feasible
1078 and desirable. The neutral evaluator shall make reasonable
1079 efforts to hold the conference within 90 days after the receipt
1080 of the request by the department. Failure of the neutral
1081 evaluator to hold the conference within 90 days does not
1082 invalidate either party’s right to neutral evaluation or to a
1083 neutral evaluation conference held outside this timeframe.
1084 (18) The department shall adopt rules of procedure for the
1085 neutral evaluation process and rules for certifying, denying
1086 certification of, suspending certification of, and revoking
1087 certification as a neutral evaluator.
1088 Section 31. Subsection (3) of section 627.745, Florida
1089 Statutes, is amended, present subsections (4) and (5) of that
1090 section are renumbered as subsections (5) and (6), respectively,
1091 and a new subsection (4) is added to that section, to read:
1092 627.745 Mediation of claims.—
1093 (3)(a) The department shall approve Mediators who to
1094 conduct mediations pursuant to this section. All mediators must
1095 file an application under oath and be approved by the department
1096 for approval as a mediator.
1097 (b) To qualify for approval as a mediator, an individual a
1098 person must meet one of the following qualifications:
1099 (a)1. Possess active certification as a Florida Supreme
1100 Court certified circuit court mediator. A Florida Supreme Court
1101 certified circuit court mediator in a lapsed, suspended,
1102 sanctioned, or decertified status is not eligible to participate
1103 in the mediation program a masters or doctorate degree in
1104 psychology, counseling, business, accounting, or economics, be a
1105 member of The Florida Bar, be licensed as a certified public
1106 accountant, or demonstrate that the applicant for approval has
1107 been actively engaged as a qualified mediator for at least 4
1108 years prior to July 1, 1990.
1109 (b)2. Be an approved department mediator as of July 1,
1110 2014, and have conducted at least one mediation on behalf of the
1111 department within 4 years immediately preceding that the date
1112 the application for approval is filed with the department, have
1113 completed a minimum of a 40-hour training program approved by
1114 the department and successfully passed a final examination
1115 included in the training program and approved by the department.
1116 The training program shall include and address all of the
1117 following:
1118 a. Mediation theory.
1119 b. Mediation process and techniques.
1120 c. Standards of conduct for mediators.
1121 d. Conflict management and intervention skills.
1122 e. Insurance nomenclature.
1123 (4) The department shall deny an application, or suspend or
1124 revoke its approval, of a mediator to serve in such capacity if
1125 the department finds that one or more of the following grounds
1126 exist:
1127 (a) Lack of one or more of the qualifications specified in
1128 this section for approval or certification.
1129 (b) Material misstatement, misrepresentation, or fraud in
1130 obtaining or attempting to obtain the approval or certification.
1131 (c) Demonstrated lack of fitness or trustworthiness to act
1132 as a mediator.
1133 (d) Fraudulent or dishonest practices in the conduct of
1134 mediation or in the conduct of business in the financial
1135 services industry.
1136 (e) Violation of any provision of this code or of a lawful
1137 order or rule of the department, violation of the Florida Rules
1138 for Certified and Court Appointed Mediators, or aiding,
1139 instructing, or encouraging another party in committing such a
1140 violation.
1141
1142 The department shall adopt rules for the approval or denial of
1143 mediator applications and the suspension and revocation of
1144 approval of mediators.
1145 Section 32. Paragraph (b) of subsection (1) of section
1146 627.952, Florida Statutes, is amended to read:
1147 627.952 Risk retention and purchasing group agents.—
1148 (1) Any person offering, soliciting, selling, purchasing,
1149 administering, or otherwise servicing insurance contracts,
1150 certificates, or agreements for any purchasing group or risk
1151 retention group to any resident of this state, either directly
1152 or indirectly, by the use of mail, advertising, or other means
1153 of communication, shall obtain a license and appointment to act
1154 as a resident general lines agent, if a resident of this state,
1155 or a nonresident general lines agent if not a resident. Any such
1156 person shall be subject to all requirements of the Florida
1157 Insurance Code.
1158 (b) Any person required to be licensed and appointed under
1159 this subsection, In order to place business through a Florida
1160 eligible Florida eligible surplus lines carrier carriers, a
1161 person required to be licensed and appointed under this
1162 subsection must:,
1163 1. If a resident of this state, be licensed and appointed
1164 as a surplus lines agent.
1165 2. If not a resident of this state, such person must be
1166 licensed and appointed as a surplus lines agent in her or his
1167 state of residence and be licensed and appointed as a
1168 nonresident surplus lines agent in this state file and maintain
1169 a fidelity bond in favor of the people of the State of Florida
1170 executed by a surety company admitted in this state and payable
1171 to the State of Florida; however, such nonresident is limited to
1172 the provision of insurance for purchasing groups. The bond must
1173 be continuous in form and in the amount of not less than
1174 $50,000, aggregate liability. The bond must remain in force and
1175 effect until the surety is released from liability by the
1176 department or until the bond is canceled by the surety. The
1177 surety may cancel the bond and be released from further
1178 liability upon 30 days’ prior written notice to the department.
1179 The cancellation does not affect any liability incurred or
1180 accrued before the termination of the 30-day period. Upon
1181 receipt of a notice of cancellation, the department shall
1182 immediately notify the agent.
1183 Section 33. Subsection (1) of section 648.43, Florida
1184 Statutes, is amended to read:
1185 648.43 Power of attorney; to be approved by department;
1186 filing of copies; notification of transfer bond.—
1187 (1) Every insurer engaged in the writing of bail bonds
1188 through bail bond agents in this state shall submit and have
1189 approved by the department a sample power of attorney to the
1190 office for prior approval, which shall will be the only form of
1191 power of attorney the insurer issues will issue to bail bond
1192 agents in this state.
1193 Section 34. Subsection (3) of section 648.49, Florida
1194 Statutes, is amended to read:
1195 648.49 Duration of suspension or revocation.—
1196 (3) During the period of suspension, or after revocation of
1197 the license and until the license is reinstated or a new license
1198 is issued, the former licensee may not engage in or attempt to
1199 profess to engage in any transaction or business for which a
1200 license or appointment is required under this chapter. A Any
1201 person who violates this subsection commits a felony of the
1202 third degree, punishable as provided in s. 775.082, s. 775.083,
1203 or s. 775.084.
1204 Section 35. Paragraph (a) of subsection (4) of section
1205 943.0585, Florida Statutes, is amended to read:
1206 943.0585 Court-ordered expunction of criminal history
1207 records.—The courts of this state have jurisdiction over their
1208 own procedures, including the maintenance, expunction, and
1209 correction of judicial records containing criminal history
1210 information to the extent such procedures are not inconsistent
1211 with the conditions, responsibilities, and duties established by
1212 this section. Any court of competent jurisdiction may order a
1213 criminal justice agency to expunge the criminal history record
1214 of a minor or an adult who complies with the requirements of
1215 this section. The court shall not order a criminal justice
1216 agency to expunge a criminal history record until the person
1217 seeking to expunge a criminal history record has applied for and
1218 received a certificate of eligibility for expunction pursuant to
1219 subsection (2). A criminal history record that relates to a
1220 violation of s. 393.135, s. 394.4593, s. 787.025, chapter 794,
1221 s. 796.03, s. 800.04, s. 810.14, s. 817.034, s. 825.1025, s.
1222 827.071, chapter 839, s. 847.0133, s. 847.0135, s. 847.0145, s.
1223 893.135, s. 916.1075, a violation enumerated in s. 907.041, or
1224 any violation specified as a predicate offense for registration
1225 as a sexual predator pursuant to s. 775.21, without regard to
1226 whether that offense alone is sufficient to require such
1227 registration, or for registration as a sexual offender pursuant
1228 to s. 943.0435, may not be expunged, without regard to whether
1229 adjudication was withheld, if the defendant was found guilty of
1230 or pled guilty or nolo contendere to the offense, or if the
1231 defendant, as a minor, was found to have committed, or pled
1232 guilty or nolo contendere to committing, the offense as a
1233 delinquent act. The court may only order expunction of a
1234 criminal history record pertaining to one arrest or one incident
1235 of alleged criminal activity, except as provided in this
1236 section. The court may, at its sole discretion, order the
1237 expunction of a criminal history record pertaining to more than
1238 one arrest if the additional arrests directly relate to the
1239 original arrest. If the court intends to order the expunction of
1240 records pertaining to such additional arrests, such intent must
1241 be specified in the order. A criminal justice agency may not
1242 expunge any record pertaining to such additional arrests if the
1243 order to expunge does not articulate the intention of the court
1244 to expunge a record pertaining to more than one arrest. This
1245 section does not prevent the court from ordering the expunction
1246 of only a portion of a criminal history record pertaining to one
1247 arrest or one incident of alleged criminal activity.
1248 Notwithstanding any law to the contrary, a criminal justice
1249 agency may comply with laws, court orders, and official requests
1250 of other jurisdictions relating to expunction, correction, or
1251 confidential handling of criminal history records or information
1252 derived therefrom. This section does not confer any right to the
1253 expunction of any criminal history record, and any request for
1254 expunction of a criminal history record may be denied at the
1255 sole discretion of the court.
1256 (4) EFFECT OF CRIMINAL HISTORY RECORD EXPUNCTION.—Any
1257 criminal history record of a minor or an adult which is ordered
1258 expunged by a court of competent jurisdiction pursuant to this
1259 section must be physically destroyed or obliterated by any
1260 criminal justice agency having custody of such record; except
1261 that any criminal history record in the custody of the
1262 department must be retained in all cases. A criminal history
1263 record ordered expunged that is retained by the department is
1264 confidential and exempt from the provisions of s. 119.07(1) and
1265 s. 24(a), Art. I of the State Constitution and not available to
1266 any person or entity except upon order of a court of competent
1267 jurisdiction. A criminal justice agency may retain a notation
1268 indicating compliance with an order to expunge.
1269 (a) The person who is the subject of a criminal history
1270 record that is expunged under this section or under other
1271 provisions of law, including former s. 893.14, former s. 901.33,
1272 and former s. 943.058, may lawfully deny or fail to acknowledge
1273 the arrests covered by the expunged record, except when the
1274 subject of the record:
1275 1. Is a candidate for employment with a criminal justice
1276 agency;
1277 2. Is a defendant in a criminal prosecution;
1278 3. Concurrently or subsequently petitions for relief under
1279 this section, s. 943.0583, or s. 943.059;
1280 4. Is a candidate for admission to The Florida Bar;
1281 5. Is seeking to be employed or licensed by or to contract
1282 with the Department of Children and Families, the Division of
1283 Vocational Rehabilitation within the Department of Education,
1284 the Agency for Health Care Administration, the Agency for
1285 Persons with Disabilities, the Department of Health, the
1286 Department of Elderly Affairs, or the Department of Juvenile
1287 Justice or to be employed or used by such contractor or licensee
1288 in a sensitive position having direct contact with children, the
1289 disabled, or the elderly; or
1290 6. Is seeking to be employed or licensed by the Department
1291 of Education, any district school board, any university
1292 laboratory school, any charter school, any private or parochial
1293 school, or any local governmental entity that licenses child
1294 care facilities.
1295 7. Is seeking to be licensed by the Division of Insurance
1296 Agent and Agency Services within the Department of Financial
1297 Services.
1298 Section 36. Paragraph (a) of subsection (4) of section
1299 943.059, Florida Statutes, is amended to read:
1300 943.059 Court-ordered sealing of criminal history records.
1301 The courts of this state shall continue to have jurisdiction
1302 over their own procedures, including the maintenance, sealing,
1303 and correction of judicial records containing criminal history
1304 information to the extent such procedures are not inconsistent
1305 with the conditions, responsibilities, and duties established by
1306 this section. Any court of competent jurisdiction may order a
1307 criminal justice agency to seal the criminal history record of a
1308 minor or an adult who complies with the requirements of this
1309 section. The court shall not order a criminal justice agency to
1310 seal a criminal history record until the person seeking to seal
1311 a criminal history record has applied for and received a
1312 certificate of eligibility for sealing pursuant to subsection
1313 (2). A criminal history record that relates to a violation of s.
1314 393.135, s. 394.4593, s. 787.025, chapter 794, s. 796.03, s.
1315 800.04, s. 810.14, s. 817.034, s. 825.1025, s. 827.071, chapter
1316 839, s. 847.0133, s. 847.0135, s. 847.0145, s. 893.135, s.
1317 916.1075, a violation enumerated in s. 907.041, or any violation
1318 specified as a predicate offense for registration as a sexual
1319 predator pursuant to s. 775.21, without regard to whether that
1320 offense alone is sufficient to require such registration, or for
1321 registration as a sexual offender pursuant to s. 943.0435, may
1322 not be sealed, without regard to whether adjudication was
1323 withheld, if the defendant was found guilty of or pled guilty or
1324 nolo contendere to the offense, or if the defendant, as a minor,
1325 was found to have committed or pled guilty or nolo contendere to
1326 committing the offense as a delinquent act. The court may only
1327 order sealing of a criminal history record pertaining to one
1328 arrest or one incident of alleged criminal activity, except as
1329 provided in this section. The court may, at its sole discretion,
1330 order the sealing of a criminal history record pertaining to
1331 more than one arrest if the additional arrests directly relate
1332 to the original arrest. If the court intends to order the
1333 sealing of records pertaining to such additional arrests, such
1334 intent must be specified in the order. A criminal justice agency
1335 may not seal any record pertaining to such additional arrests if
1336 the order to seal does not articulate the intention of the court
1337 to seal records pertaining to more than one arrest. This section
1338 does not prevent the court from ordering the sealing of only a
1339 portion of a criminal history record pertaining to one arrest or
1340 one incident of alleged criminal activity. Notwithstanding any
1341 law to the contrary, a criminal justice agency may comply with
1342 laws, court orders, and official requests of other jurisdictions
1343 relating to sealing, correction, or confidential handling of
1344 criminal history records or information derived therefrom. This
1345 section does not confer any right to the sealing of any criminal
1346 history record, and any request for sealing a criminal history
1347 record may be denied at the sole discretion of the court.
1348 (4) EFFECT OF CRIMINAL HISTORY RECORD SEALING.—A criminal
1349 history record of a minor or an adult which is ordered sealed by
1350 a court of competent jurisdiction pursuant to this section is
1351 confidential and exempt from the provisions of s. 119.07(1) and
1352 s. 24(a), Art. I of the State Constitution and is available only
1353 to the person who is the subject of the record, to the subject’s
1354 attorney, to criminal justice agencies for their respective
1355 criminal justice purposes, which include conducting a criminal
1356 history background check for approval of firearms purchases or
1357 transfers as authorized by state or federal law, to judges in
1358 the state courts system for the purpose of assisting them in
1359 their case-related decisionmaking responsibilities, as set forth
1360 in s. 943.053(5), or to those entities set forth in
1361 subparagraphs (a)1., 4., 5., 6., and 8. for their respective
1362 licensing, access authorization, and employment purposes.
1363 (a) The subject of a criminal history record sealed under
1364 this section or under other provisions of law, including former
1365 s. 893.14, former s. 901.33, and former s. 943.058, may lawfully
1366 deny or fail to acknowledge the arrests covered by the sealed
1367 record, except when the subject of the record:
1368 1. Is a candidate for employment with a criminal justice
1369 agency;
1370 2. Is a defendant in a criminal prosecution;
1371 3. Concurrently or subsequently petitions for relief under
1372 this section, s. 943.0583, or s. 943.0585;
1373 4. Is a candidate for admission to The Florida Bar;
1374 5. Is seeking to be employed or licensed by or to contract
1375 with the Department of Children and Families, the Division of
1376 Vocational Rehabilitation within the Department of Education,
1377 the Agency for Health Care Administration, the Agency for
1378 Persons with Disabilities, the Department of Health, the
1379 Department of Elderly Affairs, or the Department of Juvenile
1380 Justice or to be employed or used by such contractor or licensee
1381 in a sensitive position having direct contact with children, the
1382 disabled, or the elderly;
1383 6. Is seeking to be employed or licensed by the Department
1384 of Education, any district school board, any university
1385 laboratory school, any charter school, any private or parochial
1386 school, or any local governmental entity that licenses child
1387 care facilities; or
1388 7. Is attempting to purchase a firearm from a licensed
1389 importer, licensed manufacturer, or licensed dealer and is
1390 subject to a criminal history check under state or federal law.
1391 8. Is seeking to be licensed by the Division of Insurance
1392 Agent and Agency Services within the Department of Financial
1393 Services.
1394 Section 37. Except as otherwise expressly provided in this
1395 act, and except for this section which shall take effect upon
1396 becoming law, this act shall take effect July 1, 2014.