Florida Senate - 2014                        COMMITTEE AMENDMENT
       Bill No. SB 1260
                              LEGISLATIVE ACTION                        
                    Senate             .             House              
                  Comm: RCS            .                                
                  03/19/2014           .                                

    1         Senate Amendment (with title amendment)
    3         Delete everything after the enacting clause
    4  and insert:
    5         Section 1. Paragraphs (a) and (c) of subsection (6) and
    6  subsections (7) and (8) of section 624.501, Florida Statutes,
    7  are amended to read:
    8         624.501 Filing, license, appointment, and miscellaneous
    9  fees.—The department, commission, or office, as appropriate,
   10  shall collect in advance, and persons so served shall pay to it
   11  in advance, fees, licenses, and miscellaneous charges as
   12  follows:
   13         (6) Insurance representatives, property, marine, casualty,
   14  and surety insurance.
   15         (a) Agent’s original appointment and biennial renewal or
   16  continuation thereof, each insurer or unaffiliated agent making
   17  an appointment:
   18  Appointment fee...........................................$42.00
   19  State tax..................................................12.00
   20  County tax..................................................6.00
   21  Total.....................................................$60.00
   22         (c) Nonresident agent’s original appointment and biennial
   23  renewal or continuation thereof, appointment fee, each insurer
   24  or unaffiliated agent making an appointment...............$60.00
   25         (7) Life insurance agents.
   26         (a) Agent’s original appointment and biennial renewal or
   27  continuation thereof, each insurer or unaffiliated agent making
   28  an appointment:
   29  Appointment fee...........................................$42.00
   30  State tax..................................................12.00
   31  County tax..................................................6.00
   32  Total.....................................................$60.00
   33         (b) Nonresident agent’s original appointment and biennial
   34  renewal or continuation thereof, appointment fee, each insurer
   35  or unaffiliated agent making an appointment...............$60.00
   36         (8) Health insurance agents.
   37         (a) Agent’s original appointment and biennial renewal or
   38  continuation thereof, each insurer or unaffiliated agent making
   39  an appointment:
   40  Appointment fee...........................................$42.00
   41  State tax..................................................12.00
   42  County tax..................................................6.00
   43  Total.....................................................$60.00
   44         (b) Nonresident agent’s original appointment and biennial
   45  renewal or continuation thereof, appointment fee, each insurer
   46  or unaffiliated agent making an appointment...............$60.00
   47         Section 2. Present subsection (18) of section 626.015,
   48  Florida Statutes, is renumbered as subsection (19), and a new
   49  subsection (18) is added to that section, to read:
   50         626.015 Definitions.—As used in this part:
   51         (18) “Unaffiliated insurance agent” means a licensed
   52  insurance agent, except a limited lines agent, who is self
   53  appointed and who practices as an independent consultant in the
   54  business of analyzing or abstracting insurance policies,
   55  providing insurance advice or counseling, or making specific
   56  recommendations or comparisons of insurance products for a fee
   57  established in advance by written contract signed by the
   58  parties. An unaffiliated insurance agent may not be affiliated
   59  with an insurer, insurer-appointed insurance agent, or insurance
   60  agency contracted with or employing insurer-appointed insurance
   61  agents.
   62         Section 3. Effective January 1, 2015, section 626.0428,
   63  Florida Statutes, is amended to read:
   64         626.0428 Agency personnel powers, duties, and limitations.—
   65         (1) An individual employed by an agent or agency on salary
   66  who devotes full time to clerical work, with incidental taking
   67  of insurance applications or quoting or receiving premiums on
   68  incoming inquiries in the office of the agent or agency, is not
   69  deemed to be an agent or customer representative if his or her
   70  compensation does not include in whole or in part any
   71  commissions on such business and is not related to the
   72  production of applications, insurance, or premiums.
   73         (2) An employee or authorized representative located at a
   74  designated branch of an agent or agency may not bind insurance
   75  coverage unless licensed and appointed as an agent or customer
   76  representative.
   77         (3) An employee or authorized representative of an agent or
   78  agency may not initiate contact with any person for the purpose
   79  of soliciting insurance unless licensed and appointed as an
   80  agent or customer representative. As to title insurance, an
   81  employee of an agent or agency may not initiate contact with any
   82  individual proposed insured for the purpose of soliciting title
   83  insurance unless licensed as a title insurance agent or exempt
   84  from such licensure pursuant to s. 626.8417(4).
   85         (4)(a) Each place of business established by an agent or
   86  agency, firm, corporation, or association must be in the active
   87  full-time charge of a licensed and appointed agent holding the
   88  required agent licenses to transact the lines of insurance being
   89  handled at the location.
   90         (b) Notwithstanding paragraph (a), the licensed agent in
   91  charge of an insurance agency may also be the agent in charge of
   92  additional branch office locations of the agency if insurance
   93  activities requiring licensure as an insurance agent do not
   94  occur at any location when an agent is not physically present
   95  and unlicensed employees at the location do not engage in
   96  insurance activities requiring licensure as an insurance agent
   97  or customer representative.
   98         (c) An insurance agency and each branch place of business
   99  of an insurance agency shall designate an agent in charge and
  100  file the name and license number of the agent in charge and the
  101  physical address of the insurance agency location with the
  102  department and the department’s website. The designation of the
  103  agent in charge may be changed at the option of the agency. A
  104  change of the designated agent in charge is effective upon
  105  notice to the department. Notice to the department must be
  106  provided within 30 days after such change.
  107         (d) An insurance agency location may not conduct the
  108  business of insurance unless an agent in charge is designated by
  109  and providing services to the agency at all times. If the agent
  110  in charge designated with the department ends his or her
  111  affiliation with the agency for any reason and the agency fails
  112  to designate another agent in charge within 30 days as provided
  113  in paragraph (c) and such failure continues for 90 days, the
  114  agency license automatically expires on the 91st day after the
  115  last date of employment of the last designated agent in charge.
  116         (e) For purposes of this subsection, an “agent in charge”
  117  is the licensed and appointed agent responsible for the
  118  supervision of all individuals within an insurance agency
  119  location, regardless of whether the agent in charge handles a
  120  specific transaction or deals with the general public in the
  121  solicitation or negotiation of insurance contracts or the
  122  collection or accounting of money.
  123         (f) An agent in charge of an insurance agency is
  124  accountable for the wrongful acts, misconduct, or violations of
  125  this code committed by the licensee or by any person under his
  126  or her supervision while acting on behalf of the agency.
  127  However, an agent in charge is not criminally liable for any act
  128  unless the agent in charge personally committed the act or knew
  129  or should have known of the act and of the facts constituting a
  130  violation of this code.
  131         Section 4. Paragraph (b) of subsection (1) and subsection
  132  (7) of section 626.112, Florida Statutes, is amended to read:
  133         626.112 License and appointment required; agents, customer
  134  representatives, adjusters, insurance agencies, service
  135  representatives, managing general agents.—
  136         (1)
  137         (b) Except as provided in subsection (6) or in applicable
  138  department rules, and in addition to other conduct described in
  139  this chapter with respect to particular types of agents, a
  140  license as an insurance agent, service representative, customer
  141  representative, or limited customer representative is required
  142  in order to engage in the solicitation of insurance. Effective
  143  October 1, 2014, limited customer representative licenses may
  144  not be issued. For purposes of this requirement, as applicable
  145  to any of the license types described in this section, the
  146  solicitation of insurance is the attempt to persuade any person
  147  to purchase an insurance product by:
  148         1. Describing the benefits or terms of insurance coverage,
  149  including premiums or rates of return;
  150         2. Distributing an invitation to contract to prospective
  151  purchasers;
  152         3. Making general or specific recommendations as to
  153  insurance products;
  154         4. Completing orders or applications for insurance
  155  products;
  156         5. Comparing insurance products, advising as to insurance
  157  matters, or interpreting policies or coverages; or
  158         6. Offering or attempting to negotiate on behalf of another
  159  person a viatical settlement contract as defined in s. 626.9911.
  161  However, an employee leasing company licensed under pursuant to
  162  chapter 468 which is seeking to enter into a contract with an
  163  employer that identifies products and services offered to
  164  employees may deliver proposals for the purchase of employee
  165  leasing services to prospective clients of the employee leasing
  166  company setting forth the terms and conditions of doing
  167  business; classify employees as permitted by s. 468.529; collect
  168  information from prospective clients and other sources as
  169  necessary to perform due diligence on the prospective client and
  170  to prepare a proposal for services; provide and receive
  171  enrollment forms, plans, and other documents; and discuss or
  172  explain in general terms the conditions, limitations, options,
  173  or exclusions of insurance benefit plans available to the client
  174  or employees of the employee leasing company were the client to
  175  contract with the employee leasing company. Any advertising
  176  materials or other documents describing specific insurance
  177  coverages must identify and be from a licensed insurer or its
  178  licensed agent or a licensed and appointed agent employed by the
  179  employee leasing company. The employee leasing company may not
  180  advise or inform the prospective business client or individual
  181  employees of specific coverage provisions, exclusions, or
  182  limitations of particular plans. As to clients for which the
  183  employee leasing company is providing services pursuant to s.
  184  468.525(4), the employee leasing company may engage in
  185  activities permitted by ss. 626.7315, 626.7845, and 626.8305,
  186  subject to the restrictions specified in those sections. If a
  187  prospective client requests more specific information concerning
  188  the insurance provided by the employee leasing company, the
  189  employee leasing company must refer the prospective business
  190  client to the insurer or its licensed agent or to a licensed and
  191  appointed agent employed by the employee leasing company.
  192         Section 5. Effective January 1, 2015, subsection (7) of
  193  section 626.112, Florida Statutes, is amended to read:
  194         626.112 License and appointment required; agents, customer
  195  representatives, adjusters, insurance agencies, service
  196  representatives, managing general agents.—
  197         (7)(a) An Effective October 1, 2006, no individual, firm,
  198  partnership, corporation, association, or any other entity may
  199  not shall act in its own name or under a trade name, directly or
  200  indirectly, as an insurance agency, unless it possesses complies
  201  with s. 626.172 with respect to possessing an insurance agency
  202  license issued pursuant to s. 626.172 for each place of business
  203  at which it engages in any activity that which may be performed
  204  only by a licensed insurance agent. However, an insurance agency
  205  that is owned and operated by a single licensed agent conducting
  206  business in his or her individual name and not employing or
  207  otherwise using the services of or appointing other licensees is
  208  exempt from the agency licensing requirements of this
  209  subsection.
  210         (b) A branch place of business which is established by a
  211  licensed agency is considered a branch agency and is not
  212  required to be licensed if it transacts business under the same
  213  name and federal tax identification number as the licensed
  214  agency, has designated a licensed agent in charge of the
  215  location as required by s. 626.0428, and has submitted the
  216  address and telephone number of the location to the department
  217  for inclusion in the licensing record of the licensed agency
  218  within 30 days after insurance transactions begin at the
  219  location Each agency engaged in business in this state before
  220  January 1, 2003, which is wholly owned by insurance agents
  221  currently licensed and appointed under this chapter, each
  222  incorporated agency whose voting shares are traded on a
  223  securities exchange, each agency designated and subject to
  224  supervision and inspection as a branch office under the rules of
  225  the National Association of Securities Dealers, and each agency
  226  whose primary function is offering insurance as a service or
  227  member benefit to members of a nonprofit corporation may file an
  228  application for registration in lieu of licensure in accordance
  229  with s. 626.172(3). Each agency engaged in business before
  230  October 1, 2006, shall file an application for licensure or
  231  registration on or before October 1, 2006.
  232         (c)1. If an agency is required to be licensed but fails to
  233  file an application for licensure in accordance with this
  234  section, the department shall impose on the agency an
  235  administrative penalty in an amount of up to $10,000.
  236         2. If an agency is eligible for registration but fails to
  237  file an application for registration or an application for
  238  licensure in accordance with this section, the department shall
  239  impose on the agency an administrative penalty in an amount of
  240  up to $5,000.
  241         (d)(b)Effective October 1, 2015, the department must
  242  automatically convert the registration of an approved a
  243  registered insurance agency to shall, as a condition precedent
  244  to continuing business, obtain an insurance agency license if
  245  the department finds that, with respect to any majority owner,
  246  partner, manager, director, officer, or other person who manages
  247  or controls the agency, any person has:
  248         1. Been found guilty of, or has pleaded guilty or nolo
  249  contendere to, a felony in this state or any other state
  250  relating to the business of insurance or to an insurance agency,
  251  without regard to whether a judgment of conviction has been
  252  entered by the court having jurisdiction of the cases.
  253         2. Employed any individual in a managerial capacity or in a
  254  capacity dealing with the public who is under an order of
  255  revocation or suspension issued by the department. An insurance
  256  agency may request, on forms prescribed by the department,
  257  verification of any person’s license status. If a request is
  258  mailed within 5 working days after an employee is hired, and the
  259  employee’s license is currently suspended or revoked, the agency
  260  shall not be required to obtain a license, if the unlicensed
  261  person’s employment is immediately terminated.
  262         3. Operated the agency or permitted the agency to be
  263  operated in violation of s. 626.747.
  264         4. With such frequency as to have made the operation of the
  265  agency hazardous to the insurance-buying public or other
  266  persons:
  267         a. Solicited or handled controlled business. This
  268  subparagraph shall not prohibit the licensing of any lending or
  269  financing institution or creditor, with respect to insurance
  270  only, under credit life or disability insurance policies of
  271  borrowers from the institutions, which policies are subject to
  272  part IX of chapter 627.
  273         b. Misappropriated, converted, or unlawfully withheld
  274  moneys belonging to insurers, insureds, beneficiaries, or others
  275  and received in the conduct of business under the license.
  276         c. Unlawfully rebated, attempted to unlawfully rebate, or
  277  unlawfully divided or offered to divide commissions with
  278  another.
  279         d. Misrepresented any insurance policy or annuity contract,
  280  or used deception with regard to any policy or contract, done
  281  either in person or by any form of dissemination of information
  282  or advertising.
  283         e. Violated any provision of this code or any other law
  284  applicable to the business of insurance in the course of dealing
  285  under the license.
  286         f. Violated any lawful order or rule of the department.
  287         g. Failed or refused, upon demand, to pay over to any
  288  insurer he or she represents or has represented any money coming
  289  into his or her hands belonging to the insurer.
  290         h. Violated the provision against twisting as defined in s.
  291  626.9541(1)(l).
  292         i. In the conduct of business, engaged in unfair methods of
  293  competition or in unfair or deceptive acts or practices, as
  294  prohibited under part IX of this chapter.
  295         j. Willfully overinsured any property insurance risk.
  296         k. Engaged in fraudulent or dishonest practices in the
  297  conduct of business arising out of activities related to
  298  insurance or the insurance agency.
  299         l. Demonstrated lack of fitness or trustworthiness to
  300  engage in the business of insurance arising out of activities
  301  related to insurance or the insurance agency.
  302         m. Authorized or knowingly allowed individuals to transact
  303  insurance who were not then licensed as required by this code.
  304         5. Knowingly employed any person who within the preceding 3
  305  years has had his or her relationship with an agency terminated
  306  in accordance with paragraph (d).
  307         6. Willfully circumvented the requirements or prohibitions
  308  of this code.
  309         Section 6. Subsections (2), (3), and (4) of section
  310  626.172, Florida Statutes, are amended to read:
  311         626.172 Application for insurance agency license.—
  312         (2) An application for an insurance agency license must
  313  shall be signed by an individual required to be listed in the
  314  application under paragraph (a) the owner or owners of the
  315  agency. If the agency is incorporated, the application shall be
  316  signed by the president and secretary of the corporation. An
  317  insurance agency may allow a third party to complete, submit,
  318  and sign an application on the insurance agency’s behalf, but
  319  the insurance agency is responsible for ensuring that the
  320  information on the application is true and correct and is
  321  accountable for any misstatements or misrepresentations. The
  322  application for an insurance agency license must shall include:
  323         (a) The name of each majority owner, partner, officer, and
  324  director, president, senior vice president, secretary,
  325  treasurer, and limited liability company member, who directs or
  326  participates in the management or control of the insurance
  327  agency, whether through ownership of voting securities, by
  328  contract, by ownership of an agency bank account, or otherwise.
  329         (b) The residence address of each person required to be
  330  listed in the application under paragraph (a).
  331         (c) The name, principal business street address, and e-mail
  332  address of the insurance agency and the name, address, and e
  333  mail address of the agency’s registered agent or person or
  334  company authorized to accept service on behalf of the agency its
  335  principal business address.
  336         (d) The name, physical address, e-mail address, and
  337  telephone number location of each branch agency and the date
  338  that the branch location begins transacting insurance office and
  339  the name under which each agency office conducts or will conduct
  340  business.
  341         (e) The name of each agent to be in full-time charge of an
  342  agency office and specification of which office, including
  343  branch locations.
  344         (f) The fingerprints of each of the following:
  345         1. A sole proprietor;
  346         2. Each individual required to be listed in the application
  347  under paragraph (a) partner; and
  348         3. Each owner of an unincorporated agency;
  349         3.4. Each individual owner who directs or participates in
  350  the management or control of an incorporated agency whose shares
  351  are not traded on a securities exchange;
  352         5. The president, senior vice presidents, treasurer,
  353  secretary, and directors of the agency; and
  354         6. Any other person who directs or participates in the
  355  management or control of the agency, whether through the
  356  ownership of voting securities, by contract, or otherwise.
  358  Fingerprints must be taken by a law enforcement agency or other
  359  entity approved by the department and must be accompanied by the
  360  fingerprint processing fee specified in s. 624.501. Fingerprints
  361  must shall be processed in accordance with s. 624.34. However,
  362  fingerprints need not be filed for an any individual who is
  363  currently licensed and appointed under this chapter. This
  364  paragraph does not apply to corporations whose voting shares are
  365  traded on a securities exchange.
  366         (g) Such additional information as the department requires
  367  by rule to ascertain the trustworthiness and competence of
  368  persons required to be listed on the application and to
  369  ascertain that such persons meet the requirements of this code.
  370  However, the department may not require that credit or character
  371  reports be submitted for persons required to be listed on the
  372  application.
  373         (3)(h)Beginning October 1, 2005, The department must shall
  374  accept the uniform application for nonresident agency licensure.
  375  The department may adopt by rule revised versions of the uniform
  376  application.
  377         (3)The department shall issue a registration as an
  378  insurance agency to any agency that files a written application
  379  with the department and qualifies for registration. The
  380  application for registration shall require the agency to provide
  381  the same information required for an agency licensed under
  382  subsection (2), the agent identification number for each owner
  383  who is a licensed agent, proof that the agency qualifies for
  384  registration as provided in s. 626.112(7), and any other
  385  additional information that the department determines is
  386  necessary in order to demonstrate that the agency qualifies for
  387  registration. The application must be signed by the owner or
  388  owners of the agency. If the agency is incorporated, the
  389  application must be signed by the president and the secretary of
  390  the corporation. An agent who owns the agency need not file
  391  fingerprints with the department if the agent obtained a license
  392  under this chapter and the license is currently valid.
  393         (a) If an application for registration is denied, the
  394  agency must file an application for licensure no later than 30
  395  days after the date of the denial of registration.
  396         (b) A registered insurance agency must file an application
  397  for licensure no later than 30 days after the date that any
  398  person who is not a licensed and appointed agent in this state
  399  acquires any ownership interest in the agency. If an agency
  400  fails to file an application for licensure in compliance with
  401  this paragraph, the department shall impose an administrative
  402  penalty in an amount of up to $5,000 on the agency.
  403         (c) Sections 626.6115 and 626.6215 do not apply to agencies
  404  registered under this subsection.
  405         (4) The department must shall issue a license or
  406  registration to each agency upon approval of the application,
  407  and each agency location must shall display the license or
  408  registration prominently in a manner that makes it clearly
  409  visible to any customer or potential customer who enters the
  410  agency location.
  411         Section 7. Present subsection (6) of section 626.311,
  412  Florida Statutes, is redesignated as subsection (7), and a new
  413  subsection (6) is added to that section, to read:
  414         626.311 Scope of license.—
  415         (6) An agent who appoints his or her license as an
  416  unaffiliated insurance agent may not hold an appointment from an
  417  insurer for any license he or she holds; transact, solicit, or
  418  service an insurance contract on behalf of an insurer; interfere
  419  with commissions received or to be received by an insurer
  420  appointed insurance agent or an insurance agency contracted with
  421  or employing insurer-appointed insurance agents; or receive
  422  compensation or any other thing of value from an insurer, an
  423  insurer-appointed insurance agent, or an insurance agency
  424  contracted with or employing insurer-appointed insurance agents
  425  for any transaction or referral occurring after the date of
  426  appointment as an unaffiliated insurance agent. An unaffiliated
  427  insurance agent may continue to receive commissions on sales
  428  that occurred before the date of appointment as an unaffiliated
  429  insurance agent if the receipt of such commissions is disclosed
  430  when making recommendations or evaluating products for a client
  431  that involve products of the entity from which the commissions
  432  are received.
  433         Section 8. Paragraph (d) of subsection (1) of section
  434  626.321, Florida Statutes, is amended to read:
  435         626.321 Limited licenses.—
  436         (1) The department shall issue to a qualified applicant a
  437  license as agent authorized to transact a limited class of
  438  business in any of the following categories of limited lines
  439  insurance:
  440         (d) Motor vehicle rental insurance.—
  441         1. License covering only insurance of the risks set forth
  442  in this paragraph when offered, sold, or solicited with and
  443  incidental to the rental or lease of a motor vehicle and which
  444  applies only to the motor vehicle that is the subject of the
  445  lease or rental agreement and the occupants of the motor
  446  vehicle:
  447         a. Excess motor vehicle liability insurance providing
  448  coverage in excess of the standard liability limits provided by
  449  the lessor in the lessor’s lease to a person renting or leasing
  450  a motor vehicle from the licensee’s employer for liability
  451  arising in connection with the negligent operation of the leased
  452  or rented motor vehicle.
  453         b. Insurance covering the liability of the lessee to the
  454  lessor for damage to the leased or rented motor vehicle.
  455         c. Insurance covering the loss of or damage to baggage,
  456  personal effects, or travel documents of a person renting or
  457  leasing a motor vehicle.
  458         d. Insurance covering accidental personal injury or death
  459  of the lessee and any passenger who is riding or driving with
  460  the covered lessee in the leased or rented motor vehicle.
  461         2. Insurance under a motor vehicle rental insurance license
  462  may be issued only if the lease or rental agreement is for up to
  463  no more than 60 days, the lessee is not provided coverage for
  464  more than 60 consecutive days per lease period, and the lessee
  465  is given written notice that his or her personal insurance
  466  policy providing coverage on an owned motor vehicle may provide
  467  coverage of such risks and that the purchase of the insurance is
  468  not required in connection with the lease or rental of a motor
  469  vehicle. If the lease is extended beyond 60 days, the coverage
  470  may be extended one time only once for up to a period not to
  471  exceed an additional 60 days. Insurance may be provided to the
  472  lessee as an additional insured on a policy issued to the
  473  licensee’s employer.
  474         3. The license may be issued only to the full-time salaried
  475  employee of a licensed general lines agent or to a business
  476  entity that offers motor vehicles for rent or lease if insurance
  477  sales activities authorized by the license are in connection
  478  with and incidental to the rental or lease of a motor vehicle.
  479         a. A license issued to a business entity that offers motor
  480  vehicles for rent or lease encompasses each office, branch
  481  office, employee, authorized representative located at a
  482  designated branch, or place of business making use of the
  483  entity’s business name in order to offer, solicit, and sell
  484  insurance pursuant to this paragraph.
  485         b. The application for licensure must list the name,
  486  address, and phone number for each office, branch office, or
  487  place of business which that is to be covered by the license.
  488  The licensee shall notify the department of the name, address,
  489  and phone number of any new location that is to be covered by
  490  the license before the new office, branch office, or place of
  491  business engages in the sale of insurance pursuant to this
  492  paragraph. The licensee must notify the department within 30
  493  days after closing or terminating an office, branch office, or
  494  place of business. Upon receipt of the notice, the department
  495  shall delete the office, branch office, or place of business
  496  from the license.
  497         c. A licensed and appointed entity is directly responsible
  498  and accountable for all acts of the licensee’s employees.
  499         Section 9. Effective January, 1, 2015, section 626.382,
  500  Florida Statutes, is amended to read:
  501         626.382 Continuation, expiration of license; insurance
  502  agencies.—The license of an any insurance agency shall be issued
  503  for a period of 3 years and shall continue in force until
  504  canceled, suspended, or revoked, or until it is otherwise
  505  terminated or becomes expired by operation of law. A license may
  506  be renewed by submitting a renewal request to the department on
  507  a form adopted by department rule.
  508         Section 10. Section 626.601, Florida Statutes, is amended
  509  to read:
  510         626.601 Improper conduct; investigation inquiry;
  511  fingerprinting.—
  512         (1) The department or office may, upon its own motion or
  513  upon a written complaint signed by an any interested person and
  514  filed with the department or office, inquire into the any
  515  alleged improper conduct of any licensed, approved, or certified
  516  licensee, insurance agency, agent, adjuster, service
  517  representative, managing general agent, customer representative,
  518  title insurance agent, title insurance agency, mediator, neutral
  519  evaluator, navigator, continuing education course provider,
  520  instructor, school official, or monitor group under this code.
  521  The department or office may thereafter initiate an
  522  investigation of any such individual or entity licensee if it
  523  has reasonable cause to believe that the individual or entity
  524  licensee has violated any provision of the insurance code.
  525  During the course of its investigation, the department or office
  526  shall contact the individual or entity licensee being
  527  investigated unless it determines that contacting such
  528  individual or entity person could jeopardize the successful
  529  completion of the investigation or cause injury to the public.
  530         (2) In the investigation by the department or office of the
  531  alleged misconduct, the individual or entity licensee shall, if
  532  whenever so required by the department or office, open the
  533  individual’s or entity’s cause his or her books and records to
  534  be open for inspection for the purpose of such investigation
  535  inquiries.
  536         (3) The Complaints against an individual or entity any
  537  licensee may be informally alleged and are not required to
  538  include need not be in any such language as is necessary to
  539  charge a crime on an indictment or information.
  540         (4) The expense for any hearings or investigations
  541  conducted pursuant to this section under this law, as well as
  542  the fees and mileage of witnesses, may be paid out of the
  543  appropriate fund.
  544         (5) If the department or office, after investigation, has
  545  reason to believe that an individual a licensee may have been
  546  found guilty of or pleaded guilty or nolo contendere to a felony
  547  or a crime related to the business of insurance in this or any
  548  other state or jurisdiction, the department or office may
  549  require the individual licensee to file with the department or
  550  office a complete set of his or her fingerprints, which shall be
  551  accompanied by the fingerprint processing fee set forth in s.
  552  624.501. The fingerprints shall be taken by an authorized law
  553  enforcement agency or other department-approved entity.
  554         (6) The complaint and any information obtained pursuant to
  555  the investigation by the department or office are confidential
  556  and are exempt from the provisions of s. 119.07, unless the
  557  department or office files a formal administrative complaint,
  558  emergency order, or consent order against the individual or
  559  entity licensee. Nothing in This subsection does not shall be
  560  construed to prevent the department or office from disclosing
  561  the complaint or such information as it deems necessary to
  562  conduct the investigation, to update the complainant as to the
  563  status and outcome of the complaint, or to share such
  564  information with any law enforcement agency or other regulatory
  565  body.
  566         Section 11. Effective January 1, 2015, section 626.747,
  567  Florida Statutes, is repealed.
  568         Section 12. Effective January 1, 2015, subsection (1) of
  569  section 626.8411, Florida Statutes, is amended to read:
  570         626.8411 Application of Florida Insurance Code provisions
  571  to title insurance agents or agencies.—
  572         (1) The following provisions of part II applicable to
  573  general lines agents or agencies also apply to title insurance
  574  agents or agencies:
  575         (a) Section 626.734, relating to liability of certain
  576  agents.
  577         (b) Section 626.0428(4)(a) and (b) 626.747, relating to
  578  branch agencies.
  579         (c) Section 626.749, relating to place of business in
  580  residence.
  581         (d) Section 626.753, relating to sharing of commissions.
  582         (e) Section 626.754, relating to rights of agent following
  583  termination of appointment.
  584         Section 13. Subsections (14) and (18) of section 626.854,
  585  Florida Statutes, are amended to read:
  586         626.854 “Public adjuster” defined; prohibitions.—The
  587  Legislature finds that it is necessary for the protection of the
  588  public to regulate public insurance adjusters and to prevent the
  589  unauthorized practice of law.
  590         (14) A company employee adjuster, independent adjuster,
  591  attorney, investigator, or other persons acting on behalf of an
  592  insurer that needs access to an insured or claimant or to the
  593  insured property that is the subject of a claim must provide at
  594  least 48 hours’ notice to the insured or claimant, public
  595  adjuster, or legal representative before scheduling a meeting
  596  with the claimant or an onsite inspection of the insured
  597  property. The insured or claimant may deny access to the
  598  property if the notice has not been provided. The insured or
  599  claimant may waive the 48-hour notice.
  600         (17)(18)The provisions of Subsections (5)-(16) (5)-(17)
  601  apply only to residential property insurance policies and
  602  condominium unit owner policies as defined in s. 718.111(11).
  603         Section 14. Paragraph (c) of subsection (2) and subsection
  604  (3) of section 626.8805, Florida Statutes, are amended to read:
  605         626.8805 Certificate of authority to act as administrator.—
  606         (2) The administrator shall file with the office an
  607  application for a certificate of authority upon a form to be
  608  adopted by the commission and furnished by the office, which
  609  application shall include or have attached the following
  610  information and documents:
  611         (c) The names, addresses, official positions, and
  612  professional qualifications of the individuals employed or
  613  retained by the administrator who are responsible for the
  614  conduct of the affairs of the administrator, including all
  615  members of the board of directors, board of trustees, executive
  616  committee, or other governing board or committee, and the
  617  principal officers in the case of a corporation or, the partners
  618  or members in the case of a partnership or association, and any
  619  other person who exercises control or influence over the affairs
  620  of the administrator.
  621         (3) The applicant shall make available for inspection by
  622  the office copies of all contracts relating to services provided
  623  by the administrator to with insurers or other persons using
  624  utilizing the services of the administrator.
  625         Section 15. Subsections (1) and (3) of section 626.8817,
  626  Florida Statutes, are amended to read:
  627         626.8817 Responsibilities of insurance company with respect
  628  to administration of coverage insured.—
  629         (1) If an insurer uses the services of an administrator,
  630  the insurer is responsible for determining the benefits, premium
  631  rates, underwriting criteria, and claims payment procedures
  632  applicable to the coverage and for securing reinsurance, if any.
  633  The rules pertaining to these matters shall be provided, in
  634  writing, by the insurer or its designee to the administrator.
  635  The responsibilities of the administrator as to any of these
  636  matters shall be set forth in a the written agreement binding
  637  upon between the administrator and the insurer.
  638         (3) If In cases in which an administrator administers
  639  benefits for more than 100 certificateholders on behalf of an
  640  insurer, the insurer shall, at least semiannually, conduct a
  641  review of the operations of the administrator. At least one such
  642  review must be an onsite audit of the operations of the
  643  administrator. The insurer may contract with a qualified third
  644  party to conduct such review.
  645         Section 16. Subsections (1) and (4) of section 626.882,
  646  Florida Statutes, are amended to read:
  647         626.882 Agreement between administrator and insurer;
  648  required provisions; maintenance of records.—
  649         (1) A No person may not act as an administrator without a
  650  written agreement, as required under s. 626.8817, which
  651  specifies the rights, duties, and obligations of the between
  652  such person as administrator and an insurer.
  653         (4) If a policy is issued to a trustee or trustees, a copy
  654  of the trust agreement and any amendments to that agreement
  655  shall be furnished to the insurer or its designee by the
  656  administrator and shall be retained as part of the official
  657  records of both the administrator and the insurer for the
  658  duration of the policy and for 5 years thereafter.
  659         Section 17. Subsections (3), (4), and (5) of section
  660  626.883, Florida Statutes, are amended to read:
  661         626.883 Administrator as intermediary; collections held in
  662  fiduciary capacity; establishment of account; disbursement;
  663  payments on behalf of insurer.—
  664         (3) If charges or premiums deposited in a fiduciary account
  665  have been collected on behalf of or for more than one insurer,
  666  the administrator shall keep records clearly recording the
  667  deposits in and withdrawals from such account on behalf of or
  668  for each insurer. The administrator shall, upon request of an
  669  insurer or its designee, furnish such insurer or designee with
  670  copies of records pertaining to deposits and withdrawals on
  671  behalf of or for such insurer.
  672         (4) The administrator may not pay any claim by withdrawals
  673  from a fiduciary account. Withdrawals from such account shall be
  674  made as provided in the written agreement required under ss.
  675  626.8817 and 626.882 between the administrator and the insurer
  676  for any of the following:
  677         (a) Remittance to an insurer entitled to such remittance.
  678         (b) Deposit in an account maintained in the name of such
  679  insurer.
  680         (c) Transfer to and deposit in a claims-paying account,
  681  with claims to be paid as provided by such insurer.
  682         (d) Payment to a group policyholder for remittance to the
  683  insurer entitled to such remittance.
  684         (e) Payment to the administrator of the commission, fees,
  685  or charges of the administrator.
  686         (f) Remittance of return premium to the person or persons
  687  entitled to such return premium.
  688         (5) All claims paid by the administrator from funds
  689  collected on behalf of the insurer shall be paid only on drafts
  690  of, and as authorized by, such insurer or its designee.
  691         Section 18. Subsection (3) of section 626.884, Florida
  692  Statutes, is amended to read:
  693         626.884 Maintenance of records by administrator; access;
  694  confidentiality.—
  695         (3) The insurer shall retain the right of continuing access
  696  to books and records maintained by the administrator sufficient
  697  to permit the insurer to fulfill all of its contractual
  698  obligations to insured persons, subject to any restrictions in
  699  the written agreement pertaining to between the insurer and the
  700  administrator on the proprietary rights of the parties in such
  701  books and records.
  702         Section 19. Subsections (1) and (2) of section 626.89,
  703  Florida Statutes, are amended to read:
  704         626.89 Annual financial statement and filing fee; notice of
  705  change of ownership.—
  706         (1) Each authorized administrator shall annually file with
  707  the office a full and true statement of its financial condition,
  708  transactions, and affairs within 3 months after the end of the
  709  administrator’s fiscal year. The statement shall be filed
  710  annually on or before March 1 or within such extension of time
  711  therefor as the office for good cause may have granted. The
  712  statement must and shall be for the preceding fiscal calendar
  713  year and must. The statement shall be in such form and contain
  714  such matters as the commission prescribes and must shall be
  715  verified by at least two officers of the such administrator. An
  716  administrator whose sole stockholder is an association
  717  representing health care providers which is not an affiliate of
  718  an insurer, an administrator of a pooled governmental self
  719  insurance program, or an administrator that is a university may
  720  submit the preceding fiscal year’s statement within 2 months
  721  after its fiscal year end.
  722         (2) Each authorized administrator shall also file an
  723  audited financial statement performed by an independent
  724  certified public accountant. The audited financial statement
  725  shall be filed with the office within 5 months after the end of
  726  the administrator’s fiscal year and be on or before June 1 for
  727  the preceding fiscal calendar year ending December 31. An
  728  administrator whose sole stockholder is an association
  729  representing health care providers which is not an affiliate of
  730  an insurer, an administrator of a pooled governmental self
  731  insurance program, or an administrator that is a university may
  732  submit the preceding fiscal year’s audited financial statement
  733  within 5 months after the end of its fiscal year. An audited
  734  financial statement prepared on a consolidated basis must
  735  include a columnar consolidating or combining worksheet that
  736  must be filed with the statement and must comply with the
  737  following:
  738         (a) Amounts shown on the consolidated audited financial
  739  statement must be shown on the worksheet;
  740         (b) Amounts for each entity must be stated separately; and
  741         (c) Explanations of consolidating and eliminating entries
  742  must be included.
  743         Section 20. Section 626.931, Florida Statutes, is amended
  744  to read:
  745         626.931 Agent affidavit and Insurer reporting
  746  requirements.—
  747         (1) Each surplus lines agent shall on or before the 45th
  748  day following each calendar quarter file with the Florida
  749  Surplus Lines Service Office an affidavit, on forms as
  750  prescribed and furnished by the Florida Surplus Lines Service
  751  Office, stating that all surplus lines insurance transacted by
  752  him or her during such calendar quarter has been submitted to
  753  the Florida Surplus Lines Service Office as required.
  754         (2) The affidavit of the surplus lines agent shall include
  755  efforts made to place coverages with authorized insurers and the
  756  results thereof.
  757         (1)(3) Each foreign insurer accepting premiums shall, on or
  758  before the end of the month following each calendar quarter,
  759  file with the Florida Surplus Lines Service Office a verified
  760  report of all surplus lines insurance transacted by such insurer
  761  for insurance risks located in this state during the such
  762  calendar quarter.
  763         (2)(4) Each alien insurer accepting premiums shall, on or
  764  before June 30 of each year, file with the Florida Surplus Lines
  765  Service Office a verified report of all surplus lines insurance
  766  transacted by such insurer for insurance risks located in this
  767  state during the preceding calendar year.
  768         (3)(5) The department may waive the filing requirements
  769  described in subsections (1) (3) and (2) (4).
  770         (4)(6) Each insurer’s report and supporting information
  771  shall be in a computer-readable format as determined by the
  772  Florida Surplus Lines Service Office or shall be submitted on
  773  forms prescribed by the Florida Surplus Lines Service Office and
  774  shall show for each applicable agent:
  775         (a) A listing of all policies, certificates, cover notes,
  776  or other forms of confirmation of insurance coverage or any
  777  substitutions thereof or endorsements thereto and the
  778  identifying number; and
  779         (b) Any additional information required by the department
  780  or Florida Surplus Lines Service Office.
  781         Section 21. Paragraph (a) of subsection (2) of section
  782  626.932, Florida Statutes, is amended to read:
  783         626.932 Surplus lines tax.—
  784         (2)(a) The surplus lines agent shall make payable to the
  785  department the tax related to each calendar quarter’s business
  786  as reported to the Florida Surplus Lines Service Office, and
  787  remit the tax to the Florida Surplus Lines Service Office on or
  788  before the 45th day after each calendar quarter at the same time
  789  as provided for the filing of the quarterly affidavit, under s.
  790  626.931. The Florida Surplus Lines Service Office shall forward
  791  to the department the taxes and any interest collected pursuant
  792  to paragraph (b), within 10 days after of receipt.
  793         Section 22. Subsection (1) of section 626.935, Florida
  794  Statutes, is amended to read:
  795         626.935 Suspension, revocation, or refusal of surplus lines
  796  agent’s license.—
  797         (1) The department shall deny an application for, suspend,
  798  revoke, or refuse to renew the appointment of a surplus lines
  799  agent and all other licenses and appointments held by the
  800  licensee under this code, on any of the following grounds:
  801         (a) Removal of the licensee’s office from the licensee’s
  802  state of residence.
  803         (b) Removal of the accounts and records of his or her
  804  surplus lines business from this state or the licensee’s state
  805  of residence during the period when such accounts and records
  806  are required to be maintained under s. 626.930.
  807         (c) Closure of the licensee’s office for more than 30
  808  consecutive days.
  809         (d) Failure to make and file his or her affidavit or
  810  reports when due as required by s. 626.931.
  811         (d)(e) Failure to pay the tax or service fee on surplus
  812  lines premiums, as provided in the Surplus Lines Law.
  813         (e)(f) Suspension, revocation, or refusal to renew or
  814  continue the license or appointment as a general lines agent,
  815  service representative, or managing general agent.
  816         (f)(g) Lack of qualifications as for an original surplus
  817  lines agent’s license.
  818         (g)(h) Violation of this Surplus Lines Law.
  819         (h)(i)For Any other applicable cause for which the license
  820  of a general lines agent could be suspended, revoked, or refused
  821  under s. 626.611 or s. 626.621.
  822         Section 23. Subsection (1) of section 626.936, Florida
  823  Statutes, is amended to read:
  824         626.936 Failure to file reports or pay tax or service fee;
  825  administrative penalty.—
  826         (1) A Any licensed surplus lines agent who neglects to file
  827  a report or an affidavit in the form and within the time
  828  required under or provided for in the Surplus Lines Law may be
  829  fined up to $50 per day for each day the neglect continues,
  830  beginning the day after the report or affidavit was due until
  831  the date the report or affidavit is received. All sums collected
  832  under this section shall be deposited into the Insurance
  833  Regulatory Trust Fund.
  834         Section 24. Paragraph (q) of subsection (1) of section
  835  626.9541, Florida Statutes, is amended to read:
  836         626.9541 Unfair methods of competition and unfair or
  837  deceptive acts or practices defined.—
  839  ACTS.—The following are defined as unfair methods of competition
  840  and unfair or deceptive acts or practices:
  841         (q) Certain insurance transactions through credit card
  842  facilities prohibited.—
  843         1. Except as provided in subparagraph 3., no person shall
  844  knowingly solicit or negotiate any insurance; seek or accept
  845  applications for insurance; issue or deliver any policy;
  846  receive, collect, or transmit premiums, to or for an any
  847  insurer; or otherwise transact insurance in this state, or
  848  relative to a subject of insurance resident, located, or to be
  849  performed in this state, through the arrangement or facilities
  850  of a credit card facility or organization, for the purpose of
  851  insuring credit card holders or prospective credit card holders.
  852  The term “credit card holder” as used in this paragraph means a
  853  any person who may pay the charge for purchases or other
  854  transactions through the credit card facility or organization,
  855  whose credit with such facility or organization is evidenced by
  856  a credit card identifying such person as being one whose charges
  857  the credit card facility or organization will pay, and who is
  858  identified as such upon the credit card either by name, account
  859  number, symbol, insignia, or any other method or device of
  860  identification. This subparagraph does not apply as to health
  861  insurance or to credit life, credit disability, or credit
  862  property insurance.
  863         2. If Whenever any person does or performs in this state
  864  any of the acts in violation of subparagraph 1. for or on behalf
  865  of an any insurer or credit card facility, such insurer or
  866  credit card facility shall be deemed held to be doing business
  867  in this state and, if an insurer, shall be subject to the same
  868  state, county, and municipal taxes as insurers that have been
  869  legally qualified and admitted to do business in this state by
  870  agents or otherwise are subject, the same to be assessed and
  871  collected against such insurers; and such person so doing or
  872  performing any of such acts is shall be personally liable for
  873  all such taxes.
  874         3. A licensed agent or insurer may solicit or negotiate any
  875  insurance; seek or accept applications for insurance; issue or
  876  deliver any policy; receive, collect, or transmit premiums, to
  877  or for an any insurer; or otherwise transact insurance in this
  878  state, or relative to a subject of insurance resident, located,
  879  or to be performed in this state, through the arrangement or
  880  facilities of a credit card facility or organization, for the
  881  purpose of insuring credit card holders or prospective credit
  882  card holders if:
  883         a. The insurance or policy which is the subject of the
  884  transaction is noncancelable by any person other than the named
  885  insured, the policyholder, or the insurer;
  886         b. Any refund of unearned premium is made directly to the
  887  credit card holder; and
  888         b.c. The credit card transaction is authorized by the
  889  signature of the credit card holder or other person authorized
  890  to sign on the credit card account.
  892  The conditions enumerated in sub-subparagraphs a. and b. a.-c.
  893  do not apply to health insurance or to credit life, credit
  894  disability, or credit property insurance; and sub-subparagraph
  895  b. c. does not apply to property and casualty insurance if so
  896  long as the transaction is authorized by the insured.
  897         4. No person may use or disclose information resulting from
  898  the use of a credit card in conjunction with the purchase of
  899  insurance if, when such information is to the advantage of the
  900  such credit card facility or an insurance agent, or is to the
  901  detriment of the insured or any other insurance agent; except
  902  that this provision does not prohibit a credit card facility
  903  from using or disclosing such information in a any judicial
  904  proceeding or consistent with applicable law on credit
  905  reporting.
  906         5. No Such insurance may not shall be sold through a credit
  907  card facility in conjunction with membership in any automobile
  908  club. The term “automobile club” means a legal entity that
  909  which, in consideration of dues, assessments, or periodic
  910  payments of money, promises its members or subscribers to assist
  911  them in matters relating to the ownership, operation, use, or
  912  maintenance of a motor vehicle; however, the term definition of
  913  automobile clubs does not include persons, associations, or
  914  corporations that which are organized and operated solely for
  915  the purpose of conducting, sponsoring, or sanctioning motor
  916  vehicle races, exhibitions, or contests upon racetracks, or upon
  917  race courses established and marked as such for the duration of
  918  such particular event. The words “motor vehicle” used herein
  919  shall be the same as defined in chapter 320.
  920         Section 25. Paragraph (b) of subsection (2) of section
  921  627.062, Florida Statutes, is amended to read:
  922         627.062 Rate standards.—
  923         (2) As to all such classes of insurance:
  924         (b) Upon receiving a rate filing, the office shall review
  925  the filing to determine whether the if a rate is excessive,
  926  inadequate, or unfairly discriminatory. In making that
  927  determination, the office shall, in accordance with generally
  928  accepted and reasonable actuarial techniques, consider the
  929  following factors:
  930         1. Past and prospective loss experience within and without
  931  this state.
  932         2. Past and prospective expenses.
  933         3. The degree of competition among insurers for the risk
  934  insured.
  935         4. Investment income reasonably expected by the insurer,
  936  consistent with the insurer’s investment practices, from
  937  investable premiums anticipated in the filing, plus any other
  938  expected income from currently invested assets representing the
  939  amount expected on unearned premium reserves and loss reserves.
  940  The commission may adopt rules using reasonable techniques of
  941  actuarial science and economics to specify the manner in which
  942  insurers calculate investment income attributable to classes of
  943  insurance written in this state and the manner in which
  944  investment income is used to calculate insurance rates. Such
  945  manner must contemplate allowances for an underwriting profit
  946  factor and full consideration of investment income that which
  947  produce a reasonable rate of return; however, investment income
  948  from invested surplus may not be considered.
  949         5. The reasonableness of the judgment reflected in the
  950  filing.
  951         6. Dividends, savings, or unabsorbed premium deposits
  952  allowed or returned to Florida policyholders, members, or
  953  subscribers.
  954         7. The adequacy of loss reserves.
  955         8. The cost of reinsurance. The office may not disapprove a
  956  rate as excessive solely due to the insurer’s insurer having
  957  obtained catastrophic reinsurance to cover the insurer’s
  958  estimated 250-year probable maximum loss or any lower level of
  959  loss.
  960         9. Trend factors, including trends in actual losses per
  961  insured unit for the insurer making the filing.
  962         10. Conflagration and catastrophe hazards, if applicable.
  963         11. Projected hurricane losses, if applicable, which must
  964  be estimated using a model or method, or a straight average of
  965  model results or output ranges, which are independently found to
  966  be acceptable or reliable by the Florida Commission on Hurricane
  967  Loss Projection Methodology, and as further provided in s.
  968  627.0628.
  969         12. A reasonable margin for underwriting profit and
  970  contingencies.
  971         13. The cost of medical services, if applicable.
  972         14. Other relevant factors that affect the frequency or
  973  severity of claims or expenses.
  974         Section 26. Paragraph (d) of subsection (3) of section
  975  627.0628, Florida Statutes, is amended to read:
  976         627.0628 Florida Commission on Hurricane Loss Projection
  977  Methodology; public records exemption; public meetings
  978  exemption.—
  980         (d) With respect to a rate filing under s. 627.062, an
  981  insurer shall employ and may not modify or adjust actuarial
  982  methods, principles, standards, models, or output ranges found
  983  by the commission to be accurate or reliable in determining
  984  hurricane loss factors for use in a rate filing under s.
  985  627.062. An insurer shall employ and may not modify or adjust
  986  models found by the commission to be accurate or reliable in
  987  determining probable maximum loss levels pursuant to paragraph
  988  (b) with respect to a rate filing under s. 627.062 made more
  989  than 180 60 days after the commission has made such findings.
  990  This paragraph does not prohibit an insurer from using a
  991  straight average of model results or output ranges or using
  992  straight averages for the purposes of a rate filing under s.
  993  627.062.
  994         Section 27. Subsection (8) of section 627.0651, Florida
  995  Statutes, is amended to read:
  996         627.0651 Making and use of rates for motor vehicle
  997  insurance.—
  998         (8) Rates are not unfairly discriminatory if averaged
  999  broadly among members of a group; nor are rates unfairly
 1000  discriminatory even though they are lower than rates for
 1001  nonmembers of the group. However, such rates are unfairly
 1002  discriminatory if they are not actuarially measurable and
 1003  credible and sufficiently related to actual or expected loss and
 1004  expense experience of the group so as to ensure assure that
 1005  nonmembers of the group are not unfairly discriminated against.
 1006  Use of a single United States Postal Service zip code as a
 1007  rating territory shall be deemed unfairly discriminatory unless
 1008  filed pursuant to paragraph (1)(a) and such rating territory
 1009  incorporates sufficient actual or expected loss and loss
 1010  adjustment expense experience so as to be actuarially measurable
 1011  and credible.
 1012         Section 28. Present subsections (2) through (4) of section
 1013  627.072, Florida Statutes, are redesignated as subsections (3)
 1014  through (5), respectively, and a new subsection (2) is added to
 1015  that section, to read:
 1016         627.072 Making and use of rates.—
 1017         (2) A retrospective rating plan may contain a provision
 1018  that allows for the negotiation of premium between the employer
 1019  and the insurer for employers having exposure in more than one
 1020  state, an estimated annual standard premium in this state of
 1021  $175,000, and an estimated annual countrywide standard premium
 1022  of $1 million or more for workers’ compensation.
 1023         Section 29. Subsection (2) of section 627.281, Florida
 1024  Statutes, is amended to read:
 1025         627.281 Appeal from rating organization; workers’
 1026  compensation and employer’s liability insurance filings.—
 1027         (2) If the such appeal is based on upon the failure of the
 1028  rating organization to make a filing on behalf of a such member
 1029  or subscriber which is based on a system of expense provisions
 1030  which differs, in accordance with the right granted in s.
 1031  627.072(3) 627.072(2), differs from the system of expense
 1032  provisions included in a filing made by the rating organization,
 1033  the office shall, if it grants the appeal, order the rating
 1034  organization to make the requested filing for use by the
 1035  appellant. In deciding such appeal, the office shall apply the
 1036  applicable standards set forth in ss. 627.062 and 627.072.
 1037         Section 30. Paragraph (h) of subsection (5) of section
 1038  627.311, Florida Statutes, is amended to read:
 1039         627.311 Joint underwriters and joint reinsurers; public
 1040  records and public meetings exemptions.—
 1041         (5)
 1042         (h) Any premium or assessments collected by the plan in
 1043  excess of the amount necessary to fund projected ultimate
 1044  incurred losses and expenses of the plan and not paid to
 1045  insureds of the plan in conjunction with loss prevention or
 1046  dividend programs shall be retained by the plan for future use.
 1047  Any state funds received by the plan in excess of the amount
 1048  necessary to fund deficits in subplan D or any tier shall be
 1049  returned to the state. Any dividend payable to a former insured
 1050  of the plan may be retained by the plan for future use upon such
 1051  terms as set forth in the declaration of dividend.
 1052         Section 31. Subsection (9) of section 627.3518, Florida
 1053  Statutes, is amended to read:
 1054         627.3518 Citizens Property Insurance Corporation
 1055  policyholder eligibility clearinghouse program.—The purpose of
 1056  this section is to provide a framework for the corporation to
 1057  implement a clearinghouse program by January 1, 2014.
 1058         (9) The 45-day notice of nonrenewal requirement set forth
 1059  in s. 627.4133(2)(b)5. 627.4133(2)(b)4.b. applies when a policy
 1060  is nonrenewed by the corporation because the risk has received
 1061  an offer of coverage pursuant to this section which renders the
 1062  risk ineligible for coverage by the corporation.
 1063         Section 32. Section 627.3519, Florida Statutes, is
 1064  repealed.
 1065         Section 33. Section 627.409, Florida Statutes, is amended
 1066  to read:
 1067         627.409 Representations in applications; warranties.—
 1068         (1) Any statement or description made by or on behalf of an
 1069  insured or annuitant in an application for an insurance policy
 1070  or annuity contract, or in negotiations for a policy or
 1071  contract, is a representation and is not a warranty. Except as
 1072  provided in subsection (3), a misrepresentation, omission,
 1073  concealment of fact, or incorrect statement may prevent recovery
 1074  under the contract or policy only if any of the following apply:
 1075         (a) The misrepresentation, omission, concealment, or
 1076  statement is fraudulent or is material either to the acceptance
 1077  of the risk or to the hazard assumed by the insurer.
 1078         (b) If the true facts had been known to the insurer
 1079  pursuant to a policy requirement or other requirement, the
 1080  insurer in good faith would not have issued the policy or
 1081  contract, would not have issued it at the same premium rate,
 1082  would not have issued a policy or contract in as large an
 1083  amount, or would not have provided coverage with respect to the
 1084  hazard resulting in the loss.
 1085         (2) A breach or violation by the insured of a any warranty,
 1086  condition, or provision of a any wet marine or transportation
 1087  insurance policy, contract of insurance, endorsement, or
 1088  application therefor does not void the policy or contract, or
 1089  constitute a defense to a loss thereon, unless such breach or
 1090  violation increased the hazard by any means within the control
 1091  of the insured.
 1092         (3) For residential property insurance, if a policy or
 1093  contract is in effect for more than 90 days, a claim filed by
 1094  the insured may not be denied based on credit information
 1095  available in public records.
 1096         Section 34. Paragraph (b) of subsection (2) of section
 1097  627.4133, Florida Statutes, is amended to read:
 1098         627.4133 Notice of cancellation, nonrenewal, or renewal
 1099  premium.—
 1100         (2) With respect to a any personal lines or commercial
 1101  residential property insurance policy, including a, but not
 1102  limited to, any homeowner’s, mobile home owner’s, farmowner’s,
 1103  condominium association, condominium unit owner’s, apartment
 1104  building, or other policy covering a residential structure or
 1105  its contents:
 1106         (b) The insurer shall give the first-named insured written
 1107  notice of nonrenewal, cancellation, or termination at least 120
 1108  100 days before the effective date of the nonrenewal,
 1109  cancellation, or termination. However, the insurer shall give at
 1110  least 100 days’ written notice, or written notice by June 1,
 1111  whichever is earlier, for any nonrenewal, cancellation, or
 1112  termination that would be effective between June 1 and November
 1113  30. The notice must include the reason or reasons for the
 1114  nonrenewal, cancellation, or termination, except that:
 1115         1. The insurer shall give the first-named insured written
 1116  notice of nonrenewal, cancellation, or termination at least 120
 1117  days prior to the effective date of the nonrenewal,
 1118  cancellation, or termination for a first-named insured whose
 1119  residential structure has been insured by that insurer or an
 1120  affiliated insurer for at least a 5-year period immediately
 1121  prior to the date of the written notice.
 1122         1.2. If cancellation is for nonpayment of premium, at least
 1123  10 days’ written notice of cancellation accompanied by the
 1124  reason therefor must be given. As used in this subparagraph, the
 1125  term “nonpayment of premium” means failure of the named insured
 1126  to discharge when due her or his obligations for paying the
 1127  premium in connection with the payment of premiums on a policy
 1128  or an any installment of such premium, whether the premium is
 1129  payable directly to the insurer or its agent or indirectly under
 1130  any premium finance plan or extension of credit, or failure to
 1131  maintain membership in an organization if such membership is a
 1132  condition precedent to insurance coverage. The term also means
 1133  the failure of a financial institution to honor an insurance
 1134  applicant’s check after delivery to a licensed agent for payment
 1135  of a premium, even if the agent has previously delivered or
 1136  transferred the premium to the insurer. If a dishonored check
 1137  represents the initial premium payment, the contract and all
 1138  contractual obligations are void ab initio unless the nonpayment
 1139  is cured within the earlier of 5 days after actual notice by
 1140  certified mail is received by the applicant or 15 days after
 1141  notice is sent to the applicant by certified mail or registered
 1142  mail., and If the contract is void, any premium received by the
 1143  insurer from a third party must be refunded to that party in
 1144  full.
 1145         2.3. If such cancellation or termination occurs during the
 1146  first 90 days the insurance is in force and the insurance is
 1147  canceled or terminated for reasons other than nonpayment of
 1148  premium, at least 20 days’ written notice of cancellation or
 1149  termination accompanied by the reason therefor must be given
 1150  unless there has been a material misstatement or
 1151  misrepresentation or failure to comply with the underwriting
 1152  requirements established by the insurer.
 1153         3. After the policy has been in effect for 90 days, the
 1154  insurer may not cancel the policy unless there has been a
 1155  material misstatement, a nonpayment of premium, a failure to
 1156  comply with underwriting requirements established by the insurer
 1157  within 90 days after the date of effectuation of coverage, or a
 1158  substantial change in the risk covered by the policy or the
 1159  cancellation is for all insureds under such policies for a class
 1160  of insureds. This subparagraph does not apply to individually
 1161  rated risks having a policy term of less than 90 days.
 1162         4. After a policy or contract has been in effect for 90
 1163  days, the insurer may not cancel or terminate the policy or
 1164  contract based on credit information available in public
 1165  records. The requirement for providing written notice by June 1
 1166  of any nonrenewal that would be effective between June 1 and
 1167  November 30 does not apply to the following situations, but the
 1168  insurer remains subject to the requirement to provide such
 1169  notice at least 100 days before the effective date of
 1170  nonrenewal:
 1171         a. A policy that is nonrenewed due to a revision in the
 1172  coverage for sinkhole losses and catastrophic ground cover
 1173  collapse pursuant to s. 627.706.
 1174         5.b. A policy that is nonrenewed by Citizens Property
 1175  Insurance Corporation, pursuant to s. 627.351(6), for a policy
 1176  that has been assumed by an authorized insurer offering
 1177  replacement coverage to the policyholder is exempt from the
 1178  notice requirements of paragraph (a) and this paragraph. In such
 1179  cases, the corporation must give the named insured written
 1180  notice of nonrenewal at least 45 days before the effective date
 1181  of the nonrenewal.
 1183  After the policy has been in effect for 90 days, the policy may
 1184  not be canceled by the insurer unless there has been a material
 1185  misstatement, a nonpayment of premium, a failure to comply with
 1186  underwriting requirements established by the insurer within 90
 1187  days after the date of effectuation of coverage, or a
 1188  substantial change in the risk covered by the policy or if the
 1189  cancellation is for all insureds under such policies for a given
 1190  class of insureds. This paragraph does not apply to individually
 1191  rated risks having a policy term of less than 90 days.
 1192         6.5. Notwithstanding any other provision of law, an insurer
 1193  may cancel or nonrenew a property insurance policy after at
 1194  least 45 days’ notice if the office finds that the early
 1195  cancellation of some or all of the insurer’s policies is
 1196  necessary to protect the best interests of the public or
 1197  policyholders and the office approves the insurer’s plan for
 1198  early cancellation or nonrenewal of some or all of its policies.
 1199  The office may base such finding upon the financial condition of
 1200  the insurer, lack of adequate reinsurance coverage for hurricane
 1201  risk, or other relevant factors. The office may condition its
 1202  finding on the consent of the insurer to be placed under
 1203  administrative supervision pursuant to s. 624.81 or to the
 1204  appointment of a receiver under chapter 631.
 1205         7.6. A policy covering both a home and a motor vehicle may
 1206  be nonrenewed for any reason applicable to either the property
 1207  or motor vehicle insurance after providing 90 days’ notice.
 1208         Section 35. Subsection (1) of section 627.4137, Florida
 1209  Statutes, is amended to read:
 1210         627.4137 Disclosure of certain information required.—
 1211         (1) Each insurer that provides which does or may provide
 1212  liability insurance coverage to pay all or a portion of a any
 1213  claim that which might be made shall provide, within 30 days
 1214  after of the written request of the claimant, provide a
 1215  statement, under oath, of a corporate officer or the insurer’s
 1216  claims manager, or superintendent, or licensed company adjuster
 1217  setting forth the following information with regard to each
 1218  known policy of insurance, including excess or umbrella
 1219  insurance:
 1220         (a) The name of the insurer.
 1221         (b) The name of each insured.
 1222         (c) The limits of the liability coverage.
 1223         (d) A statement of any policy or coverage defense that the
 1224  which such insurer reasonably believes is available to the such
 1225  insurer at the time of filing such statement.
 1226         (e) A copy of the policy.
 1228  In addition, The insured, or her or his insurance agent, upon
 1229  written request of the claimant or the claimant’s attorney,
 1230  shall also disclose the name and coverage of each known insurer
 1231  to the claimant and shall forward the such request for
 1232  information as required by this subsection to all affected
 1233  insurers. The insurer shall then supply the required information
 1234  required in this subsection to the claimant within 30 days after
 1235  of receipt of such request.
 1236         Section 36. Subsection (1) of section 627.421, Florida
 1237  Statutes, is amended to read:
 1238         627.421 Delivery of policy.—
 1239         (1) Subject to the insurer’s requirement as to payment of
 1240  premium, every policy shall be mailed, delivered, or
 1241  electronically transmitted to the insured or to the person
 1242  entitled thereto within not later than 60 days after the
 1243  effectuation of coverage. Notwithstanding any other provision of
 1244  law, an insurer may allow a policyholder of personal lines
 1245  insurance to affirmatively elect delivery of the policy
 1246  documents, including policies, endorsements, notices, or other
 1247  documents, by electronic means in lieu of delivery by mail.
 1248  Electronic transmission of a policy for commercial risks,
 1249  including, but not limited to, workers’ compensation and
 1250  employers’ liability, commercial automobile liability,
 1251  commercial automobile physical damage, commercial lines
 1252  residential property, commercial nonresidential property, farm
 1253  owners’ insurance, and the types of commercial lines risks set
 1254  forth in s. 627.062(3)(d), constitute shall constitute delivery
 1255  to the insured or to the person entitled to delivery, unless the
 1256  insured or the person entitled to delivery communicates to the
 1257  insurer in writing or electronically that he or she does not
 1258  agree to delivery by electronic means. Electronic transmission
 1259  must shall include a notice to the insured or to the person
 1260  entitled to delivery of a policy of his or her right to receive
 1261  the policy via United States mail rather than via electronic
 1262  transmission. A paper copy of the policy shall be provided to
 1263  the insured or to the person entitled to delivery at his or her
 1264  request.
 1265         Section 37. Subsection (2) of section 627.43141, Florida
 1266  Statutes, is amended to read:
 1267         627.43141 Notice of change in policy terms.—
 1268         (2) A renewal policy may contain a change in policy terms.
 1269  If a renewal policy contains does contain such change, the
 1270  insurer must give the named insured written notice of the
 1271  change, which may must be enclosed along with the written notice
 1272  of renewal premium required by ss. 627.4133 and 627.728 or be
 1273  sent in a separate notice that complies with the nonrenewal
 1274  mailing time requirement for that particular line of business.
 1275  The insurer must also provide a sample copy of the notice to the
 1276  insured’s insurance agent before or at the same time that notice
 1277  is given to the insured. Such notice shall be entitled “Notice
 1278  of Change in Policy Terms.”
 1279         Section 38. Section 627.4553, Florida Statutes, is created
 1280  to read:
 1281         627.4553 Recommendations to surrender.—If an insurance
 1282  agent recommends the surrender of an annuity or life insurance
 1283  policy containing a cash value and is not recommending that the
 1284  proceeds from the surrender be used to fund or purchase another
 1285  annuity or life insurance policy, before execution of the
 1286  surrender, the insurance agent, or the insurance company if no
 1287  agent is involved, shall provide, on a form adopted by rule by
 1288  the department, information concerning the annuity or policy to
 1289  be surrendered, including the amount of any surrender charge,
 1290  the loss of any minimum interest rate guarantees, the amount of
 1291  any tax consequences resulting from the surrender, the amount of
 1292  any forfeited death benefit, and the value of any other
 1293  investment performance guarantees being forfeited as a result of
 1294  the surrender. This section also applies to a person performing
 1295  insurance agent activities pursuant to an exemption from
 1296  licensure under this part.
 1297         Section 39. Paragraph (b) of subsection (4) of section
 1298  627.7015, Florida Statutes, is amended to read:
 1299         627.7015 Alternative procedure for resolution of disputed
 1300  property insurance claims.—
 1301         (4) The department shall adopt by rule a property insurance
 1302  mediation program to be administered by the department or its
 1303  designee. The department may also adopt special rules which are
 1304  applicable in cases of an emergency within the state. The rules
 1305  shall be modeled after practices and procedures set forth in
 1306  mediation rules of procedure adopted by the Supreme Court. The
 1307  rules must shall provide for:
 1308         (b) Qualifications, denial of application, suspension,
 1309  revocation of approval, and other penalties for of mediators as
 1310  provided in s. 627.745 and in the Florida Rules for of Certified
 1311  and Court-Appointed Court Appointed Mediators, and for such
 1312  other individuals as are qualified by education, training, or
 1313  experience as the department determines to be appropriate.
 1314         Section 40. Section 627.70151, Florida Statutes, is created
 1315  to read:
 1316         627.70151 Appraisal; conflicts of interest.—An insurer that
 1317  offers residential coverage, as defined in s. 627.4025, or a
 1318  policyholder that uses an appraisal clause in the property
 1319  insurance contract to establish a process for estimating or
 1320  evaluating the amount of the loss through the use of an
 1321  impartial umpire may challenge the umpire’s impartiality and
 1322  disqualify the proposed umpire only if:
 1323         (1) A familial relationship within the third degree exists
 1324  between the umpire and a party or a representative of a party;
 1325         (2) The umpire has previously represented a party or a
 1326  representative of a party in a professional capacity in the same
 1327  or a substantially related matter;
 1328         (3) The umpire has represented another person in a
 1329  professional capacity on the same or a substantially related
 1330  matter, which includes the claim, same property, or an adjacent
 1331  property and that other person’s interests are materially
 1332  adverse to the interests of any party; or
 1333         (4) The umpire has worked as an employer or employee of a
 1334  party within the preceding 5 years.
 1335         Section 41. Paragraph (c) of subsection (2) of section
 1336  627.706, Florida Statutes, is amended to read:
 1337         627.706 Sinkhole insurance; catastrophic ground cover
 1338  collapse; definitions.—
 1339         (2) As used in ss. 627.706-627.7074, and as used in
 1340  connection with any policy providing coverage for a catastrophic
 1341  ground cover collapse or for sinkhole losses, the term:
 1342         (c) “Neutral evaluator” means a professional engineer or a
 1343  professional geologist who has completed a course of study in
 1344  alternative dispute resolution designed or approved by the
 1345  department for use in the neutral evaluation process, and who is
 1346  determined by the department to be fair and impartial, and who
 1347  is not otherwise ineligible for certification as provided in s.
 1348  627.7074.
 1349         Section 42. Subsections (3), (7), and (18) of section
 1350  627.7074, Florida Statutes, are amended to read:
 1351         627.7074 Alternative procedure for resolution of disputed
 1352  sinkhole insurance claims.—
 1353         (3) Following the receipt of the report required provided
 1354  under s. 627.7073 or the denial of a claim for a sinkhole loss,
 1355  the insurer shall notify the policyholder of his or her right to
 1356  participate in the neutral evaluation program under this section
 1357  if coverage is available under the policy and the claim was
 1358  submitted within the timeframe provided in s. 627.706(5).
 1359  Neutral evaluation supersedes the alternative dispute resolution
 1360  process under s. 627.7015 but does not invalidate the appraisal
 1361  clause of the insurance policy. The insurer shall provide to the
 1362  policyholder the consumer information pamphlet prepared by the
 1363  department pursuant to subsection (1) electronically or by
 1364  United States mail.
 1365         (7) Upon receipt of a request for neutral evaluation, the
 1366  department shall provide the parties a list of certified neutral
 1367  evaluators. The department shall allow the parties to submit
 1368  requests for disqualifying to disqualify evaluators on the list
 1369  for cause.
 1370         (a) The department shall disqualify neutral evaluators for
 1371  cause based only on any of the following grounds:
 1372         1. A familial relationship exists between the neutral
 1373  evaluator and either party or a representative of either party
 1374  within the third degree.
 1375         2. The proposed neutral evaluator has, in a professional
 1376  capacity, previously represented either party or a
 1377  representative of either party, in the same or a substantially
 1378  related matter.
 1379         3. The proposed neutral evaluator has, in a professional
 1380  capacity, represented another person in the same or a
 1381  substantially related matter and that person’s interests are
 1382  materially adverse to the interests of the parties. The term
 1383  “substantially related matter” means participation by the
 1384  neutral evaluator on the same claim, property, or adjacent
 1385  property.
 1386         4. The proposed neutral evaluator has, within the preceding
 1387  5 years, worked as an employer or employee of a any party to the
 1388  case.
 1389         (b) The department shall deny an application, or suspend or
 1390  revoke the certification, of a neutral evaluator to serve in the
 1391  neutral evaluator capacity if the department finds that one or
 1392  more of the following grounds exist:
 1393         1. Lack of one or more of the qualifications for
 1394  certification specified in this section.
 1395         2. Material misstatement, misrepresentation, or fraud in
 1396  obtaining or attempting to obtain the certification.
 1397         3. Demonstrated lack of fitness or trustworthiness to act
 1398  as a neutral evaluator.
 1399         4. Fraudulent or dishonest practices in the conduct of an
 1400  evaluation or in the conduct of business in the financial
 1401  services industry.
 1402         5. Violation of any provision of this code or of a lawful
 1403  order or rule of the department or aiding, instructing, or
 1404  encouraging another party to commit such violation.
 1405         (c)(b) The parties shall appoint a neutral evaluator from
 1406  the department list and promptly inform the department. If the
 1407  parties cannot agree to a neutral evaluator within 14 business
 1408  days, the department shall appoint a neutral evaluator from the
 1409  list of certified neutral evaluators. The department shall allow
 1410  each party to disqualify two neutral evaluators without cause.
 1411  Upon selection or appointment, the department shall promptly
 1412  refer the request to the neutral evaluator.
 1413         (d)(c) Within 14 business days after the referral, the
 1414  neutral evaluator shall notify the policyholder and the insurer
 1415  of the date, time, and place of the neutral evaluation
 1416  conference. The conference may be held by telephone, if feasible
 1417  and desirable. The neutral evaluator shall make reasonable
 1418  efforts to hold the conference within 90 days after the receipt
 1419  of the request by the department. Failure of the neutral
 1420  evaluator to hold the conference within 90 days does not
 1421  invalidate either party’s right to neutral evaluation or to a
 1422  neutral evaluation conference held outside this timeframe.
 1423         (18) The department shall adopt rules of procedure for the
 1424  neutral evaluation process and for certifying, denying or
 1425  suspending the certification of, and revoking certification as,
 1426  a neutral evaluator.
 1427         Section 43. Subsection (8) of section 627.711, Florida
 1428  Statutes, is amended to read:
 1429         627.711 Notice of premium discounts for hurricane loss
 1430  mitigation; uniform mitigation verification inspection form.—
 1431         (8) At its expense, the insurer may require that a uniform
 1432  mitigation verification form provided by a policyholder, a
 1433  policyholder’s agent, or an authorized mitigation inspector or
 1434  inspection company be independently verified by an inspector, an
 1435  inspection company, or an independent third-party quality
 1436  assurance provider that which possesses a quality assurance
 1437  program before accepting the uniform mitigation verification
 1438  form as valid. The insurer may exempt from additional
 1439  independent verification any uniform mitigation verification
 1440  form provided by a policyholder, a policyholder’s agent, an
 1441  authorized mitigation inspector, or an inspection company that
 1442  possesses a quality assurance program that meets the standards
 1443  established by the insurer. A uniform mitigation verification
 1444  form provided by a policyholder, a policyholder’s agent, an
 1445  authorized mitigation inspector, or an inspection company to
 1446  Citizens Property Insurance Corporation is not subject to
 1447  additional verification, and the property is not subject to
 1448  reinspection by the corporation, absent material changes to the
 1449  structure for the term stated on the form if the form signed by
 1450  a qualified inspector was submitted to, reviewed, and verified
 1451  by a quality assurance program approved by the corporation
 1452  before submission to the corporation.
 1453         Section 44. Subsections (1), (2), and (3) of section
 1454  627.7283, Florida Statutes, are amended to read:
 1455         627.7283 Cancellation; return of premium.—
 1456         (1) If the insured cancels a policy of motor vehicle
 1457  insurance, the insurer must mail or electronically transfer the
 1458  unearned portion of any premium paid within 30 days after the
 1459  effective date of the policy cancellation or receipt of notice
 1460  or request for cancellation, whichever is later. This
 1461  requirement applies to a cancellation initiated by an insured
 1462  for any reason.
 1463         (2) If an insurer cancels a policy of motor vehicle
 1464  insurance, the insurer must mail or electronically transfer the
 1465  unearned premium portion of any premium within 15 days after the
 1466  effective date of the policy cancellation.
 1467         (3) If the unearned premium is not mailed or electronically
 1468  transferred within the applicable period, the insurer must pay
 1469  to the insured 8 percent interest on the amount due. If the
 1470  unearned premium is not mailed or electronically transferred
 1471  within 45 days after the applicable period, the insured may
 1472  bring an action against the insurer pursuant to s. 624.155.
 1473         Section 45. Paragraph (a) of subsection (5) of section
 1474  627.736, Florida Statutes, is amended to read:
 1475         627.736 Required personal injury protection benefits;
 1476  exclusions; priority; claims.—
 1478         (a) A physician, hospital, clinic, or other person or
 1479  institution lawfully rendering treatment to an injured person
 1480  for a bodily injury covered by personal injury protection
 1481  insurance may charge the insurer and injured party only a
 1482  reasonable amount pursuant to this section for the services and
 1483  supplies rendered, and the insurer providing such coverage may
 1484  directly pay for such charges directly to the such person or
 1485  institution lawfully rendering such treatment if the insured
 1486  receiving such treatment or his or her guardian has
 1487  countersigned the properly completed invoice, bill, or claim
 1488  form approved by the office upon which such charges are to be
 1489  paid for as having actually been rendered, to the best knowledge
 1490  of the insured or his or her guardian. However, such a charge
 1491  may not exceed the amount the person or institution customarily
 1492  charges for like services or supplies. In determining whether a
 1493  charge for a particular service, treatment, or otherwise is
 1494  reasonable, consideration may be given to evidence of usual and
 1495  customary charges and payments accepted by the provider involved
 1496  in the dispute, reimbursement levels in the community and
 1497  various federal and state medical fee schedules applicable to
 1498  motor vehicle and other insurance coverages, and other
 1499  information relevant to the reasonableness of the reimbursement
 1500  for the service, treatment, or supply.
 1501         1. The insurer may limit reimbursement to 80 percent of the
 1502  following schedule of maximum charges:
 1503         a. For emergency transport and treatment by providers
 1504  licensed under chapter 401, 200 percent of Medicare.
 1505         b. For emergency services and care provided by a hospital
 1506  licensed under chapter 395, 75 percent of the hospital’s usual
 1507  and customary charges.
 1508         c. For emergency services and care as defined by s. 395.002
 1509  provided in a facility licensed under chapter 395 rendered by a
 1510  physician or dentist, and related hospital inpatient services
 1511  rendered by a physician or dentist, the usual and customary
 1512  charges in the community.
 1513         d. For hospital inpatient services, other than emergency
 1514  services and care, 200 percent of the Medicare Part A
 1515  prospective payment applicable to the specific hospital
 1516  providing the inpatient services.
 1517         e. For hospital outpatient services, other than emergency
 1518  services and care, 200 percent of the Medicare Part A Ambulatory
 1519  Payment Classification for the specific hospital providing the
 1520  outpatient services.
 1521         f. For all other medical services, supplies, and care, 200
 1522  percent of the allowable amount under:
 1523         (I) The participating physicians fee schedule of Medicare
 1524  Part B, except as provided in sub-sub-subparagraphs (II) and
 1525  (III).
 1526         (II) Medicare Part B, in the case of services, supplies,
 1527  and care provided by ambulatory surgical centers and clinical
 1528  laboratories.
 1529         (III) The Durable Medical Equipment Prosthetics/Orthotics
 1530  and Supplies fee schedule of Medicare Part B, in the case of
 1531  durable medical equipment.
 1533  However, if such services, supplies, or care is not reimbursable
 1534  under Medicare Part B, as provided in this sub-subparagraph, the
 1535  insurer may limit reimbursement to 80 percent of the maximum
 1536  reimbursable allowance under workers’ compensation, as
 1537  determined under s. 440.13 and rules adopted thereunder which
 1538  are in effect at the time such services, supplies, or care is
 1539  provided. Services, supplies, or care that is not reimbursable
 1540  under Medicare or workers’ compensation is not required to be
 1541  reimbursed by the insurer.
 1542         2. For purposes of subparagraph 1., the applicable fee
 1543  schedule or payment limitation under Medicare is the fee
 1544  schedule or payment limitation in effect on March 1 of the year
 1545  in which the services, supplies, or care is rendered and for the
 1546  area in which such services, supplies, or care is rendered, and
 1547  the applicable fee schedule or payment limitation applies from
 1548  March 1 until the last day of February throughout the remainder
 1549  of the following that year, notwithstanding any subsequent
 1550  change made to the fee schedule or payment limitation, except
 1551  that it may not be less than the allowable amount under the
 1552  applicable schedule of Medicare Part B for 2007 for medical
 1553  services, supplies, and care subject to Medicare Part B.
 1554         3. Subparagraph 1. does not allow the insurer to apply a
 1555  any limitation on the number of treatments or other utilization
 1556  limits that apply under Medicare or workers’ compensation. An
 1557  insurer that applies the allowable payment limitations of
 1558  subparagraph 1. must reimburse a provider who lawfully provided
 1559  care or treatment under the scope of his or her license,
 1560  regardless of whether such provider is entitled to reimbursement
 1561  under Medicare due to restrictions or limitations on the types
 1562  or discipline of health care providers who may be reimbursed for
 1563  particular procedures or procedure codes. However, subparagraph
 1564  1. does not prohibit an insurer from using the Medicare coding
 1565  policies and payment methodologies of the federal Centers for
 1566  Medicare and Medicaid Services, including applicable modifiers,
 1567  to determine the appropriate amount of reimbursement for medical
 1568  services, supplies, or care if the coding policy or payment
 1569  methodology does not constitute a utilization limit.
 1570         4. If an insurer limits payment as authorized by
 1571  subparagraph 1., the person providing such services, supplies,
 1572  or care may not bill or attempt to collect from the insured any
 1573  amount in excess of such limits, except for amounts that are not
 1574  covered by the insured’s personal injury protection coverage due
 1575  to the coinsurance amount or maximum policy limits.
 1576         5. Effective July 1, 2012, An insurer may limit payment as
 1577  authorized by this paragraph only if the insurance policy
 1578  includes a notice at the time of issuance or renewal that the
 1579  insurer may limit payment pursuant to the schedule of charges
 1580  specified in this paragraph. A policy form approved by the
 1581  office satisfies this requirement. If a provider submits a
 1582  charge for an amount less than the amount allowed under
 1583  subparagraph 1., the insurer may pay the amount of the charge
 1584  submitted.
 1585         Section 46. Subsection (1) and paragraphs (a) and (b) of
 1586  subsection (2) of section 627.744, Florida Statutes, are amended
 1587  to read:
 1588         627.744 Required preinsurance inspection of private
 1589  passenger motor vehicles.—
 1590         (1) A private passenger motor vehicle insurance policy
 1591  providing physical damage coverage, including collision or
 1592  comprehensive coverage, may not be issued in this state unless
 1593  the insurer has inspected the motor vehicle in accordance with
 1594  this section. Physical damage coverage on a motor vehicle may
 1595  not be suspended during the term of the policy due to the
 1596  applicant’s failure to provide required documents. However,
 1597  payment of a claim may be conditioned upon the insurer’s receipt
 1598  of the required documents, and physical damage loss occurring
 1599  after the effective date of coverage is not payable until the
 1600  documents are provided to the insurer.
 1601         (2) This section does not apply:
 1602         (a) To a policy for a policyholder who has been insured for
 1603  2 years or longer, without interruption, under a private
 1604  passenger motor vehicle policy that which provides physical
 1605  damage coverage for any vehicle, if the agent of the insurer
 1606  verifies the previous coverage.
 1607         (b) To a new, unused motor vehicle purchased or leased from
 1608  a licensed motor vehicle dealer or leasing company, if the
 1609  insurer is provided with:
 1610         1. A bill of sale, or buyer’s order, or lease agreement
 1611  that which contains a full description of the motor vehicle,
 1612  including all options and accessories; or
 1613         2. A copy of the title or registration that which
 1614  establishes transfer of ownership from the dealer or leasing
 1615  company to the customer and a copy of the window sticker or the
 1616  dealer invoice showing the itemized options and equipment and
 1617  the total retail price of the vehicle.
 1619  For the purposes of this paragraph, the physical damage coverage
 1620  on the motor vehicle may not be suspended during the term of the
 1621  policy due to the applicant’s failure to provide the required
 1622  documents. However, payment of a claim is conditioned upon the
 1623  receipt by the insurer of the required documents, and no
 1624  physical damage loss occurring after the effective date of the
 1625  coverage is payable until the documents are provided to the
 1626  insurer.
 1627         Section 47. Paragraph (b) of subsection (3) of section
 1628  627.745, Florida Statutes, is amended, present subsections (4)
 1629  and (5) of that section are redesignated as subsections (5) and
 1630  (6), respectively, and a new subsection (4) is added to that
 1631  section, to read:
 1632         627.745 Mediation of claims.—
 1633         (3)
 1634         (b) To qualify for approval as a mediator, an individual a
 1635  person must meet one of the following qualifications:
 1636         1. Possess an active certification as a Florida Supreme
 1637  Court certified circuit court mediator. A circuit court mediator
 1638  whose certification is in a lapsed, suspended, or decertified
 1639  status is not eligible to participate in the program a masters
 1640  or doctorate degree in psychology, counseling, business,
 1641  accounting, or economics, be a member of The Florida Bar, be
 1642  licensed as a certified public accountant, or demonstrate that
 1643  the applicant for approval has been actively engaged as a
 1644  qualified mediator for at least 4 years prior to July 1, 1990.
 1645         2. Be an approved department mediator as of July 1, 2014,
 1646  and have conducted at least one mediation on behalf of the
 1647  department within the 4 years immediately preceding that the
 1648  date the application for approval is filed with the department,
 1649  have completed a minimum of a 40-hour training program approved
 1650  by the department and successfully passed a final examination
 1651  included in the training program and approved by the department.
 1652  The training program shall include and address all of the
 1653  following:
 1654         a. Mediation theory.
 1655         b. Mediation process and techniques.
 1656         c. Standards of conduct for mediators.
 1657         d. Conflict management and intervention skills.
 1658         e. Insurance nomenclature.
 1659         (4) The department shall deny an application, or suspend or
 1660  revoke its approval of a mediator or certification of a neutral
 1661  evaluator to serve in such capacity, if the department finds
 1662  that any of the following grounds exist:
 1663         (a) Lack of one or more of the qualifications for approval
 1664  or certification specified in this section.
 1665         (b) Material misstatement, misrepresentation, or fraud in
 1666  obtaining, or attempting to obtain, the approval or
 1667  certification.
 1668         (c) Demonstrated lack of fitness or trustworthiness to act
 1669  as a mediator or neutral evaluator.
 1670         (d) Fraudulent or dishonest practices in the conduct of
 1671  mediation or neutral evaluation or in the conduct of business in
 1672  the financial services industry.
 1673         (e) Violation of any provision of this code or of a lawful
 1674  order or rule of the department, violation of the Florida Rules
 1675  of Certified and Court Appointed Mediators, or aiding,
 1676  instructing, or encouraging another party in committing such a
 1677  violation.
 1679  The department may adopt rules to administer this subsection.
 1680         Section 48. Paragraph (a) of subsection (1) of section
 1681  627.778, Florida Statutes, is amended to read:
 1682         627.778 Limit of risk.—
 1683         (1)(a) A title insurer may not issue a any contract of
 1684  title insurance, either as a primary insurer or as a coinsurer
 1685  or reinsurer, upon an estate, lien, or interest in property
 1686  located in this state unless:
 1687         1. The contract shows on its face the dollar amount of the
 1688  risk assumed; and
 1689         2. The dollar amount of the risk assumed does not exceed 50
 1690  percent of the sum of surplus with respect to policyholders,
 1691  plus the statutory premium reserve less the title insurer’s
 1692  investment in title plants as shown in the most recent annual
 1693  statement of the title insurer on file with the office one-half
 1694  of its surplus as to policyholders, unless the excess is
 1695  simultaneously reinsured in one or more approved insurers.
 1696         Section 49. Subsection (8) of section 627.782, Florida
 1697  Statutes, is amended to read:
 1698         627.782 Adoption of rates.—
 1699         (8) Each title insurance agency and insurer licensed to do
 1700  business in this state and each insurer’s direct or retail
 1701  business in this state shall maintain and submit information,
 1702  including revenue, loss, and expense data, as the office
 1703  determines necessary to assist in the analysis of title
 1704  insurance premium rates, title search costs, and the condition
 1705  of the title insurance industry in this state. This information
 1706  must be transmitted to the office annually by May March 31 of
 1707  the year after the reporting year. The commission shall adopt
 1708  rules regarding the collection and analysis of the data from the
 1709  title insurance industry.
 1710         Section 50. Subsection (4) of section 627.841, Florida
 1711  Statutes, is amended to read:
 1712         627.841 Delinquency, collection, cancellation, and payment
 1713  check return charge charges; attorney attorney’s fees.—
 1714         (4) If In the event that a payment is made to a premium
 1715  finance company by debit, credit, electronic funds transfer,
 1716  check, or draft and such payment the instrument is returned,
 1717  declined, or cannot be processed due to because of insufficient
 1718  funds to pay it, the premium finance company may, if the premium
 1719  finance agreement so provides, impose a return payment charge of
 1720  $15.
 1721         Section 51. Subsections (1), (3), (10), and (12) of section
 1722  628.461, Florida Statutes, are amended to read:
 1723         628.461 Acquisition of controlling stock.—
 1724         (1) A person may not, individually or in conjunction with
 1725  an any affiliated person of such person, acquire directly or
 1726  indirectly, conclude a tender offer or exchange offer for, enter
 1727  into any agreement to exchange securities for, or otherwise
 1728  finally acquire 10 5 percent or more of the outstanding voting
 1729  securities of a domestic stock insurer or of a controlling
 1730  company, unless:
 1731         (a) The person or affiliated person has filed with the
 1732  office and sent to the insurer and controlling company a letter
 1733  of notification regarding the transaction or proposed
 1734  transaction within no later than 5 days after any form of tender
 1735  offer or exchange offer is proposed, or within no later than 5
 1736  days after the acquisition of the securities if no tender offer
 1737  or exchange offer is involved. The notification must be provided
 1738  on forms prescribed by the commission containing information
 1739  determined necessary to understand the transaction and identify
 1740  all purchasers and owners involved;
 1741         (b) The person or affiliated person has filed with the
 1742  office a statement as specified in subsection (3). The statement
 1743  must be completed and filed within 30 days after:
 1744         1. Any definitive acquisition agreement is entered;
 1745         2. Any form of tender offer or exchange offer is proposed;
 1746  or
 1747         3. The acquisition of the securities, if no definitive
 1748  acquisition agreement, tender offer, or exchange offer is
 1749  involved; and
 1750         (c) The office has approved the tender or exchange offer,
 1751  or acquisition if no tender offer or exchange offer is involved,
 1752  and approval is in effect.
 1754  In lieu of a filing as required under this subsection, a party
 1755  acquiring less than 10 percent of the outstanding voting
 1756  securities of an insurer may file a disclaimer of affiliation
 1757  and control. The disclaimer shall fully disclose all material
 1758  relationships and basis for affiliation between the person and
 1759  the insurer as well as the basis for disclaiming the affiliation
 1760  and control. After a disclaimer has been filed, the insurer
 1761  shall be relieved of any duty to register or report under this
 1762  section which may arise out of the insurer’s relationship with
 1763  the person unless and until the office disallows the disclaimer.
 1764  The office shall disallow a disclaimer only after furnishing all
 1765  parties in interest with notice and opportunity to be heard and
 1766  after making specific findings of fact to support the
 1767  disallowance. A filing as required under this subsection must be
 1768  made as to any acquisition that equals or exceeds 10 percent of
 1769  the outstanding voting securities.
 1770         (3) The statement to be filed with the office under
 1771  subsection (1) and furnished to the insurer and controlling
 1772  company must shall contain the following information and any
 1773  additional information as the office deems necessary to
 1774  determine the character, experience, ability, and other
 1775  qualifications of the person or affiliated person of such person
 1776  for the protection of the policyholders and shareholders of the
 1777  insurer and the public:
 1778         (a) The identity of, and the background information
 1779  specified in subsection (4) on, each natural person by whom, or
 1780  on whose behalf, the acquisition is to be made; and, if the
 1781  acquisition is to be made by, or on behalf of, a corporation,
 1782  association, or trust, as to the corporation, association, or
 1783  trust and as to any person who controls either directly or
 1784  indirectly controls the corporation, association, or trust, the
 1785  identity of, and the background information specified in
 1786  subsection (4) on, each director, officer, trustee, or other
 1787  natural person performing duties similar to those of a director,
 1788  officer, or trustee for the corporation, association, or trust;
 1789         (b) The source and amount of the funds or other
 1790  consideration used, or to be used, in making the acquisition;
 1791         (c) Any plans or proposals that which such persons may have
 1792  made to liquidate such insurer, to sell any of its assets or
 1793  merge or consolidate it with any person, or to make any other
 1794  major change in its business or corporate structure or
 1795  management; and any plans or proposals that which such persons
 1796  may have made to liquidate any controlling company of such
 1797  insurer, to sell any of its assets or merge or consolidate it
 1798  with any person, or to make any other major change in its
 1799  business or corporate structure or management;
 1800         (d) The number of shares or other securities which the
 1801  person or affiliated person of such person proposes to acquire,
 1802  the terms of the proposed acquisition, and the manner in which
 1803  the securities are to be acquired; and
 1804         (e) Information as to any contract, arrangement, or
 1805  understanding with any party with respect to any of the
 1806  securities of the insurer or controlling company, including, but
 1807  not limited to, information relating to the transfer of any of
 1808  the securities, option arrangements, puts or calls, or the
 1809  giving or withholding of proxies, which information names the
 1810  party with whom the contract, arrangement, or understanding has
 1811  been entered into and gives the details thereof.
 1812         (10) Upon notification to the office by the domestic stock
 1813  insurer or a controlling company that any person or any
 1814  affiliated person of such person has acquired 10 5 percent or
 1815  more of the outstanding voting securities of the domestic stock
 1816  insurer or controlling company without complying with the
 1817  provisions of this section, the office shall order that the
 1818  person and any affiliated person of such person cease
 1819  acquisition of any further securities of the domestic stock
 1820  insurer or controlling company; however, the person or any
 1821  affiliated person of such person may request a proceeding, which
 1822  proceeding shall be convened within 7 days after the rendering
 1823  of the order for the sole purpose of determining whether the
 1824  person, individually or in connection with an any affiliated
 1825  person of such person, has acquired 10 5 percent or more of the
 1826  outstanding voting securities of a domestic stock insurer or
 1827  controlling company. Upon the failure of the person or
 1828  affiliated person to request a hearing within 7 days, or upon a
 1829  determination at a hearing convened pursuant to this subsection
 1830  that the person or affiliated person has acquired voting
 1831  securities of a domestic stock insurer or controlling company in
 1832  violation of this section, the office may order the person and
 1833  affiliated person to divest themselves of any voting securities
 1834  so acquired.
 1835         (12)(a)A presumption of control may be rebutted by filing
 1836  a disclaimer of control. A person may file a disclaimer of
 1837  control with the office. The disclaimer must fully disclose all
 1838  material relationships and bases for affiliation between the
 1839  person and the insurer as well as the basis for disclaiming the
 1840  affiliation. The disclaimer of control shall be filed on a form
 1841  prescribed by the office, or a person or acquiring party may
 1842  file with the office a copy of a Schedule 13G on file with the
 1843  Securities and Exchange Commission pursuant to Rule 13d-1(b) or
 1844  Rule 13d-1(c) under the Securities Exchange Act of 1934, as
 1845  amended. After a disclaimer is filed, the insurer is relieved of
 1846  any duty to register or report under this section which may
 1847  arise out of the insurer’s relationship with the person, unless
 1848  the office disallows the disclaimer. For the purpose of this
 1849  section, the term “affiliated person” of another person means:
 1850         1. The spouse of such other person;
 1851         2. The parents of such other person and their lineal
 1852  descendants and the parents of such other person’s spouse and
 1853  their lineal descendants;
 1854         3. Any person who directly or indirectly owns or controls,
 1855  or holds with power to vote, 5 percent or more of the
 1856  outstanding voting securities of such other person;
 1857         4. Any person 5 percent or more of the outstanding voting
 1858  securities of which are directly or indirectly owned or
 1859  controlled, or held with power to vote, by such other person;
 1860         5. Any person or group of persons who directly or
 1861  indirectly control, are controlled by, or are under common
 1862  control with such other person;
 1863         6. Any officer, director, partner, copartner, or employee
 1864  of such other person;
 1865         7. If such other person is an investment company, any
 1866  investment adviser of such company or any member of an advisory
 1867  board of such company;
 1868         8. If such other person is an unincorporated investment
 1869  company not having a board of directors, the depositor of such
 1870  company; or
 1871         9. Any person who has entered into an agreement, written or
 1872  unwritten, to act in concert with such other person in acquiring
 1873  or limiting the disposition of securities of a domestic stock
 1874  insurer or controlling company.
 1875         (b) For the purposes of this section, the term “controlling
 1876  company” means any corporation, trust, or association owning,
 1877  directly or indirectly, 25 percent or more of the voting
 1878  securities of one or more domestic stock insurance companies.
 1879         Section 52. Subsection (11) of section 631.717, Florida
 1880  Statutes, is amended to read:
 1881         631.717 Powers and duties of the association.—
 1882         (11) The association is shall not be liable for any civil
 1883  action under s. 624.155 arising from any acts alleged to have
 1884  been committed by a member insurer before prior to its
 1885  liquidation. This subsection does not affect the association’s
 1886  obligation to pay valid insurance policy or contract claims if
 1887  warranted after its independent de novo review of the policies,
 1888  contracts, and claims presented to it, whether domestic or
 1889  foreign, after a Florida domestic rehabilitation or a
 1890  liquidation.
 1891         Section 53. Section 631.737, Florida Statutes, is amended
 1892  to read:
 1893         631.737 Rescission and review generally.—The association
 1894  shall review claims and matters regarding covered policies based
 1895  upon the record available to it on and after the date of
 1896  liquidation. Notwithstanding any other provision of this part,
 1897  in order to allow for orderly claims administration by the
 1898  association, entry of a liquidation order by a court of
 1899  competent jurisdiction tolls shall be deemed to toll for 1 year
 1900  any rescission or noncontestable period allowed by the contract,
 1901  the policy, or by law. The association’s obligation is to pay
 1902  any valid insurance policy or contract claims, if warranted,
 1903  after its independent de novo review of the policies, contracts,
 1904  and claims presented to it, whether domestic or foreign, after a
 1905  rehabilitation or a liquidation.
 1906         Section 54. Subsections (6) and (7) of section 634.406,
 1907  Florida Statutes, are amended to read:
 1908         634.406 Financial requirements.—
 1909         (6) An association that which holds a license under this
 1910  part and which does not hold any other license under this
 1911  chapter may allow its premiums for service warranties written
 1912  under this part to exceed the ratio to net assets limitations of
 1913  this section if the association meets all of the following
 1914  conditions:
 1915         (a) Maintains net assets of at least $750,000.
 1916         (b) Uses Utilizes a contractual liability insurance policy
 1917  approved by the office that: which
 1918         1. Reimburses the service warranty association for 100
 1919  percent of its claims liability and is issued by an insurer that
 1920  maintains a policyholder surplus of at least $100 million; or
 1921         2. Complies with subsection (3) and is issued by an insurer
 1922  that maintains a policyholder surplus of at least $200 million.
 1923         (c) The insurer issuing the contractual liability insurance
 1924  policy:
 1925         1. Maintains a policyholder surplus of at least $100
 1926  million.
 1927         1.2. Is rated “A” or higher by A.M. Best Company or an
 1928  equivalent rating by another national rating service acceptable
 1929  to the office.
 1930         3. Is in no way affiliated with the warranty association.
 1931         2.4. In conjunction with the warranty association’s filing
 1932  of the quarterly and annual reports, provides, on a form
 1933  prescribed by the commission, a statement certifying the gross
 1934  written premiums in force reported by the warranty association
 1935  and a statement that all of the warranty association’s gross
 1936  written premium in force is covered under the contractual
 1937  liability policy, regardless of whether or not it has been
 1938  reported.
 1939         (7) A contractual liability policy must insure 100 percent
 1940  of an association’s claims exposure under all of the
 1941  association’s service warranty contracts, wherever written,
 1942  unless all of the following are satisfied:
 1943         (a) The contractual liability policy contains a clause that
 1944  specifically names the service warranty contract holders as sole
 1945  beneficiaries of the contractual liability policy and claims are
 1946  paid directly to the person making a claim under the contract;
 1947         (b) The contractual liability policy meets all other
 1948  requirements of this part, including subsection (3) of this
 1949  section, which are not inconsistent with this subsection;
 1950         (c) The association has been in existence for at least 5
 1951  years or the association is a wholly owned subsidiary of a
 1952  corporation that has been in existence and has been licensed as
 1953  a service warranty association in the state for at least 5
 1954  years, and:
 1955         1. Is listed and traded on a recognized stock exchange; is
 1956  listed in NASDAQ (National Association of Security Dealers
 1957  Automated Quotation system) and publicly traded in the over-the
 1958  counter securities market; is required to file either of Form
 1959  10-K, Form 100, or Form 20-G with the United States Securities
 1960  and Exchange Commission; or has American Depository Receipts
 1961  listed on a recognized stock exchange and publicly traded or is
 1962  the wholly owned subsidiary of a corporation that is listed and
 1963  traded on a recognized stock exchange; is listed in NASDAQ
 1964  (National Association of Security Dealers Automated Quotation
 1965  system) and publicly traded in the over-the-counter securities
 1966  market; is required to file Form 10-K, Form 100, or Form 20-G
 1967  with the United States Securities and Exchange Commission; or
 1968  has American Depository Receipts listed on a recognized stock
 1969  exchange and is publicly traded;
 1970         2. Maintains outstanding debt obligations, if any, rated in
 1971  the top four rating categories by a recognized rating service;
 1972         3. Has and maintains at all times a minimum net worth of
 1973  not less than $10 million as evidenced by audited financial
 1974  statements prepared by an independent certified public
 1975  accountant in accordance with generally accepted accounting
 1976  principles and submitted to the office annually; and
 1977         4. Is authorized to do business in this state; and
 1978         (d) The insurer issuing the contractual liability policy:
 1979         1. Maintains and has maintained for the preceding 5 years,
 1980  policyholder surplus of at least $100 million and is rated “A”
 1981  or higher by A.M. Best Company or has an equivalent rating by
 1982  another rating company acceptable to the office;
 1983         2. Holds a certificate of authority to do business in this
 1984  state and is approved to write this type of coverage; and
 1985         3. Acknowledges to the office quarterly that it insures all
 1986  of the association’s claims exposure under contracts delivered
 1987  in this state.
 1989  If all the preceding conditions are satisfied, then the scope of
 1990  coverage under a contractual liability policy shall not be
 1991  required to exceed an association’s claims exposure under
 1992  service warranty contracts delivered in this state.
 1993         Section 55. Except as otherwise expressly provided in this
 1994  act, this act shall take effect July 1, 2014.
 1996  ================= T I T L E  A M E N D M E N T ================
 1997  And the title is amended as follows:
 1998         Delete everything before the enacting clause
 1999  and insert:
 2000                        A bill to be entitled                      
 2001         An act relating to insurance; amending s. 624.501,
 2002         F.S.; revising original appointment and renewal fees
 2003         related to certain insurance representatives; amending
 2004         s. 626.015, F.S.; defining the term “unaffiliated
 2005         insurance agent”; amending s. 626.0428, F.S.;
 2006         requiring a branch place of business to have an agent
 2007         in charge; authorizing an agent to be in charge of
 2008         more than one branch office under certain
 2009         circumstances; providing requirements relating to the
 2010         designation of an agent in charge; prohibiting an
 2011         insurance agency from conducting insurance business at
 2012         a location without a designated agent in charge;
 2013         providing that the agent in charge is accountable for
 2014         misconduct and violations committed by the licensee
 2015         and any person under his or her supervision; amending
 2016         s. 626.112, F.S.; prohibiting limited customer
 2017         representative licenses from being issued after a
 2018         specified date; providing licensure exemptions that
 2019         allow specified individuals or entities to conduct
 2020         insurance business at specified locations under
 2021         certain circumstances; revising licensure requirements
 2022         and penalties with respect to registered insurance
 2023         agencies; providing that the registration of an
 2024         approved registered insurance agency automatically
 2025         converts to an insurance agency license on a specified
 2026         date; amending s. 626.172, F.S.; revising requirements
 2027         relating to applications for insurance agency
 2028         licenses; conforming provisions to changes made by the
 2029         act; amending s. 626.311, F.S.; limiting the types of
 2030         business that may be transacted by certain agents;
 2031         amending s. 626.321, F.S.; providing that a limited
 2032         license to offer motor vehicle rental insurance issued
 2033         to a business that rents or leases motor vehicles
 2034         encompasses the employees of such business; amending
 2035         s. 626.382, F.S.; providing that an insurance agency
 2036         license continues in force until canceled, suspended,
 2037         revoked, terminated, or expired; amending s. 626.601,
 2038         F.S.; revising terminology relating to investigations
 2039         conducted by the Department of Financial Services and
 2040         the Office of Insurance Regulation with respect to
 2041         individuals and entities involved in the insurance
 2042         industry; revising a confidentiality provision;
 2043         repealing s. 626.747, F.S., relating to branch
 2044         agencies, agents in charge, and the payment of
 2045         additional county tax under certain circumstances;
 2046         amending s. 626.8411, F.S.; conforming a cross
 2047         reference; amending s. 626.854, F.S.; deleting the
 2048         requirement that a 48 hours’ notice be provided before
 2049         scheduling an onsite inspection of insured property;
 2050         conforming a cross-reference; amending s. 626.8805,
 2051         F.S.; revising insurance administrator application
 2052         requirements; amending s. 626.8817, F.S.; authorizing
 2053         an insurer’s designee to provide certain coverage
 2054         information to an insurance administrator; authorizing
 2055         an insurer to subcontract the review of an insurance
 2056         administrator; amending s. 626.882, F.S.; prohibiting
 2057         a person from acting as an insurance administrator
 2058         without a specific written agreement; amending s.
 2059         626.883, F.S.; requiring an insurance administrator to
 2060         furnish fiduciary account records to an insurer;
 2061         requiring administrator withdrawals from a fiduciary
 2062         account to be made according to a specific written
 2063         agreement; providing that an insurer’s designee may
 2064         authorize payment of claims; amending s. 626.884,
 2065         F.S.; revising an insurer’s right of access to certain
 2066         administrator records; amending s. 626.89, F.S.;
 2067         revising the deadline for filing certain financial
 2068         statements; deleting provisions allowing an extension
 2069         for administrator to submit certain financial
 2070         statements; amending s. 626.931, F.S.; deleting
 2071         provisions requiring a surplus lines agent to file a
 2072         quarterly affidavit with the Florida Surplus Lines
 2073         Service Office; amending s. 626.932, F.S.; revising
 2074         the due date of surplus lines tax; amending ss.
 2075         626.935 and 626.936, F.S.; conforming provisions to
 2076         changes made by the act; amending s. 626.9541, F.S.;
 2077         revising provisions for unfair methods of competition
 2078         and unfair or deceptive acts relating to conducting
 2079         certain insurance transactions through credit card
 2080         facilities; conforming cross-references; amending s.
 2081         627.062, F.S.; authorizing the Office of Insurance
 2082         Regulation to use a straight average of model results
 2083         or output ranges to estimate hurricane losses when
 2084         determining whether the rates in a rate filing are
 2085         excessive, inadequate, or unfairly discriminatory;
 2086         amending s. 627.0628, F.S.; increasing the length of
 2087         time during which an insurer must adhere to certain
 2088         findings made by the Commission on Hurricane Loss
 2089         Projection Methodology with respect to certain
 2090         methods, principles, standards, models, or output
 2091         ranges used in a rate filing; providing that the
 2092         requirement to adhere to such findings does not limit
 2093         an insurer from using straight averages of model
 2094         results or output ranges under specified
 2095         circumstances; amending s. 627.0651, F.S.; revising
 2096         provisions for making and use of rates for motor
 2097         vehicle insurance; amending s. 627.072, F.S.;
 2098         authorizing retrospective rating plans relating to
 2099         workers’ compensation and employer’s liability
 2100         insurance to allow negotiations between certain
 2101         employers and insurers with respect to rating factors
 2102         used to calculate premiums; amending ss. 627.281,
 2103         F.S.; conforming a cross-reference; amending s.
 2104         627.311, F.S.; providing that certain dividends may be
 2105         retained by the joint underwriting plan for future
 2106         use; amending s. 627.3518, F.S.; conforming a cross
 2107         reference; repealing s. 627.3519, F.S., relating to an
 2108         annual report on the aggregate report of maximum
 2109         losses of the Florida Hurricane Catastrophe Fund and
 2110         Citizens Property Insurance Corporation; amending s.
 2111         627.409, F.S.; providing that a claim for residential
 2112         property insurance may not be denied based on certain
 2113         credit information; amending s. 627.4133, F.S.;
 2114         extending the period for prior notice required with
 2115         respect to the nonrenewal, cancellation, or
 2116         termination of certain insurance policies; deleting
 2117         certain provisions that require extended periods of
 2118         prior notice with respect to the nonrenewal,
 2119         cancellation, or termination of certain insurance
 2120         policies; prohibiting the cancellation of certain
 2121         policies that have been in effect for a specified
 2122         amount of time, except under certain circumstances;
 2123         prohibiting the cancellation of a policy or contract
 2124         that has been in effect for a specified amount of time
 2125         based on certain credit information; amending s.
 2126         627.4137, F.S.; adding licensed company adjusters to
 2127         the list of persons who may respond to a claimant’s
 2128         written request for information relating to liability
 2129         insurance coverage; amending s. 627.421, F.S.;
 2130         authorizing a policyholder of personal lines insurance
 2131         to affirmatively elect delivery of policy documents by
 2132         electronic means; amending s. 627.43141, F.S.;
 2133         authorizing a notice of change in policy terms to be
 2134         sent in a separate mailing to an insured under certain
 2135         circumstances; requiring an insurer to provide such
 2136         notice to the insured’s insurance agent; creating s.
 2137         627.4553, F.S.; providing requirements for the
 2138         recommendation to surrender an annuity or life
 2139         insurance policy; amending s. 627.7015, F.S.; revising
 2140         the rulemaking authority of the department with
 2141         respect to qualifications and specified types of
 2142         penalties covered under the property insurance
 2143         mediation program; creating s. 627.70151, F.S.;
 2144         providing criteria for an insurer or policyholder to
 2145         challenge the impartiality of a loss appraisal umpire
 2146         for purposes of disqualifying such umpire; amending s.
 2147         627.706, F.S.; revising the definition of the term
 2148         “neutral evaluator”; amending s. 627.7074, F.S.;
 2149         revising notification requirements for participation
 2150         in the neutral evaluation program; providing grounds
 2151         for the department to deny an application, or suspend
 2152         or revoke certification, of a neutral evaluator;
 2153         requiring the department to adopt rules relating to
 2154         certification of neutral evaluators; amending s.
 2155         627.711, F.S.; revising verification requirements for
 2156         uniform mitigation verification forms; amending s.
 2157         627.7283, F.S.; providing for the electronic transfer
 2158         of unearned premiums returned when a policy is
 2159         cancelled; amending s. 627.736, F.S.; revising the
 2160         time period for applicability of certain Medicare fee
 2161         schedules or payment limitations; amending s. 627.744,
 2162         F.S.; revising preinsurance inspection requirements
 2163         for private passenger motor vehicles; amending s.
 2164         627.745, F.S.; revising qualifications for approval as
 2165         a mediator by the department; providing grounds for
 2166         the department to deny an application, or suspend or
 2167         revoke approval of a mediator or certification of a
 2168         neutral evaluator; authorizing the department to adopt
 2169         rules; amending s. 627.778, F.S.; revising provisions
 2170         relating to risk limits on title insurance contracts;
 2171         amending s. 627.782, F.S.; revising the date by which
 2172         title insurance agencies and certain insurers must
 2173         annually submit specified information to the Office of
 2174         Insurance Regulation; amending s. 627.841, F.S.;
 2175         providing that an insurance premium finance company
 2176         may impose a charge for payments returned, declined,
 2177         or unable to be processed due to insufficient funds;
 2178         amending s. 628.461, F.S.; revising filing
 2179         requirements relating to the acquisition of
 2180         controlling stock; revising the amount of outstanding
 2181         voting securities of a domestic stock insurer or a
 2182         controlling company that a person is prohibited from
 2183         acquiring unless certain requirements have been met;
 2184         prohibiting persons acquiring a certain percentage of
 2185         voting securities from acquiring certain securities;
 2186         providing that a presumption of control may be
 2187         rebutted by filing a disclaimer of control; deleting a
 2188         definition; amending ss. 631.717 and 631.734, F.S.;
 2189         transferring a provision relating to the obligations
 2190         of the Florida Life and Health Insurance Guaranty
 2191         Association; amending s. 634.406, F.S.; revising
 2192         criteria authorizing premiums of certain service
 2193         warranty associations to exceed their specified net
 2194         assets limitations; revising requirements relating to
 2195         contractual liability policies that insure warranty
 2196         associations; providing effective dates.