Florida Senate - 2014                                    SB 1260
       By Senator Brandes
       22-01199A-14                                          20141260__
    1                        A bill to be entitled                      
    2         An act relating to insurance; amending s. 554.1021,
    3         F.S.; revising definitions relating to boiler safety;
    4         defining the term “authorized inspection agency”;
    5         amending s. 554.107, F.S.; requiring the chief
    6         inspector of the state boiler inspection program to
    7         issue a certificate of competency as a special
    8         inspector to an inspector employed by an authorized
    9         inspection agency, rather than to an inspector
   10         employed by a company licensed to insure boilers;
   11         specifying the duration of such certificate; amending
   12         s. 554.109, F.S.; authorizing specified insurers to
   13         contract with an authorized inspection agency for
   14         boiler inspections; requiring such insurers to
   15         annually report the identity of contracted authorized
   16         inspection agencies to the Department of Financial
   17         Services; amending s. 624.4625, F.S.; revising the
   18         requirements for a not-for-profit corporation that
   19         participates in forming a self-insurance fund for
   20         pooling the liabilities of its group members; amending
   21         s. 624.501, F.S.; revising original appointment and
   22         renewal fees related to certain insurance
   23         representatives; amending s. 626.015, F.S.; defining
   24         the term “unaffiliated insurance agent”; amending s.
   25         626.0428, F.S.; requiring a branch place of business
   26         to have an agent in charge; authorizing an agent to be
   27         in charge of more than one branch office under certain
   28         circumstances; providing requirements relating to the
   29         designation of an agent in charge; providing that the
   30         agent in charge is accountable for misconduct and
   31         violations committed by the licensee and any person
   32         under his or her supervision; prohibiting an insurance
   33         agency from conducting insurance business at a
   34         location without a designated agent in charge;
   35         amending s. 626.112, F.S.; prohibiting limited
   36         customer representative licenses from being issued
   37         after a specified date; providing licensure exemptions
   38         that allow specified individuals or entities to
   39         conduct insurance business at specified locations
   40         under certain circumstances; revising licensure
   41         requirements and penalties with respect to registered
   42         insurance agencies; providing that the registration of
   43         an approved registered insurance agency automatically
   44         converts to an insurance agency license on a specified
   45         date; amending s. 626.172, F.S.; revising requirements
   46         relating to applications for insurance agency
   47         licenses; conforming provisions to changes made by the
   48         act; amending s. 626.311, F.S.; limiting the types of
   49         business that may be transacted by certain agents;
   50         amending s. 626.321, F.S.; providing that a limited
   51         license to offer motor vehicle rental insurance issued
   52         to a business that rents or leases motor vehicles
   53         encompasses the employees of such business; amending
   54         s. 626.382, F.S.; providing that an insurance agency
   55         license continues in force until canceled, suspended,
   56         revoked, terminated, or expired; amending s. 626.601,
   57         F.S.; revising terminology relating to investigations
   58         conducted by the Department of Financial Services and
   59         the Office of Insurance Regulation with respect to
   60         individuals and entities involved in the insurance
   61         industry; revising a confidentiality provision;
   62         repealing s. 626.747, F.S., relating to branch
   63         agencies, agents in charge, and the payment of
   64         additional county tax under certain circumstances;
   65         amending s. 626.8411, F.S.; conforming a cross
   66         reference; amending s. 626.8805, F.S.; revising
   67         insurance administrator application requirements;
   68         amending s. 626.8817, F.S.; authorizing an insurer’s
   69         designee to provide certain coverage information to an
   70         insurance administrator; authorizing an insurer to
   71         subcontract the review of an insurance administrator;
   72         amending s. 626.882, F.S.; prohibiting a person from
   73         acting as an insurance administrator without a
   74         specific written agreement; amending s. 626.883, F.S.;
   75         requiring an insurance administrator to furnish
   76         fiduciary account records to an insurer; requiring
   77         administrator withdrawals from a fiduciary account to
   78         be made according to a specific written agreement;
   79         providing that an insurer’s designee may authorize
   80         payment of claims; amending s. 626.884, F.S.; revising
   81         an insurer’s right of access to certain administrator
   82         records; amending s. 626.89, F.S.; revising the
   83         deadline for filing certain financial statements;
   84         amending s. 626.931, F.S.; deleting provisions
   85         requiring a surplus lines agent to file a quarterly
   86         affidavit with the Florida Surplus Lines Service
   87         Office; amending s. 626.932, F.S.; revising the due
   88         date of surplus lines tax; amending ss. 626.935 and
   89         626.936, F.S.; conforming provisions to changes made
   90         by the act; amending s. 627.062, F.S.; authorizing the
   91         Office of Insurance Regulation to use a straight
   92         average of model results or output ranges to estimate
   93         hurricane losses when determining whether the rates in
   94         a rate filing are excessive, inadequate, or unfairly
   95         discriminatory; amending s. 627.0628, F.S.; increasing
   96         the length of time during which an insurer must adhere
   97         to certain findings made by the Commission on
   98         Hurricane Loss Projection Methodology with respect to
   99         certain methods, principles, standards, models, or
  100         output ranges used in a rate filing; providing that
  101         the requirement to adhere to such findings does not
  102         limit an insurer from using straight averages of model
  103         results or output ranges under specified
  104         circumstances; amending s. 627.0651, F.S.; revising
  105         provisions for making and use of rates for motor
  106         vehicle insurance; amending s. 627.072, F.S.;
  107         authorizing retrospective rating plans relating to
  108         workers’ compensation and employer’s liability
  109         insurance to allow negotiations between certain
  110         employers and insurers with respect to rating factors
  111         used to calculate premiums; amending ss. 627.281 and
  112         627.3518, F.S.; conforming cross-references; amending
  113         s. 627.311, F.S.; providing that certain dividends or
  114         premium refunds shall be retained by the joint
  115         underwriting plan for future use; repealing s.
  116         627.3519, F.S., relating to an annual report on the
  117         aggregate report of maximum losses of the Florida
  118         Hurricane Catastrophe Fund and Citizens Property
  119         Insurance Corporation; amending s. 627.409, F.S.;
  120         providing that a claim for residential property
  121         insurance may not be denied based on certain credit
  122         information; amending s. 627.4133, F.S.; extending the
  123         period for prior notice required with respect to the
  124         nonrenewal, cancellation, or termination of certain
  125         insurance policies; deleting certain provisions that
  126         require extended periods of prior notice with respect
  127         to the nonrenewal, cancellation, or termination of
  128         certain insurance policies; prohibiting the
  129         cancellation of certain policies that have been in
  130         effect for a specified amount of time, except under
  131         certain circumstances; prohibiting the cancellation of
  132         a policy or contract that has been in effect for a
  133         specified amount of time based on certain credit
  134         information; amending s. 627.4137, F.S.; adding
  135         licensed company adjusters to the list of persons who
  136         may respond to a claimant’s written request for
  137         information relating to liability insurance coverage;
  138         amending s. 627.421, F.S.; authorizing a policyholder
  139         of personal lines insurance to affirmatively elect
  140         delivery of policy documents by electronic means;
  141         amending s. 627.43141, F.S.; authorizing a notice of
  142         change in policy terms to be sent in a separate
  143         mailing to an insured under certain circumstances;
  144         requiring an insurer to provide such notice to
  145         insured’s insurance agent; creating s. 627.4553, F.S.;
  146         providing requirements for the recommendation to
  147         surrender an annuity or life insurance policy;
  148         amending s. 627.7015, F.S.; revising the rulemaking
  149         authority of the department with respect to
  150         qualifications and specified types of penalties
  151         covered under the property insurance mediation
  152         program; creating s. 627.70151, F.S.; providing
  153         criteria for an insurer or policyholder to challenge
  154         the impartiality of a loss appraisal umpire for
  155         purposes of disqualifying such umpire; amending s.
  156         627.706, F.S.; revising the definition of the term
  157         “neutral evaluator”; amending s. 627.7074, F.S.;
  158         revising notification requirements for participation
  159         in the neutral evaluation program; providing grounds
  160         for the department to deny an application, or suspend
  161         or revoke certification, of a neutral evaluator;
  162         requiring the department to adopt rules relating to
  163         certification of neutral evaluators; amending s.
  164         627.711, F.S.; revising verification requirements for
  165         uniform mitigation verification forms; amending s.
  166         627.736, F.S.; revising the time period for
  167         applicability of certain Medicare fee schedules or
  168         payment limitations; amending s. 627.744, F.S.;
  169         revising preinsurance inspection requirements for
  170         private passenger motor vehicles; amending s. 627.745,
  171         F.S.; revising qualifications for approval as a
  172         mediator by the department; providing grounds for the
  173         department to deny an application, or suspend or
  174         revoke approval of a mediator or certification of a
  175         neutral evaluator; authorizing the department to adopt
  176         rules; amending s. 627.782, F.S.; revising the date by
  177         which title insurance agencies and certain insurers
  178         must annually submit specified information to the
  179         Office of Insurance Regulation; amending s. 627.841,
  180         F.S.; providing that an insurance premium finance
  181         company may impose a charge for payments returned,
  182         declined, or unable to be processed due to
  183         insufficient funds; amending s. 628.461, F.S.;
  184         revising filing requirements relating to the
  185         acquisition of controlling stock; revising the amount
  186         of outstanding voting securities of a domestic stock
  187         insurer or a controlling company that a person is
  188         prohibited from acquiring unless certain requirements
  189         have been met; prohibiting persons acquiring a certain
  190         percentage of voting securities from acquiring certain
  191         securities; providing that a presumption of control
  192         may be rebutted by filing a disclaimer of control;
  193         providing filing requirements for the divestiture of
  194         controlling interest in a domestic insurer; deleting a
  195         definition; revising the content of the statement that
  196         a person must file with the office in order to acquire
  197         certain outstanding voting securities; amending s.
  198         634.406, F.S.; revising criteria authorizing premiums
  199         of certain service warranty associations to exceed
  200         their specified net assets limitations; revising
  201         requirements relating to contractual liability
  202         policies that insure warranty associations; providing
  203         effective dates.
  205  Be It Enacted by the Legislature of the State of Florida:
  207         Section 1. Section 554.1021, Florida Statutes, is reordered
  208  and amended to read:
  209         554.1021 Definitions.—As used in ss. 554.1011-554.115, the
  210  term:
  211         (3)(1) “Boiler” means a closed vessel in which water or
  212  other liquid is heated, steam or vapor is generated, steam is
  213  superheated, or any combination of these functions is
  214  accomplished, under pressure or vacuum, for use external to
  215  itself, by the direct application of energy from the combustion
  216  of fuels or from electricity or solar energy. The term “boiler”
  217  includes fired units for heating or vaporizing liquids other
  218  than water where such these units are separate from processing
  219  systems and are complete within themselves. The varieties of
  220  boilers are as follows:
  221         (d)(a) “Power boiler” means a boiler in which steam or
  222  other vapor is generated at a pressure exceeding of more than 15
  223  psig.
  224         (b) “High pressure, high temperature water boiler” means a
  225  water boiler operating at pressures exceeding 160 psig or
  226  temperatures exceeding 250 °F.
  227         (a)(c) “Heating boiler” means a steam or vapor boiler
  228  operating at pressures up to not exceeding 15 psig, or a hot
  229  water boiler operating at pressures up to not exceeding 160 psig
  230  or temperatures up to not exceeding 250 °F.
  231         (c)(d) “Hot water supply boiler” means a boiler or a lined
  232  storage water heater supplying heated water for use external to
  233  itself operating at a pressure up to not exceeding 160 psig or
  234  temperature up to not exceeding 250 °F.
  235         (e) “Secondhand boiler” means a boiler that has changed
  236  ownership and location subsequent to its original installation
  237  and use.
  238         (8)(2) “Public assembly locations” means include schools,
  239  day care centers, community centers, churches, theaters,
  240  hospitals, nursing and convalescent homes, stadiums, amusement
  241  parks, and other locations open to the general public.
  242         (4)(3) “Certificate inspection” means an inspection the
  243  report of which is used by the chief inspector to determine
  244  whether or not a certificate may be issued.
  245         (6)(4) “Certificate of compliance” means a document issued
  246  to the owner of a boiler which authorizes the owner to operate
  247  the boiler, subject to any restrictions endorsed thereon.
  248         (5) “Certificate of competency” means a document issued to
  249  a person who has satisfied the minimum competency requirements
  250  for boiler inspectors under this chapter ss. 554.1011-554.115.
  251         (7)(6) “Department” means the Department of Financial
  252  Services.
  253         (1)(7) “A.S.M.E.” means the American Society of Mechanical
  254  Engineers.
  255         (2) “Authorized inspection agency” means:
  256         (a) A county, a municipality, or any other governmental
  257  subdivision that, at a minimum, adopts and administers Section I
  258  of the A.S.M.E. Boiler and Pressure Vessel Code as a legal
  259  requirement and whose inspectors hold a valid certificate of
  260  competency in accordance with s. 554.113; or
  261         (b) An insurance company that is licensed or registered by
  262  an appropriate authority of any state of the United States or
  263  Canada and whose inspectors hold a certificate of competency in
  264  accordance with s. 554.113.
  265         Section 2. Section 554.107, Florida Statutes, is amended to
  266  read:
  267         554.107 Special inspectors.—
  268         (1) Upon application by an authorized inspection agency any
  269  company licensed to insure boilers in this state, the chief
  270  inspector shall issue a certificate of competency as a special
  271  inspector to an any inspector employed by the agency if he or
  272  she company, provided that such inspector satisfies the
  273  competency requirements for inspectors as provided in s.
  274  554.113.
  275         (2) The certificate of competency of a special inspector
  276  remains shall remain in effect only so long as the special
  277  inspector is employed by an authorized inspection agency a
  278  company licensed to insure boilers in this state. Upon
  279  termination of employment with such agency company, a special
  280  inspector shall, in writing, notify the chief inspector of such
  281  termination. Such notice shall be given within 15 days following
  282  the date of termination.
  283         Section 3. Subsection (1) of section 554.109, Florida
  284  Statutes, is amended to read:
  285         554.109 Exemptions.—
  286         (1) An Any insurance company that insures insuring a boiler
  287  located in a public assembly location in this state shall
  288  inspect or contract with an authorized inspection agency to
  289  inspect such boiler so insured, and shall annually report to the
  290  department the identity of an authorized inspection agency that
  291  performs a required boiler inspection on behalf of the company.
  292  A any county, municipality city, town, or other governmental
  293  subdivision that which has adopted into law the Boiler and
  294  Pressure Vessel Code of the American Society of Mechanical
  295  Engineers and the National Board Inspection Code for the
  296  construction, installation, inspection, maintenance, and repair
  297  of boilers, regulating such boilers in public assembly
  298  locations, shall inspect such boilers so regulated.; provided
  299  that Such inspection shall be conducted by a special inspector
  300  licensed pursuant to ss. 554.1011-554.115. Upon filing of a
  301  report of satisfactory inspection with the department, such
  302  boiler is exempt from inspection by the department.
  303         Section 4. Paragraph (b) of subsection (1) of section
  304  624.4625, Florida Statutes, is amended to read:
  305         624.4625 Corporation not for profit self-insurance funds.—
  306         (1) Notwithstanding any other provision of law, any two or
  307  more not-for-profit corporations not for profit located in and
  308  organized under the laws of this state may form a self-insurance
  309  fund for the purpose of pooling and spreading liabilities of its
  310  group members in any one or combination of property or casualty
  311  risk if, provided the not-for-profit corporation not for profit
  312  self-insurance fund that is created:
  313         (b) Requires for qualification that each participating
  314  member qualify as a publicly supported organization as evidenced
  315  by the participating member’s most recently filed Internal
  316  Revenue Service Form 990 receive at least 75 percent of its
  317  revenues from local, state, or federal governmental sources or a
  318  combination of such sources.
  319         Section 5. Paragraphs (a) and (c) of subsection (6) and
  320  subsections (7) and (8) of section 624.501, Florida Statutes,
  321  are amended to read:
  322         624.501 Filing, license, appointment, and miscellaneous
  323  fees.—The department, commission, or office, as appropriate,
  324  shall collect in advance, and persons so served shall pay to it
  325  in advance, fees, licenses, and miscellaneous charges as
  326  follows:
  327         (6) Insurance representatives, property, marine, casualty,
  328  and surety insurance.
  329         (a) Agent’s original appointment and biennial renewal or
  330  continuation thereof, each insurer or unaffiliated agent making
  331  an appointment:
  332  Appointment fee...........................................$42.00
  333  State tax..................................................12.00
  334  County tax..................................................6.00
  335  Total.....................................................$60.00
  336         (c) Nonresident agent’s original appointment and biennial
  337  renewal or continuation thereof, appointment fee, each insurer
  338  or unaffiliated agent making an appointment...............$60.00
  339         (7) Life insurance agents.
  340         (a) Agent’s original appointment and biennial renewal or
  341  continuation thereof, each insurer or unaffiliated agent making
  342  an appointment:
  343  Appointment fee...........................................$42.00
  344  State tax..................................................12.00
  345  County tax..................................................6.00
  346  Total.....................................................$60.00
  347         (b) Nonresident agent’s original appointment and biennial
  348  renewal or continuation thereof, appointment fee, each insurer
  349  or unaffiliated agent making an appointment...............$60.00
  350         (8) Health insurance agents.
  351         (a) Agent’s original appointment and biennial renewal or
  352  continuation thereof, each insurer or unaffiliated agent making
  353  an appointment:
  354  Appointment fee...........................................$42.00
  355  State tax..................................................12.00
  356  County tax..................................................6.00
  357  Total.....................................................$60.00
  358         (b) Nonresident agent’s original appointment and biennial
  359  renewal or continuation thereof, appointment fee, each insurer
  360  or unaffiliated agent making an appointment...............$60.00
  361         Section 6. Present subsection (18) of section 626.015,
  362  Florida Statutes, is renumbered as subsection (19), and a new
  363  subsection (18) is added to that section, to read:
  364         626.015 Definitions.—As used in this part:
  365         (18) “Unaffiliated insurance agent” means a licensed
  366  insurance agent, except a limited lines agent, who is self
  367  appointed and who practices as an independent consultant in the
  368  business of analyzing or abstracting insurance policies,
  369  providing insurance advice or counseling, or making specific
  370  recommendations or comparisons of insurance products for a fee
  371  established in advance by written contract signed by the
  372  parties. An unaffiliated insurance agent may not be affiliated
  373  with an insurer, insurer-appointed insurance agent, or insurance
  374  agency contracted with or employing insurer-appointed insurance
  375  agents.
  376         Section 7. Section 626.0428, Florida Statutes, is amended
  377  to read:
  378         626.0428 Agency personnel powers, duties, and limitations.—
  379         (1) An individual employed by an agent or agency on salary
  380  who devotes full time to clerical work, with incidental taking
  381  of insurance applications or quoting or receiving premiums on
  382  incoming inquiries in the office of the agent or agency, is not
  383  deemed to be an agent or customer representative if his or her
  384  compensation does not include in whole or in part any
  385  commissions on such business and is not related to the
  386  production of applications, insurance, or premiums.
  387         (2) An employee or authorized representative located at a
  388  designated branch of an agent or agency may not bind insurance
  389  coverage unless licensed and appointed as an agent or customer
  390  representative.
  391         (3) An employee or authorized representative of an agent or
  392  agency may not initiate contact with any person for the purpose
  393  of soliciting insurance unless licensed and appointed as an
  394  agent or customer representative. As to title insurance, an
  395  employee of an agent or agency may not initiate contact with any
  396  individual proposed insured for the purpose of soliciting title
  397  insurance unless licensed as a title insurance agent or exempt
  398  from such licensure pursuant to s. 626.8417(4).
  399         (4)(a) Each place of business established by an agent or
  400  agency, firm, corporation, or association must be in the active
  401  full-time charge of a licensed and appointed agent holding the
  402  required agent licenses to transact the lines of insurance being
  403  handled at the location.
  404         (b) Notwithstanding paragraph (a), the licensed agent in
  405  charge of an insurance agency may also be the agent in charge of
  406  additional branch office locations of the agency if insurance
  407  activities requiring licensure as an insurance agent do not
  408  occur at any location when the agent is not physically present
  409  and unlicensed employees at the location do not engage in
  410  insurance activities requiring licensure as an insurance agent
  411  or customer representative.
  412         (c) An insurance agency and each branch place of business
  413  of an insurance agency shall designate an agent in charge and
  414  file the name and license number of the agent in charge and the
  415  physical address of the insurance agency location with the
  416  department and the department’s website. The designation of the
  417  agent in charge may be changed at the option of the agency. A
  418  change of the designated agent in charge is effective upon
  419  notice to the department. Notice to the department must be
  420  provided within 30 days after such change.
  421         (d) An insurance agency location may not conduct the
  422  business of insurance unless an agent in charge is designated
  423  and employed by the agency at all times. If the agent in charge
  424  designated with the department leaves the agency’s employment
  425  for any reason and the agency fails to designate another agent
  426  in charge within 30 days as provided in paragraph (c) and such
  427  failure continues for 90 days, the agency license shall
  428  automatically expire on the 91st day after the last date of
  429  employment of the last designated agent in charge.
  430         (e) For purposes of this subsection, an “agent in charge”
  431  is the licensed and appointed agent responsible for the
  432  supervision of all individuals within an insurance agency
  433  location, regardless of whether the agent in charge handles a
  434  specific transaction or deals with the general public in the
  435  solicitation or negotiation of insurance contracts or the
  436  collection or accounting of money.
  437         (f) An agent in charge of an insurance agency is
  438  accountable for the wrongful acts, misconduct, or violations of
  439  this code committed by the licensee or by any person under his
  440  or her supervision while acting on behalf of the agency.
  441  However, an agent in charge is not criminally liable for any act
  442  unless the agent in charge personally committed the act or knew
  443  or should have known of the act and of the facts constituting a
  444  violation of this code.
  445         Section 8. Effective January 1, 2015, paragraph (b) of
  446  subsection (1) and subsection (7) of section 626.112, Florida
  447  Statutes, are amended to read:
  448         626.112 License and appointment required; agents, customer
  449  representatives, adjusters, insurance agencies, service
  450  representatives, managing general agents.—
  451         (1)
  452         (b) Except as provided in subsection (6) or in applicable
  453  department rules, and in addition to other conduct described in
  454  this chapter with respect to particular types of agents, a
  455  license as an insurance agent, service representative, customer
  456  representative, or limited customer representative is required
  457  in order to engage in the solicitation of insurance. Effective
  458  October 1, 2014, limited customer representative licenses may
  459  not be issued. For purposes of this requirement, as applicable
  460  to any of the license types described in this section, the
  461  solicitation of insurance is the attempt to persuade any person
  462  to purchase an insurance product by:
  463         1. Describing the benefits or terms of insurance coverage,
  464  including premiums or rates of return;
  465         2. Distributing an invitation to contract to prospective
  466  purchasers;
  467         3. Making general or specific recommendations as to
  468  insurance products;
  469         4. Completing orders or applications for insurance
  470  products;
  471         5. Comparing insurance products, advising as to insurance
  472  matters, or interpreting policies or coverages; or
  473         6. Offering or attempting to negotiate on behalf of another
  474  person a viatical settlement contract as defined in s. 626.9911.
  476  However, an employee leasing company licensed under pursuant to
  477  chapter 468 which is seeking to enter into a contract with an
  478  employer that identifies products and services offered to
  479  employees may deliver proposals for the purchase of employee
  480  leasing services to prospective clients of the employee leasing
  481  company setting forth the terms and conditions of doing
  482  business; classify employees as permitted by s. 468.529; collect
  483  information from prospective clients and other sources as
  484  necessary to perform due diligence on the prospective client and
  485  to prepare a proposal for services; provide and receive
  486  enrollment forms, plans, and other documents; and discuss or
  487  explain in general terms the conditions, limitations, options,
  488  or exclusions of insurance benefit plans available to the client
  489  or employees of the employee leasing company were the client to
  490  contract with the employee leasing company. Any advertising
  491  materials or other documents describing specific insurance
  492  coverages must identify and be from a licensed insurer or its
  493  licensed agent or a licensed and appointed agent employed by the
  494  employee leasing company. The employee leasing company may not
  495  advise or inform the prospective business client or individual
  496  employees of specific coverage provisions, exclusions, or
  497  limitations of particular plans. As to clients for which the
  498  employee leasing company is providing services pursuant to s.
  499  468.525(4), the employee leasing company may engage in
  500  activities permitted by ss. 626.7315, 626.7845, and 626.8305,
  501  subject to the restrictions specified in those sections. If a
  502  prospective client requests more specific information concerning
  503  the insurance provided by the employee leasing company, the
  504  employee leasing company must refer the prospective business
  505  client to the insurer or its licensed agent or to a licensed and
  506  appointed agent employed by the employee leasing company.
  507         (7)(a) An Effective October 1, 2006, no individual, firm,
  508  partnership, corporation, association, or any other entity may
  509  not shall act in its own name or under a trade name, directly or
  510  indirectly, as an insurance agency, unless it possesses complies
  511  with s. 626.172 with respect to possessing an insurance agency
  512  license issued pursuant to s. 626.172 for each place of business
  513  at which it engages in any activity that which may be performed
  514  only by a licensed insurance agent. However, an insurance agency
  515  that is owned and operated by a single licensed agent conducting
  516  business in his or her individual name and not employing or
  517  otherwise using the services of or appointing other licensees is
  518  exempt from the agency licensing requirements of this
  519  subsection.
  520         (b) A branch place of business which is established by a
  521  licensed agency is considered a branch agency and is not
  522  required to be licensed if it transacts business under the same
  523  name and federal tax identification number as the licensed
  524  agency, has designated a licensed agent in charge of the
  525  location as required by s. 626.0428, and has submitted the
  526  address and telephone number of the location to the department
  527  for inclusion in the licensing record of the licensed agency
  528  within 30 days after insurance transactions begin at the
  529  location Each agency engaged in business in this state before
  530  January 1, 2003, which is wholly owned by insurance agents
  531  currently licensed and appointed under this chapter, each
  532  incorporated agency whose voting shares are traded on a
  533  securities exchange, each agency designated and subject to
  534  supervision and inspection as a branch office under the rules of
  535  the National Association of Securities Dealers, and each agency
  536  whose primary function is offering insurance as a service or
  537  member benefit to members of a nonprofit corporation may file an
  538  application for registration in lieu of licensure in accordance
  539  with s. 626.172(3). Each agency engaged in business before
  540  October 1, 2006, shall file an application for licensure or
  541  registration on or before October 1, 2006.
  542         (c)1. If an agency is required to be licensed but fails to
  543  file an application for licensure in accordance with this
  544  section, the department shall impose on the agency an
  545  administrative penalty in an amount of up to $10,000.
  546         2. If an agency is eligible for registration but fails to
  547  file an application for registration or an application for
  548  licensure in accordance with this section, the department shall
  549  impose on the agency an administrative penalty in an amount of
  550  up to $5,000.
  551         (d)(b)Effective October 1, 2015, the department must
  552  automatically convert the registration of an approved a
  553  registered insurance agency to shall, as a condition precedent
  554  to continuing business, obtain an insurance agency license if
  555  the department finds that, with respect to any majority owner,
  556  partner, manager, director, officer, or other person who manages
  557  or controls the agency, any person has:
  558         1. Been found guilty of, or has pleaded guilty or nolo
  559  contendere to, a felony in this state or any other state
  560  relating to the business of insurance or to an insurance agency,
  561  without regard to whether a judgment of conviction has been
  562  entered by the court having jurisdiction of the cases.
  563         2. Employed any individual in a managerial capacity or in a
  564  capacity dealing with the public who is under an order of
  565  revocation or suspension issued by the department. An insurance
  566  agency may request, on forms prescribed by the department,
  567  verification of any person’s license status. If a request is
  568  mailed within 5 working days after an employee is hired, and the
  569  employee’s license is currently suspended or revoked, the agency
  570  shall not be required to obtain a license, if the unlicensed
  571  person’s employment is immediately terminated.
  572         3. Operated the agency or permitted the agency to be
  573  operated in violation of s. 626.747.
  574         4. With such frequency as to have made the operation of the
  575  agency hazardous to the insurance-buying public or other
  576  persons:
  577         a. Solicited or handled controlled business. This
  578  subparagraph shall not prohibit the licensing of any lending or
  579  financing institution or creditor, with respect to insurance
  580  only, under credit life or disability insurance policies of
  581  borrowers from the institutions, which policies are subject to
  582  part IX of chapter 627.
  583         b. Misappropriated, converted, or unlawfully withheld
  584  moneys belonging to insurers, insureds, beneficiaries, or others
  585  and received in the conduct of business under the license.
  586         c. Unlawfully rebated, attempted to unlawfully rebate, or
  587  unlawfully divided or offered to divide commissions with
  588  another.
  589         d. Misrepresented any insurance policy or annuity contract,
  590  or used deception with regard to any policy or contract, done
  591  either in person or by any form of dissemination of information
  592  or advertising.
  593         e. Violated any provision of this code or any other law
  594  applicable to the business of insurance in the course of dealing
  595  under the license.
  596         f. Violated any lawful order or rule of the department.
  597         g. Failed or refused, upon demand, to pay over to any
  598  insurer he or she represents or has represented any money coming
  599  into his or her hands belonging to the insurer.
  600         h. Violated the provision against twisting as defined in s.
  601  626.9541(1)(l).
  602         i. In the conduct of business, engaged in unfair methods of
  603  competition or in unfair or deceptive acts or practices, as
  604  prohibited under part IX of this chapter.
  605         j. Willfully overinsured any property insurance risk.
  606         k. Engaged in fraudulent or dishonest practices in the
  607  conduct of business arising out of activities related to
  608  insurance or the insurance agency.
  609         l. Demonstrated lack of fitness or trustworthiness to
  610  engage in the business of insurance arising out of activities
  611  related to insurance or the insurance agency.
  612         m. Authorized or knowingly allowed individuals to transact
  613  insurance who were not then licensed as required by this code.
  614         5. Knowingly employed any person who within the preceding 3
  615  years has had his or her relationship with an agency terminated
  616  in accordance with paragraph (d).
  617         6. Willfully circumvented the requirements or prohibitions
  618  of this code.
  619         Section 9. Subsections (2), (3), and (4) of section
  620  626.172, Florida Statutes, are amended to read:
  621         626.172 Application for insurance agency license.—
  622         (2) An application for an insurance agency license must
  623  shall be signed by the owner or owners of the agency. If the
  624  agency is incorporated, the application must shall be signed by
  625  the president and secretary of the corporation. An insurance
  626  agency may permit a third party to complete, submit, and sign an
  627  application on the insurance agency’s behalf; however, the
  628  insurance agency is responsible for ensuring that the
  629  information on the application is true and correct and is
  630  accountable for any misstatements or misrepresentations. The
  631  application for an insurance agency license must shall include:
  632         (a) The name of each majority owner, partner, officer, and
  633  director of the insurance agency.
  634         (b) The residence address of each person required to be
  635  listed in the application under paragraph (a).
  636         (c) The name, principal business street address, and e-mail
  637  address of the insurance agency and the name, address, and e
  638  mail address of the agency’s registered agent or person or
  639  company authorized to accept service on behalf of the agency its
  640  principal business address.
  641         (d) The name, physical address, e-mail address, and
  642  telephone number location of each branch agency and the date
  643  that the branch location begins transacting insurance office and
  644  the name under which each agency office conducts or will conduct
  645  business.
  646         (e) The name of each agent to be in full-time charge of an
  647  agency office and specification of which office, including
  648  branch locations.
  649         (f) The fingerprints of each of the following:
  650         1. A sole proprietor;
  651         2. Each partner;
  652         3. Each owner of an unincorporated agency;
  653         4. Each owner who directs or participates in the management
  654  or control of an incorporated agency whose shares are not traded
  655  on a securities exchange;
  656         5. The president, senior vice presidents, treasurer,
  657  secretary, and directors of the agency; and
  658         6. Any other person who directs or participates in the
  659  management or control of the agency, whether through the
  660  ownership of voting securities, by contract, by ownership of
  661  agency bank accounts, or otherwise.
  663  Fingerprints must be taken by a law enforcement agency or other
  664  entity approved by the department and must be accompanied by the
  665  fingerprint processing fee specified in s. 624.501. Fingerprints
  666  must shall be processed in accordance with s. 624.34. However,
  667  fingerprints need not be filed for an any individual who is
  668  currently licensed and appointed under this chapter. This
  669  paragraph does not apply to corporations whose voting shares are
  670  traded on a securities exchange.
  671         (g) Such additional information as the department requires
  672  by rule to ascertain the trustworthiness and competence of
  673  persons required to be listed on the application and to
  674  ascertain that such persons meet the requirements of this code.
  675  However, the department may not require that credit or character
  676  reports be submitted for persons required to be listed on the
  677  application.
  678         (3)(h) Beginning October 1, 2005, The department must shall
  679  accept the uniform application for nonresident agency licensure.
  680  The department may adopt by rule revised versions of the uniform
  681  application.
  682         (3)The department shall issue a registration as an
  683  insurance agency to any agency that files a written application
  684  with the department and qualifies for registration. The
  685  application for registration shall require the agency to provide
  686  the same information required for an agency licensed under
  687  subsection (2), the agent identification number for each owner
  688  who is a licensed agent, proof that the agency qualifies for
  689  registration as provided in s. 626.112(7), and any other
  690  additional information that the department determines is
  691  necessary in order to demonstrate that the agency qualifies for
  692  registration. The application must be signed by the owner or
  693  owners of the agency. If the agency is incorporated, the
  694  application must be signed by the president and the secretary of
  695  the corporation. An agent who owns the agency need not file
  696  fingerprints with the department if the agent obtained a license
  697  under this chapter and the license is currently valid.
  698         (a) If an application for registration is denied, the
  699  agency must file an application for licensure no later than 30
  700  days after the date of the denial of registration.
  701         (b) A registered insurance agency must file an application
  702  for licensure no later than 30 days after the date that any
  703  person who is not a licensed and appointed agent in this state
  704  acquires any ownership interest in the agency. If an agency
  705  fails to file an application for licensure in compliance with
  706  this paragraph, the department shall impose an administrative
  707  penalty in an amount of up to $5,000 on the agency.
  708         (c) Sections 626.6115 and 626.6215 do not apply to agencies
  709  registered under this subsection.
  710         (4) The department must shall issue a license or
  711  registration to each agency upon approval of the application,
  712  and each agency location must shall display the license or
  713  registration prominently in a manner that makes it clearly
  714  visible to any customer or potential customer who enters the
  715  agency location.
  716         Section 10. Present subsection (6) of section 626.311,
  717  Florida Statutes, is redesignated as subsection (7), and a new
  718  subsection (6) is added to that section, to read:
  719         626.311 Scope of license.—
  720         (6) An agent who appoints his or her license as an
  721  unaffiliated insurance agent may not hold an appointment from an
  722  insurer for any license he or she holds; transact, solicit, or
  723  service an insurance contract on behalf of an insurer; interfere
  724  with commissions received or to be received by an insurer
  725  appointed insurance agent or an insurance agency contracted with
  726  or employing insurer-appointed insurance agents; or receive
  727  compensation or any other thing of value from an insurer, an
  728  insurer-appointed insurance agent, or an insurance agency
  729  contracted with or employing insurer-appointed insurance agents
  730  for any transaction or referral occurring after the date of
  731  appointment as an unaffiliated insurance agent. An unaffiliated
  732  insurance agent may continue to receive commissions on sales
  733  that occurred before the date of appointment as an unaffiliated
  734  insurance agent if the receipt of such commissions is disclosed
  735  when making recommendations or evaluating products for a client
  736  that involve products of the entity from which the commissions
  737  are received.
  738         Section 11. Paragraph (d) of subsection (1) of section
  739  626.321, Florida Statutes, is amended to read:
  740         626.321 Limited licenses.—
  741         (1) The department shall issue to a qualified applicant a
  742  license as agent authorized to transact a limited class of
  743  business in any of the following categories of limited lines
  744  insurance:
  745         (d) Motor vehicle rental insurance.—
  746         1. License covering only insurance of the risks set forth
  747  in this paragraph when offered, sold, or solicited with and
  748  incidental to the rental or lease of a motor vehicle and which
  749  applies only to the motor vehicle that is the subject of the
  750  lease or rental agreement and the occupants of the motor
  751  vehicle:
  752         a. Excess motor vehicle liability insurance providing
  753  coverage in excess of the standard liability limits provided by
  754  the lessor in the lessor’s lease to a person renting or leasing
  755  a motor vehicle from the licensee’s employer for liability
  756  arising in connection with the negligent operation of the leased
  757  or rented motor vehicle.
  758         b. Insurance covering the liability of the lessee to the
  759  lessor for damage to the leased or rented motor vehicle.
  760         c. Insurance covering the loss of or damage to baggage,
  761  personal effects, or travel documents of a person renting or
  762  leasing a motor vehicle.
  763         d. Insurance covering accidental personal injury or death
  764  of the lessee and any passenger who is riding or driving with
  765  the covered lessee in the leased or rented motor vehicle.
  766         2. Insurance under a motor vehicle rental insurance license
  767  may be issued only if the lease or rental agreement is for up to
  768  no more than 60 days, the lessee is not provided coverage for
  769  more than 60 consecutive days per lease period, and the lessee
  770  is given written notice that his or her personal insurance
  771  policy providing coverage on an owned motor vehicle may provide
  772  coverage of such risks and that the purchase of the insurance is
  773  not required in connection with the lease or rental of a motor
  774  vehicle. If the lease is extended beyond 60 days, the coverage
  775  may be extended one time only once for up to a period not to
  776  exceed an additional 60 days. Insurance may be provided to the
  777  lessee as an additional insured on a policy issued to the
  778  licensee’s employer.
  779         3. The license may be issued only to the full-time salaried
  780  employee of a licensed general lines agent or to a business
  781  entity that offers motor vehicles for rent or lease if insurance
  782  sales activities authorized by the license are in connection
  783  with and incidental to the rental or lease of a motor vehicle.
  784         a. A license issued to a business entity that offers motor
  785  vehicles for rent or lease encompasses each office, branch
  786  office, employee, authorized representative located at a
  787  designated branch, or place of business making use of the
  788  entity’s business name in order to offer, solicit, and sell
  789  insurance pursuant to this paragraph.
  790         b. The application for licensure must list the name,
  791  address, and phone number for each office, branch office, or
  792  place of business which that is to be covered by the license.
  793  The licensee shall notify the department of the name, address,
  794  and phone number of any new location that is to be covered by
  795  the license before the new office, branch office, or place of
  796  business engages in the sale of insurance pursuant to this
  797  paragraph. The licensee must notify the department within 30
  798  days after closing or terminating an office, branch office, or
  799  place of business. Upon receipt of the notice, the department
  800  shall delete the office, branch office, or place of business
  801  from the license.
  802         c. A licensed and appointed entity is directly responsible
  803  and accountable for all acts of the licensee’s employees.
  804         Section 12. Section 626.382, Florida Statutes, is amended
  805  to read:
  806         626.382 Continuation, expiration of license; insurance
  807  agencies.—The license of an any insurance agency shall be issued
  808  for a period of 3 years and shall continue in force until
  809  canceled, suspended, or revoked, or until it is otherwise
  810  terminated or becomes expired by operation of law. A license may
  811  be renewed by submitting a renewal request to the department on
  812  a form adopted by department rule.
  813         Section 13. Section 626.601, Florida Statutes, is amended
  814  to read:
  815         626.601 Improper conduct; investigation inquiry;
  816  fingerprinting.—
  817         (1) The department or office may, upon its own motion or
  818  upon a written complaint signed by an any interested person and
  819  filed with the department or office, inquire into the any
  820  alleged improper conduct of any licensed, approved, or certified
  821  licensee, insurance agency, agent, adjuster, service
  822  representative, managing general agent, customer representative,
  823  title insurance agent, title insurance agency, mediator, neutral
  824  evaluator, navigator, continuing education course provider,
  825  instructor, school official, or monitor group under this code.
  826  The department or office may thereafter initiate an
  827  investigation of any such individual or entity licensee if it
  828  has reasonable cause to believe that the individual or entity
  829  licensee has violated any provision of the insurance code.
  830  During the course of its investigation, the department or office
  831  shall contact the individual or entity licensee being
  832  investigated unless it determines that contacting such
  833  individual or entity person could jeopardize the successful
  834  completion of the investigation or cause injury to the public.
  835         (2) In the investigation by the department or office of the
  836  alleged misconduct, the individual or entity licensee shall, if
  837  whenever so required by the department or office, open the
  838  individual’s or entity’s cause his or her books and records to
  839  be open for inspection for the purpose of such investigation
  840  inquiries.
  841         (3) The Complaints against an individual or entity any
  842  licensee may be informally alleged and are not required to
  843  include need not be in any such language as is necessary to
  844  charge a crime on an indictment or information.
  845         (4) The expense for any hearings or investigations
  846  conducted pursuant to this section under this law, as well as
  847  the fees and mileage of witnesses, may be paid out of the
  848  appropriate fund.
  849         (5) If the department or office, after investigation, has
  850  reason to believe that an individual a licensee may have been
  851  found guilty of or pleaded guilty or nolo contendere to a felony
  852  or a crime related to the business of insurance in this or any
  853  other state or jurisdiction, the department or office may
  854  require the individual licensee to file with the department or
  855  office a complete set of his or her fingerprints, which shall be
  856  accompanied by the fingerprint processing fee set forth in s.
  857  624.501. The fingerprints shall be taken by an authorized law
  858  enforcement agency or other department-approved entity.
  859         (6) The complaint and any information obtained pursuant to
  860  the investigation by the department or office are confidential
  861  and are exempt from the provisions of s. 119.07, unless the
  862  department or office files a formal administrative complaint,
  863  emergency order, or consent order against the individual or
  864  entity licensee. Nothing in This subsection does not shall be
  865  construed to prevent the department or office from disclosing
  866  the complaint or such information as it deems necessary to
  867  conduct the investigation, to update the complainant as to the
  868  status and outcome of the complaint, or to share such
  869  information with any law enforcement agency or other regulatory
  870  body.
  871         Section 14. Effective January 1, 2015, section 626.747,
  872  Florida Statutes, is repealed.
  873         Section 15. Effective January 1, 2015, subsection (1) of
  874  section 626.8411, Florida Statutes, is amended to read:
  875         626.8411 Application of Florida Insurance Code provisions
  876  to title insurance agents or agencies.—
  877         (1) The following provisions of part II applicable to
  878  general lines agents or agencies also apply to title insurance
  879  agents or agencies:
  880         (a) Section 626.734, relating to liability of certain
  881  agents.
  882         (b) Section 626.0428(4)(a) and (b) 626.747, relating to
  883  branch agencies.
  884         (c) Section 626.749, relating to place of business in
  885  residence.
  886         (d) Section 626.753, relating to sharing of commissions.
  887         (e) Section 626.754, relating to rights of agent following
  888  termination of appointment.
  889         Section 16. Paragraph (c) of subsection (2) and subsection
  890  (3) of section 626.8805, Florida Statutes, are amended to read:
  891         626.8805 Certificate of authority to act as administrator.—
  892         (2) The administrator shall file with the office an
  893  application for a certificate of authority upon a form to be
  894  adopted by the commission and furnished by the office, which
  895  application shall include or have attached the following
  896  information and documents:
  897         (c) The names, addresses, official positions, and
  898  professional qualifications of the individuals employed or
  899  retained by the administrator who are responsible for the
  900  conduct of the affairs of the administrator, including all
  901  members of the board of directors, board of trustees, executive
  902  committee, or other governing board or committee, and the
  903  principal officers in the case of a corporation or, the partners
  904  or members in the case of a partnership or association, and any
  905  other person who exercises control or influence over the affairs
  906  of the administrator.
  907         (3) The applicant shall make available for inspection by
  908  the office copies of all contracts relating to services provided
  909  by the administrator to with insurers or other persons using
  910  utilizing the services of the administrator.
  911         Section 17. Subsections (1) and (3) of section 626.8817,
  912  Florida Statutes, are amended to read:
  913         626.8817 Responsibilities of insurance company with respect
  914  to administration of coverage insured.—
  915         (1) If an insurer uses the services of an administrator,
  916  the insurer is responsible for determining the benefits, premium
  917  rates, underwriting criteria, and claims payment procedures
  918  applicable to the coverage and for securing reinsurance, if any.
  919  The rules pertaining to these matters shall be provided, in
  920  writing, by the insurer or its designee to the administrator.
  921  The responsibilities of the administrator as to any of these
  922  matters shall be set forth in a the written agreement binding
  923  upon between the administrator and the insurer.
  924         (3) If In cases in which an administrator administers
  925  benefits for more than 100 certificateholders on behalf of an
  926  insurer, the insurer shall, at least semiannually, conduct a
  927  review of the operations of the administrator. At least one such
  928  review must be an onsite audit of the operations of the
  929  administrator. The insurer may contract with a qualified third
  930  party to conduct such review.
  931         Section 18. Subsections (1) and (4) of section 626.882,
  932  Florida Statutes, are amended to read:
  933         626.882 Agreement between administrator and insurer;
  934  required provisions; maintenance of records.—
  935         (1) A No person may not act as an administrator without a
  936  written agreement, as required under s. 626.8817, which
  937  specifies the rights, duties, and obligations of the between
  938  such person as administrator and an insurer.
  939         (4) If a policy is issued to a trustee or trustees, a copy
  940  of the trust agreement and any amendments to that agreement
  941  shall be furnished to the insurer or its designee by the
  942  administrator and shall be retained as part of the official
  943  records of both the administrator and the insurer for the
  944  duration of the policy and for 5 years thereafter.
  945         Section 19. Subsections (3), (4), and (5) of section
  946  626.883, Florida Statutes, are amended to read:
  947         626.883 Administrator as intermediary; collections held in
  948  fiduciary capacity; establishment of account; disbursement;
  949  payments on behalf of insurer.—
  950         (3) If charges or premiums deposited in a fiduciary account
  951  have been collected on behalf of or for more than one insurer,
  952  the administrator shall keep records clearly recording the
  953  deposits in and withdrawals from such account on behalf of or
  954  for each insurer. The administrator shall, upon request of an
  955  insurer or its designee, furnish such insurer or designee with
  956  copies of records pertaining to deposits and withdrawals on
  957  behalf of or for such insurer.
  958         (4) The administrator may not pay any claim by withdrawals
  959  from a fiduciary account. Withdrawals from such account shall be
  960  made as provided in the written agreement required under ss.
  961  626.8817 and 626.882 between the administrator and the insurer
  962  for any of the following:
  963         (a) Remittance to an insurer entitled to such remittance.
  964         (b) Deposit in an account maintained in the name of such
  965  insurer.
  966         (c) Transfer to and deposit in a claims-paying account,
  967  with claims to be paid as provided by such insurer.
  968         (d) Payment to a group policyholder for remittance to the
  969  insurer entitled to such remittance.
  970         (e) Payment to the administrator of the commission, fees,
  971  or charges of the administrator.
  972         (f) Remittance of return premium to the person or persons
  973  entitled to such return premium.
  974         (5) All claims paid by the administrator from funds
  975  collected on behalf of the insurer shall be paid only on drafts
  976  of, and as authorized by, such insurer or its designee.
  977         Section 20. Subsection (3) of section 626.884, Florida
  978  Statutes, is amended to read:
  979         626.884 Maintenance of records by administrator; access;
  980  confidentiality.—
  981         (3) The insurer shall retain the right of continuing access
  982  to books and records maintained by the administrator sufficient
  983  to permit the insurer to fulfill all of its contractual
  984  obligations to insured persons, subject to any restrictions in
  985  the written agreement pertaining to between the insurer and the
  986  administrator on the proprietary rights of the parties in such
  987  books and records.
  988         Section 21. Subsections (1) and (2) of section 626.89,
  989  Florida Statutes, are amended to read:
  990         626.89 Annual financial statement and filing fee; notice of
  991  change of ownership.—
  992         (1) Each authorized administrator shall file with the
  993  office a full and true statement of its financial condition,
  994  transactions, and affairs. The statement shall be filed annually
  995  on or before April March 1 or within such extension of time
  996  therefor as the office for good cause may have granted and shall
  997  be for the preceding calendar year or for the preceding fiscal
  998  year if the administrator’s accounting is on a fiscal-year
  999  basis. The statement shall be in such form and contain such
 1000  matters as the commission prescribes and shall be verified by at
 1001  least two officers of the such administrator. An administrator
 1002  whose sole stockholder is an association representing health
 1003  care providers which is not an affiliate of an insurer, an
 1004  administrator of a pooled governmental self-insurance program,
 1005  or an administrator that is a university may submit the
 1006  preceding fiscal year’s statement within 2 months after its
 1007  fiscal year end.
 1008         (2) Each authorized administrator shall also file an
 1009  audited financial statement performed by an independent
 1010  certified public accountant. The audited financial statement
 1011  shall be filed with the office on or before July June 1 for the
 1012  preceding calendar or fiscal year ending December 31. An
 1013  administrator whose sole stockholder is an association
 1014  representing health care providers which is not an affiliate of
 1015  an insurer, an administrator of a pooled governmental self
 1016  insurance program, or an administrator that is a university may
 1017  submit the preceding fiscal year’s audited financial statement
 1018  within 5 months after the end of its fiscal year. An audited
 1019  financial statement prepared on a consolidated basis must
 1020  include a columnar consolidating or combining worksheet that
 1021  must be filed with the statement and must comply with the
 1022  following:
 1023         (a) Amounts shown on the consolidated audited financial
 1024  statement must be shown on the worksheet;
 1025         (b) Amounts for each entity must be stated separately; and
 1026         (c) Explanations of consolidating and eliminating entries
 1027  must be included.
 1028         Section 22. Section 626.931, Florida Statutes, is amended
 1029  to read:
 1030         626.931 Agent affidavit and Insurer reporting
 1031  requirements.—
 1032         (1) Each surplus lines agent shall on or before the 45th
 1033  day following each calendar quarter file with the Florida
 1034  Surplus Lines Service Office an affidavit, on forms as
 1035  prescribed and furnished by the Florida Surplus Lines Service
 1036  Office, stating that all surplus lines insurance transacted by
 1037  him or her during such calendar quarter has been submitted to
 1038  the Florida Surplus Lines Service Office as required.
 1039         (2) The affidavit of the surplus lines agent shall include
 1040  efforts made to place coverages with authorized insurers and the
 1041  results thereof.
 1042         (1)(3) Each foreign insurer accepting premiums shall, on or
 1043  before the end of the month following each calendar quarter,
 1044  file with the Florida Surplus Lines Service Office a verified
 1045  report of all surplus lines insurance transacted by such insurer
 1046  for insurance risks located in this state during the such
 1047  calendar quarter.
 1048         (2)(4) Each alien insurer accepting premiums shall, on or
 1049  before June 30 of each year, file with the Florida Surplus Lines
 1050  Service Office a verified report of all surplus lines insurance
 1051  transacted by such insurer for insurance risks located in this
 1052  state during the preceding calendar year.
 1053         (3)(5) The department may waive the filing requirements
 1054  described in subsections (1) (3) and (2) (4).
 1055         (4)(6) Each insurer’s report and supporting information
 1056  shall be in a computer-readable format as determined by the
 1057  Florida Surplus Lines Service Office or shall be submitted on
 1058  forms prescribed by the Florida Surplus Lines Service Office and
 1059  shall show for each applicable agent:
 1060         (a) A listing of all policies, certificates, cover notes,
 1061  or other forms of confirmation of insurance coverage or any
 1062  substitutions thereof or endorsements thereto and the
 1063  identifying number; and
 1064         (b) Any additional information required by the department
 1065  or Florida Surplus Lines Service Office.
 1066         Section 23. Paragraph (a) of subsection (2) of section
 1067  626.932, Florida Statutes, is amended to read:
 1068         626.932 Surplus lines tax.—
 1069         (2)(a) The surplus lines agent shall make payable to the
 1070  department the tax related to each calendar quarter’s business
 1071  as reported to the Florida Surplus Lines Service Office, and
 1072  remit the tax to the Florida Surplus Lines Service Office on or
 1073  before the 45th day after each calendar quarter at the same time
 1074  as provided for the filing of the quarterly affidavit, under s.
 1075  626.931. The Florida Surplus Lines Service Office shall forward
 1076  to the department the taxes and any interest collected pursuant
 1077  to paragraph (b), within 10 days after of receipt.
 1078         Section 24. Subsection (1) of section 626.935, Florida
 1079  Statutes, is amended to read:
 1080         626.935 Suspension, revocation, or refusal of surplus lines
 1081  agent’s license.—
 1082         (1) The department shall deny an application for, suspend,
 1083  revoke, or refuse to renew the appointment of a surplus lines
 1084  agent and all other licenses and appointments held by the
 1085  licensee under this code, on any of the following grounds:
 1086         (a) Removal of the licensee’s office from the licensee’s
 1087  state of residence.
 1088         (b) Removal of the accounts and records of his or her
 1089  surplus lines business from this state or the licensee’s state
 1090  of residence during the period when such accounts and records
 1091  are required to be maintained under s. 626.930.
 1092         (c) Closure of the licensee’s office for more than 30
 1093  consecutive days.
 1094         (d) Failure to make and file his or her affidavit or
 1095  reports when due as required by s. 626.931.
 1096         (d)(e) Failure to pay the tax or service fee on surplus
 1097  lines premiums, as provided in the Surplus Lines Law.
 1098         (e)(f) Suspension, revocation, or refusal to renew or
 1099  continue the license or appointment as a general lines agent,
 1100  service representative, or managing general agent.
 1101         (f)(g) Lack of qualifications as for an original surplus
 1102  lines agent’s license.
 1103         (g)(h) Violation of this Surplus Lines Law.
 1104         (h)(i)For Any other applicable cause for which the license
 1105  of a general lines agent could be suspended, revoked, or refused
 1106  under s. 626.611 or s. 626.621.
 1107         Section 25. Subsection (1) of section 626.936, Florida
 1108  Statutes, is amended to read:
 1109         626.936 Failure to file reports or pay tax or service fee;
 1110  administrative penalty.—
 1111         (1) A Any licensed surplus lines agent who neglects to file
 1112  a report or an affidavit in the form and within the time
 1113  required under or provided for in the Surplus Lines Law may be
 1114  fined up to $50 per day for each day the neglect continues,
 1115  beginning the day after the report or affidavit was due until
 1116  the date the report or affidavit is received. All sums collected
 1117  under this section shall be deposited into the Insurance
 1118  Regulatory Trust Fund.
 1119         Section 26. Paragraph (b) of subsection (2) of section
 1120  627.062, Florida Statutes, is amended to read:
 1121         627.062 Rate standards.—
 1122         (2) As to all such classes of insurance:
 1123         (b) Upon receiving a rate filing, the office shall review
 1124  the filing to determine whether the if a rate is excessive,
 1125  inadequate, or unfairly discriminatory. In making that
 1126  determination, the office shall, in accordance with generally
 1127  accepted and reasonable actuarial techniques, consider the
 1128  following factors:
 1129         1. Past and prospective loss experience within and without
 1130  this state.
 1131         2. Past and prospective expenses.
 1132         3. The degree of competition among insurers for the risk
 1133  insured.
 1134         4. Investment income reasonably expected by the insurer,
 1135  consistent with the insurer’s investment practices, from
 1136  investable premiums anticipated in the filing, plus any other
 1137  expected income from currently invested assets representing the
 1138  amount expected on unearned premium reserves and loss reserves.
 1139  The commission may adopt rules using reasonable techniques of
 1140  actuarial science and economics to specify the manner in which
 1141  insurers calculate investment income attributable to classes of
 1142  insurance written in this state and the manner in which
 1143  investment income is used to calculate insurance rates. Such
 1144  manner must contemplate allowances for an underwriting profit
 1145  factor and full consideration of investment income that which
 1146  produce a reasonable rate of return; however, investment income
 1147  from invested surplus may not be considered.
 1148         5. The reasonableness of the judgment reflected in the
 1149  filing.
 1150         6. Dividends, savings, or unabsorbed premium deposits
 1151  allowed or returned to Florida policyholders, members, or
 1152  subscribers.
 1153         7. The adequacy of loss reserves.
 1154         8. The cost of reinsurance. The office may not disapprove a
 1155  rate as excessive solely due to the insurer’s insurer having
 1156  obtained catastrophic reinsurance to cover the insurer’s
 1157  estimated 250-year probable maximum loss or any lower level of
 1158  loss.
 1159         9. Trend factors, including trends in actual losses per
 1160  insured unit for the insurer making the filing.
 1161         10. Conflagration and catastrophe hazards, if applicable.
 1162         11. Projected hurricane losses, if applicable, which must
 1163  be estimated using a model or method, or a straight average of
 1164  model results or output ranges, which are independently found to
 1165  be acceptable or reliable by the Florida Commission on Hurricane
 1166  Loss Projection Methodology, and as further provided in s.
 1167  627.0628.
 1168         12. A reasonable margin for underwriting profit and
 1169  contingencies.
 1170         13. The cost of medical services, if applicable.
 1171         14. Other relevant factors that affect the frequency or
 1172  severity of claims or expenses.
 1173         Section 27. Paragraph (d) of subsection (3) of section
 1174  627.0628, Florida Statutes, is amended to read:
 1175         627.0628 Florida Commission on Hurricane Loss Projection
 1176  Methodology; public records exemption; public meetings
 1177  exemption.—
 1179         (d) With respect to a rate filing under s. 627.062, an
 1180  insurer shall employ and may not modify or adjust actuarial
 1181  methods, principles, standards, models, or output ranges found
 1182  by the commission to be accurate or reliable in determining
 1183  hurricane loss factors for use in a rate filing under s.
 1184  627.062. An insurer shall employ and may not modify or adjust
 1185  models found by the commission to be accurate or reliable in
 1186  determining probable maximum loss levels pursuant to paragraph
 1187  (b) with respect to a rate filing under s. 627.062 made more
 1188  than 180 60 days after the commission has made such findings.
 1189  This paragraph does not prohibit an insurer from using a
 1190  straight average of model results or output ranges or using
 1191  straight averages for the purposes of a rate filing under s.
 1192  627.062.
 1193         Section 28. Subsection (8) of section 627.0651, Florida
 1194  Statutes, is amended to read:
 1195         627.0651 Making and use of rates for motor vehicle
 1196  insurance.—
 1197         (8) Rates are not unfairly discriminatory if averaged
 1198  broadly among members of a group; nor are rates unfairly
 1199  discriminatory even though they are lower than rates for
 1200  nonmembers of the group. However, such rates are unfairly
 1201  discriminatory if they are not actuarially measurable and
 1202  credible and sufficiently related to actual or expected loss and
 1203  expense experience of the group so as to ensure assure that
 1204  nonmembers of the group are not unfairly discriminated against.
 1205  New programs or changes to existing programs which result in at
 1206  least Use of a single United States Postal Service zip code as a
 1207  rating territory shall be deemed submitted pursuant to paragraph
 1208  (1)(a). A rating territory must incorporate sufficient actual or
 1209  expected loss and loss adjustment expense experience so as to be
 1210  actuarially measurable and credible and not unfairly
 1211  discriminatory.
 1212         Section 29. Present subsections (2) through (4) of section
 1213  627.072, Florida Statutes, are redesignated as subsections (3)
 1214  through (5), respectively, and a new subsection (2) is added to
 1215  that section, to read:
 1216         627.072 Making and use of rates.—
 1217         (2) A retrospective rating plan may contain a provision
 1218  that allows for the negotiation of premium between the employer
 1219  and the insurer for employers having exposure in more than one
 1220  state, an estimated annual standard premium in this state of
 1221  $175,000, and an estimated annual countrywide standard premium
 1222  of $1 million or more for workers’ compensation.
 1223         Section 30. Subsection (2) of section 627.281, Florida
 1224  Statutes, is amended to read:
 1225         627.281 Appeal from rating organization; workers’
 1226  compensation and employer’s liability insurance filings.—
 1227         (2) If the such appeal is based on upon the failure of the
 1228  rating organization to make a filing on behalf of a such member
 1229  or subscriber which is based on a system of expense provisions
 1230  which differs, in accordance with the right granted in s.
 1231  627.072(3) 627.072(2), differs from the system of expense
 1232  provisions included in a filing made by the rating organization,
 1233  the office shall, if it grants the appeal, order the rating
 1234  organization to make the requested filing for use by the
 1235  appellant. In deciding such appeal, the office shall apply the
 1236  applicable standards set forth in ss. 627.062 and 627.072.
 1237         Section 31. Paragraph (h) of subsection (5) of section
 1238  627.311, Florida Statutes, is amended to read:
 1239         627.311 Joint underwriters and joint reinsurers; public
 1240  records and public meetings exemptions.—
 1241         (5)
 1242         (h) Any premium or assessments collected by the plan in
 1243  excess of the amount necessary to fund projected ultimate
 1244  incurred losses and expenses of the plan and not paid to
 1245  insureds of the plan in conjunction with loss prevention or
 1246  dividend programs shall be retained by the plan for future use.
 1247  Any state funds received by the plan in excess of the amount
 1248  necessary to fund deficits in subplan D or any tier shall be
 1249  returned to the state. Any dividend or premium refund that
 1250  cannot be paid to a former insured of the plan because the
 1251  former insured cannot be reasonably located shall be retained by
 1252  the plan for future use.
 1253         Section 32. Subsection (9) of section 627.3518, Florida
 1254  Statutes, is amended to read:
 1255         627.3518 Citizens Property Insurance Corporation
 1256  policyholder eligibility clearinghouse program.—The purpose of
 1257  this section is to provide a framework for the corporation to
 1258  implement a clearinghouse program by January 1, 2014.
 1259         (9) The 45-day notice of nonrenewal requirement set forth
 1260  in s. 627.4133(2)(b)4. 627.4133(2)(b)4.b. applies when a policy
 1261  is nonrenewed by the corporation because the risk has received
 1262  an offer of coverage pursuant to this section which renders the
 1263  risk ineligible for coverage by the corporation.
 1264         Section 33. Section 627.3519, Florida Statutes, is
 1265  repealed.
 1266         Section 34. Section 627.409, Florida Statutes, is amended
 1267  to read:
 1268         627.409 Representations in applications; warranties.—
 1269         (1) Any statement or description made by or on behalf of an
 1270  insured or annuitant in an application for an insurance policy
 1271  or annuity contract, or in negotiations for a policy or
 1272  contract, is a representation and is not a warranty. Except as
 1273  provided in subsection (3), a misrepresentation, omission,
 1274  concealment of fact, or incorrect statement may prevent recovery
 1275  under the contract or policy only if any of the following apply:
 1276         (a) The misrepresentation, omission, concealment, or
 1277  statement is fraudulent or is material either to the acceptance
 1278  of the risk or to the hazard assumed by the insurer.
 1279         (b) If the true facts had been known to the insurer
 1280  pursuant to a policy requirement or other requirement, the
 1281  insurer in good faith would not have issued the policy or
 1282  contract, would not have issued it at the same premium rate,
 1283  would not have issued a policy or contract in as large an
 1284  amount, or would not have provided coverage with respect to the
 1285  hazard resulting in the loss.
 1286         (2) A breach or violation by the insured of a any warranty,
 1287  condition, or provision of a any wet marine or transportation
 1288  insurance policy, contract of insurance, endorsement, or
 1289  application therefor does not void the policy or contract, or
 1290  constitute a defense to a loss thereon, unless such breach or
 1291  violation increased the hazard by any means within the control
 1292  of the insured.
 1293         (3) For residential property insurance, if a policy or
 1294  contract is in effect for more than 90 days, a claim filed by
 1295  the insured may not be denied based on credit information
 1296  available in public records.
 1297         Section 35. Paragraph (b) of subsection (2) of section
 1298  627.4133, Florida Statutes, is amended to read:
 1299         627.4133 Notice of cancellation, nonrenewal, or renewal
 1300  premium.—
 1301         (2) With respect to a any personal lines or commercial
 1302  residential property insurance policy, including a, but not
 1303  limited to, any homeowner’s, mobile home owner’s, farmowner’s,
 1304  condominium association, condominium unit owner’s, apartment
 1305  building, or other policy covering a residential structure or
 1306  its contents:
 1307         (b) The insurer shall give the first-named insured written
 1308  notice of nonrenewal, cancellation, or termination at least 120
 1309  100 days before the effective date of the nonrenewal,
 1310  cancellation, or termination. However, the insurer shall give at
 1311  least 100 days’ written notice, or written notice by June 1,
 1312  whichever is earlier, for any nonrenewal, cancellation, or
 1313  termination that would be effective between June 1 and November
 1314  30. The notice must include the reason or reasons for the
 1315  nonrenewal, cancellation, or termination, except that:
 1316         1. The insurer shall give the first-named insured written
 1317  notice of nonrenewal, cancellation, or termination at least 120
 1318  days prior to the effective date of the nonrenewal,
 1319  cancellation, or termination for a first-named insured whose
 1320  residential structure has been insured by that insurer or an
 1321  affiliated insurer for at least a 5-year period immediately
 1322  prior to the date of the written notice.
 1323         1.2. If cancellation is for nonpayment of premium, at least
 1324  10 days’ written notice of cancellation accompanied by the
 1325  reason therefor must be given. As used in this subparagraph, the
 1326  term “nonpayment of premium” means failure of the named insured
 1327  to discharge when due her or his obligations for paying the
 1328  premium in connection with the payment of premiums on a policy
 1329  or an any installment of such premium, whether the premium is
 1330  payable directly to the insurer or its agent or indirectly under
 1331  any premium finance plan or extension of credit, or failure to
 1332  maintain membership in an organization if such membership is a
 1333  condition precedent to insurance coverage. The term also means
 1334  the failure of a financial institution to honor an insurance
 1335  applicant’s check after delivery to a licensed agent for payment
 1336  of a premium, even if the agent has previously delivered or
 1337  transferred the premium to the insurer. If a dishonored check
 1338  represents the initial premium payment, the contract and all
 1339  contractual obligations are void ab initio unless the nonpayment
 1340  is cured within the earlier of 5 days after actual notice by
 1341  certified mail is received by the applicant or 15 days after
 1342  notice is sent to the applicant by certified mail or registered
 1343  mail., and If the contract is void, any premium received by the
 1344  insurer from a third party must be refunded to that party in
 1345  full.
 1346         2.3. If such cancellation or termination occurs during the
 1347  first 90 days the insurance is in force and the insurance is
 1348  canceled or terminated for reasons other than nonpayment of
 1349  premium, at least 20 days’ written notice of cancellation or
 1350  termination accompanied by the reason therefor must be given
 1351  unless there has been a material misstatement or
 1352  misrepresentation or failure to comply with the underwriting
 1353  requirements established by the insurer.
 1354         3. After the policy has been in effect for 90 days, the
 1355  insurer may not cancel the policy unless there has been a
 1356  material misstatement, a nonpayment of premium, a failure to
 1357  comply with underwriting requirements established by the insurer
 1358  within 90 days after the date of effectuation of coverage, or a
 1359  substantial change in the risk covered by the policy or the
 1360  cancellation is for all insureds under such policies for a class
 1361  of insureds. This subparagraph does not apply to individually
 1362  rated risks having a policy term of less than 90 days.
 1363         4. After a policy or contract has been in effect for 90
 1364  days, the insurer may not cancel or terminate the policy or
 1365  contract based on credit information available in public
 1366  records. The requirement for providing written notice by June 1
 1367  of any nonrenewal that would be effective between June 1 and
 1368  November 30 does not apply to the following situations, but the
 1369  insurer remains subject to the requirement to provide such
 1370  notice at least 100 days before the effective date of
 1371  nonrenewal:
 1372         a. A policy that is nonrenewed due to a revision in the
 1373  coverage for sinkhole losses and catastrophic ground cover
 1374  collapse pursuant to s. 627.706.
 1375         5.b. A policy that is nonrenewed by Citizens Property
 1376  Insurance Corporation, pursuant to s. 627.351(6), for a policy
 1377  that has been assumed by an authorized insurer offering
 1378  replacement coverage to the policyholder is exempt from the
 1379  notice requirements of paragraph (a) and this paragraph. In such
 1380  cases, the corporation must give the named insured written
 1381  notice of nonrenewal at least 45 days before the effective date
 1382  of the nonrenewal.
 1384  After the policy has been in effect for 90 days, the policy may
 1385  not be canceled by the insurer unless there has been a material
 1386  misstatement, a nonpayment of premium, a failure to comply with
 1387  underwriting requirements established by the insurer within 90
 1388  days after the date of effectuation of coverage, or a
 1389  substantial change in the risk covered by the policy or if the
 1390  cancellation is for all insureds under such policies for a given
 1391  class of insureds. This paragraph does not apply to individually
 1392  rated risks having a policy term of less than 90 days.
 1393         6.5. Notwithstanding any other provision of law, an insurer
 1394  may cancel or nonrenew a property insurance policy after at
 1395  least 45 days’ notice if the office finds that the early
 1396  cancellation of some or all of the insurer’s policies is
 1397  necessary to protect the best interests of the public or
 1398  policyholders and the office approves the insurer’s plan for
 1399  early cancellation or nonrenewal of some or all of its policies.
 1400  The office may base such finding upon the financial condition of
 1401  the insurer, lack of adequate reinsurance coverage for hurricane
 1402  risk, or other relevant factors. The office may condition its
 1403  finding on the consent of the insurer to be placed under
 1404  administrative supervision pursuant to s. 624.81 or to the
 1405  appointment of a receiver under chapter 631.
 1406         7.6. A policy covering both a home and a motor vehicle may
 1407  be nonrenewed for any reason applicable to either the property
 1408  or motor vehicle insurance after providing 90 days’ notice.
 1409         Section 36. Subsection (1) of section 627.4137, Florida
 1410  Statutes, is amended to read:
 1411         627.4137 Disclosure of certain information required.—
 1412         (1) Each insurer that provides which does or may provide
 1413  liability insurance coverage to pay all or a portion of a any
 1414  claim that which might be made shall provide, within 30 days
 1415  after of the written request of the claimant, provide a
 1416  statement, under oath, of a corporate officer or the insurer’s
 1417  claims manager, or superintendent, or licensed company adjuster
 1418  setting forth the following information with regard to each
 1419  known policy of insurance, including excess or umbrella
 1420  insurance:
 1421         (a) The name of the insurer.
 1422         (b) The name of each insured.
 1423         (c) The limits of the liability coverage.
 1424         (d) A statement of any policy or coverage defense that the
 1425  which such insurer reasonably believes is available to the such
 1426  insurer at the time of filing such statement.
 1427         (e) A copy of the policy.
 1429  In addition, The insured, or her or his insurance agent, upon
 1430  written request of the claimant or the claimant’s attorney,
 1431  shall also disclose the name and coverage of each known insurer
 1432  to the claimant and shall forward the such request for
 1433  information as required by this subsection to all affected
 1434  insurers. The insurer shall then supply the required information
 1435  required in this subsection to the claimant within 30 days after
 1436  of receipt of such request.
 1437         Section 37. Subsection (1) of section 627.421, Florida
 1438  Statutes, is amended to read:
 1439         627.421 Delivery of policy.—
 1440         (1) Subject to the insurer’s requirement as to payment of
 1441  premium, every policy shall be mailed, delivered, or
 1442  electronically transmitted to the insured or to the person
 1443  entitled thereto within not later than 60 days after the
 1444  effectuation of coverage. Notwithstanding any other provision of
 1445  law, an insurer may allow a policyholder of personal lines
 1446  insurance to affirmatively elect delivery of the policy
 1447  documents, including policies, endorsements, notices, or other
 1448  documents, by electronic means in lieu of delivery by mail.
 1449  Electronic transmission of a policy for commercial risks,
 1450  including, but not limited to, workers’ compensation and
 1451  employers’ liability, commercial automobile liability,
 1452  commercial automobile physical damage, commercial lines
 1453  residential property, commercial nonresidential property, farm
 1454  owners’ insurance, and the types of commercial lines risks set
 1455  forth in s. 627.062(3)(d), constitute shall constitute delivery
 1456  to the insured or to the person entitled to delivery, unless the
 1457  insured or the person entitled to delivery communicates to the
 1458  insurer in writing or electronically that he or she does not
 1459  agree to delivery by electronic means. Electronic transmission
 1460  must shall include a notice to the insured or to the person
 1461  entitled to delivery of a policy of his or her right to receive
 1462  the policy via United States mail rather than via electronic
 1463  transmission. A paper copy of the policy shall be provided to
 1464  the insured or to the person entitled to delivery at his or her
 1465  request.
 1466         Section 38. Subsection (2) of section 627.43141, Florida
 1467  Statutes, is amended to read:
 1468         627.43141 Notice of change in policy terms.—
 1469         (2) A renewal policy may contain a change in policy terms.
 1470  If a renewal policy contains does contain such change, the
 1471  insurer must give the named insured written notice of the
 1472  change, which may must be enclosed along with the written notice
 1473  of renewal premium required by ss. 627.4133 and 627.728 or be
 1474  sent in a separate notice that complies with the nonrenewal
 1475  mailing time requirement for that particular line of business.
 1476  The insurer must also provide a sample copy of the notice to the
 1477  insured’s insurance agent before or at the same time that notice
 1478  is given to the insured. Such notice shall be entitled “Notice
 1479  of Change in Policy Terms.”
 1480         Section 39. Section 627.4553, Florida Statutes, is created
 1481  to read:
 1482         627.4553 Recommendations to surrender.—If an insurance
 1483  agent recommends the surrender of an annuity or life insurance
 1484  policy containing a cash value and is not recommending that the
 1485  proceeds from the surrender be used to fund or purchase another
 1486  annuity or life insurance policy, before execution of the
 1487  surrender, the insurance agent, or the insurance company if no
 1488  agent is involved, shall provide, on a form adopted by rule by
 1489  the department, information concerning the annuity or policy to
 1490  be surrendered, including the amount of any surrender charge,
 1491  the loss of any minimum interest rate guarantees, the amount of
 1492  any tax consequences resulting from the surrender, the amount of
 1493  any forfeited death benefit, and the value of any other
 1494  investment performance guarantees being forfeited as a result of
 1495  the surrender. This section also applies to a person performing
 1496  insurance agent activities pursuant to an exemption from
 1497  licensure under this part.
 1498         Section 40. Paragraph (b) of subsection (4) of section
 1499  627.7015, Florida Statutes, is amended to read:
 1500         627.7015 Alternative procedure for resolution of disputed
 1501  property insurance claims.—
 1502         (4) The department shall adopt by rule a property insurance
 1503  mediation program to be administered by the department or its
 1504  designee. The department may also adopt special rules which are
 1505  applicable in cases of an emergency within the state. The rules
 1506  shall be modeled after practices and procedures set forth in
 1507  mediation rules of procedure adopted by the Supreme Court. The
 1508  rules must shall provide for:
 1509         (b) Qualifications, denial of application, suspension,
 1510  revocation of approval, and other penalties for of mediators as
 1511  provided in s. 627.745 and in the Florida Rules for of Certified
 1512  and Court-Appointed Court Appointed Mediators, and for such
 1513  other individuals as are qualified by education, training, or
 1514  experience as the department determines to be appropriate.
 1515         Section 41. Section 627.70151, Florida Statutes, is created
 1516  to read:
 1517         627.70151 Appraisal; conflicts of interest.—An insurer that
 1518  offers residential coverage, as defined in s. 627.4025, or a
 1519  policyholder that uses an appraisal clause in the property
 1520  insurance contract to establish a process for estimating or
 1521  evaluating the amount of the loss through the use of an
 1522  impartial umpire may challenge the umpire’s impartiality and
 1523  disqualify the proposed umpire only if:
 1524         (1) A familial relationship within the third degree exists
 1525  between the umpire and a party or a representative of a party;
 1526         (2) The umpire has previously represented a party or a
 1527  representative of a party in a professional capacity in the same
 1528  or a substantially related matter;
 1529         (3) The umpire has represented another person in a
 1530  professional capacity on the same or a substantially related
 1531  matter, which includes the claim, same property, or an adjacent
 1532  property and that other person’s interests are materially
 1533  adverse to the interests of any party; or
 1534         (4) The umpire has worked as an employer or employee of a
 1535  party within the preceding 5 years.
 1536         Section 42. Paragraph (c) of subsection (2) of section
 1537  627.706, Florida Statutes, is amended to read:
 1538         627.706 Sinkhole insurance; catastrophic ground cover
 1539  collapse; definitions.—
 1540         (2) As used in ss. 627.706-627.7074, and as used in
 1541  connection with any policy providing coverage for a catastrophic
 1542  ground cover collapse or for sinkhole losses, the term:
 1543         (c) “Neutral evaluator” means a professional engineer or a
 1544  professional geologist who has completed a course of study in
 1545  alternative dispute resolution designed or approved by the
 1546  department for use in the neutral evaluation process, and who is
 1547  determined by the department to be fair and impartial, and who
 1548  is not otherwise ineligible for certification as provided in s.
 1549  627.7074.
 1550         Section 43. Subsections (3), (7), and (18) of section
 1551  627.7074, Florida Statutes, are amended to read:
 1552         627.7074 Alternative procedure for resolution of disputed
 1553  sinkhole insurance claims.—
 1554         (3) Following the receipt of the report required provided
 1555  under s. 627.7073 or the denial of a claim for a sinkhole loss,
 1556  the insurer shall notify the policyholder of his or her right to
 1557  participate in the neutral evaluation program under this section
 1558  if coverage is available under the policy and the claim was
 1559  submitted within the timeframe provided in s. 627.706(5).
 1560  Neutral evaluation supersedes the alternative dispute resolution
 1561  process under s. 627.7015 but does not invalidate the appraisal
 1562  clause of the insurance policy. The insurer shall provide to the
 1563  policyholder the consumer information pamphlet prepared by the
 1564  department pursuant to subsection (1) electronically or by
 1565  United States mail.
 1566         (7) Upon receipt of a request for neutral evaluation, the
 1567  department shall provide the parties a list of certified neutral
 1568  evaluators. The department shall allow the parties to submit
 1569  requests for disqualifying to disqualify evaluators on the list
 1570  for cause.
 1571         (a) The department shall disqualify neutral evaluators for
 1572  cause based only on any of the following grounds:
 1573         1. A familial relationship exists between the neutral
 1574  evaluator and either party or a representative of either party
 1575  within the third degree.
 1576         2. The proposed neutral evaluator has, in a professional
 1577  capacity, previously represented either party or a
 1578  representative of either party, in the same or a substantially
 1579  related matter.
 1580         3. The proposed neutral evaluator has, in a professional
 1581  capacity, represented another person in the same or a
 1582  substantially related matter and that person’s interests are
 1583  materially adverse to the interests of the parties. The term
 1584  “substantially related matter” means participation by the
 1585  neutral evaluator on the same claim, property, or adjacent
 1586  property.
 1587         4. The proposed neutral evaluator has, within the preceding
 1588  5 years, worked as an employer or employee of a any party to the
 1589  case.
 1590         (b) The department shall deny an application, or suspend or
 1591  revoke the certification, of a neutral evaluator to serve in the
 1592  neutral evaluator capacity if the department finds that one or
 1593  more of the following grounds exist:
 1594         1. Lack of one or more of the qualifications for
 1595  certification specified in this section.
 1596         2. Material misstatement, misrepresentation, or fraud in
 1597  obtaining or attempting to obtain the certification.
 1598         3. Demonstrated lack of fitness or trustworthiness to act
 1599  as a neutral evaluator.
 1600         4. Fraudulent or dishonest practices in the conduct of an
 1601  evaluation or in the conduct of business in the financial
 1602  services industry.
 1603         5. Violation of any provision of this code or of a lawful
 1604  order or rule of the department or aiding, instructing, or
 1605  encouraging another party to commit such violation.
 1606         (c)(b) The parties shall appoint a neutral evaluator from
 1607  the department list and promptly inform the department. If the
 1608  parties cannot agree to a neutral evaluator within 14 business
 1609  days, the department shall appoint a neutral evaluator from the
 1610  list of certified neutral evaluators. The department shall allow
 1611  each party to disqualify two neutral evaluators without cause.
 1612  Upon selection or appointment, the department shall promptly
 1613  refer the request to the neutral evaluator.
 1614         (d)(c) Within 14 business days after the referral, the
 1615  neutral evaluator shall notify the policyholder and the insurer
 1616  of the date, time, and place of the neutral evaluation
 1617  conference. The conference may be held by telephone, if feasible
 1618  and desirable. The neutral evaluator shall make reasonable
 1619  efforts to hold the conference within 90 days after the receipt
 1620  of the request by the department. Failure of the neutral
 1621  evaluator to hold the conference within 90 days does not
 1622  invalidate either party’s right to neutral evaluation or to a
 1623  neutral evaluation conference held outside this timeframe.
 1624         (18) The department shall adopt rules of procedure for the
 1625  neutral evaluation process and for certifying, denying or
 1626  suspending the certification of, and revoking certification as,
 1627  a neutral evaluator.
 1628         Section 44. Subsection (8) of section 627.711, Florida
 1629  Statutes, is amended to read:
 1630         627.711 Notice of premium discounts for hurricane loss
 1631  mitigation; uniform mitigation verification inspection form.—
 1632         (8) At its expense, the insurer may require that a uniform
 1633  mitigation verification form provided by a policyholder, a
 1634  policyholder’s agent, or an authorized mitigation inspector or
 1635  inspection company be independently verified by an inspector, an
 1636  inspection company, or an independent third-party quality
 1637  assurance provider that which possesses a quality assurance
 1638  program before accepting the uniform mitigation verification
 1639  form as valid. The insurer may exempt from additional
 1640  independent verification any uniform mitigation verification
 1641  form provided by a policyholder, a policyholder’s agent, an
 1642  authorized mitigation inspector, or an inspection company that
 1643  possesses a quality assurance program that meets the standards
 1644  established by the insurer. A uniform mitigation verification
 1645  form provided by a policyholder, a policyholder’s agent, an
 1646  authorized mitigation inspector, or an inspection company to
 1647  Citizens Property Insurance Corporation is not subject to
 1648  additional verification, and the property is not subject to
 1649  reinspection by the corporation, absent material changes to the
 1650  structure for the term stated on the form if the form signed by
 1651  a qualified inspector was submitted to, reviewed, and verified
 1652  by a quality assurance program approved by the corporation
 1653  before submission to the corporation.
 1654         Section 45. Paragraph (a) of subsection (5) of section
 1655  627.736, Florida Statutes, is amended to read:
 1656         627.736 Required personal injury protection benefits;
 1657  exclusions; priority; claims.—
 1659         (a) A physician, hospital, clinic, or other person or
 1660  institution lawfully rendering treatment to an injured person
 1661  for a bodily injury covered by personal injury protection
 1662  insurance may charge the insurer and injured party only a
 1663  reasonable amount pursuant to this section for the services and
 1664  supplies rendered, and the insurer providing such coverage may
 1665  directly pay for such charges directly to the such person or
 1666  institution lawfully rendering such treatment if the insured
 1667  receiving such treatment or his or her guardian has
 1668  countersigned the properly completed invoice, bill, or claim
 1669  form approved by the office upon which such charges are to be
 1670  paid for as having actually been rendered, to the best knowledge
 1671  of the insured or his or her guardian. However, such a charge
 1672  may not exceed the amount the person or institution customarily
 1673  charges for like services or supplies. In determining whether a
 1674  charge for a particular service, treatment, or otherwise is
 1675  reasonable, consideration may be given to evidence of usual and
 1676  customary charges and payments accepted by the provider involved
 1677  in the dispute, reimbursement levels in the community and
 1678  various federal and state medical fee schedules applicable to
 1679  motor vehicle and other insurance coverages, and other
 1680  information relevant to the reasonableness of the reimbursement
 1681  for the service, treatment, or supply.
 1682         1. The insurer may limit reimbursement to 80 percent of the
 1683  following schedule of maximum charges:
 1684         a. For emergency transport and treatment by providers
 1685  licensed under chapter 401, 200 percent of Medicare.
 1686         b. For emergency services and care provided by a hospital
 1687  licensed under chapter 395, 75 percent of the hospital’s usual
 1688  and customary charges.
 1689         c. For emergency services and care as defined by s. 395.002
 1690  provided in a facility licensed under chapter 395 rendered by a
 1691  physician or dentist, and related hospital inpatient services
 1692  rendered by a physician or dentist, the usual and customary
 1693  charges in the community.
 1694         d. For hospital inpatient services, other than emergency
 1695  services and care, 200 percent of the Medicare Part A
 1696  prospective payment applicable to the specific hospital
 1697  providing the inpatient services.
 1698         e. For hospital outpatient services, other than emergency
 1699  services and care, 200 percent of the Medicare Part A Ambulatory
 1700  Payment Classification for the specific hospital providing the
 1701  outpatient services.
 1702         f. For all other medical services, supplies, and care, 200
 1703  percent of the allowable amount under:
 1704         (I) The participating physicians fee schedule of Medicare
 1705  Part B, except as provided in sub-sub-subparagraphs (II) and
 1706  (III).
 1707         (II) Medicare Part B, in the case of services, supplies,
 1708  and care provided by ambulatory surgical centers and clinical
 1709  laboratories.
 1710         (III) The Durable Medical Equipment Prosthetics/Orthotics
 1711  and Supplies fee schedule of Medicare Part B, in the case of
 1712  durable medical equipment.
 1714  However, if such services, supplies, or care is not reimbursable
 1715  under Medicare Part B, as provided in this sub-subparagraph, the
 1716  insurer may limit reimbursement to 80 percent of the maximum
 1717  reimbursable allowance under workers’ compensation, as
 1718  determined under s. 440.13 and rules adopted thereunder which
 1719  are in effect at the time such services, supplies, or care is
 1720  provided. Services, supplies, or care that is not reimbursable
 1721  under Medicare or workers’ compensation is not required to be
 1722  reimbursed by the insurer.
 1723         2. For purposes of subparagraph 1., the applicable fee
 1724  schedule or payment limitation under Medicare is the fee
 1725  schedule or payment limitation in effect on March 1 of the year
 1726  in which the services, supplies, or care is rendered and for the
 1727  area in which such services, supplies, or care is rendered, and
 1728  the applicable fee schedule or payment limitation applies from
 1729  March 1 until the last day of February throughout the remainder
 1730  of the following that year, notwithstanding any subsequent
 1731  change made to the fee schedule or payment limitation, except
 1732  that it may not be less than the allowable amount under the
 1733  applicable schedule of Medicare Part B for 2007 for medical
 1734  services, supplies, and care subject to Medicare Part B.
 1735         3. Subparagraph 1. does not allow the insurer to apply a
 1736  any limitation on the number of treatments or other utilization
 1737  limits that apply under Medicare or workers’ compensation. An
 1738  insurer that applies the allowable payment limitations of
 1739  subparagraph 1. must reimburse a provider who lawfully provided
 1740  care or treatment under the scope of his or her license,
 1741  regardless of whether such provider is entitled to reimbursement
 1742  under Medicare due to restrictions or limitations on the types
 1743  or discipline of health care providers who may be reimbursed for
 1744  particular procedures or procedure codes. However, subparagraph
 1745  1. does not prohibit an insurer from using the Medicare coding
 1746  policies and payment methodologies of the federal Centers for
 1747  Medicare and Medicaid Services, including applicable modifiers,
 1748  to determine the appropriate amount of reimbursement for medical
 1749  services, supplies, or care if the coding policy or payment
 1750  methodology does not constitute a utilization limit.
 1751         4. If an insurer limits payment as authorized by
 1752  subparagraph 1., the person providing such services, supplies,
 1753  or care may not bill or attempt to collect from the insured any
 1754  amount in excess of such limits, except for amounts that are not
 1755  covered by the insured’s personal injury protection coverage due
 1756  to the coinsurance amount or maximum policy limits.
 1757         5. Effective July 1, 2012, An insurer may limit payment as
 1758  authorized by this paragraph only if the insurance policy
 1759  includes a notice at the time of issuance or renewal that the
 1760  insurer may limit payment pursuant to the schedule of charges
 1761  specified in this paragraph. A policy form approved by the
 1762  office satisfies this requirement. If a provider submits a
 1763  charge for an amount less than the amount allowed under
 1764  subparagraph 1., the insurer may pay the amount of the charge
 1765  submitted.
 1766         Section 46. Subsection (1) and paragraphs (a) and (b) of
 1767  subsection (2) of section 627.744, Florida Statutes, are amended
 1768  to read:
 1769         627.744 Required preinsurance inspection of private
 1770  passenger motor vehicles.—
 1771         (1) A private passenger motor vehicle insurance policy
 1772  providing physical damage coverage, including collision or
 1773  comprehensive coverage, may not be issued in this state unless
 1774  the insurer has inspected the motor vehicle in accordance with
 1775  this section. Physical damage coverage on a motor vehicle may
 1776  not be suspended during the term of the policy due to the
 1777  applicant’s failure to provide required documents. However,
 1778  payment of a claim may be conditioned upon the insurer’s receipt
 1779  of the required documents, and physical damage loss occurring
 1780  after the effective date of coverage is not payable until the
 1781  documents are provided to the insurer.
 1782         (2) This section does not apply:
 1783         (a) To a policy for a policyholder who has been insured for
 1784  2 years or longer, without interruption, under a private
 1785  passenger motor vehicle policy that which provides physical
 1786  damage coverage for any vehicle, if the agent of the insurer
 1787  verifies the previous coverage.
 1788         (b) To a new, unused motor vehicle purchased or leased from
 1789  a licensed motor vehicle dealer or leasing company, if the
 1790  insurer is provided with:
 1791         1. A bill of sale, or buyer’s order, or lease agreement
 1792  that which contains a full description of the motor vehicle,
 1793  including all options and accessories; or
 1794         2. A copy of the title or registration that which
 1795  establishes transfer of ownership from the dealer or leasing
 1796  company to the customer and a copy of the window sticker or the
 1797  dealer invoice showing the itemized options and equipment and
 1798  the total retail price of the vehicle.
 1800  For the purposes of this paragraph, the physical damage coverage
 1801  on the motor vehicle may not be suspended during the term of the
 1802  policy due to the applicant’s failure to provide the required
 1803  documents. However, payment of a claim is conditioned upon the
 1804  receipt by the insurer of the required documents, and no
 1805  physical damage loss occurring after the effective date of the
 1806  coverage is payable until the documents are provided to the
 1807  insurer.
 1808         Section 47. Paragraph (b) of subsection (3) of section
 1809  627.745, Florida Statutes, is amended, present subsections (4)
 1810  and (5) of that section are redesignated as subsections (5) and
 1811  (6), respectively, and a new subsection (4) is added to that
 1812  section, to read:
 1813         627.745 Mediation of claims.—
 1814         (3)
 1815         (b) To qualify for approval as a mediator, an individual a
 1816  person must meet one of the following qualifications:
 1817         1. Possess an active certification as a Florida Supreme
 1818  Court certified circuit court mediator. A circuit court mediator
 1819  whose certification is in a lapsed, suspended, or decertified
 1820  status is not eligible to participate in the program a masters
 1821  or doctorate degree in psychology, counseling, business,
 1822  accounting, or economics, be a member of The Florida Bar, be
 1823  licensed as a certified public accountant, or demonstrate that
 1824  the applicant for approval has been actively engaged as a
 1825  qualified mediator for at least 4 years prior to July 1, 1990.
 1826         2. Be an approved department mediator as of July 1, 2014,
 1827  and have conducted at least one mediation on behalf of the
 1828  department within the 4 years immediately preceding that the
 1829  date the application for approval is filed with the department,
 1830  have completed a minimum of a 40-hour training program approved
 1831  by the department and successfully passed a final examination
 1832  included in the training program and approved by the department.
 1833  The training program shall include and address all of the
 1834  following:
 1835         a. Mediation theory.
 1836         b. Mediation process and techniques.
 1837         c. Standards of conduct for mediators.
 1838         d. Conflict management and intervention skills.
 1839         e. Insurance nomenclature.
 1840         (4) The department shall deny an application, or suspend or
 1841  revoke its approval of a mediator or certification of a neutral
 1842  evaluator to serve in such capacity, if the department finds
 1843  that any of the following grounds exist:
 1844         (a) Lack of one or more of the qualifications for approval
 1845  or certification specified in this section.
 1846         (b) Material misstatement, misrepresentation, or fraud in
 1847  obtaining, or attempting to obtain, the approval or
 1848  certification.
 1849         (c) Demonstrated lack of fitness or trustworthiness to act
 1850  as a mediator or neutral evaluator.
 1851         (d) Fraudulent or dishonest practices in the conduct of
 1852  mediation or neutral evaluation or in the conduct of business in
 1853  the financial services industry.
 1854         (e) Violation of any provision of this code or of a lawful
 1855  order or rule of the department, violation of the Florida Rules
 1856  of Certified and Court Appointed Mediators, or aiding,
 1857  instructing, or encouraging another party in committing such a
 1858  violation.
 1860  The department may adopt rules to administer this subsection.
 1861         Section 48. Subsection (8) of section 627.782, Florida
 1862  Statutes, is amended to read:
 1863         627.782 Adoption of rates.—
 1864         (8) Each title insurance agency and insurer licensed to do
 1865  business in this state and each insurer’s direct or retail
 1866  business in this state shall maintain and submit information,
 1867  including revenue, loss, and expense data, as the office
 1868  determines necessary to assist in the analysis of title
 1869  insurance premium rates, title search costs, and the condition
 1870  of the title insurance industry in this state. This information
 1871  must be transmitted to the office annually by May March 31 of
 1872  the year after the reporting year. The commission shall adopt
 1873  rules regarding the collection and analysis of the data from the
 1874  title insurance industry.
 1875         Section 49. Subsection (4) of section 627.841, Florida
 1876  Statutes, is amended to read:
 1877         627.841 Delinquency, collection, cancellation, and payment
 1878  check return charge charges; attorney attorney’s fees.—
 1879         (4) If In the event that a payment is made to a premium
 1880  finance company by debit, credit, electronic funds transfer,
 1881  check, or draft and such payment the instrument is returned,
 1882  declined, or cannot be processed due to because of insufficient
 1883  funds to pay it, the premium finance company may, if the premium
 1884  finance agreement so provides, impose a return payment charge of
 1885  $15.
 1886         Section 50. Subsections (1), (3), (10), and (12) of section
 1887  628.461, Florida Statutes, are amended to read:
 1888         628.461 Acquisition of controlling stock.—
 1889         (1) A person may not, individually or in conjunction with
 1890  an any affiliated person of such person, acquire directly or
 1891  indirectly, conclude a tender offer or exchange offer for, enter
 1892  into any agreement to exchange securities for, or otherwise
 1893  finally acquire 10 5 percent or more of the outstanding voting
 1894  securities of a domestic stock insurer or of a controlling
 1895  company, unless:
 1896         (a) The person or affiliated person has filed with the
 1897  office and sent to the insurer and controlling company a letter
 1898  of notification regarding the transaction or proposed
 1899  transaction within no later than 5 days after any form of tender
 1900  offer or exchange offer is proposed, or within no later than 5
 1901  days after the acquisition of the securities if no tender offer
 1902  or exchange offer is involved. The notification must be provided
 1903  on forms prescribed by the commission containing information
 1904  determined necessary to understand the transaction and identify
 1905  all purchasers and owners involved;
 1906         (b) The person or affiliated person has filed with the
 1907  office a statement as specified in subsection (3). The statement
 1908  must be completed and filed within 30 days after:
 1909         1. Any definitive acquisition agreement is entered;
 1910         2. Any form of tender offer or exchange offer is proposed;
 1911  or
 1912         3. The acquisition of the securities, if no definitive
 1913  acquisition agreement, tender offer, or exchange offer is
 1914  involved; and
 1915         (c) The office has approved the tender or exchange offer,
 1916  or acquisition if no tender offer or exchange offer is involved,
 1917  and approval is in effect.
 1919  In lieu of a filing as required under this subsection, a party
 1920  acquiring less than 10 percent of the outstanding voting
 1921  securities of an insurer may file a disclaimer of affiliation
 1922  and control. The disclaimer shall fully disclose all material
 1923  relationships and basis for affiliation between the person and
 1924  the insurer as well as the basis for disclaiming the affiliation
 1925  and control. After a disclaimer has been filed, the insurer
 1926  shall be relieved of any duty to register or report under this
 1927  section which may arise out of the insurer’s relationship with
 1928  the person unless and until the office disallows the disclaimer.
 1929  The office shall disallow a disclaimer only after furnishing all
 1930  parties in interest with notice and opportunity to be heard and
 1931  after making specific findings of fact to support the
 1932  disallowance. A filing as required under this subsection must be
 1933  made as to any acquisition that equals or exceeds 10 percent of
 1934  the outstanding voting securities.
 1935         (3) The statement to be filed with the office under
 1936  subsection (1) and furnished to the insurer and controlling
 1937  company must shall contain the following information and any
 1938  additional information as the office deems necessary to
 1939  determine the character, experience, ability, and other
 1940  qualifications of the person or affiliated person of such person
 1941  for the protection of the policyholders and shareholders of the
 1942  insurer and the public:
 1943         (a) The identity of, and the background information
 1944  specified in subsection (4) on, each natural person by whom, or
 1945  on whose behalf, the acquisition is to be made; and, if the
 1946  acquisition is to be made by, or on behalf of, a corporation,
 1947  association, or trust, as to the corporation, association, or
 1948  trust and as to any person who controls either directly or
 1949  indirectly controls the corporation, association, or trust, the
 1950  identity of, and the background information specified in
 1951  subsection (4) on, each director, officer, trustee, or other
 1952  natural person performing duties similar to those of a director,
 1953  officer, or trustee for the corporation, association, or trust;
 1954         (b) The source and amount of the funds or other
 1955  consideration used, or to be used, in making the acquisition;
 1956         (c) Any plans or proposals that which such persons may have
 1957  made to liquidate such insurer, to sell any of its assets or
 1958  merge or consolidate it with any person, or to make any other
 1959  major change in its business or corporate structure or
 1960  management; and any plans or proposals that which such persons
 1961  may have made to liquidate any controlling company of such
 1962  insurer, to sell any of its assets or merge or consolidate it
 1963  with any person, or to make any other major change in its
 1964  business or corporate structure or management;
 1965         (d) The number of shares or other securities which the
 1966  person or affiliated person of such person proposes to acquire,
 1967  the terms of the proposed acquisition, and the manner in which
 1968  the securities are to be acquired; and
 1969         (e) Information as to any contract, arrangement, or
 1970  understanding with any party with respect to any of the
 1971  securities of the insurer or controlling company, including, but
 1972  not limited to, information relating to the transfer of any of
 1973  the securities, option arrangements, puts or calls, or the
 1974  giving or withholding of proxies, which information names the
 1975  party with whom the contract, arrangement, or understanding has
 1976  been entered into and gives the details thereof;
 1977         (f) Effective January 1, 2015, an agreement by the person
 1978  required to file the statement that the person will provide the
 1979  annual report specified in s. 628.801(2) if control exists; and
 1980         (g) Effective January 1, 2015, an acknowledgement by the
 1981  person required to file the statement that the person and all
 1982  subsidiaries within the person’s control in the insurance
 1983  holding company system shall provide, as necessary, information
 1984  to the office upon a request to evaluate enterprise risk to the
 1985  insurer.
 1986         (10) Upon notification to the office by the domestic stock
 1987  insurer or a controlling company that any person or any
 1988  affiliated person of such person has acquired 10 5 percent or
 1989  more of the outstanding voting securities of the domestic stock
 1990  insurer or controlling company without complying with the
 1991  provisions of this section, the office shall order that the
 1992  person and any affiliated person of such person cease
 1993  acquisition of any further securities of the domestic stock
 1994  insurer or controlling company; however, the person or any
 1995  affiliated person of such person may request a proceeding, which
 1996  proceeding shall be convened within 7 days after the rendering
 1997  of the order for the sole purpose of determining whether the
 1998  person, individually or in connection with an any affiliated
 1999  person of such person, has acquired 10 5 percent or more of the
 2000  outstanding voting securities of a domestic stock insurer or
 2001  controlling company. Upon the failure of the person or
 2002  affiliated person to request a hearing within 7 days, or upon a
 2003  determination at a hearing convened pursuant to this subsection
 2004  that the person or affiliated person has acquired voting
 2005  securities of a domestic stock insurer or controlling company in
 2006  violation of this section, the office may order the person and
 2007  affiliated person to divest themselves of any voting securities
 2008  so acquired.
 2009         (12)(a) A presumption of control may be rebutted by filing
 2010  a disclaimer of control. Any person may file a disclaimer of
 2011  control with the office. The disclaimer must fully disclose all
 2012  material relationships and bases for affiliation between the
 2013  person and the insurer as well as the basis for disclaiming the
 2014  affiliation. After a disclaimer is filed, the insurer is
 2015  relieved of any duty to register or report under this section,
 2016  which may arise out of the insurer’s relationship with the
 2017  person, unless the office disallows the disclaimer. An
 2018  affiliated person of a party acquiring less than 20 percent of
 2019  the outstanding voting securities of an insurer that has filed a
 2020  Schedule 13G with the Securities and Exchange Commission
 2021  pursuant to Rules 13d-1(b) or 13d-1(c) under the Securities
 2022  Exchange Act of 1934, as amended, with respect to the securities
 2023  of the party acquiring voting securities of an insurer shall
 2024  automatically, without further action of the department, be
 2025  deemed to have filed a disclaimer of affiliation and control
 2026  pursuant to this paragraph. For the purpose of this section, the
 2027  term “affiliated person” of another person means:
 2028         1. The spouse of such other person;
 2029         2. The parents of such other person and their lineal
 2030  descendants and the parents of such other person’s spouse and
 2031  their lineal descendants;
 2032         3. Any person who directly or indirectly owns or controls,
 2033  or holds with power to vote, 5 percent or more of the
 2034  outstanding voting securities of such other person;
 2035         4. Any person 5 percent or more of the outstanding voting
 2036  securities of which are directly or indirectly owned or
 2037  controlled, or held with power to vote, by such other person;
 2038         5. Any person or group of persons who directly or
 2039  indirectly control, are controlled by, or are under common
 2040  control with such other person;
 2041         6. Any officer, director, partner, copartner, or employee
 2042  of such other person;
 2043         7. If such other person is an investment company, any
 2044  investment adviser of such company or any member of an advisory
 2045  board of such company;
 2046         8. If such other person is an unincorporated investment
 2047  company not having a board of directors, the depositor of such
 2048  company; or
 2049         9. Any person who has entered into an agreement, written or
 2050  unwritten, to act in concert with such other person in acquiring
 2051  or limiting the disposition of securities of a domestic stock
 2052  insurer or controlling company.
 2053         (b) Any controlling person of a domestic insurer who seeks
 2054  to divest the person’s controlling interest in the domestic
 2055  insurer in any manner shall file with the office, with a copy to
 2056  the insurer, of the person’s proposed divestiture at least 30
 2057  days before the cessation of control. The office shall determine
 2058  those instances in which the party seeking to divest or to
 2059  acquire a controlling interest in an insurer must file for and
 2060  obtain approval of the transaction. The information remains
 2061  confidential until the conclusion of the transaction unless the
 2062  office, in its discretion, determines that confidential
 2063  treatment interferes with enforcement of this section. If the
 2064  statement required under subsection (1) is otherwise filed, this
 2065  paragraph does not apply. For the purposes of this section, the
 2066  term “controlling company” means any corporation, trust, or
 2067  association owning, directly or indirectly, 25 percent or more
 2068  of the voting securities of one or more domestic stock insurance
 2069  companies.
 2070         Section 51. Subsections (6) and (7) of section 634.406,
 2071  Florida Statutes, are amended to read:
 2072         634.406 Financial requirements.—
 2073         (6) An association that which holds a license under this
 2074  part and which does not hold any other license under this
 2075  chapter may allow its premiums for service warranties written
 2076  under this part to exceed the ratio to net assets limitations of
 2077  this section if the association meets all of the following
 2078  conditions:
 2079         (a) Maintains net assets of at least $750,000.
 2080         (b) Uses Utilizes a contractual liability insurance policy
 2081  approved by the office that: which
 2082         1. Reimburses the service warranty association for 100
 2083  percent of its claims liability and is issued by an insurer that
 2084  maintains a policyholder surplus of at least $100 million; or
 2085         2. Complies with subsection (3) and is issued by an insurer
 2086  that maintains a policyholder surplus of at least $200 million.
 2087         (c) The insurer issuing the contractual liability insurance
 2088  policy:
 2089         1. Maintains a policyholder surplus of at least $100
 2090  million.
 2091         1.2. Is rated “A” or higher by A.M. Best Company or an
 2092  equivalent rating by another national rating service acceptable
 2093  to the office.
 2094         3. Is in no way affiliated with the warranty association.
 2095         2.4. In conjunction with the warranty association’s filing
 2096  of the quarterly and annual reports, provides, on a form
 2097  prescribed by the commission, a statement certifying the gross
 2098  written premiums in force reported by the warranty association
 2099  and a statement that all of the warranty association’s gross
 2100  written premium in force is covered under the contractual
 2101  liability policy, regardless of whether or not it has been
 2102  reported.
 2103         (7) A contractual liability policy must insure 100 percent
 2104  of an association’s claims exposure under all of the
 2105  association’s service warranty contracts, wherever written,
 2106  unless all of the following are satisfied:
 2107         (a) The contractual liability policy contains a clause that
 2108  specifically names the service warranty contract holders as sole
 2109  beneficiaries of the contractual liability policy and claims are
 2110  paid directly to the person making a claim under the contract;
 2111         (b) The contractual liability policy meets all other
 2112  requirements of this part, including subsection (3) of this
 2113  section, which are not inconsistent with this subsection;
 2114         (c) The association has been in existence for at least 5
 2115  years or the association is a wholly owned subsidiary of a
 2116  corporation that has been in existence and has been licensed as
 2117  a service warranty association in the state for at least 5
 2118  years, and:
 2119         1. Is listed and traded on a recognized stock exchange; is
 2120  listed in NASDAQ (National Association of Security Dealers
 2121  Automated Quotation system) and publicly traded in the over-the
 2122  counter securities market; is required to file either of Form
 2123  10-K, Form 100, or Form 20-G with the United States Securities
 2124  and Exchange Commission; or has American Depository Receipts
 2125  listed on a recognized stock exchange and publicly traded or is
 2126  the wholly owned subsidiary of a corporation that is listed and
 2127  traded on a recognized stock exchange; is listed in NASDAQ
 2128  (National Association of Security Dealers Automated Quotation
 2129  system) and publicly traded in the over-the-counter securities
 2130  market; is required to file Form 10-K, Form 100, or Form 20-G
 2131  with the United States Securities and Exchange Commission; or
 2132  has American Depository Receipts listed on a recognized stock
 2133  exchange and is publicly traded;
 2134         2. Maintains outstanding debt obligations, if any, rated in
 2135  the top four rating categories by a recognized rating service;
 2136         3. Has and maintains at all times a minimum net worth of
 2137  not less than $10 million as evidenced by audited financial
 2138  statements prepared by an independent certified public
 2139  accountant in accordance with generally accepted accounting
 2140  principles and submitted to the office annually; and
 2141         4. Is authorized to do business in this state; and
 2142         (d) The insurer issuing the contractual liability policy:
 2143         1. Maintains and has maintained for the preceding 5 years,
 2144  policyholder surplus of at least $100 million and is rated “A”
 2145  or higher by A.M. Best Company or has an equivalent rating by
 2146  another rating company acceptable to the office;
 2147         2. Holds a certificate of authority to do business in this
 2148  state and is approved to write this type of coverage; and
 2149         3. Acknowledges to the office quarterly that it insures all
 2150  of the association’s claims exposure under contracts delivered
 2151  in this state.
 2153  If all the preceding conditions are satisfied, then the scope of
 2154  coverage under a contractual liability policy shall not be
 2155  required to exceed an association’s claims exposure under
 2156  service warranty contracts delivered in this state.
 2157         Section 52. Except as otherwise expressly provided in this
 2158  act, this act shall take effect July 1, 2014.