Florida Senate - 2014                             CS for SB 1260
       By the Committee on Banking and Insurance; and Senators Brandes
       and Soto
       597-02850A-14                                         20141260c1
    1                        A bill to be entitled                      
    2         An act relating to insurance; amending s. 624.501,
    3         F.S.; revising original appointment and renewal fees
    4         related to certain insurance representatives; amending
    5         s. 626.015, F.S.; defining the term “unaffiliated
    6         insurance agent”; amending s. 626.0428, F.S.;
    7         requiring a branch place of business to have an agent
    8         in charge; authorizing an agent to be in charge of
    9         more than one branch office under certain
   10         circumstances; providing requirements relating to the
   11         designation of an agent in charge; prohibiting an
   12         insurance agency from conducting insurance business at
   13         a location without a designated agent in charge;
   14         providing that the agent in charge is accountable for
   15         misconduct and violations committed by the licensee
   16         and any person under his or her supervision; amending
   17         s. 626.112, F.S.; prohibiting limited customer
   18         representative licenses from being issued after a
   19         specified date; providing licensure exemptions that
   20         allow specified individuals or entities to conduct
   21         insurance business at specified locations under
   22         certain circumstances; revising licensure requirements
   23         and penalties with respect to registered insurance
   24         agencies; providing that the registration of an
   25         approved registered insurance agency automatically
   26         converts to an insurance agency license on a specified
   27         date; amending s. 626.172, F.S.; revising requirements
   28         relating to applications for insurance agency
   29         licenses; conforming provisions to changes made by the
   30         act; amending s. 626.311, F.S.; limiting the types of
   31         business that may be transacted by certain agents;
   32         amending s. 626.321, F.S.; providing that a limited
   33         license to offer motor vehicle rental insurance issued
   34         to a business that rents or leases motor vehicles
   35         encompasses the employees of such business; amending
   36         s. 626.382, F.S.; providing that an insurance agency
   37         license continues in force until canceled, suspended,
   38         revoked, terminated, or expired; amending s. 626.601,
   39         F.S.; revising terminology relating to investigations
   40         conducted by the Department of Financial Services and
   41         the Office of Insurance Regulation with respect to
   42         individuals and entities involved in the insurance
   43         industry; revising a confidentiality provision;
   44         repealing s. 626.747, F.S., relating to branch
   45         agencies, agents in charge, and the payment of
   46         additional county tax under certain circumstances;
   47         amending s. 626.8411, F.S.; conforming a cross
   48         reference; amending s. 626.854, F.S.; deleting the
   49         requirement that a 48 hours’ notice be provided before
   50         scheduling an onsite inspection of insured property;
   51         conforming a cross-reference; amending s. 626.8805,
   52         F.S.; revising insurance administrator application
   53         requirements; amending s. 626.8817, F.S.; authorizing
   54         an insurer’s designee to provide certain coverage
   55         information to an insurance administrator; authorizing
   56         an insurer to subcontract the review of an insurance
   57         administrator; amending s. 626.882, F.S.; prohibiting
   58         a person from acting as an insurance administrator
   59         without a specific written agreement; amending s.
   60         626.883, F.S.; requiring an insurance administrator to
   61         furnish fiduciary account records to an insurer;
   62         requiring administrator withdrawals from a fiduciary
   63         account to be made according to a specific written
   64         agreement; providing that an insurer’s designee may
   65         authorize payment of claims; amending s. 626.884,
   66         F.S.; revising an insurer’s right of access to certain
   67         administrator records; amending s. 626.89, F.S.;
   68         revising the deadline for filing certain financial
   69         statements; deleting provisions allowing an extension
   70         for administrator to submit certain financial
   71         statements; amending s. 626.931, F.S.; deleting
   72         provisions requiring a surplus lines agent to file a
   73         quarterly affidavit with the Florida Surplus Lines
   74         Service Office; amending s. 626.932, F.S.; revising
   75         the due date of surplus lines tax; amending ss.
   76         626.935 and 626.936, F.S.; conforming provisions to
   77         changes made by the act; amending s. 626.9541, F.S.;
   78         revising provisions for unfair methods of competition
   79         and unfair or deceptive acts relating to conducting
   80         certain insurance transactions through credit card
   81         facilities; amending s. 627.062, F.S.; authorizing the
   82         Office of Insurance Regulation to use a straight
   83         average of model results or output ranges to estimate
   84         hurricane losses when determining whether the rates in
   85         a rate filing are excessive, inadequate, or unfairly
   86         discriminatory; amending s. 627.0628, F.S.; increasing
   87         the length of time during which an insurer must adhere
   88         to certain findings made by the Commission on
   89         Hurricane Loss Projection Methodology with respect to
   90         certain methods, principles, standards, models, or
   91         output ranges used in a rate filing; providing that
   92         the requirement to adhere to such findings does not
   93         limit an insurer from using straight averages of model
   94         results or output ranges under specified
   95         circumstances; amending s. 627.0651, F.S.; revising
   96         provisions for making and use of rates for motor
   97         vehicle insurance; amending s. 627.072, F.S.;
   98         authorizing retrospective rating plans relating to
   99         workers’ compensation and employer’s liability
  100         insurance to allow negotiations between certain
  101         employers and insurers with respect to rating factors
  102         used to calculate premiums; amending ss. 627.281,
  103         F.S.; conforming a cross-reference; amending s.
  104         627.311, F.S.; providing that certain dividends may be
  105         retained by the joint underwriting plan for future
  106         use; amending s. 627.3518, F.S.; conforming a cross
  107         reference; repealing s. 627.3519, F.S., relating to an
  108         annual report on the aggregate report of maximum
  109         losses of the Florida Hurricane Catastrophe Fund and
  110         Citizens Property Insurance Corporation; amending s.
  111         627.409, F.S.; providing that a claim for residential
  112         property insurance may not be denied based on certain
  113         credit information; amending s. 627.4133, F.S.;
  114         extending the period for prior notice required with
  115         respect to the nonrenewal, cancellation, or
  116         termination of certain insurance policies; deleting
  117         certain provisions that require extended periods of
  118         prior notice with respect to the nonrenewal,
  119         cancellation, or termination of certain insurance
  120         policies; prohibiting the cancellation of certain
  121         policies that have been in effect for a specified
  122         amount of time, except under certain circumstances;
  123         prohibiting the cancellation of a policy or contract
  124         that has been in effect for a specified amount of time
  125         based on certain credit information; amending s.
  126         627.4137, F.S.; adding licensed company adjusters to
  127         the list of persons who may respond to a claimant’s
  128         written request for information relating to liability
  129         insurance coverage; amending s. 627.421, F.S.;
  130         authorizing a policyholder of personal lines insurance
  131         to affirmatively elect delivery of policy documents by
  132         electronic means; amending s. 627.43141, F.S.;
  133         authorizing a notice of change in policy terms to be
  134         sent in a separate mailing to an insured under certain
  135         circumstances; requiring an insurer to provide such
  136         notice to the insured’s insurance agent; creating s.
  137         627.4553, F.S.; providing requirements for the
  138         recommendation to surrender an annuity or life
  139         insurance policy; amending s. 627.7015, F.S.; revising
  140         the rulemaking authority of the department with
  141         respect to qualifications and specified types of
  142         penalties covered under the property insurance
  143         mediation program; creating s. 627.70151, F.S.;
  144         providing criteria for an insurer or policyholder to
  145         challenge the impartiality of a loss appraisal umpire
  146         for purposes of disqualifying such umpire; amending s.
  147         627.706, F.S.; revising the definition of the term
  148         “neutral evaluator”; amending s. 627.7074, F.S.;
  149         revising notification requirements for participation
  150         in the neutral evaluation program; providing grounds
  151         for the department to deny an application, or suspend
  152         or revoke certification, of a neutral evaluator;
  153         requiring the department to adopt rules relating to
  154         certification of neutral evaluators; amending s.
  155         627.711, F.S.; revising verification requirements for
  156         uniform mitigation verification forms; amending s.
  157         627.7283, F.S.; providing for the electronic transfer
  158         of unearned premiums returned when a policy is
  159         cancelled; amending s. 627.736, F.S.; revising the
  160         time period for applicability of certain Medicare fee
  161         schedules or payment limitations; amending s. 627.744,
  162         F.S.; revising preinsurance inspection requirements
  163         for private passenger motor vehicles; amending s.
  164         627.745, F.S.; revising qualifications for approval as
  165         a mediator by the department; providing grounds for
  166         the department to deny an application, or suspend or
  167         revoke approval of a mediator or certification of a
  168         neutral evaluator; authorizing the department to adopt
  169         rules; amending s. 627.782, F.S.; revising the date by
  170         which title insurance agencies and certain insurers
  171         must annually submit specified information to the
  172         Office of Insurance Regulation; amending s. 628.461,
  173         F.S.; revising filing requirements relating to the
  174         acquisition of controlling stock; revising the amount
  175         of outstanding voting securities of a domestic stock
  176         insurer or a controlling company that a person is
  177         prohibited from acquiring unless certain requirements
  178         have been met; prohibiting persons acquiring a certain
  179         percentage of voting securities from acquiring certain
  180         securities; providing that a presumption of control
  181         may be rebutted by filing a disclaimer of control;
  182         deleting a definition; amending ss. 631.717 and
  183         631.734, F.S.; transferring a provision relating to
  184         the obligations of the Florida Life and Health
  185         Insurance Guaranty Association; amending s. 634.406,
  186         F.S.; revising criteria authorizing premiums of
  187         certain service warranty associations to exceed their
  188         specified net assets limitations; revising
  189         requirements relating to contractual liability
  190         policies that insure warranty associations; providing
  191         effective dates.
  193  Be It Enacted by the Legislature of the State of Florida:
  195         Section 1. Paragraphs (a) and (c) of subsection (6) and
  196  subsections (7) and (8) of section 624.501, Florida Statutes,
  197  are amended to read:
  198         624.501 Filing, license, appointment, and miscellaneous
  199  fees.—The department, commission, or office, as appropriate,
  200  shall collect in advance, and persons so served shall pay to it
  201  in advance, fees, licenses, and miscellaneous charges as
  202  follows:
  203         (6) Insurance representatives, property, marine, casualty,
  204  and surety insurance.
  205         (a) Agent’s original appointment and biennial renewal or
  206  continuation thereof, each insurer or unaffiliated agent making
  207  an appointment:
  208  Appointment fee...........................................$42.00
  209  State tax..................................................12.00
  210  County tax..................................................6.00
  211  Total.....................................................$60.00
  212         (c) Nonresident agent’s original appointment and biennial
  213  renewal or continuation thereof, appointment fee, each insurer
  214  or unaffiliated agent making an appointment...............$60.00
  215         (7) Life insurance agents.
  216         (a) Agent’s original appointment and biennial renewal or
  217  continuation thereof, each insurer or unaffiliated agent making
  218  an appointment:
  219  Appointment fee...........................................$42.00
  220  State tax..................................................12.00
  221  County tax..................................................6.00
  222  Total.....................................................$60.00
  223         (b) Nonresident agent’s original appointment and biennial
  224  renewal or continuation thereof, appointment fee, each insurer
  225  or unaffiliated agent making an appointment...............$60.00
  226         (8) Health insurance agents.
  227         (a) Agent’s original appointment and biennial renewal or
  228  continuation thereof, each insurer or unaffiliated agent making
  229  an appointment:
  230  Appointment fee...........................................$42.00
  231  State tax..................................................12.00
  232  County tax..................................................6.00
  233  Total.....................................................$60.00
  234         (b) Nonresident agent’s original appointment and biennial
  235  renewal or continuation thereof, appointment fee, each insurer
  236  or unaffiliated agent making an appointment...............$60.00
  237         Section 2. Present subsection (18) of section 626.015,
  238  Florida Statutes, is renumbered as subsection (19), and a new
  239  subsection (18) is added to that section, to read:
  240         626.015 Definitions.—As used in this part:
  241         (18) “Unaffiliated insurance agent” means a licensed
  242  insurance agent, except a limited lines agent, who is self
  243  appointed and who practices as an independent consultant in the
  244  business of analyzing or abstracting insurance policies,
  245  providing insurance advice or counseling, or making specific
  246  recommendations or comparisons of insurance products for a fee
  247  established in advance by written contract signed by the
  248  parties. An unaffiliated insurance agent may not be affiliated
  249  with an insurer, insurer-appointed insurance agent, or insurance
  250  agency contracted with or employing insurer-appointed insurance
  251  agents.
  252         Section 3. Effective January 1, 2015, section 626.0428,
  253  Florida Statutes, is amended to read:
  254         626.0428 Agency personnel powers, duties, and limitations.—
  255         (1) An individual employed by an agent or agency on salary
  256  who devotes full time to clerical work, with incidental taking
  257  of insurance applications or quoting or receiving premiums on
  258  incoming inquiries in the office of the agent or agency, is not
  259  deemed to be an agent or customer representative if his or her
  260  compensation does not include in whole or in part any
  261  commissions on such business and is not related to the
  262  production of applications, insurance, or premiums.
  263         (2) An employee or authorized representative located at a
  264  designated branch of an agent or agency may not bind insurance
  265  coverage unless licensed and appointed as an agent or customer
  266  representative.
  267         (3) An employee or authorized representative of an agent or
  268  agency may not initiate contact with any person for the purpose
  269  of soliciting insurance unless licensed and appointed as an
  270  agent or customer representative. As to title insurance, an
  271  employee of an agent or agency may not initiate contact with any
  272  individual proposed insured for the purpose of soliciting title
  273  insurance unless licensed as a title insurance agent or exempt
  274  from such licensure pursuant to s. 626.8417(4).
  275         (4)(a) Each place of business established by an agent or
  276  agency, firm, corporation, or association must be in the active
  277  full-time charge of a licensed and appointed agent holding the
  278  required agent licenses to transact the lines of insurance being
  279  handled at the location.
  280         (b) Notwithstanding paragraph (a), the licensed agent in
  281  charge of an insurance agency may also be the agent in charge of
  282  additional branch office locations of the agency if insurance
  283  activities requiring licensure as an insurance agent do not
  284  occur at any location when an agent is not physically present
  285  and unlicensed employees at the location do not engage in
  286  insurance activities requiring licensure as an insurance agent
  287  or customer representative.
  288         (c) An insurance agency and each branch place of business
  289  of an insurance agency shall designate an agent in charge and
  290  file the name and license number of the agent in charge and the
  291  physical address of the insurance agency location with the
  292  department and the department’s website. The designation of the
  293  agent in charge may be changed at the option of the agency. A
  294  change of the designated agent in charge is effective upon
  295  notice to the department. Notice to the department must be
  296  provided within 30 days after such change.
  297         (d) An insurance agency location may not conduct the
  298  business of insurance unless an agent in charge is designated by
  299  and providing services to the agency at all times. If the agent
  300  in charge designated with the department ends his or her
  301  affiliation with the agency for any reason and the agency fails
  302  to designate another agent in charge within 30 days as provided
  303  in paragraph (c) and such failure continues for 90 days, the
  304  agency license automatically expires on the 91st day after the
  305  date the designated agent in charge ended his or her affiliation
  306  with the agency.
  307         (e) For purposes of this subsection, an “agent in charge”
  308  is the licensed and appointed agent responsible for the
  309  supervision of all individuals within an insurance agency
  310  location, regardless of whether the agent in charge handles a
  311  specific transaction or deals with the general public in the
  312  solicitation or negotiation of insurance contracts or the
  313  collection or accounting of money.
  314         (f) An agent in charge of an insurance agency is
  315  accountable for the wrongful acts, misconduct, or violations of
  316  this code committed by the licensee or by any person under his
  317  or her supervision while acting on behalf of the agency.
  318  However, an agent in charge is not criminally liable for any act
  319  unless the agent in charge personally committed the act or knew
  320  or should have known of the act and of the facts constituting a
  321  violation of this code.
  322         Section 4. Paragraph (b) of subsection (1) and subsection
  323  (7) of section 626.112, Florida Statutes, is amended to read:
  324         626.112 License and appointment required; agents, customer
  325  representatives, adjusters, insurance agencies, service
  326  representatives, managing general agents.—
  327         (1)
  328         (b) Except as provided in subsection (6) or in applicable
  329  department rules, and in addition to other conduct described in
  330  this chapter with respect to particular types of agents, a
  331  license as an insurance agent, service representative, customer
  332  representative, or limited customer representative is required
  333  in order to engage in the solicitation of insurance. Effective
  334  October 1, 2014, limited customer representative licenses may
  335  not be issued. For purposes of this requirement, as applicable
  336  to any of the license types described in this section, the
  337  solicitation of insurance is the attempt to persuade any person
  338  to purchase an insurance product by:
  339         1. Describing the benefits or terms of insurance coverage,
  340  including premiums or rates of return;
  341         2. Distributing an invitation to contract to prospective
  342  purchasers;
  343         3. Making general or specific recommendations as to
  344  insurance products;
  345         4. Completing orders or applications for insurance
  346  products;
  347         5. Comparing insurance products, advising as to insurance
  348  matters, or interpreting policies or coverages; or
  349         6. Offering or attempting to negotiate on behalf of another
  350  person a viatical settlement contract as defined in s. 626.9911.
  352  However, an employee leasing company licensed under pursuant to
  353  chapter 468 which is seeking to enter into a contract with an
  354  employer that identifies products and services offered to
  355  employees may deliver proposals for the purchase of employee
  356  leasing services to prospective clients of the employee leasing
  357  company setting forth the terms and conditions of doing
  358  business; classify employees as permitted by s. 468.529; collect
  359  information from prospective clients and other sources as
  360  necessary to perform due diligence on the prospective client and
  361  to prepare a proposal for services; provide and receive
  362  enrollment forms, plans, and other documents; and discuss or
  363  explain in general terms the conditions, limitations, options,
  364  or exclusions of insurance benefit plans available to the client
  365  or employees of the employee leasing company were the client to
  366  contract with the employee leasing company. Any advertising
  367  materials or other documents describing specific insurance
  368  coverages must identify and be from a licensed insurer or its
  369  licensed agent or a licensed and appointed agent employed by the
  370  employee leasing company. The employee leasing company may not
  371  advise or inform the prospective business client or individual
  372  employees of specific coverage provisions, exclusions, or
  373  limitations of particular plans. As to clients for which the
  374  employee leasing company is providing services pursuant to s.
  375  468.525(4), the employee leasing company may engage in
  376  activities permitted by ss. 626.7315, 626.7845, and 626.8305,
  377  subject to the restrictions specified in those sections. If a
  378  prospective client requests more specific information concerning
  379  the insurance provided by the employee leasing company, the
  380  employee leasing company must refer the prospective business
  381  client to the insurer or its licensed agent or to a licensed and
  382  appointed agent employed by the employee leasing company.
  383         Section 5. Effective January 1, 2015, subsection (7) of
  384  section 626.112, Florida Statutes, is amended to read:
  385         626.112 License and appointment required; agents, customer
  386  representatives, adjusters, insurance agencies, service
  387  representatives, managing general agents.—
  388         (7)(a) An Effective October 1, 2006, no individual, firm,
  389  partnership, corporation, association, or any other entity may
  390  not shall act in its own name or under a trade name, directly or
  391  indirectly, as an insurance agency, unless it possesses complies
  392  with s. 626.172 with respect to possessing an insurance agency
  393  license issued pursuant to s. 626.172 for each place of business
  394  at which it engages in any activity that which may be performed
  395  only by a licensed insurance agent. However, an insurance agency
  396  that is owned and operated by a single licensed agent conducting
  397  business in his or her individual name and not employing or
  398  otherwise using the services of or appointing other licensees is
  399  exempt from the agency licensing requirements of this
  400  subsection.
  401         (b) A branch place of business which is established by a
  402  licensed agency is considered a branch agency and is not
  403  required to be licensed if it transacts business under the same
  404  name and federal tax identification number as the licensed
  405  agency, has designated a licensed agent in charge of the
  406  location as required by s. 626.0428, and has submitted the
  407  address and telephone number of the location to the department
  408  for inclusion in the licensing record of the licensed agency
  409  within 30 days after insurance transactions begin at the
  410  location Each agency engaged in business in this state before
  411  January 1, 2003, which is wholly owned by insurance agents
  412  currently licensed and appointed under this chapter, each
  413  incorporated agency whose voting shares are traded on a
  414  securities exchange, each agency designated and subject to
  415  supervision and inspection as a branch office under the rules of
  416  the National Association of Securities Dealers, and each agency
  417  whose primary function is offering insurance as a service or
  418  member benefit to members of a nonprofit corporation may file an
  419  application for registration in lieu of licensure in accordance
  420  with s. 626.172(3). Each agency engaged in business before
  421  October 1, 2006, shall file an application for licensure or
  422  registration on or before October 1, 2006.
  423         (c)1. If an agency is required to be licensed but fails to
  424  file an application for licensure in accordance with this
  425  section, the department shall impose on the agency an
  426  administrative penalty in an amount of up to $10,000.
  427         2. If an agency is eligible for registration but fails to
  428  file an application for registration or an application for
  429  licensure in accordance with this section, the department shall
  430  impose on the agency an administrative penalty in an amount of
  431  up to $5,000.
  432         (d)(b)Effective October 1, 2015, the department must
  433  automatically convert the registration of an approved a
  434  registered insurance agency to shall, as a condition precedent
  435  to continuing business, obtain an insurance agency license if
  436  the department finds that, with respect to any majority owner,
  437  partner, manager, director, officer, or other person who manages
  438  or controls the agency, any person has:
  439         1. Been found guilty of, or has pleaded guilty or nolo
  440  contendere to, a felony in this state or any other state
  441  relating to the business of insurance or to an insurance agency,
  442  without regard to whether a judgment of conviction has been
  443  entered by the court having jurisdiction of the cases.
  444         2. Employed any individual in a managerial capacity or in a
  445  capacity dealing with the public who is under an order of
  446  revocation or suspension issued by the department. An insurance
  447  agency may request, on forms prescribed by the department,
  448  verification of any person’s license status. If a request is
  449  mailed within 5 working days after an employee is hired, and the
  450  employee’s license is currently suspended or revoked, the agency
  451  shall not be required to obtain a license, if the unlicensed
  452  person’s employment is immediately terminated.
  453         3. Operated the agency or permitted the agency to be
  454  operated in violation of s. 626.747.
  455         4. With such frequency as to have made the operation of the
  456  agency hazardous to the insurance-buying public or other
  457  persons:
  458         a. Solicited or handled controlled business. This
  459  subparagraph shall not prohibit the licensing of any lending or
  460  financing institution or creditor, with respect to insurance
  461  only, under credit life or disability insurance policies of
  462  borrowers from the institutions, which policies are subject to
  463  part IX of chapter 627.
  464         b. Misappropriated, converted, or unlawfully withheld
  465  moneys belonging to insurers, insureds, beneficiaries, or others
  466  and received in the conduct of business under the license.
  467         c. Unlawfully rebated, attempted to unlawfully rebate, or
  468  unlawfully divided or offered to divide commissions with
  469  another.
  470         d. Misrepresented any insurance policy or annuity contract,
  471  or used deception with regard to any policy or contract, done
  472  either in person or by any form of dissemination of information
  473  or advertising.
  474         e. Violated any provision of this code or any other law
  475  applicable to the business of insurance in the course of dealing
  476  under the license.
  477         f. Violated any lawful order or rule of the department.
  478         g. Failed or refused, upon demand, to pay over to any
  479  insurer he or she represents or has represented any money coming
  480  into his or her hands belonging to the insurer.
  481         h. Violated the provision against twisting as defined in s.
  482  626.9541(1)(l).
  483         i. In the conduct of business, engaged in unfair methods of
  484  competition or in unfair or deceptive acts or practices, as
  485  prohibited under part IX of this chapter.
  486         j. Willfully overinsured any property insurance risk.
  487         k. Engaged in fraudulent or dishonest practices in the
  488  conduct of business arising out of activities related to
  489  insurance or the insurance agency.
  490         l. Demonstrated lack of fitness or trustworthiness to
  491  engage in the business of insurance arising out of activities
  492  related to insurance or the insurance agency.
  493         m. Authorized or knowingly allowed individuals to transact
  494  insurance who were not then licensed as required by this code.
  495         5. Knowingly employed any person who within the preceding 3
  496  years has had his or her relationship with an agency terminated
  497  in accordance with paragraph (d).
  498         6. Willfully circumvented the requirements or prohibitions
  499  of this code.
  500         Section 6. Subsections (2), (3), and (4) of section
  501  626.172, Florida Statutes, are amended to read:
  502         626.172 Application for insurance agency license.—
  503         (2) An application for an insurance agency license must
  504  shall be signed by an individual required to be listed in the
  505  application under paragraph (a) the owner or owners of the
  506  agency. If the agency is incorporated, the application shall be
  507  signed by the president and secretary of the corporation. An
  508  insurance agency may allow a third party to complete, submit,
  509  and sign an application on the insurance agency’s behalf, but
  510  the insurance agency is responsible for ensuring that the
  511  information on the application is true and correct and is
  512  accountable for any misstatements or misrepresentations. The
  513  application for an insurance agency license must shall include:
  514         (a) The name of each majority owner, partner, officer, and
  515  director, president, senior vice president, secretary,
  516  treasurer, and limited liability company member, who directs or
  517  participates in the management or control of the insurance
  518  agency, whether through ownership of voting securities, by
  519  contract, by ownership of an agency bank account, or otherwise.
  520         (b) The residence address of each person required to be
  521  listed in the application under paragraph (a).
  522         (c) The name, principal business street address, and e-mail
  523  address of the insurance agency and the name, address, and e
  524  mail address of the agency’s registered agent or person or
  525  company authorized to accept service on behalf of the agency its
  526  principal business address.
  527         (d) The name, physical address, e-mail address, and
  528  telephone number location of each branch agency and the date
  529  that the branch location begins transacting insurance office and
  530  the name under which each agency office conducts or will conduct
  531  business.
  532         (e) The name of each agent to be in full-time charge of an
  533  agency office and specification of which office, including
  534  branch locations.
  535         (f) The fingerprints of each of the following:
  536         1. A sole proprietor;
  537         2. Each individual required to be listed in the application
  538  under paragraph (a) partner; and
  539         3. Each owner of an unincorporated agency;
  540         3.4. Each individual owner who directs or participates in
  541  the management or control of an incorporated agency whose shares
  542  are not traded on a securities exchange;
  543         5. The president, senior vice presidents, treasurer,
  544  secretary, and directors of the agency; and
  545         6. Any other person who directs or participates in the
  546  management or control of the agency, whether through the
  547  ownership of voting securities, by contract, or otherwise.
  549  Fingerprints must be taken by a law enforcement agency or other
  550  entity approved by the department and must be accompanied by the
  551  fingerprint processing fee specified in s. 624.501. Fingerprints
  552  must shall be processed in accordance with s. 624.34. However,
  553  fingerprints need not be filed for an any individual who is
  554  currently licensed and appointed under this chapter. This
  555  paragraph does not apply to corporations whose voting shares are
  556  traded on a securities exchange.
  557         (g) Such additional information as the department requires
  558  by rule to ascertain the trustworthiness and competence of
  559  persons required to be listed on the application and to
  560  ascertain that such persons meet the requirements of this code.
  561  However, the department may not require that credit or character
  562  reports be submitted for persons required to be listed on the
  563  application.
  564         (3)(h)Beginning October 1, 2005, The department must shall
  565  accept the uniform application for nonresident agency licensure.
  566  The department may adopt by rule revised versions of the uniform
  567  application.
  568         (3)The department shall issue a registration as an
  569  insurance agency to any agency that files a written application
  570  with the department and qualifies for registration. The
  571  application for registration shall require the agency to provide
  572  the same information required for an agency licensed under
  573  subsection (2), the agent identification number for each owner
  574  who is a licensed agent, proof that the agency qualifies for
  575  registration as provided in s. 626.112(7), and any other
  576  additional information that the department determines is
  577  necessary in order to demonstrate that the agency qualifies for
  578  registration. The application must be signed by the owner or
  579  owners of the agency. If the agency is incorporated, the
  580  application must be signed by the president and the secretary of
  581  the corporation. An agent who owns the agency need not file
  582  fingerprints with the department if the agent obtained a license
  583  under this chapter and the license is currently valid.
  584         (a) If an application for registration is denied, the
  585  agency must file an application for licensure no later than 30
  586  days after the date of the denial of registration.
  587         (b) A registered insurance agency must file an application
  588  for licensure no later than 30 days after the date that any
  589  person who is not a licensed and appointed agent in this state
  590  acquires any ownership interest in the agency. If an agency
  591  fails to file an application for licensure in compliance with
  592  this paragraph, the department shall impose an administrative
  593  penalty in an amount of up to $5,000 on the agency.
  594         (c) Sections 626.6115 and 626.6215 do not apply to agencies
  595  registered under this subsection.
  596         (4) The department must shall issue a license or
  597  registration to each agency upon approval of the application,
  598  and each agency location must shall display the license or
  599  registration prominently in a manner that makes it clearly
  600  visible to any customer or potential customer who enters the
  601  agency location.
  602         Section 7. Present subsection (6) of section 626.311,
  603  Florida Statutes, is redesignated as subsection (7), and a new
  604  subsection (6) is added to that section, to read:
  605         626.311 Scope of license.—
  606         (6) An agent who appoints his or her license as an
  607  unaffiliated insurance agent may not hold an appointment from an
  608  insurer for any license he or she holds; transact, solicit, or
  609  service an insurance contract on behalf of an insurer; interfere
  610  with commissions received or to be received by an insurer
  611  appointed insurance agent or an insurance agency contracted with
  612  or employing insurer-appointed insurance agents; or receive
  613  compensation or any other thing of value from an insurer, an
  614  insurer-appointed insurance agent, or an insurance agency
  615  contracted with or employing insurer-appointed insurance agents
  616  for any transaction or referral occurring after the date of
  617  appointment as an unaffiliated insurance agent. An unaffiliated
  618  insurance agent may continue to receive commissions on sales
  619  that occurred before the date of appointment as an unaffiliated
  620  insurance agent if the receipt of such commissions is disclosed
  621  when making recommendations or evaluating products for a client
  622  that involve products of the entity from which the commissions
  623  are received.
  624         Section 8. Paragraph (d) of subsection (1) of section
  625  626.321, Florida Statutes, is amended to read:
  626         626.321 Limited licenses.—
  627         (1) The department shall issue to a qualified applicant a
  628  license as agent authorized to transact a limited class of
  629  business in any of the following categories of limited lines
  630  insurance:
  631         (d) Motor vehicle rental insurance.—
  632         1. License covering only insurance of the risks set forth
  633  in this paragraph when offered, sold, or solicited with and
  634  incidental to the rental or lease of a motor vehicle and which
  635  applies only to the motor vehicle that is the subject of the
  636  lease or rental agreement and the occupants of the motor
  637  vehicle:
  638         a. Excess motor vehicle liability insurance providing
  639  coverage in excess of the standard liability limits provided by
  640  the lessor in the lessor’s lease to a person renting or leasing
  641  a motor vehicle from the licensee’s employer for liability
  642  arising in connection with the negligent operation of the leased
  643  or rented motor vehicle.
  644         b. Insurance covering the liability of the lessee to the
  645  lessor for damage to the leased or rented motor vehicle.
  646         c. Insurance covering the loss of or damage to baggage,
  647  personal effects, or travel documents of a person renting or
  648  leasing a motor vehicle.
  649         d. Insurance covering accidental personal injury or death
  650  of the lessee and any passenger who is riding or driving with
  651  the covered lessee in the leased or rented motor vehicle.
  652         2. Insurance under a motor vehicle rental insurance license
  653  may be issued only if the lease or rental agreement is for up to
  654  no more than 60 days, the lessee is not provided coverage for
  655  more than 60 consecutive days per lease period, and the lessee
  656  is given written notice that his or her personal insurance
  657  policy providing coverage on an owned motor vehicle may provide
  658  coverage of such risks and that the purchase of the insurance is
  659  not required in connection with the lease or rental of a motor
  660  vehicle. If the lease is extended beyond 60 days, the coverage
  661  may be extended one time only once for up to a period not to
  662  exceed an additional 60 days. Insurance may be provided to the
  663  lessee as an additional insured on a policy issued to the
  664  licensee’s employer.
  665         3. The license may be issued only to the full-time salaried
  666  employee of a licensed general lines agent or to a business
  667  entity that offers motor vehicles for rent or lease if insurance
  668  sales activities authorized by the license are in connection
  669  with and incidental to the rental or lease of a motor vehicle.
  670         a. A license issued to a business entity that offers motor
  671  vehicles for rent or lease encompasses each office, branch
  672  office, employee, authorized representative located at a
  673  designated branch, or place of business making use of the
  674  entity’s business name in order to offer, solicit, and sell
  675  insurance pursuant to this paragraph.
  676         b. The application for licensure must list the name,
  677  address, and phone number for each office, branch office, or
  678  place of business which that is to be covered by the license.
  679  The licensee shall notify the department of the name, address,
  680  and phone number of any new location that is to be covered by
  681  the license before the new office, branch office, or place of
  682  business engages in the sale of insurance pursuant to this
  683  paragraph. The licensee must notify the department within 30
  684  days after closing or terminating an office, branch office, or
  685  place of business. Upon receipt of the notice, the department
  686  shall delete the office, branch office, or place of business
  687  from the license.
  688         c. A licensed and appointed entity is directly responsible
  689  and accountable for all acts of the licensee’s employees.
  690         Section 9. Effective January, 1, 2015, section 626.382,
  691  Florida Statutes, is amended to read:
  692         626.382 Continuation, expiration of license; insurance
  693  agencies.—The license of an any insurance agency shall be issued
  694  for a period of 3 years and shall continue in force until
  695  canceled, suspended, or revoked, or until it is otherwise
  696  terminated or becomes expired by operation of law. A license may
  697  be renewed by submitting a renewal request to the department on
  698  a form adopted by department rule.
  699         Section 10. Section 626.601, Florida Statutes, is amended
  700  to read:
  701         626.601 Improper conduct; investigation inquiry;
  702  fingerprinting.—
  703         (1) The department or office may, upon its own motion or
  704  upon a written complaint signed by an any interested person and
  705  filed with the department or office, inquire into the any
  706  alleged improper conduct of any licensed, approved, or certified
  707  licensee, insurance agency, agent, adjuster, service
  708  representative, managing general agent, customer representative,
  709  title insurance agent, title insurance agency, mediator, neutral
  710  evaluator, navigator, continuing education course provider,
  711  instructor, school official, or monitor group under this code.
  712  The department or office may thereafter initiate an
  713  investigation of any such individual or entity licensee if it
  714  has reasonable cause to believe that the individual or entity
  715  licensee has violated any provision of the insurance code.
  716  During the course of its investigation, the department or office
  717  shall contact the individual or entity licensee being
  718  investigated unless it determines that contacting such
  719  individual or entity person could jeopardize the successful
  720  completion of the investigation or cause injury to the public.
  721         (2) In the investigation by the department or office of the
  722  alleged misconduct, the individual or entity licensee shall, if
  723  whenever so required by the department or office, open the
  724  individual’s or entity’s cause his or her books and records to
  725  be open for inspection for the purpose of such investigation
  726  inquiries.
  727         (3) The Complaints against an individual or entity any
  728  licensee may be informally alleged and are not required to
  729  include need not be in any such language as is necessary to
  730  charge a crime on an indictment or information.
  731         (4) The expense for any hearings or investigations
  732  conducted pursuant to this section under this law, as well as
  733  the fees and mileage of witnesses, may be paid out of the
  734  appropriate fund.
  735         (5) If the department or office, after investigation, has
  736  reason to believe that an individual a licensee may have been
  737  found guilty of or pleaded guilty or nolo contendere to a felony
  738  or a crime related to the business of insurance in this or any
  739  other state or jurisdiction, the department or office may
  740  require the individual licensee to file with the department or
  741  office a complete set of his or her fingerprints, which shall be
  742  accompanied by the fingerprint processing fee set forth in s.
  743  624.501. The fingerprints shall be taken by an authorized law
  744  enforcement agency or other department-approved entity.
  745         (6) The complaint and any information obtained pursuant to
  746  the investigation by the department or office are confidential
  747  and are exempt from the provisions of s. 119.07, unless the
  748  department or office files a formal administrative complaint,
  749  emergency order, or consent order against the individual or
  750  entity licensee. Nothing in This subsection does not shall be
  751  construed to prevent the department or office from disclosing
  752  the complaint or such information as it deems necessary to
  753  conduct the investigation, to update the complainant as to the
  754  status and outcome of the complaint, or to share such
  755  information with any law enforcement agency or other regulatory
  756  body.
  757         Section 11. Effective January 1, 2015, section 626.747,
  758  Florida Statutes, is repealed.
  759         Section 12. Effective January 1, 2015, subsection (1) of
  760  section 626.8411, Florida Statutes, is amended to read:
  761         626.8411 Application of Florida Insurance Code provisions
  762  to title insurance agents or agencies.—
  763         (1) The following provisions of part II applicable to
  764  general lines agents or agencies also apply to title insurance
  765  agents or agencies:
  766         (a) Section 626.734, relating to liability of certain
  767  agents.
  768         (b) Section 626.0428(4)(a) and (b) 626.747, relating to
  769  branch agencies.
  770         (c) Section 626.749, relating to place of business in
  771  residence.
  772         (d) Section 626.753, relating to sharing of commissions.
  773         (e) Section 626.754, relating to rights of agent following
  774  termination of appointment.
  775         Section 13. Subsections (14) and (18) of section 626.854,
  776  Florida Statutes, are amended to read:
  777         626.854 “Public adjuster” defined; prohibitions.—The
  778  Legislature finds that it is necessary for the protection of the
  779  public to regulate public insurance adjusters and to prevent the
  780  unauthorized practice of law.
  781         (14) A company employee adjuster, independent adjuster,
  782  attorney, investigator, or other persons acting on behalf of an
  783  insurer that needs access to an insured or claimant or to the
  784  insured property that is the subject of a claim must provide at
  785  least 48 hours’ notice to the insured or claimant, public
  786  adjuster, or legal representative before scheduling a meeting
  787  with the claimant or an onsite inspection of the insured
  788  property. The insured or claimant may deny access to the
  789  property if the notice has not been provided. The insured or
  790  claimant may waive the 48-hour notice.
  791         (17)(18)The provisions of Subsections (5)-(16) (5)-(17)
  792  apply only to residential property insurance policies and
  793  condominium unit owner policies as defined in s. 718.111(11).
  794         Section 14. Paragraph (c) of subsection (2) and subsection
  795  (3) of section 626.8805, Florida Statutes, are amended to read:
  796         626.8805 Certificate of authority to act as administrator.—
  797         (2) The administrator shall file with the office an
  798  application for a certificate of authority upon a form to be
  799  adopted by the commission and furnished by the office, which
  800  application shall include or have attached the following
  801  information and documents:
  802         (c) The names, addresses, official positions, and
  803  professional qualifications of the individuals employed or
  804  retained by the administrator who are responsible for the
  805  conduct of the affairs of the administrator, including all
  806  members of the board of directors, board of trustees, executive
  807  committee, or other governing board or committee, and the
  808  principal officers in the case of a corporation or, the partners
  809  or members in the case of a partnership or association, and any
  810  other person who exercises control or influence over the affairs
  811  of the administrator.
  812         (3) The applicant shall make available for inspection by
  813  the office copies of all contracts relating to services provided
  814  by the administrator to with insurers or other persons using
  815  utilizing the services of the administrator.
  816         Section 15. Subsections (1) and (3) of section 626.8817,
  817  Florida Statutes, are amended to read:
  818         626.8817 Responsibilities of insurance company with respect
  819  to administration of coverage insured.—
  820         (1) If an insurer uses the services of an administrator,
  821  the insurer is responsible for determining the benefits, premium
  822  rates, underwriting criteria, and claims payment procedures
  823  applicable to the coverage and for securing reinsurance, if any.
  824  The rules pertaining to these matters shall be provided, in
  825  writing, by the insurer or its designee to the administrator.
  826  The responsibilities of the administrator as to any of these
  827  matters shall be set forth in a the written agreement binding
  828  upon between the administrator and the insurer.
  829         (3) If In cases in which an administrator administers
  830  benefits for more than 100 certificateholders on behalf of an
  831  insurer, the insurer shall, at least semiannually, conduct a
  832  review of the operations of the administrator. At least one such
  833  review must be an onsite audit of the operations of the
  834  administrator. The insurer may contract with a qualified third
  835  party to conduct such review.
  836         Section 16. Subsections (1) and (4) of section 626.882,
  837  Florida Statutes, are amended to read:
  838         626.882 Agreement between administrator and insurer;
  839  required provisions; maintenance of records.—
  840         (1) A No person may not act as an administrator without a
  841  written agreement, as required under s. 626.8817, which
  842  specifies the rights, duties, and obligations of the between
  843  such person as administrator and an insurer.
  844         (4) If a policy is issued to a trustee or trustees, a copy
  845  of the trust agreement and any amendments to that agreement
  846  shall be furnished to the insurer or its designee by the
  847  administrator and shall be retained as part of the official
  848  records of both the administrator and the insurer for the
  849  duration of the policy and for 5 years thereafter.
  850         Section 17. Subsections (3), (4), and (5) of section
  851  626.883, Florida Statutes, are amended to read:
  852         626.883 Administrator as intermediary; collections held in
  853  fiduciary capacity; establishment of account; disbursement;
  854  payments on behalf of insurer.—
  855         (3) If charges or premiums deposited in a fiduciary account
  856  have been collected on behalf of or for more than one insurer,
  857  the administrator shall keep records clearly recording the
  858  deposits in and withdrawals from such account on behalf of or
  859  for each insurer. The administrator shall, upon request of an
  860  insurer or its designee, furnish such insurer or designee with
  861  copies of records pertaining to deposits and withdrawals on
  862  behalf of or for such insurer.
  863         (4) The administrator may not pay any claim by withdrawals
  864  from a fiduciary account. Withdrawals from such account shall be
  865  made as provided in the written agreement required under ss.
  866  626.8817 and 626.882 between the administrator and the insurer
  867  for any of the following:
  868         (a) Remittance to an insurer entitled to such remittance.
  869         (b) Deposit in an account maintained in the name of such
  870  insurer.
  871         (c) Transfer to and deposit in a claims-paying account,
  872  with claims to be paid as provided by such insurer.
  873         (d) Payment to a group policyholder for remittance to the
  874  insurer entitled to such remittance.
  875         (e) Payment to the administrator of the commission, fees,
  876  or charges of the administrator.
  877         (f) Remittance of return premium to the person or persons
  878  entitled to such return premium.
  879         (5) All claims paid by the administrator from funds
  880  collected on behalf of the insurer shall be paid only on drafts
  881  of, and as authorized by, such insurer or its designee.
  882         Section 18. Subsection (3) of section 626.884, Florida
  883  Statutes, is amended to read:
  884         626.884 Maintenance of records by administrator; access;
  885  confidentiality.—
  886         (3) The insurer shall retain the right of continuing access
  887  to books and records maintained by the administrator sufficient
  888  to permit the insurer to fulfill all of its contractual
  889  obligations to insured persons, subject to any restrictions in
  890  the written agreement pertaining to between the insurer and the
  891  administrator on the proprietary rights of the parties in such
  892  books and records.
  893         Section 19. Subsections (1) and (2) of section 626.89,
  894  Florida Statutes, are amended to read:
  895         626.89 Annual financial statement and filing fee; notice of
  896  change of ownership.—
  897         (1) Each authorized administrator shall annually file with
  898  the office a full and true statement of its financial condition,
  899  transactions, and affairs within 3 months after the end of the
  900  administrator’s fiscal year. The statement shall be filed
  901  annually on or before March 1 or within such extension of time
  902  therefor as the office for good cause may have granted. The
  903  statement must and shall be for the preceding fiscal calendar
  904  year and must. The statement shall be in such form and contain
  905  such matters as the commission prescribes and must shall be
  906  verified by at least two officers of the such administrator. An
  907  administrator whose sole stockholder is an association
  908  representing health care providers which is not an affiliate of
  909  an insurer, an administrator of a pooled governmental self
  910  insurance program, or an administrator that is a university may
  911  submit the preceding fiscal year’s statement within 2 months
  912  after its fiscal year end.
  913         (2) Each authorized administrator shall also file an
  914  audited financial statement performed by an independent
  915  certified public accountant. The audited financial statement
  916  shall be filed with the office within 5 months after the end of
  917  the administrator’s fiscal year and be on or before June 1 for
  918  the preceding fiscal calendar year ending December 31. An
  919  administrator whose sole stockholder is an association
  920  representing health care providers which is not an affiliate of
  921  an insurer, an administrator of a pooled governmental self
  922  insurance program, or an administrator that is a university may
  923  submit the preceding fiscal year’s audited financial statement
  924  within 5 months after the end of its fiscal year. An audited
  925  financial statement prepared on a consolidated basis must
  926  include a columnar consolidating or combining worksheet that
  927  must be filed with the statement and must comply with the
  928  following:
  929         (a) Amounts shown on the consolidated audited financial
  930  statement must be shown on the worksheet;
  931         (b) Amounts for each entity must be stated separately; and
  932         (c) Explanations of consolidating and eliminating entries
  933  must be included.
  934         Section 20. Section 626.931, Florida Statutes, is amended
  935  to read:
  936         626.931 Agent affidavit and Insurer reporting
  937  requirements.—
  938         (1) Each surplus lines agent shall on or before the 45th
  939  day following each calendar quarter file with the Florida
  940  Surplus Lines Service Office an affidavit, on forms as
  941  prescribed and furnished by the Florida Surplus Lines Service
  942  Office, stating that all surplus lines insurance transacted by
  943  him or her during such calendar quarter has been submitted to
  944  the Florida Surplus Lines Service Office as required.
  945         (2) The affidavit of the surplus lines agent shall include
  946  efforts made to place coverages with authorized insurers and the
  947  results thereof.
  948         (1)(3) Each foreign insurer accepting premiums shall, on or
  949  before the end of the month following each calendar quarter,
  950  file with the Florida Surplus Lines Service Office a verified
  951  report of all surplus lines insurance transacted by such insurer
  952  for insurance risks located in this state during the such
  953  calendar quarter.
  954         (2)(4) Each alien insurer accepting premiums shall, on or
  955  before June 30 of each year, file with the Florida Surplus Lines
  956  Service Office a verified report of all surplus lines insurance
  957  transacted by such insurer for insurance risks located in this
  958  state during the preceding calendar year.
  959         (3)(5) The department may waive the filing requirements
  960  described in subsections (1) (3) and (2) (4).
  961         (4)(6) Each insurer’s report and supporting information
  962  shall be in a computer-readable format as determined by the
  963  Florida Surplus Lines Service Office or shall be submitted on
  964  forms prescribed by the Florida Surplus Lines Service Office and
  965  shall show for each applicable agent:
  966         (a) A listing of all policies, certificates, cover notes,
  967  or other forms of confirmation of insurance coverage or any
  968  substitutions thereof or endorsements thereto and the
  969  identifying number; and
  970         (b) Any additional information required by the department
  971  or Florida Surplus Lines Service Office.
  972         Section 21. Paragraph (a) of subsection (2) of section
  973  626.932, Florida Statutes, is amended to read:
  974         626.932 Surplus lines tax.—
  975         (2)(a) The surplus lines agent shall make payable to the
  976  department the tax related to each calendar quarter’s business
  977  as reported to the Florida Surplus Lines Service Office, and
  978  remit the tax to the Florida Surplus Lines Service Office on or
  979  before the 45th day after each calendar quarter at the same time
  980  as provided for the filing of the quarterly affidavit, under s.
  981  626.931. The Florida Surplus Lines Service Office shall forward
  982  to the department the taxes and any interest collected pursuant
  983  to paragraph (b), within 10 days after of receipt.
  984         Section 22. Subsection (1) of section 626.935, Florida
  985  Statutes, is amended to read:
  986         626.935 Suspension, revocation, or refusal of surplus lines
  987  agent’s license.—
  988         (1) The department shall deny an application for, suspend,
  989  revoke, or refuse to renew the appointment of a surplus lines
  990  agent and all other licenses and appointments held by the
  991  licensee under this code, on any of the following grounds:
  992         (a) Removal of the licensee’s office from the licensee’s
  993  state of residence.
  994         (b) Removal of the accounts and records of his or her
  995  surplus lines business from this state or the licensee’s state
  996  of residence during the period when such accounts and records
  997  are required to be maintained under s. 626.930.
  998         (c) Closure of the licensee’s office for more than 30
  999  consecutive days.
 1000         (d) Failure to make and file his or her affidavit or
 1001  reports when due as required by s. 626.931.
 1002         (d)(e) Failure to pay the tax or service fee on surplus
 1003  lines premiums, as provided in the Surplus Lines Law.
 1004         (e)(f) Suspension, revocation, or refusal to renew or
 1005  continue the license or appointment as a general lines agent,
 1006  service representative, or managing general agent.
 1007         (f)(g) Lack of qualifications as for an original surplus
 1008  lines agent’s license.
 1009         (g)(h) Violation of this Surplus Lines Law.
 1010         (h)(i)For Any other applicable cause for which the license
 1011  of a general lines agent could be suspended, revoked, or refused
 1012  under s. 626.611 or s. 626.621.
 1013         Section 23. Subsection (1) of section 626.936, Florida
 1014  Statutes, is amended to read:
 1015         626.936 Failure to file reports or pay tax or service fee;
 1016  administrative penalty.—
 1017         (1) A Any licensed surplus lines agent who neglects to file
 1018  a report or an affidavit in the form and within the time
 1019  required under or provided for in the Surplus Lines Law may be
 1020  fined up to $50 per day for each day the neglect continues,
 1021  beginning the day after the report or affidavit was due until
 1022  the date the report or affidavit is received. All sums collected
 1023  under this section shall be deposited into the Insurance
 1024  Regulatory Trust Fund.
 1025         Section 24. Paragraph (q) of subsection (1) of section
 1026  626.9541, Florida Statutes, is amended to read:
 1027         626.9541 Unfair methods of competition and unfair or
 1028  deceptive acts or practices defined.—
 1030  ACTS.—The following are defined as unfair methods of competition
 1031  and unfair or deceptive acts or practices:
 1032         (q) Certain insurance transactions through credit card
 1033  facilities prohibited.—
 1034         1. Except as provided in subparagraph 3., no person shall
 1035  knowingly solicit or negotiate any insurance; seek or accept
 1036  applications for insurance; issue or deliver any policy;
 1037  receive, collect, or transmit premiums, to or for an any
 1038  insurer; or otherwise transact insurance in this state, or
 1039  relative to a subject of insurance resident, located, or to be
 1040  performed in this state, through the arrangement or facilities
 1041  of a credit card facility or organization, for the purpose of
 1042  insuring credit card holders or prospective credit card holders.
 1043  The term “credit card holder” as used in this paragraph means a
 1044  any person who may pay the charge for purchases or other
 1045  transactions through the credit card facility or organization,
 1046  whose credit with such facility or organization is evidenced by
 1047  a credit card identifying such person as being one whose charges
 1048  the credit card facility or organization will pay, and who is
 1049  identified as such upon the credit card either by name, account
 1050  number, symbol, insignia, or any other method or device of
 1051  identification. This subparagraph does not apply as to health
 1052  insurance or to credit life, credit disability, or credit
 1053  property insurance.
 1054         2. If Whenever any person does or performs in this state
 1055  any of the acts in violation of subparagraph 1. for or on behalf
 1056  of an any insurer or credit card facility, such insurer or
 1057  credit card facility shall be deemed held to be doing business
 1058  in this state and, if an insurer, shall be subject to the same
 1059  state, county, and municipal taxes as insurers that have been
 1060  legally qualified and admitted to do business in this state by
 1061  agents or otherwise are subject, the same to be assessed and
 1062  collected against such insurers; and such person so doing or
 1063  performing any of such acts is shall be personally liable for
 1064  all such taxes.
 1065         3. A licensed agent or insurer may solicit or negotiate any
 1066  insurance; seek or accept applications for insurance; issue or
 1067  deliver any policy; receive, collect, or transmit premiums, to
 1068  or for an any insurer; or otherwise transact insurance in this
 1069  state, or relative to a subject of insurance resident, located,
 1070  or to be performed in this state, through the arrangement or
 1071  facilities of a credit card facility or organization, for the
 1072  purpose of insuring credit card holders or prospective credit
 1073  card holders if:
 1074         a. The insurance or policy which is the subject of the
 1075  transaction is noncancelable by any person other than the named
 1076  insured, the policyholder, or the insurer;
 1077         b. Any refund of unearned premium is made directly to the
 1078  credit card holder by mail or electronic transfer; and
 1079         c. The credit card transaction is authorized by the
 1080  signature of the credit card holder or other person authorized
 1081  to sign on the credit card account.
 1083  The conditions enumerated in sub-subparagraphs a.-c. do not
 1084  apply to health insurance or to credit life, credit disability,
 1085  or credit property insurance; and sub-subparagraph c. does not
 1086  apply to property and casualty insurance if so long as the
 1087  transaction is authorized by the insured.
 1088         4. No person may use or disclose information resulting from
 1089  the use of a credit card in conjunction with the purchase of
 1090  insurance if, when such information is to the advantage of the
 1091  such credit card facility or an insurance agent, or is to the
 1092  detriment of the insured or any other insurance agent; except
 1093  that this provision does not prohibit a credit card facility
 1094  from using or disclosing such information in a any judicial
 1095  proceeding or consistent with applicable law on credit
 1096  reporting.
 1097         5. No Such insurance may not shall be sold through a credit
 1098  card facility in conjunction with membership in any automobile
 1099  club. The term “automobile club” means a legal entity that
 1100  which, in consideration of dues, assessments, or periodic
 1101  payments of money, promises its members or subscribers to assist
 1102  them in matters relating to the ownership, operation, use, or
 1103  maintenance of a motor vehicle; however, the term definition of
 1104  automobile clubs does not include persons, associations, or
 1105  corporations that which are organized and operated solely for
 1106  the purpose of conducting, sponsoring, or sanctioning motor
 1107  vehicle races, exhibitions, or contests upon racetracks, or upon
 1108  race courses established and marked as such for the duration of
 1109  such particular event. The words “motor vehicle” used herein
 1110  shall be the same as defined in chapter 320.
 1111         Section 25. Paragraph (b) of subsection (2) of section
 1112  627.062, Florida Statutes, is amended to read:
 1113         627.062 Rate standards.—
 1114         (2) As to all such classes of insurance:
 1115         (b) Upon receiving a rate filing, the office shall review
 1116  the filing to determine whether the if a rate is excessive,
 1117  inadequate, or unfairly discriminatory. In making that
 1118  determination, the office shall, in accordance with generally
 1119  accepted and reasonable actuarial techniques, consider the
 1120  following factors:
 1121         1. Past and prospective loss experience within and without
 1122  this state.
 1123         2. Past and prospective expenses.
 1124         3. The degree of competition among insurers for the risk
 1125  insured.
 1126         4. Investment income reasonably expected by the insurer,
 1127  consistent with the insurer’s investment practices, from
 1128  investable premiums anticipated in the filing, plus any other
 1129  expected income from currently invested assets representing the
 1130  amount expected on unearned premium reserves and loss reserves.
 1131  The commission may adopt rules using reasonable techniques of
 1132  actuarial science and economics to specify the manner in which
 1133  insurers calculate investment income attributable to classes of
 1134  insurance written in this state and the manner in which
 1135  investment income is used to calculate insurance rates. Such
 1136  manner must contemplate allowances for an underwriting profit
 1137  factor and full consideration of investment income that which
 1138  produce a reasonable rate of return; however, investment income
 1139  from invested surplus may not be considered.
 1140         5. The reasonableness of the judgment reflected in the
 1141  filing.
 1142         6. Dividends, savings, or unabsorbed premium deposits
 1143  allowed or returned to Florida policyholders, members, or
 1144  subscribers.
 1145         7. The adequacy of loss reserves.
 1146         8. The cost of reinsurance. The office may not disapprove a
 1147  rate as excessive solely due to the insurer’s insurer having
 1148  obtained catastrophic reinsurance to cover the insurer’s
 1149  estimated 250-year probable maximum loss or any lower level of
 1150  loss.
 1151         9. Trend factors, including trends in actual losses per
 1152  insured unit for the insurer making the filing.
 1153         10. Conflagration and catastrophe hazards, if applicable.
 1154         11. Projected hurricane losses, if applicable, which must
 1155  be estimated using a model or method, or a straight average of
 1156  model results or output ranges, which are independently found to
 1157  be acceptable or reliable by the Florida Commission on Hurricane
 1158  Loss Projection Methodology, and as further provided in s.
 1159  627.0628.
 1160         12. A reasonable margin for underwriting profit and
 1161  contingencies.
 1162         13. The cost of medical services, if applicable.
 1163         14. Other relevant factors that affect the frequency or
 1164  severity of claims or expenses.
 1165         Section 26. Paragraph (d) of subsection (3) of section
 1166  627.0628, Florida Statutes, is amended to read:
 1167         627.0628 Florida Commission on Hurricane Loss Projection
 1168  Methodology; public records exemption; public meetings
 1169  exemption.—
 1171         (d) With respect to a rate filing under s. 627.062, an
 1172  insurer shall employ and may not modify or adjust actuarial
 1173  methods, principles, standards, models, or output ranges found
 1174  by the commission to be accurate or reliable in determining
 1175  hurricane loss factors for use in a rate filing under s.
 1176  627.062. An insurer shall employ and may not modify or adjust
 1177  models found by the commission to be accurate or reliable in
 1178  determining probable maximum loss levels pursuant to paragraph
 1179  (b) with respect to a rate filing under s. 627.062 made more
 1180  than 180 60 days after the commission has made such findings.
 1181  This paragraph does not prohibit an insurer from using a
 1182  straight average of model results or output ranges or using
 1183  straight averages for the purposes of a rate filing under s.
 1184  627.062.
 1185         Section 27. Subsection (8) of section 627.0651, Florida
 1186  Statutes, is amended to read:
 1187         627.0651 Making and use of rates for motor vehicle
 1188  insurance.—
 1189         (8) Rates are not unfairly discriminatory if averaged
 1190  broadly among members of a group; nor are rates unfairly
 1191  discriminatory even though they are lower than rates for
 1192  nonmembers of the group. However, such rates are unfairly
 1193  discriminatory if they are not actuarially measurable and
 1194  credible and sufficiently related to actual or expected loss and
 1195  expense experience of the group so as to ensure assure that
 1196  nonmembers of the group are not unfairly discriminated against.
 1197  Use of a single United States Postal Service zip code as a
 1198  rating territory shall be deemed unfairly discriminatory unless
 1199  filed pursuant to paragraph (1)(a) and such rating territory
 1200  incorporates sufficient actual or expected loss and loss
 1201  adjustment expense experience so as to be actuarially measurable
 1202  and credible.
 1203         Section 28. Present subsections (2) through (4) of section
 1204  627.072, Florida Statutes, are redesignated as subsections (3)
 1205  through (5), respectively, and a new subsection (2) is added to
 1206  that section, to read:
 1207         627.072 Making and use of rates.—
 1208         (2) A retrospective rating plan may contain a provision
 1209  that allows for the negotiation of premium between the employer
 1210  and the insurer for employers having exposure in more than one
 1211  state, an estimated annual standard premium in this state of
 1212  $175,000, and an estimated annual countrywide standard premium
 1213  of $1 million or more for workers’ compensation.
 1214         Section 29. Subsection (2) of section 627.281, Florida
 1215  Statutes, is amended to read:
 1216         627.281 Appeal from rating organization; workers’
 1217  compensation and employer’s liability insurance filings.—
 1218         (2) If the such appeal is based on upon the failure of the
 1219  rating organization to make a filing on behalf of a such member
 1220  or subscriber which is based on a system of expense provisions
 1221  which differs, in accordance with the right granted in s.
 1222  627.072(3) 627.072(2), differs from the system of expense
 1223  provisions included in a filing made by the rating organization,
 1224  the office shall, if it grants the appeal, order the rating
 1225  organization to make the requested filing for use by the
 1226  appellant. In deciding such appeal, the office shall apply the
 1227  applicable standards set forth in ss. 627.062 and 627.072.
 1228         Section 30. Paragraph (h) of subsection (5) of section
 1229  627.311, Florida Statutes, is amended to read:
 1230         627.311 Joint underwriters and joint reinsurers; public
 1231  records and public meetings exemptions.—
 1232         (5)
 1233         (h) Any premium or assessments collected by the plan in
 1234  excess of the amount necessary to fund projected ultimate
 1235  incurred losses and expenses of the plan and not paid to
 1236  insureds of the plan in conjunction with loss prevention or
 1237  dividend programs shall be retained by the plan for future use.
 1238  Any state funds received by the plan in excess of the amount
 1239  necessary to fund deficits in subplan D or any tier shall be
 1240  returned to the state. Any dividend payable to a former insured
 1241  of the plan may be retained by the plan for future use upon such
 1242  terms as set forth in the declaration of dividend.
 1243         Section 31. Subsection (9) of section 627.3518, Florida
 1244  Statutes, is amended to read:
 1245         627.3518 Citizens Property Insurance Corporation
 1246  policyholder eligibility clearinghouse program.—The purpose of
 1247  this section is to provide a framework for the corporation to
 1248  implement a clearinghouse program by January 1, 2014.
 1249         (9) The 45-day notice of nonrenewal requirement set forth
 1250  in s. 627.4133(2)(b)5. 627.4133(2)(b)4.b. applies when a policy
 1251  is nonrenewed by the corporation because the risk has received
 1252  an offer of coverage pursuant to this section which renders the
 1253  risk ineligible for coverage by the corporation.
 1254         Section 32. Section 627.3519, Florida Statutes, is
 1255  repealed.
 1256         Section 33. Section 627.409, Florida Statutes, is amended
 1257  to read:
 1258         627.409 Representations in applications; warranties.—
 1259         (1) Any statement or description made by or on behalf of an
 1260  insured or annuitant in an application for an insurance policy
 1261  or annuity contract, or in negotiations for a policy or
 1262  contract, is a representation and is not a warranty. Except as
 1263  provided in subsection (3), a misrepresentation, omission,
 1264  concealment of fact, or incorrect statement may prevent recovery
 1265  under the contract or policy only if any of the following apply:
 1266         (a) The misrepresentation, omission, concealment, or
 1267  statement is fraudulent or is material either to the acceptance
 1268  of the risk or to the hazard assumed by the insurer.
 1269         (b) If the true facts had been known to the insurer
 1270  pursuant to a policy requirement or other requirement, the
 1271  insurer in good faith would not have issued the policy or
 1272  contract, would not have issued it at the same premium rate,
 1273  would not have issued a policy or contract in as large an
 1274  amount, or would not have provided coverage with respect to the
 1275  hazard resulting in the loss.
 1276         (2) A breach or violation by the insured of a any warranty,
 1277  condition, or provision of a any wet marine or transportation
 1278  insurance policy, contract of insurance, endorsement, or
 1279  application therefor does not void the policy or contract, or
 1280  constitute a defense to a loss thereon, unless such breach or
 1281  violation increased the hazard by any means within the control
 1282  of the insured.
 1283         (3) For residential property insurance, if a policy or
 1284  contract is in effect for more than 90 days, a claim filed by
 1285  the insured may not be denied based on credit information
 1286  available in public records.
 1287         Section 34. Paragraph (b) of subsection (2) of section
 1288  627.4133, Florida Statutes, is amended to read:
 1289         627.4133 Notice of cancellation, nonrenewal, or renewal
 1290  premium.—
 1291         (2) With respect to a any personal lines or commercial
 1292  residential property insurance policy, including a, but not
 1293  limited to, any homeowner’s, mobile home owner’s, farmowner’s,
 1294  condominium association, condominium unit owner’s, apartment
 1295  building, or other policy covering a residential structure or
 1296  its contents:
 1297         (b) The insurer shall give the first-named insured written
 1298  notice of nonrenewal, cancellation, or termination at least 120
 1299  100 days before the effective date of the nonrenewal,
 1300  cancellation, or termination. However, the insurer shall give at
 1301  least 100 days’ written notice, or written notice by June 1,
 1302  whichever is earlier, for any nonrenewal, cancellation, or
 1303  termination that would be effective between June 1 and November
 1304  30. The notice must include the reason or reasons for the
 1305  nonrenewal, cancellation, or termination, except that:
 1306         1. The insurer shall give the first-named insured written
 1307  notice of nonrenewal, cancellation, or termination at least 120
 1308  days prior to the effective date of the nonrenewal,
 1309  cancellation, or termination for a first-named insured whose
 1310  residential structure has been insured by that insurer or an
 1311  affiliated insurer for at least a 5-year period immediately
 1312  prior to the date of the written notice.
 1313         1.2. If cancellation is for nonpayment of premium, at least
 1314  10 days’ written notice of cancellation accompanied by the
 1315  reason therefor must be given. As used in this subparagraph, the
 1316  term “nonpayment of premium” means failure of the named insured
 1317  to discharge when due her or his obligations for paying the
 1318  premium in connection with the payment of premiums on a policy
 1319  or an any installment of such premium, whether the premium is
 1320  payable directly to the insurer or its agent or indirectly under
 1321  any premium finance plan or extension of credit, or failure to
 1322  maintain membership in an organization if such membership is a
 1323  condition precedent to insurance coverage. The term also means
 1324  the failure of a financial institution to honor an insurance
 1325  applicant’s check after delivery to a licensed agent for payment
 1326  of a premium, even if the agent has previously delivered or
 1327  transferred the premium to the insurer. If a dishonored check
 1328  represents the initial premium payment, the contract and all
 1329  contractual obligations are void ab initio unless the nonpayment
 1330  is cured within the earlier of 5 days after actual notice by
 1331  certified mail is received by the applicant or 15 days after
 1332  notice is sent to the applicant by certified mail or registered
 1333  mail., and If the contract is void, any premium received by the
 1334  insurer from a third party must be refunded to that party in
 1335  full.
 1336         2.3. If such cancellation or termination occurs during the
 1337  first 90 days the insurance is in force and the insurance is
 1338  canceled or terminated for reasons other than nonpayment of
 1339  premium, at least 20 days’ written notice of cancellation or
 1340  termination accompanied by the reason therefor must be given
 1341  unless there has been a material misstatement or
 1342  misrepresentation or failure to comply with the underwriting
 1343  requirements established by the insurer.
 1344         3. After the policy has been in effect for 90 days, the
 1345  insurer may not cancel the policy unless there has been a
 1346  material misstatement, a nonpayment of premium, a failure to
 1347  comply with underwriting requirements established by the insurer
 1348  within 90 days after the date of effectuation of coverage, or a
 1349  substantial change in the risk covered by the policy or the
 1350  cancellation is for all insureds under such policies for a class
 1351  of insureds. This subparagraph does not apply to individually
 1352  rated risks having a policy term of less than 90 days.
 1353         4. After a policy or contract has been in effect for 90
 1354  days, the insurer may not cancel or terminate the policy or
 1355  contract based on credit information available in public
 1356  records. The requirement for providing written notice by June 1
 1357  of any nonrenewal that would be effective between June 1 and
 1358  November 30 does not apply to the following situations, but the
 1359  insurer remains subject to the requirement to provide such
 1360  notice at least 100 days before the effective date of
 1361  nonrenewal:
 1362         a. A policy that is nonrenewed due to a revision in the
 1363  coverage for sinkhole losses and catastrophic ground cover
 1364  collapse pursuant to s. 627.706.
 1365         5.b. A policy that is nonrenewed by Citizens Property
 1366  Insurance Corporation, pursuant to s. 627.351(6), for a policy
 1367  that has been assumed by an authorized insurer offering
 1368  replacement coverage to the policyholder is exempt from the
 1369  notice requirements of paragraph (a) and this paragraph. In such
 1370  cases, the corporation must give the named insured written
 1371  notice of nonrenewal at least 45 days before the effective date
 1372  of the nonrenewal.
 1374  After the policy has been in effect for 90 days, the policy may
 1375  not be canceled by the insurer unless there has been a material
 1376  misstatement, a nonpayment of premium, a failure to comply with
 1377  underwriting requirements established by the insurer within 90
 1378  days after the date of effectuation of coverage, or a
 1379  substantial change in the risk covered by the policy or if the
 1380  cancellation is for all insureds under such policies for a given
 1381  class of insureds. This paragraph does not apply to individually
 1382  rated risks having a policy term of less than 90 days.
 1383         6.5. Notwithstanding any other provision of law, an insurer
 1384  may cancel or nonrenew a property insurance policy after at
 1385  least 45 days’ notice if the office finds that the early
 1386  cancellation of some or all of the insurer’s policies is
 1387  necessary to protect the best interests of the public or
 1388  policyholders and the office approves the insurer’s plan for
 1389  early cancellation or nonrenewal of some or all of its policies.
 1390  The office may base such finding upon the financial condition of
 1391  the insurer, lack of adequate reinsurance coverage for hurricane
 1392  risk, or other relevant factors. The office may condition its
 1393  finding on the consent of the insurer to be placed under
 1394  administrative supervision pursuant to s. 624.81 or to the
 1395  appointment of a receiver under chapter 631.
 1396         7.6. A policy covering both a home and a motor vehicle may
 1397  be nonrenewed for any reason applicable to either the property
 1398  or motor vehicle insurance after providing 90 days’ notice.
 1399         Section 35. Subsection (1) of section 627.4137, Florida
 1400  Statutes, is amended to read:
 1401         627.4137 Disclosure of certain information required.—
 1402         (1) Each insurer that provides which does or may provide
 1403  liability insurance coverage to pay all or a portion of a any
 1404  claim that which might be made shall provide, within 30 days
 1405  after of the written request of the claimant, provide a
 1406  statement, under oath, of a corporate officer or the insurer’s
 1407  claims manager, or superintendent, or licensed company adjuster
 1408  setting forth the following information with regard to each
 1409  known policy of insurance, including excess or umbrella
 1410  insurance:
 1411         (a) The name of the insurer.
 1412         (b) The name of each insured.
 1413         (c) The limits of the liability coverage.
 1414         (d) A statement of any policy or coverage defense that the
 1415  which such insurer reasonably believes is available to the such
 1416  insurer at the time of filing such statement.
 1417         (e) A copy of the policy.
 1419  In addition, The insured, or her or his insurance agent, upon
 1420  written request of the claimant or the claimant’s attorney,
 1421  shall also disclose the name and coverage of each known insurer
 1422  to the claimant and shall forward the such request for
 1423  information as required by this subsection to all affected
 1424  insurers. The insurer shall then supply the required information
 1425  required in this subsection to the claimant within 30 days after
 1426  of receipt of such request.
 1427         Section 36. Subsection (1) of section 627.421, Florida
 1428  Statutes, is amended to read:
 1429         627.421 Delivery of policy.—
 1430         (1) Subject to the insurer’s requirement as to payment of
 1431  premium, every policy shall be mailed, delivered, or
 1432  electronically transmitted to the insured or to the person
 1433  entitled thereto within not later than 60 days after the
 1434  effectuation of coverage. Notwithstanding any other provision of
 1435  law, an insurer may allow a policyholder of personal lines
 1436  insurance to affirmatively elect delivery of the policy
 1437  documents, including policies, endorsements, notices, or other
 1438  documents, by electronic means in lieu of delivery by mail.
 1439  Electronic transmission of a policy for commercial risks,
 1440  including, but not limited to, workers’ compensation and
 1441  employers’ liability, commercial automobile liability,
 1442  commercial automobile physical damage, commercial lines
 1443  residential property, commercial nonresidential property, farm
 1444  owners’ insurance, and the types of commercial lines risks set
 1445  forth in s. 627.062(3)(d), constitute shall constitute delivery
 1446  to the insured or to the person entitled to delivery, unless the
 1447  insured or the person entitled to delivery communicates to the
 1448  insurer in writing or electronically that he or she does not
 1449  agree to delivery by electronic means. Electronic transmission
 1450  must shall include a notice to the insured or to the person
 1451  entitled to delivery of a policy of his or her right to receive
 1452  the policy via United States mail rather than via electronic
 1453  transmission. A paper copy of the policy shall be provided to
 1454  the insured or to the person entitled to delivery at his or her
 1455  request.
 1456         Section 37. Subsection (2) of section 627.43141, Florida
 1457  Statutes, is amended to read:
 1458         627.43141 Notice of change in policy terms.—
 1459         (2) A renewal policy may contain a change in policy terms.
 1460  If a renewal policy contains does contain such change, the
 1461  insurer must give the named insured written notice of the
 1462  change, which may must be enclosed along with the written notice
 1463  of renewal premium required by ss. 627.4133 and 627.728 or be
 1464  sent in a separate notice that complies with the nonrenewal
 1465  mailing time requirement for that particular line of business.
 1466  The insurer must also provide a sample copy of the notice to the
 1467  insured’s insurance agent before or at the same time that notice
 1468  is given to the insured. Such notice shall be entitled “Notice
 1469  of Change in Policy Terms.”
 1470         Section 38. Section 627.4553, Florida Statutes, is created
 1471  to read:
 1472         627.4553 Recommendations to surrender.—If an insurance
 1473  agent recommends the surrender of an annuity or life insurance
 1474  policy containing a cash value and is not recommending that the
 1475  proceeds from the surrender be used to fund or purchase another
 1476  annuity or life insurance policy, before execution of the
 1477  surrender, the insurance agent, or the insurance company if no
 1478  agent is involved, shall provide, on a form adopted by rule by
 1479  the department, information concerning the annuity or policy to
 1480  be surrendered, including the amount of any surrender charge,
 1481  the loss of any minimum interest rate guarantees, the amount of
 1482  any tax consequences resulting from the surrender, the amount of
 1483  any forfeited death benefit, and the value of any other
 1484  investment performance guarantees being forfeited as a result of
 1485  the surrender. This section also applies to a person performing
 1486  insurance agent activities pursuant to an exemption from
 1487  licensure under this part.
 1488         Section 39. Paragraph (b) of subsection (4) of section
 1489  627.7015, Florida Statutes, is amended to read:
 1490         627.7015 Alternative procedure for resolution of disputed
 1491  property insurance claims.—
 1492         (4) The department shall adopt by rule a property insurance
 1493  mediation program to be administered by the department or its
 1494  designee. The department may also adopt special rules which are
 1495  applicable in cases of an emergency within the state. The rules
 1496  shall be modeled after practices and procedures set forth in
 1497  mediation rules of procedure adopted by the Supreme Court. The
 1498  rules must shall provide for:
 1499         (b) Qualifications, denial of application, suspension,
 1500  revocation of approval, and other penalties for of mediators as
 1501  provided in s. 627.745 and in the Florida Rules for of Certified
 1502  and Court-Appointed Court Appointed Mediators, and for such
 1503  other individuals as are qualified by education, training, or
 1504  experience as the department determines to be appropriate.
 1505         Section 40. Section 627.70151, Florida Statutes, is created
 1506  to read:
 1507         627.70151 Appraisal; conflicts of interest.—An insurer that
 1508  offers residential coverage, as defined in s. 627.4025, or a
 1509  policyholder that uses an appraisal clause in the property
 1510  insurance contract to establish a process for estimating or
 1511  evaluating the amount of the loss through the use of an
 1512  impartial umpire may challenge the umpire’s impartiality and
 1513  disqualify the proposed umpire only if:
 1514         (1) A familial relationship within the third degree exists
 1515  between the umpire and a party or a representative of a party;
 1516         (2) The umpire has previously represented a party or a
 1517  representative of a party in a professional capacity in the same
 1518  or a substantially related matter;
 1519         (3) The umpire has represented another person in a
 1520  professional capacity on the same or a substantially related
 1521  matter, which includes the claim, same property, or an adjacent
 1522  property and that other person’s interests are materially
 1523  adverse to the interests of any party; or
 1524         (4) The umpire has worked as an employer or employee of a
 1525  party within the preceding 5 years.
 1526         Section 41. Paragraph (c) of subsection (2) of section
 1527  627.706, Florida Statutes, is amended to read:
 1528         627.706 Sinkhole insurance; catastrophic ground cover
 1529  collapse; definitions.—
 1530         (2) As used in ss. 627.706-627.7074, and as used in
 1531  connection with any policy providing coverage for a catastrophic
 1532  ground cover collapse or for sinkhole losses, the term:
 1533         (c) “Neutral evaluator” means a professional engineer or a
 1534  professional geologist who has completed a course of study in
 1535  alternative dispute resolution designed or approved by the
 1536  department for use in the neutral evaluation process, and who is
 1537  determined by the department to be fair and impartial, and who
 1538  is not otherwise ineligible for certification as provided in s.
 1539  627.7074.
 1540         Section 42. Subsections (3), (7), and (18) of section
 1541  627.7074, Florida Statutes, are amended to read:
 1542         627.7074 Alternative procedure for resolution of disputed
 1543  sinkhole insurance claims.—
 1544         (3) Following the receipt of the report required provided
 1545  under s. 627.7073 or the denial of a claim for a sinkhole loss,
 1546  the insurer shall notify the policyholder of his or her right to
 1547  participate in the neutral evaluation program under this section
 1548  if coverage is available under the policy and the claim was
 1549  submitted within the timeframe provided in s. 627.706(5).
 1550  Neutral evaluation supersedes the alternative dispute resolution
 1551  process under s. 627.7015 but does not invalidate the appraisal
 1552  clause of the insurance policy. The insurer shall provide to the
 1553  policyholder the consumer information pamphlet prepared by the
 1554  department pursuant to subsection (1) electronically or by
 1555  United States mail.
 1556         (7) Upon receipt of a request for neutral evaluation, the
 1557  department shall provide the parties a list of certified neutral
 1558  evaluators. The department shall allow the parties to submit
 1559  requests for disqualifying to disqualify evaluators on the list
 1560  for cause.
 1561         (a) The department shall disqualify neutral evaluators for
 1562  cause based only on any of the following grounds:
 1563         1. A familial relationship exists between the neutral
 1564  evaluator and either party or a representative of either party
 1565  within the third degree.
 1566         2. The proposed neutral evaluator has, in a professional
 1567  capacity, previously represented either party or a
 1568  representative of either party, in the same or a substantially
 1569  related matter.
 1570         3. The proposed neutral evaluator has, in a professional
 1571  capacity, represented another person in the same or a
 1572  substantially related matter and that person’s interests are
 1573  materially adverse to the interests of the parties. The term
 1574  “substantially related matter” means participation by the
 1575  neutral evaluator on the same claim, property, or adjacent
 1576  property.
 1577         4. The proposed neutral evaluator has, within the preceding
 1578  5 years, worked as an employer or employee of a any party to the
 1579  case.
 1580         (b) The department shall deny an application, or suspend or
 1581  revoke the certification, of a neutral evaluator to serve in the
 1582  neutral evaluator capacity if the department finds that one or
 1583  more of the following grounds exist:
 1584         1. Lack of one or more of the qualifications for
 1585  certification specified in this section.
 1586         2. Material misstatement, misrepresentation, or fraud in
 1587  obtaining or attempting to obtain the certification.
 1588         3. Demonstrated lack of fitness or trustworthiness to act
 1589  as a neutral evaluator.
 1590         4. Fraudulent or dishonest practices in the conduct of an
 1591  evaluation or in the conduct of business in the financial
 1592  services industry.
 1593         5. Violation of any provision of this code or of a lawful
 1594  order or rule of the department or aiding, instructing, or
 1595  encouraging another party to commit such violation.
 1596         (c)(b) The parties shall appoint a neutral evaluator from
 1597  the department list and promptly inform the department. If the
 1598  parties cannot agree to a neutral evaluator within 14 business
 1599  days, the department shall appoint a neutral evaluator from the
 1600  list of certified neutral evaluators. The department shall allow
 1601  each party to disqualify two neutral evaluators without cause.
 1602  Upon selection or appointment, the department shall promptly
 1603  refer the request to the neutral evaluator.
 1604         (d)(c) Within 14 business days after the referral, the
 1605  neutral evaluator shall notify the policyholder and the insurer
 1606  of the date, time, and place of the neutral evaluation
 1607  conference. The conference may be held by telephone, if feasible
 1608  and desirable. The neutral evaluator shall make reasonable
 1609  efforts to hold the conference within 90 days after the receipt
 1610  of the request by the department. Failure of the neutral
 1611  evaluator to hold the conference within 90 days does not
 1612  invalidate either party’s right to neutral evaluation or to a
 1613  neutral evaluation conference held outside this timeframe.
 1614         (18) The department shall adopt rules of procedure for the
 1615  neutral evaluation process and for certifying, denying or
 1616  suspending the certification of, and revoking certification as,
 1617  a neutral evaluator.
 1618         Section 43. Subsection (8) of section 627.711, Florida
 1619  Statutes, is amended to read:
 1620         627.711 Notice of premium discounts for hurricane loss
 1621  mitigation; uniform mitigation verification inspection form.—
 1622         (8) At its expense, the insurer may require that a uniform
 1623  mitigation verification form provided by a policyholder, a
 1624  policyholder’s agent, or an authorized mitigation inspector or
 1625  inspection company be independently verified by an inspector, an
 1626  inspection company, or an independent third-party quality
 1627  assurance provider that which possesses a quality assurance
 1628  program before accepting the uniform mitigation verification
 1629  form as valid. The insurer may exempt from additional
 1630  independent verification any uniform mitigation verification
 1631  form provided by a policyholder, a policyholder’s agent, an
 1632  authorized mitigation inspector, or an inspection company that
 1633  possesses a quality assurance program that meets the standards
 1634  established by the insurer. A uniform mitigation verification
 1635  form provided by a policyholder, a policyholder’s agent, an
 1636  authorized mitigation inspector, or an inspection company to
 1637  Citizens Property Insurance Corporation is not subject to
 1638  additional verification, and the property is not subject to
 1639  reinspection by the corporation, absent material changes to the
 1640  structure for the term stated on the form if the form signed by
 1641  a qualified inspector was submitted to, reviewed, and verified
 1642  by a quality assurance program approved by the corporation
 1643  before submission to the corporation.
 1644         Section 44. Subsections (1), (2), and (3) of section
 1645  627.7283, Florida Statutes, are amended to read:
 1646         627.7283 Cancellation; return of premium.—
 1647         (1) If the insured cancels a policy of motor vehicle
 1648  insurance, the insurer must mail or electronically transfer the
 1649  unearned portion of any premium paid within 30 days after the
 1650  effective date of the policy cancellation or receipt of notice
 1651  or request for cancellation, whichever is later. This
 1652  requirement applies to a cancellation initiated by an insured
 1653  for any reason.
 1654         (2) If an insurer cancels a policy of motor vehicle
 1655  insurance, the insurer must mail or electronically transfer the
 1656  unearned premium portion of any premium within 15 days after the
 1657  effective date of the policy cancellation.
 1658         (3) If the unearned premium is not mailed or electronically
 1659  transferred within the applicable period, the insurer must pay
 1660  to the insured 8 percent interest on the amount due. If the
 1661  unearned premium is not mailed or electronically transferred
 1662  within 45 days after the applicable period, the insured may
 1663  bring an action against the insurer pursuant to s. 624.155.
 1664         Section 45. Paragraph (a) of subsection (5) of section
 1665  627.736, Florida Statutes, is amended to read:
 1666         627.736 Required personal injury protection benefits;
 1667  exclusions; priority; claims.—
 1669         (a) A physician, hospital, clinic, or other person or
 1670  institution lawfully rendering treatment to an injured person
 1671  for a bodily injury covered by personal injury protection
 1672  insurance may charge the insurer and injured party only a
 1673  reasonable amount pursuant to this section for the services and
 1674  supplies rendered, and the insurer providing such coverage may
 1675  directly pay for such charges directly to the such person or
 1676  institution lawfully rendering such treatment if the insured
 1677  receiving such treatment or his or her guardian has
 1678  countersigned the properly completed invoice, bill, or claim
 1679  form approved by the office upon which such charges are to be
 1680  paid for as having actually been rendered, to the best knowledge
 1681  of the insured or his or her guardian. However, such a charge
 1682  may not exceed the amount the person or institution customarily
 1683  charges for like services or supplies. In determining whether a
 1684  charge for a particular service, treatment, or otherwise is
 1685  reasonable, consideration may be given to evidence of usual and
 1686  customary charges and payments accepted by the provider involved
 1687  in the dispute, reimbursement levels in the community and
 1688  various federal and state medical fee schedules applicable to
 1689  motor vehicle and other insurance coverages, and other
 1690  information relevant to the reasonableness of the reimbursement
 1691  for the service, treatment, or supply.
 1692         1. The insurer may limit reimbursement to 80 percent of the
 1693  following schedule of maximum charges:
 1694         a. For emergency transport and treatment by providers
 1695  licensed under chapter 401, 200 percent of Medicare.
 1696         b. For emergency services and care provided by a hospital
 1697  licensed under chapter 395, 75 percent of the hospital’s usual
 1698  and customary charges.
 1699         c. For emergency services and care as defined by s. 395.002
 1700  provided in a facility licensed under chapter 395 rendered by a
 1701  physician or dentist, and related hospital inpatient services
 1702  rendered by a physician or dentist, the usual and customary
 1703  charges in the community.
 1704         d. For hospital inpatient services, other than emergency
 1705  services and care, 200 percent of the Medicare Part A
 1706  prospective payment applicable to the specific hospital
 1707  providing the inpatient services.
 1708         e. For hospital outpatient services, other than emergency
 1709  services and care, 200 percent of the Medicare Part A Ambulatory
 1710  Payment Classification for the specific hospital providing the
 1711  outpatient services.
 1712         f. For all other medical services, supplies, and care, 200
 1713  percent of the allowable amount under:
 1714         (I) The participating physicians fee schedule of Medicare
 1715  Part B, except as provided in sub-sub-subparagraphs (II) and
 1716  (III).
 1717         (II) Medicare Part B, in the case of services, supplies,
 1718  and care provided by ambulatory surgical centers and clinical
 1719  laboratories.
 1720         (III) The Durable Medical Equipment Prosthetics/Orthotics
 1721  and Supplies fee schedule of Medicare Part B, in the case of
 1722  durable medical equipment.
 1724  However, if such services, supplies, or care is not reimbursable
 1725  under Medicare Part B, as provided in this sub-subparagraph, the
 1726  insurer may limit reimbursement to 80 percent of the maximum
 1727  reimbursable allowance under workers’ compensation, as
 1728  determined under s. 440.13 and rules adopted thereunder which
 1729  are in effect at the time such services, supplies, or care is
 1730  provided. Services, supplies, or care that is not reimbursable
 1731  under Medicare or workers’ compensation is not required to be
 1732  reimbursed by the insurer.
 1733         2. For purposes of subparagraph 1., the applicable fee
 1734  schedule or payment limitation under Medicare is the fee
 1735  schedule or payment limitation in effect on March 1 of the year
 1736  in which the services, supplies, or care is rendered and for the
 1737  area in which such services, supplies, or care is rendered, and
 1738  the applicable fee schedule or payment limitation applies from
 1739  March 1 until the last day of February throughout the remainder
 1740  of the following that year, notwithstanding any subsequent
 1741  change made to the fee schedule or payment limitation, except
 1742  that it may not be less than the allowable amount under the
 1743  applicable schedule of Medicare Part B for 2007 for medical
 1744  services, supplies, and care subject to Medicare Part B.
 1745         3. Subparagraph 1. does not allow the insurer to apply a
 1746  any limitation on the number of treatments or other utilization
 1747  limits that apply under Medicare or workers’ compensation. An
 1748  insurer that applies the allowable payment limitations of
 1749  subparagraph 1. must reimburse a provider who lawfully provided
 1750  care or treatment under the scope of his or her license,
 1751  regardless of whether such provider is entitled to reimbursement
 1752  under Medicare due to restrictions or limitations on the types
 1753  or discipline of health care providers who may be reimbursed for
 1754  particular procedures or procedure codes. However, subparagraph
 1755  1. does not prohibit an insurer from using the Medicare coding
 1756  policies and payment methodologies of the federal Centers for
 1757  Medicare and Medicaid Services, including applicable modifiers,
 1758  to determine the appropriate amount of reimbursement for medical
 1759  services, supplies, or care if the coding policy or payment
 1760  methodology does not constitute a utilization limit.
 1761         4. If an insurer limits payment as authorized by
 1762  subparagraph 1., the person providing such services, supplies,
 1763  or care may not bill or attempt to collect from the insured any
 1764  amount in excess of such limits, except for amounts that are not
 1765  covered by the insured’s personal injury protection coverage due
 1766  to the coinsurance amount or maximum policy limits.
 1767         5. Effective July 1, 2012, An insurer may limit payment as
 1768  authorized by this paragraph only if the insurance policy
 1769  includes a notice at the time of issuance or renewal that the
 1770  insurer may limit payment pursuant to the schedule of charges
 1771  specified in this paragraph. A policy form approved by the
 1772  office satisfies this requirement. If a provider submits a
 1773  charge for an amount less than the amount allowed under
 1774  subparagraph 1., the insurer may pay the amount of the charge
 1775  submitted.
 1776         Section 46. Subsection (1) and paragraphs (a) and (b) of
 1777  subsection (2) of section 627.744, Florida Statutes, are amended
 1778  to read:
 1779         627.744 Required preinsurance inspection of private
 1780  passenger motor vehicles.—
 1781         (1) A private passenger motor vehicle insurance policy
 1782  providing physical damage coverage, including collision or
 1783  comprehensive coverage, may not be issued in this state unless
 1784  the insurer has inspected the motor vehicle in accordance with
 1785  this section. Physical damage coverage on a motor vehicle may
 1786  not be suspended during the term of the policy due to the
 1787  applicant’s failure to provide required documents. However,
 1788  payment of a claim may be conditioned upon the insurer’s receipt
 1789  of the required documents, and physical damage loss occurring
 1790  after the effective date of coverage is not payable until the
 1791  documents are provided to the insurer.
 1792         (2) This section does not apply:
 1793         (a) To a policy for a policyholder who has been insured for
 1794  2 years or longer, without interruption, under a private
 1795  passenger motor vehicle policy that which provides physical
 1796  damage coverage for any vehicle, if the agent of the insurer
 1797  verifies the previous coverage.
 1798         (b) To a new, unused motor vehicle purchased or leased from
 1799  a licensed motor vehicle dealer or leasing company, if the
 1800  insurer is provided with:
 1801         1. A bill of sale, or buyer’s order, or lease agreement
 1802  that which contains a full description of the motor vehicle,
 1803  including all options and accessories; or
 1804         2. A copy of the title or registration that which
 1805  establishes transfer of ownership from the dealer or leasing
 1806  company to the customer and a copy of the window sticker or the
 1807  dealer invoice showing the itemized options and equipment and
 1808  the total retail price of the vehicle.
 1810  For the purposes of this paragraph, the physical damage coverage
 1811  on the motor vehicle may not be suspended during the term of the
 1812  policy due to the applicant’s failure to provide the required
 1813  documents. However, payment of a claim is conditioned upon the
 1814  receipt by the insurer of the required documents, and no
 1815  physical damage loss occurring after the effective date of the
 1816  coverage is payable until the documents are provided to the
 1817  insurer.
 1818         Section 47. Paragraph (b) of subsection (3) of section
 1819  627.745, Florida Statutes, is amended, present subsections (4)
 1820  and (5) of that section are redesignated as subsections (5) and
 1821  (6), respectively, and a new subsection (4) is added to that
 1822  section, to read:
 1823         627.745 Mediation of claims.—
 1824         (3)
 1825         (b) To qualify for approval as a mediator, an individual a
 1826  person must meet one of the following qualifications:
 1827         1. Possess an active certification as a Florida Supreme
 1828  Court certified circuit court mediator. A circuit court mediator
 1829  whose certification is in a lapsed, suspended, or decertified
 1830  status is not eligible to participate in the program a masters
 1831  or doctorate degree in psychology, counseling, business,
 1832  accounting, or economics, be a member of The Florida Bar, be
 1833  licensed as a certified public accountant, or demonstrate that
 1834  the applicant for approval has been actively engaged as a
 1835  qualified mediator for at least 4 years prior to July 1, 1990.
 1836         2. Be an approved department mediator as of July 1, 2014,
 1837  and have conducted at least one mediation on behalf of the
 1838  department within the 4 years immediately preceding that the
 1839  date the application for approval is filed with the department,
 1840  have completed a minimum of a 40-hour training program approved
 1841  by the department and successfully passed a final examination
 1842  included in the training program and approved by the department.
 1843  The training program shall include and address all of the
 1844  following:
 1845         a. Mediation theory.
 1846         b. Mediation process and techniques.
 1847         c. Standards of conduct for mediators.
 1848         d. Conflict management and intervention skills.
 1849         e. Insurance nomenclature.
 1850         (4) The department shall deny an application, or suspend or
 1851  revoke its approval of a mediator or certification of a neutral
 1852  evaluator to serve in such capacity, if the department finds
 1853  that any of the following grounds exist:
 1854         (a) Lack of one or more of the qualifications for approval
 1855  or certification specified in this section.
 1856         (b) Material misstatement, misrepresentation, or fraud in
 1857  obtaining, or attempting to obtain, the approval or
 1858  certification.
 1859         (c) Demonstrated lack of fitness or trustworthiness to act
 1860  as a mediator or neutral evaluator.
 1861         (d) Fraudulent or dishonest practices in the conduct of
 1862  mediation or neutral evaluation or in the conduct of business in
 1863  the financial services industry.
 1864         (e) Violation of any provision of this code or of a lawful
 1865  order or rule of the department, violation of the Florida Rules
 1866  of Certified and Court Appointed Mediators, or aiding,
 1867  instructing, or encouraging another party in committing such a
 1868  violation.
 1870  The department may adopt rules to administer this subsection.
 1871         Section 48. Subsection (8) of section 627.782, Florida
 1872  Statutes, is amended to read:
 1873         627.782 Adoption of rates.—
 1874         (8) Each title insurance agency and insurer licensed to do
 1875  business in this state and each insurer’s direct or retail
 1876  business in this state shall maintain and submit information,
 1877  including revenue, loss, and expense data, as the office
 1878  determines necessary to assist in the analysis of title
 1879  insurance premium rates, title search costs, and the condition
 1880  of the title insurance industry in this state. This information
 1881  must be transmitted to the office annually by May March 31 of
 1882  the year after the reporting year. The commission shall adopt
 1883  rules regarding the collection and analysis of the data from the
 1884  title insurance industry.
 1885         Section 49. Subsections (1), (3), (10), and (12) of section
 1886  628.461, Florida Statutes, are amended to read:
 1887         628.461 Acquisition of controlling stock.—
 1888         (1) A person may not, individually or in conjunction with
 1889  an any affiliated person of such person, acquire directly or
 1890  indirectly, conclude a tender offer or exchange offer for, enter
 1891  into any agreement to exchange securities for, or otherwise
 1892  finally acquire 10 5 percent or more of the outstanding voting
 1893  securities of a domestic stock insurer or of a controlling
 1894  company, unless:
 1895         (a) The person or affiliated person has filed with the
 1896  office and sent to the insurer and controlling company a letter
 1897  of notification regarding the transaction or proposed
 1898  transaction within no later than 5 days after any form of tender
 1899  offer or exchange offer is proposed, or within no later than 5
 1900  days after the acquisition of the securities if no tender offer
 1901  or exchange offer is involved. The notification must be provided
 1902  on forms prescribed by the commission containing information
 1903  determined necessary to understand the transaction and identify
 1904  all purchasers and owners involved;
 1905         (b) The person or affiliated person has filed with the
 1906  office a statement as specified in subsection (3). The statement
 1907  must be completed and filed within 30 days after:
 1908         1. Any definitive acquisition agreement is entered;
 1909         2. Any form of tender offer or exchange offer is proposed;
 1910  or
 1911         3. The acquisition of the securities, if no definitive
 1912  acquisition agreement, tender offer, or exchange offer is
 1913  involved; and
 1914         (c) The office has approved the tender or exchange offer,
 1915  or acquisition if no tender offer or exchange offer is involved,
 1916  and approval is in effect.
 1918  In lieu of a filing as required under this subsection, a party
 1919  acquiring less than 10 percent of the outstanding voting
 1920  securities of an insurer may file a disclaimer of affiliation
 1921  and control. The disclaimer shall fully disclose all material
 1922  relationships and basis for affiliation between the person and
 1923  the insurer as well as the basis for disclaiming the affiliation
 1924  and control. After a disclaimer has been filed, the insurer
 1925  shall be relieved of any duty to register or report under this
 1926  section which may arise out of the insurer’s relationship with
 1927  the person unless and until the office disallows the disclaimer.
 1928  The office shall disallow a disclaimer only after furnishing all
 1929  parties in interest with notice and opportunity to be heard and
 1930  after making specific findings of fact to support the
 1931  disallowance. A filing as required under this subsection must be
 1932  made as to any acquisition that equals or exceeds 10 percent of
 1933  the outstanding voting securities.
 1934         (3) The statement to be filed with the office under
 1935  subsection (1) and furnished to the insurer and controlling
 1936  company must shall contain the following information and any
 1937  additional information as the office deems necessary to
 1938  determine the character, experience, ability, and other
 1939  qualifications of the person or affiliated person of such person
 1940  for the protection of the policyholders and shareholders of the
 1941  insurer and the public:
 1942         (a) The identity of, and the background information
 1943  specified in subsection (4) on, each natural person by whom, or
 1944  on whose behalf, the acquisition is to be made; and, if the
 1945  acquisition is to be made by, or on behalf of, a corporation,
 1946  association, or trust, as to the corporation, association, or
 1947  trust and as to any person who controls either directly or
 1948  indirectly controls the corporation, association, or trust, the
 1949  identity of, and the background information specified in
 1950  subsection (4) on, each director, officer, trustee, or other
 1951  natural person performing duties similar to those of a director,
 1952  officer, or trustee for the corporation, association, or trust;
 1953         (b) The source and amount of the funds or other
 1954  consideration used, or to be used, in making the acquisition;
 1955         (c) Any plans or proposals that which such persons may have
 1956  made to liquidate such insurer, to sell any of its assets or
 1957  merge or consolidate it with any person, or to make any other
 1958  major change in its business or corporate structure or
 1959  management; and any plans or proposals that which such persons
 1960  may have made to liquidate any controlling company of such
 1961  insurer, to sell any of its assets or merge or consolidate it
 1962  with any person, or to make any other major change in its
 1963  business or corporate structure or management;
 1964         (d) The number of shares or other securities which the
 1965  person or affiliated person of such person proposes to acquire,
 1966  the terms of the proposed acquisition, and the manner in which
 1967  the securities are to be acquired; and
 1968         (e) Information as to any contract, arrangement, or
 1969  understanding with any party with respect to any of the
 1970  securities of the insurer or controlling company, including, but
 1971  not limited to, information relating to the transfer of any of
 1972  the securities, option arrangements, puts or calls, or the
 1973  giving or withholding of proxies, which information names the
 1974  party with whom the contract, arrangement, or understanding has
 1975  been entered into and gives the details thereof.
 1976         (10) Upon notification to the office by the domestic stock
 1977  insurer or a controlling company that any person or any
 1978  affiliated person of such person has acquired 10 5 percent or
 1979  more of the outstanding voting securities of the domestic stock
 1980  insurer or controlling company without complying with the
 1981  provisions of this section, the office shall order that the
 1982  person and any affiliated person of such person cease
 1983  acquisition of any further securities of the domestic stock
 1984  insurer or controlling company; however, the person or any
 1985  affiliated person of such person may request a proceeding, which
 1986  proceeding shall be convened within 7 days after the rendering
 1987  of the order for the sole purpose of determining whether the
 1988  person, individually or in connection with an any affiliated
 1989  person of such person, has acquired 10 5 percent or more of the
 1990  outstanding voting securities of a domestic stock insurer or
 1991  controlling company. Upon the failure of the person or
 1992  affiliated person to request a hearing within 7 days, or upon a
 1993  determination at a hearing convened pursuant to this subsection
 1994  that the person or affiliated person has acquired voting
 1995  securities of a domestic stock insurer or controlling company in
 1996  violation of this section, the office may order the person and
 1997  affiliated person to divest themselves of any voting securities
 1998  so acquired.
 1999         (12)(a)A presumption of control may be rebutted by filing
 2000  a disclaimer of control. A person may file a disclaimer of
 2001  control with the office. The disclaimer must fully disclose all
 2002  material relationships and bases for affiliation between the
 2003  person and the insurer as well as the basis for disclaiming the
 2004  affiliation. The disclaimer of control shall be filed on a form
 2005  prescribed by the office, or a person or acquiring party may
 2006  file with the office a copy of a Schedule 13G on file with the
 2007  Securities and Exchange Commission pursuant to Rule 13d-1(b) or
 2008  Rule 13d-1(c) under the Securities Exchange Act of 1934, as
 2009  amended. After a disclaimer is filed, the insurer is relieved of
 2010  any duty to register or report under this section which may
 2011  arise out of the insurer’s relationship with the person, unless
 2012  the office disallows the disclaimer. For the purpose of this
 2013  section, the term “affiliated person” of another person means:
 2014         1. The spouse of such other person;
 2015         2. The parents of such other person and their lineal
 2016  descendants and the parents of such other person’s spouse and
 2017  their lineal descendants;
 2018         3. Any person who directly or indirectly owns or controls,
 2019  or holds with power to vote, 5 percent or more of the
 2020  outstanding voting securities of such other person;
 2021         4. Any person 5 percent or more of the outstanding voting
 2022  securities of which are directly or indirectly owned or
 2023  controlled, or held with power to vote, by such other person;
 2024         5. Any person or group of persons who directly or
 2025  indirectly control, are controlled by, or are under common
 2026  control with such other person;
 2027         6. Any officer, director, partner, copartner, or employee
 2028  of such other person;
 2029         7. If such other person is an investment company, any
 2030  investment adviser of such company or any member of an advisory
 2031  board of such company;
 2032         8. If such other person is an unincorporated investment
 2033  company not having a board of directors, the depositor of such
 2034  company; or
 2035         9. Any person who has entered into an agreement, written or
 2036  unwritten, to act in concert with such other person in acquiring
 2037  or limiting the disposition of securities of a domestic stock
 2038  insurer or controlling company.
 2039         (b) For the purposes of this section, the term “controlling
 2040  company” means any corporation, trust, or association owning,
 2041  directly or indirectly, 25 percent or more of the voting
 2042  securities of one or more domestic stock insurance companies.
 2043         Section 50. Subsection (11) of section 631.717, Florida
 2044  Statutes, is amended to read:
 2045         631.717 Powers and duties of the association.—
 2046         (11) The association is shall not be liable for any civil
 2047  action under s. 624.155 arising from any acts alleged to have
 2048  been committed by a member insurer before prior to its
 2049  liquidation. This subsection does not affect the association’s
 2050  obligation to pay valid insurance policy or contract claims if
 2051  warranted after its independent de novo review of the policies,
 2052  contracts, and claims presented to it, whether domestic or
 2053  foreign, after a Florida domestic rehabilitation or a
 2054  liquidation.
 2055         Section 51. Section 631.737, Florida Statutes, is amended
 2056  to read:
 2057         631.737 Rescission and review generally.—The association
 2058  shall review claims and matters regarding covered policies based
 2059  upon the record available to it on and after the date of
 2060  liquidation. Notwithstanding any other provision of this part,
 2061  in order to allow for orderly claims administration by the
 2062  association, entry of a liquidation order by a court of
 2063  competent jurisdiction tolls shall be deemed to toll for 1 year
 2064  any rescission or noncontestable period allowed by the contract,
 2065  the policy, or by law. The association’s obligation is to pay
 2066  any valid insurance policy or contract claims, if warranted,
 2067  after its independent de novo review of the policies, contracts,
 2068  and claims presented to it, whether domestic or foreign, after a
 2069  rehabilitation or a liquidation.
 2070         Section 52. 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 53. Except as otherwise expressly provided in this
 2158  act, this act shall take effect July 1, 2014.