Florida Senate - 2014                       CS for CS for SB 708
       By the Committees on Appropriations; and Banking and Insurance;
       and Senator Bean
       576-02572-14                                           2014708c2
    1                        A bill to be entitled                      
    2         An act relating to insurance claims; amending s.
    3         626.601, F.S.; adding mediators and neutral evaluators
    4         to the list of individuals or entities that the
    5         Department of Financial Services or the Office of
    6         Insurance Regulation may investigate for alleged
    7         improper conduct; amending s. 627.3518, F.S.;
    8         conforming a cross-reference; amending s. 627.409,
    9         F.S.; providing that a claim for residential property
   10         insurance cannot be denied based on certain credit
   11         information; amending s. 627.4133, F.S.; providing
   12         that a policy or contract be cancelled based on
   13         certain credit information; amending s. 627.7015,
   14         F.S.; revising the rule requirements relating to the
   15         property insurance mediation program administered by
   16         the department; creating s. 627.70151, F.S.; providing
   17         grounds for challenging an umpire’s impartiality in
   18         estimating the amount of a property loss; amending s.
   19         627.706, F.S.; redefining the term “neutral
   20         evaluator”; amending s. 627.7074, F.S.; specifying
   21         grounds for denying, suspending, or revoking approval
   22         of a neutral evaluator; creating s. 627.7142, F.S.;
   23         establishing a Claims Bill of Rights for residential
   24         property insurance policyholders; providing that such
   25         bill of rights does not provide a cause of action;
   26         creating s. 627.715, F.S.; defining terms; providing
   27         requirements for emergency mitigation repair
   28         agreements; requiring an emergency mitigation
   29         contractor to be appropriately certified or to possess
   30         a contracting license; amending s. 627.745, F.S.;
   31         revising qualifications for mediators of personal
   32         injury claims; providing grounds for denying,
   33         suspending, or revoking the application or approval of
   34         a mediator; providing an effective date.
   36  Be It Enacted by the Legislature of the State of Florida:
   38         Section 1. Section 626.601, Florida Statutes, is amended to
   39  read:
   40         626.601 Improper conduct; investigation inquiry;
   41  fingerprinting.—
   42         (1) The department or office may, upon its own motion or
   43  upon a written complaint signed by an any interested person and
   44  filed with the department or office, inquire into the any
   45  alleged improper conduct of an approved, certified, or any
   46  licensed insurance agency, agent, adjuster, service
   47  representative, managing general agent, customer representative,
   48  title insurance agent, title insurance agency, mediator, neutral
   49  evaluator, continuing education course provider, instructor,
   50  school official, or monitor group under this code. The
   51  department or office may thereafter initiate an investigation of
   52  any such individual or entity licensee if it has reasonable
   53  cause to believe that the individual or entity licensee has
   54  violated any provision of the insurance code. During the course
   55  of its investigation, the department or office shall contact the
   56  individual or entity licensee being investigated unless it
   57  determines that contacting such individual or entity person
   58  could jeopardize the successful completion of the investigation
   59  or cause injury to the public.
   60         (2) In the investigation by the department or office of the
   61  alleged misconduct, the individual or entity licensee shall, if
   62  whenever so required by the department or office, open the
   63  individual’s or entity’s cause his or her books and records to
   64  be open for inspection for the purpose of such inquiries.
   65         (3) The Complaints against an individual or entity any
   66  licensee may be informally alleged and are not required to
   67  include language need not be in any such language as is
   68  necessary to charge a crime on an indictment or information.
   69         (4) The expense for any hearings or investigations
   70  conducted pursuant to under this section law, as well as the
   71  fees and mileage of witnesses, may be paid out of the
   72  appropriate fund.
   73         (5) If the department or office, after investigation, the
   74  department or office has reason to believe that an individual a
   75  licensee may have been found guilty of or pleaded guilty or nolo
   76  contendere to a felony or a crime related to the business of
   77  insurance in this or any other state or jurisdiction, the
   78  department or office may require the individual licensee to file
   79  with the department or office a complete set of his or her
   80  fingerprints, which shall be accompanied by the fingerprint
   81  processing fee specified set forth in s. 624.501. The
   82  fingerprints must shall be taken by an authorized law
   83  enforcement agency or other department-approved entity.
   84         (6) The complaint and any information obtained pursuant to
   85  the investigation by the department or office are confidential
   86  and are exempt from the provisions of s. 119.07, unless the
   87  department or office files a formal administrative complaint,
   88  emergency order, or consent order against the individual or
   89  entity licensee. Nothing in This subsection does not shall be
   90  construed to prevent the department or office from disclosing
   91  the complaint or such information as it deems necessary to
   92  conduct the investigation, to update the complainant as to the
   93  status and outcome of the complaint, or to share such
   94  information with a any law enforcement agency or other
   95  regulatory body.
   96         Section 2. Subsection (9) of section 627.3518, Florida
   97  Statutes, is amended to read:
   98         627.3518 Citizens Property Insurance Corporation
   99  policyholder eligibility clearinghouse program.—The purpose of
  100  this section is to provide a framework for the corporation to
  101  implement a clearinghouse program by January 1, 2014.
  102         (9) The 45-day notice of nonrenewal requirement set forth
  103  in s. 627.4133(2)(b)5.b. s. 627.4133(2)(b)4.b. applies when a
  104  policy is nonrenewed by the corporation because the risk has
  105  received an offer of coverage pursuant to this section which
  106  renders the risk ineligible for coverage by the corporation.
  107         Section 3. Section 627.409, Florida Statutes, is amended to
  108  read:
  109         627.409 Representations in applications; warranties.—
  110         (1) Any statement or description made by or on behalf of an
  111  insured or annuitant in an application for an insurance policy
  112  or annuity contract, or in negotiations for a policy or
  113  contract, is a representation and is not a warranty. Except as
  114  provided in subsection (3), a misrepresentation, omission,
  115  concealment of fact, or incorrect statement may prevent recovery
  116  under the contract or policy only if any of the following apply:
  117         (a) The misrepresentation, omission, concealment, or
  118  statement is fraudulent or is material either to the acceptance
  119  of the risk or to the hazard assumed by the insurer.
  120         (b) If the true facts had been known to the insurer
  121  pursuant to a policy requirement or other requirement, the
  122  insurer in good faith would not have issued the policy or
  123  contract, would not have issued it at the same premium rate,
  124  would not have issued a policy or contract in as large an
  125  amount, or would not have provided coverage with respect to the
  126  hazard resulting in the loss.
  127         (2) A breach or violation by the insured of a any warranty,
  128  condition, or provision of a any wet marine or transportation
  129  insurance policy, contract of insurance, endorsement, or
  130  application therefor does not void the policy or contract, or
  131  constitute a defense to a loss thereon, unless such breach or
  132  violation increased the hazard by any means within the control
  133  of the insured.
  134         (3) For residential property insurance, if a policy or
  135  contract has been in effect for more than 90 days, a claim filed
  136  by the insured cannot be denied based on credit information
  137  available in public record.
  138         Section 4. Paragraph (b) of subsection (2) of section
  139  627.4133, Florida Statutes, is amended to read:
  140         627.4133 Notice of cancellation, nonrenewal, or renewal
  141  premium.—
  142         (2) With respect to any personal lines or commercial
  143  residential property insurance policy, including, but not
  144  limited to, any homeowner’s, mobile home owner’s, farmowner’s,
  145  condominium association, condominium unit owner’s, apartment
  146  building, or other policy covering a residential structure or
  147  its contents:
  148         (b) The insurer shall give the first-named insured written
  149  notice of nonrenewal, cancellation, or termination at least 100
  150  days before the effective date of the nonrenewal, cancellation,
  151  or termination. However, the insurer shall give at least 100
  152  days’ written notice, or written notice by June 1, whichever is
  153  earlier, for any nonrenewal, cancellation, or termination that
  154  would be effective between June 1 and November 30. The notice
  155  must include the reason or reasons for the nonrenewal,
  156  cancellation, or termination, except that:
  157         1. The insurer shall give the first-named insured written
  158  notice of nonrenewal, cancellation, or termination at least 120
  159  days before prior to the effective date of the nonrenewal,
  160  cancellation, or termination for a first-named insured whose
  161  residential structure has been insured by that insurer or an
  162  affiliated insurer for at least 5 years before a 5-year period
  163  immediately prior to the date of the written notice.
  164         2. If cancellation is for nonpayment of premium, at least
  165  10 days’ written notice of cancellation accompanied by the
  166  reason therefor must be given. As used in this subparagraph, the
  167  term “nonpayment of premium” means failure of the named insured
  168  to discharge when due her or his obligations for paying the
  169  premium in connection with the payment of premiums on a policy
  170  or an any installment of such premium, whether the premium is
  171  payable directly to the insurer or its agent or indirectly under
  172  a any premium finance plan or extension of credit, or failure to
  173  maintain membership in an organization if such membership is a
  174  condition precedent to insurance coverage. The term also means
  175  the failure of a financial institution to honor an insurance
  176  applicant’s check after delivery to a licensed agent for payment
  177  of a premium, even if the agent has previously delivered or
  178  transferred the premium to the insurer. If a dishonored check
  179  represents the initial premium payment, the contract and all
  180  contractual obligations are void ab initio unless the nonpayment
  181  is cured within the earlier of 5 days after actual notice by
  182  certified mail is received by the applicant or 15 days after
  183  notice is sent to the applicant by certified mail or registered
  184  mail., and If the contract is void, any premium received by the
  185  insurer from a third party must be refunded to that party in
  186  full.
  187         3. If such cancellation or termination occurs during the
  188  first 90 days the insurance is in force and the insurance is
  189  canceled or terminated for reasons other than nonpayment of
  190  premium, at least 20 days’ written notice of cancellation or
  191  termination accompanied by the reason therefor must be given
  192  unless there has been a material misstatement or
  193  misrepresentation or a failure to comply with the underwriting
  194  requirements established by the insurer.
  195         4. After a policy or contract has been in effect for more
  196  than 90 days, the insurer may not cancel or terminate the policy
  197  or contract based on credit information available in public
  198  records.
  199         5.4. The requirement for providing written notice by June 1
  200  of any nonrenewal that would be effective between June 1 and
  201  November 30 does not apply to the following situations, but the
  202  insurer remains subject to the requirement to provide such
  203  notice at least 100 days before the effective date of
  204  nonrenewal:
  205         a. A policy that is nonrenewed due to a revision in the
  206  coverage for sinkhole losses and catastrophic ground cover
  207  collapse pursuant to s. 627.706.
  208         b. A policy that is nonrenewed by Citizens Property
  209  Insurance Corporation, pursuant to s. 627.351(6), for a policy
  210  that has been assumed by an authorized insurer offering
  211  replacement coverage to the policyholder is exempt from the
  212  notice requirements of paragraph (a) and this paragraph. In such
  213  cases, the corporation must give the named insured written
  214  notice of nonrenewal at least 45 days before the effective date
  215  of the nonrenewal.
  217  After the policy has been in effect for 90 days, the policy may
  218  not be canceled by the insurer unless there has been a material
  219  misstatement, a nonpayment of premium, a failure to comply with
  220  underwriting requirements established by the insurer within 90
  221  days after the date of effectuation of coverage, or a
  222  substantial change in the risk covered by the policy, or if the
  223  cancellation is for all insureds under such policies for a given
  224  class of insureds. This paragraph does not apply to individually
  225  rated risks that have having a policy term of less than 90 days.
  226         6.5. Notwithstanding any other provision of law, an insurer
  227  may cancel or nonrenew a property insurance policy after at
  228  least 45 days’ notice if the office finds that the early
  229  cancellation of some or all of the insurer’s policies is
  230  necessary to protect the best interests of the public or
  231  policyholders and the office approves the insurer’s plan for
  232  early cancellation or nonrenewal of some or all of its policies.
  233  The office may base such finding upon the financial condition of
  234  the insurer, lack of adequate reinsurance coverage for hurricane
  235  risk, or other relevant factors. The office may condition its
  236  finding on the consent of the insurer to be placed under
  237  administrative supervision pursuant to s. 624.81 or to the
  238  appointment of a receiver under chapter 631.
  239         7.6. A policy covering both a home and a motor vehicle may
  240  be nonrenewed for any reason applicable to either the property
  241  or motor vehicle insurance after providing 90 days’ notice.
  242         Section 5. Paragraph (b) of subsection (4) of section
  243  627.7015, Florida Statutes, is amended to read:
  244         627.7015 Alternative procedure for resolution of disputed
  245  property insurance claims.—
  246         (4) The department shall adopt by rule a property insurance
  247  mediation program to be administered by the department or its
  248  designee. The department may also adopt special rules which are
  249  applicable in cases of an emergency within the state. The rules
  250  shall be modeled after practices and procedures set forth in
  251  mediation rules of procedure adopted by the Supreme Court. The
  252  rules shall provide for:
  253         (b) Qualifications, denial of application, suspension,
  254  revocation, and other penalties for of mediators as provided in
  255  s. 627.745 and in the Florida Rules for of Certified and Court
  256  Appointed Court Appointed Mediators, and for such other
  257  individuals as are qualified by education, training, or
  258  experience as the department determines to be appropriate.
  259         Section 6. Section 627.70151, Florida Statutes, is created
  260  to read:
  261         627.70151 Appraisal; conflicts of interest.—An insurer that
  262  offers residential coverage as defined in s. 627.4025, or a
  263  policyholder that uses an appraisal clause in a property
  264  insurance contract to establish a process for using an impartial
  265  umpire to estimate or evaluate the amount of loss, may challenge
  266  an umpire’s impartiality and disqualify the proposed umpire only
  267  if:
  268         (1) A familial relationship within the third degree exists
  269  between the umpire and a party or a representative of a party;
  270         (2) The umpire has previously represented a party or a
  271  representative of a party in a professional capacity in the same
  272  or a substantially related matter;
  273         (3) The umpire has represented another person in a
  274  professional capacity on the same or a substantially related
  275  matter that includes the claim or the same property, and the
  276  other person’s interests are materially adverse to the interests
  277  of a party; or
  278         (4) The umpire has worked as an employer or employee of a
  279  party within the preceding 5 years.
  280         Section 7. Paragraph (c) of subsection (2) of section
  281  627.706, Florida Statutes, is amended to read:
  282         627.706 Sinkhole insurance; catastrophic ground cover
  283  collapse; definitions.—
  284         (2) As used in ss. 627.706-627.7074, and as used in
  285  connection with any policy providing coverage for a catastrophic
  286  ground cover collapse or for sinkhole losses, the term:
  287         (c) “Neutral evaluator” means a professional engineer or a
  288  professional geologist who has completed a course of study in
  289  alternative dispute resolution designed or approved by the
  290  department for use in the neutral evaluation process, and who is
  291  determined by the department to be fair and impartial, and who
  292  is not otherwise ineligible for certification under s. 627.7074.
  293         Section 8. Subsections (7) and (18) of section 627.7074,
  294  Florida Statutes, are amended to read:
  295         627.7074 Alternative procedure for resolution of disputed
  296  sinkhole insurance claims.—
  297         (7) Upon receipt of a request for neutral evaluation, the
  298  department shall provide the parties a list of certified neutral
  299  evaluators. The department shall allow the parties to submit
  300  requests to disqualify evaluators on the list for cause.
  301         (a) The department shall disqualify neutral evaluators for
  302  cause based only on any of the following grounds:
  303         1. A familial relationship within the third degree exists
  304  between the neutral evaluator and either party or a
  305  representative of either party within the third degree.
  306         2. The proposed neutral evaluator has, in a professional
  307  capacity, previously represented either party or a
  308  representative of either party, in the same or a substantially
  309  related matter.
  310         3. The proposed neutral evaluator has, in a professional
  311  capacity, represented another person in the same or a
  312  substantially related matter and that person’s interests are
  313  materially adverse to the interests of the parties. The term
  314  “substantially related matter” means participation by the
  315  neutral evaluator on the same claim, property, or adjacent
  316  property.
  317         4. The proposed neutral evaluator has, within the preceding
  318  5 years, worked as an employer or employee of any party to the
  319  case.
  320         (b) The department shall deny an application for, or
  321  suspend or revoke its approval of, a neutral evaluator if the
  322  department finds that any of the following grounds exist:
  323         1. Lack of one or more of the qualifications specified in
  324  this section for approval or certification.
  325         2. Material misstatement, misrepresentation, or fraud in
  326  obtaining or attempting to obtain approval or certification.
  327         3. Demonstrated lack of fitness or trustworthiness to act
  328  as a neutral evaluator.
  329         4. Fraudulent or dishonest practices in the conduct of an
  330  evaluation or in the conduct of financial services business.
  331         5. Violation of any provision of this code or of a lawful
  332  order or rule of the department, or aiding, instructing, or
  333  encouraging another party in committing such a violation.
  334         (c)(b) The parties shall appoint a neutral evaluator from
  335  the department list and promptly inform the department. If the
  336  parties cannot agree to a neutral evaluator within 14 business
  337  days, the department shall appoint a neutral evaluator from the
  338  list of certified neutral evaluators. The department shall allow
  339  each party to disqualify two neutral evaluators without cause.
  340  Upon selection or appointment, the department shall promptly
  341  refer the request to the neutral evaluator.
  342         (d)(c) Within 14 business days after the referral, the
  343  neutral evaluator shall notify the policyholder and the insurer
  344  of the date, time, and place of the neutral evaluation
  345  conference. The conference may be held by telephone, if feasible
  346  and desirable. The neutral evaluator shall make reasonable
  347  efforts to hold the conference within 90 days after the receipt
  348  of the request by the department. Failure of the neutral
  349  evaluator to hold the conference within 90 days does not
  350  invalidate either party’s right to neutral evaluation or to a
  351  neutral evaluation conference held outside this timeframe.
  352         (18) The department shall adopt rules of procedure for the
  353  neutral evaluation process and for certifying, denying
  354  certification, suspending certification, and revoking the
  355  certification of a neutral evaluator.
  356         Section 9. Section 627.7142, Florida Statutes, is created
  357  to read:
  358         627.7142Homeowner Claims Bill of Rights.—An insurer
  359  issuing a personal lines residential property insurance policy
  360  in this state must provide a Claims Bill of Rights to a
  361  policyholder within 14 calendar days after receiving an initial
  362  communication with respect to a claim, unless the claim follows
  363  an event that is the subject of a declaration of a state of
  364  emergency by the Governor. The purpose of the bill of rights is
  365  to summarize, in simple, nontechnical terms, existing state law
  366  regarding the rights of a personal lines residential property
  367  insurance policyholder who files a claim of loss. The Claims
  368  Bill of Rights is specific to the claims process and does not
  369  represent all of a policyholder’s rights under Florida law
  370  regarding the insurance policy. The Claims Bill of Rights does
  371  not create a civil cause of action by an individual
  372  policyholder, or a class of policyholders, against an insurer or
  373  insurers and does not enlarge, modify, or contravene statutory
  374  requirements, including, but not limited to, ss. 626.854,
  375  626.9541, 627.70131, 627.7015, and 627.7074. The Claims Bill of
  376  Rights does not prohibit an insurer from exercising its right to
  377  repair damaged property in compliance with the terms of an
  378  applicable policy or ss. 627.7011(5)(e) and 627.702(7). The
  379  Claims Bill of Rights shall state:
  381                          HOMEOWNER CLAIMS                         
  382                           BILL OF RIGHTS                          
  383         This Bill of Rights is specific to the claims process
  384         and does not represent all of your rights under
  385         Florida law regarding your policy. There are also
  386         exceptions to the stated timelines when conditions are
  387         beyond your insurance company’s control. This document
  388         does not create a civil cause of action by an
  389         individual policyholder, or a class of policyholders,
  390         against an insurer or insurers and does not prohibit
  391         an insurer from exercising its right to repair damaged
  392         property in compliance with the terms of an applicable
  393         policy.
  395         YOU HAVE THE RIGHT TO:
  396         1. Receive from your insurance company an
  397         acknowledgment of your reported claim within 14 days
  398         after the time you communicated the claim.
  399         2. Upon written request, receive from your
  400         insurance company within 30 days after you have
  401         completed a proof-of-loss statement to your insurance
  402         company, confirmation that your claim is covered in
  403         full, partially covered, or denied, or receive a
  404         written statement that your claim is being
  405         investigated.
  406         3. Within 90 days, receive full settlement
  407         payment for your claim or payment of the undisputed
  408         portion of your claim, or your insurance company’s
  409         denial of your claim.
  410         4. Free mediation of your disputed claim by the
  411         Division of Consumer Services, under most
  412         circumstances and subject to certain restrictions.
  413         5. Neutral evaluation of your disputed claim, if
  414         your claim is for damage caused by a sinkhole and is
  415         covered by your policy.
  416         6. Contact the Florida Department of Financial
  417         Services Division of Consumer Services’ toll-free
  418         helpline for assistance with any insurance claim or
  419         questions pertaining to the handling of your claim.
  420         You can reach the Helpline by phone at...toll free
  421         phone number..., or you can seek assistance online at
  422         the Florida Department of Financial Services Division
  423         of Consumer Services’ website at...website address....
  425         YOU ARE ADVISED TO:
  426         1. Contact your insurance company before entering
  427         into any contract for repairs to confirm any managed
  428         repair policy provisions or optional preferred
  429         vendors.
  430         2. Make and document emergency repairs that are
  431         necessary to prevent further damage. Keep the damaged
  432         property, if feasible, keep all receipts, and take
  433         photographs of damage before and after any repairs.
  434         3. Carefully read any contract that requires you
  435         to pay out-of-pocket expenses or a fee that is based
  436         on a percentage of the insurance proceeds that you
  437         will receive for repairing or replacing your property.
  438         4. Confirm that the contractor you choose is
  439         licensed to do business in Florida. You can verify a
  440         contractor’s license and check to see if there are any
  441         complaints against him or her by calling the Florida
  442         Department of Business and Professional Regulation.
  443         You should also ask the contractor for references from
  444         previous work.
  445         5. Require all contractors to provide proof of
  446         insurance before beginning repairs.
  447         6. Take precautions if the damage requires you to
  448         leave your home, including securing your property and
  449         turning off your gas, water, and electricity, and
  450         contacting your insurance company and provide a phone
  451         number where you can be reached.
  453         Section 10. Section 627.715, Florida Statutes, is created
  454  to read:
  455         627.715 Emergency mitigation services; agreements.—
  456         (1) As used in this section, the term “emergency mitigation
  457  services” means the delivery of goods or services that are
  458  needed to mitigate damage caused by fire, water, or catastrophic
  459  events when delay may exacerbate the damage to the covered
  460  property. Services include the removal of contents, removal of
  461  water or other contaminants, cleaning, sanitizing, incidental
  462  demolition, or other treatment, including preventive activities.
  463         (2) For residential property insurance, an agreement
  464  entered into by a policyholder for emergency mitigation services
  465  to which insurance proceeds may be applied is valid only if:
  466         (a) The agreement is in compliance with any repair
  467  provisions that are contained in the policy;
  468         (b) The agreement specifies in writing the estimated scope
  469  and price of the work before the work is performed;
  470         (c) Any change from the original estimated scope and price
  471  of the work is preapproved by the policyholder; and
  472         (d) The work is performed by an individual or company
  473  possessing a valid certification consistent with the most recent
  474  Standard and Reference Guide for Professional Water Damage
  475  Restoration, as developed by the Institute of Inspection,
  476  Cleaning and Restoration Certification and approved by the
  477  American National Standards Institute, or by a company that
  478  possesses a valid Division I license under chapter 489, which is
  479  providing services within the scope of that license. A company
  480  is considered to be certified for the purposes of this paragraph
  481  if the company representative who possesses a valid
  482  certification personally supervises the emergency mitigation
  483  services performed.
  484         Section 11. Present subsections (3) through (5) of section
  485  627.745, Florida Statutes, are amended, and a new subsection (4)
  486  is added to that section, to read:
  487         627.745 Mediation of claims.—
  488         (3)(a) The department shall approve mediators to conduct
  489  mediations pursuant to this section.
  490         (a) All mediators must file an application under oath for
  491  approval as a mediator.
  492         (b) To qualify for approval as a mediator, an individual a
  493  person must meet one of the following qualifications:
  494         1. Possess active certification by the Florida Supreme
  495  Court as a circuit court mediator. A certified circuit court
  496  mediator in a lapsed, suspended, sanctioned, or decertified
  497  status is not eligible to participate in the mediation program a
  498  masters or doctorate degree in psychology, counseling, business,
  499  accounting, or economics, be a member of The Florida Bar, be
  500  licensed as a certified public accountant, or demonstrate that
  501  the applicant for approval has been actively engaged as a
  502  qualified mediator for at least 4 years prior to July 1, 1990.
  503         2. Be an approved department mediator as of July 1, 2014,
  504  and have conducted at least one mediation on behalf of the
  505  department within the 4 years immediately preceding that the
  506  date. the application for approval is filed with the department,
  507  have completed a minimum of a 40-hour training program approved
  508  by the department and successfully passed a final examination
  509  included in the training program and approved by the department.
  510  The training program shall include and address all of the
  511  following:
  512         a. Mediation theory.
  513         b. Mediation process and techniques.
  514         c. Standards of conduct for mediators.
  515         d. Conflict management and intervention skills.
  516         e. Insurance nomenclature.
  517         (4) The department shall deny an application, or suspend or
  518  revoke its approval of a mediator, or the certification of a
  519  neutral evaluator to serve as a mediator, if the department
  520  finds that any of the following grounds exists:
  521         (a) Lack of one or more of the qualifications specified in
  522  this section for approval or certification.
  523         (b) Material misstatement, misrepresentation, or fraud in
  524  obtaining or attempting to obtain approval or certification.
  525         (c) Demonstrated lack of fitness or trustworthiness to act
  526  as a mediator or neutral evaluator.
  527         (d) Fraudulent or dishonest practices in the conduct of
  528  mediation or neutral evaluation or in the conduct of financial
  529  services business.
  530         (e) Violation of this code, of a lawful order or rule of
  531  the department, or of the Florida Rules for Certified and Court
  532  Appointed Mediators, or the aiding, instructing, or encouraging
  533  of another to commit such violation.
  534         (5)(4) The department shall must adopt rules to administer
  535  this section, including rules of procedure for claims mediation,
  536  taking into consideration a system that which:
  537         (a) Is fair.
  538         (b) Promotes settlement.
  539         (c) Avoids delay.
  540         (d) Is nonadversarial.
  541         (e) Uses a framework for modern mediating technique.
  542         (f) Controls costs and expenses of mediation.
  543         (6)(5) Disclosures and information divulged in the
  544  mediation process are not admissible in any subsequent action or
  545  proceeding relating to the claim or to the cause of action
  546  giving rise to the claim. A person demanding mediation under
  547  this section may not demand or request mediation after a suit is
  548  filed relating to the same facts already mediated is filed.
  549         Section 12. This act shall take effect July 1, 2014.