Florida Senate - 2015 CS for SB 744
By the Committee on Regulated Industries; and Senator Richter
580-02529-15 2015744c1
1 A bill to be entitled
2 An act relating to property insurance appraisal
3 umpires and property insurance appraisers; creating
4 part XVII of chapter 468, F.S., relating to property
5 insurance appraisal umpires; creating the property
6 insurance appraisal umpire licensing program within
7 the Department of Business and Professional
8 Regulation; providing legislative findings; providing
9 applicability; authorizing the department to adopt
10 rules; providing definitions; authorizing the
11 department to establish fees; providing licensing
12 application requirements; providing authority and
13 procedures regarding submission and processing of
14 fingerprints; providing examination requirements;
15 providing application requirements for licensure as a
16 property insurance appraisal umpire; providing
17 licensure renewal requirements; authorizing the
18 department to adopt rules; providing continuing
19 education requirements; providing requirements for the
20 inactivation of a license by a licensee; providing
21 requirements for renewing an inactive license;
22 establishing license reactivation fees; providing for
23 certification of partnerships and corporations
24 offering property insurance appraisal umpire services;
25 providing grounds for compulsory refusal, suspension,
26 or revocation of an umpire’s license; providing
27 grounds for discretionary denial, suspension, or
28 revocation of an umpire’s license; providing ethical
29 standards for property insurance appraisal umpires;
30 creating part XVIII of chapter 468, F.S., relating to
31 property insurance appraisers; creating the property
32 insurance appraiser licensing program within the
33 Department of Business and Professional Regulation;
34 providing legislative findings; providing
35 applicability; authorizing the department to adopt
36 rules; providing definitions; authorizing the
37 department to establish fees; limiting fee amounts;
38 providing licensing application requirements;
39 providing authority and procedures regarding
40 submission and processing of fingerprints; providing
41 examination requirements; providing application
42 requirements for licensure as a property insurance
43 appraiser; providing licensure renewal requirements;
44 authorizing the department to adopt rules; providing
45 continuing education requirements; providing
46 requirements for the inactivation of a license by a
47 licensee; providing requirements for renewing an
48 inactive license; establishing license reactivation
49 fees; providing for certification of partnerships and
50 corporations offering property insurance appraiser
51 services; providing grounds for compulsory refusal,
52 suspension, or revocation of an appraiser’s license;
53 providing grounds for discretionary denial,
54 suspension, or revocation of an appraiser’s license;
55 providing ethical standards; providing an effective
56 date.
57
58 Be It Enacted by the Legislature of the State of Florida:
59
60 Section 1. Part XVII of chapter 468, Florida Statutes,
61 consisting of sections 468.85 through 468.8519, is created to
62 read:
63 PART XVII
64 PROPERTY INSURANCE APPRAISAL UMPIRES
65 468.85 Property insurance appraisal umpire licensing
66 program; legislative purpose; scope of part.—
67 (1) The property insurance appraisal umpire licensing
68 program is created within the Department of Business and
69 Professional Regulation.
70 (2) The Legislature finds it necessary in the interest of
71 the public safety and welfare to prevent damage to real and
72 personal property, to avert economic injury to the residents of
73 this state, and to regulate persons and companies that hold
74 themselves out to the public as qualified to perform as property
75 insurance appraisal umpires.
76 (3) This part applies to residential and commercial
77 residential property insurance contracts and to the umpires and
78 appraisers who participate in the appraisal process.
79 (4) The department may adopt rules to administer this part.
80 468.851 Definitions.—As used in this part, the term:
81 (1) “Appraisal” means the process of estimating or
82 evaluating actual cash value, the amount of loss, or the cost of
83 repair or replacement of property for the purpose of quantifying
84 the monetary value of a property loss claim when an insurer and
85 an insured have failed to mutually agree on the value of the
86 loss pursuant to a residential or commercial residential
87 property insurance contract that is required in such contracts
88 for the resolution of a claim dispute by appraisal.
89 (2) “Competent” means properly licensed, sufficiently
90 qualified, and capable of performing an appraisal.
91 (3) “Department” means the Department of Business and
92 Professional Regulation.
93 (4) “Independent” means not subject to control,
94 restriction, modification, and limitation by the appointing
95 party. An independent umpire shall conduct his or her
96 investigation, evaluation, and estimation without instruction by
97 an appointing party.
98 (5) “Property insurance appraisal umpire” or “umpire” means
99 a competent, independent, licensed, and impartial third party
100 selected by the licensed appraisers for the insurer and the
101 insured to resolve issues that the licensed appraisers are
102 unable to reach an agreement during the course of the appraisal
103 process pursuant to a residential or commercial property
104 insurance contract that is required to provide for resolution of
105 a claim dispute by appraisal.
106 (6) “Property insurance loss appraiser” or “appraiser”
107 means a competent, licensed, and independent and impartial third
108 party selected by an insurer or an insured to develop an
109 appraisal for purposes of the appraisal process under a
110 residential or commercial property insurance contract that
111 provides for resolution of a claim dispute by appraisal.
112 (7) “Uniform application” means the uniform application of
113 the National Association of Insurance Commissioners for
114 nonresident agent licensing, effective January 15, 2001, or
115 subsequent versions adopted by rule by the department.
116 468.8511 Fees.—
117 (1) The department, by rule, may establish fees to be paid
118 for application, examination, reexamination, licensing and
119 renewal, inactive status application, reactivation of inactive
120 licenses, and application for providers of continuing education.
121 The department may also establish by rule a delinquency fee.
122 Fees shall be based on department estimates of the revenue
123 required to implement the provisions of this part. Fees shall be
124 remitted with the application, examination, reexamination,
125 licensing and renewal, inactive status application, and
126 reactivation of inactive licenses, and application for providers
127 of continuing education.
128 (2) The application fee shall not exceed $200 and is
129 nonrefundable. The examination fee shall not exceed $200 plus
130 the actual per applicant cost to the department to purchase the
131 examination, if the department chooses to purchase the
132 examination. The examination fee shall be in an amount that
133 covers the cost of obtaining and administering the examination
134 and shall be refunded if the applicant is found ineligible to
135 sit for the examination.
136 (3) The fee for an initial license shall not exceed $250.
137 (4) The fee for an initial certificate of authorization
138 shall not exceed $250.
139 (5) The fee for a biennial license renewal shall not exceed
140 $500.
141 (6) The fee for application for inactive status shall not
142 exceed $125.
143 (7) The fee for reactivation of an inactive license shall
144 not exceed $250.
145 (8) The fee for applications from providers of continuing
146 education may not exceed $600.
147 (9) The fee for fingerprinting shall be included in the
148 department’s costs for each background check.
149 468.85115 Application for license as a property insurance
150 appraisal umpire.—
151 (1) The department shall not issue a license as a property
152 insurance appraisal umpire to any person except upon written
153 application previously filed with the department, with
154 qualification and advance payment of all applicable fees. Any
155 such application shall be made under oath or affirmation and
156 signed by the applicant. The department shall accept the uniform
157 application for a nonresident property insurance appraisal
158 umpire. The department may adopt revised versions of the uniform
159 application by rule.
160 (2) In the application, the applicant shall set forth:
161 (a) His or her full name, age, social security number,
162 residence address, business address, mailing address, contact
163 telephone numbers, including a business telephone number, and e
164 mail address.
165 (b) Proof that he or she has completed or is in the process
166 of completing any required prelicensing course.
167 (c) Whether he or she has been refused or has voluntarily
168 surrendered or has had suspended or revoked a professional
169 license by the supervising officials of any state.
170 (d) Proof that the applicant meets the requirements for
171 licensure as a property insurance appraisal umpire as required
172 under ss. 468.8511 and 468.8512, and this section.
173 (e) The applicant’s gender.
174 (f) The applicant’s native language.
175 (g) The applicant’s highest achieved level of education.
176 (h) All education requirements that the applicant has
177 completed to qualify as a property insurance appraisal umpire,
178 including the name of the course, the course provider, and the
179 course completion dates.
180 (3) Each application shall be accompanied by payment of any
181 applicable fee.
182 (4) At the time of application, the applicant must be
183 fingerprinted by a law enforcement agency or other entity
184 approved by the department and he or she must pay the
185 fingerprint processing fee in s. 468.8511. Fingerprints must be
186 processed by the Department of Law Enforcement.
187 (5) The Department of Law Enforcement may, to the extent
188 provided for by federal law, exchange state, multistate, and
189 federal criminal history records with the department or office
190 for the purpose of the issuance, denial, suspension, or
191 revocation of a certificate of authority, certification, or
192 license to operate in this state.
193 (6) The Department of Law Enforcement may accept
194 fingerprints of any other person required by statute or rule to
195 submit fingerprints to the department or office or any applicant
196 or licensee regulated by the department or office who is
197 required to demonstrate that he or she has not been convicted of
198 or pled guilty or nolo contendere to a felony or a misdemeanor.
199 (7) The Department of Law Enforcement shall, upon receipt
200 of fingerprints from the department or office, submit the
201 fingerprints to the Federal Bureau of Investigation for a
202 federal criminal history records check.
203 (8) Statewide criminal records obtained through the
204 Department of Law Enforcement, federal criminal records obtained
205 through the Federal Bureau of Investigation, and local criminal
206 records obtained through local law enforcement agencies shall be
207 used by the department and office for the purpose of issuance,
208 denial, suspension, or revocation of certificates of authority,
209 certifications, or licenses issued to operate in this state.
210 (9) The department shall develop and maintain as a public
211 record a current list of licensed property insurance appraisal
212 umpires.
213 468.8512 Examinations.–
214 (1) A person desiring to be licensed as a property
215 insurance appraisal umpire must apply to the department after
216 satisfying the examination requirements of this part.
217 (2) An applicant may practice in this state as a property
218 insurance appraisal umpire if he or she passes the required
219 examination, is of good moral character, and meets one of the
220 following requirements:
221 (a) The applicant is currently licensed, registered,
222 certified, or approved as an engineer as defined in s. 471.005,
223 or as a retired professional engineer as defined in s. 471.005,
224 and has taught or successfully completed 4 hours of classroom
225 coursework, approved by the department, specifically related to
226 construction, building codes, appraisal procedures, appraisal
227 preparation, and any other related material deemed appropriate
228 by the department.
229 (b) The applicant is currently or, within the 5 years
230 immediately preceding the date on which the application is filed
231 with the department, has been licensed, registered, certified,
232 or approved as a general contractor, building contractor, or
233 residential contractor as defined in s. 489.105 and has taught
234 or successfully completed 4 hours of classroom coursework,
235 approved by the department, specifically related to
236 construction, building codes, appraisal procedure, appraisal
237 preparation, and any other related material deemed appropriate
238 by the department.
239 (c) The applicant is currently or, within the 5 years
240 immediately preceding the date on which the application is filed
241 with the department, has been licensed or registered as an
242 architect to engage in the practice of architecture pursuant to
243 part I of chapter 481 and has taught or successfully completed 4
244 hours of classroom coursework, approved by the department,
245 specifically related to construction, building codes, appraisal
246 procedure, appraisal preparation, and any other related material
247 deemed appropriate by the department.
248 (d) The applicant is currently or, within the 5 years
249 immediately preceding the date on which the application is filed
250 with the department, has been a qualified geologist or
251 professional geologist as defined in s. 492.102 and has taught
252 or successfully completed 4 hours of classroom coursework,
253 approved by the department, specifically related to
254 construction, building codes, appraisal procedure, appraisal
255 preparation, and any other related material deemed appropriate
256 by the department.
257 (e) The applicant is currently or, within the 5 years
258 immediately preceding the date on which the application is filed
259 with the department, has been licensed as a certified public
260 accountant as defined in s. 473.302 and has taught or
261 successfully completed 4 hours of classroom coursework, approved
262 by the department, specifically related to construction,
263 building codes, appraisal procedure, appraisal preparation, and
264 any other related material deemed appropriate by the department.
265 (f) The applicant is currently or, within the 5 years
266 immediately preceding the date on which the application is filed
267 with the department, has been a licensed attorney in this state
268 and has taught or successfully completed 4 hours of classroom
269 coursework, approved by the department, specifically related to
270 construction, building codes, appraisal procedure, appraisal
271 preparation, and any other related material deemed appropriate
272 by the department.
273 (g) The applicant has received a baccalaureate degree from
274 an accredited 4-year college or university in the field of
275 engineering, architecture, or building construction and has
276 taught or successfully completed 4 hours of classroom
277 coursework, approved by the department, specifically related to
278 construction, building codes, appraisal procedure, appraisal
279 preparation, and any other related material deemed appropriate
280 by the department.
281 (h) The applicant is a currently licensed adjuster whose
282 license covers all lines of insurance except the life and
283 annuities class. The adjuster’s license must include the
284 property and casualty class of insurance. The currently licensed
285 adjuster must be licensed for at least 5 years to qualify for a
286 property insurance appraisal umpire’s license.
287 (i) The applicant has received a minimum of 8 semester
288 hours or 12 quarter hours of credit from an accredited college
289 or university in the field of accounting, geology, engineering,
290 architecture, or building construction.
291 (j) The applicant has successfully completed 40 hours of
292 classroom coursework, approved by the department, specifically
293 related to construction, building codes, appraisal procedure,
294 appraisal preparation, property insurance, and any other related
295 material deemed appropriate by the department.
296 (3) The department shall review and approve courses of
297 study for the continuing education of property insurance
298 appraisal umpires.
299 (4) The department may not issue a license as a property
300 insurance appraisal umpire to any individual found by it to be
301 untrustworthy or incompetent or who:
302 (a) Has not filed an application with the department in
303 accordance with s. 485.85115.
304 (b) Is not a natural person who is at least 18 years of
305 age.
306 (c) Is not a United States citizen or legal alien who
307 possesses work authorization from the United States Citizenship
308 and Immigration Services.
309 (d) Has not completed the education, experience, or
310 licensing requirements of this section.
311 (5) An incomplete application expires 6 months after the
312 date it is received by the department.
313 (6) An applicant seeking to become licensed under this part
314 may not be rejected solely by virtue of membership or lack of
315 membership in any particular appraisal organization.
316 468.8513 Licensure.–
317 (1) The department shall license any applicant who the
318 department certifies has completed the requirements of ss.
319 468.8511, 468.85115, and 468.8512.
320 (2) The department shall not issue a license by endorsement
321 to any applicant for a property insurance appraisal umpire
322 license who is under investigation in another state for any act
323 that would constitute a violation of this part until such time
324 that the investigation is complete and disciplinary proceedings
325 have been terminated.
326 468.8514 Renewal of license.—
327 (1) The department shall renew a license upon receipt of
328 the renewal application and fee and upon certification by the
329 department that the licensee has satisfactorily completed the
330 continuing education requirements of s. 468.8515.
331 (2) The department shall adopt rules establishing a
332 procedure for the biennial renewal of licenses.
333 468.8515 Continuing education.—
334 (1) The department may not renew a license until the
335 licensee submits satisfactory proof to the department that,
336 during the 2 years before his or her application for renewal,
337 the licensee completed at least 30 hours of continuing education
338 in addition to 5 hours of ethics. Criteria and course content
339 shall be approved by the department by rule.
340 (2) The department may prescribe by rule additional
341 continuing professional education hours, not to exceed 25
342 percent of the total required hours, for failure to complete the
343 required hours by the end of the renewal period.
344 (3) Each umpire course provider, instructor, and classroom
345 course must be approved by and registered with the department
346 before prelicensure courses for property insurance appraisal
347 umpires may be offered. Each classroom course must include a
348 written examination at the conclusion of the course and must
349 cover all of the material contained in the course. A student may
350 not receive credit for the course unless the student achieves a
351 grade of at least 75 percent on the examination.
352 (4) The department shall adopt rules establishing:
353 (a) Standards for the approval, registration, discipline,
354 or removal from registration of course providers, instructors,
355 and courses. The standards must be designed to ensure that
356 instructors have the knowledge, competence, and integrity to
357 fulfill the educational objectives of the prelicensure
358 requirements of this part.
359 (b) A process for determining compliance with the
360 prelicensure requirements of this part.
361
362 The department shall adopt rules prescribing the forms necessary
363 to administer the prelicensure requirements of this part.
364 (5) Approval to teach prescribed or approved appraisal
365 courses does not entitle the instructor to teach any courses
366 outside the scope of this part.
367 468.8516 Inactive license.–
368 (1) A licensee may request that his or her license be
369 placed on inactive status by filing an application with the
370 department.
371 (2) A license that has become inactive may be reactivated
372 upon application to the department. The department may prescribe
373 by rule continuing education requirements as a condition for
374 reactivation of an inactive license. The continuing education
375 requirements for reactivating a license may not exceed 14 hours
376 for each year the license was inactive.
377 (3) The department shall adopt rules relating to licenses
378 that have become inactive and for the renewal of inactive
379 licenses. The department shall prescribe by rule a fee not to
380 exceed $250 for the reactivation of an inactive license and a
381 fee not to exceed $250 for the renewal of an inactive license.
382 468.8517 Certification of partnerships, corporations, and
383 other business entities.–The practice of, or the offer to
384 practice as, a property insurance appraisal umpire by licensees
385 through a partnership, corporation, or other business entity
386 offering property insurance appraisal umpire services to the
387 public, or by a partnership, corporation, or other business
388 entities through licensees under this part as agents, employees,
389 officers, or partners is permitted, subject to the provisions of
390 this part. This section does not allow a corporation or other
391 business entity to hold a license to practice property insurance
392 appraisal umpire services. A partnership, corporation, or other
393 business entity is not relieved of responsibility for the
394 conduct or acts of its agents, employees, or officers by reason
395 of its compliance with this section. An individual practicing as
396 a property insurance appraisal umpire is not relieved of
397 responsibility for professional services performed by reason of
398 his or her employment or relationship with a partnership,
399 corporation, or other business entity.
400 468.8518 Grounds for compulsory refusal, suspension, or
401 revocation of an umpire’s license.–The department shall deny an
402 application for, suspend, revoke, or refuse to renew or continue
403 the license or appointment of any applicant, property insurance
404 appraisal umpire or licensee and shall suspend or revoke the
405 eligibility to hold a license or appointment of any such person
406 if it finds that any one or more of the following applicable
407 grounds exist:
408 (1) Lack of one or more of the qualifications for the
409 license as specified in this part.
410 (2) Material misstatement, misrepresentation, or fraud in
411 obtaining the license or in attempting to obtain the license or
412 appointment.
413 (3) Failure to pass to the satisfaction of the department
414 any examination required under this chapter.
415 (4) That the license or appointment was willfully used, or
416 will be used, to circumvent any of the requirements or
417 prohibitions of this chapter.
418 (5) Demonstrated a lack of fitness or trustworthiness to
419 engage as a property insurance appraisal umpire.
420 (6) Demonstrated a lack of reasonably adequate knowledge
421 and technical competence to engage in the transactions
422 authorized by the license.
423 (7) Fraudulent or dishonest practices in the conduct of
424 business under the license.
425 (8) Willful failure to comply with, or willful violation
426 of, any proper order or rule of the department or willful
427 violation of any provision of this chapter.
428 (9) Having been found guilty of or having plead guilty or
429 nolo contendere to a felony or a crime punishable by
430 imprisonment of 1 year or more under the law of the United
431 States or of any state thereof or under the law of any other
432 country which involves moral turpitude, without regard to
433 whether a judgment of conviction has been entered by the court
434 having jurisdiction of such cases.
435 (10)(a) Violated a duty imposed upon her or him by law or
436 by the terms of a contract, whether written, oral, expressed, or
437 implied, in an appraisal;
438 (b) Has aided, assisted, or conspired with any other person
439 engaged in any such misconduct and in furtherance thereof; or
440 (c) Has formed an intent, design, or scheme to engage in
441 such misconduct and committed an overt act in furtherance of
442 such intent, design, or scheme.
443
444 It is immaterial to a finding that a licensee has committed a
445 violation of this subsection that the victim or intended victim
446 of the misconduct has sustained no damage or loss, that the
447 damage or loss has been settled and paid after the discovery of
448 misconduct, or that such victim or intended victim was a
449 customer or a person in a confidential relationship with the
450 licensee or was an identified member of the general public.
451 (11)(a) Had a registration, license, or certification as an
452 umpire revoked, suspended, or otherwise acted against;
453 (b) Has had his or her registration, license, or
454 certificate to practice or conduct any regulated profession,
455 business, or vocation revoked or suspended by this or any other
456 state, any nation, or any possession or district of the United
457 States; or
458 (c) Has had an application for such registration,
459 licensure, or certification to practice or conduct any regulated
460 profession, business, or vocation denied by this or any other
461 state, any nation, or any possession or district of the United
462 States.
463 (12)(a) Made or filed a report or record, written or oral,
464 which the licensee knows to be false;
465 (b) Has willfully failed to file a report or record
466 required by state or federal law;
467 (c) Has willfully impeded or obstructed such filing; or
468 (d) Has induced another person to impede or obstruct such
469 filing.
470 (13) Accepted an appointment as an umpire if the
471 appointment is contingent upon the umpire reporting a
472 predetermined result, analysis, or opinion, or if the fee to be
473 paid for the services of the umpire is contingent upon the
474 opinion, conclusion, or valuation reached by the umpire.
475 468.85185 Grounds for discretionary denial, suspension, or
476 revocation of an umpire’s license.-The department may deny an
477 application for and suspend, revoke, or refuse to renew or
478 continue a license as a property insurance appraisal umpire if
479 the applicant or licensee has:
480 (1) Failed to timely communicate with the appraisers
481 without good cause.
482 (2) Failed or refused to exercise reasonable diligence in
483 submitting recommendations to the appraisers.
484 (3) Violated any ethical standard for property insurance
485 appraisal umpires set forth in s. 468.8519.
486 (4) Failed to inform the department in writing within 30
487 days after pleading guilty or nolo contendere to, or being
488 convicted or found guilty of, a felony.
489 (5) Failed to timely notify the department of any change in
490 business location, or has failed to fully disclose all business
491 locations from which he or she operates as a property insurance
492 appraisal umpire.
493 468.8519 Ethical standards for property insurance appraisal
494 umpires.—
495 (1) CONFIDENTIALITY.—An umpire shall maintain
496 confidentiality of all information revealed during an appraisal
497 except where disclosure is required by law.
498 (2) RECORDKEEPING.—An umpire shall maintain confidentiality
499 in the storage and disposal of records and may not disclose any
500 identifying information when materials are used for research,
501 training, or statistical compilations.
502 (3) FEES AND EXPENSES.—Fees charged for appraisal services
503 shall be reasonable and consistent with the nature of the case.
504 An umpire shall be guided by the following in determining fees:
505 (a) All charges for services as an umpire based on time may
506 not exceed actual time spent or allocated.
507 (b) Charges for costs shall be for those actually incurred.
508 (c) An umpire may not charge, agree to, or accept as
509 compensation or reimbursement any payment, commission, or fee
510 that is based on a percentage basis, or that is contingent upon
511 arriving at a particular value or any future happening or
512 outcome of the assignment.
513 (4) MAINTENANCE OF RECORDS.—An umpire shall maintain
514 records necessary to support charges for services and expenses,
515 and upon request shall provide an accounting of all applicable
516 charges to the parties. An umpire licensed under this part shall
517 retain original or true copies of any contracts engaging the
518 umpire’s services, appraisal reports, and supporting data
519 assembled and formulated by the umpire in preparing appraisal
520 reports for at least 5 years. The period for retaining the
521 records applicable to each engagement starts on the date of the
522 submission of the appraisal report to the client. The records
523 must be made available by the umpire for inspection and copying
524 by the department upon reasonable notice to the umpire. If an
525 appraisal has been the subject of, or has been admitted as
526 evidence in, a lawsuit, reports, and records, the appraisal must
527 be retained for at least 2 years after the date that the trial
528 ends.
529 (5) ADVERTISING.—An umpire may not engage in marketing
530 practices that contain false or misleading information. An
531 umpire shall ensure that any advertisements of the umpire’s
532 qualifications, services to be rendered, or the appraisal
533 process are accurate and honest. An umpire may not make claims
534 of achieving specific outcomes or promises implying favoritism
535 for the purpose of obtaining business.
536 (6) INTEGRITY AND IMPARTIALITY.—An umpire may not engage in
537 any business, provide any service, or perform any act that would
538 compromise the umpire’s integrity or impartiality.
539 (7) SKILL AND EXPERIENCE.—An umpire shall decline an
540 appointment or selection, withdraw, or request appropriate
541 assistance when the facts and circumstances of the appraisal are
542 beyond the umpire’s skill or experience.
543 (8) GIFTS AND SOLICITATION.—An umpire may not give or
544 accept any gift, favor, loan, or other item of value in an
545 appraisal process except for the umpire’s reasonable fee. During
546 the appraisal process, an umpire may not solicit or otherwise
547 attempt to procure future professional services.
548 Section 2. Part XVIII of chapter 468, Florida Statutes,
549 consisting of sections 468.86 through 468.8619, is created to
550 read:
551 PART XVIII
552 PROPERTY INSURANCE APPRAISERS
553 468.86 Property insurance appraiser licensing program;
554 legislative purpose; scope of part.—
555 (1) The property insurance appraiser licensing program is
556 created within the Department of Business and Professional
557 Regulation.
558 (2) The Legislature finds it necessary and in the interest
559 of the public safety and welfare, to prevent damage to real and
560 personal property, to avert economic injury to the residents of
561 this state, and to regulate persons and companies that hold
562 themselves out to the public as qualified to perform as a
563 property insurance appraiser.
564 (3) This part applies to residential and commercial
565 residential property insurance contracts and to the umpires and
566 appraisers who participate in the appraisal process.
567 (4) The department may adopt rules to administer the
568 requirements of this part.
569 468.861 Definitions.—As used in this part, the term:
570 (1) “Appraisal” means the process of estimating or
571 evaluating actual cash value, the amount of loss, or the cost of
572 repair or replacement of property for the purpose of quantifying
573 the monetary value of a property loss claim when an insurer and
574 an insured have failed to mutually agree on the value of the
575 loss pursuant to a residential or commercial residential
576 property insurance contract that is required in such contracts
577 for the resolution of a claim dispute by appraisal.
578 (2) “Competent” means properly licensed, sufficiently
579 qualified, and capable of performing an appraisal.
580 (3) “Department” means the Department of Business and
581 Professional Regulation.
582 (4) “Independent” means not subject to control,
583 restriction, modification, and limitation by the appointing
584 party.
585 (5) “Property insurance appraisal umpire” or “umpire” means
586 a competent, independent, licensed, and impartial third party
587 selected by the licensed appraisers for the insurer and the
588 insured to resolve issues that the licensed appraisers are
589 unable to reach an agreement during the course of the appraisal
590 process pursuant to a residential or commercial property
591 insurance contract that is required to provide for resolution of
592 a claim dispute by appraisal.
593 (6) “Property insurance loss appraiser” or “appraiser”
594 means a competent, licensed, and independent and impartial third
595 party selected by an insurer or an insured to develop an
596 appraisal for purposes of the appraisal process under a
597 residential or commercial property insurance contract that
598 provides for resolution of a claim dispute by appraisal.
599 (7) “Uniform application” means the uniform application of
600 the National Association of Insurance Commissioners for
601 nonresident agent licensing, effective January 15, 2001, or
602 subsequent versions adopted by rule by the department.
603 468.8611 Fees.—
604 (1) The department, by rule, may establish fees to be paid
605 for application, examination, reexamination, licensing and
606 renewal, inactive status application, reactivation of inactive
607 licenses, and application for providers of continuing education.
608 The department may also establish by rule a delinquency fee.
609 Fees shall be based on department estimates of the revenue
610 required to implement the provisions of this part. Fees shall be
611 remitted with the application, examination, reexamination,
612 licensing and renewal, inactive status application, reactivation
613 of inactive licenses, and application for providers of
614 continuing education.
615 (2) The application fee shall not exceed $200 and is
616 nonrefundable. The examination fee shall not exceed $200 plus
617 the actual per applicant cost to the department to purchase the
618 examination, if the department chooses to purchase the
619 examination. The examination fee shall be in an amount that
620 covers the cost of obtaining and administering the examination
621 and shall be refunded if the applicant is found ineligible to
622 sit for the examination.
623 (3) The fee for an initial license shall not exceed $250.
624 (4) The fee for an initial certificate of authorization
625 shall not exceed $250.
626 (5) The fee for a biennial license renewal shall not exceed
627 $500.
628 (6) The fee for application for inactive status shall not
629 exceed $125.
630 (7) The fee for reactivation of an inactive license shall
631 not exceed $250.
632 (8) The fee for applications from providers of continuing
633 education may not exceed $600.
634 (9) The fee for fingerprinting shall be included in the
635 department’s costs for the background check.
636 468.86115 Application for license as a property insurance
637 appraiser.—
638 (1) The department shall not issue a license as a property
639 insurance appraiser to any person except upon written
640 application previously filed with the department, with
641 qualification and advance payment of all applicable fees. Any
642 such application shall be made under oath or affirmation and
643 signed by the applicant. The department shall accept the uniform
644 application for a nonresident property insurance appraiser. The
645 department may adopt revised versions of the uniform application
646 by rule.
647 (2) In the application, the applicant shall set forth:
648 (a) His or her full name, age, social security number,
649 residence address, business address, mailing address, contact
650 telephone numbers, including a business telephone number, and e
651 mail address.
652 (b) Proof that he or she has completed or is in the process
653 of completing any required prelicensing course.
654 (c) Whether he or she has been refused or has voluntarily
655 surrendered or has had suspended or revoked a professional
656 license by the supervising officials of any state.
657 (d) Proof that the applicant meets the requirements of
658 licensure as a property insurance appraiser as required under
659 ss. 468.8611 and 468.8612, and this section.
660 (e) The applicant’s gender.
661 (f) The applicant’s native language.
662 (g) The applicant’s highest achieved level of education.
663 (h) All education requirements that the applicant has
664 completed to qualify as a property insurance appraiser,
665 including the name of the course, the course provider, and the
666 course completion dates.
667 (3) Each application shall be accompanied by payment of any
668 applicable fee.
669 (4) At the time of application, the applicant must be
670 fingerprinted by a law enforcement agency or other entity
671 approved by the department, and he or she must pay the
672 fingerprint processing fee in s. 468.8611. Fingerprints must be
673 processed by the Department of Law Enforcement.
674 (5) The Department of Law Enforcement may, to the extent
675 provided for by federal law, exchange state, multistate, and
676 federal criminal history records with the department or office
677 for the purpose of the issuance, denial, suspension, or
678 revocation of a certificate of authority, certification, or
679 license to operate in this state.
680 (6) The Department of Law Enforcement may accept
681 fingerprints of any other person required by statute or rule to
682 submit fingerprints to the department or office or any applicant
683 or licensee regulated by the department or office who is
684 required to demonstrate that he or she has not been convicted of
685 or pled guilty or nolo contendere to a felony or a misdemeanor.
686 (7) The Department of Law Enforcement shall, upon receipt
687 of fingerprints from the department or office, submit the
688 fingerprints to the Federal Bureau of Investigation for a
689 federal criminal history records check.
690 (8) Statewide criminal records obtained through the
691 Department of Law Enforcement, federal criminal records obtained
692 through the Federal Bureau of Investigation, and local criminal
693 records obtained through local law enforcement agencies shall be
694 used by the department and office for the purpose of issuance,
695 denial, suspension, or revocation of certificates of authority,
696 certifications, or licenses issued to operate in this state.
697 (9) The department shall develop and maintain as a public
698 record a current list of licensed property insurance appraisers.
699 468.8612 Examinations.–
700 (1) A person desiring to be licensed as a property
701 insurance appraiser must apply to the department after
702 satisfying the examination requirements of this part.
703 (2) An applicant may practice in this state as a property
704 insurance appraiser if he or she passes the required
705 examination, is of good moral character, and meets one of the
706 following requirements:
707 (a) The applicant is currently licensed, registered,
708 certified, or approved as an engineer as defined in s. 471.005,
709 or as a retired professional engineer as defined in s. 471.005,
710 and has taught or successfully completed 4 hours of classroom
711 coursework, approved by the department, specifically related to
712 construction, building codes, appraisal procedures, appraisal
713 preparation, and any other related material deemed appropriate
714 by the department.
715 (b) The applicant is currently or, within the 5 years
716 immediately preceding the date on which the application is filed
717 with the department, has been licensed, registered, certified,
718 or approved as a general contractor, building contractor, or
719 residential contractor as defined in s. 489.105 and has taught
720 or successfully completed 4 hours of classroom coursework,
721 approved by the department, specifically related to
722 construction, building codes, appraisal procedure, appraisal
723 preparation, and any other related material deemed appropriate
724 by the department.
725 (c) The applicant is currently or, within the 5 years
726 immediately preceding the date on which the application is filed
727 with the department, has been licensed or registered as an
728 architect to engage in the practice of architecture pursuant to
729 part I of chapter 481 and has taught or successfully completed 4
730 hours of classroom coursework, approved by the department,
731 specifically related to construction, building codes, appraisal
732 procedure, appraisal preparation, and any other related material
733 deemed appropriate by the department.
734 (d) The applicant is currently or, within the 5 years
735 immediately preceding the date on which the application is filed
736 with the department, has been a qualified geologist or
737 professional geologist as defined in s. 492.102 and has taught
738 or successfully completed 4 hours of classroom coursework,
739 approved by the department, specifically related to
740 construction, building codes, appraisal procedure, appraisal
741 preparation, and any other related material deemed appropriate
742 by the department.
743 (e) The applicant is currently or, within the 5 years
744 immediately preceding the date on which the application is filed
745 with the department, has been licensed as a certified public
746 accountant as defined in s. 473.302 and has taught or
747 successfully completed 4 hours of classroom coursework, approved
748 by the department, specifically related to construction,
749 building codes, appraisal procedure, appraisal preparation, and
750 any other related material deemed appropriate by the department.
751 (f) The applicant is currently or, within the 5 years
752 immediately preceding the date on which the application is filed
753 with the department, has been a licensed attorney in this state
754 and has taught or successfully completed 4 hours of classroom
755 coursework, approved by the department, specifically related to
756 construction, building codes, appraisal procedure, appraisal
757 preparation, and any other related material deemed appropriate
758 by the department.
759 (g) The applicant has received a baccalaureate degree from
760 an accredited 4-year college or university in the field of
761 engineering, architecture, or building construction and has
762 taught or successfully completed 4 hours of classroom
763 coursework, approved by the department, specifically related to
764 construction, building codes, appraisal procedure, appraisal
765 preparation, and any other related material deemed appropriate
766 by the department.
767 (h) The applicant is a currently licensed adjuster whose
768 license covers all lines of insurance except the life and
769 annuities class. The adjuster’s license must include the
770 property and casualty class of insurance. The currently licensed
771 adjuster must be licensed for at least 3 years to qualify for a
772 property insurance appraiser’s license.
773 (i) The applicant has received a minimum of 8 semester
774 hours or 12 quarter hours of credit from an accredited college
775 or university in the field of accounting, geology, engineering,
776 architecture, or building construction.
777 (j) The applicant has successfully completed 40 hours of
778 classroom coursework, approved by the department, specifically
779 related to construction, building codes, appraisal procedure,
780 appraisal preparation, property insurance, and any other related
781 material deemed appropriate by the department.
782 (3) The department shall review and approve courses of
783 study for the continuing education of property insurance
784 appraisers.
785 (4) The department may not issue a license as a property
786 insurance appraiser to any individual found by it to be
787 untrustworthy or incompetent or who:
788 (a) Has not filed an application with the department in
789 accordance with s. 468.85115.
790 (b) Is not a natural person who is at least 18 years of
791 age.
792 (c) Is not a United States citizen or legal alien who
793 possesses work authorization from the United States Citizenship
794 and Immigration Services.
795 (d) Has not completed the education, experience, or
796 licensing requirements in this section.
797 (5) An incomplete application expires 6 months after the
798 date it is received by the department.
799 (6) An applicant seeking to become licensed under this part
800 may not be rejected solely by virtue of membership or lack of
801 membership in any particular appraisal organization.
802 468.8613 Licensure.—
803 (1) The department shall license any applicant who the
804 department certifies has completed the requirements of ss.
805 468.8611, 468.86115, and 468.8612.
806 (2) The department shall not issue a license by endorsement
807 to any applicant for a property insurance appraiser license who
808 is under investigation in another state for any act that would
809 constitute a violation of this part until such time that the
810 investigation is complete and disciplinary proceedings have been
811 terminated.
812 468.8614 Renewal of license.—
813 (1) The department shall renew a license upon receipt of
814 the renewal application and fee and upon certification by the
815 department that the licensee has satisfactorily completed the
816 continuing education requirements of s. 468.8615.
817 (2) The department shall adopt rules establishing a
818 procedure for the biennial renewal of licenses.
819 468.8615 Continuing education.—
820 (1) The department may not renew a license until the
821 licensee submits satisfactory proof to the department that,
822 during the 2 years before his or her application for renewal,
823 the licensee completed at least 30 hours of continuing education
824 in addition to 5 hours of ethics. Criteria and course content
825 shall be approved by the department by rule.
826 (2) The department may prescribe by rule additional
827 continuing professional education hours, not to exceed 25
828 percent of the total required hours, for failure to complete the
829 required hours for renewal by the end of the renewal period.
830 (3) Each appraiser course provider, instructor, and
831 classroom course must be approved by and registered with the
832 department before prelicensure courses for property insurance
833 appraisers may be offered. Each classroom course must include a
834 written examination at the conclusion of the course and must
835 cover all of the material contained in the course. A student may
836 not receive credit for the course unless the student achieves a
837 grade of at least 75 percent on the examination.
838 (4) The department shall adopt rules establishing:
839 (a) Standards for the approval, registration, discipline,
840 or removal from registration of course providers, instructors,
841 and courses. The standards must be designed to ensure that
842 instructors have the knowledge, competence, and integrity to
843 fulfill the educational objectives of the prelicensure
844 requirements of this part.
845 (b) A process for determining compliance with the
846 prelicensure requirements of this part.
847
848 The department shall adopt rules prescribing the forms necessary
849 to administer the prelicensure requirements of this part.
850 (5) Approval to teach prescribed or approved appraisal
851 courses does not entitle the instructor to teach any courses
852 outside the scope of this part.
853 468.8616 Inactive license.—
854 (1) A licensee may request that his or her license be
855 placed on inactive status by filing an application with the
856 department.
857 (2) A license that has become inactive may be reactivated
858 upon application to the department. The department may prescribe
859 by rule continuing education requirements as a condition for
860 reactivation of an inactive license. The continuing education
861 requirements for reactivating a license may not exceed 14 hours
862 for each year the license was inactive.
863 (3) The department shall adopt rules relating to licenses
864 that have become inactive and for the renewal of inactive
865 licenses. The department shall prescribe by rule a fee not to
866 exceed $250 for the reactivation of an inactive license and a
867 fee not to exceed $250 for the renewal of an inactive license.
868 468.8617 Certification of partnerships, corporations, and
869 other business entities.—The practice of, or the offer to
870 practice as, a property insurance appraiser by licensees through
871 a partnership, corporation, or other business entity offering
872 property insurance appraiser services to the public, or by a
873 partnership, corporation, or other business entity through
874 licensees under this part as agents, employees, officers, or
875 partners is permitted subject to the provisions of this part.
876 This section does not allow a corporation or other business
877 entity to hold a license to practice property insurance
878 appraiser services. A partnership, corporation, or other
879 business entity is not relieved of responsibility for the
880 conduct or acts of its agents, employees, or officers by reason
881 of its compliance with this section. An individual practicing as
882 a property insurance appraiser is not relieved of responsibility
883 for professional services performed by reason of his or her
884 employment or relationship with a partnership, corporation, or
885 other business entity.
886 468.8618 Grounds for compulsory refusal, suspension, or
887 revocation of an appraiser’s license.—The department shall deny
888 an application for, suspend, revoke, or refuse to renew or
889 continue the license or appointment of any applicant, property
890 insurance appraiser, or licensee and shall suspend or revoke the
891 eligibility to hold a license or appointment of any such person
892 if it finds that any one or more of the following applicable
893 grounds exist:
894 (1) Lack of one or more of the qualifications for the
895 license as specified in this part.
896 (2) Material misstatement, misrepresentation, or fraud in
897 obtaining the license or in attempting to obtain the license or
898 appointment.
899 (3) Failure to pass to the satisfaction of the department
900 any examination required under this act.
901 (4) That the license or appointment was willfully used, or
902 will be used, to circumvent any of the requirements or
903 prohibitions of this code.
904 (5) Demonstrated a lack of fitness or trustworthiness to
905 engage as a property insurance appraiser.
906 (6) Demonstrated a lack of reasonably adequate knowledge
907 and technical competence to engage in the transactions
908 authorized by the license.
909 (7) Fraudulent or dishonest practices in the conduct of
910 business under the license.
911 (8) Willful failure to comply with, or willful violation
912 of, any proper order or rule of the department or willful
913 violation of any provision of this act.
914 (9) Having been found guilty of or having pled guilty or
915 nolo contendere to a felony or a crime punishable by
916 imprisonment of 1 year or more under the law of the United
917 States or of any state thereof or under the law of any other
918 country which involves moral turpitude, without regard to
919 whether a judgment of conviction has been entered by the court
920 having jurisdiction of such cases.
921 (10) Violated a duty imposed upon her or him by law or by
922 the terms of a contract, whether written, oral, expressed, or
923 implied, in an appraisal; has aided, assisted, or conspired with
924 any other person engaged in any such misconduct and in
925 furtherance thereof; or has formed an intent, design, or scheme
926 to engage in such misconduct and committed an overt act in
927 furtherance of such intent, design, or scheme. It is immaterial
928 to a finding that a licensee has committed a violation of this
929 subsection that the victim or intended victim of the misconduct
930 has sustained no damage or loss, that the damage or loss has
931 been settled and paid after the discovery of misconduct, or that
932 such victim or intended victim was a customer or a person in a
933 confidential relationship with the licensee or was an identified
934 member of the general public.
935 (11) Had a registration, license, or certification as an
936 appraiser revoked, suspended, or otherwise acted against; has
937 had his or her registration, license, or certificate to practice
938 or conduct any regulated profession, business, or vocation
939 revoked or suspended by this or any other state, any nation, or
940 any possession or district of the United States; or has had an
941 application for such registration, licensure, or certification
942 to practice or conduct any regulated profession, business, or
943 vocation denied by this or any other state, any nation, or any
944 possession or district of the United States.
945 (12)(a) Made or filed a report or record, written or oral,
946 which the licensee knows to be false;
947 (b) Has willfully failed to file a report or record
948 required by state or federal law;
949 (c) Has willfully impeded or obstructed such filing; or
950 (d) Has induced another person to impede or obstruct such
951 filing.
952 (13) Accepted an appointment as an appraiser if the
953 appointment is contingent upon the appraiser reporting a
954 predetermined result, analysis, or opinion, or if the fee to be
955 paid for the services of the appraiser is contingent upon the
956 opinion, conclusion, or valuation reached by the appraiser.
957 468.86185 Grounds for discretionary denial, suspension, or
958 revocation of an appraiser’s license.-The department may deny an
959 application for and suspend, revoke, or refuse to renew or
960 continue a license as a property insurance appraiser if the
961 applicant or licensee has:
962 (1) Failed to timely communicate with the opposing party’s
963 appraiser without good cause.
964 (2) Failed or refused to exercise reasonable diligence in
965 submitting recommendations to the opposing party’s appraiser.
966 (3) Violated any ethical standard for property insurance
967 appraisers set forth in s. 468.8619.
968 (4) Failed to inform the department in writing within 30
969 days after pleading guilty or nolo contendere to, or being
970 convicted or found guilty of, a felony.
971 (5) Failed to timely notify the department of any change in
972 business location or has failed to fully disclose all business
973 locations from which he or she operates as a property insurance
974 appraiser.
975 468.8619 Ethical standards for property insurance
976 appraisers.—
977 (1) CONFIDENTIALITY.—An appraiser shall maintain
978 confidentiality of all information revealed during an appraisal
979 except to the party that hired the appraiser and except where
980 disclosure is required by law.
981 (2) RECORDKEEPING.—An appraiser shall maintain
982 confidentiality in the storage and disposal of records and may
983 not disclose any identifying information when materials are used
984 for research, training, or statistical compilations.
985 (3) FEES AND EXPENSES.—Fees charged for appraisal services
986 shall be reasonable and consistent with the nature of the case.
987 An appraiser shall be guided by the following in determining
988 fees:
989 (a) All charges for services as an appraiser based on time
990 may not exceed actual time spent or allocated.
991 (b) Charges for costs shall be for those actually incurred.
992 (4) MAINTENANCE OF RECORDS.—An appraiser shall maintain
993 records necessary to support charges for services and expenses,
994 and upon request shall provide an accounting of all applicable
995 charges to the parties. An appraiser licensed under this part
996 shall retain for at least 5 years original or true copies of any
997 contracts engaging the appraiser’s services, appraisal reports,
998 and supporting data assembled and formulated by the appraiser in
999 preparing appraisal reports. The period for retaining the
1000 records applicable to each engagement starts on the date of the
1001 submission of the appraisal report to the client. The records
1002 must be made available by the appraiser for inspection and
1003 copying by the department upon reasonable notice to the
1004 appraiser. If an appraisal has been the subject of, or has been
1005 admitted as evidence in, a lawsuit, reports, and records the
1006 appraisal must be retained for at least 2 years after the date
1007 that the trial ends.
1008 (5) ADVERTISING.—An appraiser may not engage in marketing
1009 practices that contain false or misleading information. An
1010 appraiser shall ensure that any advertisements of the
1011 appraiser’s qualifications, services to be rendered, or the
1012 appraisal process are accurate and honest. An appraiser may not
1013 make claims of achieving specific outcomes or promises implying
1014 favoritism for the purpose of obtaining business.
1015 (6) INTEGRITY AND IMPARTIALITY.—An appraiser may not accept
1016 any engagement, provide any service, or perform any act that
1017 would compromise the appraiser’s integrity or impartiality.
1018 (a) An appraiser may not accept an appointment unless he or
1019 she can:
1020 1. Serve impartially;
1021 2. Serve independently from the party appointing him or
1022 her;
1023 3. Serve competently; and
1024 4. Be available to promptly commence the appraisal, and
1025 thereafter devote the time and attention to its completion in a
1026 manner expected by all involved parties.
1027 (b) An appraiser shall conduct the appraisal process in a
1028 manner that advances the fair and efficient resolution of the
1029 matters submitted for decision. A licensed appraiser shall make
1030 all reasonable efforts to prevent delays in the appraisal
1031 process, the harassment of parties or other participants, or
1032 other abuse or disruption of the appraisal process.
1033 (c) Once a licensed appraiser has accepted an appointment,
1034 the appraiser may not withdraw or abandon the appointment unless
1035 compelled to do so by unanticipated circumstances that would
1036 render it impossible or impracticable to continue.
1037 (d) The licensed appraiser shall, after careful
1038 deliberation, decide all issues submitted for determination and
1039 no other issues. A licensed appraiser shall decide all matters
1040 justly, exercising independent judgment, and may not allow
1041 outside pressure to affect the decision. An appraiser may not
1042 delegate the duty to decide to any other person.
1043 (7) SKILL AND EXPERIENCE.—An appraiser shall decline an
1044 appointment or selection, withdraw, or request appropriate
1045 assistance when the facts and circumstances of the appraisal are
1046 beyond the appraiser’s skill or experience.
1047 (8) GIFTS AND SOLICITATION.—An appraiser may not give or
1048 accept any gift, favor, loan, or other item of value in an
1049 appraisal process except for the appraiser’s reasonable fee.
1050 During the appraisal process, an appraiser may not solicit or
1051 otherwise attempt to procure future professional services.
1052 (9) COMMUNICATIONS WITH PARTIES.—
1053 (a) If an agreement of the parties establishes the manner
1054 or content of the communications between the appraisers, the
1055 parties, and the umpire, the appraisers shall abide by such
1056 agreement. In the absence of agreement, an appraiser may not
1057 discuss a proceeding with any party or with the umpire in the
1058 absence of any other party, except in the following
1059 circumstances:
1060 1. If the appointment of the appraiser or umpire is being
1061 considered, the prospective appraiser or umpire may ask about
1062 the identities of the parties, counsel, and the general nature
1063 of the case, and may respond to inquiries from a party, its
1064 counsel or an umpire designed to determine his or her
1065 suitability and availability for the appointment;
1066 2. To consult with the party who appointed the appraiser
1067 concerning the selection of a neutral umpire;
1068 3. To make arrangements for any compensation to be paid by
1069 the party who appointed the appraiser; or
1070 4. To make arrangements for obtaining materials and
1071 inspection of the property with the party who appointed the
1072 appraiser. Such communication is limited to scheduling and the
1073 exchange of materials.
1074 (b) There may be no communications whereby a party dictates
1075 to an appraiser what the result of the proceedings must be, what
1076 matters or elements may be included or considered by the
1077 appraiser, or what actions the appraiser may take.
1078 Section 3. This act shall take effect July 1, 2015.