Florida Senate - 2015 CS for CS for SB 744
By the Committees on Banking and Insurance; and Regulated
Industries; and Senator Richter
597-03199-15 2015744c2
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; requiring a person acting as a property
10 insurance appraisal umpire on or after a certain date
11 to be licensed under the act; authorizing the
12 department to adopt rules; providing definitions;
13 authorizing the department to establish fees;
14 providing licensing application requirements;
15 providing authority and procedures regarding
16 submission and processing of fingerprints; providing
17 examination requirements; specifying exemptions from
18 such requirements; providing application requirements
19 for licensure as a property insurance appraisal
20 umpire; providing licensure renewal requirements;
21 authorizing the department to adopt rules; providing
22 continuing education requirements; providing
23 requirements for the inactivation of a license by a
24 licensee; providing requirements for renewing an
25 inactive license; establishing license reactivation
26 fees; providing for certification of partnerships and
27 corporations offering property insurance appraisal
28 umpire services; providing grounds for compulsory
29 refusal, suspension, or revocation of an umpire’s
30 license; providing grounds for discretionary denial,
31 suspension, or revocation of an umpire’s license;
32 providing ethical standards for property insurance
33 appraisal umpires; creating part XVIII of chapter 468,
34 F.S., relating to property insurance appraisers;
35 creating the property insurance appraiser licensing
36 program within the Department of Business and
37 Professional Regulation; providing legislative
38 findings; providing applicability; requiring a person
39 acting as a property insurance appraiser on or after a
40 certain date to be licensed under the act; authorizing
41 the department to adopt rules; providing definitions;
42 authorizing the department to establish fees; limiting
43 fee amounts; providing licensing application
44 requirements; providing authority and procedures
45 regarding submission and processing of fingerprints;
46 providing examination requirements; specifying
47 exemptions from such requirements; providing
48 application requirements for licensure as a property
49 insurance appraiser; providing licensure renewal
50 requirements; authorizing the department to adopt
51 rules; providing continuing education requirements;
52 providing requirements for the inactivation of a
53 license by a licensee; providing requirements for
54 renewing an inactive license; establishing license
55 reactivation fees; providing for certification of
56 partnerships and corporations offering property
57 insurance appraiser services; providing grounds for
58 compulsory refusal, suspension, or revocation of an
59 appraiser’s license; providing grounds for
60 discretionary denial, suspension, or revocation of an
61 appraiser’s license; providing ethical standards;
62 providing an effective date.
63
64 Be It Enacted by the Legislature of the State of Florida:
65
66 Section 1. Part XVII of chapter 468, Florida Statutes,
67 consisting of sections 468.85 through 468.8519, is created to
68 read:
69 PART XVII
70 PROPERTY INSURANCE APPRAISAL UMPIRES
71 468.85 Property insurance appraisal umpire licensing
72 program; legislative purpose; scope of part.—
73 (1) The property insurance appraisal umpire licensing
74 program is created within the Department of Business and
75 Professional Regulation.
76 (2) The Legislature finds it necessary in the interest of
77 the public safety and welfare to prevent damage to real and
78 personal property, to avert economic injury to the residents of
79 this state, and to regulate persons and companies that hold
80 themselves out to the public as qualified to perform as property
81 insurance appraisal umpires.
82 (3) This part applies to residential and commercial
83 residential property insurance contracts and to the umpires and
84 appraisers who participate in the appraisal process.
85 (4) A person acting as a property insurance appraisal
86 umpire on or after October 1, 2016, must be licensed pursuant to
87 this part.
88 (5) The department may adopt rules to administer this part.
89 468.851 Definitions.—As used in this part, the term:
90 (1) “Appraisal” means the process defined in the property
91 insurance contract for determining the amount of the loss once
92 coverage is established.
93 (2) “Competent” means properly licensed, sufficiently
94 qualified, and capable of performing an appraisal.
95 (3) “Department” means the Department of Business and
96 Professional Regulation.
97 (4) “Independent” means not subject to control,
98 restriction, modification, or limitation by the appointing
99 party. An independent umpire shall conduct his or her
100 investigation, evaluation, and estimation without instruction by
101 an appointing party. A person may not accept an appointment as
102 an umpire if the appointment is contingent upon the umpire
103 reporting a predetermined result, analysis, or opinion, or if
104 the fee to be paid for the services of the umpire is contingent
105 upon the opinion, conclusion, or valuation reached by the
106 umpire.
107 (5) “Property insurance appraisal umpire” or “umpire” means
108 a competent, licensed, independent, and impartial third party
109 selected by the licensed appraisers for the insurer and the
110 insured to resolve issues that the licensed appraisers are
111 unable to reach an agreement on during the course of the
112 appraisal process pursuant to a residential or commercial
113 property insurance contract that is required to provide for
114 resolution of a claim dispute by appraisal as defined in the
115 property insurance contract.
116 (6) “Property insurance appraiser” or “appraiser” means a
117 third party selected by an insurer or an insured to develop an
118 appraisal for purposes of the appraisal process under a
119 residential or commercial property insurance contract that
120 provides for resolution of a claim dispute by appraisal.
121 (7) “Uniform application” means the uniform application of
122 the National Association of Insurance Commissioners for
123 nonresident agent licensing, effective January 15, 2001, or
124 subsequent versions adopted by rule by the department.
125 468.8511 Fees.—
126 (1) The department, by rule, may establish fees to be paid
127 for application, examination, reexamination, licensing and
128 renewal, inactive status application, reactivation of inactive
129 licenses, and application for providers of continuing education.
130 The department may also establish by rule a delinquency fee.
131 Fees shall be based on department estimates of the revenue
132 required to implement the provisions of this part. Fees shall be
133 remitted with the application, examination, reexamination,
134 licensing and renewal, inactive status application, and
135 reactivation of inactive licenses, and application for providers
136 of continuing education.
137 (2) The application fee shall not exceed $200 and is
138 nonrefundable. The examination fee shall not exceed $200 plus
139 the actual per applicant cost to the department to purchase the
140 examination, if the department chooses to purchase the
141 examination. The examination fee shall be in an amount that
142 covers the cost of obtaining and administering the examination
143 and shall be refunded if the applicant is found ineligible to
144 sit for the examination.
145 (3) The fee for an initial license shall not exceed $250.
146 (4) The fee for an initial certificate of authorization
147 shall not exceed $250.
148 (5) The fee for a biennial license renewal shall not exceed
149 $500.
150 (6) The fee for application for inactive status shall not
151 exceed $125.
152 (7) The fee for reactivation of an inactive license shall
153 not exceed $250.
154 (8) The fee for applications from providers of continuing
155 education may not exceed $600.
156 (9) The fee for fingerprinting shall be included in the
157 department’s costs for each background check.
158 468.85115 Application for license as a property insurance
159 appraisal umpire.—
160 (1) The department shall not issue a license as a property
161 insurance appraisal umpire to any person except upon written
162 application previously filed with the department, with
163 qualification and advance payment of all applicable fees. Any
164 such application shall be made under oath or affirmation and
165 signed by the applicant. The department shall accept the uniform
166 application for a nonresident property insurance appraisal
167 umpire. The department may adopt revised versions of the uniform
168 application by rule.
169 (2) In the application, the applicant shall set forth:
170 (a) His or her full name, age, social security number,
171 residence address, business address, mailing address, contact
172 telephone numbers, including a business telephone number, and e
173 mail address.
174 (b) Proof that he or she has completed or is in the process
175 of completing any required prelicensing course.
176 (c) Whether he or she has been refused or has voluntarily
177 surrendered or has had suspended or revoked a professional
178 license by the supervising officials of any state.
179 (d) Proof that the applicant meets the requirements for
180 licensure as a property insurance appraisal umpire as required
181 under ss. 468.8511 and 468.8512, and this section.
182 (e) The applicant’s gender.
183 (f) The applicant’s native language.
184 (g) The applicant’s highest achieved level of education.
185 (h) All education requirements that the applicant has
186 completed to qualify as a property insurance appraisal umpire,
187 including the name of the course, the course provider, and the
188 course completion dates.
189 (3) Each application shall be accompanied by payment of any
190 applicable fee.
191 (4) At the time of application, the applicant must be
192 fingerprinted by a law enforcement agency or other entity
193 approved by the department and he or she must pay the
194 fingerprint processing fee in s. 468.8511. Fingerprints must be
195 processed by the Department of Law Enforcement.
196 (5) The Department of Law Enforcement may, to the extent
197 provided for by federal law, exchange state, multistate, and
198 federal criminal history records with the department or office
199 for the purpose of the issuance, denial, suspension, or
200 revocation of a certificate of authority, certification, or
201 license to operate in this state.
202 (6) The Department of Law Enforcement may accept
203 fingerprints of any other person required by statute or rule to
204 submit fingerprints to the department or office or any applicant
205 or licensee regulated by the department or office who is
206 required to demonstrate that he or she has not been convicted of
207 or pled guilty or nolo contendere to a felony or a misdemeanor.
208 (7) The Department of Law Enforcement shall, upon receipt
209 of fingerprints from the department or office, submit the
210 fingerprints to the Federal Bureau of Investigation for a
211 federal criminal history records check.
212 (8) Statewide criminal records obtained through the
213 Department of Law Enforcement, federal criminal records obtained
214 through the Federal Bureau of Investigation, and local criminal
215 records obtained through local law enforcement agencies shall be
216 used by the department and office for the purpose of issuance,
217 denial, suspension, or revocation of certificates of authority,
218 certifications, or licenses issued to operate in this state.
219 (9) The department shall develop and maintain as a public
220 record a current list of licensed property insurance appraisal
221 umpires.
222 468.8512 Examinations.–
223 (1) A person desiring to be licensed as a property
224 insurance appraisal umpire must apply to the department after
225 satisfying the examination requirements of this part. The
226 following persons are exempt from the examination requirements
227 of this part:
228 (a) Retired county, circuit, and appellate judges.
229 (b) Circuit court civil certified mediators approved by the
230 Florida Supreme Court pursuant to the Florida Rules for
231 Certified and Court-Appointed Mediators.
232 (c) Mediators who are on the list of approved mediators
233 pursuant to rule 69J-166.031, Florida Administrative Code.
234 (2) An applicant may practice in this state as a property
235 insurance appraisal umpire if he or she passes the required
236 examination, is of good moral character, and meets one of the
237 following requirements:
238 (a) The applicant is currently licensed, registered,
239 certified, or approved as an engineer as defined in s. 471.005,
240 or as a retired professional engineer as defined in s. 471.005,
241 and has taught or successfully completed 4 hours of classroom
242 coursework, approved by the department, specifically related to
243 construction, building codes, appraisal procedures, appraisal
244 preparation, and any other related material deemed appropriate
245 by the department.
246 (b) The applicant is currently or, within the 5 years
247 immediately preceding the date on which the application is filed
248 with the department, has been licensed, registered, certified,
249 or approved as a general contractor, building contractor, or
250 residential contractor as defined in s. 489.105 and has taught
251 or successfully completed 4 hours of classroom coursework,
252 approved by the department, specifically related to
253 construction, building codes, appraisal procedure, appraisal
254 preparation, and any other related material deemed appropriate
255 by the department.
256 (c) The applicant is currently or, within the 5 years
257 immediately preceding the date on which the application is filed
258 with the department, has been licensed or registered as an
259 architect to engage in the practice of architecture pursuant to
260 part I of chapter 481 and has taught or successfully completed 4
261 hours of classroom coursework, approved by the department,
262 specifically related to construction, building codes, appraisal
263 procedure, appraisal preparation, and any other related material
264 deemed appropriate by the department.
265 (d) 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 (e) 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 (f) 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 (g) The applicant has successfully completed 40 hours of
288 classroom coursework, approved by the department, specifically
289 related to construction, building codes, appraisal procedure,
290 appraisal preparation, property insurance, and any other related
291 material deemed appropriate by the department.
292 (3) The department shall review and approve courses of
293 study for the continuing education of property insurance
294 appraisal umpires.
295 (4) The department may not issue a license as a property
296 insurance appraisal umpire to any individual found by it to be
297 untrustworthy or incompetent or who:
298 (a) Has not filed an application with the department in
299 accordance with s. 485.85115.
300 (b) Is not a natural person who is at least 18 years of
301 age.
302 (c) Is not a United States citizen or legal alien who
303 possesses work authorization from the United States Citizenship
304 and Immigration Services.
305 (d) Has not completed the education, experience, or
306 licensing requirements of this section.
307 (5) An incomplete application expires 6 months after the
308 date it is received by the department.
309 (6) An applicant seeking to become licensed under this part
310 may not be rejected solely by virtue of membership or lack of
311 membership in any particular appraisal organization.
312 468.8513 Licensure.–
313 (1) The department shall license any applicant who the
314 department certifies has completed the requirements of ss.
315 468.8511, 468.85115, and 468.8512.
316 (2) The department shall not issue a license by endorsement
317 to any applicant for a property insurance appraisal umpire
318 license who is under investigation in another state for any act
319 that would constitute a violation of this part until such time
320 that the investigation is complete and disciplinary proceedings
321 have been terminated.
322 468.8514 Renewal of license.—
323 (1) The department shall renew a license upon receipt of
324 the renewal application and fee and upon certification by the
325 department that the licensee has satisfactorily completed the
326 continuing education requirements of s. 468.8515.
327 (2) The department shall adopt rules establishing a
328 procedure for the biennial renewal of licenses.
329 468.8515 Continuing education.—
330 (1) The department may not renew a license until the
331 licensee submits satisfactory proof to the department that,
332 during the 2 years before his or her application for renewal,
333 the licensee completed at least 30 hours of continuing education
334 in addition to 5 hours of ethics. Criteria and course content
335 shall be approved by the department by rule.
336 (2) The department may prescribe by rule additional
337 continuing professional education hours, not to exceed 25
338 percent of the total required hours, for failure to complete the
339 required hours by the end of the renewal period.
340 (3) Each umpire course provider, instructor, and classroom
341 course must be approved by and registered with the department
342 before prelicensure courses for property insurance appraisal
343 umpires may be offered. Each classroom course must include a
344 written examination at the conclusion of the course and must
345 cover all of the material contained in the course. A student may
346 not receive credit for the course unless the student achieves a
347 grade of at least 75 percent on the examination.
348 (4) The department shall adopt rules establishing:
349 (a) Standards for the approval, registration, discipline,
350 or removal from registration of course providers, instructors,
351 and courses. The standards must be designed to ensure that
352 instructors have the knowledge, competence, and integrity to
353 fulfill the educational objectives of the prelicensure
354 requirements of this part.
355 (b) A process for determining compliance with the
356 prelicensure requirements of this part.
357
358 The department shall adopt rules prescribing the forms necessary
359 to administer the prelicensure requirements of this part.
360 (5) Approval to teach prescribed or approved appraisal
361 courses does not entitle the instructor to teach any courses
362 outside the scope of this part.
363 468.8516 Inactive license.–
364 (1) A licensee may request that his or her license be
365 placed on inactive status by filing an application with the
366 department.
367 (2) A license that has become inactive may be reactivated
368 upon application to the department. The department may prescribe
369 by rule continuing education requirements as a condition for
370 reactivation of an inactive license. The continuing education
371 requirements for reactivating a license may not exceed 14 hours
372 for each year the license was inactive.
373 (3) The department shall adopt rules relating to licenses
374 that have become inactive and for the renewal of inactive
375 licenses. The department shall prescribe by rule a fee not to
376 exceed $250 for the reactivation of an inactive license and a
377 fee not to exceed $250 for the renewal of an inactive license.
378 468.8517 Certification of partnerships, corporations, and
379 other business entities.–The practice of, or the offer to
380 practice as, a property insurance appraisal umpire by licensees
381 through a partnership, corporation, or other business entity
382 offering property insurance appraisal umpire services to the
383 public, or by a partnership, corporation, or other business
384 entities through licensees under this part as agents, employees,
385 officers, or partners is permitted, subject to the provisions of
386 this part. This section does not allow a corporation or other
387 business entity to hold a license to practice property insurance
388 appraisal umpire services. A partnership, corporation, or other
389 business entity is not relieved of responsibility for the
390 conduct or acts of its agents, employees, or officers by reason
391 of its compliance with this section. An individual practicing as
392 a property insurance appraisal umpire is not relieved of
393 responsibility for professional services performed by reason of
394 his or her employment or relationship with a partnership,
395 corporation, or other business entity.
396 468.8518 Grounds for compulsory refusal, suspension, or
397 revocation of an umpire’s license.–The department shall deny an
398 application for, suspend, revoke, or refuse to renew or continue
399 the license or appointment of any applicant, property insurance
400 appraisal umpire or licensee and shall suspend or revoke the
401 eligibility to hold a license or appointment of any such person
402 if it finds that any one or more of the following applicable
403 grounds exist:
404 (1) Lack of one or more of the qualifications for the
405 license as specified in this part.
406 (2) Material misstatement, misrepresentation, or fraud in
407 obtaining the license or in attempting to obtain the license or
408 appointment.
409 (3) Failure to pass to the satisfaction of the department
410 any examination required under this chapter.
411 (4) That the license or appointment was willfully used, or
412 will be used, to circumvent any of the requirements or
413 prohibitions of this chapter.
414 (5) Demonstrated a lack of fitness or trustworthiness to
415 engage as a property insurance appraisal umpire.
416 (6) Demonstrated a lack of reasonably adequate knowledge
417 and technical competence to engage in the transactions
418 authorized by the license.
419 (7) Fraudulent or dishonest practices in the conduct of
420 business under the license.
421 (8) Willful failure to comply with, or willful violation
422 of, any proper order or rule of the department or willful
423 violation of any provision of this chapter.
424 (9) Having been found guilty of or having plead guilty or
425 nolo contendere to a felony or a crime punishable by
426 imprisonment of 1 year or more under the law of the United
427 States or of any state thereof or under the law of any other
428 country which involves moral turpitude, without regard to
429 whether a judgment of conviction has been entered by the court
430 having jurisdiction of such cases.
431 (10)(a) Violated a duty imposed upon her or him by law or
432 by the terms of a contract, whether written, oral, expressed, or
433 implied, in an appraisal;
434 (b) Has aided, assisted, or conspired with any other person
435 engaged in any such misconduct and in furtherance thereof; or
436 (c) Has formed an intent, design, or scheme to engage in
437 such misconduct and committed an overt act in furtherance of
438 such intent, design, or scheme.
439
440 It is immaterial to a finding that a licensee has committed a
441 violation of this subsection that the victim or intended victim
442 of the misconduct has sustained no damage or loss, that the
443 damage or loss has been settled and paid after the discovery of
444 misconduct, or that such victim or intended victim was a
445 customer or a person in a confidential relationship with the
446 licensee or was an identified member of the general public.
447 (11)(a) Had a registration, license, or certification as an
448 umpire revoked, suspended, or otherwise acted against;
449 (b) Has had his or her registration, license, or
450 certificate to practice or conduct any regulated profession,
451 business, or vocation revoked or suspended by this or any other
452 state, any nation, or any possession or district of the United
453 States; or
454 (c) Has had an application for such registration,
455 licensure, or certification to practice or conduct any regulated
456 profession, business, or vocation denied by this or any other
457 state, any nation, or any possession or district of the United
458 States.
459 (12)(a) Made or filed a report or record, written or oral,
460 which the licensee knows to be false;
461 (b) Has willfully failed to file a report or record
462 required by state or federal law;
463 (c) Has willfully impeded or obstructed such filing; or
464 (d) Has induced another person to impede or obstruct such
465 filing.
466 (13) Accepted an appointment as an umpire if the
467 appointment is contingent upon the umpire reporting a
468 predetermined result, analysis, or opinion, or if the fee to be
469 paid for the services of the umpire is contingent upon the
470 opinion, conclusion, or valuation reached by the umpire.
471 468.85185 Grounds for discretionary denial, suspension, or
472 revocation of an umpire’s license.—The department may deny an
473 application for and suspend, revoke, or refuse to renew or
474 continue a license as a property insurance appraisal umpire if
475 the applicant or licensee has:
476 (1) Failed to timely communicate with the appraisers
477 without good cause.
478 (2) Failed or refused to exercise reasonable diligence in
479 submitting recommendations to the appraisers.
480 (3) Violated any ethical standard for property insurance
481 appraisal umpires set forth in s. 468.8519.
482 (4) Failed to inform the department in writing within 30
483 days after pleading guilty or nolo contendere to, or being
484 convicted or found guilty of, a felony.
485 (5) Failed to timely notify the department of any change in
486 business location, or has failed to fully disclose all business
487 locations from which he or she operates as a property insurance
488 appraisal umpire.
489 468.8519 Ethical standards for property insurance appraisal
490 umpires.—
491 (1) CONFIDENTIALITY.—An umpire shall maintain
492 confidentiality of all information revealed during an appraisal
493 except where disclosure is required by law.
494 (2) RECORDKEEPING.—An umpire shall maintain confidentiality
495 in the storage and disposal of records and may not disclose any
496 identifying information when materials are used for research,
497 training, or statistical compilations.
498 (3) FEES AND EXPENSES.—Fees charged for appraisal services
499 shall be reasonable and consistent with the nature of the case.
500 An umpire shall be guided by the following in determining fees:
501 (a) All charges for services as an umpire based on time may
502 not exceed actual time spent or allocated.
503 (b) Charges for costs shall be for those actually incurred.
504 (c) An umpire may not charge, agree to, or accept as
505 compensation or reimbursement any payment, commission, or fee
506 that is based on a percentage basis, or that is contingent upon
507 arriving at a particular value or any future happening or
508 outcome of the assignment.
509 (4) MAINTENANCE OF RECORDS.—An umpire shall maintain
510 records necessary to support charges for services and expenses,
511 and upon request shall provide an accounting of all applicable
512 charges to the parties. An umpire licensed under this part shall
513 retain original or true copies of any contracts engaging the
514 umpire’s services, appraisal reports, and supporting data
515 assembled and formulated by the umpire in preparing appraisal
516 reports for at least 5 years. The period for retaining the
517 records applicable to each engagement starts on the date of the
518 submission of the appraisal report to the client. The records
519 must be made available by the umpire for inspection and copying
520 by the department upon reasonable notice to the umpire. If an
521 appraisal has been the subject of, or has been admitted as
522 evidence in, a lawsuit, reports, and records, the appraisal must
523 be retained for at least 2 years after the date that the trial
524 ends.
525 (5) ADVERTISING.—An umpire may not engage in marketing
526 practices that contain false or misleading information. An
527 umpire shall ensure that any advertisements of the umpire’s
528 qualifications, services to be rendered, or the appraisal
529 process are accurate and honest. An umpire may not make claims
530 of achieving specific outcomes or promises implying favoritism
531 for the purpose of obtaining business.
532 (6) INTEGRITY AND IMPARTIALITY.—An umpire may not engage in
533 any business, provide any service, or perform any act that would
534 compromise the umpire’s integrity or impartiality.
535 (7) SKILL AND EXPERIENCE.—An umpire shall decline an
536 appointment or selection, withdraw, or request appropriate
537 assistance when the facts and circumstances of the appraisal are
538 beyond the umpire’s skill or experience.
539 (8) GIFTS AND SOLICITATION.—An umpire may not give or
540 accept any gift, favor, loan, or other item of value in an
541 appraisal process except for the umpire’s reasonable fee. During
542 the appraisal process, an umpire may not solicit or otherwise
543 attempt to procure future professional services.
544 Section 2. Part XVIII of chapter 468, Florida Statutes,
545 consisting of sections 468.86 through 468.8619, is created to
546 read:
547 PART XVIII
548 PROPERTY INSURANCE APPRAISERS
549 468.86 Property insurance appraiser licensing program;
550 legislative purpose; scope of part.—
551 (1) The property insurance appraiser licensing program is
552 created within the Department of Business and Professional
553 Regulation.
554 (2) The Legislature finds it necessary and in the interest
555 of the public safety and welfare, to prevent damage to real and
556 personal property, to avert economic injury to the residents of
557 this state, and to regulate persons and companies that hold
558 themselves out to the public as qualified to perform as a
559 property insurance appraiser.
560 (3) This part applies to residential and commercial
561 residential property insurance contracts and to the umpires and
562 appraisers who participate in the appraisal process.
563 (4) A person acting as a property insurance appraiser on or
564 after October 1, 2016, must be licensed pursuant to this part.
565 (5) The department may adopt rules to administer the
566 requirements of this part.
567 468.861 Definitions.—As used in this part, the term:
568 (1) “Appraisal” means the process defined in the property
569 insurance contract for determining the amount of the loss once
570 coverage is established.
571 (2) “Competent” means properly licensed, sufficiently
572 qualified, and capable of performing an appraisal.
573 (3) “Department” means the Department of Business and
574 Professional Regulation.
575 (4) “Independent” means not subject to control,
576 restriction, modification, or limitation by the appointing
577 party. A person may not accept an appointment as an appraiser if
578 the appointment is contingent upon the appraiser reporting a
579 predetermined result, analysis, or opinion, or if the fee to be
580 paid for the services of the appraiser is contingent upon the
581 opinion, conclusion, or valuation reached by the appraiser.
582 (5) “Property insurance appraisal umpire” or “umpire” means
583 a competent, licensed, independent, and impartial third party
584 selected by the licensed appraisers for the insurer and the
585 insured to resolve issues that the licensed appraisers are
586 unable to reach an agreement on during the course of the
587 appraisal process pursuant to a residential or commercial
588 property insurance contract that is required to provide for
589 resolution of a claim dispute by appraisal as defined in the
590 property insurance contract.
591 (6) “Property insurance appraiser” or “appraiser” means a
592 third party selected by an insurer or an insured to develop an
593 appraisal for purposes of the appraisal process under a
594 residential or commercial property insurance contract that
595 provides for resolution of a claim dispute by appraisal.
596 (7) “Uniform application” means the uniform application of
597 the National Association of Insurance Commissioners for
598 nonresident agent licensing, effective January 15, 2001, or
599 subsequent versions adopted by rule by the department.
600 468.8611 Fees.—
601 (1) The department, by rule, may establish fees to be paid
602 for application, examination, reexamination, licensing and
603 renewal, inactive status application, reactivation of inactive
604 licenses, and application for providers of continuing education.
605 The department may also establish by rule a delinquency fee.
606 Fees shall be based on department estimates of the revenue
607 required to implement the provisions of this part. Fees shall be
608 remitted with the application, examination, reexamination,
609 licensing and renewal, inactive status application, reactivation
610 of inactive licenses, and application for providers of
611 continuing education.
612 (2) The application fee shall not exceed $200 and is
613 nonrefundable. The examination fee shall not exceed $200 plus
614 the actual per applicant cost to the department to purchase the
615 examination, if the department chooses to purchase the
616 examination. The examination fee shall be in an amount that
617 covers the cost of obtaining and administering the examination
618 and shall be refunded if the applicant is found ineligible to
619 sit for the examination.
620 (3) The fee for an initial license shall not exceed $250.
621 (4) The fee for an initial certificate of authorization
622 shall not exceed $250.
623 (5) The fee for a biennial license renewal shall not exceed
624 $500.
625 (6) The fee for application for inactive status shall not
626 exceed $125.
627 (7) The fee for reactivation of an inactive license shall
628 not exceed $250.
629 (8) The fee for applications from providers of continuing
630 education may not exceed $600.
631 (9) The fee for fingerprinting shall be included in the
632 department’s costs for the background check.
633 468.86115 Application for license as a property insurance
634 appraiser.—
635 (1) The department shall not issue a license as a property
636 insurance appraiser to any person except upon written
637 application previously filed with the department, with
638 qualification and advance payment of all applicable fees. Any
639 such application shall be made under oath or affirmation and
640 signed by the applicant. The department shall accept the uniform
641 application for a nonresident property insurance appraiser. The
642 department may adopt revised versions of the uniform application
643 by rule.
644 (2) In the application, the applicant shall set forth:
645 (a) His or her full name, age, social security number,
646 residence address, business address, mailing address, contact
647 telephone numbers, including a business telephone number, and e
648 mail address.
649 (b) Proof that he or she has completed or is in the process
650 of completing any required prelicensing course.
651 (c) Whether he or she has been refused or has voluntarily
652 surrendered or has had suspended or revoked a professional
653 license by the supervising officials of any state.
654 (d) Proof that the applicant meets the requirements of
655 licensure as a property insurance appraiser as required under
656 ss. 468.8611 and 468.8612, and this section.
657 (e) The applicant’s gender.
658 (f) The applicant’s native language.
659 (g) The applicant’s highest achieved level of education.
660 (h) All education requirements that the applicant has
661 completed to qualify as a property insurance appraiser,
662 including the name of the course, the course provider, and the
663 course completion dates.
664 (3) Each application shall be accompanied by payment of any
665 applicable fee.
666 (4) At the time of application, the applicant must be
667 fingerprinted by a law enforcement agency or other entity
668 approved by the department, and he or she must pay the
669 fingerprint processing fee in s. 468.8611. Fingerprints must be
670 processed by the Department of Law Enforcement.
671 (5) The Department of Law Enforcement may, to the extent
672 provided for by federal law, exchange state, multistate, and
673 federal criminal history records with the department or office
674 for the purpose of the issuance, denial, suspension, or
675 revocation of a certificate of authority, certification, or
676 license to operate in this state.
677 (6) The Department of Law Enforcement may accept
678 fingerprints of any other person required by statute or rule to
679 submit fingerprints to the department or office or any applicant
680 or licensee regulated by the department or office who is
681 required to demonstrate that he or she has not been convicted of
682 or pled guilty or nolo contendere to a felony or a misdemeanor.
683 (7) The Department of Law Enforcement shall, upon receipt
684 of fingerprints from the department or office, submit the
685 fingerprints to the Federal Bureau of Investigation for a
686 federal criminal history records check.
687 (8) Statewide criminal records obtained through the
688 Department of Law Enforcement, federal criminal records obtained
689 through the Federal Bureau of Investigation, and local criminal
690 records obtained through local law enforcement agencies shall be
691 used by the department and office for the purpose of issuance,
692 denial, suspension, or revocation of certificates of authority,
693 certifications, or licenses issued to operate in this state.
694 (9) The department shall develop and maintain as a public
695 record a current list of licensed property insurance appraisers.
696 468.8612 Examinations.–
697 (1) A person desiring to be licensed as a property
698 insurance appraiser must apply to the department after
699 satisfying the examination requirements of this part. The
700 following persons are exempt from the examination requirements
701 of this part:
702 (a) Retired county, circuit, and appellate judges.
703 (b) Circuit court civil certified mediators approved by the
704 Florida Supreme Court pursuant to the Florida Rules for
705 Certified and Court-Appointed Mediators.
706 (c) Mediators who are on the list of approved mediators
707 pursuant to rule 69J-166.031, Florida Administrative Code.
708 (2) An applicant may practice in this state as a property
709 insurance appraiser if he or she passes the required
710 examination, is of good moral character, and meets one of the
711 following requirements:
712 (a) The applicant is currently licensed, registered,
713 certified, or approved as an engineer as defined in s. 471.005,
714 or as a retired professional engineer as defined in s. 471.005,
715 and has taught or successfully completed 4 hours of classroom
716 coursework, approved by the department, specifically related to
717 construction, building codes, appraisal procedures, appraisal
718 preparation, and any other related material deemed appropriate
719 by the department.
720 (b) The applicant is currently or, within the 5 years
721 immediately preceding the date on which the application is filed
722 with the department, has been licensed, registered, certified,
723 or approved as a general contractor, building contractor, or
724 residential contractor as defined in s. 489.105 and has taught
725 or successfully completed 4 hours of classroom coursework,
726 approved by the department, specifically related to
727 construction, building codes, appraisal procedure, appraisal
728 preparation, and any other related material deemed appropriate
729 by the department.
730 (c) The applicant is currently or, within the 5 years
731 immediately preceding the date on which the application is filed
732 with the department, has been licensed or registered as an
733 architect to engage in the practice of architecture pursuant to
734 part I of chapter 481 and has taught or successfully completed 4
735 hours of classroom coursework, approved by the department,
736 specifically related to construction, building codes, appraisal
737 procedure, appraisal preparation, and any other related material
738 deemed appropriate by the department.
739 (d) The applicant is currently or, within the 5 years
740 immediately preceding the date on which the application is filed
741 with the department, has been a licensed attorney in this state
742 and has taught or successfully completed 4 hours of classroom
743 coursework, approved by the department, specifically related to
744 construction, building codes, appraisal procedure, appraisal
745 preparation, and any other related material deemed appropriate
746 by the department.
747 (e) The applicant has received a baccalaureate degree from
748 an accredited 4-year college or university in the field of
749 engineering, architecture, or building construction and has
750 taught or successfully completed 4 hours of classroom
751 coursework, approved by the department, specifically related to
752 construction, building codes, appraisal procedure, appraisal
753 preparation, and any other related material deemed appropriate
754 by the department.
755 (f) The applicant is a currently licensed adjuster whose
756 license covers all lines of insurance except the life and
757 annuities class. The adjuster’s license must include the
758 property and casualty class of insurance. The currently licensed
759 adjuster must be licensed for at least 3 years to qualify for a
760 property insurance appraiser’s license.
761 (g) The applicant has successfully completed 40 hours of
762 classroom coursework, approved by the department, specifically
763 related to construction, building codes, appraisal procedure,
764 appraisal preparation, property insurance, and any other related
765 material deemed appropriate by the department.
766 (3) The department shall review and approve courses of
767 study for the continuing education of property insurance
768 appraisers.
769 (4) The department may not issue a license as a property
770 insurance appraiser to any individual found by it to be
771 untrustworthy or incompetent or who:
772 (a) Has not filed an application with the department in
773 accordance with s. 468.85115.
774 (b) Is not a natural person who is at least 18 years of
775 age.
776 (c) Is not a United States citizen or legal alien who
777 possesses work authorization from the United States Citizenship
778 and Immigration Services.
779 (d) Has not completed the education, experience, or
780 licensing requirements in this section.
781 (5) An incomplete application expires 6 months after the
782 date it is received by the department.
783 (6) An applicant seeking to become licensed under this part
784 may not be rejected solely by virtue of membership or lack of
785 membership in any particular appraisal organization.
786 468.8613 Licensure.—
787 (1) The department shall license any applicant who the
788 department certifies has completed the requirements of ss.
789 468.8611, 468.86115, and 468.8612.
790 (2) The department shall not issue a license by endorsement
791 to any applicant for a property insurance appraiser license who
792 is under investigation in another state for any act that would
793 constitute a violation of this part until such time that the
794 investigation is complete and disciplinary proceedings have been
795 terminated.
796 468.8614 Renewal of license.—
797 (1) The department shall renew a license upon receipt of
798 the renewal application and fee and upon certification by the
799 department that the licensee has satisfactorily completed the
800 continuing education requirements of s. 468.8615.
801 (2) The department shall adopt rules establishing a
802 procedure for the biennial renewal of licenses.
803 468.8615 Continuing education.—
804 (1) The department may not renew a license until the
805 licensee submits satisfactory proof to the department that,
806 during the 2 years before his or her application for renewal,
807 the licensee completed at least 30 hours of continuing education
808 in addition to 5 hours of ethics. Criteria and course content
809 shall be approved by the department by rule.
810 (2) The department may prescribe by rule additional
811 continuing professional education hours, not to exceed 25
812 percent of the total required hours, for failure to complete the
813 required hours for renewal by the end of the renewal period.
814 (3) Each appraiser course provider, instructor, and
815 classroom course must be approved by and registered with the
816 department before prelicensure courses for property insurance
817 appraisers may be offered. Each classroom course must include a
818 written examination at the conclusion of the course and must
819 cover all of the material contained in the course. A student may
820 not receive credit for the course unless the student achieves a
821 grade of at least 75 percent on the examination.
822 (4) The department shall adopt rules establishing:
823 (a) Standards for the approval, registration, discipline,
824 or removal from registration of course providers, instructors,
825 and courses. The standards must be designed to ensure that
826 instructors have the knowledge, competence, and integrity to
827 fulfill the educational objectives of the prelicensure
828 requirements of this part.
829 (b) A process for determining compliance with the
830 prelicensure requirements of this part.
831
832 The department shall adopt rules prescribing the forms necessary
833 to administer the prelicensure requirements of this part.
834 (5) Approval to teach prescribed or approved appraisal
835 courses does not entitle the instructor to teach any courses
836 outside the scope of this part.
837 468.8616 Inactive license.—
838 (1) A licensee may request that his or her license be
839 placed on inactive status by filing an application with the
840 department.
841 (2) A license that has become inactive may be reactivated
842 upon application to the department. The department may prescribe
843 by rule continuing education requirements as a condition for
844 reactivation of an inactive license. The continuing education
845 requirements for reactivating a license may not exceed 14 hours
846 for each year the license was inactive.
847 (3) The department shall adopt rules relating to licenses
848 that have become inactive and for the renewal of inactive
849 licenses. The department shall prescribe by rule a fee not to
850 exceed $250 for the reactivation of an inactive license and a
851 fee not to exceed $250 for the renewal of an inactive license.
852 468.8617 Certification of partnerships, corporations, and
853 other business entities.—The practice of, or the offer to
854 practice as, a property insurance appraiser by licensees through
855 a partnership, corporation, or other business entity offering
856 property insurance appraiser services to the public, or by a
857 partnership, corporation, or other business entity through
858 licensees under this part as agents, employees, officers, or
859 partners is permitted subject to the provisions of this part.
860 This section does not allow a corporation or other business
861 entity to hold a license to practice property insurance
862 appraiser services. A partnership, corporation, or other
863 business entity is not relieved of responsibility for the
864 conduct or acts of its agents, employees, or officers by reason
865 of its compliance with this section. An individual practicing as
866 a property insurance appraiser is not relieved of responsibility
867 for professional services performed by reason of his or her
868 employment or relationship with a partnership, corporation, or
869 other business entity.
870 468.8618 Grounds for compulsory refusal, suspension, or
871 revocation of an appraiser’s license.—The department shall deny
872 an application for, suspend, revoke, or refuse to renew or
873 continue the license or appointment of any applicant, property
874 insurance appraiser, or licensee and shall suspend or revoke the
875 eligibility to hold a license or appointment of any such person
876 if it finds that any one or more of the following applicable
877 grounds exist:
878 (1) Lack of one or more of the qualifications for the
879 license as specified in this part.
880 (2) Material misstatement, misrepresentation, or fraud in
881 obtaining the license or in attempting to obtain the license or
882 appointment.
883 (3) Failure to pass to the satisfaction of the department
884 any examination required under this act.
885 (4) That the license or appointment was willfully used, or
886 will be used, to circumvent any of the requirements or
887 prohibitions of this code.
888 (5) Demonstrated a lack of fitness or trustworthiness to
889 engage as a property insurance appraiser.
890 (6) Demonstrated a lack of reasonably adequate knowledge
891 and technical competence to engage in the transactions
892 authorized by the license.
893 (7) Fraudulent or dishonest practices in the conduct of
894 business under the license.
895 (8) Willful failure to comply with, or willful violation
896 of, any proper order or rule of the department or willful
897 violation of any provision of this act.
898 (9) Having been found guilty of or having pled guilty or
899 nolo contendere to a felony or a crime punishable by
900 imprisonment of 1 year or more under the law of the United
901 States or of any state thereof or under the law of any other
902 country which involves moral turpitude, without regard to
903 whether a judgment of conviction has been entered by the court
904 having jurisdiction of such cases.
905 (10) Violated a duty imposed upon her or him by law or by
906 the terms of a contract, whether written, oral, expressed, or
907 implied, in an appraisal; has aided, assisted, or conspired with
908 any other person engaged in any such misconduct and in
909 furtherance thereof; or has formed an intent, design, or scheme
910 to engage in such misconduct and committed an overt act in
911 furtherance of such intent, design, or scheme. It is immaterial
912 to a finding that a licensee has committed a violation of this
913 subsection that the victim or intended victim of the misconduct
914 has sustained no damage or loss, that the damage or loss has
915 been settled and paid after the discovery of misconduct, or that
916 such victim or intended victim was a customer or a person in a
917 confidential relationship with the licensee or was an identified
918 member of the general public.
919 (11) Had a registration, license, or certification as an
920 appraiser revoked, suspended, or otherwise acted against; has
921 had his or her registration, license, or certificate to practice
922 or conduct any regulated profession, business, or vocation
923 revoked or suspended by this or any other state, any nation, or
924 any possession or district of the United States; or has had an
925 application for such registration, licensure, or certification
926 to practice or conduct any regulated profession, business, or
927 vocation denied by this or any other state, any nation, or any
928 possession or district of the United States.
929 (12)(a) Made or filed a report or record, written or oral,
930 which the licensee knows to be false;
931 (b) Has willfully failed to file a report or record
932 required by state or federal law;
933 (c) Has willfully impeded or obstructed such filing; or
934 (d) Has induced another person to impede or obstruct such
935 filing.
936 (13) Accepted an appointment as an appraiser if the
937 appointment is contingent upon the appraiser reporting a
938 predetermined result, analysis, or opinion, or if the fee to be
939 paid for the services of the appraiser is contingent upon the
940 opinion, conclusion, or valuation reached by the appraiser.
941 468.86185 Grounds for discretionary denial, suspension, or
942 revocation of an appraiser’s license.-The department may deny an
943 application for and suspend, revoke, or refuse to renew or
944 continue a license as a property insurance appraiser if the
945 applicant or licensee has:
946 (1) Failed to timely communicate with the opposing party’s
947 appraiser without good cause.
948 (2) Failed or refused to exercise reasonable diligence in
949 submitting recommendations to the opposing party’s appraiser.
950 (3) Violated any ethical standard for property insurance
951 appraisers set forth in s. 468.8619.
952 (4) Failed to inform the department in writing within 30
953 days after pleading guilty or nolo contendere to, or being
954 convicted or found guilty of, a felony.
955 (5) Failed to timely notify the department of any change in
956 business location or has failed to fully disclose all business
957 locations from which he or she operates as a property insurance
958 appraiser.
959 468.8619 Ethical standards for property insurance
960 appraisers.—
961 (1) CONFIDENTIALITY.—An appraiser shall maintain
962 confidentiality of all information revealed during an appraisal
963 except to the party that hired the appraiser and except where
964 disclosure is required by law.
965 (2) RECORDKEEPING.—An appraiser shall maintain
966 confidentiality in the storage and disposal of records and may
967 not disclose any identifying information when materials are used
968 for research, training, or statistical compilations.
969 (3) FEES AND EXPENSES.—Fees charged for appraisal services
970 shall be reasonable and consistent with the nature of the case.
971 An appraiser shall be guided by the following in determining
972 fees:
973 (a) All charges for services as an appraiser based on time
974 may not exceed actual time spent or allocated.
975 (b) Charges for costs shall be for those actually incurred.
976 (4) MAINTENANCE OF RECORDS.—An appraiser shall maintain
977 records necessary to support charges for services and expenses,
978 and upon request shall provide an accounting of all applicable
979 charges to the parties. An appraiser licensed under this part
980 shall retain for at least 5 years original or true copies of any
981 contracts engaging the appraiser’s services, appraisal reports,
982 and supporting data assembled and formulated by the appraiser in
983 preparing appraisal reports. The period for retaining the
984 records applicable to each engagement starts on the date of the
985 submission of the appraisal report to the client. The records
986 must be made available by the appraiser for inspection and
987 copying by the department upon reasonable notice to the
988 appraiser. If an appraisal has been the subject of, or has been
989 admitted as evidence in, a lawsuit, reports, and records the
990 appraisal must be retained for at least 2 years after the date
991 that the trial ends.
992 (5) ADVERTISING.—An appraiser may not engage in marketing
993 practices that contain false or misleading information. An
994 appraiser shall ensure that any advertisements of the
995 appraiser’s qualifications, services to be rendered, or the
996 appraisal process are accurate and honest. An appraiser may not
997 make claims of achieving specific outcomes or promises implying
998 favoritism for the purpose of obtaining business.
999 (6) INTEGRITY AND IMPARTIALITY.—An appraiser may not accept
1000 any engagement, provide any service, or perform any act that
1001 would compromise the appraiser’s integrity or impartiality.
1002 (a) An appraiser may not accept an appointment unless he or
1003 she can:
1004 1. Serve impartially;
1005 2. Serve independently from the party appointing him or
1006 her;
1007 3. Serve competently; and
1008 4. Be available to promptly commence the appraisal, and
1009 thereafter devote the time and attention to its completion in a
1010 manner expected by all involved parties.
1011 (b) An appraiser shall conduct the appraisal process in a
1012 manner that advances the fair and efficient resolution of the
1013 matters submitted for decision. A licensed appraiser shall make
1014 all reasonable efforts to prevent delays in the appraisal
1015 process, the harassment of parties or other participants, or
1016 other abuse or disruption of the appraisal process.
1017 (c) Once a licensed appraiser has accepted an appointment,
1018 the appraiser may not withdraw or abandon the appointment unless
1019 compelled to do so by unanticipated circumstances that would
1020 render it impossible or impracticable to continue.
1021 (d) The licensed appraiser shall, after careful
1022 deliberation, decide all issues submitted for determination and
1023 no other issues. A licensed appraiser shall decide all matters
1024 justly, exercising independent judgment, and may not allow
1025 outside pressure to affect the decision. An appraiser may not
1026 delegate the duty to decide to any other person.
1027 (7) SKILL AND EXPERIENCE.—An appraiser shall decline an
1028 appointment or selection, withdraw, or request appropriate
1029 assistance when the facts and circumstances of the appraisal are
1030 beyond the appraiser’s skill or experience.
1031 (8) GIFTS AND SOLICITATION.—An appraiser may not give or
1032 accept any gift, favor, loan, or other item of value in an
1033 appraisal process except for the appraiser’s reasonable fee.
1034 During the appraisal process, an appraiser may not solicit or
1035 otherwise attempt to procure future professional services.
1036 (9) COMMUNICATIONS WITH PARTIES.—
1037 (a) If an agreement of the parties establishes the manner
1038 or content of the communications between the appraisers, the
1039 parties, and the umpire, the appraisers shall abide by such
1040 agreement. In the absence of agreement, an appraiser may not
1041 discuss a proceeding with any party or with the umpire in the
1042 absence of any other party, except in the following
1043 circumstances:
1044 1. If the appointment of the appraiser or umpire is being
1045 considered, the prospective appraiser or umpire may ask about
1046 the identities of the parties, counsel, and the general nature
1047 of the case, and may respond to inquiries from a party, its
1048 counsel or an umpire designed to determine his or her
1049 suitability and availability for the appointment;
1050 2. To consult with the party who appointed the appraiser
1051 concerning the selection of a neutral umpire;
1052 3. To make arrangements for any compensation to be paid by
1053 the party who appointed the appraiser; or
1054 4. To make arrangements for obtaining materials and
1055 inspection of the property with the party who appointed the
1056 appraiser. Such communication is limited to scheduling and the
1057 exchange of materials.
1058 (b) There may be no communications whereby a party dictates
1059 to an appraiser what the result of the proceedings must be, what
1060 matters or elements may be included or considered by the
1061 appraiser, or what actions the appraiser may take.
1062 Section 3. This act shall take effect July 1, 2015.