Bill Amendment: FL S1046 | 2013 | Regular Session
NOTE: For additional amemendments please see the Bill Drafting List
Bill Title: Insurance
Status: 2013-04-26 - Laid on Table, companion bill(s) passed, see CS/HB 157 (Ch. 2013-190), CS/HB 1191 (Ch. 2013-209), CS/CS/HB 7125 (Ch. 2013-160), SB 356 (Ch. 2013-125), CS/CS/SB 468 (Ch. 2013-66), CS/SB 1842 (Ch. 2013-101) [S1046 Detail]
Download: Florida-2013-S1046-Banking_and_Insurance_Committee_Amendment_Delete_All_457546.html
Bill Title: Insurance
Status: 2013-04-26 - Laid on Table, companion bill(s) passed, see CS/HB 157 (Ch. 2013-190), CS/HB 1191 (Ch. 2013-209), CS/CS/HB 7125 (Ch. 2013-160), SB 356 (Ch. 2013-125), CS/CS/SB 468 (Ch. 2013-66), CS/SB 1842 (Ch. 2013-101) [S1046 Detail]
Download: Florida-2013-S1046-Banking_and_Insurance_Committee_Amendment_Delete_All_457546.html
Florida Senate - 2013 COMMITTEE AMENDMENT Bill No. SB 1046 Barcode 457546 LEGISLATIVE ACTION Senate . House Comm: RS . 04/02/2013 . . . . ————————————————————————————————————————————————————————————————— ————————————————————————————————————————————————————————————————— The Committee on Banking and Insurance (Hays) recommended the following: 1 Senate Amendment (with title amendment) 2 3 Delete everything after the enacting clause 4 and insert: 5 Section 1. Paragraph (b) of subsection (6) of section 6 215.555, Florida Statutes, is amended to read: 7 215.555 Florida Hurricane Catastrophe Fund.— 8 (6) REVENUE BONDS.— 9 (b) Emergency assessments.— 10 1. If the board determines that the amount of revenue 11 produced under subsection (5) is insufficient to fund the 12 obligations, costs, and expenses of the fund and the 13 corporation, including repayment of revenue bonds and that 14 portion of the debt service coverage not met by reimbursement 15 premiums, the board shall direct the Office of Insurance 16 Regulation to levy, by order, an emergency assessment on direct 17 premiums for all property and casualty lines of business in this 18 state, including property and casualty business of surplus lines 19 insurers regulated under part VIII of chapter 626, but not 20 including any workers’ compensation premiums or medical 21 malpractice premiums. As used in this subsection, the term 22 “property and casualty business” includes all lines of business 23 identified on Form 2, Exhibit of Premiums and Losses, in the 24 annual statement required of authorized insurers by s. 624.424 25 and any rule adopted under this section, except for those lines 26 identified as accident and health insurance and except for 27 policies written under the National Flood Insurance Program. The 28 assessment shall be specified as a percentage of direct written 29 premium and is subject to annual adjustments by the board in 30 order to meet debt obligations. The same percentage shall apply 31 to all policies in lines of business subject to the assessment 32 issued or renewed during the 12-month period beginning on the 33 effective date of the assessment. 34 2. A premium is not subject to an annual assessment under 35 this paragraph in excess of 6 percent of premium with respect to 36 obligations arising out of losses attributable to any one 37 contract year, and a premium is not subject to an aggregate 38 annual assessment under this paragraph in excess of 10 percent 39 of premium. An annual assessment under this paragraph shall 40 continue as long as the revenue bonds issued with respect to 41 which the assessment was imposed are outstanding, including any 42 bonds the proceeds of which were used to refund the revenue 43 bonds, unless adequate provision has been made for the payment 44 of the bonds under the documents authorizing issuance of the 45 bonds. 46 3. Emergency assessments shall be collected from 47 policyholders. Emergency assessments shall be remitted by 48 insurers as a percentage of direct written premium for the 49 preceding calendar quarter as specified in the order from the 50 Office of Insurance Regulation. The office shall verify the 51 accurate and timely collection and remittance of emergency 52 assessments and shall report the information to the board in a 53 form and at a time specified by the board. Each insurer 54 collecting assessments shall provide the information with 55 respect to premiums and collections as may be required by the 56 office to enable the office to monitor and verify compliance 57 with this paragraph. 58 4. With respect to assessments of surplus lines premiums, 59 each surplus lines agent shall collect the assessment at the 60 same time as the agent collects the surplus lines tax required 61 by s. 626.932, and the surplus lines agent shall remit the 62 assessment to the Florida Surplus Lines Service Office created 63 by s. 626.921 at the same time as the agent remits the surplus 64 lines tax to the Florida Surplus Lines Service Office. The 65 emergency assessment on each insured procuring coverage and 66 filing under s. 626.938 shall be remitted by the insured to the 67 Florida Surplus Lines Service Office at the time the insured 68 pays the surplus lines tax to the Florida Surplus Lines Service 69 Office. The Florida Surplus Lines Service Office shall remit the 70 collected assessments to the fund or corporation as provided in 71 the order levied by the Office of Insurance Regulation. The 72 Florida Surplus Lines Service Office shall verify the proper 73 application of such emergency assessments and shall assist the 74 board in ensuring the accurate and timely collection and 75 remittance of assessments as required by the board. The Florida 76 Surplus Lines Service Office shall annually calculate the 77 aggregate written premium on property and casualty business, 78 other than workers’ compensation and medical malpractice, 79 procured through surplus lines agents and insureds procuring 80 coverage and filing under s. 626.938 and shall report the 81 information to the board in a form and at a time specified by 82 the board. 83 5. Any assessment authority not used for a particular 84 contract year may be used for a subsequent contract year. If, 85 for a subsequent contract year, the board determines that the 86 amount of revenue produced under subsection (5) is insufficient 87 to fund the obligations, costs, and expenses of the fund and the 88 corporation, including repayment of revenue bonds and that 89 portion of the debt service coverage not met by reimbursement 90 premiums, the board shall direct the Office of Insurance 91 Regulation to levy an emergency assessment up to an amount not 92 exceeding the amount of unused assessment authority from a 93 previous contract year or years, plus an additional 4 percent 94 provided that the assessments in the aggregate do not exceed the 95 limits specified in subparagraph 2. 96 6. The assessments otherwise payable to the corporation 97 under this paragraph shall be paid to the fund unless and until 98 the Office of Insurance Regulation and the Florida Surplus Lines 99 Service Office have received from the corporation and the fund a 100 notice, which shall be conclusive and upon which they may rely 101 without further inquiry, that the corporation has issued bonds 102 and the fund has no agreements in effect with local governments 103 under paragraph (c). On or after the date of the notice and 104 until the date the corporation has no bonds outstanding, the 105 fund shall have no right, title, or interest in or to the 106 assessments, except as provided in the fund’s agreement with the 107 corporation. 108 7. Emergency assessments are not premium and are not 109 subject to the premium tax, to the surplus lines tax, to any 110 fees, or to any commissions. An insurer is liable for all 111 assessments that it collects and must treat the failure of an 112 insured to pay an assessment as a failure to pay the premium. An 113 insurer is not liable for uncollectible assessments. 114 8. When an insurer is required to return an unearned 115 premium, it shall also return any collected assessment 116 attributable to the unearned premium. A credit adjustment to the 117 collected assessment may be made by the insurer with regard to 118 future remittances that are payable to the fund or corporation, 119 but the insurer is not entitled to a refund. 120 9. When a surplus lines insured or an insured who has 121 procured coverage and filed under s. 626.938 is entitled to the 122 return of an unearned premium, the Florida Surplus Lines Service 123 Office shall provide a credit or refund to the agent or such 124 insured for the collected assessment attributable to the 125 unearned premium beforeprior toremitting the emergency 126 assessment collected to the fund or corporation. 12710. The exemption of medical malpractice insurance premiums128from emergency assessments under this paragraph is repealed May12931, 2013, and medical malpractice insurance premiums shall be130subject to emergency assessments attributable to loss events131occurring in the contract years commencing on June 1, 2013.132 Section 2. Subsection (1) of section 316.646, Florida 133 Statutes, is amended, and subsection (5) is added to that 134 section, to read: 135 316.646 Security required; proof of security and display 136 thereof; dismissal of cases.— 137 (1) Any person required by s. 324.022 to maintain property 138 damage liability security, required by s. 324.023 to maintain 139 liability security for bodily injury or death, or required by s. 140 627.733 to maintain personal injury protection security on a 141 motor vehicle shall have in his or her immediate possession at 142 all times while operating such motor vehicle proper proof of 143 maintenance of the required security. Such proof shall be a 144 uniform proof-of-insurance card, in paper or electronic format, 145 in a form prescribed by the department, a valid insurance 146 policy, an insurance policy binder, a certificate of insurance, 147 or such other proof as may be prescribed by the department. If a 148 person presents an electronic device to a law enforcement 149 officer for the purpose of displaying a proof-of-insurance card 150 in an electronic format: 151 (a) The person presenting the device is not deemed to 152 consent to access to any information on the electronic device 153 other than the displayed proof-of-insurance card. 154 (b) The law enforcement officer is not liable for any 155 damage to the electronic device. 156 (5) The department may adopt rules to implement this 157 section. 158 Section 3. Paragraph (a) of subsection (5) of section 159 320.02, Florida Statutes, is amended to read: 160 320.02 Registration required; application for registration; 161 forms.— 162 (5)(a) Proof that personal injury protection benefits have 163 been purchased when required under s. 627.733, that property 164 damage liability coverage has been purchased as required under 165 s. 324.022, that bodily injury or death coverage has been 166 purchased if required under s. 324.023, and that combined bodily 167 liability insurance and property damage liability insurance have 168 been purchased when required under s. 627.7415 shall be provided 169 in the manner prescribed by law by the applicant at the time of 170 application for registration of any motor vehicle that is 171 subject to such requirements. The issuing agent shall refuse to 172 issue registration if such proof of purchase is not provided. 173 Insurers shall furnish uniform proof-of-purchase cards, in paper 174 or electronic format, in a form prescribed by the department and 175 shall include the name of the insured’s insurance company, the 176 coverage identification number, and the make, year, and vehicle 177 identification number of the vehicle insured. The card shall 178 contain a statement notifying the applicant of the penalty 179 specified in s. 316.646(4). The card or insurance policy, 180 insurance policy binder, or certificate of insurance or a 181 photocopy of any of these; an affidavit containing the name of 182 the insured’s insurance company, the insured’s policy number, 183 and the make and year of the vehicle insured; or such other 184 proof as may be prescribed by the department shall constitute 185 sufficient proof of purchase. If an affidavit is provided as 186 proof, it shall be in substantially the following form: 187 188 Under penalty of perjury, I ...(Name of insured)... do hereby 189 certify that I have ...(Personal Injury Protection, Property 190 Damage Liability, and, when required, Bodily Injury 191 Liability)... Insurance currently in effect with ...(Name of 192 insurance company)... under ...(policy number)... covering 193 ...(make, year, and vehicle identification number of 194 vehicle).... ...(Signature of Insured)... 195 196 Such affidavit shall include the following warning: 197 198 WARNING: GIVING FALSE INFORMATION IN ORDER TO OBTAIN A VEHICLE 199 REGISTRATION CERTIFICATE IS A CRIMINAL OFFENSE UNDER FLORIDA 200 LAW. ANYONE GIVING FALSE INFORMATION ON THIS AFFIDAVIT IS 201 SUBJECT TO PROSECUTION. 202 203 When an application is made through a licensed motor vehicle 204 dealer as required in s. 319.23, the original or a photostatic 205 copy of such card, insurance policy, insurance policy binder, or 206 certificate of insurance or the original affidavit from the 207 insured shall be forwarded by the dealer to the tax collector of 208 the county or the Department of Highway Safety and Motor 209 Vehicles for processing. By executing the aforesaid affidavit, 210 no licensed motor vehicle dealer will be liable in damages for 211 any inadequacy, insufficiency, or falsification of any statement 212 contained therein. A card shall also indicate the existence of 213 any bodily injury liability insurance voluntarily purchased. 214 Section 4. Subsection (8) is added to section 554.1021, 215 Florida Statutes, to read: 216 554.1021 Definitions.—As used in ss. 554.1011-554.115: 217 (8) “Authorized inspection agency” means: 218 (a) Any county, city, town, or other governmental 219 subdivision that has adopted and administers, at a minimum, 220 Section I of the A.S.M.E. Boiler and Pressure Vessel Code as a 221 legal requirement and whose inspectors hold valid certificates 222 of competency in accordance with s. 554.113; or 223 (b) Any insurance company that is licensed or registered by 224 an appropriate authority of any state of the United States or 225 province of Canada and whose inspectors hold valid certificates 226 of competency in accordance with s. 554.113. 227 Section 5. Section 554.107, Florida Statutes, is amended to 228 read: 229 554.107 Special inspectors.— 230 (1) Upon application by any authorized inspection agency 231company licensed to insure boilers in this state, the chief 232 inspector shall issue a certificate of competency as a special 233 inspector to any inspector employed by the authorized inspection 234 agencycompany, provided that such inspector satisfies the 235 competency requirements for inspectors as provided in s. 236 554.113. 237 (2) The certificate of competency of a special inspector 238 shall remain in effect only so long as the special inspector is 239 employed by an authorized inspection agencya company licensed240to insure boilers in this state. Upon termination of employment 241 with such agencycompany, a special inspector shall, in writing, 242 notify the chief inspector of such termination. Such notice 243 shall be given within 15 days following the date of termination. 244 Section 6. Subsection (1) of section 554.109, Florida 245 Statutes, is amended to read: 246 554.109 Exemptions.— 247 (1) Any insurance company insuring a boiler located in a 248 public assembly location in this state shall inspect or contract 249 with an authorized inspection agency to inspect such boilerso250insured,and shall annually report to the department the 251 identity of any authorized inspection agency performing any 252 required boiler inspection on behalf of the company. Aany253 county, city, town, or other governmental subdivision thatwhich254 has adopted into law the Boiler and Pressure Vessel Code of the 255 American Society of Mechanical Engineers and the National Board 256 Inspection Code for the construction, installation, inspection, 257 maintenance, and repair of boilers, regulating such boilers in 258 public assembly locations, shall inspect such boilers so 259 regulated; provided that such inspection shall be conducted by a 260 special inspector licensed pursuant to ss. 554.1011-554.115. 261 Upon filing of a report of satisfactory inspection with the 262 department, such boiler is exempt from inspection by the 263 department. 264 Section 7. Paragraph (f) of subsection (1) of section 265 624.413, Florida Statutes, is amended to read: 266 624.413 Application for certificate of authority.— 267 (1) To apply for a certificate of authority, an insurer 268 shall file its application therefor with the office, upon a form 269 adopted by the commission and furnished by the office, showing 270 its name; location of its home office and, if an alien insurer, 271 its principal office in the United States; kinds of insurance to 272 be transacted; state or country of domicile; and such additional 273 information as the commission reasonably requires, together with 274 the following documents: 275 (f) If a foreign or alien insurer, a copy of the report of 276 the most recent examination of the insurer certified by the 277 public official having supervision of insurance in its state of 278 domicile or of entry into the United States. The end of the most 279 recent year covered by the examination must be within the 5-year 2803-yearperiod preceding the date of application. In lieu of the 281 certified examination report, the office may accept an audited 282 certified public accountant’s report prepared on a basis 283 consistent with the insurance laws of the insurer’s state of 284 domicile, certified by the public official having supervision of 285 insurance in its state of domicile or of entry into the United 286 States. 287 Section 8. Subsection (4) is added to section 626.0428, 288 Florida Statutes, to read: 289 626.0428 Agency personnel powers, duties, and limitations.— 290 (4)(a) Each place of business established by an agent or 291 agency, firm, corporation, or association shall be in the active 292 full-time charge of a licensed and appointed agent holding the 293 required agent licenses to transact the lines of insurance being 294 handled at the location. 295 (b) Notwithstanding paragraph (a), the licensed agent in 296 charge of an insurance agency may also be the agent in charge of 297 additional branch office locations of the agency if insurance 298 activities requiring licensure as an insurance agent do not 299 occur at any location when the agent is not physically present 300 and unlicensed employees at the location do not engage in any 301 insurance activities requiring licensure as an insurance agent 302 or customer representative. 303 (c) An insurance agency and each branch place of business 304 of an insurance agency shall designate an agent in charge and 305 file the name and license number of the agent in charge and the 306 physical address of the insurance agency location with the 307 department at the department’s designated website. The 308 designation of the agent in charge may be changed at the option 309 of the agency, and any change shall be effective upon 310 notification to the department. Notice to the department must be 311 provided within 30 days after such change. 312 (d) For the purposes of this subsection, an “agent in 313 charge” is the licensed and appointed agent who is responsible 314 for the supervision of all individuals within an insurance 315 agency location, regardless of whether such individuals deal 316 with the general public in the solicitation or negotiation of 317 insurance contracts or the collection or accounting of moneys. 318 (e) An agent in charge of an insurance agency is 319 accountable for any wrongful acts, misconduct, or violations of 320 provisions of this code committed by the agent or by any person 321 under his or her supervision while acting on behalf of the 322 agency. This section may not be construed to render the agent in 323 charge criminally liable for an act unless he or she personally 324 committed or knew or should have known of the act and of the 325 facts constituting a violation of this chapter. 326 (f) An insurance agency location may not conduct the 327 business of insurance unless the agency designates an agent in 328 charge at all times. If the agency fails to update the 329 designation of the agent in charge within 90 days after the date 330 of a change in designation, the department shall automatically 331 revoke the agency’s license. 332 Section 9. Subsection (7) of section 626.112, Florida 333 Statutes, is amended to read: 334 626.112 License and appointment required; agents, customer 335 representatives, adjusters, insurance agencies, service 336 representatives, managing general agents.— 337 (7)(a)Effective October 1, 2006,No individual, firm, 338 partnership, corporation, association, or any other entity shall 339 act in its own name or under a trade name, directly or 340 indirectly, as an insurance agency, unless it complies with s. 341 626.172 with respect to possessing an insurance agency license 342 for each place of business at which it engages in any activity 343 which may be performed only by a licensed insurance agent. 344 However, an insurance agency that is owned and operated by a 345 single licensed agent conducting business in his or her 346 individual name and not employing or otherwise using the 347 services of or appointing other licensees shall be exempt from 348 the agency licensing requirements of this subsection. A branch 349 place of business that is established by a licensed agency is 350 considered a branch agency and is not required to be licensed so 351 long as it transacts business under the same name and federal 352 tax identification number as the licensed agency and has 353 designated a licensed agent in charge of the location as 354 required by s. 626.0428 and the address and telephone number of 355 the location have been submitted to the department for inclusion 356 in the licensing record of the licensed agency within 30 days 357 after insurance transactions begin at the locationEach agency358engaged in business in this state before January 1, 2003, which359is wholly owned by insurance agents currently licensed and360appointed under this chapter, each incorporated agency whose361voting shares are traded on a securities exchange, each agency362designated and subject to supervision and inspection as a branch363office under the rules of the National Association of Securities364Dealers, and each agency whose primary function is offering365insurance as a service or member benefit to members of a366nonprofit corporation may file an application for registration367in lieu of licensure in accordance with s.626.172(3).Each368agency engaged in business before October 1, 2006, shall file an369application for licensure or registration on or before October3701, 2006.371 (b)1.If an agency is required to be licensed but fails to 372 file an application for licensure in accordance with this 373 section, the department shall impose on the agency an 374 administrative penalty in an amount of up to $10,000. 3752. If an agency is eligible for registration but fails to376file an application for registration or an application for377licensure in accordance with this section, the department shall378impose on the agency an administrative penalty in an amount of379up to $5,000.380 (c)(b)Effective October 1, 2013, the department must 381 automatically convert the registration of an approveda382 registered insurance agency toshall, as a condition precedent383to continuing business, obtainan insurance agency licenseif384the department finds that, with respect to any majority owner,385partner, manager, director, officer, or other person who manages386or controls the agency, any person has:3871. Been found guilty of, or has pleaded guilty or nolo388contendere to, a felony in this state or any other state389relating to the business of insurance or to an insurance agency,390without regard to whether a judgment of conviction has been391entered by the court having jurisdiction of the cases. 3922. Employed any individual in a managerial capacity or in a393capacity dealing with the public who is under an order of394revocation or suspension issued by the department. An insurance395agency may request, on forms prescribed by the department,396verification of any person’s license status. If a request is397mailed within 5 working days after an employee is hired, and the398employee’s license is currently suspended or revoked, the agency399shall not be required to obtain a license, if the unlicensed400person’s employment is immediately terminated.4013. Operated the agency or permitted the agency to be402operated in violation of s.626.747.4034. With such frequency as to have made the operation of the404agency hazardous to the insurance-buying public or other405persons:406a. Solicited or handled controlled business. This407subparagraph shall not prohibit the licensing of any lending or408financing institution or creditor, with respect to insurance409only, under credit life or disability insurance policies of410borrowers from the institutions, which policies are subject to411part IX of chapter 627.412b. Misappropriated, converted, or unlawfully withheld413moneys belonging to insurers, insureds, beneficiaries, or others414and received in the conduct of business under the license.415c. Unlawfully rebated, attempted to unlawfully rebate, or416unlawfully divided or offered to divide commissions with417another.418d. Misrepresented any insurance policy or annuity contract,419or used deception with regard to any policy or contract, done420either in person or by any form of dissemination of information421or advertising.422e. Violated any provision of this code or any other law423applicable to the business of insurance in the course of dealing424under the license.425f. Violated any lawful order or rule of the department.426g. Failed or refused, upon demand, to pay over to any427insurer he or she represents or has represented any money coming428into his or her hands belonging to the insurer.429h. Violated the provision against twisting as defined in s.430626.9541(1)(l).431i. In the conduct of business, engaged in unfair methods of432competition or in unfair or deceptive acts or practices, as433prohibited under part IX of this chapter.434j. Willfully overinsured any property insurance risk.435k. Engaged in fraudulent or dishonest practices in the436conduct of business arising out of activities related to437insurance or the insurance agency.438l. Demonstrated lack of fitness or trustworthiness to439engage in the business of insurance arising out of activities440related to insurance or the insurance agency.441m. Authorized or knowingly allowed individuals to transact442insurance who were not then licensed as required by this code.4435. Knowingly employed any person who within the preceding 3444years has had his or her relationship with an agency terminated445in accordance with paragraph (d).4466. Willfully circumvented the requirements or prohibitions447of this code.448 Section 10. Subsections (2), (3), and (4) of section 449 626.172, Florida Statutes, are amended to read: 450 626.172 Application for insurance agency license.— 451 (2) An application for an insurance agency license must 452shallbe signed by the owner or owners of the agency. If the 453 agency is incorporated, the application mustshallbe signed by 454 the president and secretary of the corporation. The application 455 for an insurance agency license mustshallinclude: 456 (a) The name of each majority owner, partner, officer, and 457 director of the insurance agency. 458 (b) The residence address of each person required to be 459 listed in the application under paragraph (a). 460 (c) The name of the insurance agency,andits principal 461 business street address and a valid e-mail address of the 462 insurance agency. 463 (d) The physical addresslocationof each branch agency, 464 including its name, e-mail address, and telephone number and the 465 date that the branch location began transacting insuranceoffice466and the name under which each agency office conducts or will467conduct business. 468 (e) The name of each agent to be in full-time charge of an 469 agency office and specification of which office, including 470 branch locations. 471 (f) The fingerprints of each of the following: 472 1. A sole proprietor; 473 2. Each partner; 474 3. Each owner of an unincorporated agency; 475 4. Each owner who directs or participates in the management 476 or control of an incorporated agency whose shares are not traded 477 on a securities exchange; 478 5. The president, senior vice presidents, treasurer, 479 secretary, and directors of the agency; and 480 6. Any other person who directs or participates in the 481 management or control of the agency, whether through the 482 ownership of voting securities, by contract, by ownership of any 483 agency bank accounts, or otherwise. 484 485 Fingerprints must be taken by a law enforcement agency or other 486 entity approved by the department and must be accompanied by the 487 fingerprint processing fee specified in s. 624.501. Fingerprints 488 mustshallbe processed in accordance with s. 624.34. However, 489 fingerprints need not be filed for any individual who is 490 currently licensed and appointed under this chapter. This 491 paragraph does not apply to corporations whose voting shares are 492 traded on a securities exchange. 493 (g) Such additional information as the department requires 494 by rule to ascertain the trustworthiness and competence of 495 persons required to be listed on the application and to 496 ascertain that such persons meet the requirements of this code. 497 However, the department may not require that credit or character 498 reports be submitted for persons required to be listed on the 499 application. 500 (h)Beginning October 1, 2005,The department mustshall501 accept the uniform application for nonresident agency licensure. 502 The department may adopt by rule revised versions of the uniform 503 application. 504(3) The department shall issue a registration as an505insurance agency to any agency that files a written application506with the department and qualifies for registration. The507application for registration shall require the agency to provide508the same information required for an agency licensed under509subsection (2), the agent identification number for each owner510who is a licensed agent, proof that the agency qualifies for511registration as provided in s.626.112(7), and any other512additional information that the department determines is513necessary in order to demonstrate that the agency qualifies for514registration. The application must be signed by the owner or515owners of the agency. If the agency is incorporated, the516application must be signed by the president and the secretary of517the corporation. An agent who owns the agency need not file518fingerprints with the department if the agent obtained a license519under this chapter and the license is currently valid.520(a) If an application for registration is denied, the521agency must file an application for licensure no later than 30522days after the date of the denial of registration.523(b) A registered insurance agency must file an application524for licensure no later than 30 days after the date that any525person who is not a licensed and appointed agent in this state526acquires any ownership interest in the agency. If an agency527fails to file an application for licensure in compliance with528this paragraph, the department shall impose an administrative529penalty in an amount of up to $5,000 on the agency.530(c) Sections626.6115and626.6215do not apply to agencies531registered under this subsection.532 (3)(4)The department mustshallissue a licenseor533registrationto each agency upon approval of the application, 534 and each agency location mustshalldisplay the licenseor535registrationprominently in a manner that makes it clearly 536 visible to any customer or potential customer who enters the 537 agency. 538 Section 11. Paragraph (d) of subsection (1) of section 539 626.321, Florida Statutes, is amended to read: 540 626.321 Limited licenses.— 541 (1) The department shall issue to a qualified applicant a 542 license as agent authorized to transact a limited class of 543 business in any of the following categories of limited lines 544 insurance: 545 (d) Motor vehicle rental insurance.— 546 1. License covering only insurance of the risks set forth 547 in this paragraph when offered, sold, or solicited with and 548 incidental to the rental or lease of a motor vehicle and which 549 applies only to the motor vehicle that is the subject of the 550 lease or rental agreement and the occupants of the motor 551 vehicle: 552 a. Excess motor vehicle liability insurance providing 553 coverage in excess of the standard liability limits provided by 554 the lessor in the lessor’s lease to a person renting or leasing 555 a motor vehicle from the licensee’s employer for liability 556 arising in connection with the negligent operation of the leased 557 or rented motor vehicle. 558 b. Insurance covering the liability of the lessee to the 559 lessor for damage to the leased or rented motor vehicle. 560 c. Insurance covering the loss of or damage to baggage, 561 personal effects, or travel documents of a person renting or 562 leasing a motor vehicle. 563 d. Insurance covering accidental personal injury or death 564 of the lessee and any passenger who is riding or driving with 565 the covered lessee in the leased or rented motor vehicle. 566 2. Insurance under a motor vehicle rental insurance license 567 may be issued only if the lease or rental agreement is for no 568 more than 60 days, the lessee is not provided coverage for more 569 than 60 consecutive days per lease period, and the lessee is 570 given written notice that his or her personal insurance policy 571 providing coverage on an owned motor vehicle may provide 572 coverage of such risks and that the purchase of the insurance is 573 not required in connection with the lease or rental of a motor 574 vehicle. If the lease is extended beyond 60 days, the coverage 575 may be extended one time only for a period not to exceed an 576 additional 60 days. Insurance may be provided to the lessee as 577 an additional insured on a policy issued to the licensee’s 578 employer. 579 3. The license may be issued only to the full-time salaried 580 employee of a licensed general lines agent or to a business 581 entity that offers motor vehicles for rent or lease if insurance 582 sales activities authorized by the license are in connection 583 with and incidental to the rental or lease of a motor vehicle. 584 a. A license issued to a business entity that offers motor 585 vehicles for rent or lease encompasses each office, branch 586 office, employee, or place of business making use of the 587 entity’s business name in order to offer, solicit, and sell 588 insurance pursuant to this paragraph. 589 b. The application for licensure must list the name, 590 address, and phone number for each office, branch office, or 591 place of business that is to be covered by the license. The 592 licensee shall notify the department of the name, address, and 593 phone number of any new location that is to be covered by the 594 license before the new office, branch office, or place of 595 business engages in the sale of insurance pursuant to this 596 paragraph. The licensee must notify the department within 30 597 days after closing or terminating an office, branch office, or 598 place of business. Upon receipt of the notice, the department 599 shall delete the office, branch office, or place of business 600 from the license. 601 c. A licensed and appointed entity is directly responsible 602 and accountable for all acts of the licensee’s employees. 603 Section 12. Section 626.382, Florida Statutes, is amended 604 to read: 605 626.382 Continuation, expiration of license; insurance 606 agencies.—The license of any insurance agencyshall be issued607for a period of 3 years andshall continue in force until 608 canceled, suspended, revoked, or otherwise terminated.A license609may be renewed by submitting a renewal request to the department610on a form adopted by department rule.611 Section 13. Section 626.601, Florida Statutes, is amended 612 to read: 613 626.601 Improper conduct; inquiry; fingerprinting.— 614 (1) The department or office may, upon its own motion or 615 upon a written complaint signed by any interested person and 616 filed with the department or office, inquire into any alleged 617 improper conduct of any licensed, approved, or certified 618 insurance agency, agent, adjuster, service representative, 619 managing general agent, customer representative, title insurance 620 agent, title insurance agency, mediator, neutral evaluator, 621 continuing education course provider, instructor, school 622 official, or monitor group under this code. The department or 623 office may thereafter initiate an investigation of any such 624 individual or entitylicenseeif it has reasonable cause to 625 believe that the individual or entitylicenseehas violated any 626 provision of the insurance code. During the course of its 627 investigation, the department or office shall contact the 628 individual or entitylicenseebeing investigated unless it 629 determines that contacting such individual or entityperson630 could jeopardize the successful completion of the investigation 631 or cause injury to the public. 632 (2) In the investigation by the department or office of the 633 alleged misconduct, the individual or entitylicenseeshall, 634 whenever so required by the department or office, cause the 635 individual’s or entity’shis or herbooks and records to be open 636 for inspection for the purpose of such inquiries. 637 (3) The complaints against any individual or entity 638licenseemay be informally alleged and need not be in any such 639 language as is necessary to charge a crime on an indictment or 640 information. 641 (4) The expense for any hearings or investigations under 642 this law, as well as the fees and mileage of witnesses, may be 643 paid out of the appropriate fund. 644 (5) If the department or office, after investigation, has 645 reason to believe that an individuala licenseemay have been 646 found guilty of or pleaded guilty or nolo contendere to a felony 647 or a crime related to the business of insurance in this or any 648 other state or jurisdiction, the department or office may 649 require the individuallicenseeto file with the department or 650 office a complete set of his or her fingerprints, which shall be 651 accompanied by the fingerprint processing fee set forth in s. 652 624.501. The fingerprints shall be taken by an authorized law 653 enforcement agency or other department-approved entity. 654 (6) The complaint and any information obtained pursuant to 655 the investigation by the department or office are confidential 656 and are exempt fromthe provisions ofs. 119.07, unless the 657 department or office files a formal administrative complaint, 658 emergency order, or consent order against the individual or 659 entitylicensee.Nothing inThis subsection does notshall be660construed toprevent the department or office from disclosing 661 the complaint or such information as it deems necessary to 662 conduct the investigation, to update the complainant as to the 663 status and outcome of the complaint, or to share such 664 information with any law enforcement agency. 665 Section 14. Section 626.747, Florida Statutes, is repealed. 666 Section 15. Paragraph (b) of subsection (1) of section 667 626.8411, Florida Statutes, is amended to read: 668 626.8411 Application of Florida Insurance Code provisions 669 to title insurance agents or agencies.— 670 (1) The following provisions of part II applicable to 671 general lines agents or agencies also apply to title insurance 672 agents or agencies: 673 (b) Section 626.0428(4)(a) and (b)626.747, relating to 674 branch agencies. 675 Section 16. Subsection (1) of section 626.9914, Florida 676 Statutes, is amended to read: 677 626.9914 Suspension, revocation, denial, or nonrenewal of 678 viatical settlement provider license; grounds; administrative 679 fine.— 680 (1) The office shall suspend, revoke, deny, or refuse to 681 renew the license of any viatical settlement provider if the 682 office finds that the licensee: 683 (a) Has made a misrepresentation in the application for the 684 license; 685 (b) Has engaged in fraudulent or dishonest practices, or 686 otherwise has been shown to be untrustworthy or incompetent to 687 act as a viatical settlement provider; 688 (c) Demonstrates a pattern of unreasonable payments to 689 viators; 690 (d) Has been found guilty of, or has pleaded guilty or nolo 691 contendere to, any felony, or a misdemeanor involving fraud or 692 moral turpitude, regardless of whether a judgment of conviction 693 has been entered by the court; 694 (e) Has issued viatical settlement contracts that have not 695 been approved pursuant to this act; 696 (f) Has failed to honor contractual obligations related to 697 the business of viatical settlement contracts; 698 (g) Deals in bad faith with viators; 699 (h) Has violated any provision of the insurance code or of 700 this act; 701 (i) Employs any person who materially influences the 702 licensee’s conduct and who fails to meet the requirements of 703 this act; or 704 (j) No longer meets the requirements for initial licensure;705or706(k) Obtains or utilizes life expectancies from life707expectancy providers who are not registered with the office708pursuant to this act. 709 Section 17. Section 626.99175, Florida Statutes, is 710 repealed. 711 Section 18. Section 626.9919, Florida Statutes, is amended 712 to read: 713 626.9919 Notice of change of licenseeor registrant’s714 address or name.—Each viatical settlement provider licenseeand715registered life expectancy providermust provide the office at 716 least 30 days’ advance notice of any change in the licensee’sor717registrant’sname, residence address, principal business 718 address, or mailing address. 719 Section 19. Section 626.992, Florida Statutes, is amended 720 to read: 721 626.992 Use of licensed viatical settlement providers and,722 viatical settlement brokers, and registered life expectancy723providers required.— 724 (1) A licensed viatical settlement provider may not use any 725 person to perform the functions of a viatical settlement broker 726 as defined in this act unless such person holds a current, valid 727 life agent license and has appointed himself or herself in 728 conformance with this chapter. 729 (2) A viatical settlement broker may not use any person to 730 perform the functions of a viatical settlement provider as 731 defined in this act unless such person holds a current, valid 732 license as a viatical settlement provider. 733(3) After July 1, 2006, a person may not operate as a life734expectancy provider unless such person is registered as a life735expectancy provider pursuant to this act.736(4) After July 1, 2006, a viatical settlement provider,737viatical settlement broker, or any other person in the business738of viatical settlements may not obtain life expectancies from a739person who is not registered as a life expectancy provider740pursuant to this act.741 Section 20. Section 626.9925, Florida Statutes, is amended 742 to read: 743 626.9925 Rules.—The commission may adopt rules to 744 administer this act, including rules establishing standards for 745 evaluating advertising by licensees; rules providing for the 746 collection of data, for disclosures to viators, and for the 747 reporting of life expectancies, and for the registration of life748expectancy providers; and rules defining terms used in this act 749 and prescribing recordkeeping requirements relating to executed 750 viatical settlement contracts. 751 Section 21. Section 626.99278, Florida Statutes, is amended 752 to read: 753 626.99278 Viatical provider anti-fraud plan.—Every licensed 754 viatical settlement providerand registered life expectancy755providermust adopt an anti-fraud plan and file it with the 756 Division of Insurance Fraud of the department. Each anti-fraud 757 plan shall include: 758 (1) A description of the procedures for detecting and 759 investigating possible fraudulent acts and procedures for 760 resolving material inconsistencies between medical records and 761 insurance applications. 762 (2) A description of the procedures for the mandatory 763 reporting of possible fraudulent insurance acts and prohibited 764 practices set forth in s. 626.99275 to the Division of Insurance 765 Fraud of the department. 766 (3) A description of the plan for anti-fraud education and 767 training of its underwriters or other personnel. 768 (4) A written description or chart outlining the 769 organizational arrangement of the anti-fraud personnel who are 770 responsible for the investigation and reporting of possible 771 fraudulent insurance acts and for the investigation of 772 unresolved material inconsistencies between medical records and 773 insurance applications. 774 (5) For viatical settlement providers, a description of the 775 procedures used to perform initial and continuing review of the 776 accuracy of life expectancies used in connection with a viatical 777 settlement contract or viatical settlement investment. 778 Section 22. Paragraph (b) of subsection (2) of section 779 627.062, Florida Statutes, is amended to read: 780 627.062 Rate standards.— 781 (2) As to all such classes of insurance: 782 (b) Upon receiving a rate filing, the office shall review 783 the filing to determine if a rate is excessive, inadequate, or 784 unfairly discriminatory. In making that determination, the 785 office shall, in accordance with generally accepted and 786 reasonable actuarial techniques, consider the following factors: 787 1. Past and prospective loss experience within and without 788 this state. 789 2. Past and prospective expenses. 790 3. The degree of competition among insurers for the risk 791 insured. 792 4. Investment income reasonably expected by the insurer, 793 consistent with the insurer’s investment practices, from 794 investable premiums anticipated in the filing, plus any other 795 expected income from currently invested assets representing the 796 amount expected on unearned premium reserves and loss reserves. 797 The commission may adopt rules using reasonable techniques of 798 actuarial science and economics to specify the manner in which 799 insurers calculate investment income attributable to classes of 800 insurance written in this state and the manner in which 801 investment income is used to calculate insurance rates. Such 802 manner must contemplate allowances for an underwriting profit 803 factor and full consideration of investment income which produce 804 a reasonable rate of return; however, investment income from 805 invested surplus may not be considered. 806 5. The reasonableness of the judgment reflected in the 807 filing. 808 6. Dividends, savings, or unabsorbed premium deposits 809 allowed or returned to Florida policyholders, members, or 810 subscribers. 811 7. The adequacy of loss reserves. 812 8. The cost of reinsurance. The office may not disapprove a 813 rate as excessive solely due to the insurer having obtained 814 catastrophic reinsurance to cover the insurer’s estimated 250 815 year probable maximum loss or any lower level of loss. 816 9. Trend factors, including trends in actual losses per 817 insured unit for the insurer making the filing. 818 10. Conflagration and catastrophe hazards, if applicable. 819 11. Projected hurricane losses, if applicable, which must 820 be estimated using a model or method, or a straight average of 821 model results or output ranges, independently found to be 822 acceptable or reliable by the Florida Commission on Hurricane 823 Loss Projection Methodology, and as further provided in s. 824 627.0628. 825 12. A reasonable margin for underwriting profit and 826 contingencies. 827 13. The cost of medical services, if applicable. 828 14. Other relevant factors that affect the frequency or 829 severity of claims or expenses. 830 Section 23. Paragraph (d) of subsection (3) of section 831 627.0628, Florida Statutes, is amended to read: 832 627.0628 Florida Commission on Hurricane Loss Projection 833 Methodology; public records exemption; public meetings 834 exemption.— 835 (3) ADOPTION AND EFFECT OF STANDARDS AND GUIDELINES.— 836 (d) With respect to a rate filing under s. 627.062, an 837 insurer shall employ and may not modify or adjust actuarial 838 methods, principles, standards, models, or output ranges found 839 by the commission to be accurate or reliable in determining 840 hurricane loss factors for use in a rate filing under s. 841 627.062. An insurer shall employ and may not modify or adjust 842 models found by the commission to be accurate or reliable in 843 determining probable maximum loss levels pursuant to paragraph 844 (b) with respect to a rate filing under s. 627.062 made more 845 than 18060days after the commission has made such findings. 846 This paragraph does not prohibit an insurer from using a 847 straight average of model results or output ranges or using 848 straight averages for the purposes of a rate filing under s. 849 627.062. 850 Section 24. Subsections (2) through (4) of section 627.072, 851 Florida Statutes, are renumbered as subsections (3) through (5), 852 respectively, and a new subsection (2) is added to that section, 853 to read: 854 627.072 Making and use of rates.— 855 (2) A retrospective rating plan may contain a provision 856 that allows negotiation between the employer and the insurer to 857 determine the retrospective rating factors used to calculate the 858 premium for employers that have exposure in more than one state 859 and an estimated annual countrywide standard premium of $1 860 million or more for workers’ compensation. 861 Section 25. Subsection (2) of section 627.281, Florida 862 Statutes, is amended to read: 863 627.281 Appeal from rating organization; workers’ 864 compensation and employer’s liability insurance filings.— 865 (2) If such appeal is based upon the failure of the rating 866 organization to make a filing on behalf of such member or 867 subscriber which is based on a system of expense provisions 868 which differs, in accordance with the right granted in s. 869 627.072(3)627.072(2), from the system of expense provisions 870 included in a filing made by the rating organization, the office 871 shall, if it grants the appeal, order the rating organization to 872 make the requested filing for use by the appellant. In deciding 873 such appeal, the office shall apply the applicable standards set 874 forth in ss. 627.062 and 627.072. 875 Section 26. Section 627.3519, Florida Statutes, is 876 repealed. 877 Section 27. Paragraph (b) of subsection (2) of section 878 627.4133, Florida Statutes, is amended to read: 879 627.4133 Notice of cancellation, nonrenewal, or renewal 880 premium.— 881 (2) With respect to any personal lines or commercial 882 residential property insurance policy, including, but not 883 limited to, any homeowner’s, mobile home owner’s, farmowner’s, 884 condominium association, condominium unit owner’s, apartment 885 building, or other policy covering a residential structure or 886 its contents: 887 (b) The insurer shall give the first-named insured written 888 notice of nonrenewal, cancellation, or termination at least 120 889100days before the effective date of the nonrenewal, 890 cancellation, or termination.However, the insurer shall give at891least 100 days’ written notice, or written notice by June 1,892whichever is earlier, for any nonrenewal, cancellation, or893termination that would be effective between June 1 and November89430.The notice must include the reason or reasons for the 895 nonrenewal, cancellation, or termination, except that: 8961. The insurer shall give the first-named insured written897notice of nonrenewal, cancellation, or termination at least 120898days prior to the effective date of the nonrenewal,899cancellation, or termination for a first-named insured whose900residential structure has been insured by that insurer or an901affiliated insurer for at least a 5-year period immediately902prior to the date of the written notice.903 1.2.If cancellation is for nonpayment of premium, at least 904 10 days’ written notice of cancellation accompanied by the 905 reason therefor must be given. As used in this subparagraph, the 906 term “nonpayment of premium” means failure of the named insured 907 to discharge when due her or his obligations forin connection908withthe payment of premiums on a policy or any installment of 909 such premium, whether the premium is payable directly to the 910 insurer or its agent or indirectly under any premium finance 911 plan or extension of credit, or failure to maintain membership 912 in an organization if such membership is a condition precedent 913 to insurance coverage. The term also means the failure of a 914 financial institution to honor an insurance applicant’s check 915 after delivery to a licensed agent for payment of a premium, 916 even if the agent has previously delivered or transferred the 917 premium to the insurer. If a dishonored check represents the 918 initial premium payment, the contract and all contractual 919 obligations are void ab initio unless the nonpayment is cured 920 within the earlier of 5 days after actual notice by certified 921 mail is received by the applicant or 15 days after notice is 922 sent to the applicant by certified mail or registered mail., and923 If the contract is void, any premium received by the insurer 924 from a third party must be refunded to that party in full. 925 2.3.Ifsuchcancellation or termination occurs during the 926 first 90 days the insurance is in force and the insurance is 927 canceled or terminated for reasons other than nonpayment of 928 premium, at least 20 days’ written notice of cancellation or 929 termination accompanied by the reason therefor must be given 930 unless there has been a material misstatement or 931 misrepresentation or failure to comply with the underwriting 932 requirements established by the insurer. 933 3. After the policy has been in effect for 90 days, the 934 policy may not be canceled by the insurer unless there has been 935 a material misstatement, a nonpayment of premium, a failure to 936 comply with underwriting requirements established by the insurer 937 within 90 days after the date of effectuation of coverage, or a 938 substantial change in the risk covered by the policy or if the 939 cancellation is for all insureds under such policies for a given 940 class of insureds. This subparagraph does not apply to 941 individually rated risks having a policy term of less than 90 942 days. 9434. The requirement for providing written notice by June 1944of any nonrenewal that would be effective between June 1 and945November 30 does not apply to the following situations, but the946insurer remains subject to the requirement to provide such947notice at least 100 days before the effective date of948nonrenewal:949a. A policy that is nonrenewed due to a revision in the950coverage for sinkhole losses and catastrophic ground cover951collapse pursuant to s.627.706.952 4.b.A policy that is nonrenewed by Citizens Property 953 Insurance Corporation, pursuant to s. 627.351(6), for a policy 954 that has been assumed by an authorized insurer offering 955 replacement coverage to the policyholder is exempt from the 956 notice requirements of paragraph (a) and this paragraph. In such 957 cases, the corporation must give the named insured written 958 notice of nonrenewal at least 45 days before the effective date 959 of the nonrenewal. 960 961After the policy has been in effect for 90 days, the policy may962not be canceled by the insurer unless there has been a material963misstatement, a nonpayment of premium, a failure to comply with964underwriting requirements established by the insurer within 90965days after the date of effectuation of coverage, or a966substantial change in the risk covered by the policy or if the967cancellation is for all insureds under such policies for a given968class of insureds. This paragraph does not apply to individually969rated risks having a policy term of less than 90 days.970 5. Notwithstanding any other provision of law, an insurer 971 may cancel or nonrenew a property insurance policy after at 972 least 45 days’ notice if the office finds that the early 973 cancellation of some or all of the insurer’s policies is 974 necessary to protect the best interests of the public or 975 policyholders and the office approves the insurer’s plan for 976 early cancellation or nonrenewal of some or all of its policies. 977 The office may base such finding upon the financial condition of 978 the insurer, lack of adequate reinsurance coverage for hurricane 979 risk, or other relevant factors. The office may condition its 980 finding on the consent of the insurer to be placed under 981 administrative supervision pursuant to s. 624.81 or to the 982 appointment of a receiver under chapter 631. 983 6. A policy covering both a home and motor vehicle may be 984 nonrenewed for any reason applicable toeitherthe property or 985 motor vehicle insurance after providing 90 days’ notice. 986 Section 28. Subsection (1) of section 627.4137, Florida 987 Statutes, is amended to read: 988 627.4137 Disclosure of certain information required.— 989 (1) Each insurer that provideswhich doesor may provide 990 liability insurance coverage to pay all or a portion of any 991 claim thatwhichmight be made shall provide, within 30 days 992 afterofthe written request of the claimant, a statement, under 993 oath, of a corporate officer or the insurer’s claims manager,or994 superintendent, or licensed company adjuster setting forth the 995 following information with regard to each known policy of 996 insurance, including excess or umbrella insurance: 997 (a) The name of the insurer. 998 (b) The name of each insured. 999 (c) The limits of the liability coverage. 1000 (d) A statement of any policy or coverage defense that the 1001which suchinsurer reasonably believes is available to thesuch1002 insurer at the time of filing such statement. 1003 (e) A copy of the policy. 1004 1005 In addition, the insured, or her or his insurance agent, upon 1006 written request of the claimant or the claimant’s attorney, 1007 shall disclose the name and coverage of each known insurer to 1008 the claimant and shall forward such request for information as 1009 required by this subsection to all affected insurers. The 1010 insurer shall then supply the information required in this 1011 subsection to the claimant within 30 days afterofreceipt of 1012 such request. 1013 Section 29. Subsection (1) of section 627.421, Florida 1014 Statutes, is amended to read: 1015 627.421 Delivery of policy.— 1016 (1) Subject to the insurer’s requirement as to payment of 1017 premium, every policy shall be mailed or delivered to the 1018 insured or to the person entitled thereto not later than 60 days 1019 after the effectuation of coverage. Notwithstanding any other 1020 provision of law, an insurer may allow a policyholder to 1021 affirmatively elect delivery of the policy documents, including, 1022 but not limited to, policies, endorsements, notices, or 1023 documents, by electronic means in lieu of delivery by mail. 1024 Section 30. Subsection (2) of section 627.43141, Florida 1025 Statutes, is amended to read: 1026 627.43141 Notice of change in policy terms.— 1027 (2) A renewal policy may contain a change in policy terms. 1028 If a renewal policy containsdoes containsuch change, the 1029 insurer must give the named insured written notice of the 1030 change, which may eithermustbe enclosed along with the written 1031 notice of renewal premium required by ss. 627.4133 and 627.728 1032 or be sent in a separate notice that complies with the 1033 nonrenewal mailing time requirement for that particular line of 1034 business. The insurer must also provide a sample copy of the 1035 notice to the insured’s insurance agent before or at the same 1036 time that notice is given to the insured. Such notice shall be 1037 entitled “Notice of Change in Policy Terms.” 1038 Section 31. Subsection (7) of section 627.701, Florida 1039 Statutes, is amended to read: 1040 627.701 Liability of insureds; coinsurance; deductibles.— 1041 (7) BeforePrior toissuing a personal lines residential 1042 property insurance policy on or after January 1, 2014April 1,10431997, or beforeprior tothe first renewal of a residential 1044 property insurance policy on or after January 1, 2014April 1,10451997, the insurer must offer a deductible equal to $500, or 1046 equal to 1 percent of the policy dwelling limits if such amount 1047 is not less than $500, applicable to losses from perils other 1048 than hurricane.The insurer must provide the policyholder with1049notice of the availability of the deductible specified in this1050subsection in a form approved by the office at least once every10513 years. The failure to provide such notice constitutes a1052violation of this code but does not affect the coverage provided1053under the policy.An insurer may require a higher deductible 1054 only as part of a deductible program lawfully in effect on June 1055 1, 1996, or as part of a similar deductible program. 1056 Section 32. Paragraph (b) of subsection (4) of section 1057 627.7015, Florida Statutes, is amended to read: 1058 627.7015 Alternative procedure for resolution of disputed 1059 property insurance claims.— 1060 (4) The department shall adopt by rule a property insurance 1061 mediation program to be administered by the department or its 1062 designee. The department may also adopt special rules which are 1063 applicable in cases of an emergency within the state. The rules 1064 shall be modeled after practices and procedures set forth in 1065 mediation rules of procedure adopted by the Supreme Court. The 1066 rules shall provide for: 1067 (b) Qualifications, denial of application, suspension, 1068 revocation, and other penalties forofmediators as provided in 1069 s. 627.745 and in the Florida Rules of Certified and Court 1070 Appointed Mediators, and for such other individuals as are1071qualified by education, training, or experience as the1072department determines to be appropriate. 1073 Section 33. Section 627.70151, Florida Statutes, is created 1074 to read: 1075 627.70151 Appraisal; conflicts of interest.—An insurer that 1076 offers residential coverage, as defined in s. 627.4025, or a 1077 policyholder that uses an appraisal clause in the property 1078 insurance contract to establish a process of estimating or 1079 evaluating the amount of the loss through the use of an 1080 impartial umpire may challenge the umpire’s impartiality and 1081 disqualify the proposed umpire only if: 1082 (1) A familial relationship within the third degree exists 1083 between the umpire and any party or a representative of any 1084 party; 1085 (2) The umpire has previously represented any party or a 1086 representative of any party in a professional capacity in the 1087 same or a substantially related matter; 1088 (3) The umpire has represented another person in a 1089 professional capacity on the same or a substantially related 1090 matter, which includes the claim, same property, or an adjacent 1091 property and that other person’s interests are materially 1092 adverse to the interests of any party; or 1093 (4) The umpire has worked as an employer or employee of any 1094 party within the preceding 5 years. 1095 Section 34. Paragraph (c) of subsection (2) of section 1096 627.706, Florida Statutes, is amended to read: 1097 627.706 Sinkhole insurance; catastrophic ground cover 1098 collapse; definitions.— 1099 (2) As used in ss. 627.706-627.7074, and as used in 1100 connection with any policy providing coverage for a catastrophic 1101 ground cover collapse or for sinkhole losses, the term: 1102 (c) “Neutral evaluator” means a professional engineer or a 1103 professional geologist who has completed a course of study in 1104 alternative dispute resolution designed or approved by the 1105 department for use in the neutral evaluation process,andwho is 1106 determined by the department to be fair and impartial, and who 1107 is not otherwise ineligible for certification as provided in s. 1108 627.7074. 1109 Section 35. Subsection (1) of section 627.7074, Florida 1110 Statutes, is amended to read: 1111 627.7074 Alternative procedure for resolution of disputed 1112 sinkhole insurance claims.— 1113 (1) The department shall: 1114 (a) Certify and maintain a list of persons who are neutral 1115 evaluators. 1116 (b) Adopt rules for certifying, denying certification, 1117 suspending certification, and revoking certification as a 1118 neutral evaluator, in keeping with qualifications specified in 1119 this section and ss. 627.706 and 627.745(4). 1120 (c)(b)Prepare a consumer information pamphlet for 1121 distribution by insurers to policyholders which clearly 1122 describes the neutral evaluation process and includes 1123 information necessary for the policyholder to request a neutral 1124 evaluation. 1125 Section 36. Paragraph (a) of subsection (5) of section 1126 627.736, Florida Statutes, is amended to read: 1127 627.736 Required personal injury protection benefits; 1128 exclusions; priority; claims.— 1129 (5) CHARGES FOR TREATMENT OF INJURED PERSONS.— 1130 (a) A physician, hospital, clinic, or other person or 1131 institution lawfully rendering treatment to an injured person 1132 for a bodily injury covered by personal injury protection 1133 insurance may charge the insurer and injured party only a 1134 reasonable amount pursuant to this section for the services and 1135 supplies rendered, and the insurer providing such coverage may 1136 pay for such charges directly to such person or institution 1137 lawfully rendering such treatment if the insured receiving such 1138 treatment or his or her guardian has countersigned the properly 1139 completed invoice, bill, or claim form approved by the office 1140 upon which such charges are to be paid for as having actually 1141 been rendered, to the best knowledge of the insured or his or 1142 her guardian. However, such a charge may not exceed the amount 1143 the person or institution customarily charges for like services 1144 or supplies. In determining whether a charge for a particular 1145 service, treatment, or otherwise is reasonable, consideration 1146 may be given to evidence of usual and customary charges and 1147 payments accepted by the provider involved in the dispute, 1148 reimbursement levels in the community and various federal and 1149 state medical fee schedules applicable to motor vehicle and 1150 other insurance coverages, and other information relevant to the 1151 reasonableness of the reimbursement for the service, treatment, 1152 or supply. 1153 1. The insurer may limit reimbursement to 80 percent of the 1154 following schedule of maximum charges: 1155 a. For emergency transport and treatment by providers 1156 licensed under chapter 401, 200 percent of Medicare. 1157 b. For emergency services and care provided by a hospital 1158 licensed under chapter 395, 75 percent of the hospital’s usual 1159 and customary charges. 1160 c. For emergency services and care as defined by s. 395.002 1161 provided in a facility licensed under chapter 395 rendered by a 1162 physician or dentist, and related hospital inpatient services 1163 rendered by a physician or dentist, the usual and customary 1164 charges in the community. 1165 d. For hospital inpatient services, other than emergency 1166 services and care, 200 percent of the Medicare Part A 1167 prospective payment applicable to the specific hospital 1168 providing the inpatient services. 1169 e. For hospital outpatient services, other than emergency 1170 services and care, 200 percent of the Medicare Part A Ambulatory 1171 Payment Classification for the specific hospital providing the 1172 outpatient services. 1173 f. For all other medical services, supplies, and care, 200 1174 percent of the allowable amount under: 1175 (I) The participating physicians fee schedule of Medicare 1176 Part B, except as provided in sub-sub-subparagraphs (II) and 1177 (III). 1178 (II) Medicare Part B, in the case of services, supplies, 1179 and care provided by ambulatory surgical centers and clinical 1180 laboratories. 1181 (III) The Durable Medical Equipment Prosthetics/Orthotics 1182 and Supplies fee schedule of Medicare Part B, in the case of 1183 durable medical equipment. 1184 1185 However, if such services, supplies, or care is not reimbursable 1186 under Medicare Part B, as provided in this sub-subparagraph, the 1187 insurer may limit reimbursement to 80 percent of the maximum 1188 reimbursable allowance under workers’ compensation, as 1189 determined under s. 440.13 and rules adopted thereunder which 1190 are in effect at the time such services, supplies, or care is 1191 provided. Services, supplies, or care that is not reimbursable 1192 under Medicare or workers’ compensation is not required to be 1193 reimbursed by the insurer. 1194 2. For purposes of subparagraph 1., the applicable fee 1195 schedule or payment limitation under Medicare is the fee 1196 schedule or payment limitation in effect on March 1 of the year 1197 in which the services, supplies, or care is rendered and for the 1198 area in which such services, supplies, or care is rendered, and 1199 the applicable fee schedule or payment limitation applies from 1200 March 1 until the last day of the following Februarythroughout1201the remainder of that year, notwithstanding any subsequent 1202 change made to the fee schedule or payment limitation, except 1203 that it may not be less than the allowable amount under the 1204 applicable schedule of Medicare Part B for 2007 for medical 1205 services, supplies, and care subject to Medicare Part B. 1206 3. Subparagraph 1. does not allow the insurer to apply any 1207 limitation on the number of treatments or other utilization 1208 limits that apply under Medicare or workers’ compensation. An 1209 insurer that applies the allowable payment limitations of 1210 subparagraph 1. must reimburse a provider who lawfully provided 1211 care or treatment under the scope of his or her license, 1212 regardless of whether such provider is entitled to reimbursement 1213 under Medicare due to restrictions or limitations on the types 1214 or discipline of health care providers who may be reimbursed for 1215 particular procedures or procedure codes. However, subparagraph 1216 1. does not prohibit an insurer from using the Medicare coding 1217 policies and payment methodologies of the federal Centers for 1218 Medicare and Medicaid Services, including applicable modifiers, 1219 to determine the appropriate amount of reimbursement for medical 1220 services, supplies, or care if the coding policy or payment 1221 methodology does not constitute a utilization limit. 1222 4. If an insurer limits payment as authorized by 1223 subparagraph 1., the person providing such services, supplies, 1224 or care may not bill or attempt to collect from the insured any 1225 amount in excess of such limits, except for amounts that are not 1226 covered by the insured’s personal injury protection coverage due 1227 to the coinsurance amount or maximum policy limits. 1228 5. Effective July 1, 2012, an insurer may limit payment as 1229 authorized by this paragraph only if the insurance policy 1230 includes a notice at the time of issuance or renewal that the 1231 insurer may limit payment pursuant to the schedule of charges 1232 specified in this paragraph. A policy form approved by the 1233 office satisfies this requirement. If a provider submits a 1234 charge for an amount less than the amount allowed under 1235 subparagraph 1., the insurer may pay the amount of the charge 1236 submitted. 1237 Section 37. Subsection (3) of section 627.745, Florida 1238 Statutes, is amended, present subsections (4) and (5) of that 1239 section are renumbered as subsections (5) and (6), respectively, 1240 and a new subsection (4) is added to that section, to read: 1241 627.745 Mediation of claims.— 1242 (3)(a) The department shall approve mediators to conduct 1243 mediations pursuant to this section. All mediators must file an 1244 application under oath for approval as a mediator. 1245 (b) To qualify for approval as a mediator, an individuala1246personmust meet one of the following qualifications: 1247 1. Possess an active certification as a Florida Circuit 1248 Court Mediator. A Florida Circuit Court Mediator in a lapsed, 1249 suspended, or decertified status is not eligible to participate 1250 in the mediation programa masters or doctorate degree in1251psychology, counseling, business, accounting, or economics, be a1252member of The Florida Bar, be licensed as a certified public1253accountant, or demonstrate that the applicant for approval has1254been actively engaged as a qualified mediator for at least 41255years prior to July 1, 1990. 1256 2. Be an approved department mediator as of July 1, 2013, 1257 and have conducted at least one mediation on behalf of the 1258 department within 4 years immediately preceding thatthedate 1259the application for approval is filed with the department, have1260completed a minimum of a 40-hour training program approved by1261the department and successfully passed a final examination1262included in the training program and approved by the department.1263The training program shall include and address all of the1264following:1265a. Mediation theory. 1266b. Mediation process and techniques.1267c. Standards of conduct for mediators.1268d. Conflict management and intervention skills.1269e. Insurance nomenclature.1270 (4) The department shall deny an application, or suspend or 1271 revoke its approval of a mediator or its certification of a 1272 neutral evaluator to serve in such capacity, if the department 1273 finds that any of the following grounds exist: 1274 (a) Lack of one or more of the qualifications specified in 1275 this section for approval or certification. 1276 (b) Material misstatement, misrepresentation, or fraud in 1277 obtaining or attempting to obtain the approval or certification. 1278 (c) Demonstrated lack of fitness or trustworthiness to act 1279 as a mediator or neutral evaluator. 1280 (d) Fraudulent or dishonest practices in the conduct of 1281 mediation or neutral evaluation or in the conduct of business in 1282 the financial services industry. 1283 (e) Violation of any provision of this code, a lawful order 1284 or rule of the department, the Florida Rules for Certified and 1285 Court-Appointed Mediators, or aiding, instructing, or 1286 encouraging another party in committing such a violation. 1287 1288 The department may adopt rules to administer this subsection. 1289 Section 38. Paragraph (b) of subsection (1) of section 1290 627.952, Florida Statutes, is amended to read: 1291 627.952 Risk retention and purchasing group agents.— 1292 (1) Any person offering, soliciting, selling, purchasing, 1293 administering, or otherwise servicing insurance contracts, 1294 certificates, or agreements for any purchasing group or risk 1295 retention group to any resident of this state, either directly 1296 or indirectly, by the use of mail, advertising, or other means 1297 of communication, shall obtain a license and appointment to act 1298 as a resident general lines agent, if a resident of this state, 1299 or a nonresident general lines agent if not a resident. Any such 1300 person shall be subject to all requirements of the Florida 1301 Insurance Code. 1302 (b) Any person required to be licensed and appointed under 1303 this subsection, in order to place business through Florida 1304 eligible surplus lines carriers, must, if a resident of this 1305 state, be licensed and appointed as a surplus lines agent. If 1306 not a resident of this state, such person must be licensed and 1307 appointed as a nonresident surplus lines agent in thisher or1308hisstateof residence and file and maintain a fidelity bond in1309favor of the people of the State of Florida executed by a surety1310company admitted in this state and payable to the State of1311Florida; however, such nonresident is limited to the provision1312of insurance for purchasing groups. The bond must be continuous1313in form and in the amount of not less than $50,000, aggregate1314liability. The bond must remain in force and effect until the1315surety is released from liability by the department or until the1316bond is canceled by the surety. The surety may cancel the bond1317and be released from further liability upon 30 days’ prior1318written notice to the department. The cancellation does not1319affect any liability incurred or accrued before the termination1320of the 30-day period. Upon receipt of a notice of cancellation,1321the department shall immediately notify the agent. 1322 Section 39. Subsection (6) of section 627.971, Florida 1323 Statutes, is amended to read: 1324 627.971 Definitions.—As used in this part: 1325 (6) “Financial guaranty insurance corporation” means a 1326 stock or mutual insurer licensed to transact financial guaranty 1327 insurance business in this state. 1328 Section 40. Subsection (1) of section 627.972, Florida 1329 Statutes, is amended to read: 1330 627.972 Organization; financial requirements.— 1331 (1) A financial guaranty insurance corporation must be 1332 organized and licensed in the manner prescribed in this code for 1333 stock or mutual property and casualty insurers except that: 1334 (a) A corporation organized to transact financial guaranty 1335 insurance may, subject to the provisions of this code, be 1336 licensed to transact: 1337 1. Residual value insurance, as defined by s. 624.6081; 1338 2. Surety insurance, as defined by s. 624.606; 1339 3. Credit insurance, as defined by s. 624.605(1)(i); and 1340 4. Mortgage guaranty insurance as defined in s. 635.011, 1341 provided that the provisions of chapter 635 are met. 1342 (b)1. BeforePrior tothe issuance of a license, a 1343 corporation must submit to the office for approval,a plan of 1344 operation detailing: 1345 a. The types and projected diversification of guaranties to 1346 be issued; 1347 b. The underwriting procedures to be followed; 1348 c. The managerial oversight methods; 1349 d. The investment policies; and 1350 e. Any other matters prescribed by the office; 1351 2. An insurer which is writing only the types of insurance 1352 allowed under this part on July 1, 1988, and otherwise meets the 1353 requirements of this part, is exempt from the requirements of 1354 this paragraph. 1355 (c) An insurer transacting financial guaranty insurance is 1356 subject to all provisions of this code that are applicable to 1357 property and casualty insurers to the extent that those 1358 provisions are not inconsistent with this part. 1359 (d) The investments of an insurer transacting financial 1360 guaranty insurance in any entity insured by the corporation may 1361 not exceed 2 percent of its admitted assets as of the end of the 1362 prior calendar year. 1363 (e) An insurer transacting financial guaranty insurance may 1364 only assume those lines of insurance for which it is licensed to 1365 write direct business. 1366 Section 41. Subsection (13) of section 628.901, Florida 1367 Statutes, is amended to read: 1368 628.901 Definitions.—As used in this part, the term: 1369 (13) “Qualifying reinsurer parent company” means a 1370 reinsurer thatwhichcurrently holds a certificate of authority 1371 or a,letter of eligibility or is a trusteed reinsurer or an 1372 accreditedor a satisfactory non-approvedreinsurer in this 1373 state possessing a consolidated GAAP net worth of at least $500 1374 million and a consolidated debt to total capital ratio of not 1375 greater than 0.50. 1376 Section 42. Paragraph (a) of subsection (2) and paragraph 1377 (a) of subsection (3) of section 628.909, Florida Statutes, are 1378 amended to read: 1379 628.909 Applicability of other laws.— 1380 (2) The following provisions of the Florida Insurance Code 1381 apply to captive insurers who are not industrial insured captive 1382 insurers to the extent that such provisions are not inconsistent 1383 with this part: 1384 (a) Chapter 624, except for ss. 624.407, 624.408, 624.4085, 1385 624.40851, 624.4095, 624.411, 624.425, and 624.426. 1386 (3) The following provisions of the Florida Insurance Code 1387 apply to industrial insured captive insurers to the extent that 1388 such provisions are not inconsistent with this part: 1389 (a) Chapter 624, except for ss. 624.407, 624.408, 624.4085, 1390 624.40851, 624.4095, 624.411, 624.425, 624.426, and 624.609(1). 1391 Section 43. Subsection (8) of section 634.406, Florida 1392 Statutes, is renumbered as subsection (7), and present 1393 subsections (6) and (7) of that section are amended, to read: 1394 634.406 Financial requirements.— 1395 (6) An association thatwhichholds a license under this 1396 partand which does not hold any other license under this1397chaptermay allow its premiums for service warranties written 1398 under this part to exceed the ratio to net assets limitations of 1399 this section if the association meets all of the following: 1400 (a) Maintains net assets of at least $750,000. 1401 (b) Utilizes a contractual liability insurance policy 1402 approved by the office which: 1403 1. Reimburses the service warranty association for 100 1404 percent of its claims liability and is issued by an insurer that 1405 maintains a policyholder surplus of at least $100 million; or 1406 2. Complies with the requirements of subsection (3) and is 1407 issued by an insurer that maintains a policyholder surplus of at 1408 least $200 million. 1409 (c) The insurer issuing the contractual liability insurance 1410 policy: 14111. Maintains a policyholder surplus of at least $1001412million.1413 1.2.Is rated “A” or higher by A.M. Best Company or an 1414 equivalent rating by another national rating service acceptable 1415 to the office. 14163. Is in no way affiliated with the warranty association.1417 2.4.In conjunction with the warranty association’s filing 1418 of the quarterly and annual reports, provides, on a form 1419 prescribed by the commission, a statement certifying the gross 1420 written premiums in force reported by the warranty association 1421 and a statement that all of the warranty association’s gross 1422 written premium in force is covered under the contractual 1423 liability policy, whether or not it has been reported. 1424(7) A contractual liability policy must insure 100 percent1425of an association’s claims exposure under all of the1426association’s service warranty contracts, wherever written,1427unless all of the following are satisfied:1428(a) The contractual liability policy contains a clause that1429specifically names the service warranty contract holders as sole1430beneficiaries of the contractual liability policy and claims are1431paid directly to the person making a claim under the contract;1432(b) The contractual liability policy meets all other1433requirements of this part, including subsection (3) of this1434section, which are not inconsistent with this subsection;1435(c) The association has been in existence for at least 51436years or the association is a wholly owned subsidiary of a1437corporation that has been in existence and has been licensed as1438a service warranty association in the state for at least 51439years, and:14401. Is listed and traded on a recognized stock exchange; is1441listed in NASDAQ (National Association of Security Dealers1442Automated Quotation system) and publicly traded in the over-the1443counter securities market; is required to file either of Form144410-K, Form 100, or Form 20-G with the United States Securities1445and Exchange Commission; or has American Depository Receipts1446listed on a recognized stock exchange and publicly traded or is1447the wholly owned subsidiary of a corporation that is listed and1448traded on a recognized stock exchange; is listed in NASDAQ1449(National Association of Security Dealers Automated Quotation1450system) and publicly traded in the over-the-counter securities1451market; is required to file Form 10-K, Form 100, or Form 20-G1452with the United States Securities and Exchange Commission; or1453has American Depository Receipts listed on a recognized stock1454exchange and is publicly traded;14552. Maintains outstanding debt obligations, if any, rated in1456the top four rating categories by a recognized rating service;14573. Has and maintains at all times a minimum net worth of1458not less than $10 million as evidenced by audited financial1459statements prepared by an independent certified public1460accountant in accordance with generally accepted accounting1461principles and submitted to the office annually; and14624. Is authorized to do business in this state; and1463(d) The insurer issuing the contractual liability policy:14641. Maintains and has maintained for the preceding 5 years,1465policyholder surplus of at least $100 million and is rated “A”1466or higher by A.M. Best Company or has an equivalent rating by1467another rating company acceptable to the office;14682. Holds a certificate of authority to do business in this1469state and is approved to write this type of coverage; and14703. Acknowledges to the office quarterly that it insures all1471of the association’s claims exposure under contracts delivered1472in this state.1473 1474If all the preceding conditions are satisfied, then the scope of1475coverage under a contractual liability policy shall not be1476required to exceed an association’s claims exposure under1477service warranty contracts delivered in this state.1478 Section 44. This act shall take effect upon becoming a law. 1479 1480 ================= T I T L E A M E N D M E N T ================ 1481 And the title is amended as follows: 1482 Delete everything before the enacting clause 1483 and insert: 1484 A bill to be entitled 1485 An act relating to insurance; amending s. 215.555, 1486 F.S.; deleting the future repeal of an exemption of 1487 medical malpractice insurance premiums from emergency 1488 assessments imposed to fund certain obligations, 1489 costs, and expenses of the Florida Hurricane 1490 Catastrophe Fund and the Florida Hurricane Catastrophe 1491 Fund Finance Corporation; amending s. 316.646, F.S.; 1492 authorizing a uniform motor vehicle proof-of-insurance 1493 card to be in an electronic format; providing 1494 construction with respect to the parameters of a 1495 person’s consent to access information on an 1496 electronic device presented to provide proof of 1497 insurance; providing immunity from liability to a law 1498 enforcement officer for damage to an electronic device 1499 presented to provide proof of insurance; authorizing 1500 the Department of Highway Safety and Motor Vehicles to 1501 adopt rules; amending s. 320.02, F.S.; authorizing 1502 insurers to furnish uniform proof-of-purchase cards in 1503 an electronic format for use by insureds to prove the 1504 purchase of required insurance coverage when 1505 registering a motor vehicle; amending s. 554.1021, 1506 F.S.; defining the term “authorized inspection 1507 agency”; amending s. 554.107, F.S.; requiring the 1508 chief inspector of the state boiler inspection program 1509 to issue a certificate of competency as a special 1510 inspector to certain individuals; specifying how long 1511 such certificate remains in effect; amending s. 1512 554.109, F.S.; authorizing specified insurers to 1513 contract with an authorized inspection agency for 1514 boiler inspections; requiring such insurers to 1515 annually report the identity of contracted authorized 1516 inspection agencies to the Department of Financial 1517 Services; amending s. 624.413, F.S.; revising a 1518 specified time period applicable to a certified 1519 examination that must be filed by a foreign or alien 1520 insurer applying for a certificate of authority; 1521 amending s. 626.0428, F.S.; requiring each insurance 1522 agency to be under the control of an agent licensed to 1523 transact certain lines of insurance; authorizing an 1524 agent to be in charge of more than one branch office 1525 under certain circumstances; providing requirements 1526 relating to the designation of an agent in charge; 1527 prohibiting an insurance agency from conducting 1528 insurance business at a location without a designated 1529 agent in charge; providing a definition for the term 1530 “agent in charge”; providing that the designated agent 1531 in charge is liable for certain acts of misconduct; 1532 providing grounds for the Department of Financial 1533 Services to order operations to cease at certain 1534 insurance agency locations until an agent in charge is 1535 properly designated; amending s. 626.112, F.S.; 1536 providing licensure exemptions that allow specified 1537 individuals or entities to conduct insurance business 1538 at specified locations under certain circumstances; 1539 revising licensure requirements and penalties with 1540 respect to registered insurance agencies; providing 1541 that the registration of an approved registered 1542 insurance agency automatically converts to an 1543 insurance agency license on a specified date; amending 1544 s. 626.172, F.S.; revising requirements relating to 1545 applications for insurance agency licenses; conforming 1546 provisions to changes made by the act; amending s. 1547 626.321, F.S.; providing that a limited license to 1548 offer motor vehicle rental insurance issued to a 1549 business that rents or leases motor vehicles 1550 encompasses the employees of such business; amending 1551 s. 626.382, F.S.; providing that an insurance agency 1552 license continues in force until canceled, suspended, 1553 revoked, or terminated; amending s. 626.601, F.S.; 1554 revising terminology relating to investigations 1555 conducted by the Department of Financial Services and 1556 the Office of Insurance Regulation with respect to 1557 individuals and entities involved in the insurance 1558 industry; repealing s. 626.747, F.S., relating to 1559 branch agencies, agents in charge, and the payment of 1560 additional county tax under certain circumstances; 1561 amending s. 626.8411, F.S.; conforming a cross 1562 reference; amending s. 626.9914, F.S.; conforming a 1563 provision to changes made by the act; repealing s. 1564 626.99175, F.S., relating to the registration of life 1565 expectancy providers; amending ss. 626.9919, 626.992, 1566 626.9925, and 626.99278, F.S.; conforming provisions 1567 to changes made by the act; amending s. 627.062, F.S.; 1568 requiring the Office of Insurance Regulation to use 1569 certain models or straight averages of certain models 1570 to estimate hurricane losses when determining whether 1571 the rates in a rate filing are excessive, inadequate, 1572 or unfairly discriminatory; amending s. 627.0628, 1573 F.S.; increasing the length of time during which an 1574 insurer must adhere to certain findings made by the 1575 Commission on Hurricane Loss Projection Methodology 1576 with respect to certain methods, principles, 1577 standards, models, or output ranges used in a rate 1578 finding; providing that the requirement to adhere to 1579 such findings does not limit an insurer from using a 1580 straight average of results of certain models or 1581 output ranges under specified circumstances; amending 1582 s. 627.072, F.S.; authorizing retrospective rating 1583 plans relating to workers’ compensation and employer’s 1584 liability insurance to allow negotiations between 1585 certain employers and insurers with respect to rating 1586 factors used to calculate premiums; amending s. 1587 627.281, F.S.; conforming a cross-reference; repealing 1588 s. 627.3519, F.S., relating to an annual report from 1589 the Financial Services Commission to the Legislature 1590 of aggregate net probable maximum losses, financing 1591 options, and potential assessments of the Florida 1592 Hurricane Catastrophe Fund and Citizens Property 1593 Insurance Corporation; amending s. 627.4133, F.S.; 1594 increasing the amount of prior notice required with 1595 respect to the nonrenewal, cancellation, or 1596 termination of certain insurance policies; deleting 1597 certain provisions that require extended periods of 1598 prior notice with respect to the nonrenewal, 1599 cancellation, or termination of certain insurance 1600 policies; prohibiting the cancellation of certain 1601 policies that have been in effect for a specified 1602 amount of time except under certain circumstances; 1603 amending s. 627.4137, F.S.; adding licensed company 1604 adjusters to the list of persons who may respond to a 1605 claimant’s written request for information relating to 1606 liability insurance coverage; amending s. 627.421, 1607 F.S.; authorizing the electronic delivery of certain 1608 insurance documents; amending s. 627.43141, F.S.; 1609 authorizing a notice of change in policy terms to be 1610 sent in a separate mailing to an insured under certain 1611 circumstances; requiring an insurer to provide such 1612 notice to insured’s insurance agent; amending s. 1613 627.701, F.S.; revising requirements to issue or renew 1614 personal lines residential property insurance after a 1615 certain date; amending s. 627.7015, F.S.; revising the 1616 rulemaking authority of the department with respect to 1617 qualifications and specified types of penalties 1618 covered under the property insurance mediation 1619 program; creating s. 627.70151, F.S.; providing 1620 criteria for an insurer or policyholder to challenge 1621 the impartiality of a loss appraisal umpire for 1622 purposes of disqualifying such umpire; amending s. 1623 627.706, F.S.; revising the definition of the term 1624 “neutral evaluator”; amending s. 627.7074, F.S.; 1625 requiring the department to adopt rules relating to 1626 the certification of neutral evaluators; amending s. 1627 627.736, F.S.; revising the time period for 1628 applicability of certain Medicare fee schedules or 1629 payment limitations; amending s. 627.745, F.S.; 1630 revising qualifications for approval as a mediator by 1631 the department; providing grounds for the department 1632 to deny an application, or suspend or revoke approval 1633 of a mediator or certification of a neutral evaluator; 1634 authorizing the department to adopt rules; amending s. 1635 627.952, F.S.; providing that certain persons who are 1636 not residents of this state must be licensed and 1637 appointed as nonresident surplus lines agents in this 1638 state in order to engage in specified activities with 1639 respect to servicing insurance contracts, 1640 certificates, or agreements for purchasing or risk 1641 retention groups; deleting a fidelity bond requirement 1642 applicable to certain nonresident agents who are 1643 licensed as surplus lines agents in another state; 1644 amending ss. 627.971 and 627.972, F.S.; including 1645 licensed mutual insurers in financial guaranty 1646 insurance corporations; amending s. 628.901, F.S.; 1647 revising the definition of the term “qualifying 1648 reinsurer parent company”; amending s. 628.909, F.S.; 1649 providing for applicability of certain provisions of 1650 the Insurance Code to specified captive insurers; 1651 amending s. 634.406, F.S.; revising criteria 1652 authorizing premiums of certain service warranty 1653 associations to exceed their specified net assets 1654 limitations; revising requirements relating to 1655 contractual liability policies that insure warranty 1656 associations; providing an effective date.