Bill Text: FL H0853 | 2010 | Regular Session | Comm Sub

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Bill Title: Title Insurance

Spectrum: Partisan Bill (Republican 2-0)

Status: (Failed) 2010-04-30 - Died in Criminal & Civil Justice Policy Council [H0853 Detail]

Download: Florida-2010-H0853-Comm_Sub.html

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CS/HB 853

1	A bill to be entitled
2	An act relating to title insurance; creating part I of ch.
3	637, F.S.; providing for administration of title insurance
4	and general provisions; providing a short title; providing
5	legislative findings, purposes, and intent; providing
6	definitions; preempting to the state the regulation of
7	title insurance, title insurers, and title insurance
8	agencies; providing for nonapplication of certain
9	chapters; duplicating in ch. 637, F.S., certain provisions
10	of chs. 624, 625, 626, and 628, F.S., relating to
11	insurance and making such provisions applicable to title
12	insurance, title insurers, title insurance agents, and
13	title insurance agencies; creating s. 637.10335, F.S.;
14	providing for civil remedies against title insurers;
15	providing procedures, requirements, and limitations;
16	providing for award of damages, court costs, and attorney
17	fees; prohibiting punitive damages under certain
18	circumstances; providing construction prohibitions;
19	preserving certain remedies and causes of action; creating
20	s. 637.10435, F.S.; providing a Policyholders Bill of
21	Rights; specifying principles; providing a construction
22	prohibition; creating s. 637.10445, F.S.; providing
23	procedures, requirements, and limitations for documents
24	claimed as trade secrets; creating part II of ch. 637,
25	F.S.; providing for licensing and administration of title
26	insurers; duplicating in ch. 637, F.S., and making
27	applicable to title insurers certain provisions of ch.
28	624, F.S.; transferring to ch. 637, F.S., certain
29	provisions of chs. 625 and 627, F.S., relating to title
30	insurance; creating s. 637.20035, F.S.; providing for
31	structure of title insurers; transferring, renumbering,
32	and amending s. 627.7865, F.S.; specifying requirements,
33	procedures, and limitation for assessments against title
34	insurers in liquidation; creating s. 637.2091, F.S.;
35	specifying that title insurance business in exclusive;
36	creating part III of ch. 637, F.S.; providing for
37	licensure and administration of title insurance agents and
38	agencies; duplicating in ch. 637, F.S., and making
39	applicable to title insurance agents and agencies certain
40	provisions of ch. 626, F.S.; transferring to ch. 637,
41	F.S., certain provisions of ch. 626, F.S., relating to
42	title insurance agents and agencies; creating s.
43	637.30125, F.S.; providing requirements for agents in
44	charge; providing for authority, duties, and
45	responsibilities of agents in charge; transferring
46	regulation, administration, and enforcement of title
47	insurers and authority to establish title insurance
48	premium rates and forms from the Office of Insurance
49	Regulation and the Financial Services Commission to the
50	Department of Financial Services; deleting references to
51	the office and commission to conform; amending ss.
52	624.5105 and 624.5107, F.S.; including references to
53	applicable sections of ch. 637, F.S., under the community
54	contribution tax credit program and the child care tax
55	credit program; specifying rules of the Financial Services
56	Commission and the Office of Insurance Regulation as rules
57	of the department; transferring certain powers, duties,
58	functions, records, personnel, property, and unexpended
59	balances of appropriations, allocations, and other funds
60	relating to title insurance to the department; preserving
61	the validity of certain judicial and administrative
62	actions relating to title insurance; providing for
63	transfer of certain orders relating to title insurance to
64	the department; requiring the Division of Statutory
65	Revision to assist substantive legislative committees in
66	developing conforming legislation; creating s. 689.263,
67	F.S.; prohibiting title insurance agents or title
68	insurance agencies from disbursing certain funds under
69	certain circumstances; providing requirements for a
70	statement of settlement costs; creating s. 717.1121, F.S.;
71	providing construction of certain payments from escrow
72	related to real estate transactions; amending s. 877.101,
73	F.S.; providing an additional prohibition against
74	transacting escrow business by unauthorized persons;
75	revising cross-references for purposes of nonapplication
76	to licensed title insurance agents; amending ss. 624.5015,
77	626.241, and 626.331, F.S.; deleting provisions relating
78	to title insures; amending ss. 197.502, 624.501, 624.604,
79	624.605, 625.031, 626.207, 655.005, 701.041, and 721.05,
80	F.S.; conforming a cross-reference; repealing s. 624.608,
81	F.S., relating to the definition of "title insurance";
82	repealing s. 626.841, F.S., relating to definitions of
83	"title insurance agent" and "title insurance agency";
84	repealing s. 626.8411, F.S., relating to application of
85	Florida Insurance Code provisions to title insurance
86	agents or agencies; repealing s. 626.9531, F.S., relating
87	to identification of insurers, agents, and insurance
88	contracts; repealing s. 627.7711, F.S., relating to
89	definitions; repealing s. 627.776, F.S., relating to
90	applicability or inapplicability of Florida Insurance Code
91	provisions to title insurers; providing an effective date.
92
93	Be It Enacted by the Legislature of the State of Florida:
94
95	Section 1. Part I of chapter 637, Florida Statutes,
96	consisting of sections 637.1001, 637.1002, 637.1004, 637.10045,
97	637.1005, 637.1006, 637.1007, 637.1008, 637.1009, 637.1011,
98	637.1012, 637.1013, 637.1014, 637.1015, 637.1016, 637.1017,
99	637.1018, 637.1019, 637.1021, 637.1022, 637.1023, 637.1024,
100	637.1025, 637.1026, 637.1027, 637.1028, 637.1029, 637.1031,
101	637.1032, 637.1033, 637.10335, 637.1034, 637.1035, 637.1036,
102	637.1037, 637.1038, 637.1039, 637.1041, 637.1042, 637.1043,
103	637.10435, 637.1044, 637.10445, 637.1045, 637.1046, 637.1047,
104	637.1048, and 637.1049, is created and entitled "ADMINISTRATION
105	AND GENERAL PROVISIONS."
106	Section 2. Sections 637.1001, 637.1002, 637.1004,
107	637.10045, 637.1005, 637.1006, 637.1007, 637.1008, 637.1009,
108	637.1011, 637.1012, 637.1013, 637.1014, 637.1015, 637.1016,
109	637.1017, 637.1018, 637.1019, 637.1021, 637.1022, 637.1023,
110	637.1024, 637.1025, 637.1026, 637.1027, 637.1029, 637.1031,
111	637.1032, 637.1033, 637.10335, 637.1034, 637.1035, 637.1036,
112	637.1037, 637.1038, 637.1039, 637.1041, 637.1042, 637.1043,
113	637.10435, 637.1044, 637.10445, 637.1045, 637.1046, 637.1047,
114	637.1048, and 637.1049, are created to read:
115	637.1001 Short title.-This chapter may be cited as the
116	"Florida Title Insurance Act."
117	637.1002 Legislative findings; purpose; intent.-
118	(1) The Legislature finds that a stable and efficient
119	title insurance delivery system is necessary to promote the
120	economic wellbeing of the citizens of this state. Title
121	insurance is essential to ensure homeowners and landowners of
122	the safety of real property transfers in the state. Lienholders
123	and investors require the security afforded their business
124	interests accorded by a financially stable and regulated title
125	insurance industry. A viable title insurance delivery system
126	requires comprehensive state oversight, including regulation of
127	title insurers, agents, and agencies. Accordingly, it is the
128	intent of the Legislature to establish unitary regulation of the
129	title insurance industry by a type two transfer from the
130	Financial Services Commission and the Office of Insurance
131	Regulation to the Department of Financial Services, as set forth
132	in this chapter. The department shall have comprehensive
133	authority to regulate title insurer, title agent, and title
134	agency solvency, education, licensing, and discipline and to
135	establish title insurance premium rates and forms.
136	(2) The Legislature finds that title insurance is a unique
137	form of insurance unlike any casualty-based insurance.
138	Accordingly, a separate and distinct chapter of the Florida
139	Statutes is deemed appropriate.
140	(3) The Legislature recognizes that the title insurance
141	industry is founded upon a unique structure that requires title
142	agents and agencies to determine the insurability of titles,
143	thereby placing the title insurance agent at the cornerstone of
144	the delivery system. As such, the solvency and viability of
145	title insurance agents is essential. Therefore, the Legislature
146	deems it to be in the public interest to establish title
147	insurance rates that are adequate and to also establish
148	parameters for rebating portions of the title insurance premium.
149	(4) The Legislature finds that the unique issues relating
150	to title insurance premium rebates and negotiating the cost of
151	related closing services require clarification for the
152	protection of insurer solvency and consumer safety. The
153	Legislature finds that any portion of premium paid by a title
154	insurer to its agents is made for purposes of joint underwriting
155	and the creation of each individual insurance contract and not
156	for purposes of providing direct services to the consumer. The
157	Legislature further finds that negotiating or rebating closing
158	services fees should not be restricted, but that discounting
159	premiums jeopardizes the solvency of insurers and the
160	maintenance of an efficient delivery system for title insurance
161	and impairs the protection of the consumer.
162	637.1004 Definitions.-For purposes of this chapter, the
163	term:
164	(1) "Appointment" means the authority given by an insurer
165	to a licensee to transact insurance on behalf of an insurer.
166	(2) "Attorney" as used in this part means an individual
167	duly admitted to and a member in good standing of The Florida
168	Bar.
169	(3) "Agent in charge" of a title insurance agency means an
170	attorney or a licensed and appointed title insurance agent who
171	is responsible for escrow and policy issuance services of a
172	title insurance agency location.
173	(4) "Authorized" means provided authority pursuant to
174	valid a certificate of authority issued by the department to
175	transact insurance in this state.
176	(5) "Closing services" means services performed by a
177	licensed title insurer, title insurance agent or agency, or
178	attorney agent in the agent's or agency's capacity as such,
179	including, but not limited to, preparing documents necessary to
180	close the transaction, conducting the closing, or handling the
181	disbursing of funds related to the closing transaction in which
182	a title insurance commitment or policy is to be issued.
183	(6) "Commercially domiciled insurer" means every foreign
184	or alien insurer that is authorized to do business in this state
185	and that, during its 3 preceding fiscal years taken together, or
186	during any lesser period of time if it has been licensed to
187	transact its business in this state only for the lesser period
188	of time, has written an average of 25 percent or more direct
189	premiums in this state than it has written in its state of
190	domicile during the same period, and the direct premiums written
191	constitute more than 55 percent of its total direct premiums
192	written everywhere in the United States during its 3 preceding
193	fiscal years taken together, or during any lesser period of time
194	if it has been authorized to transact its business in this state
195	only for the lesser period of time, as reported in its most
196	recent applicable annual or quarterly statements, shall be
197	deemed a "commercially domiciled insurer" within this state.
198	(7) "Consent" means authorized written agreement to
199	supervision by the insurer.
200	(8) "Department" means the Department of Financial
201	Services. The term does not mean the Financial Services
202	Commission or any office of the Financial Services Commission.
203	(9) "Domestic," "foreign," and "alien" mean:
204	(a) A "domestic" insurer is one formed under the laws of
205	this state.
206	(b) A "foreign" insurer is one formed under the laws of
207	any state, district, territory, or commonwealth of the United
208	States other than this state.
209	(c) An "alien" insurer is an insurer other than a domestic
210	or foreign insurer.
211	(10) "Domicile," except as provided in s. 631.011, means:
212	(a) As to Canadian insurers, Canada and the province under
213	the laws of which the insurer was formed.
214	(b) As to other alien insurers authorized to transact
215	insurance in one or more states, the state designated by the
216	insurer in writing filed with the department at the time of
217	admission to this state or within 6 months after the effective
218	date of this chapter, whichever date is the later, and may be
219	any of the following states:
220	1. That in which the insurer was first authorized to
221	transact insurance if the insurer is still so authorized.
222	2. That in which is located the insurer's principal place
223	of business in the United States.
224	3. That in which is held the larger deposit of trusteed
225	assets of the insurer for the protection of its policyholders
226	and creditors in the United States.
227	If the insurer makes no such designation, its domicile shall be
228	deemed to be that state in which is located its principal place
229	of business in the United States.
230	(c) As to alien insurers not authorized to transact
231	insurance in one or more states, the country under the laws of
232	which the insurer was formed.
233	(d) As to all other insurers, the state under the laws of
234	which the insurer was formed.
235	(11) "Exceeded its powers" means the following conditions:
236	(a) The insurer has refused to permit examination by the
237	department of its books, papers, accounts, records, or business
238	practices;
239	(b) An insurer organized in this state has unlawfully
240	removed from this state books, papers, accounts, or records
241	necessary for an examination of the insurer by the department;
242	(c) The insurer has failed to promptly comply with the
243	applicable financial reporting statutes and department requests
244	relating thereto;
245	(d) The insurer has neglected or refused to observe an
246	order of the department to correct a deficiency in its capital
247	or surplus; or
248	(e) The insurer has unlawfully or in violation of a
249	department order:
250	1. Totally reinsured its entire outstanding business; or
251	2. Merged or consolidated substantially its entire
252	property or business with another insurer.
253	(12) "License" means a document issued by the department
254	authorizing a person to transact insurance.
255	(13)(a) "Managing general agent" means any person managing
256	all or part of the insurance business of an insurer, including
257	the management of a separate division, department, or
258	underwriting office, and acting as an agent for that insurer,
259	whether known as a managing general agent, manager, or other
260	similar term, who, with or without authority, separately or
261	together with affiliates, produces, directly or indirectly, or
262	underwrites an amount of gross direct written premium equal to
263	or more than 5 percent of the policyholder surplus as reported
264	in the last annual statement of the insurer in any single
265	quarter or year and also does one or more of the following:
266	1. Adjusts or pays claims.
267	2. Negotiates reinsurance on behalf of the insurer.
268	(b) The following persons shall not be considered managing
269	general agents:
270	1. An employee of the insurer.
271	2. A United States manager of the United States branch of
272	an alien insurer.
273	3. An underwriting manager managing all the insurance
274	operations of the insurer pursuant to a contract who is
275	under the common control of the insurer subject to regulation
276	and whose compensation is not based on the volume of premiums
277	written.
278	4. The attorney in fact authorized by and acting for the
279	subscribers of a reciprocal insurer under powers of attorney.
280	(14) "Person" means an individual, insurer, company,
281	association, organization, Lloyds, society, reciprocal insurer
282	or interinsurance exchange, partnership, syndicate, business
283	trust, corporation, agent, general agent, broker, service
284	representative, adjuster, and every legal entity.
285	(15) "Premium" means the charge, as specified by rule of
286	the department, that is made by a title insurer for a title
287	insurance policy, including the charge for performance of
288	primary title services by a title insurer or title insurance
289	agent or agency, and incurring the risks incident to such
290	policy, under the several classifications of title insurance
291	contracts and forms, and upon which charge a premium tax is paid
292	under s. 624.509. As used in this part or in any other law, with
293	respect to title insurance, the word "premium" does not include
294	a commission.
295	(16) "Primary title services" means determining
296	insurability in accordance with sound underwriting practices
297	based upon evaluation of a reasonable title search or a search
298	of the records of a Uniform Commercial Code filing office and
299	such other information as may be necessary, determination and
300	clearance of underwriting objections and requirements to
301	eliminate risk, preparation and issuance of a title insurance
302	commitment setting forth the requirements to insure, and
303	preparation and issuance of the policy. Such services do not
304	include closing services or title searches, for which a separate
305	charge or separate charges may be made.
306	(17) When used in context signifying a jurisdiction other
307	than the State of Florida, "state" means any state, district,
308	territory, or commonwealth of the United States.
309	(18) "Title insurance" means:
310	(a) Insurance of owners of real property or others having
311	an interest in real property or a contractual interest derived
312	from real property, or liens or encumbrances on real property,
313	against loss by encumbrance, or defective titles, or invalidity,
314	or adverse claim to title; or
315	(b) Insurance of owners and secured parties of the
316	attachment, perfection, and priority of security interests in
317	personal property under the Uniform Commercial Code.
318	(19) "Title insurance agent" means a person appointed in
319	writing by a title insurer to issue and countersign commitments
320	or policies of title insurance on the title insurer's behalf.
321	(20) "Title insurance agency" means an insurance agency as
322	defined in s. 626.015 under which a title insurance agent or
323	other employee determines insurability in accordance with
324	underwriting rules and standards prescribed by the title insurer
325	represented by the title insurance agency and issues and
326	countersigns commitments, endorsements, or policies of title
327	insurance on behalf of the appointing title insurer. The term
328	does not include a title insurer.
329	(21) "Title insurer" means any domestic company organized
330	and authorized to do business under the provisions of this
331	chapter, for the purpose of issuing title insurance, or any
332	insurer organized under the laws of another state, the District
333	of Columbia, or a foreign country and holding a certificate of
334	authority to transact business in this state, for the purpose of
335	issuing title insurance.
336	(22) "Title search" means the compiling of title
337	information from official or public records.
338	(23) "Transact" means, with respect to insurance and in
339	addition to other applicable provisions of this chapter:
340	(a) Solicitation or inducement.
341	(b) Preliminary negotiations.
342	(c) Effectuation of a contract of insurance.
343	(d) Transaction of matters subsequent to effectuation of a
344	contract of insurance and arising out of it.
345	(24) "Unsound condition" means that the department has
346	determined that one or more of the following conditions exist
347	with respect to an insurer:
348	(a) The insurer's required surplus, capital, or capital
349	stock is impaired to an extent prohibited by law;
350	(b) The insurer continues to write new business when it
351	has not maintained the required surplus or capital stock;
352	(c) The insurer attempts to dissolve or liquidate without
353	first having made provisions, satisfactory to the department,
354	for liabilities arising from insurance policies issued by the
355	insurer; or
356	(d) The insurer meets one or more of the grounds in s.
357	631.051 for the appointment of the department as receiver.
358	637.10045 Preemption to state.-The regulation of title
359	insurance, title insurers, and title insurance agencies is
360	preempted to the state.
361	637.1005 General applicability of other chapters.-
362	(1) The provisions of chapters 624, 626, and 627 do not
363	apply to title insurers or their agents unless specifically
364	incorporated by reference and made applicable to this chapter by
365	a provision of this chapter.
366	(2) The provisions of chapters 625, 628, and 631 apply to
367	title insurance and for purposes of applying such provisions to
368	title insurance, the term "office" shall be interpreted to mean
369	department and the term "Director of the Division of Insurance
370	Regulation" shall be interpreted to mean the Chief Financial
371	Officer.
372	637.1006 General powers; duties.-
373	(1) The powers and duties of the Chief Financial Officer
374	and the department specified in this chapter apply with respect
375	to title insurers, title insurance agents, and title insurance
376	agencies.
377	(2) The department shall enforce the provisions of this
378	chapter and shall execute the duties imposed upon the department
379	by this chapter, as provided by law.
380	(3) The department shall have the powers and authority
381	expressly conferred upon it by, or reasonably implied from, the
382	provisions of this chapter.
383	(4) The department may conduct such investigations of
384	insurance matters, in addition to investigations expressly
385	authorized, as it may deem proper to determine whether any
386	person has violated any provision of this chapter within its
387	respective regulatory jurisdiction or to secure information
388	useful in the lawful administration of any such provision. The
389	cost of such investigations shall be borne by the state.
390	(5) The department may collect, propose, publish, and
391	disseminate information relating to the subject matter of any
392	duties imposed upon it by law.
393	(6) The department shall have such additional powers and
394	duties as may be provided by other laws of this state.
395	(7) The department may employ actuaries who shall be at-
396	will employees and who shall serve at the pleasure of the Chief
397	Financial Officer, in the case of department employees.
398	Actuaries employed pursuant to this subsection shall be members
399	of the Society of Actuaries or the Casualty Actuarial Society
400	and shall be exempt from the Career Service System established
401	under chapter 110. The salaries of the actuaries employed
402	pursuant to this paragraph shall be set in accordance with s.
403	216.251(2)(a)5. and shall be set at levels which are
404	commensurate with salary levels paid to actuaries by the
405	insurance industry.
406	(8) The department shall, within existing resources,
407	develop and implement an outreach program for the purpose of
408	encouraging the entry of additional insurers into the Florida
409	market.
410	(9) Upon receiving service of legal process issued in any
411	civil action or proceeding in this state against any regulated
412	person required to appoint the Chief Financial Officer as its
413	attorney to receive service of all legal process, the Chief
414	Financial Officer, as attorney, may, in lieu of sending the
415	process by registered or certified mail, send the process by any
416	other verifiable means to the person last designated by the
417	regulated person to receive the process.
418	(10) This section does not limit the authority of the
419	department and the Division of Insurance Fraud, as specified in
420	s. 637.1046.
421	(11) The department may enforce violations of the Real
422	Estate Settlement Procedures Act, 12 U.S.C. ss. 2601 et seq.
423	637.1007 Rules.-
424	(1) The department may adopt rules pursuant to ss.
425	120.536(1) and 120.54 to implement provisions of this chapter
426	and interpret the specific powers and duties provided in this
427	chapter, which rules may:
428	(a) Define the license and appointment requirements for
429	title insurance agents and agencies.
430	(b) Establish penalty guidelines for enforcing the
431	requirements of this chapter.
432	(c) Describe the fiduciary responsibilities of title
433	insurance agents and agencies, including, but not limited to,
434	duties related to escrow accounts.
435	(d) Identify the responsibilities, duties, and
436	designations of the agent in charge of the title insurance
437	agency or the attorney in charge of an attorney-owned title
438	insurance agency.
439	(e) Enable the collection of information from agents and
440	agencies relating to title insurance business.
441	(f) Set reasonable requirements for the timely recording
442	of documents and the delivery of final title policies.
443	(g) Establish rules for the protection, calculation, and
444	timely remittance of premiums that are owed to title insurers.
445	(h) Prohibit the markup of the cost of any third-party
446	services without adding value.
447	(2) In addition to any other penalty provided, willful
448	violation of any such rule shall subject the violator to such
449	suspension or revocation of certificate of authority or license
450	as may be applicable under this chapter as for violation of the
451	provision as to which such rule relates.
452	637.1008 General penalty.-
453	(1) Each willful violation of this chapter or rule of the
454	department as to which a greater penalty is not provided by
455	another provision of this chapter or rule of the department or
456	by other applicable laws of this state is a misdemeanor of the
457	second degree and is, in addition to any prescribed applicable
458	denial, suspension, or revocation of certificate of authority,
459	license, or permit, punishable as provided in s. 775.082 or s.
460	775.083. Each instance of such violation shall be considered a
461	separate offense.
462	(2) Each willful violation of an emergency rule or order
463	of the department by a person who is not licensed, authorized,
464	or eligible to engage in business in accordance with this
465	chapter is a felony of the third degree, punishable as provided
466	in s. 775.082, s. 775.083, or s. 775.084. Each instance of such
467	violation is a separate offense. This subsection does not apply
468	to licensees or affiliated parties of licensees.
469	637.1009 Enforcement; cease and desist orders; removal of
470	certain persons; fines.-
471	(1) DEFINITIONS.-For the purposes of this section, the
472	term:
473	(a) "Affiliated party" means any person who directs or
474	participates in the conduct of the affairs of a licensee and who
475	is:
476	1. A director, officer, employee, trustee, committee
477	member, or controlling stockholder of a licensee or a subsidiary
478	or service corporation of the licensee, other than a controlling
479	stockholder which is a holding company, or an agent of a
480	licensee or a subsidiary or service corporation of the licensee;
481	2. A person who has filed or is required to file a
482	statement or any other information required to be filed under s.
483	628.461 or s. 628.4615;
484	3. A stockholder, other than a stockholder that is a
485	holding company of the licensee, who participates in the conduct
486	of the affairs of the licensee; or
487	4. An independent contractor who:
488	a. Renders a written opinion required by the laws of this
489	state under her or his professional credentials on behalf of the
490	licensee, which opinion is reasonably relied on by the
491	department in the performance of its duties; or
492	b. Affirmatively and knowingly conceals facts, through a
493	written misrepresentation to the department, with knowledge that
494	such misrepresentation:
495	(I) Constitutes a violation of this chapter or a lawful
496	rule or order of the department; and
497	(II) Directly and materially endangers the ability of the
498	licensee to meet its obligations to policyholders.
499
500	For the purposes of this subparagraph, any representation of
501	fact made by an independent contractor on behalf of a licensee,
502	affirmatively communicated as a representation of the licensee
503	to the independent contractor, shall not be considered a
504	misrepresentation by the independent contractor.
505	(b) "Licensee" means a person issued a license or
506	certificate of authority or approval under this chapter or a
507	person registered under a provision of this chapter.
508	(2) ENFORCEMENT GENERALLY.-
509	(a) The powers granted by this section to the department
510	apply only with respect to licensees of the department and their
511	affiliated parties and to unlicensed persons subject to
512	regulatory jurisdiction of the department.
513	(b) The department may institute such suits or other legal
514	proceedings as may be required to enforce any provision of this
515	chapter within the department's regulatory jurisdiction. If it
516	appears that any person has violated any provision of this
517	chapter for which criminal prosecution is provided, the
518	department shall provide the appropriate state attorney or other
519	prosecuting agency having jurisdiction with respect to such
520	prosecution with the relevant information in its possession.
521	(3) CEASE AND DESIST ORDERS.-
522	(a) The department may issue and serve a complaint stating
523	charges upon any licensee or upon any affiliated party, whenever
524	the department has reasonable cause to believe that the person
525	or individual named therein is engaging in or has engaged in
526	conduct that is:
527	1. An act that demonstrates a lack of fitness or
528	trustworthiness to engage in the business of insurance, is
529	hazardous to the insurance buying public, or constitutes
530	business operations that are a detriment to policyholders,
531	stockholders, investors, creditors, or the public;
532	2. A violation of any provision of this chapter;
533	3. A violation of any rule of the department;
534	4. A violation of any order of the department; or
535	5. A breach of any written agreement with the department.
536	(b) The complaint shall contain a statement of facts and
537	notice of opportunity for a hearing pursuant to ss. 120.569 and
538	120.57.
539	(c) If no hearing is requested within the time allowed by
540	ss. 120.569 and 120.57, or if a hearing is held and the
541	department finds that any of the charges are proven, the
542	department may enter an order directing the licensee or the
543	affiliated party named in the complaint to cease and desist from
544	engaging in the conduct complained of and take corrective action
545	to remedy the effects of past improper conduct and assure future
546	compliance.
547	(d) If the licensee or affiliated party named in the order
548	fails to respond to the complaint within the time allotted by
549	ss. 120.569 and 120.57, the failure constitutes a default and
550	justifies the entry of a cease and desist order.
551	(e) A contested or default cease and desist order is
552	effective when reduced to writing and served upon the licensee
553	or affiliated party named therein. An uncontested cease and
554	desist order is effective as agreed.
555	(f) Whenever the department finds that conduct described
556	in paragraph (a) is likely to cause insolvency, substantial
557	dissipation or misvaluation of assets or earnings of the
558	licensee, substantial inability to pay claims on a timely basis,
559	or substantial prejudice to prospective or existing insureds,
560	policyholders, subscribers, or the public, it may issue an
561	emergency cease and desist order requiring the licensee or any
562	affiliated party to immediately cease and desist from engaging
563	in the conduct complained of and to take corrective and remedial
564	action. The emergency order is effective immediately upon
565	service of a copy of the order upon the licensee or affiliated
566	party named therein and remains effective for 90 days. If the
567	department begins nonemergency cease and desist proceedings
568	under this subsection, the emergency order remains effective
569	until the conclusion of the proceedings under ss. 120.569 and
570	120.57.
571	(4) REMOVAL OF AFFILIATED PARTIES.-
572	(a) The department may issue and serve a complaint stating
573	charges upon any affiliated party and upon the licensee
574	involved, whenever the department has reason to believe that an
575	affiliated party is engaging in or has engaged in conduct that
576	constitutes:
577	1. An act that demonstrates a lack of fitness or
578	trustworthiness to engage in the business of insurance through
579	engaging in illegal activity or mismanagement of business
580	activities;
581	2. A willful violation of any law relating to the business
582	of insurance; however, if the violation constitutes a
583	misdemeanor, no complaint shall be served as provided in this
584	section until the affiliated party is notified in writing of the
585	matter of the violation and has been afforded a reasonable
586	period of time, as set forth in the notice, to correct the
587	violation and has failed to do so;
588	3. A violation of any other law involving fraud or moral
589	turpitude that constitutes a felony;
590	4. A willful violation of any rule of the department;
591	5. A willful violation of any order of the department;
592	6. A material misrepresentation of fact, made knowingly
593	and willfully or made with reckless disregard for the truth of
594	the matter; or
595	7. An act of commission or omission or a practice which is
596	a breach of trust or a breach of fiduciary duty.
597	(b) The complaint shall contain a statement of facts and
598	notice of opportunity for a hearing pursuant to ss. 120.569 and
599	120.57.
600	(c) If no hearing is requested within the time allotted by
601	ss. 120.569 and 120.57, or if a hearing is held and the
602	department finds that any of the charges in the complaint are
603	proven true and that:
604	1. The licensee has suffered or will likely suffer loss or
605	other damage;
606	2. The interests of the policyholders, creditors, or
607	public are, or could be, seriously prejudiced by reason of the
608	violation or act or breach of fiduciary duty;
609	3. The affiliated party has received financial gain by
610	reason of the violation, act, or breach of fiduciary duty; or
611	4. The violation, act, or breach of fiduciary duty is one
612	involving personal dishonesty on the part of the affiliated
613	party or the conduct jeopardizes or could reasonably be
614	anticipated to jeopardize the financial soundness of the
615	licensee,
616
617	The department may enter an order removing the affiliated party
618	or restricting or prohibiting participation by the person in the
619	affairs of that particular licensee or of any other licensee.
620	(d) If the affiliated party fails to respond to the
621	complaint within the time allotted by ss. 120.569 and 120.57,
622	the failure constitutes a default and justifies the entry of an
623	order of removal, suspension, or restriction.
624	(e) A contested or default order of removal, restriction,
625	or prohibition is effective when reduced to writing and served
626	on the licensee and the affiliated party. An uncontested order
627	of removal, restriction, or prohibition is effective as agreed.
628	(f)1. The chief executive officer, or the person holding
629	the equivalent office, of a licensee shall promptly notify the
630	department that issued the license if she or he has actual
631	knowledge that any affiliated party is charged with a felony in
632	a state or federal court.
633	2. Whenever any affiliated party is charged with a felony
634	in a state or federal court or with the equivalent of a felony
635	in the courts of any foreign country with which the United
636	States maintains diplomatic relations, and the charge alleges
637	violation of any law involving fraud, theft, or moral turpitude,
638	the department may enter an emergency order suspending the
639	affiliated party or restricting or prohibiting participation by
640	the affiliated party in the affairs of the particular licensee
641	or of any other licensee upon service of the order upon the
642	licensee and the affiliated party charged. The order shall
643	contain notice of opportunity for a hearing pursuant to ss.
644	120.569 and 120.57, where the affiliated party may request a
645	postsuspension hearing to show that continued service to or
646	participation in the affairs of the licensee does not pose a
647	threat to the interests of the licensee's policyholders or
648	creditors and does not threaten to impair public confidence in
649	the licensee. In accordance with applicable rules, the
650	department shall notify the affiliated party whether the order
651	suspending or prohibiting the person from participation in the
652	affairs of a licensee will be rescinded or otherwise modified.
653	The emergency order remains in effect, unless otherwise modified
654	by the department, until the criminal charge is disposed of. The
655	acquittal of the person charged, or the final, unappealed
656	dismissal of all charges against the person, dissolves the
657	emergency order, but does not prohibit the department from
658	instituting proceedings under paragraph (a). If the person
659	charged is convicted or pleads guilty or nolo contendere,
660	whether or not an adjudication of guilt is entered by the court,
661	the emergency order shall become final.
662	(g) Any affiliated party removed from office pursuant to
663	this section is not eligible for reelection or appointment to
664	the position or to any other official position in any licensee
665	in this state except upon the written consent of the department.
666	Any affiliated party who is removed, restricted, or prohibited
667	from participation in the affairs of a licensee pursuant to this
668	section may petition the department for modification or
669	termination of the removal, restriction, or prohibition.
670	(h) Resignation or termination of an affiliated party does
671	not affect the department's jurisdiction to proceed under this
672	subsection.
673	(5) ADMINISTRATIVE FINES; ENFORCEMENT.-
674	(a) The department, in a proceeding initiated pursuant to
675	chapter 120, may impose an administrative fine against any
676	person found in the proceeding to have violated any provision of
677	this chapter, a cease and desist order of the department, or any
678	written agreement with the department. A proceeding may not be
679	initiated and a fine may not accrue until after the person has
680	been notified in writing of the nature of the violation and has
681	been afforded a reasonable period of time, as set forth in the
682	notice, to correct the violation and has failed to do so.
683	(b) A fine imposed under this subsection may not exceed
684	the amounts specified in s. 637.2021, per violation.
685	(c) In addition to the imposition of an administrative
686	fine under this subsection, the department may also suspend or
687	revoke the license or certificate of authority of the licensee
688	fined under this subsection.
689	(d) Any administrative fine levied by the department under
690	this subsection may be enforced by the department by appropriate
691	proceedings in the circuit court of the county in which the
692	person resides or in which the principal office of a licensee is
693	located, or, in the case of a foreign insurer or person not
694	residing in this state, in Leon County. In any administrative or
695	judicial proceeding arising under this section, a party may
696	elect to correct the violation asserted by the department, and,
697	upon doing so, any fine shall cease to accrue; however, the
698	election to correct the violation does not render any
699	administrative or judicial proceeding moot. All fines collected
700	under this section shall be paid to the Title Insurance
701	Regulatory Trust Fund.
702	(e) In imposing any administrative penalty or remedy
703	provided for under this section, the department shall take into
704	account the appropriateness of the penalty with respect to the
705	size of the financial resources and the good faith of the person
706	charged, the gravity of the violation, the history of previous
707	violations, and other matters as justice may require.
708	(f) The imposition of an administrative fine under this
709	subsection may be in addition to any other penalty or
710	administrative fine authorized under this chapter.
711	(6) ADMINISTRATIVE PROCEDURES.-All administrative
712	proceedings under subsections (3), (4), and (5) shall be
713	conducted in accordance with chapter 120. Any service required
714	or authorized to be made by the department under this chapter
715	shall be made by certified mail, return receipt requested,
716	delivered to the addressee only; by personal delivery; or in
717	accordance with chapter 48. The service provided for herein
718	shall be effective from the date of delivery.
719	(7) CRIMINAL ENFORCEMENT.-It is unlawful for any
720	affiliated party who is removed or prohibited from participation
721	in the affairs of a licensee pursuant to this section, or for
722	any licensee whose rights or privileges under such license have
723	been suspended or revoked pursuant to this chapter, to knowingly
724	act as an affiliated party as defined in this section or to
725	knowingly transact insurance until expressly authorized to do so
726	by the department. Such authorization by the department may not
727	be provided unless the affiliated party or the licensee has made
728	restitution, if applicable, to all parties damaged by the
729	actions of the affiliated party or the licensee which served as
730	the basis for the removal or prohibition of the affiliated party
731	or the suspension or revocation of the rights and privileges of
732	the licensee. Any person who violates the provisions of this
733	subsection commits a felony of the third degree, punishable as
734	provided in s. 775.082, s. 775.083 or s. 775.084.
735	637.1011 Immunity from civil liability for providing
736	department with information about condition of insurer.-A
737	person, other than a person filing a required report or other
738	required information, who provides the department with
739	information about the financial condition of an insurer is
740	immune from civil liability arising out of the provision of the
741	information unless the person acted with knowledge that the
742	information was false or with reckless disregard for the truth
743	or falsity of the information.
744	637.1012 Records; reproductions; destruction.-
745	(1) Except as provided in this section, the department
746	shall each preserve in permanent form records of its
747	proceedings, hearings, investigations, and examinations and
748	shall file such records in its department.
749	(2) The department may photograph, microphotograph, or
750	reproduce on film, or maintain in an electronic recordkeeping
751	system, all financial records, financial statements of domestic
752	insurers, reports of business transacted in this state by
753	foreign insurers and alien insurers, reports of examination of
754	domestic insurers, and such other records and documents on file
755	in the department as the department may in its discretion
756	select.
757	(3) To facilitate the efficient use of floor space and
758	filing equipment in its offices, the department may destroy the
759	following records and documents pursuant to chapter 257:
760	(a) General closed correspondence files over 3 years old.
761	(b) Title insurance and similar license files, over 2
762	years old; except that the department shall preserve by
763	reproduction or otherwise a copy of the original records upon
764	the basis of which each such licensee qualified for her or his
765	initial license, except a competency examination, and of any
766	disciplinary proceeding affecting the licensee.
767	(c) All title insurance agent and similar license files
768	and records, including original license qualification records
769	and records of disciplinary proceedings 5 years after a licensee
770	has ceased to be qualified for a license.
771	(d) Insurer certificate of authority files over 2 years
772	old, except that the department shall preserve by reproduction
773	or otherwise a copy of the initial certificate of authority of
774	each insurer.
775	(e) All documents and records which have been photographed
776	or otherwise reproduced as provided in subsection (2), if such
777	reproductions have been filed and an audit of the department has
778	been completed for the period embracing the dates of such
779	documents and records.
780	(f) All other records, documents, and files not expressly
781	provided for in paragraphs (a)-(e).
782	637.1013 Reproductions and certified copies of records as
783	evidence.-
784	(1) Photographs or microphotographs in the form of film or
785	prints, or other reproductions from an electronic recordkeeping
786	system, of documents and records made under s. 637.1012(2), or
787	made under former s. 624.311(3) before October 1, 1982, shall
788	have the same force and effect as the originals thereof and
789	shall be treated as originals for the purpose of their
790	admissibility in evidence. Duly certified or authenticated
791	reproductions of such photographs, microphotographs, or other
792	reproductions from an electronic recordkeeping system shall be
793	as admissible in evidence as the originals.
794	(2) Upon the request of any person and payment of the
795	applicable fee, the department shall give a certified copy of
796	any record in its department which is then subject to public
797	inspection.
798	(3) Copies of original records or documents in its
799	department certified by the department shall be received in
800	evidence in all courts as if they were originals.
801	637.1014 Publications.-
802	(1) As early as reasonably possible, the department shall
803	annually have printed and made available a statistical report
804	which must include all of the following information on either a
805	calendar year or fiscal year basis:
806	(a) The total amount of premiums written and earned for
807	title insurance.
808	(b) The total amount of losses paid and losses incurred
809	for title insurance.
810	(c) The ratio of premiums written to losses paid by title
811	insurance.
812	(d) The ratio of premiums earned to losses incurred by
813	title insurance.
814	(e) The market share of the 10 largest insurers or insurer
815	groups of title insurance and of each insurer or insurer group
816	that has a market share of at least 1 percent of a line of
817	insurance in this state.
818	(f) The profitability of title insurance.
819	(g) An analysis of the impact of the insurance industry on
820	the economy of the state.
821	(h) A complaint ratio by line of insurance for the
822	insurers referred to in paragraph (e), based upon information
823	provided to the department by the department. The department
824	shall determine the most appropriate ratio or ratios for
825	quantifying complaints.
826	(i) A summary of the findings of market examinations
827	performed by the department under s. 637.1018 during the
828	preceding year.
829	(j) Such other information as the department deems
830	relevant.
831	(2) The department may prepare and have printed and
832	published in pamphlet or book form, as needed, questions and
833	answers for the use of persons applying for an examination for
834	licensing as title insurance agents.
835	(3) The department shall sell the publications mentioned
836	in subsections (1) and (2) to purchasers at a price fixed by the
837	department at not less than the cost of printing and binding
838	such publications, plus packaging and postage costs for mailing;
839	except that the department may deliver copies of such
840	publications free of cost to state agencies and officers;
841	insurance supervisory authorities of other states and
842	jurisdictions; institutions of higher learning located in
843	Florida; the Library of Congress; insurance officers of Naval,
844	Military, and Air Force bases located in this state; and to
845	persons serving as advisers to the department in preparation of
846	the publications.
847	(4) The department may contract with outside vendors, in
848	accordance with chapter 287, to compile data in an electronic
849	data processing format that is compatible with the systems of
850	the department.
851	637.1015 Sale of publications; deposit of proceeds.-The
852	department shall deposit all moneys received from the sale of
853	publications under s. 637.1014 in the Title Insurance Regulatory
854	Trust Fund for the purpose of paying costs for the preparation,
855	printing, and delivery of the publications required in s.
856	637.1014(2), packaging and mailing costs, and banking,
857	accounting, and incidental expenses connected with the sale and
858	delivery of such publications. All moneys deposited into and all
859	funds transferred to the Title Insurance Regulatory Trust Fund
860	are appropriated for such uses and purposes.
861	637.1016 Department; annual report.-
862	(1) As early as reasonably possible, the department shall
863	annually prepare a report to the Speaker and Minority Leader of
864	the House of Representatives, the President and Minority Leader
865	of the Senate, the chairs of the legislative committees with
866	jurisdiction over matters of insurance, and the Governor
867	showing, with respect to the preceding calendar year:
868	(a) Names of the authorized insurers transacting insurance
869	in this state, with abstracts of their financial statements
870	including assets, liabilities, and net worth.
871	(b) Names of insurers whose business was closed during the
872	year, the cause thereof, and amounts of assets and liabilities
873	as ascertainable.
874	(c) Names of insurers against which delinquency or similar
875	proceedings were instituted, and a concise statement of the
876	circumstances and results of each such proceeding.
877	(d) The receipts and estimated expenses of the department
878	for the year.
879	(e) Such other pertinent information and matters as the
880	department deems to be in the public interest.
881	(f) Annually after each regular session of the
882	Legislature, a compilation of the laws of this state relating to
883	insurance. Any such publication may be printed, revised, or
884	reprinted upon the basis of the original low bid.
885	(g) An analysis and summary report of the state of the
886	insurance industry in this state evaluated as of the end of the
887	most recent calendar year.
888	(2) The department shall maintain the following
889	information and make such information available upon request:
890	(a) Calendar year profitability, including investment
891	income from loss reserves (Florida and countrywide).
892	(b) Aggregate Florida loss reserves.
893	(c) Premiums written (Florida and countrywide).
894	(d) Premiums earned (Florida and countrywide).
895	(e) Incurred losses (Florida and countrywide).
896	(f) Paid losses (Florida and countrywide).
897	(g) Allocated Florida loss adjustment expenses.
898	(h) Variation of premiums charged by the industry as
899	compared to rates promulgated by the Insurance Services Office
900	(Florida and countrywide).
901	(i) An analysis of policy size limits (Florida and
902	countrywide).
903	(j) Trends; emerging trends as exemplified by the
904	percentage change in frequency and severity of both paid and
905	incurred claims, and pure premium (Florida and countrywide).
906	(3) The department may contract with outside vendors, in
907	accordance with chapter 287, to compile data in an electronic
908	data processing format that is compatible with the systems of
909	the department.
910	637.1017 Examination of insurers.-
911	(1)(a) The department shall examine the affairs,
912	transactions, accounts, records, and assets of each authorized
913	insurer as to its transactions affecting the insurer as often as
914	it deems advisable, except as provided in this section. The
915	examination may include examination of the affairs,
916	transactions, accounts, and records relating directly or
917	indirectly to the insurer and of the assets of the insurer's
918	managing general agents and controlling or controlled person, as
919	defined in s. 625.012. The examination shall be pursuant to a
920	written order of the department. Such order shall expire upon
921	receipt by the department of the written report of the
922	examination.
923	(b) The department shall examine each insurer according to
924	accounting procedures designed to fulfill the requirements of
925	generally accepted insurance accounting principles and practices
926	and good internal control and in keeping with generally accepted
927	accounting forms, accounts, records, methods, and practices
928	relating to insurers. To facilitate uniformity in examinations,
929	the department may adopt, by rule, the Market Conduct Examiners
930	Handbook and the Financial Condition Examiners Handbook of the
931	National Association of Insurance Commissioners, 2002, and may
932	adopt subsequent amendments thereto, if the examination
933	methodology remains substantially consistent.
934	(2)(a) Except as provided in paragraph (f), the department
935	may examine each insurer as often as may be warranted for the
936	protection of the policyholders and in the public interest, and
937	shall examine each domestic insurer not less frequently than
938	once every 5 years. The examination shall cover the preceding 5
939	fiscal years of the insurer and shall be commenced within 12
940	months after the end of the most recent fiscal year being
941	covered by the examination. The examination may cover any period
942	of the insurer's operations since the last previous examination.
943	The examination may include examination of events subsequent to
944	the end of the most recent fiscal year and the events of any
945	prior period that affect the present financial condition of the
946	insurer.
947	(b) The department shall examine each insurer applying for
948	an initial certificate of authority to transact insurance in
949	this state before granting the initial certificate.
950	(c) In lieu of making its own examination, the department
951	may accept a full report of the last recent examination of a
952	foreign insurer, certified to by the insurance supervisory
953	official of another state.
954	(d) The examination by the department of an alien insurer
955	shall be limited to the alien insurer's insurance transactions
956	and affairs in the United States, except as otherwise required
957	by the department.
958	(e) The department shall adopt rules providing that an
959	examination under this section may be conducted by independent
960	certified public accountants, actuaries, investment specialists,
961	information technology specialists, and reinsurance specialists
962	meeting criteria specified by rule. The rules shall provide:
963	1. That the rates charged to the insurer being examined
964	are consistent with rates charged by other firms in a similar
965	profession and are comparable with the rates charged for
966	comparable examinations.
967	2. That the firm selected by the department to perform the
968	examination has no conflicts of interest that might affect its
969	ability to independently perform its responsibilities on the
970	examination.
971	3. That the insurer being examined must make payment for
972	the examination pursuant to s. 637.1023(1) in accordance with
973	the rates and terms established by the department and the firm
974	performing the examination.
975	(f) An examination under this section must be conducted at
976	least once every year with respect to a domestic insurer that
977	has continuously held a certificate of authority for less than 3
978	years. The examination must cover the preceding fiscal year or
979	the period since the last examination of the insurer. The
980	department may limit the scope of the examination.
981	637.1018 Market conduct examinations.-
982	(1) As often as it deems necessary, the department shall
983	examine each licensed rating organization, each advisory
984	organization, each group, association, carrier, as defined in s.
985	440.02, or other organization of insurers which engages in joint
986	underwriting or joint reinsurance, and each authorized insurer
987	transacting in this state any class of insurance to which the
988	provisions of this chapter are applicable. The examination shall
989	be for the purpose of ascertaining compliance by the person
990	examined with the applicable provisions of this chapter.
991	(2) In lieu of any such examination, the department may
992	accept the report of a similar examination made by the insurance
993	supervisory official of another state.
994	(3) The examination may be conducted by an independent
995	professional examiner under contract to the department, in which
996	case payment shall be made directly to the contracted examiner
997	by the insurer examined in accordance with the rates and terms
998	agreed to by the department and the examiner.
999	(4) The reasonable cost of the examination shall be paid
1000	by the person examined, and such person shall be subject, as
1001	though an insurer, to the provisions of s. 637.1023.
1002	(5) Such examinations shall also be subject to the
1003	applicable provisions of chapter 440 and ss. 637.1021, 637.1022,
1004	637.1024, and 637.1025.
1005	637.1019 Investigation of title insurance agents and
1006	others.-If the department has reason to believe that any title
1007	insurance agent has violated or is violating any provision of
1008	this chapter, or upon the written complaint signed by any
1009	interested person indicating that any such violation may exist:
1010	(1) The department shall conduct such investigation as it
1011	deems necessary of the accounts, records, documents, and
1012	transactions pertaining to or affecting the insurance affairs of
1013	any title insurance agent, title insurance agency, or other
1014	person subject to its jurisdiction.
1015	(2) The department shall conduct such investigation as it
1016	deems necessary of the accounts, records, documents, and
1017	transactions pertaining to or affecting the insurance affairs of
1018	any:
1019	(a) Person subject to its jurisdiction.
1020	(b) Person having a contract or power of attorney under
1021	which she or he enjoys in fact the exclusive or dominant right
1022	to manage or control an insurer.
1023	(c) Person engaged in or proposing to be engaged in the
1024	promotion or formation of:
1025	1. A domestic insurer;
1026	2. An insurance holding corporation; or
1027	3. A corporation to finance a domestic insurer or in the
1028	production of the domestic insurer's business.
1029	(3) In the investigation by the department of the alleged
1030	misconduct, the licensee shall, whenever required by the
1031	department, cause his or her books and records to be open for
1032	inspection for the purpose of such inquiries.
1033	(4) A complaint against any licensee may be informally
1034	alleged and need not be in any language necessary to charge a
1035	crime on an indictment or information.
1036	(5) The expense for any hearings or investigations under
1037	this section, as well as the fees and mileage of witnesses, may
1038	be paid out of the appropriate fund.
1039	(6) If the department, after investigation, has reason to
1040	believe that a licensee may have been found guilty of or pleaded
1041	guilty or nolo contendere to a felony or a crime related to the
1042	business of insurance in this or any other state or jurisdiction,
1043	the department or office may require the licensee to file with
1044	the department or office a complete set of his or her
1045	fingerprints, which shall be accompanied by the fingerprint
1046	processing fee set forth in s. 637.2031. The fingerprints shall
1047	be taken by an authorized law enforcement agency or other
1048	department-approved entity.
1049	637.1021 Conduct of examination or investigation; access
1050	to records; correction of accounts; appraisals.-
1051	(1) The examination or investigation may be conducted by
1052	the accredited examiners or investigators of the department at
1053	the offices wherever located of the person being examined or
1054	investigated and at such other places as may be required for
1055	determination of matters under examination or investigation. In
1056	the case of alien insurers, the examination may be so conducted
1057	in the insurer's offices and places in the United States, except
1058	as otherwise required by the department.
1059	(2) Every person being examined or investigated, and its
1060	officers, attorneys, employees, agents, and representatives,
1061	shall make freely available to the department or its examiners
1062	or investigators the accounts, records, documents, files,
1063	information, assets, and matters in their possession or control
1064	relating to the subject of the examination or investigation. An
1065	agent who provides other products or services or maintains
1066	customer information not related to insurance must maintain
1067	records relating to insurance products and transactions
1068	separately if necessary to give the department access to such
1069	records. If records relating to the insurance transactions are
1070	maintained by an agent on premises owned or operated by a third
1071	party, the agent and the third party must provide access to the
1072	records by the department.
1073	(3) If the department finds any accounts or records to be
1074	inadequate, or inadequately kept or posted, it may employ
1075	experts to reconstruct, rewrite, post, or balance them at the
1076	expense of the person being examined if such person has failed
1077	to maintain, complete, or correct such records or accounting
1078	after the department has given her or him notice and a
1079	reasonable opportunity to do so.
1080	(4) If the department deems it necessary to value any
1081	asset involved in such an examination of an insurer, it may make
1082	written request of the insurer to designate one or more
1083	competent appraisers acceptable to the department, who shall
1084	promptly make an appraisal of the asset and furnish a copy
1085	thereof to the department. If the insurer fails to designate
1086	such an appraiser or appraisers within 20 days after the request
1087	of the department, the department may designate the appraiser or
1088	appraisers. The reasonable expense of any such appraisal shall
1089	be a part of the expense of examination, to be borne by the
1090	insurer.
1091	(5) Neither the department nor any examiner shall remove
1092	any record, account, document, file, or other property of the
1093	person being examined from the offices of such person except
1094	with the written consent of such person given in advance of such
1095	removal or pursuant to an order of court duly obtained.
1096	(6) Any individual who willfully obstructs the department
1097	or the examiner in the examinations or investigations authorized
1098	by this part is guilty of a misdemeanor and upon conviction
1099	shall be punished as provided in s. 624.15.
1100	(7) The department or its examiners or investigators may
1101	electronically scan accounts, records, documents, files, and
1102	information, relating to the subject of the examination or
1103	investigation, in the possession or control of the person being
1104	examined or investigated.
1105	637.1022 Examination and investigation reports.-
1106	(1) The department or its examiner shall make a full and
1107	true written report of each examination. The examination report
1108	shall contain only information obtained from examination of the
1109	records, accounts, files, and documents of or relative to the
1110	insurer examined or from testimony of individuals under oath,
1111	together with relevant conclusions and recommendations of the
1112	examiner based thereon. The department shall furnish a copy of
1113	the examination report to the insurer examined not less than 30
1114	days prior to filing the examination report in its office. If
1115	such insurer so requests in writing within such 30-day period,
1116	the department shall grant a hearing with respect to the
1117	examination report and shall not so file the examination report
1118	until after the hearing and after such modifications have been
1119	made therein as the department deems proper.
1120	(2) The examination report when so filed shall be
1121	admissible in evidence in any action or proceeding brought by
1122	the department against the person examined, or against its
1123	officers, employees, or agents. In all other proceedings, the
1124	admissibility of the examination report is governed by the
1125	evidence code. The department or its examiners may at any time
1126	testify and offer other proper evidence as to information
1127	secured or matters discovered during the course of an
1128	examination, whether or not a written report of the examination
1129	has been either made, furnished, or filed with the department.
1130	(3) After the examination report has been filed pursuant
1131	to subsection (1), the department may publish the results of any
1132	such examination in one or more newspapers published in this
1133	state whenever it deems it to be in the public interest.
1134	(4) After the examination report of an insurer has been
1135	filed pursuant to subsection (1), an affidavit shall be filed
1136	with the department, not more than 30 days after the report has
1137	been filed, on a form furnished by the department and signed by
1138	the officer of the company in charge of the insurer's business
1139	in this state, stating that she or he has read the report and
1140	that the recommendations made in the report will be considered
1141	within a reasonable time.
1142	637.1023 Examination expenses.-
1143	(1) Each insurer so examined shall pay to the department
1144	the expenses of the examination at the rates adopted by the
1145	department. Such expenses shall include actual travel expenses,
1146	reasonable living expense allowance, compensation of the
1147	examiner or other person making the examination, and necessary
1148	attendant administrative costs of the department directly
1149	related to the examination. Such travel expense and living
1150	expense allowance shall be limited to those expenses necessarily
1151	incurred on account of the examination and shall be paid by the
1152	examined insurer together with compensation upon presentation by
1153	the department to such insurer of a detailed account of such
1154	charges and expenses after a detailed statement has been filed
1155	by the examiner and approved by the department.
1156	(2) All moneys collected from insurers for examinations
1157	shall be deposited into the Title Insurance Regulatory Trust
1158	Fund, and the department may make deposits from time to time
1159	into such fund from moneys appropriated for the operation of the
1160	department.
1161	(3) Notwithstanding the provisions of s. 112.061, the
1162	department may pay to the examiner or person making the
1163	examination out of such trust fund the actual travel expenses,
1164	reasonable living expense allowance, and compensation in
1165	accordance with the statement filed with the department by the
1166	examiner or other person, as provided in subsection (1) upon
1167	approval by the department.
1168	(4) When not examining an insurer, the travel expenses,
1169	per diem, and compensation for the examiners and other persons
1170	employed to make examinations, if approved, shall be paid out of
1171	moneys budgeted for such purpose as regular employees,
1172	reimbursements for such travel expenses and per diem to be at
1173	rates no more than as provided in s. 112.061.
1174	(5) The department may pay to regular insurance examiners,
1175	not residents of Leon County, Florida, per diem for periods not
1176	exceeding 30 days for each such examiner while at the Department
1177	of Financial Services in Tallahassee, Florida, for the purpose
1178	of auditing insurers' annual statements. Such expenses shall be
1179	paid out of moneys budgeted for such purpose, as for regular
1180	employees at rates provided in s. 112.061.
1181	(6) The provisions of this section shall apply to rate
1182	analysts and rate examiners in the discharge of their duties
1183	under s. 637.1018.
1184	637.1024 Witnesses and evidence.-
1185	(1) As to any examination, investigation, or hearing being
1186	conducted under this chapter, a person designated by the
1187	department:
1188	(a) May administer oaths, examine and cross-examine
1189	witnesses, receive oral and documentary evidence.
1190	(b) May subpoena witnesses, compel their attendance and
1191	testimony, and require by subpoena the production of books,
1192	papers, records, files, correspondence, documents, or other
1193	evidence which is relevant to the inquiry.
1194	(2) If any person refuses to comply with any such subpoena
1195	or to testify as to any matter concerning which she or he may be
1196	lawfully interrogated, the Circuit Court of Leon County or of
1197	the county wherein such examination, investigation, or hearing
1198	is being conducted, or of the county wherein such person
1199	resides, may, on the application of the department, issue an
1200	order requiring such person to comply with the subpoena and to
1201	testify.
1202	(3) Subpoenas shall be served, and proof of such service
1203	made, in the same manner as if issued by a circuit court.
1204	Witness fees, cost, and reasonable travel expenses, if claimed,
1205	shall be allowed the same as for testimony in a circuit court.
1206	637.1025 Testimony compelled; immunity from prosecution.-
1207	(1) If any natural person asks to be excused from
1208	attending or testifying or from producing any books, papers,
1209	records, contracts, documents, or other evidence in connection
1210	with any examination, hearing, or investigation being conducted
1211	by the department or its examiner, on the ground that the
1212	testimony or evidence required of her or him may tend to
1213	incriminate the person or subject her or him to a penalty or
1214	forfeiture, and shall notwithstanding be directed to give such
1215	testimony or produce such evidence, the person must, if so
1216	directed by the department and the Department of Legal Affairs,
1217	nonetheless comply with such direction; but she or he shall not
1218	thereafter be prosecuted or subjected to any penalty or
1219	forfeiture for or on account of any transaction, matter, or
1220	thing concerning which she or he may have so testified or
1221	produced evidence; and no testimony so given or evidence
1222	produced shall be received against the person upon any criminal
1223	action, investigation, or proceeding. However, no such person so
1224	testifying shall be exempt from prosecution or punishment for
1225	any perjury committed by her or him in such testimony, and the
1226	testimony or evidence so given or produced shall be admissible
1227	against her or him upon any criminal action, investigation, or
1228	proceeding concerning such perjury. No license or permit
1229	conferred or to be conferred to such person shall be refused,
1230	suspended, or revoked based upon the use of such testimony.
1231	(2) Any such individual may execute, acknowledge, and file
1232	with the department, as appropriate, a statement expressly
1233	waiving such immunity or privilege in respect to any
1234	transaction, matter, or thing specified in such statement; and
1235	thereupon the testimony of such individual or such evidence in
1236	relation to such transaction, matter, or thing may be received
1237	or produced before any judge or justice, court, tribunal, grand
1238	jury, or otherwise; and, if so received or produced, such
1239	individual shall not be entitled to any immunity or privileges
1240	on account of any testimony she or he may so give or evidence so
1241	produced.
1242	637.1026 Hearings.-The department may hold hearings for
1243	any purpose within the scope of this chapter deemed to be
1244	necessary.
1245	637.1027 Authority of Department of Law Enforcement to
1246	accept fingerprints of, and exchange criminal history records
1247	with respect to, certain persons.-
1248	(1) The Department of Law Enforcement may accept
1249	fingerprints of organizers, incorporators, subscribers,
1250	officers, stockholders, directors, or any other persons
1251	involved, directly or indirectly, in the organization,
1252	operation, or management of:
1253	(a) Any insurer or proposed insurer transacting or
1254	proposing to transact insurance in this state.
1255	(b) Any other entity which is examined or investigated or
1256	which is eligible to be examined or investigated under the
1257	provisions of this chapter.
1258	(2) The Department of Law Enforcement may accept
1259	fingerprints of individuals who apply for a license as a title
1260	insurance agent, service representative, or managing general
1261	agent or the fingerprints of the majority owner, sole
1262	proprietor, partners, officers, and directors of a corporation
1263	or other legal entity that applies for licensure with the
1264	department under the provisions of this chapter.
1265	(3) The Department of Law Enforcement may, to the extent
1266	provided for by federal law, exchange state, multistate, and
1267	federal criminal history records with the department for the
1268	purpose of the issuance, denial, suspension, or revocation of a
1269	certificate of authority, certification, or license to operate
1270	in this state.
1271	(4) The Department of Law Enforcement may accept
1272	fingerprints of any other person required by statute or rule to
1273	submit fingerprints to the department or any applicant or
1274	licensee regulated by the department who is required to
1275	demonstrate that he or she has not been convicted of or pled
1276	guilty or nolo contendere to a felony or a misdemeanor.
1277	(5) The Department of Law Enforcement shall, upon receipt
1278	of fingerprints from the department, submit the fingerprints to
1279	the Federal Bureau of Investigation to check federal criminal
1280	history records.
1281	(6) Statewide criminal records obtained through the
1282	Department of Law Enforcement, federal criminal records obtained
1283	through the Federal Bureau of Investigation, and local criminal
1284	records obtained through local law enforcement agencies shall be
1285	used by the department for the purpose of issuance, denial,
1286	suspension, or revocation of certificates of authority,
1287	certifications, or licenses issued to operate in this state.
1288	637.1029 Declaration of purpose.-The purpose of ss.
1289	637.1029-637.1049 is to regulate trade practices relating to the
1290	business of title insurance in accordance with the intent of
1291	Congress as expressed in the Act of Congress of March 9, 1945
1292	(Pub. L. No. 15, 79th Congress), by defining, or providing for
1293	the determination of, all such practices in this state which
1294	constitute unfair methods of competition or unfair or deceptive
1295	acts or practices and by prohibiting the trade practices so
1296	defined or determined.
1297	637.1031 Definitions.-When used in ss. 637.1029-637.1049,
1298	the term "insurance policy" or "insurance contract" means a
1299	written contract of, or a written agreement for or effecting,
1300	insurance, or the certificate thereof, by whatever name called,
1301	and includes all clauses, riders, endorsements, and papers which
1302	are a part thereof.
1303	637.1032 Unfair methods of competition and unfair or
1304	deceptive acts or practices prohibited; penalties.-
1305	(1) A person may not engage in this state in any trade
1306	practice which is defined in ss. 637.1029-637.1049 as, or
1307	determined pursuant to s. 637.1029 or s. 637.1035 to be, an
1308	unfair method of competition or an unfair or deceptive act or
1309	practice involving the business of insurance.
1310	(2) Any person who violates any provision of ss. 637.1029-
1311	637.1049 shall be subject to a fine in an amount not greater
1312	than $2,500 for each nonwillful violation and not greater than
1313	$20,000 for each willful violation. Fines under this subsection
1314	may not exceed an aggregate amount of $10,000 for all nonwillful
1315	violations arising out of the same action or an aggregate amount
1316	of $100,000 for all willful violations arising out of the same
1317	action. The fines authorized by this subsection may be imposed
1318	in addition to any other applicable penalty.
1319	637.1033 Unfair methods of competition and unfair or
1320	deceptive acts or practices defined.-The following are defined
1321	as unfair methods of competition and unfair or deceptive acts or
1322	practices:
1323	(1) Misrepresentations and false advertising of insurance
1324	policies.-Knowingly making, issuing, circulating, or causing to
1325	be made, issued, or circulated, any estimate, illustration,
1326	circular, statement, sales presentation, omission, or comparison
1327	which:
1328	(a) Misrepresents the benefits, advantages, conditions, or
1329	terms of any insurance policy.
1330	(b) Uses any name or title of any insurance policy or
1331	class of insurance policies misrepresenting the true nature
1332	thereof.
1333	(c) Is a misrepresentation for the purpose of inducing, or
1334	tending to induce, the lapse, forfeiture, exchange, conversion,
1335	or surrender of any insurance policy.
1336	(2) False information and advertising generally.-Knowingly
1337	making, publishing, disseminating, circulating, or placing
1338	before the public, or causing, directly or indirectly, to be
1339	made, published, disseminated, circulated, or placed before the
1340	public:
1341	(a) In a newspaper, magazine, or other publication,
1342	(b) In the form of a notice, circular, pamphlet, letter,
1343	or poster,
1344	(c) Over any radio or television station, or
1345	(d) In any other way,
1346
1347	an advertisement, announcement, or statement containing any
1348	assertion, representation, or statement with respect to the
1349	business of insurance, which is untrue, deceptive, or
1350	misleading.
1351	(3) Defamation.-Knowingly making, publishing,
1352	disseminating, or circulating, directly or indirectly, or
1353	aiding, abetting, or encouraging the making, publishing,
1354	disseminating, or circulating of, any oral or written statement,
1355	or any pamphlet, circular, article, or literature, which is
1356	false or maliciously critical of, or derogatory to, any person
1357	and which is calculated to injure such person.
1358	(4) Boycott, coercion, and intimidation.-Entering into any
1359	agreement to commit, or by any concerted action committing, any
1360	act of boycott, coercion, or intimidation resulting in, or
1361	tending to result in, unreasonable restraint of, or monopoly in,
1362	the business of insurance.
1363	(5) False statements and entries.-
1364	(a) Knowingly:
1365	1. Filing with any supervisory or other public official,
1366	2. Making, publishing, disseminating, circulating,
1367	3. Delivering to any person,
1368	4. Placing before the public,
1369	5. Causing, directly or indirectly, to be made, published,
1370	disseminated, circulated, delivered to any person, or placed
1371	before the public,
1372
1373	any false material statement.
1374	(b) Knowingly making any false entry of a material fact in
1375	any book, report, or statement of any person, or knowingly
1376	omitting to make a true entry of any material fact pertaining to
1377	the business of such person in any book, report, or statement of
1378	such person.
1379	(6) Unlawful rebates.-
1380	(a) Except as otherwise expressly provided by law, or in
1381	an applicable filing with the department, knowingly:
1382	1. Permitting, or offering to make, or making, any
1383	contract or agreement as to such contract other than as plainly
1384	expressed in the insurance contract issued thereon; or
1385	2. Paying, allowing, or giving, or offering to pay, allow,
1386	or give, directly or indirectly, as inducement to such insurance
1387	contract, any unlawful rebate of premiums payable on the
1388	contract, any special favor or advantage in the dividends or
1389	other benefits thereon, or any valuable consideration or
1390	inducement whatever not specified in the contract.
1391	(b)1. A title insurer, or any member, employee, attorney,
1392	agent, or agency thereof, may not pay, allow, or give, or offer
1393	to pay, allow, or give, directly or indirectly, as inducement to
1394	title insurance, or after such insurance has been effected, any
1395	rebate or abatement of the premium or any other charge or fee,
1396	or provide any special favor or advantage, or any monetary
1397	consideration or inducement whatever.
1398	2. Nothing in this paragraph shall be construed as
1399	prohibiting the payment of fees to attorneys at law duly
1400	licensed to practice law in the courts of this state, for
1401	professional services, or as prohibiting the payment of earned
1402	portions of the premium to duly appointed agents or agencies who
1403	actually perform services for the title insurer. Nothing in this
1404	paragraph shall be construed as prohibiting a rebate or
1405	abatement of an attorney's fee charged for professional services
1406	or any other closing charge or fee to the person responsible for
1407	paying the closing charge or fee.
1408	3. An insured named in a policy, or any other person
1409	directly or indirectly connected with the transaction involving
1410	the issuance of such policy, including, but not limited to, any
1411	mortgage broker, real estate licensee, builder, or attorney, any
1412	employee, agent, agency, or representative thereof, or any other
1413	person whatsoever, may not knowingly receive or accept, directly
1414	or indirectly, any rebate or abatement of any portion of the
1415	title insurance premium or of any other charge or fee or any
1416	monetary consideration or inducement whatsoever, except as set
1417	forth in subparagraph 2. In no event shall any portion of the
1418	attorney's fee, any closing charge or fee, or any other monetary
1419	consideration or inducement be paid directly or indirectly for
1420	the referral of title insurance business.
1421	(7) Unfair claim settlement practices.-
1422	(a) Attempting to settle claims on the basis of any
1423	material document which was altered without notice to, or
1424	knowledge or consent of, the insured;
1425	(b) A material misrepresentation made to an insured or any
1426	other person having an interest in the proceeds payable under
1427	such contract or policy, for the purpose and with the intent of
1428	effecting settlement of such claims, loss, or damage under such
1429	contract or policy on less favorable terms than those provided
1430	in, and contemplated by, such contract or policy; or
1431	(c) Committing or performing with such frequency as to
1432	indicate a general business practice any of the following:
1433	1. Failing to adopt and implement standards for the proper
1434	investigation of claims;
1435	2. Misrepresenting pertinent facts or insurance policy
1436	provisions relating to coverages at issue;
1437	3. Failing to acknowledge and act promptly upon
1438	communications with respect to claims;
1439	4. Denying claims without conducting reasonable
1440	investigations based upon available information;
1441	5. Failing to affirm or deny full or partial coverage of
1442	claims, and, as to partial coverage, the dollar amount or extent
1443	of coverage, or failing to provide a written statement that the
1444	claim is being investigated, upon the written request of the
1445	insured within 30 days after proof-of-loss statements have been
1446	completed;
1447	6. Failing to promptly provide a reasonable explanation in
1448	writing to the insured of the basis in the insurance policy, in
1449	relation to the facts or applicable law, for denial of a claim
1450	or for the offer of a compromise settlement;
1451	7. Failing to promptly notify the insured of any
1452	additional information necessary for the processing of a claim;
1453	or
1454	8. Failing to clearly explain the nature of the requested
1455	information and the reasons why such information is necessary.
1456	(8) Failure to maintain complaint-handling procedures.-
1457	Failure of any person to maintain a complete record of all the
1458	complaints received since the date of the last examination. For
1459	purposes of this subsection, the term "complaint" means any
1460	written communication primarily expressing a grievance.
1461	(9) Misrepresentation in insurance applications.-Knowingly
1462	making a false or fraudulent written or oral statement or
1463	representation on, or relative to, an application or negotiation
1464	for an insurance policy for the purpose of obtaining a fee,
1465	commission, money, or other benefit from any insurer, agent,
1466	broker, or individual.
1467	(10) Advertising gifts permitted.-No provision of
1468	subsection (6) or subsection (7) shall be deemed to prohibit a
1469	licensed insurer or its agent from giving to insureds,
1470	prospective insureds, and others, for the purpose of
1471	advertising, any article of merchandise having a value of not
1472	more than $25.
1473	(11) Illegal dealings in premiums; excess or reduced
1474	charges for insurance.-
1475	(a) Knowingly collecting any sum as a premium or charge
1476	for insurance, which is not then provided, or is not in due
1477	course to be provided, subject to acceptance of the risk by the
1478	insurer, by an insurance policy issued by an insurer as
1479	permitted by this chapter.
1480	(b) Knowingly collecting as a premium or charge for
1481	insurance any sum in excess of or less than the premium or
1482	charge applicable to such insurance, in accordance with the
1483	applicable classifications and rates as filed with and approved
1484	by the department, and as specified in the policy; or, in cases
1485	when classifications, premiums, or rates are not required by
1486	this chapter to be so filed and approved, premiums and charges
1487	collected from a resident of this state in excess of or less
1488	than those specified in the policy and as fixed by the insurer.
1489	(12) Interlocking ownership and management.-
1490	(a) Any domestic insurer may retain, invest in, or acquire
1491	the whole or any part of the capital stock of any other insurer
1492	or insurers, or have a common management with any other insurer
1493	or insurers, unless such retention, investment, acquisition, or
1494	common management is inconsistent with any other provision of
1495	this chapter, or unless by reason thereof the business of such
1496	insurers with the public is conducted in a manner which
1497	substantially lessens competition generally in the insurance
1498	business.
1499	(b) Any person otherwise qualified may be a director of
1500	two or more domestic insurers which are competitors, unless the
1501	effect thereof is substantially to lessen competition between
1502	insurers generally or materially tend to create a monopoly.
1503	(c) Any limitation contained in this subsection does not
1504	apply to any person who is a director of two or more insurers
1505	under common control or management.
1506	(13) Soliciting or accepting new or renewal insurance
1507	risks by insolvent or impaired insurer prohibited; penalty.-
1508	(a) Whether or not delinquency proceedings as to the
1509	insurer have been or are to be initiated, but while such
1510	insolvency or impairment exists, a director or officer of an
1511	insurer, except with the written permission of the department,
1512	may not authorize or permit the insurer to solicit or accept new
1513	or renewal insurance risks in this state after such director or
1514	officer knew, or reasonably should have known, that the insurer
1515	was insolvent or impaired. The term "impaired" includes
1516	impairment of capital or surplus, as defined in s. 631.011(12)
1517	and (13).
1518	(b) Any such director or officer, upon conviction of a
1519	violation of this subsection, is guilty of a felony of the third
1520	degree, punishable as provided in s. 775.082, s. 775.083, or s.
1521	775.084.
1522	(14) Refusal to insure.-In addition to other provisions of
1523	this chapter, the refusal to insure, or continue to insure, any
1524	individual or risk solely because of:
1525	(a) Race, color, creed, marital status, sex, or national
1526	origin;
1527	(b) The residence, age, or lawful occupation of the
1528	individual or the location of the risk, unless there is a
1529	reasonable relationship between the residence, age, or lawful
1530	occupation of the individual or the location of the risk and the
1531	coverage issued or to be issued; or
1532	(c) The insured's or applicant's failure to agree to place
1533	collateral business with any insurer.
1534	(15) Sliding.-Sliding is the act or practice of:
1535	(a) Representing to the applicant that a specific
1536	ancillary coverage or product is required by law in conjunction
1537	with the purchase of insurance when such coverage or product is
1538	not required;
1539	(b) Representing to the applicant that a specific
1540	ancillary coverage or product is included in the policy applied
1541	for without an additional charge when such charge is required;
1542	or
1543	(c) Charging an applicant for a specific ancillary
1544	coverage or product, in addition to the cost of the insurance
1545	coverage applied for, without the informed consent of the
1546	applicant.
1547	637.10335 Civil remedies against title insurers.-
1548	(1)(a) Any person may bring a civil action against a title
1549	insurer when such person is damaged:
1550	1. By a violation by the insurer of s. 637.1033(7), (11),
1551	or (14); or
1552	2. By the commission of any of the following acts by the
1553	insurer:
1554	a. Not attempting in good faith to settle claims when,
1555	under all the circumstances, it could and should have done so
1556	had it acted fairly and honestly toward its insured and with
1557	due regard for her or his interests;
1558	b. Making claims payments to insureds or beneficiaries not
1559	accompanied by a statement setting forth the coverage under
1560	which payments are being made; or
1561	c. Except as to liability coverages, failing to promptly
1562	settle claims, when the obligation to settle a claim has become
1563	reasonably clear, under one portion of the insurance policy
1564	coverage in order to influence settlements under other portions
1565	of the insurance policy coverage.
1566	(b) Notwithstanding paragraph (a), a person pursuing a
1567	remedy under this section need not prove that such act was
1568	committed or performed with such frequency as to indicate a
1569	general business practice.
1570	(2) Any party may bring a civil action against an
1571	unauthorized insurer if such party is damaged by a violation of
1572	s. 637.1033 by the unauthorized insurer.
1573	(3)(a) As a condition precedent to bringing an action
1574	under this section, the department and the authorized insurer
1575	must have been given 60 days' written notice of the violation.
1576	If the department returns a notice for lack of specificity, the
1577	60-day time period shall not begin until a proper notice is
1578	filed.
1579	(b) The notice shall be on a form provided by the
1580	department and shall state with specificity the following
1581	information, and such other information as the department may
1582	require:
1583	1. The statutory provision, including the specific
1584	language of the statute, which the authorized insurer allegedly
1585	violated.
1586	2. The facts and circumstances giving rise to the
1587	violation.
1588	3. The name of any individual involved in the violation.
1589	4. A reference to specific policy language that is
1590	relevant to the violation, if any. If the person bringing the
1591	civil action is a third-party claimant, she or he shall not be
1592	required to reference the specific policy language if the
1593	authorized insurer has not provided a copy of the policy to the
1594	third-party claimant pursuant to written request.
1595	5. A statement that the notice is given in order to
1596	perfect the right to pursue the civil remedy authorized by this
1597	section.
1598	(c) Within 20 days after receipt of the notice, the
1599	department may return any notice that does not provide the
1600	specific information required by this section, and the
1601	department shall indicate the specific deficiencies contained in
1602	the notice. A determination by the department to return a
1603	notice for lack of specificity shall be exempt from the
1604	requirements of chapter 120.
1605	(d) An action may not lie if, within 60 days after filing
1606	notice, the damages are paid or the circumstances giving rise to
1607	the violation are corrected.
1608	(e) The authorized insurer that is the recipient of a
1609	notice filed pursuant to this section shall report to the
1610	department on the disposition of the alleged violation.
1611	(f) The applicable statute of limitations for an action
1612	under this section shall be tolled for a period of 65 days by
1613	the mailing of the notice required by this subsection or the
1614	mailing of a subsequent notice required by this subsection.
1615	(4) Upon adverse adjudication at trial or upon appeal,
1616	the authorized insurer shall be liable for damages, together
1617	with court costs and reasonable attorney's fees incurred by the
1618	plaintiff.
1619	(5)(a) Punitive damages may not be awarded under this
1620	section unless the acts giving rise to the violation occur with
1621	such frequency as to indicate a general business practice and
1622	these acts are:
1623	1. Willful, wanton, and malicious; or
1624	2. In reckless disregard for the rights of any insured.
1625	(b) Any person who pursues a claim under this subsection
1626	shall post in advance the costs of discovery. Such costs shall
1627	be awarded to the authorized insurer if no punitive damages are
1628	awarded to the plaintiff.
1629	(6) The civil remedy specified in this section does not
1630	preempt any other remedy or cause of action provided pursuant
1631	to any other statute or pursuant to the common law of this
1632	state. Any person may obtain a judgment under the common-law
1633	remedy of bad faith or the remedy provided under this section
1634	but is not entitled to a judgment under both remedies. This
1635	section shall not be construed to create a common-law cause of
1636	action. The damages recoverable pursuant to this section shall
1637	include those damages that are a reasonably foreseeable result
1638	of a specified violation of this section by the authorized
1639	insurer and may include an award or judgment in an amount
1640	that exceeds the policy limits.
1641	637.1034 Favored title insurance agent or title insurer;
1642	coercion of debtors.-
1643	(1) A person may not:
1644	(a) Require, as a condition precedent or condition
1645	subsequent to the lending of money or extension of credit or any
1646	renewal thereof, that the person to whom such money or credit is
1647	extended, or whose obligation the creditor is to acquire or
1648	finance, negotiate any policy or contract of insurance through a
1649	particular insurer or group of insurers or agent or broker or
1650	group of agents or brokers.
1651	(b) Reject an insurance policy solely because the policy
1652	has been issued or underwritten by any person who is not
1653	associated with a financial institution, or with any subsidiary
1654	or affiliate thereof, when such insurance is required in
1655	connection with a loan or extension of credit; or unreasonably
1656	disapprove the insurance policy provided by a borrower for the
1657	protection of the property securing the credit or lien. For
1658	purposes of this paragraph, such disapproval shall be deemed
1659	unreasonable if it is not based solely on reasonable standards,
1660	uniformly applied, relating to the extent of coverage required
1661	by such lender or person extending credit and the financial
1662	soundness and the services of an insurer. Such standards shall
1663	not discriminate against any particular type of insurer, nor
1664	shall such standards call for the disapproval of an insurance
1665	policy because such policy contains coverage in addition to that
1666	required.
1667	(c) Require, directly or indirectly, that any borrower,
1668	mortgagor, purchaser, insurer, broker, or agent pay a separate
1669	charge in connection with the handling of any insurance policy
1670	that is required in connection with a loan or other extension of
1671	credit or the provision of another traditional banking product,
1672	or pay a separate charge to substitute the insurance policy of
1673	one insurer for that of another, unless such charge would be
1674	required if the person were providing the insurance. This
1675	paragraph does not include the interest which may be charged on
1676	premium loans or premium advances in accordance with the
1677	security instrument.
1678	(d) Use or provide to others insurance information
1679	required to be disclosed by a customer to a financial
1680	institution, or a subsidiary or affiliate thereof, in connection
1681	with the extension of credit for the purpose of soliciting the
1682	sale of insurance, unless the customer has given express written
1683	consent or has been given the opportunity to object to such use
1684	of the information. Insurance information means information
1685	concerning premiums, terms, and conditions of insurance
1686	coverage, insurance claims, and insurance history provided by
1687	the customer. The opportunity to object to the use of insurance
1688	information must be in writing and must be clearly and
1689	conspicuously made.
1690	(2)(a) Any person offering the sale of insurance at the
1691	time of and in connection with an extension of credit or the
1692	sale or lease of goods or services shall disclose in writing
1693	that the choice of an insurance provider will not affect the
1694	decision regarding the extension of credit or sale or lease of
1695	goods or services, except that reasonable requirements may be
1696	imposed pursuant to subsection (1).
1697	(b) Federally insured or state-insured depository
1698	institutions and credit unions shall make clear and conspicuous
1699	disclosure in writing prior to the sale of any insurance policy
1700	that such policy is not a deposit, is not insured by the Federal
1701	Deposit Insurance Corporation or any other entity, is not
1702	guaranteed by the insured depository institution or any person
1703	soliciting the purchase of or selling the policy; that the
1704	financial institution is not obligated to provide benefits under
1705	the insurance contract; and, where appropriate, that the policy
1706	involves investment risk, including potential loss of principal.
1707	(c) All documents constituting policies of insurance shall
1708	be separate and shall not be combined with or be a part of other
1709	documents. A person may not include the expense of insurance
1710	premiums in a primary credit transaction without the express
1711	written consent of the customer.
1712	(d) A loan officer of a financial institution who is
1713	involved in the application, solicitation, or closing of a loan
1714	transaction may not solicit or sell insurance in connection with
1715	the same loan, but such loan officer may refer the loan customer
1716	to another insurance agent who is not involved in the
1717	application, solicitation, or closing of the same loan
1718	transaction. This paragraph does not apply to an agent located
1719	on premises having only a single person with lending authority,
1720	or to a broker or dealer registered under the Federal Securities
1721	Exchange Act of 1934 in connection with a margin loan secured by
1722	securities.
1723	(3) A person may not make an extension of credit or the
1724	sale of any product or service that is the equivalent to an
1725	extension of credit or lease or sale of property of any kind, or
1726	furnish any services or fix or vary the consideration for any of
1727	the foregoing, on the condition or requirement that the customer
1728	obtain insurance from that person, or a subsidiary or affiliate
1729	of that person, or a particular insurer, agent, or broker;
1730	however, this subsection does not prohibit any person from
1731	engaging in any activity that if done by a financial institution
1732	would not violate s. 106 of the Bank Holding Company Act
1733	Amendments of 1970, 12 U.S.C. s. 1972, as interpreted by the
1734	Board of Governors of the Federal Reserve System.
1735	(4) The department may investigate the affairs of any
1736	person to whom this section applies to determine whether such
1737	person has violated this section. If a violation of this section
1738	is found to have been committed knowingly, the person in
1739	violation shall be subject to the same procedures and penalties
1740	as provided in ss. 637.1036, 637.1037, 637.1038 and 637.1039.
1741	637.1035 Power of department.-The department may examine
1742	and investigate the affairs of every person involved in the
1743	business of insurance in this state in order to determine
1744	whether such person has been or is engaged in any unfair method
1745	of competition or in any unfair or deceptive act or practice
1746	prohibited by s. 637.1032, and shall each have the powers and
1747	duties specified in ss. 637.1036-637.1039 in connection
1748	therewith.
1749	637.1036 Defined practices; hearings, witnesses,
1750	appearances, production of books and service of process.-
1751	(1) Whenever the department has reason to believe that any
1752	person has engaged, or is engaging, in this state in any unfair
1753	method of competition or any unfair or deceptive act or practice
1754	as defined in s. 637.1033 or s. 637.1034 or is engaging in the
1755	business of insurance without being properly licensed as
1756	required by this chapter and that a proceeding by it in respect
1757	thereto would be to the interest of the public, it shall conduct
1758	or cause to have conducted a hearing in accordance with chapter
1759	120.
1760	(2) The department, a duly empowered hearing officer, or
1761	an administrative law judge shall, during the conduct of such
1762	hearing, have those powers enumerated in s. 120.569; however,
1763	the penalties for failure to comply with a subpoena or with an
1764	order directing discovery shall be limited to a fine not to
1765	exceed $1,000 per violation.
1766	(3) Statements of charges, notices, and orders under this
1767	act may be served by anyone duly authorized by the department,
1768	in the manner provided by law for service of process in civil
1769	actions or by certifying and mailing a copy thereof to the
1770	person affected by such statement, notice, order, or other
1771	process at his or her or its residence or principal office or
1772	place of business. The verified return by the person so serving
1773	such statement, notice, order, or other process, setting forth
1774	the manner of the service, shall be proof of the same, and the
1775	return postcard receipt for such statement, notice, order, or
1776	other process, certified and mailed as aforesaid, shall be proof
1777	of service of the same.
1778	637.1037 Cease and desist and penalty orders.-After the
1779	hearing provided in s. 637.1036, the department shall enter a
1780	final order in accordance with s. 120.569. If it is determined
1781	that the person charged has engaged in an unfair or deceptive
1782	act or practice or the unlawful transaction of insurance, the
1783	department shall also issue an order requiring the violator to
1784	cease and desist from engaging in such method of competition,
1785	act, or practice or the unlawful transaction of insurance.
1786	Further, if the act or practice is a violation of s. 637.1033 or
1787	s. 637.1034, the department may, at its discretion, order any
1788	one or more of the following:
1789	(1) Suspension or revocation of the person's certificate
1790	of authority, license, or eligibility for any certificate of
1791	authority or license, if he or she knew, or reasonably should
1792	have known, he or she was in violation of this chapter.
1793	(2) Such other relief as may be provided in this chapter.
1794	637.1038 Appeals from the department.-Any person subject
1795	to an order of the department under s. 637.1037 or s. 637.1039
1796	may obtain a review of such order by filing an appeal therefrom
1797	in accordance with the provisions and procedures for appeal from
1798	the orders of the department in general under s. 120.68.
1799	637.1039 Penalty for violation of cease and desist
1800	orders.-Any person who violates a cease and desist order of the
1801	department under s. 637.1037 while such order is in effect,
1802	after notice and hearing as provided in s. 637.1036, shall be
1803	subject, at the discretion of the department, to any one or more
1804	of the following:
1805	(1) A monetary penalty of not more than $50,000 as to all
1806	matters determined in such hearing.
1807	(2) Suspension or revocation of such person's certificate
1808	of authority, license, or eligibility to hold such certificate
1809	of authority or license.
1810	(3) Such other relief as may be provided in this chapter.
1811	637.1041 Rules.-
1812	(1) The department may, in accordance with chapter 120,
1813	adopt reasonable rules as are necessary or proper to identify
1814	specific methods of competition or acts or practices which are
1815	prohibited by s. 637.1033 or s. 637.1034, but the rules shall
1816	not enlarge upon or extend the provisions of ss. 637.1033 and
1817	637.1034.
1818	(2) The department shall, in accordance with chapter 120,
1819	adopt rules to protect members of the United States Armed Forces
1820	from dishonest or predatory insurance sales practices by
1821	insurers and insurance agents. The rules shall identify specific
1822	false, misleading, deceptive, or unfair methods of competition,
1823	acts, or practices which are prohibited by s. 637.1033 or s.
1824	637.1034. The rules shall be based upon model rules or model
1825	laws adopted by the National Association of Insurance
1826	Commissioners which identify certain insurance practices
1827	involving the solicitation or sale of insurance and annuities to
1828	members of the United States Armed Forces which are false,
1829	misleading, deceptive, or unfair.
1830	637.1042 Provisions of chapter additional to existing
1831	law.-The powers vested in the department by this chapter shall
1832	be additional to any other powers to enforce any penalties,
1833	fines, or forfeitures authorized by law.
1834	637.1043 Civil liability.-The provisions of this chapter
1835	are cumulative to rights under the general civil and common law,
1836	and no action of the department, shall abrogate such rights to
1837	damages or other relief in any court.
1838	637.10435 Policyholders Bill of Rights.-
1839	(1) The principles expressed in the following statements
1840	shall serve as standards to be followed by the department in
1841	exercising its powers and duties, in exercising administrative
1842	discretion, in dispensing administrative interpretations of the
1843	law, and in adopting rules:
1844	(a) Policyholders have the right to competitive pricing
1845	practices and marketing methods that enable them to determine
1846	the best value among comparable policies.
1847	(b) Policyholders have the right to obtain comprehensive
1848	coverage.
1849	(c) Policyholders have the right to insurance advertising
1850	and other selling approaches that provide accurate and balanced
1851	information on the benefits and limitations of a policy.
1852	(d) Policyholders have a right to an insurance company
1853	that is financially stable.
1854	(e) Policyholders have the right to be serviced by a
1855	competent, honest insurance agent or broker.
1856	(f) Policyholders have the right to a readable policy.
1857	(g) Policyholders have the right to an insurance company
1858	that provides an economic delivery of coverage and that tries to
1859	prevent losses.
1860	(h) Policyholders have the right to a balanced and
1861	positive regulation by the department.
1862	(2) This section shall not be construed as creating a
1863	civil cause of action by any individual policyholder against any
1864	individual insurer.
1865	637.1044 Privacy.-The department shall adopt rules
1866	consistent with other provisions of this chapter to govern the
1867	use of a consumer's nonpublic personal financial and health
1868	information. These rules must be based on, consistent with, and
1869	not more restrictive than the Privacy of Consumer Financial and
1870	Health Information Regulation, adopted September 26, 2000, by
1871	the National Association of Insurance Commissioners. In
1872	addition, these rules must be consistent with, and not more
1873	restrictive than, the standards contained in Title V of the
1874	Gramm-Leach-Bliley Act of 1999, Pub. L. No. 106-102.
1875	637.10445 Trade secret documents.-
1876	(1) If any person who is required to submit documents
1877	or other information to the department pursuant to this chapter
1878	or by rule or order of the department claims that such
1879	submission contains a trade secret, such person may file with
1880	the department a notice of trade secret as provided in this
1881	section. Failure to do so constitutes a waiver of any claim by
1882	such person that the document or information is a trade secret.
1883	(a) Each page of such document or specific portion of a
1884	document claimed to be a trade secret must be clearly marked
1885	"trade secret."
1886	(b) All material marked as a trade secret must be
1887	separated from all non-trade secret material and be submitted in
1888	a separate envelope clearly marked "trade secret."
1889	(c) In submitting a notice of trade secret to the
1890	department, the submitting party must include an affidavit
1891	certifying under oath to the truth of the following
1892	statements concerning all documents or information that are
1893	claimed to be trade secrets:
1894	1. [I consider/My company considers] this information a
1895	trade secret that has value and provides an advantage or an
1896	opportunity to obtain an advantage over those who do not know or
1897	use it.
1898	2. [I have/My company has] taken measures to prevent the
1899	disclosure of the information to anyone other than those who
1900	have been selected to have access for limited purposes, and [I
1901	intend/my company intends] to continue to take such measures.
1902	3. The information is not, and has not been, reasonably
1903	obtainable without [my/our] consent by other persons by use of
1904	legitimate means.
1905	4. The information is not publicly available elsewhere.
1906	(d) Any data submitted by a title insurance agent or title
1907	insurer pursuant to s. 637.1014 is presumed to be a trade
1908	secret under this section whether or not so designated.
1909	(2) If the department receives a public records request for
1910	a document or information that is marked and certified as a trade
1911	secret, the department shall promptly notify the person that
1912	certified the document as a trade secret. The notice shall
1913	inform such person that he or she or his or her company has 30
1914	days after receipt of such notice to file an action in circuit
1915	court seeking a determination whether the document in question
1916	contains trade secrets and an order barring public disclosure of
1917	the document. If that person or company files an action within
1918	30 days after receipt of notice of the public records request,
1919	the department may not release the documents pending the outcome
1920	of the legal action. The failure to file an action within 30
1921	days constitutes a waiver of any claim of confidentiality,
1922	and the department shall release the document as requested.
1923	(3) The department may disclose a trade secret, together
1924	with the claim that it is a trade secret, to an officer or
1925	employee of another governmental agency whose use of the trade
1926	secret is within the scope of his or her employment.
1927	637.1045 Financial institutions conducting title insurance
1928	transactions.-A financial institution, as defined in s.
1929	655.005(1)(g), (h), or (p), may conduct title insurance
1930	transactions only through Florida-licensed title insurance
1931	agents representing Florida-authorized title insurers.
1932	637.1046 Investigation by department or Division of
1933	Insurance Fraud; compliance; immunity; confidential information;
1934	reports to division; division investigator's power of arrest.-
1935	(1) For the purposes of this section, a person commits a
1936	"fraudulent insurance act" if the person knowingly and with
1937	intent to defraud presents, causes to be presented, or prepares
1938	with knowledge or belief that it will be presented, to or by a
1939	title insurer or any title insurance agent, any written
1940	statement as part of, or in support of, an application for the
1941	issuance of, or the rating of, any insurance policy, or a claim
1942	for payment or other benefit pursuant to any insurance policy,
1943	which the person knows to contain materially false information
1944	concerning any fact material thereto or if the person conceals,
1945	for the purpose of misleading another, information concerning
1946	any fact material thereto.
1947	(2) If, by its own inquiries or as a result of complaints,
1948	the department or its Division of Insurance Fraud has reason to
1949	believe that a person has engaged in, or is engaging in, a
1950	fraudulent insurance act, an act or practice that violates s.
1951	637.1033 or s. 817.234, or an act or practice punishable under
1952	s. 637.1008, it may administer oaths and affirmations, request
1953	the attendance of witnesses or proffering of matter, and collect
1954	evidence. The department shall not compel the attendance of any
1955	person or matter in any such investigation except pursuant to
1956	subsection (4).
1957	(3) If matter that the department or its division seeks to
1958	obtain by request is located outside the state, the person so
1959	requested may make it available to the division or its
1960	representative to examine the matter at the place where it is
1961	located. The division may designate representatives, including
1962	officials of the state in which the matter is located, to
1963	inspect the matter on its behalf, and it may respond to similar
1964	requests from officials of other states.
1965	(4)(a) The department or the division may request that an
1966	individual who refuses to comply with any such request be
1967	ordered by the circuit court to provide the testimony or matter.
1968	The court shall not order such compliance unless the department
1969	or the division has demonstrated to the satisfaction of the
1970	court that the testimony of the witness or the matter under
1971	request has a direct bearing on the department of a fraudulent
1972	insurance act, on a violation of s. 637.1033 or s. 817.234, or
1973	on an act or practice punishable under s. 637.1008 or is
1974	pertinent and necessary to further such investigation.
1975	(b) Except in a prosecution for perjury, an individual who
1976	complies with a court order to provide testimony or matter after
1977	asserting a privilege against self-incrimination to which the
1978	individual is entitled by law may not be subjected to a criminal
1979	proceeding or to a civil penalty with respect to the act
1980	concerning which the individual is required to testify or
1981	produce relevant matter.
1982	(c) In the absence of fraud or bad faith, a person is not
1983	subject to civil liability for libel, slander, or any other
1984	relevant tort by virtue of filing reports, without malice, or
1985	furnishing other information, without malice, required by this
1986	section or required by the department or division under the
1987	authority granted in this section, and no civil cause of action
1988	of any nature shall arise against such person:
1989	1. For any information relating to suspected fraudulent
1990	insurance acts or persons suspected of engaging in such acts
1991	furnished to or received from law enforcement officials, their
1992	agents, or employees;
1993	2. For any information relating to suspected fraudulent
1994	insurance acts or persons suspected of engaging in such acts
1995	furnished to or received from other persons subject to the
1996	provisions of this chapter;
1997	3. For any such information furnished in reports to the
1998	department, the division, the National Insurance Crime Bureau,
1999	the National Association of Insurance Commissioners, or any
2000	local, state, or federal enforcement officials or their agents
2001	or employees; or
2002	4. For other actions taken in cooperation with any of the
2003	agencies or individuals specified in this paragraph in the
2004	lawful investigation of suspected fraudulent insurance acts.
2005	(d) In addition to the immunity granted in paragraph (c),
2006	persons identified as designated employees or service providers
2007	to insurers whose responsibilities include the investigation and
2008	disposition of claims relating to suspected fraudulent insurance
2009	acts may share information relating to persons suspected of
2010	committing fraudulent insurance acts with other designated
2011	employees employed by the same or other insurers or third-party
2012	service providers designated by insurers whose responsibilities
2013	include the investigation and disposition of claims relating to
2014	fraudulent insurance acts, provided the department has been
2015	given written notice of the names and job titles of such
2016	designated employees and service providers prior to such
2017	designated employees and service providers sharing information.
2018	Unless the designated employees or service providers of the
2019	insurer act in bad faith or in reckless disregard for the rights
2020	of any insured, the insurer or its designated employees and
2021	service providers are not civilly liable for libel, slander, or
2022	any other relevant tort, and a civil action does not arise
2023	against the insurer or its designated employees and service
2024	providers:
2025	1. For any information related to suspected fraudulent
2026	insurance acts provided to an insurer; or
2027	2. For any information relating to suspected fraudulent
2028	insurance acts provided to the National Insurance Crime Bureau
2029	or the National Association of Insurance Commissioners.
2030
2031	However, the qualified immunity against civil liability
2032	conferred on any insurer or its designated employees and service
2033	providers shall be forfeited with respect to the exchange or
2034	publication of any defamatory information with third persons not
2035	expressly authorized by this paragraph to share in such
2036	information.
2037	(e) The Chief Financial Officer and any employee or agent
2038	of the department, when acting without malice and in the absence
2039	of fraud or bad faith, is not subject to civil liability for
2040	libel, slander, or any other relevant tort, and no civil cause
2041	of action of any nature exists against such person by virtue of
2042	the execution of official activities or duties of the department
2043	under this section or by virtue of the publication of any report
2044	or bulletin related to the official activities or duties of the
2045	department under this section.
2046	(f) This section does not abrogate or modify in any way
2047	any common-law or statutory privilege or immunity heretofore
2048	enjoyed by any person.
2049	(5) Any person, other than an insurer, agent, or other
2050	person licensed under this chapter, or an employee thereof,
2051	having knowledge or who believes that a fraudulent insurance act
2052	or any other act or practice which, upon conviction, constitutes
2053	a felony or a misdemeanor under this chapter, or under s.
2054	817.234, is being or has been committed may send to the Division
2055	of Insurance Fraud a report or information pertinent to such
2056	knowledge or belief and such additional information relative
2057	thereto as the department may request. Any professional
2058	practitioner licensed or regulated by the Department of Business
2059	and Professional Regulation, except as otherwise provided by
2060	law, any medical review committee as defined in s. 766.101, any
2061	title insurer, title insurance agent, or other person licensed
2062	under this chapter, or an employee thereof, having knowledge or
2063	who believes that a fraudulent insurance act or any other act or
2064	practice which, upon conviction, constitutes a felony or a
2065	misdemeanor under this chapter, or under s. 817.234, is being or
2066	has been committed shall send to the Division of Insurance Fraud
2067	a report or information pertinent to such knowledge or belief
2068	and such additional information relative thereto as the
2069	department may require. The Division of Insurance Fraud shall
2070	review such information or reports and select such information
2071	or reports as, in its judgment, may require further
2072	investigation. It shall then cause an independent examination of
2073	the facts surrounding such information or report to be made to
2074	determine the extent, if any, to which a fraudulent insurance
2075	act or any other act or practice which, upon conviction,
2076	constitutes a felony or a misdemeanor under this chapter, or
2077	under s. 817.234, is being committed. The Division of Insurance
2078	Fraud shall report any alleged violations of law which its
2079	investigations disclose to the appropriate licensing agency and
2080	state attorney or other prosecuting agency having jurisdiction
2081	with respect to any such violation, as provided in s. 637.302.
2082	If prosecution by the state attorney or other prosecuting agency
2083	having jurisdiction with respect to such violation is not begun
2084	within 60 days of the division's report, the state attorney or
2085	other prosecuting agency having jurisdiction with respect to
2086	such violation shall inform the division of the reasons for the
2087	lack of prosecution.
2088	(6) Division investigators may make arrests for criminal
2089	violations established as a result of investigations. Such
2090	investigators shall also be considered state law enforcement
2091	officers for all purposes and may execute arrest warrants and
2092	search warrants; serve subpoenas issued for the examination,
2093	investigation, and trial of all offenses; and arrest upon
2094	probable cause without warrant any person found in the act of
2095	violating any of the provisions of applicable laws.
2096	Investigators empowered to make arrests under this section shall
2097	be empowered to bear arms in the performance of their duties. In
2098	such a situation, the investigator must be certified in
2099	compliance with the provisions of s. 943.1395 or must meet the
2100	temporary employment or appointment exemption requirements of s.
2101	943.131 until certified.
2102	(7) It is unlawful for any person to resist an arrest
2103	authorized by this section or in any manner to interfere, either
2104	by abetting or assisting such resistance or otherwise
2105	interfering, with division investigators in the duties imposed
2106	upon them by law or department rule.
2107	637.1047 Insurer anti-fraud investigative units; reporting
2108	requirements; penalties for noncompliance.-
2109	(1)(a) Every insurer admitted to do business in this state
2110	who in the previous calendar year, at any time during that year,
2111	had $10 million or more in direct premiums written shall:
2112	1. Establish and maintain a unit or division within the
2113	company to investigate possible fraudulent claims by insureds;
2114	or
2115	2. Contract with others to investigate possible fraudulent
2116	claims by insureds.
2117	(b) An insurer subject to this subsection shall file with
2118	the Division of Insurance Fraud of the department on or before
2119	July 1, 1996, a detailed description of the unit or division
2120	established pursuant to subparagraph (a)1. or a copy of the
2121	contract specified by subparagraph (a)2.
2122	(2) Every insurer admitted to do business in this state,
2123	which in the previous calendar year had less than $10 million in
2124	direct premiums written, must adopt an anti-fraud plan and file
2125	it with the Division of Insurance Fraud of the department on or
2126	before July 1, 1996. An insurer may, in lieu of adopting and
2127	filing an anti-fraud plan, comply with the provisions of
2128	subsection (1).
2129	(3) Each insurers anti-fraud plans shall include:
2130	(a) A description of the insurer's procedures for
2131	detecting and investigating possible fraudulent insurance acts.
2132	(b) A description of the insurer's procedures for the
2133	mandatory reporting of possible fraudulent insurance acts to the
2134	Division of Insurance Fraud of the department.
2135	(c) A description of the insurer's plan for anti-fraud
2136	education and training of its claims adjusters or other
2137	personnel.
2138	(d) A written description or chart outlining the
2139	organizational arrangement of the insurer's anti-fraud personnel
2140	who are responsible for the investigation and reporting of
2141	possible fraudulent insurance acts.
2142	(4) Any insurer who obtains a certificate of authority
2143	after July 1, 1995, shall have 18 months in which to comply with
2144	the requirements of this section.
2145	(5) For purposes of this section, the term "unit or
2146	division" includes the assignment of fraud investigation to
2147	employees whose principal responsibilities are the investigation
2148	and disposition of claims. If an insurer creates a distinct unit
2149	or division, hires additional employees, or contracts with
2150	another entity to fulfill the requirements of this section, the
2151	additional cost incurred must be included as an administrative
2152	expense for ratemaking purposes.
2153	(6) If an insurer fails to timely submit a final
2154	acceptable anti-fraud plan or anti-fraud investigative unit
2155	description, fails to implement the provisions of a plan or an
2156	anti-fraud investigative unit description, or otherwise refuses
2157	to comply with the provisions of this section, the department,
2158	may:
2159	(a) Impose an administrative fine of not more than $2,000
2160	per day for such failure by an insurer to submit an acceptable
2161	anti-fraud plan or anti-fraud investigative unit description,
2162	until the department deems the insurer to be in compliance;
2163	(b) Impose an administrative fine for failure by an
2164	insurer to implement or follow the provisions of an anti-fraud
2165	plan or anti-fraud investigative unit description; or
2166	(c) Impose the provisions of both paragraphs (a) and (b).
2167	(7) The department may adopt rules to administer this
2168	section.
2169	637.1048 Anti-Fraud Reward Program; reporting of title
2170	insurance fraud.-
2171	(1) The Anti-Fraud Reward Program is hereby established
2172	within the department, to be funded from the Title Insurance
2173	Regulatory Trust Fund.
2174	(2) The department may pay rewards of up to $25,000 to
2175	persons providing information leading to the arrest and
2176	conviction of persons committing crimes investigated by the
2177	Division of Insurance Fraud arising from violations of s.
2178	440.105, s. 637.1008, s. 637.1033, s. 637.1046, or s. 817.234.
2179	(3) Only a single reward amount may be paid by the
2180	department for claims arising out of the same transaction or
2181	occurrence, regardless of the number of persons arrested and
2182	convicted and the number of persons submitting claims for the
2183	reward. The reward may be disbursed among more than one person
2184	in amounts determined by the department.
2185	(4) The department shall adopt rules which set forth the
2186	application and approval process, including the criteria against
2187	which claims shall be evaluated, the basis for determining
2188	specific reward amounts, and the manner in which rewards shall
2189	be disbursed. Applications for rewards authorized by this
2190	section must be made pursuant to rules established by the
2191	department.
2192	(5) Determinations by the department to grant or deny a
2193	reward under this section shall not be considered agency action
2194	subject to review under s. 120.569 or s. 120.57.
2195	637.1049 Disposition of revenues; criminal or forfeiture
2196	proceedings.-
2197	(1) The Division of Insurance Fraud of the Department of
2198	Financial Services may deposit revenues received as a result of
2199	criminal proceedings or forfeiture proceedings, other than
2200	revenues deposited into the Department of Financial Services's
2201	Federal Law Enforcement Trust Fund under s. 17.43, into the
2202	Title Insurance Regulatory Trust Fund. Moneys deposited pursuant
2203	to this section shall be separately accounted for and shall be
2204	used solely for the division to carry out its duties and
2205	responsibilities.
2206	(2) Moneys deposited into the Title Insurance Regulatory
2207	Trust Fund pursuant to this section shall be appropriated by the
2208	Legislature, pursuant to the provisions of chapter 216, for the
2209	sole purpose of enabling the division to carry out its duties
2210	and responsibilities.
2211	(3) Notwithstanding the provisions of s. 216.301 and
2212	pursuant to s. 216.351, any balance of moneys deposited into the
2213	Title Insurance Regulatory Trust Fund pursuant to this section
2214	remaining at the end of any fiscal year shall remain in the
2215	trust fund at the end of that year and shall be available for
2216	carrying out the duties and responsibilities of the division.
2217	Section 3. Part II of chapter 637, Florida Statutes,
2218	consisting of sections 637.2001, 637.2002, 637.2003, 637.20035,
2219	637.2004, 637.2005, 637.2006, 637.2007, 637.20073, 637.20075,
2220	637.2008, 637.2009, 637.2011, 637.2012, 637.2013, 637.2014,
2221	637.2015, 637.2016, 637.2017, 637.2018, 637.2019, 637.2021,
2222	637.2022, 637.2023, 637.2024, 637.2025, 637.2026, 637.2027,
2223	637.2028, 637.2029, 637.2031, 637.2032, 637.2033, 637.2034,
2224	637.2035, 637.2036, 637.2037, 637.2038, 637.2039, 637.2041,
2225	637.2042, 637.2043, 637.2046, 637.2047, 637.2048, 637.20485,
2226	637.2049, 637.20495, 637.2051, 637.2052, 637.2053, 637.2054,
2227	637.2055, 637.2056, 637.2057, 637.2058, 637.2059, 637.2061,
2228	637.2063, 637.2064, 637.2065, 637.2066, 637.2067, 637.2068,
2229	637.2069, 637.2071, 637.2072, 637.2073, 637.2074, 637.2075,
2230	637.2076, 637.2077, 637.2078, 637.2079, 637.2081, 637.2082,
2231	637.2083, 637.2084, 637.2085, 637.2086, 637.2087, 637.2088,
2232	637.2089, and 637.2091, is created and entitled "ADMINISTRATION
2233	OF TITLE INSURERS."
2234	Section 4. Sections 637.2001, 637.2002, 637.2003,
2235	637.20035, 637.2004, 637.2005, 637.2006, and 637.2007, Florida
2236	Statutes, are created to read:
2237	637.2001 Certificate of authority required.-
2238	(1) A person may not act as a title insurer, and a title
2239	insurer or its agents, attorneys, or representatives may not
2240	directly or indirectly transact title insurance, in this state
2241	except as authorized by a subsisting certificate of authority
2242	issued to the title insurer by the department, except as to such
2243	transactions as are expressly otherwise provided for in this
2244	chapter.
2245	(2) A title insurer may not, from offices or by personnel
2246	or facilities located in this state, solicit title insurance
2247	applications or otherwise transact title insurance in another
2248	state or country unless it holds a subsisting certificate of
2249	authority issued to it by the department authorizing it to
2250	transact the same kind or kinds of title insurance in this
2251	state.
2252	(3) This state hereby preempts the field of regulating
2253	title insurers and their agents and representatives; and a
2254	county, city, municipality, district, school district, or
2255	political subdivision may not require of any title insurer,
2256	title insurance agent, or representative regulated under this
2257	chapter any authorization, permit, or registration of any kind
2258	for conducting transactions lawful under the authority granted
2259	by the state under this chapter.
2260	(4)(a) Any person who acts as a title insurer, transacts
2261	title insurance, or otherwise engages in title insurance
2262	activities in this state without a certificate of authority in
2263	violation of this section commits a felony of the third degree,
2264	punishable as provided in s. 775.082, s. 775.083, or s. 775.084.
2265	(b) However, any person acting as a title insurer without
2266	a valid certificate of authority who violates this section
2267	commits insurance fraud, punishable as provided in this
2268	paragraph. If the amount of any insurance premium collected with
2269	respect to any violation of this section:
2270	1. Is less than $20,000, the offender commits a felony of
2271	the third degree, punishable as provided in s. 775.082, s.
2272	775.083, or s. 775.084, and the offender shall be sentenced to a
2273	minimum term of imprisonment of 1 year.
2274	2. Is $20,000 or more, but less than $100,000, the
2275	offender commits a felony of the second degree, punishable as
2276	provided in s. 775.082, s. 775.083, or s. 775.084, and the
2277	offender shall be sentenced to a minimum term of imprisonment of
2278	18 months.
2279	3. Is $100,000 or more, the offender commits a felony of
2280	the first degree, punishable as provided in s. 775.082, s.
2281	775.083, or s. 775.084, and the offender shall be sentenced to a
2282	minimum term of imprisonment of 2 years.
2283	637.2002 Exceptions, certificate of authority required.-A
2284	certificate of authority shall not be required of a title
2285	insurer with respect to:
2286	(1) Investigation, settlement, or litigation of claims
2287	under its policies lawfully written in this state, or
2288	liquidation of assets and liabilities of the insurer (other than
2289	collection of new premiums), all as resulting from its former
2290	authorized operations in this state.
2291	(2) Transactions involving a policy, subsequent to
2292	issuance thereof, covering only subjects of insurance not
2293	resident, located, or expressly to be performed in this state at
2294	the time of issuance, and lawfully solicited, written, or
2295	delivered outside this state.
2296	(3) Reinsurance, when transacted as authorized under s.
2297	637.2049.
2298	(4) Investment by a foreign insurer of its funds in real
2299	estate in this state or in securities secured thereby, if the
2300	foreign insurer complies with the laws of this state relating
2301	generally to foreign business corporations.
2302	637.2003 General eligibility of title insurers for
2303	certificate of authority.-To qualify for and hold authority to
2304	transact title insurance in this state, a title insurer must be
2305	otherwise in compliance with this chapter and with its charter
2306	powers and must be an incorporated stock insurer, an
2307	incorporated mutual insurer, or a reciprocal insurer, of the
2308	same general type as may be formed as a domestic insurer under
2309	this chapter; except that:
2310	(1) A title insurer may not be authorized to transact
2311	title insurance in this state which does not maintain reserves
2312	as required by part I of chapter 625 applicable to the kind or
2313	kinds of insurance transacted by such insurer, wherever
2314	transacted in the United States, or which transacts insurance in
2315	the United States on the assessment premium plan, stipulated
2316	premium plan, cooperative plan, or any similar plan.
2317	(2) A foreign or alien title insurer or exchange may not
2318	be authorized to transact title insurance in this state unless
2319	it is otherwise qualified therefor under this chapter and has
2320	operated satisfactorily for at least 3 years in its state or
2321	country of domicile; however, the department may waive the 3-
2322	year requirement if the foreign or alien insurer or exchange:
2323	(a) Has operated successfully and has capital and surplus
2324	of $5 million;
2325	(b) Is the wholly owned subsidiary of an insurer which is
2326	an authorized insurer in this state; or
2327	(c) Is the successor in interest through merger or
2328	consolidation of an authorized insurer.
2329	(3)(a) The department shall not grant or continue
2330	authority to transact title insurance in this state as to any
2331	title insurer the management, officers, or directors of which
2332	are found by it to be incompetent or untrustworthy; or so
2333	lacking in insurance company managerial experience as to make
2334	the proposed operation hazardous to the insurance-buying public;
2335	or so lacking in insurance experience, ability, and standing as
2336	to jeopardize the reasonable promise of successful operation; or
2337	which it has good reason to believe are affiliated directly or
2338	indirectly through ownership, control, reinsurance transactions,
2339	or other insurance or business relations, with any person or
2340	persons whose business operations are or have been marked, to
2341	the detriment of policyholders or stockholders or investors or
2342	creditors or of the public, by manipulation of assets, accounts,
2343	or reinsurance or by bad faith.
2344	(b) The department shall not grant or continue authority
2345	to transact title insurance in this state as to any title
2346	insurer if any person, including any subscriber, stockholder, or
2347	incorporator, who exercises or has the ability to exercise
2348	effective control of the insurer, or who influences or has the
2349	ability to influence the transaction of the business of the
2350	insurer, does not possess the financial standing and business
2351	experience for the successful operation of the insurer.
2352	(c) The department may deny, suspend, or revoke the
2353	authority to transact title insurance in this state of any title
2354	insurer if any person, including any subscriber, stockholder, or
2355	incorporator, who exercises or has the ability to exercise
2356	effective control of the insurer, or who influences or has the
2357	ability to influence the transaction of the business of the
2358	insurer, has been found guilty of, or has pleaded guilty or nolo
2359	contendere to, any felony or crime punishable by imprisonment of
2360	1 year or more under the law of the United States or any state
2361	thereof or under the law of any other country which involves
2362	moral turpitude, without regard to whether a judgment of
2363	conviction has been entered by the court having jurisdiction in
2364	such case. However, in the case of an insurer operating under a
2365	subsisting certificate of authority, the insurer shall remove
2366	any such person immediately upon discovery of the conditions set
2367	forth in this paragraph when applicable to such person or upon
2368	the order of the department, and the failure to so act by said
2369	insurer shall be grounds for revocation or suspension of the
2370	insurer's certificate of authority.
2371	(d) The department may deny, suspend, or revoke the
2372	authority of a title insurer to transact title insurance in this
2373	state if any person, including any subscriber, stockholder, or
2374	incorporator, who exercises or has the ability to exercise
2375	effective control of the insurer, or who influences or has the
2376	ability to influence the transaction of the business of the
2377	insurer, which person the department has good reason to believe
2378	is now or was in the past affiliated directly or indirectly,
2379	through ownership interest of 10 percent or more, control, or
2380	reinsurance transactions, with any business, corporation, or
2381	other entity that has been found guilty of or has pleaded guilty
2382	or nolo contendere to any felony or crime punishable by
2383	imprisonment for 1 year or more under the laws of the United
2384	States, any state, or any other country, regardless of
2385	adjudication. However, in the case of an insurer operating under
2386	a subsisting certificate of authority, the insurer shall
2387	immediately remove such person or immediately notify the
2388	department of such person upon discovery of the conditions set
2389	forth in this paragraph, either when applicable to such person
2390	or upon order of the department; the failure to remove such
2391	person, provide such notice, or comply with such order
2392	constitutes grounds for suspension or revocation of the
2393	insurer's certificate of authority.
2394	(4)(a) An authorized title insurer may not act as a
2395	fronting company for any unauthorized insurer which is not an
2396	approved reinsurer.
2397	(b) A "fronting company" is an authorized insurer which by
2398	reinsurance or otherwise generally transfers more than 50
2399	percent to one unauthorized insurer which does not meet the
2400	requirements of s. 637.604(3)(a), (b), or (c), or more than 75
2401	percent to two or more unauthorized insurers which do not meet
2402	the requirements of s. 637.604(3)(a), (b), or (c), of the entire
2403	risk of loss on all of the insurance written by it in this
2404	state, or on one or more lines of insurance, on all of the
2405	business produced through one or more agents or agencies, or on
2406	all of the business from a designated geographical territory,
2407	without obtaining the prior approval of the department.
2408	(c) The department may, in its discretion, approve a
2409	transfer of risk in excess of the limits in paragraph (b) upon
2410	presentation of evidence, satisfactory to the department, that
2411	the transfer would be in the best interests of the financial
2412	condition of the insurer and in the best interests of the
2413	policyholders.
2414	(5) A title insurer may not be authorized to transact
2415	title insurance in this state which, during the 3 years
2416	immediately preceding its application for a certificate of
2417	authority, has violated any of the insurance laws of this state
2418	and after being informed of such violation has failed to correct
2419	the same; except that, if all other requirements are met, the
2420	department may nevertheless issue a certificate of authority to
2421	such an insurer upon the filing by the insurer of a sworn
2422	statement of all such insurance so written in violation of law,
2423	and upon payment to the department of a sum of money as
2424	additional filing fee equivalent to all premium taxes and other
2425	state taxes and fees as would have been payable by the insurer
2426	if such insurance had been lawfully written by an authorized
2427	insurer under the laws of this state. This fee, when collected,
2428	shall be deposited to the credit of the Title Insurance
2429	Regulatory Trust Fund.
2430	(6) Nothing in this chapter shall be deemed to prohibit
2431	the granting and continuance of a certificate of authority to a
2432	domestic title insurer organized as a business trust, if the
2433	declaration of trust of such insurer was filed in the department
2434	of the Secretary of State prior to January 1, 1959, and if the
2435	insurer otherwise meets the applicable requirements of this
2436	chapter. Such an insurer may hereinafter in this chapter be
2437	referred to as a "business trust insurer."
2438	(7) For the purpose of satisfying the requirements of ss.
2439	637.2004 and 637.2007, the investment portfolio of an insurer
2440	applying for an initial certificate of authority to do business
2441	in this state shall value its bonds and stocks in accordance
2442	with the provisions of the latest edition of the publication
2443	"Purposes and Procedures Manual of the NAIC Securities Valuation
2444	Office" by the National Association of Insurance Commissioners,
2445	July 1, 2002, and subsequent amendments thereto, if the
2446	valuation methodology remains substantially unchanged.
2447	637.20035 Structure of title insurers.-Except as to
2448	domestic business trust title insurers as referred to in s.
2449	637.2003(6) authorized prior to October 1, 2010, a title insurer
2450	shall be a stock insurer.
2451	637.2004 Capital funds required; new insurers.-
2452	(1) To receive authority to transact title insurance, an
2453	insurer applying for its original certificate of authority in
2454	this state after the effective date of this section shall
2455	possess surplus as to policyholders not less than the greater of
2456	$2.5 million or 10 percent of the insurer's total liabilities;
2457	however, no insurer shall be required under this subsection to
2458	have surplus as to policyholders greater than $100 million.
2459	(2) The requirements of this section shall be based upon
2460	all the kinds of insurance actually transacted or to be
2461	transacted by the insurer in any and all areas in which it
2462	operates, whether or not only a portion of such kinds are to be
2463	transacted in this state.
2464	(3) As to surplus as to policyholders required for
2465	qualification to transact one or more kinds of insurance,
2466	domestic mutual insurers are governed by chapter 628, and
2467	domestic reciprocal insurers are governed by chapter 629.
2468	(4) For the purposes of this section, liabilities shall
2469	not include liabilities required under s. 625.041(4). For
2470	purposes of computing minimum surplus as to policyholders
2471	pursuant to s. 625.305(1), liabilities shall include liabilities
2472	required under s. 625.041(4).
2473	(5) The provisions of this section, as amended by this
2474	act, shall apply only to insurers applying for a certificate of
2475	authority on or after the effective date of this act.
2476	637.2005 Restrictions on insurers that are wholly owned
2477	subsidiaries of insurers to do business in state.-Effective
2478	December 31, 2010, and notwithstanding any other provision of
2479	law:
2480	(1) A new certificate of authority for the transaction of
2481	title insurance may not be issued to any insurer domiciled in
2482	this state that is a wholly owned subsidiary of an insurer
2483	authorized to do business in any other state.
2484	(2) The rate filings of any insurer domiciled in this
2485	state that is a wholly owned subsidiary of an insurer authorized
2486	to do business in any other state shall include information
2487	relating to the profits of the parent company of the insurer
2488	domiciled in this state.
2489	637.2006 Officers and directors of insolvent insurers.-Any
2490	person who was an officer or director of an insurer doing
2491	business in this state and who served in that capacity within
2492	the 2-year period prior to the date the insurer became
2493	insolvent, for any insolvency that occurs on or after July 1,
2494	2002, may not thereafter serve as an officer or director of an
2495	insurer authorized in this state unless the officer or director
2496	demonstrates that his or her personal actions or omissions were
2497	not a significant contributing cause to the insolvency.
2498	637.2007 Surplus as to policyholders required; new and
2499	existing insurers.-
2500	(1) To maintain a certificate of authority to transact
2501	title insurance, an insurer in this state shall at all times
2502	maintain surplus as to policyholders not less than the greater
2503	of $1.5 million or 10 percent of the insurer's total
2504	liabilities.
2505	(2) For purposes of this section, liabilities shall not
2506	include liabilities required under s. 625.041(4). For purposes
2507	of computing minimum surplus as to policyholders pursuant to s.
2508	625.305(1), liabilities shall include liabilities required under
2509	s. 625.041(4).
2510	(3) An insurer may not be required under this section to
2511	have surplus as to policyholders greater than $100 million.
2512	Section 5. Section 625.330, Florida Statutes, is
2513	transferred, renumbered as section 627.20073, Florida Statutes,
2514	and amended to read:
2515	637.20073 625.330 Special investments by title insurer.-
2516	(1) In addition to other investments eligible under this
2517	part, a title insurer may invest and have invested an amount not
2518	exceeding the greater of $300,000 or 50 percent of that part of
2519	its surplus as to policyholders which exceeds the minimum
2520	surplus required by s. 637.2007 624.408 in its abstract plant
2521	and equipment, in loans secured by mortgages on abstract plants
2522	and equipment, and, with the consent of the office, in stocks of
2523	abstract companies. If the insurer transacts kinds of insurance
2524	in addition to title insurance, for the purposes of this section
2525	its paid-in capital stock shall be prorated between title
2526	insurance and such other insurances upon the basis of the
2527	reserves maintained by the insurer for the various kinds of
2528	insurance; but the capital so assigned to title insurance may
2529	not shall in any no event be less than $100,000.
2530	(2) Subsection (1) does not apply to a business trust
2531	insurer. Such an insurer may invest and have invested not
2532	exceeding the greater of $300,000 or 50 percent of its net trust
2533	fund in excess of the reserve provided for under s. 637.20075
2534	625.111 in abstract plants, stock in abstract companies, or
2535	corporations controlled by the business trust and created for
2536	developing and servicing abstract plants.
2537	(3) Investments authorized by this section shall not be
2538	credited against the insurer's required unearned premium or
2539	guaranty fund reserve provided for under s. 637.20075 625.111.
2540	Section 6. Section 625.111, Florida Statutes, is
2541	transferred, renumbered as section 637.20075, Florida Statutes,
2542	and amended to read:
2543	637.20075 625.111 Title insurance reserve.-
2544	(1) In addition to an adequate reserve as to outstanding
2545	losses relating to known claims, as required under s. 625.041, a
2546	title insurer shall establish, segregate, and maintain a
2547	guaranty fund or unearned premium reserve as provided in this
2548	section. The sums required under this section to be reserved for
2549	unearned premiums on title guarantees and policies at all times
2550	and for all purposes shall be considered and constitute unearned
2551	portions of the original premiums and shall be charged as a
2552	reserve liability of such insurer in determining its financial
2553	condition. While such sums are so reserved, they shall be
2554	withdrawn from the use of the insurer for its general purposes,
2555	impressed with a trust in favor of the holders of title
2556	guarantees and policies, and held available for reinsurance of
2557	the title guarantees and policies in the event of the insolvency
2558	of the insurer. Nothing contained in this section precludes
2559	shall preclude such insurer from investing such reserve in
2560	investments authorized by law for such an insurer and the income
2561	from such invested reserve shall be included in the general
2562	income of the insurer to be used by such insurer for any lawful
2563	purpose.
2564	(2)(1) For unearned premium reserves established on or
2565	after July 1, 1999, such unearned premium reserve shall consist
2566	of not less than an amount equal to the sum of:
2567	(a) A reserve with respect to unearned premiums for
2568	policies written or title liability assumed in reinsurance
2569	before July 1, 1999, equal to the reserve established on June
2570	30, 1999, for those unearned premiums with such reserve being
2571	subsequently released as provided in subsection (3)(2). For
2572	domestic title insurers subject to this section, such amounts
2573	shall be calculated in accordance with provisions of law of this
2574	state in effect at the time the associated premiums were written
2575	or assumed and as amended prior to July 1, 1999.
2576	(b) A total amount equal to 30 cents for each $1,000 of
2577	net retained liability for policies written or title liability
2578	assumed in reinsurance on or after July 1, 1999, with such
2579	reserve being subsequently released as provided in subsection
2580	(3)(2). For the purpose of calculating this reserve, the total
2581	of the net retained liability for all simultaneous issue
2582	policies covering a single risk shall be equal to the liability
2583	for the policy with the highest limit covering that single risk,
2584	net of any liability ceded in reinsurance.
2585	(c) An additional amount, if deemed necessary by a
2586	qualified actuary, which shall be subsequently released as
2587	provided in subsection (3)(2). Using financial results as of
2588	December 31 of each year, all domestic title insurers shall
2589	obtain a Statement of Actuarial Opinion from a qualified actuary
2590	regarding the insurer's loss and loss adjustment expense
2591	reserves, including reserves for known claims, adverse
2592	development on known claims, incurred but not reported claims,
2593	and unallocated loss adjustment expenses. The actuarial opinion
2594	shall conform to the annual statement instructions for title
2595	insurers adopted by the National Association of Insurance
2596	Commissioners and shall include the actuary's professional
2597	opinion of the insurer's reserves as of the date of the annual
2598	statement. If the amount of the reserve stated in the opinion
2599	and displayed in Schedule P of the annual statement for that
2600	reporting date is greater than the sum of the known claim
2601	reserve and unearned premium reserve as calculated under this
2602	section, as of the same reporting date and including any
2603	previous actuarial provisions added at earlier dates, the
2604	insurer shall add to the insurer's unearned premium reserve an
2605	actuarial amount equal to the reserve shown in the actuarial
2606	opinion, minus the known claim reserve and the unearned premium
2607	reserve, as of the current reporting date and calculated in
2608	accordance with this section, but in no event calculated as of
2609	any date prior to December 31, 1999. The comparison shall be
2610	made using that line on Schedule P displaying the Total Net Loss
2611	and Loss Adjustment Expense which is comprised of the Known
2612	Claim Reserve, and any associated Adverse Development Reserve,
2613	the reserve for Incurred But Not Reported Losses, and
2614	Unallocated Loss Adjustment Expenses.
2615	(3)(2)(a) With respect to the reserve established in
2616	accordance with paragraph (2)(1)(a), the domestic title insurer
2617	shall release the reserve over a period of 20 subsequent years
2618	as provided in this paragraph. The insurer shall release 30
2619	percent of the initial aggregate sum during 1999, with one
2620	quarter of that amount being released on March 31, June 30,
2621	September 30, and December 31, 1999, with the March 31 and June
2622	30 releases to be retroactive and reflected on the September 30
2623	financial statements. Thereafter, the insurer shall release, on
2624	the same quarterly basis as specified for reserves released
2625	during 1999, a percentage of the initial aggregate sum as
2626	follows: 15 percent during calendar year 2000, 10 percent during
2627	each of calendar years 2001 and 2002, 5 percent during each of
2628	calendar years 2003 and 2004, 3 percent during each of calendar
2629	years 2005 and 2006, 2 percent during each of calendar years
2630	2007-2013, and 1 percent during each of calendar years 2014-
2631	2018.
2632	(b) With respect to reserves established in accordance
2633	with paragraph (2)(1)(b), the unearned premium for policies
2634	written or title liability assumed during a particular calendar
2635	year shall be earned, and released from reserve, over a period
2636	of 20 subsequent years as provided in this paragraph. The
2637	insurer shall release 30 percent of the initial sum during the
2638	year next succeeding the year the premium was written or
2639	assumed, with one quarter of that amount being released on March
2640	31, June 30, September 30, and December 31 of such year.
2641	Thereafter, the insurer shall release, on the same quarterly
2642	basis as specified for reserves released during the year first
2643	succeeding the year the premium was written or assumed, a
2644	percentage of the initial sum as follows: 15 percent during the
2645	next succeeding year, 10 percent during each of the next
2646	succeeding 2 years, 5 percent during each of the next succeeding
2647	2 years, 3 percent during each of the next succeeding 2 years, 2
2648	percent during each of the next succeeding 7 years, and 1
2649	percent during each of the next succeeding 5 years.
2650	(c) With respect to reserves established in accordance
2651	with paragraph (2)(1)(c), any additional amount established in
2652	any calendar year shall be released in the years subsequent to
2653	its establishment as provided in paragraph (b), with the timing
2654	and percentage of releases being in all respects identical to
2655	those of unearned premium reserves that are calculated as
2656	provided in paragraph (b) and established with regard to
2657	premiums written or liability assumed in reinsurance in the same
2658	year as the year in which any additional amount was originally
2659	established.
2660	(4)(3) At any reporting date, the amount of the required
2661	releases of existing unearned premium reserves under subsection
2662	(3)(2) shall be calculated and deducted from the total unearned
2663	premium reserve before any additional amount is established for
2664	the current calendar year in accordance with the provisions of
2665	paragraph (2)(1)(c).
2666	(5)(4) As used in this section:
2667	(a) "Net retained liability" means the total liability
2668	retained by a title insurer for a single risk, after taking into
2669	account the deduction for ceded liability, if any.
2670	(b) "Qualified actuary" means a person who is, as detailed
2671	in the National Association of Insurance Commissioners' Annual
2672	Statement Instructions:
2673	1. A member in good standing of the Casualty Actuarial
2674	Society;
2675	2. A member in good standing of the American Academy of
2676	Actuaries who has been approved as qualified for signing
2677	casualty loss reserve opinions by the Casualty Practice Council
2678	of the American Academy of Actuaries; or
2679	3. A person who otherwise has competency in loss reserve
2680	evaluation as demonstrated to the satisfaction of the insurance
2681	regulatory official of the domiciliary state. In such case, at
2682	least 90 days prior to the filing of its annual statement, the
2683	insurer must request approval that the person be deemed
2684	qualified and that request must be approved or denied. The
2685	request must include the National Association of Insurance
2686	Commissioners' Biographical Form and a list of all loss reserve
2687	opinions issued in the last 3 years by this person.
2688	(c) "Single risk" means the insured amount of any title
2689	insurance policy, except that where two or more title insurance
2690	policies are issued simultaneously covering different estates in
2691	the same real property, "single risk" means the sum of the
2692	insured amounts of all such title insurance policies. Any title
2693	insurance policy insuring a mortgage interest, a claim payment
2694	under which reduces the insured amount of a fee or leasehold
2695	title insurance policy, shall be excluded in computing the
2696	amount of a single risk to the extent that the insured amount of
2697	the mortgage title insurance policy does not exceed the insured
2698	amount of the fee or leasehold title insurance policy.
2699	Section 7. Sections 637.2008, 637.2009, 637.2011,
2700	637.2012, 637.2013, 637.2014, 637.2015, 637.2016, 637.2017,
2701	637.2018, 637.2019, 637.2021, 637.2022, 637.2023, 637.2024,
2702	637.2025, 637.2026, 637.2027, 637.2028, 637.2029, 637.2031,
2703	637.2032, 637.2033, 637.2034, 637.2035, 637.2036, 637.2037,
2704	637.2038, 637.2039, 637.2041, 637.2042, 637.2043, 637.2046,
2705	637.2047, and 637.2048, Florida Statutes, are created to read:
2706	637.2008 Premiums written; restrictions.-
2707	(1) Whenever a title insurer's ratio of actual or
2708	projected annual written premiums as adjusted in accordance with
2709	subsection (4) to current or projected surplus as to
2710	policyholders as adjusted in accordance with subsection (6)
2711	exceeds 10 to 1 for gross written premiums or exceeds 4 to 1 for
2712	net written premiums, the department shall suspend the insurer's
2713	certificate of authority or establish by order maximum gross or
2714	net annual premiums to be written by the insurer consistent with
2715	maintaining the ratios specified herein unless the insurer
2716	demonstrates to the department's satisfaction that exceeding the
2717	ratios of this section does not endanger the financial condition
2718	of the insurer or endanger the interests of the insurer's
2719	policyholders.
2720	(2) Projected annual net or gross premiums shall be based
2721	on the actual writings to date for the title insurer's current
2722	calendar year or the insurer's writings for the previous
2723	calendar year or both. Ratios shall be computed on an annualized
2724	basis.
2725	(3) For the purposes of this section, gross premiums
2726	written means direct premiums written and reinsurance assumed.
2727	(4) For the purposes of this section, for each calendar
2728	year premiums shall be calculated as the product of the actual
2729	or projected premiums and 1.00.
2730	637.2009 Deposit requirement; domestic title insurers and
2731	foreign title insurers.-
2732	(1) As to domestic title insurers, the department shall
2733	not issue or permit to exist a certificate of authority unless
2734	such insurer has deposited and maintains deposited in trust for
2735	the protection of the insurer's policyholders or its
2736	policyholders and creditors with the department securities
2737	eligible for such deposit under s. 625.52, having at all times a
2738	value of not less than $100,000.
2739	(2) As to foreign title insurers, the department, upon
2740	issuing or permitting to exist a certificate of authority, may
2741	require for good cause a deposit and maintenance of the deposit
2742	in trust for the protection of the insured's policyholders or
2743	its policyholders and creditors with the department securities
2744	eligible for such deposit under s. 625.52, having at all times a
2745	value of not less than $100,000 A foreign insurer with surplus
2746	as to policyholders of more than $10 million according to its
2747	latest annual statement shall not be required to make a deposit
2748	under this subsection.
2749	(3) Whenever the department determines that the financial
2750	condition of a title insurer has deteriorated or that the
2751	policyholders' best interests are not being preserved by the
2752	activities of an insurer, the department may require such
2753	insurer to deposit and maintain deposited in trust with the
2754	department for the protection of the insurer's policyholders or
2755	its policyholders and creditors, for such time as the department
2756	deems necessary, securities eligible for such deposit under s.
2757	625.52, having a market value of not less than the amount which
2758	the department determines is necessary, which amount shall be
2759	not less than $100,000, or more than 25 percent of the insurer's
2760	obligations in this state, as determined from the latest annual
2761	financial statement of the insured. The deposit required under
2762	this subsection shall not exceed $2 million and is in addition
2763	to any other deposits required of an insurer pursuant to
2764	subsections (1) and (2) or any other provisions of this chapter.
2765	(4) All such deposits in this state are subject to the
2766	applicable provisions of part III of chapter 625.
2767	637.2011 Deposit of alien insurers.-
2768	(1) An alien title insurer may not transact insurance in
2769	this state unless it has and maintains within the United States
2770	as trust deposits with public officials having supervision over
2771	insurers, or with trustees, public depositories, or trust
2772	institutions approved by the department, assets available for
2773	discharge of its United States insurance obligations, which
2774	assets shall be in amount not less than the outstanding reserves
2775	and other liabilities of the insurer arising out of its
2776	insurance transactions in the United States together with the
2777	amount of surplus as to policyholders required by s. 637.2007 of
2778	a domestic stock insurer transacting like kinds of insurance.
2779	(2) Any such deposit made in this state shall be held for
2780	the protection of the insurer's policyholders or policyholders
2781	and creditors in the United States and shall be subject to the
2782	applicable provisions of part III of chapter 625 and chapter
2783	630.
2784	637.2012 Application for certificate of authority.-
2785	(1) To apply for a certificate of authority, a title
2786	insurer shall file its application therefor with the department,
2787	upon a form adopted by the department and furnished by the
2788	department, showing its name; location of its home office and,
2789	if an alien insurer, its principal office in the United States;
2790	kinds of insurance to be transacted; state or country of
2791	domicile; and such additional information as the department
2792	reasonably requires, together with the following documents:
2793	(a) One copy of its corporate charter, articles of
2794	incorporation, existing and proposed nonfacultative reinsurance
2795	contracts, declaration of trust, or other charter documents,
2796	with all amendments thereto, certified by the public official
2797	with whom the originals are on file in the state or country of
2798	domicile.
2799	(b) If a mutual insurer, a copy of its bylaws, as amended,
2800	certified by its secretary or other officer having custody
2801	thereof.
2802	(c) If a foreign or alien reciprocal insurer, a copy of
2803	the power of attorney of its attorney in fact and of its
2804	subscribers' agreement, if any, certified by the attorney in
2805	fact; and, if a domestic reciprocal insurer, the declaration
2806	provided for in s. 629.081.
2807	(d) A copy of its financial statement as of December 31
2808	next preceding, containing information generally included in
2809	insurer financial statements prepared in accordance with
2810	generally accepted insurance accounting principles and practices
2811	and in a form generally utilized by insurers for financial
2812	statements, sworn to by at least two executive officers of the
2813	insurer, or certified by the public official having supervision
2814	of insurance in the insurer's state of domicile or of entry into
2815	the United States. To facilitate uniformity in financial
2816	statements, the department may by rule adopt the form for
2817	financial statements approved by the National Association of
2818	Insurance Commissioners in 2002, and may adopt subsequent
2819	amendments thereto if the form remains substantially consistent.
2820	(e) Supplemental quarterly financial statements for each
2821	calendar quarter since the beginning of the year of its
2822	application for the certificate of authority, sworn to by at
2823	least two of its executive officers. To facilitate uniformity in
2824	financial statements, the department may by rule adopt the form
2825	for quarterly financial statements approved by the National
2826	Association of Insurance Commissioners in 2002, and may adopt
2827	subsequent amendments thereto if the form remains substantially
2828	consistent.
2829	(f) If a foreign or alien insurer, a copy of the report of
2830	the most recent examination of the insurer certified by the
2831	public official having supervision of insurance in its state of
2832	domicile or of entry into the United States. The end of the most
2833	recent year covered by the examination must be within the 3-year
2834	period preceding the date of application. In lieu of the
2835	certified examination report, the department may accept an
2836	audited certified public accountant's report prepared on a basis
2837	consistent with the insurance laws of the insurer's state of
2838	domicile, certified by the public official having supervision of
2839	insurance in its state of domicile or of entry into the United
2840	States.
2841	(g) If a foreign or alien insurer, a certificate of
2842	compliance from the public official having supervision of
2843	insurance in its state or country of domicile showing that it is
2844	duly organized and authorized to transact insurance therein and
2845	the kinds of insurance it is so authorized to transact.
2846	(h) If a foreign or alien insurer, a certificate of the
2847	public official having custody of any deposit maintained by the
2848	insurer in another state in lieu of a deposit or part thereof
2849	required in this state under s. 637.2009 or s. 637.2011, showing
2850	the amount of such deposit and the assets or securities of which
2851	comprised.
2852	(i) If an alien insurer, a copy of the appointment and
2853	authority of its United States manager, certified by its officer
2854	having custody of its records.
2855	(2) The application shall be accompanied by the applicable
2856	fees and license tax as specified in s. 637.2031.
2857	637.2013 Redomestication.-The department shall adopt rules
2858	establishing procedures and forms for a foreign title insurer to
2859	apply for a certificate of authority as a domestic title
2860	insurer.
2861	637.2014 Issuance or refusal of authority.-The fee for
2862	filing application for a certificate of authority shall not be
2863	subject to refund. The department shall issue to the applicant
2864	title insurer a proper certificate of authority if it finds that
2865	the insurer has met the requirements of this chapter, exclusive
2866	of the requirements relative to the filing and approval of an
2867	insurer's policy forms, riders, endorsements, applications, and
2868	rates. If it does not so find, the department shall issue its
2869	order refusing the certificate. The certificate, if issued,
2870	shall specify the kind or kinds and line or lines of insurance
2871	the insurer is authorized to transact in this state. The
2872	issuance of a certificate of authority does not signify that an
2873	insurer has met the requirements of this chapter relative to the
2874	filing and approval of an insurer's policy forms, riders,
2875	endorsements, applications, and rates which may be required
2876	prior to an insurer actually writing any premiums.
2877	637.2015 Ownership of certificate of authority; return.-
2878	Although issued to the insurer, the certificate of authority is
2879	at all times the property of this state. Upon any expiration,
2880	suspension, or termination thereof, the insurer shall promptly
2881	deliver the certificate of authority to the department.
2882	637.2016 Continuance, expiration, reinstatement, and
2883	amendment of certificate of authority.-
2884	(1) A certificate of authority issued under this chapter
2885	shall continue in force as long as the insurer is entitled
2886	thereto under this chapter and until suspended, revoked, or
2887	terminated at the request of the insurer; subject, however, to
2888	continuance of the certificate by the insurer each year by:
2889	(a) Payment prior to June 1 of the annual license tax
2890	provided for in s. 637.2031(3);
2891	(b) Due filing by the insurer of its annual statement for
2892	the calendar year preceding as required under s. 637.2024; and
2893	(c) Payment by the insurer of applicable taxes with
2894	respect to the preceding calendar year as required under this
2895	chapter.
2896	(2) If not so continued by the insurer, its certificate of
2897	authority shall expire at midnight on the May 31 next following
2898	such failure of the insurer so to continue it in force. The
2899	department shall promptly notify the insurer of the occurrence
2900	of any failure resulting in impending expiration of its
2901	certificate of authority.
2902	(3) The department may, in its discretion, reinstate a
2903	certificate of authority which the insurer has inadvertently
2904	permitted to expire, after the insurer has fully cured all its
2905	failures which resulted in the expiration, and upon payment by
2906	the insurer of the fee for reinstatement, in the amount provided
2907	in s. 637.2031(1)(b). Otherwise, the insurer shall be granted
2908	another certificate of authority only after filing application
2909	therefor and meeting all other requirements as for an original
2910	certificate of authority in this state.
2911	(4) The department may amend a certificate of authority at
2912	any time to accord with changes in the insurer's charter or
2913	insuring powers.
2914	637.2017 Suspension, revocation of certificate of
2915	authority for violations and special grounds.-
2916	(1) The department shall suspend or revoke a title
2917	insurer's certificate of authority if it finds that the insurer:
2918	(a) Is in unsound financial condition.
2919	(b) Is using such methods and practices in the conduct of
2920	its business as to render its further transaction of insurance
2921	in this state hazardous or injurious to its policyholders or to
2922	the public.
2923	(c) Has failed to pay any final judgment rendered against
2924	it in this state within 60 days after the judgment became final.
2925	(d) No longer meets the requirements for the authority
2926	originally granted.
2927	(2) The department may, in its discretion, suspend or
2928	revoke the certificate of authority of an insurer if it finds
2929	that the insurer:
2930	(a) Has violated any lawful order or rule of the
2931	department or any provision of this chapter.
2932	(b) Has refused to be examined or to produce its accounts,
2933	records, and files for examination, or if any of its officers
2934	have refused to give information with respect to its affairs or
2935	to perform any other legal obligation as to such examination,
2936	when required by the department.
2937	(c) Has for any line, class, or combination thereof, with
2938	such frequency as to indicate its general business practice in
2939	this state, without just cause refused to pay proper claims
2940	arising under its policies, whether any such claim is in favor
2941	of an insured or is in favor of a third person with respect to
2942	the liability of an insured to such third person, or without
2943	just cause compels such insureds or claimants to accept less
2944	than the amount due them or to employ attorneys or to bring suit
2945	against the insurer or such an insured to secure full payment or
2946	settlement of such claims.
2947	(d) Is affiliated with and under the same general
2948	management or interlocking directorate or ownership as another
2949	insurer which transacts direct insurance in this state without
2950	having a certificate of authority therefor, except as permitted
2951	as to surplus lines insurers under part VIII of chapter 626.
2952	(e) Has been convicted of, or entered a plea of guilty or
2953	nolo contendere to, a felony relating to the transaction of
2954	insurance, in this state or in any other state, without regard
2955	to whether adjudication was withheld.
2956	(f) Has a ratio of net premiums written to surplus as to
2957	policyholders that exceeds 4 to 1, and the department has reason
2958	to believe that the financial condition of the insurer endangers
2959	the interests of the policyholders. The ratio of net premiums
2960	written to surplus as to policyholders shall be on an annualized
2961	actual or projected basis. The ratio shall be based on the
2962	insurer's current calendar year activities and experience to
2963	date or the insurer's previous calendar year activities and
2964	experience, or both, and shall be calculated to represent a 12-
2965	month period. However, the provisions of this paragraph do not
2966	apply to any insurance or insurer exempted from s. 637.2008.
2967	(g) Is under suspension or revocation in another state.
2968	(3) The insolvency or impairment of an insurer constitutes
2969	an immediate serious danger to the public health, safety, or
2970	welfare; and the department may, at its discretion, without
2971	prior notice and the opportunity for hearing immediately suspend
2972	the certificate of authority of an insurer upon a determination
2973	that:
2974	(a) The insurer is impaired or insolvent; or
2975	(b) Receivership, conservatorship, rehabilitation, or
2976	other delinquency proceedings have been initiated against the
2977	insurer by the public insurance supervisory official of any
2978	state.
2979	637.2018 Order, notice of suspension or revocation of
2980	certificate of authority; effect; publication.-
2981	(1) Suspension or revocation of a title insurer's
2982	certificate of authority shall be by the order of the
2983	department. The department shall promptly also give notice of
2984	such suspension or revocation to the insurer's agents in this
2985	state of record. The insurer shall not solicit or write any new
2986	coverages in this state during the period of any such suspension
2987	and may renew coverages only upon a finding by the department
2988	that the insurer is capable of servicing the renewal coverage.
2989	The insurer shall not solicit or write any new or renewal
2990	coverages after any such revocation.
2991	(2) In its discretion, the department may cause notice of
2992	any such suspension or revocation to be published in one or more
2993	newspapers of general circulation published in this state.
2994	637.2019 Duration of suspension; insurer's obligations
2995	during suspension period; reinstatement.-
2996	(1) Suspension of a title insurer's certificate of
2997	authority shall be for:
2998	(a) A fixed period of time not to exceed 2 years; or
2999	(b) Until the occurrence of a specific event necessary for
3000	remedying the reasons for suspension.
3001
3002	Such suspension may be modified, rescinded, or reversed.
3003	(2) During the period of suspension, the insurer shall
3004	file with the department all documents and information and pay
3005	all license fees and taxes as required under this chapter as if
3006	the certificate had continued in full force.
3007	(3) If the suspension of the certificate of authority is
3008	for a fixed period of time and the certificate of authority has
3009	not been otherwise terminated, upon expiration of the suspension
3010	period the insurer's certificate of authority shall be
3011	reinstated unless the department finds that the insurer is not
3012	in compliance with the requirements of this chapter. The
3013	department shall promptly notify the insurer of such
3014	reinstatement, and the insurer shall not consider its
3015	certificate of authority reinstated until so notified by the
3016	department. If not reinstated, the certificate of authority
3017	shall be deemed to have expired as of the end of the suspension
3018	period or upon failure of the insurer to continue the
3019	certificate during the suspension period in accordance with
3020	subsection (2), whichever event first occurs.
3021	(4) If the suspension of the certificate of authority was
3022	until the occurrence of a specific event or events and the
3023	certificate of authority has not been otherwise terminated, upon
3024	the presentation of evidence satisfactory to the department that
3025	the specific event or events have occurred, the insurer's
3026	certificate of authority shall be reinstated unless the
3027	department finds that the insurer is otherwise not in compliance
3028	with the requirements of this chapter. The department shall
3029	promptly notify the insurer of such reinstatement, and the
3030	insurer shall not consider its certificate of authority
3031	reinstated until so notified by the department. If satisfactory
3032	evidence as to the occurrence of the specific event or events
3033	has not been presented to the department within 2 years of the
3034	date of such suspension, the certificate of authority shall be
3035	deemed to have expired as of 2 years from the date of suspension
3036	or upon failure of the insurer to continue the certificate
3037	during the suspension period in accordance with subsection (2),
3038	whichever first occurs.
3039	(5) Upon reinstatement of the insurer's certificate of
3040	authority, the authority of its agents in this state to
3041	represent the insurer shall likewise reinstate. The department
3042	shall promptly notify the insurer of such reinstatement.
3043	637.2021 Administrative fine in lieu of suspension or
3044	revocation.-
3045	(1) If the department finds that one or more grounds exist
3046	for the discretionary revocation or suspension of a certificate
3047	of authority issued under this chapter, the department may, in
3048	lieu of such revocation or suspension, impose a fine upon the
3049	title insurer.
3050	(2) With respect to any nonwillful violation, such fine
3051	shall not exceed $2,500 per violation. In no event shall such
3052	fine exceed an aggregate amount of $10,000 for all nonwillful
3053	violations arising out of the same action. When an insurer
3054	discovers a nonwillful violation, the insurer shall correct the
3055	violation and, if restitution is due, make restitution to all
3056	affected persons. Such restitution shall include interest at 12
3057	percent per year from either the date of the violation or the
3058	date of inception of the affected person's policy, at the
3059	insurer's option. The restitution may be a credit against future
3060	premiums due provided that the interest shall accumulate until
3061	the premiums are due. If the amount of restitution due to any
3062	person is $50 or more and the insurer wishes to credit it
3063	against future premiums, it shall notify such person that she or
3064	he may receive a check instead of a credit. If the credit is on
3065	a policy which is not renewed, the insurer shall pay the
3066	restitution to the person to whom it is due.
3067	(3) With respect to any knowing and willful violation of a
3068	lawful order or rule of the department or a provision of this
3069	chapter, the department may impose a fine upon the insurer in an
3070	amount not to exceed $20,000 for each such violation. In no
3071	event shall such fine exceed an aggregate amount of $100,000 for
3072	all knowing and willful violations arising out of the same
3073	action. In addition to such fines, such insurer shall make
3074	restitution when due in accordance with the provisions of
3075	subsection (2).
3076	(4) The failure of an insurer to make restitution when due
3077	as required under this section constitutes a willful violation
3078	of this chapter. However, if an insurer in good faith is
3079	uncertain as to whether any restitution is due or as to the
3080	amount of such restitution, it shall promptly notify the
3081	department of the circumstances; and the failure to make
3082	restitution pending a determination thereof shall not constitute
3083	a violation of this chapter.
3084	637.2022 Service of process; appointment of Chief
3085	Financial Officer as process agent.-
3086	(1) Each licensed title insurer, whether domestic,
3087	foreign, or alien, shall be deemed to have appointed the Chief
3088	Financial Officer and her or his successors in department as its
3089	attorney to receive service of all legal process issued against
3090	it in any civil action or proceeding in this state; and process
3091	so served shall be valid and binding upon the insurer.
3092	(2) Prior to its authorization to transact insurance in
3093	this state, each insurer shall file with the department
3094	designation of the name and address of the person to whom
3095	process against it served upon the Chief Financial Officer is to
3096	be forwarded. The insurer may change the designation at any time
3097	by a new filing.
3098	(3) Service of process upon the Chief Financial Officer as
3099	the insurer's attorney pursuant to such an appointment shall be
3100	the sole method of service of process upon an authorized
3101	domestic, foreign, or alien insurer in this state.
3102	637.2023 Serving process.-
3103	(1) Service of process upon the Chief Financial Officer as
3104	process agent of the title insurer under s. 637.2022 shall be
3105	made by serving copies in triplicate of the process upon the
3106	Chief Financial Officer or upon her or his assistant, deputy, or
3107	other person in charge of her or his office. Upon receiving such
3108	service, the Chief Financial Officer shall file one copy in her
3109	or his office, return one copy with her or his admission of
3110	service, and promptly forward one copy of the process by
3111	registered or certified mail to the person last designated by
3112	the insurer to receive the same, as provided under s.
3113	637.2022(2).
3114	(2) When process is served upon the Chief Financial
3115	Officer as an insurer's process agent, the insurer shall not be
3116	required to answer or plead except within 20 days after the date
3117	upon which the Chief Financial Officer mailed a copy of the
3118	process served upon her or him as required by subsection (1).
3119	(3) Process served upon the Chief Financial Officer and
3120	copy thereof forwarded as in this section provided shall for all
3121	purposes constitute valid and binding service thereof upon the
3122	insurer.
3123	637.2024 Annual statement and other information.-
3124	(1)(a) Each authorized title insurer shall file with the
3125	department full and true statements of its financial condition,
3126	transactions, and affairs. An annual statement covering the
3127	preceding calendar year shall be filed on or before March 1, and
3128	quarterly statements covering the periods ending on March 31,
3129	June 30, and September 30 shall be filed within 45 days after
3130	each such date. The department may, for good cause, grant an
3131	extension of time for filing of an annual or quarterly
3132	statement. The statements shall contain information generally
3133	included in insurers' financial statements prepared in
3134	accordance with generally accepted insurance accounting
3135	principles and practices and in a form generally utilized by
3136	insurers for financial statements, sworn to by at least two
3137	executive officers of the insurer or, if a reciprocal insurer,
3138	by the oath of the attorney in fact or its like officer if a
3139	corporation. To facilitate uniformity in financial statements
3140	and to facilitate department analysis, the department may by
3141	rule adopt the form for financial statements approved by the
3142	National Association of Insurance Commissioners in 2002, and may
3143	adopt subsequent amendments thereto if the methodology remains
3144	substantially consistent, and may by rule require each insurer
3145	to submit to the department or such organization as the
3146	department may designate all or part of the information
3147	contained in the financial statement in a computer-readable form
3148	compatible with the electronic data processing system specified
3149	by the department.
3150	(b) The department may by rule require reports or filings
3151	required under this chapter to be submitted by electronic means
3152	in a computer-readable form compatible with the electronic data
3153	processing equipment specified by the department.
3154	(2) The statement of an alien insurer shall be verified by
3155	the insurer's United States manager or other officer duly
3156	authorized. It shall be a separate statement, to be known as its
3157	general statement, of its transactions, assets, and affairs
3158	within the United States unless the department requires
3159	otherwise. If the department requires a statement as to the
3160	insurer's affairs elsewhere, the insurer shall file such
3161	statement with the department as soon as reasonably possible.
3162	(3) At the time of filing, the insurer shall pay the fee
3163	for filing its annual statement in the amount specified in s.
3164	637.2031.
3165	(4) The department may refuse to continue, or may suspend
3166	or revoke, the certificate of authority of an insurer failing to
3167	file its annual or quarterly statements and accompanying
3168	certificates when due.
3169	(5) In addition to information called for and furnished in
3170	connection with its annual or quarterly statements, an insurer
3171	shall furnish to the department as soon as reasonably possible
3172	such information as to its transactions or affairs as the
3173	department may from time to time request in writing. All such
3174	information furnished pursuant to the department's request shall
3175	be verified by the oath of two executive officers of the insurer
3176	or, if a reciprocal insurer, by the oath of the attorney in fact
3177	or its like officers if a corporation.
3178	(6) The signatures of all such persons when written on
3179	annual or quarterly statements or other reports required by this
3180	section shall be presumed to have been so written by authority
3181	of the person whose signature is affixed thereon. The affixing
3182	of any signature by anyone other than the purported signer
3183	constitutes a felony of the second degree, punishable as
3184	provided in s. 775.082, s. 775.083, or s. 775.084.
3185	(7)(a) All authorized insurers must have conducted an
3186	annual audit by an independent certified public accountant and
3187	must file an audited financial report with the department on or
3188	before June 1 for the preceding year ending December 31. The
3189	department may require an insurer to file an audited financial
3190	report earlier than June 1 upon 90 days' advance notice to the
3191	insurer. The department may immediately suspend an insurer's
3192	certificate of authority by order if an insurer's failure to
3193	file required reports, financial statements, or information
3194	required by this subsection or rule adopted pursuant thereto
3195	creates a significant uncertainty as to the insurer's continuing
3196	eligibility for a certificate of authority.
3197	(b) Any authorized insurer otherwise subject to this
3198	section having direct premiums written in this state of less
3199	than $1 million in any calendar year and fewer than 1,000
3200	policyholders or certificateholders of directly written policies
3201	nationwide at the end of such calendar year is exempt from this
3202	section for such year unless the department makes a specific
3203	finding that compliance is necessary in order for the department
3204	to carry out its statutory responsibilities. However, any
3205	insurer having assumed premiums pursuant to contracts or
3206	treaties or reinsurance of $1 million or more is not exempt. Any
3207	insurer subject to an exemption must submit by March 1 following
3208	the year to which the exemption applies an affidavit sworn to by
3209	a responsible officer of the insurer specifying the amount of
3210	direct premiums written in this state and number of
3211	policyholders or certificateholders.
3212	(c) The board of directors of an insurer shall hire the
3213	certified public accountant that prepares the audit required by
3214	this subsection and the board shall establish an audit committee
3215	of three or more directors of the insurer or an affiliated
3216	company. The audit committee shall be responsible for discussing
3217	audit findings and interacting with the certified public
3218	accountant with regard to her or his findings. The audit
3219	committee shall be comprised solely of members who are free from
3220	any relationship that, in the opinion of its board of directors,
3221	would interfere with the exercise of independent judgment as a
3222	committee member. The audit committee shall report to the board
3223	any findings of adverse financial conditions or significant
3224	deficiencies in internal controls that have been noted by the
3225	accountant. The insurer may request the department to waive this
3226	requirement of the audit committee membership based upon unusual
3227	hardship to the insurer.
3228	(d) An insurer may not use the same accountant or partner
3229	of an accounting firm responsible for preparing the report
3230	required by this subsection for more than 7 consecutive years.
3231	Following this period, the insurer may not use such accountant
3232	or partner for a period of 2 years, but may use another
3233	accountant or partner of the same firm. An insurer may request
3234	the department to waive this prohibition based upon an unusual
3235	hardship to the insurer and a determination that the accountant
3236	is exercising independent judgment that is not unduly influenced
3237	by the insurer considering such factors as the number of
3238	partners, expertise of the partners or the number of insurance
3239	clients of the accounting firm; the premium volume of the
3240	insurer; and the number of jurisdictions in which the insurer
3241	transacts business.
3242	(e) The department shall adopt rules to implement this
3243	subsection, which rules must be in substantial conformity with
3244	the 1998 Model Rule Requiring Annual Audited Financial Reports
3245	adopted by the National Association of Insurance Commissioners,
3246	except where inconsistent with the requirements of this
3247	subsection. Any exception to, waiver of, or interpretation of
3248	accounting requirements of the department must be in writing and
3249	signed by an authorized representative of the department. No
3250	insurer may raise as a defense in any action, any exception to,
3251	waiver of, or interpretation of accounting requirements, unless
3252	previously issued in writing by an authorized representative of
3253	the department.
3254	637.2025 NAIC filing requirements.-
3255	(1) Each domestic, foreign, and alien title insurer who is
3256	authorized to transact title insurance in this state shall file
3257	one extra copy of its annual statement convention blank, along
3258	with such additional filings as prescribed by the department for
3259	the preceding year. Such extra copy shall be for the explicit
3260	purpose of allowing the department to forward it to the National
3261	Association of Insurance Commissioners.
3262	(2) Coincident with the filing of the documents required
3263	in subsection (1), each insurer shall pay to the department a
3264	reasonable fee to cover the costs associated with the filing and
3265	analysis of the documents by the National Association of
3266	Insurance Commissioners and the department.
3267	(3) The provisions of this section shall not apply to any
3268	foreign, domestic, or alien insurer which has filed such
3269	documents directly with the National Association of Insurance
3270	Commissioners if the National Association of Insurance
3271	Commissioners has certified receipt of the required documents to
3272	the department.
3273	637.2026 Change in controlling interest of foreign or
3274	alien title insurer; report required.-In the event of a change
3275	in the controlling capital stock or a change of 50 percent or
3276	more of the assets of a foreign or alien title insurer, such
3277	insurer shall report such change in writing to the department
3278	within 30 days of the effective date thereof. The report shall
3279	contain the name and address of the new owner or owners of the
3280	controlling stock or assets, the nature and value of the new
3281	assets, and such other relevant information as the department
3282	may reasonably require. For the purposes of this section, the
3283	term "controlling capital stock" means a sufficient number of
3284	shares of the issued and outstanding capital stock of such
3285	insurer or person so as to give the owner thereof power to
3286	exercise a controlling influence over the management or policies
3287	of such insurer or person.
3288	637.2027 Withdrawal of title insurer or discontinuance of
3289	writing insurance.-
3290	(1) Any title insurer desiring to surrender its
3291	certificate of authority, withdraw from this state, or
3292	discontinue the writing of title insurance in this state shall
3293	give 90 days' notice in writing to the department setting forth
3294	its reasons for such action. Any insurer who does not write any
3295	premiums within a calendar year shall have title insurance
3296	removed from its certificate of authority; however, such line of
3297	insurance shall be restored to the insurer's certificate upon
3298	the insurer demonstrating that it has available the expertise
3299	necessary and meets the other requirements of this chapter to
3300	write that line of insurance.
3301	(2) If the department determines, based upon its review of
3302	the notice and other required information, that the plan of an
3303	insurer withdrawing from this state makes adequate provision for
3304	the satisfaction of the insurer's obligations and is not
3305	hazardous to policyholders or the public, the department shall
3306	approve the surrender of the insurer's certificate of authority.
3307	The department shall, within 45 days from receipt of a complete
3308	notice and all required or requested additional information,
3309	approve, disapprove, or approve with conditions the plan
3310	submitted by the insurer. Failure to timely take action with
3311	respect to the notice shall be deemed an approval of the
3312	surrender of the certificate of authority.
3313	(3) Any insurer withdrawing from this state or
3314	discontinuing the writing of insurance in this state shall
3315	surrender its certificate of authority.
3316	(4) This section does not apply to insurers during the
3317	calendar year in which they first receive their certificate of
3318	authority.
3319	(5) This section does not apply to insurers who have
3320	discontinued writing in accordance with an order issued by the
3321	department.
3322	(6) Notwithstanding subsection (5), any insurer desiring
3323	to surrender its certificate of authority, withdraw from this
3324	state, or discontinue the writing of insurance in this state is
3325	expected to have availed itself of all reasonably available
3326	reinsurance. Reasonably available reinsurance shall include
3327	unrealized reinsurance, which is defined as reinsurance
3328	recoverable on known losses incurred and due under valid
3329	reinsurance contracts that have not been identified in the
3330	normal course of business and have not been reported in
3331	financial statements filed with the department. Within 90 days
3332	after surrendering its certificate of authority, withdrawing
3333	from this state, or discontinuing the writing of any one or
3334	multiple kinds or lines of insurance in this state, the insurer
3335	shall certify to the department that the insurer has engaged an
3336	independent third party to search for unrealized reinsurance,
3337	and that the insurer has made all relevant books and records
3338	available to such third party. The compensation to such third
3339	party may be a percentage of unrealized reinsurance identified
3340	and collected.
3341	(7) The department may adopt rules to administer this
3342	section.
3343	637.2028 Assets of title insurers; reporting
3344	requirements.-
3345	(1) As used in this section, the term "material
3346	acquisition of assets" or "material disposition of assets" means
3347	one or more transactions occurring during any 30-day period
3348	which are nonrecurring and not in the ordinary course of
3349	business and involve more than 5 percent of the reporting title
3350	insurer's total admitted assets as reported in its most recent
3351	statutory statement filed with the insurance department of the
3352	insurer's state of domicile.
3353	(2) Each domestic title insurer shall file a report with
3354	the department disclosing a material acquisition of assets, a
3355	material disposition of assets, or a material nonrenewal,
3356	cancellation, or revision of a ceded reinsurance agreement,
3357	unless the material acquisition or disposition of assets or the
3358	material nonrenewal, cancellation, or revision of a ceded
3359	reinsurance agreement has been submitted to the department for
3360	review, approval, or informational purposes under another
3361	section of this chapter or a rule adopted thereunder. A copy of
3362	the report and each exhibit or other attachment must be filed by
3363	the insurer with the National Association of Insurance
3364	Commissioners. The report required in this section is due within
3365	15 days after the end of the calendar month in which the
3366	transaction occurs.
3367	(3) An immaterial acquisition or disposition of assets
3368	need not be reported under this section.
3369	(4)(a) Acquisitions of assets which are subject to this
3370	section include each purchase, lease, exchange, merger,
3371	consolidation, succession, or other acquisition of assets. Asset
3372	acquisitions for the construction or development of real
3373	property by or for the reporting insurer and the acquisition of
3374	construction materials for this purpose are not subject to this
3375	section.
3376	(b) Dispositions of assets which are subject to this
3377	section include each sale, lease, exchange, merger,
3378	consolidation, mortgage, hypothecation, assignment for the
3379	benefit of a creditor or otherwise, abandonment, destruction, or
3380	other disposition of assets.
3381	(5)(a) The following information must be disclosed in any
3382	report of a material acquisition or disposition of assets:
3383	1. The date of the transaction.
3384	2. The manner of acquisition or disposition.
3385	3. The description of the assets involved.
3386	4. The nature and amount of the consideration given or
3387	received.
3388	5. The purpose of, or reason for, the transaction.
3389	6. The manner by which the amount of consideration was
3390	determined.
3391	7. The gain or loss recognized or realized as a result of
3392	the transaction.
3393	8. The name of the person from whom the assets were
3394	acquired or to whom they were disposed.
3395	(b) Insurers must report material acquisitions or
3396	dispositions on a nonconsolidated basis unless the insurer is
3397	part of a consolidated group of insurers which uses a pooling
3398	arrangement or a 100-percent reinsurance agreement that affects
3399	the solvency and integrity of the insurer's reserves and the
3400	insurer has ceded substantially all of its direct and assumed
3401	business to the pool. An insurer is deemed to have ceded
3402	substantially all of its direct and assumed business to a pool
3403	if the insurer has less than $1 million in total direct and
3404	assumed written premiums during a calendar year which are not
3405	subject to a pooling arrangement and if the net income of the
3406	business which is not subject to the pooling arrangement
3407	represents less than 5 percent of the insurer's capital and
3408	surplus.
3409	(6)(a) The following information must be disclosed in any
3410	report of a material nonrenewal, cancellation, or revision of a
3411	ceded reinsurance agreement:
3412	1. The effective date of the nonrenewal, cancellation, or
3413	revision.
3414	2. The description of the transaction and the
3415	identification of the initiator of the transaction.
3416	3. The purpose of, or reason for, the transaction.
3417	4. If applicable, the identity of each replacement
3418	reinsurer.
3419	(b) Insurers shall report the material nonrenewal,
3420	cancellation, or revision of a ceded reinsurance agreement on a
3421	nonconsolidated basis unless the insurer is part of a
3422	consolidated group of insurers which uses a pooling arrangement
3423	or a 100-percent reinsurance agreement that affects the solvency
3424	and integrity of the insurer's reserves and the insurer has
3425	ceded substantially all of its direct and assumed business to
3426	the pool. An insurer is deemed to have ceded substantially all
3427	of its direct and assumed business to a pool if the insurer has
3428	less than $1 million in total direct and assumed written
3429	premiums during a calendar year which are not subject to a
3430	pooling arrangement and if the net income of the business not
3431	subject to the pooling arrangement represents less than 5
3432	percent of the insurer's capital and surplus.
3433	637.2029 Participation of financial institutions in
3434	reinsurance and in insurance exchanges.-Subject to applicable
3435	laws relating to financial institutions and to any other
3436	applicable provision of this chapter, any financial institution
3437	or aggregation of such institutions may own or control, directly
3438	or indirectly, any title insurer which is authorized or approved
3439	by the department, which insurer transacts only reinsurance in
3440	this state and which actively engages in reinsuring risks
3441	located in this state. Nothing in this section shall be deemed
3442	to prohibit a financial institution from engaging in any
3443	presently authorized insurance activity.
3444	637.2031 Filing, license, appointment, and miscellaneous
3445	fees.-The department shall collect in advance, and persons so
3446	served shall pay to it in advance, fees, licenses, and
3447	miscellaneous charges as follows:
3448	(1) Certificate of authority of title insurer.
3449	(a) Filing application for original certificate of
3450	authority or modification thereof as a result of a merger,
3451	acquisition, or change of controlling interest due to a sale or
3452	exchange of stock, including all documents required to be filed
3453	therewith, filing fee....$1,500.00
3454	(b) Reinstatement fee....$50.00
3455	(2) Charter documents of insurer.
3456	(a) Filing articles of incorporation or other charter
3457	documents, other than at time of application for original
3458	certificate of authority, filing fee....$10.00
3459	(b) Filing amendment to articles of incorporation or
3460	charter, other than at time of application for original
3461	certificate of authority, filing fee....$5.00
3462	(c) Filing bylaws, when required, or amendments thereof,
3463	filing fee....$5.00
3464	(3) Annual license tax of insurer, each domestic insurer,
3465	foreign insurer, and alien insurer (except that, as to fraternal
3466	benefit societies insuring less than 200 members in this state
3467	and the members of which as a prerequisite to membership possess
3468	a physical handicap or disability, such license tax shall be
3469	$25)....$1,000.00
3470	(4) Statements of insurer, filing (except when filed as
3471	part of application for original certificate of authority),
3472	filing fees:
3473	(a) Annual statement....$250.00
3474	(b) Quarterly statement....$250.00
3475	(5) All insurance representatives, application for
3476	license, each filing, filing fee....$50.00
3477	(6) Examination-Fee to cover actual cost of examination.
3478	(7) Temporary license and appointment as agent where
3479	expressly provided for, rate of fee for each month of the period
3480	for which the license and appointment is issued....$5.00
3481	(8) Issuance, reissuance, reinstatement, modification
3482	resulting in a modified license being issued, duplicate copy of
3483	any insurance representative license, or an appointment being
3484	reinstated....$5.00
3485	(9) Additional appointment continuation fees as prescribed
3486	in chapter 626....$5.00
3487	(10) Filing application for permit to form insurer as
3488	referred to in chapter 628, filing fee....$25.00
3489	(11) Annual license fee of rating organization, each
3490	domestic or foreign organization....$25.00
3491	(12) Miscellaneous services:
3492	(a) For copies of documents or records on file with the
3493	department, per page....$ .50
3494	(b) For each certificate of the department, under its
3495	seal, authenticating any document or other instrument (other
3496	than a license or certificate of authority)....$5.00
3497	(c) For preparing lists of agents and other insurance
3498	representatives, and for other miscellaneous services, such
3499	reasonable charge as may be fixed by the department.
3500	(d) For processing requests for approval of continuing
3501	education courses, processing fee....$100.00
3502	(13) Fingerprint processing-Fee to cover fingerprint
3503	processing.
3504	(14) Title insurance agents:
3505	(a) Agent's original appointment or biennial renewal or
3506	continuation thereof, each insurer:
3507	Appointment fee....$42.00
3508	State tax....12.00
3509	County tax....6.00
3510	Total....$60.00
3511	(b) Agency original appointment or biennial renewal or
3512	continuation thereof, each insurer:
3513	Appointment fee....$42.00
3514	State tax....12.00
3515	County tax....6.00
3516	Total....$60.00
3517	(c) Filing for title insurance agent's license:
3518	Application for filing, each filing, filing fee....$10.00
3519	(d) Additional appointment continuation fee as prescribed
3520	by s. 637.3015....$5.00
3521	(e) Title insurer and title insurance agency
3522	administrative surcharge:
3523	1. On or before January 30 of each calendar year, each
3524	title insurer shall pay to the department for each licensed
3525	title insurance agency appointed by the title insurer and for
3526	each retail office of the insurer on January 1 of that calendar
3527	year an administrative surcharge of $200.00.
3528	2. On or before January 30 of each calendar year, each
3529	licensed title insurance agency shall remit to the department an
3530	administrative surcharge of $200.00.
3531
3532	The administrative surcharge may be used solely to defray the
3533	costs to the department in their examination or audit of title
3534	insurance agencies and retail offices of title insurers and to
3535	gather title insurance data for statistical purposes to be
3536	furnished to and used by the department in its regulation of
3537	title insurance.
3538	(15) Late filing of appointment renewals for agents,
3539	adjusters, and other insurance representatives, each
3540	appointment....$20.00
3541	637.2032 Advance collection of fees and taxes; title
3542	insurers not to pay without reimbursement.-
3543	(1) The department shall collect in advance from the
3544	applicant or licensee fees and taxes as provided in s. 637.2031.
3545	(2) A title insurer shall not pay directly or indirectly
3546	without reimbursement from a title insurance agent any
3547	appointment fee required under this section. The failure of a
3548	title insurance agent to make reimbursement is not a ground for
3549	cancellation of the title insurance agent's appointment by the
3550	title insurer.
3551	637.2033 Service of process fee.-In all instances as
3552	provided in any section of this chapter and s. 48.151(3) in
3553	which service of process is authorized to be made upon the Chief
3554	Financial Officer , the plaintiff shall pay to the department a
3555	fee of $15 for such service of process, which fee shall be
3556	deposited into the Title Insurance Regulatory Trust Fund.
3557	637.2034 Liability for state, county tax.-Each authorized
3558	title insurer that uses insurance agents in this state shall be
3559	liable for and shall pay the state and county taxes required
3560	therefor under s. 637.2031 or s. 637.2035.
3561	637.2035 County tax; determination; additional offices;
3562	nonresident agents.-
3563	(1) The county tax provided for under s. 637.2031 as to an
3564	agent shall be paid by each title insurer for each agent only
3565	for the county where the agent resides, or if such agent's place
3566	of business is located in a county other than that of her or his
3567	residence, then for the county wherein is located such place of
3568	business. If an agent maintains an office or place of business
3569	in more than one county, the tax shall be paid for her or him by
3570	each such insurer for each county wherein the agent represents
3571	such insurer and has a place of business. When under this
3572	subsection an insurer is required to pay county tax for an agent
3573	for a county or counties other than the agent's county of
3574	residence, the insurer shall designate the county or counties
3575	for which the taxes are paid.
3576	(2) A county tax of $3 per year shall be paid by each
3577	insurer for each county in this state in which an agent who
3578	resides outside of this state represents and engages in person
3579	in the activities of an agent for the insurer. This provision
3580	shall not be deemed to authorize any activities by an agent
3581	which are otherwise prohibited under this chapter.
3582	637.2036 County tax; deposit and remittance.-
3583	(1) The department shall deposit in the Agents County Tax
3584	Trust Fund all moneys accepted as county tax under this chapter.
3585	She or he shall keep a separate account for all moneys so
3586	collected for each county and, after deducting therefrom the
3587	service charges provided for in s. 215.20, shall remit the
3588	balance to the counties.
3589	(2) The payment and collection of county tax under this
3590	chapter shall be in lieu of collection thereof by the respective
3591	county tax collectors.
3592	(3) The Chief Financial Officer shall annually, as of
3593	January 1 following the date of collection, and thereafter at
3594	such other times as she or he may elect, draw her or his
3595	warrants on the State Treasury payable to the respective
3596	counties entitled to receive the same for the full net amount of
3597	such taxes to each county.
3598	637.2037 Municipal tax.-Municipal corporations may require
3599	a tax of title insurance agents not to exceed 50 percent of the
3600	state tax specified as to such agents under this chapter, and
3601	unless otherwise authorized by law. Such a tax may be required
3602	only by a municipal corporation within the boundaries of which
3603	is located the agent's business office, or if no such office is
3604	required under this chapter, by the municipal corporation of the
3605	agent's place of residence.
3606	637.2038 Insurer's license tax; when payable.-
3607	(1) The title insurer's license tax provided for in s.
3608	637.2031(3) shall be paid by an insurer newly applying for a
3609	certificate of authority to transact insurance in this state
3610	prior to and contingent upon the issuance of its original
3611	certificate of authority. If the certificate of authority is not
3612	issued, the license tax payment shall be refunded to the
3613	insurer. The license tax so paid by a newly authorized insurer
3614	shall cover the period expiring on the June 1 following the date
3615	of its original certificate of authority.
3616	(2) Each authorized title insurer shall pay the license
3617	tax annually on or before June 1.
3618	637.2039 Premium tax; rate and computation.-
3619	(1) In addition to the license taxes provided for in this
3620	chapter, each title insurer shall also annually, and on or
3621	before March 1 in each year, pay to the Department of Revenue a
3622	tax on premiums for title insurance received during the
3623	preceding calendar year an amount equal to 1.75 percent of the
3624	gross amount of such receipts on account of all policies and
3625	covering property, subjects, or risks located, resident, or to
3626	be performed in this state, omitting premiums on reinsurance
3627	accepted, and less return premiums or assessments, but without
3628	deductions:
3629	(a) For reinsurance ceded to other insurers;
3630	(b) For moneys paid upon surrender of policies or
3631	certificates for cash surrender value.
3632	(2) Payment by the insurer of the license taxes and
3633	premium receipts taxes provided for in this chapter is a
3634	condition precedent to doing business within this state.
3635	(3) Notwithstanding other provisions of law, the
3636	distribution of the premium tax and any penalties or interest
3637	collected thereunder shall be made to the General Revenue Fund
3638	in accordance with rules adopted by the Department of Revenue
3639	and approved by the Administration Commission.
3640	(4) The income tax imposed under chapter 220 and the
3641	emergency excise tax imposed under chapter 221 which are paid by
3642	any insurer shall be credited against, and to the extent thereof
3643	shall discharge, the liability for tax imposed by this section
3644	for the annual period in which such tax payments are made. For
3645	purposes of this subsection, payments of estimated income tax
3646	under chapter 220 and of estimated emergency excise tax under
3647	chapter 221 shall be deemed paid at the time the insurer
3648	actually files its annual returns under chapter 220 or at the
3649	time such returns are required to be filed, whichever first
3650	occurs, and not at such earlier time as such payments of
3651	estimated tax are actually made.
3652	(5)(a)1. There shall be allowed a credit against the net
3653	tax imposed by this section equal to 15 percent of the amount
3654	paid by an insurer in salaries to employees located or based
3655	within this state and who are covered by the provisions of
3656	chapter 443.
3657	2. As an alternative to the credit allowed in subparagraph
3658	1., an affiliated group of corporations which includes at least
3659	one insurance company writing premiums in this state may elect
3660	to take a credit against the net tax imposed by this section in
3661	an amount that may not exceed 15 percent of the salary of the
3662	employees of the affiliated group of corporations who perform
3663	insurance-related activities, are located or based within this
3664	state, and are covered by chapter 443. For purposes of this
3665	subparagraph, the term "affiliated group of corporations" means
3666	two or more corporations that are entirely owned directly or
3667	indirectly by a single corporation and that constitute an
3668	affiliated group as defined in s. 1504(a) of the Internal
3669	Revenue Code. The amount of credit allowed under this
3670	subparagraph is limited to the combined Florida salary tax
3671	credits allowed for all insurance companies that were members of
3672	the affiliated group of corporations for the tax year ending
3673	December 31, 2002, divided by the combined Florida taxable
3674	premiums written by all insurance companies that were members of
3675	the affiliated group of corporations for the tax year ending
3676	December 31, 2002, multiplied by the combined Florida taxable
3677	premiums of the affiliated group of corporations for the current
3678	year. An affiliated group of corporations electing this
3679	alternative calculation method must make such election on or
3680	before August 1, 2005. The election of this alternative
3681	calculation method is irrevocable and binding upon successors
3682	and assigns of the affiliated group of corporations electing
3683	this alternative. However, if a member of an affiliated group of
3684	corporations acquires or merges with another insurance company
3685	after the date of the irrevocable election, the acquired or
3686	merged company is not entitled to the affiliated group election
3687	and shall only be entitled to calculate the tax credit under
3688	subparagraph 1.
3689
3690	In no event shall the salary paid to an employee by an
3691	affiliated group of corporations be claimed as a credit by more
3692	than one insurer or be counted more than once in an insurer's
3693	calculation of the credit as described in subparagraph 1. or
3694	subparagraph 2. Only the portion of an employee's salary paid
3695	for the performance of insurance-related activities may be
3696	included in the calculation of the premium tax credit in this
3697	subsection.
3698	(b) For purposes of this subsection:
3699	1. The term "salaries" does not include amounts paid as
3700	commissions.
3701	2. The term "employees" does not include independent
3702	contractors or any person whose duties require that the person
3703	hold a valid license under the Florida Insurance Code, except
3704	adjusters, managing general agents, and service representatives,
3705	as defined in s. 626.015.
3706	3. The term "net tax" means the tax imposed by this
3707	section after applying the calculations and credits set forth in
3708	subsection (4).
3709	4. An affiliated group of corporations that created a
3710	service company within its affiliated group on July 30, 2002,
3711	shall allocate the salary of each service company employee
3712	covered by contracts with affiliated group members to the
3713	companies for which the employees perform services. The salary
3714	allocation is based on the amount of time during the tax year
3715	that the individual employee spends performing services or
3716	otherwise working for each company over the total amount of time
3717	the employee spends performing services or otherwise working for
3718	all companies. The total amount of salary allocated to an
3719	insurance company within the affiliated group shall be included
3720	as that insurer's employee salaries for purposes of this
3721	section.
3722	a. Except as provided in subparagraph (a)2., the term
3723	"affiliated group of corporations" means two or more
3724	corporations that are entirely owned by a single corporation and
3725	that constitute an affiliated group of corporations as defined
3726	in s. 1504(a) of the Internal Revenue Code.
3727	b. The term "service company" means a separate corporation
3728	within the affiliated group of corporations whose employees
3729	provide services to affiliated group members and which are
3730	treated as service company employees for unemployment
3731	compensation and common law purposes. The holding company of an
3732	affiliated group may not qualify as a service company. An
3733	insurance company may not qualify as a service company.
3734	c. If an insurance company fails to substantiate, whether
3735	by means of adequate records or otherwise, its eligibility to
3736	claim the service company exception under this section, or its
3737	salary allocation under this section, no credit shall be
3738	allowed.
3739	5. A service company that is a subsidiary of a mutual
3740	insurance holding company, which mutual insurance holding
3741	company was in existence on or before January 1, 2000, shall
3742	allocate the salary of each service company employee covered by
3743	contracts with members of the mutual insurance holding company
3744	system to the companies for which the employees perform
3745	services. The salary allocation is based on the ratio of the
3746	amount of time during the tax year which the individual employee
3747	spends performing services or otherwise working for each company
3748	to the total amount of time the employee spends performing
3749	services or otherwise working for all companies. The total
3750	amount of salary allocated to an insurance company within the
3751	mutual insurance holding company system shall be included as
3752	that insurer's employee salaries for purposes of this section.
3753	However, this subparagraph does not apply for any tax year
3754	unless funds sufficient to offset the anticipated salary credits
3755	have been appropriated to the General Revenue Fund prior to the
3756	due date of the final return for that year.
3757	a. The term "mutual insurance holding company system"
3758	means two or more corporations that are subsidiaries of a mutual
3759	insurance holding company and in compliance with part IV of
3760	chapter 628.
3761	b. The term "service company" means a separate corporation
3762	within the mutual insurance holding company system whose
3763	employees provide services to other members of the mutual
3764	insurance holding company system and are treated as service
3765	company employees for unemployment compensation and common-law
3766	purposes. The mutual insurance holding company may not qualify
3767	as a service company.
3768	c. If an insurance company fails to substantiate, whether
3769	by means of adequate records or otherwise, its eligibility to
3770	claim the service company exception under this section, or its
3771	salary allocation under this section, no credit shall be
3772	allowed.
3773	(c) The department may adopt rules pursuant to ss.
3774	120.536(1) and 120.54 to administer this subsection.
3775	(6)(a) The total of the credit granted for the taxes paid
3776	by the insurer under chapters 220 and 221 and the credit granted
3777	by subsection (5) shall not exceed 65 percent of the tax due
3778	under subsection (1) after deducting therefrom the taxes paid by
3779	the insurer under ss. 175.101 and 185.08 and any assessments
3780	pursuant to s. 440.51.
3781	(b) To the extent that any credits granted by subsection
3782	(5) remain as a result of the limitation set forth in paragraph
3783	(a), such excess credits related to salaries and wages of
3784	employees whose place of employment is located within an
3785	enterprise zone created pursuant to chapter 290 may be
3786	transferred, in an aggregate amount not to exceed 25 percent of
3787	such excess salary credits, to any insurer that is a member of
3788	an affiliated group of corporations, as defined in sub-
3789	subparagraph (5)(b)4.a., that includes the original insurer
3790	qualifying for the credits under subsection (5). The amount of
3791	such excess credits to be transferred shall be calculated by
3792	multiplying the amount of such excess credits by a fraction, the
3793	numerator of which is the sum of the salaries qualifying for the
3794	credit allowed by subsection (5) of employees whose place of
3795	employment is located in an enterprise zone and the denominator
3796	of which is the sum of the salaries qualifying for the credit
3797	allowed by subsection (5). Any such transferred credits shall be
3798	subject to the same provisions and limitations set forth within
3799	this chapter. The provisions of this paragraph do not apply to
3800	an affiliated group of corporations that participate in a common
3801	paymaster arrangement as defined in s. 443.1216.
3802	(7) Credits and deductions against the tax imposed by this
3803	section shall be taken in the following order: deductions for
3804	assessments made pursuant to s. 440.51; credits for taxes paid
3805	under ss. 175.101 and 185.08; credits for income taxes paid
3806	under chapter 220, the emergency excise tax paid under chapter
3807	221 and the credit allowed under subsection (5), as these
3808	credits are limited by subsection (6); all other available
3809	credits and deductions.
3810	(8) As used in this section "insurer" includes any entity
3811	subject to the tax imposed by this section.
3812	637.2041 Retaliatory provision, insurers.-
3813	(1)(a) When by or pursuant to the laws of any other state
3814	or foreign country any taxes, licenses, and other fees, in the
3815	aggregate, and any fines, penalties, deposit requirements, or
3816	other material obligations, prohibitions, or restrictions are or
3817	would be imposed upon title insurers in this state or upon the
3818	agents or representatives of such insurers, which are in excess
3819	of such taxes, licenses, and other fees, in the aggregate, or
3820	which are in excess of the fines, penalties, deposit
3821	requirements, or other obligations, prohibitions, or
3822	restrictions directly imposed upon similar insurers, or upon the
3823	agents or representatives of such insurers, of such other state
3824	or country under the statutes of this state, so long as such
3825	laws of such other state or country continue in force or are so
3826	applied, the same taxes, licenses, and other fees, in the
3827	aggregate, or fines, penalties, deposit requirements, or other
3828	material obligations, prohibitions, or restrictions of whatever
3829	kind shall be imposed by the Department of Revenue upon the
3830	insurers, or upon the agents or representatives of such
3831	insurers, of such other state or country doing business or
3832	seeking to do business in this state. In determining the taxes
3833	to be imposed under this section, 80 percent and a portion of
3834	the remaining 20 percent as provided in paragraph (b) of the
3835	credit provided by s. 637.2039(5), as limited by s. 637.2039(6)
3836	and further determined by s. 637.2039(7), shall not be taken
3837	into consideration.
3838	(b) As used in this subsection, the term "portion of the
3839	remaining 20 percent" shall be calculated by multiplying the
3840	remaining 20 percent by a fraction, the numerator of which is
3841	the sum of the salaries qualifying for the credit allowed by s.
3842	637.2039(5) of employees whose place of employment is located in
3843	an enterprise zone created pursuant to chapter 290 and the
3844	denominator of which is the sum of the salaries qualifying for
3845	the credit allowed by s. 637.2039(5).
3846	(2) Any tax, license, or other obligation imposed by any
3847	city, county, or other political subdivision or agency of a
3848	state, jurisdiction, or foreign country on Florida title
3849	insurers or their agents or representatives shall be deemed to
3850	be imposed by such state, jurisdiction, or foreign country
3851	within the meaning of subsection (1).
3852	(3) This section does not apply as to personal income
3853	taxes, nor as to sales or use taxes, nor as to ad valorem taxes
3854	on real or personal property, nor as to reimbursement premiums
3855	paid to the Florida Hurricane Catastrophe Fund, nor as to
3856	emergency assessments paid to the Florida Hurricane Catastrophe
3857	Fund, nor as to special purpose obligations or assessments
3858	imposed in connection with particular kinds of insurance other
3859	than property insurance, except that deductions, from premium
3860	taxes or other taxes otherwise payable, allowed on account of
3861	real estate or personal property taxes paid shall be taken into
3862	consideration by the department in determining the propriety and
3863	extent of retaliatory action under this section.
3864	(4) For the purposes of this section, a "similar insurer"
3865	is an insurer with identical premiums, personnel, and property
3866	to that of the alien or foreign insurer's Florida premiums,
3867	personnel, and property. The similar insurer's premiums,
3868	personnel, and property shall be used to calculate any taxes,
3869	licenses, other fees, in the aggregate, or any fines, penalties,
3870	deposit requirements, or other material obligations,
3871	prohibitions, or restrictions that are or would be imposed under
3872	the laws of this state and under the law of the foreign or alien
3873	insurer's state of domicile.
3874	(5) The excess amount of all fees, licenses, and taxes
3875	collected by the Department of Revenue under this section over
3876	the amount of similar fees, licenses, and taxes provided for in
3877	this part, together with all fines, penalties, or other monetary
3878	obligations collected under this section exclusive of such fees,
3879	licenses, and taxes, shall be deposited by the Department of
3880	Revenue to the credit of the Title Insurance Regulatory Trust
3881	Fund; provided that such excess amount shall not exceed $125,000
3882	for 1992, and for any subsequent year shall not exceed $125,000
3883	adjusted annually by the lesser of 20 percent or the growth in
3884	the total of such excess amount. The remainder of such excess
3885	amount shall be deposited into the General Revenue Fund.
3886	637.2042 Administration of taxes; payments.-
3887	(1) The Department of Revenue shall administer, audit, and
3888	enforce the assessment and collection of those taxes to which
3889	this section is applicable. The department may share information
3890	with the Department of Revenue as necessary to verify premium
3891	tax or other tax liability arising under such taxes and credits
3892	which may apply thereto.
3893	(2)(a) Installments of the taxes to which this section is
3894	applicable shall be due and payable on April 15, June 15, and
3895	October 15 in each year, based upon the estimated gross amount
3896	of receipts of insurance premiums or assessments received during
3897	the immediately preceding calendar quarter. A final payment of
3898	tax due for the year shall be made at the time the taxpayer
3899	files her or his return for such year. On or before March 1 in
3900	each year, an annual return shall be filed showing, by quarters,
3901	the gross amount of receipts taxable for the preceding year and
3902	the installment payments made during that year.
3903	(b) Any taxpayer who fails to report and timely pay any
3904	installment of tax, who estimates any installment of tax to be
3905	less than 90 percent of the amount finally shown to be due in
3906	any quarter, or who fails to report and timely pay any tax due
3907	with the final return is in violation of this section and is
3908	subject to a penalty of 10 percent on any underpayment of taxes
3909	or delinquent taxes due and payable for that quarter or on any
3910	delinquent taxes due and payable with the final return. Any
3911	taxpayer paying, for each installment required in this section,
3912	27 percent of the amount of the net tax due as reported on her
3913	or his return for the preceding year shall not be subject to the
3914	penalty provided by this section for underpayment of estimated
3915	taxes.
3916	(c) When any taxpayer fails to pay any amount due under
3917	this section, or any portion thereof, on or before the day when
3918	such tax or installment of tax is required by law to be paid,
3919	there shall be added to the amount due interest at the rate of
3920	12 percent per year from the date due until paid.
3921	(d) All penalties and interest imposed on those taxes to
3922	which this section is applicable shall be payable to and
3923	collectible by the Department of Revenue in the same manner as
3924	if they were a part of the tax imposed.
3925	(e) The Department of Revenue may settle or compromise any
3926	such interest or penalties imposed on those taxes to which this
3927	section is applicable pursuant to s. 213.21.
3928	(3) This section is applicable to taxes imposed by ss.
3929	629.5100, 637.2039, and 637.2046.
3930	637.2043 Adjustments.-
3931	(1) If a taxpayer is required to amend its corporate
3932	income tax liability under chapter 220, or the taxpayer receives
3933	a refund of its workers' compensation administrative assessment
3934	paid under chapter 440, the taxpayer shall file an amended
3935	insurance premium tax return not later than 60 days after such
3936	an occurrence.
3937	(2) If an amended insurance premium tax return is required
3938	under subsection (1), notwithstanding any other provision of s.
3939	95.091(3):
3940	(a) A notice of deficiency may be issued at any time
3941	within 3 years after the date the amended insurance premium tax
3942	return is given; or
3943	(b) If a taxpayer fails to file an amended insurance
3944	premium tax return, a notice of deficiency may be issued at any
3945	time.
3946
3947	The amount of any proposed assessment set forth in such a notice
3948	of deficiency shall be limited to the amount of any deficiency
3949	resulting under this chapter from recomputation of the
3950	taxpayer's insurance premium tax and retaliatory tax for the
3951	taxable year after giving effect only to the change in corporate
3952	income tax paid and the change in the amount of the workers'
3953	compensation administrative assessment paid. Interest in
3954	accordance with s. 637.2042 is due on the amount of any
3955	deficiency from the date fixed for filing the original insurance
3956	premium tax return for the taxable year until the date of
3957	payment of the deficiency.
3958	(3) If an amended insurance premium tax return is required
3959	by subsection (1), a claim for refund may be filed within 2
3960	years after the date on which the amended insurance premium tax
3961	return was due, regardless of whether such notice was given,
3962	notwithstanding any other provision of s. 215.26. However, the
3963	amount recoverable pursuant to such a claim shall be limited to
3964	the amount of any overpayment resulting under this chapter from
3965	recomputation of the taxpayer's insurance premium tax and
3966	retaliatory tax for the taxable year after giving effect only to
3967	the change in corporate income tax paid and the change in the
3968	amount of the workers' compensation administrative assessment
3969	paid.
3970	637.2046 Tax statement; overpayments.-
3971	(1) Tax returns as to taxes mentioned in s. 637.2039 shall
3972	be made by insurers on forms to be prescribed by the Department
3973	of Revenue and shall be sworn to by one or more of the executive
3974	officers or attorney, if a reciprocal insurer, of the insurer
3975	making the returns.
3976	(2) Notwithstanding the provisions of s. 215.26(1), if any
3977	insurer makes an overpayment on account of taxes due under s.
3978	637.2039, a refund of the overpayment of taxes shall be made out
3979	of the General Revenue Fund. Overpayment of taxes due under s.
3980	637.2039 shall be refunded no sooner than the first day of the
3981	state fiscal year following the date the tax was due.
3982	(3)(a) If it appears, upon examination of an insurance
3983	premium tax return made under this chapter, that an amount of
3984	insurance premium tax has been paid in excess of the amount due,
3985	the Department of Revenue may refund the amount of the
3986	overpayment to the taxpayer by a warrant of the Chief Financial
3987	Officer. The Department of Revenue may refund the overpayment
3988	without regard to whether the taxpayer has filed a written claim
3989	for a refund; however, the Department of Revenue may request
3990	that the taxpayer file a statement affirming that the taxpayer
3991	made the overpayment.
3992	(b) Notwithstanding paragraph (a), a refund of the
3993	insurance premium tax may not be made, and a taxpayer is not
3994	entitled to bring an action for a refund of the insurance
3995	premium tax, after the period specified in s. 215.26(2) has
3996	elapsed.
3997	(c) If a refund issued by the Department of Revenue under
3998	this subsection is found to exceed the amount of refund legally
3999	due to the taxpayer, the provisions of s. 637.2042 concerning
4000	penalties and interest do not apply if the taxpayer reimburses
4001	the department for any overpayment within 60 days after the
4002	taxpayer is notified that the overpayment was made.
4003	637.2047 Preemption by state.-
4004	(1) This state hereby preempts the field of imposing
4005	excise, privilege, franchise, income, license, permit,
4006	registration, and similar taxes and fees, measured by premiums,
4007	income, or volume of transactions, upon insurers and their
4008	agents and other representatives; and a county, city,
4009	municipality, district, school district, or other political
4010	subdivision or agency in this state may not impose, levy,
4011	charge, or require the same, subject however to the provisions
4012	of subsection (2).
4013	(2) This section shall not be construed to limit or modify
4014	the power of any incorporated city or town to levy the taxes
4015	authorized by ss. 175.101 and 185.08 or the power of any special
4016	fire control district to levy the taxes authorized by s.
4017	175.101.
4018	637.2048 Deposit of certain tax receipts; refund of
4019	improper payments.-
4020	(1) The Department of Financial Services shall promptly
4021	deposit in the State Treasury to the credit of the Title
4022	Insurance Regulatory Trust Fund all "state tax" portions of
4023	agents' licenses collected under s. 637.2031. All moneys
4024	received by the department not in accordance with the provisions
4025	of this chapter or not in the exact amount as specified by the
4026	applicable provisions of this chapter shall be returned to the
4027	remitter. The records of the department shall show the date and
4028	reason for such return.
4029	(2) The Department of Revenue shall promptly deposit into
4030	the Department of Revenue Premium Tax Clearing Trust Fund all
4031	premium taxes collected according to s. 637.2039. Such taxes
4032	shall be distributed on an estimated basis within 15 days after
4033	receipt by the Department of Revenue. Such distribution shall be
4034	adjusted pursuant to an audit by the Department of Revenue.
4035	Section 8. Section 627.778, Florida Statutes, is
4036	transferred, renumbered as section 637.20485, Florida Statutes,
4037	and subsection (2) of that section is amended to read:
4038	637.20485 627.778 Limit of risk.-
4039	(2) Surplus as to policyholders shall be determined from
4040	the last annual statement of the insurer filed under s. 637.2024
4041	624.424.
4042	Section 9. Sections 637.2049, 637.20495, 637.2051,
4043	637.2053, 637.2054, 637.2055, 637.2056, and 637.2057, Florida
4044	Statutes, are created to read:
4045	637.2049 Reinsurance.-
4046	(1) The purpose of this section is to protect the
4047	interests of insureds, claimants, ceding insurers, assuming
4048	insurers, and the public. It is the intent of the Legislature to
4049	ensure adequate regulation of insurers and reinsurers and
4050	adequate protection for those to whom they owe obligations. In
4051	furtherance of that state interest, the Legislature requires
4052	that upon the insolvency of a non-United States insurer or
4053	reinsurer which provides security to fund its United States
4054	obligations in accordance with this section, such security shall
4055	be maintained in the United States and claims shall be filed
4056	with and valued by the state insurance regulator with regulatory
4057	oversight, and the assets shall be distributed in accordance
4058	with the insurance laws of the state in which the trust is
4059	domiciled that are applicable to the liquidation of domestic
4060	United States insurance companies. The Legislature declares that
4061	the matters contained in this section are fundamental to the
4062	business of insurance in accordance with 15 U.S.C. ss. 1011-
4063	1012.
4064	(2) Credit for reinsurance must be allowed a ceding
4065	insurer as either an asset or a deduction from liability on
4066	account of reinsurance ceded only when the reinsurer meets the
4067	requirements of paragraph (3)(a), paragraph (3)(b), or paragraph
4068	(3)(c). Credit must be allowed under paragraph (3)(a) or
4069	paragraph (3)(b) only for cessions of those kinds or lines of
4070	business that the assuming insurer is licensed, authorized, or
4071	otherwise permitted to write or assume in its state of domicile
4072	or, in the case of a United States branch of an alien assuming
4073	insurer, in the state through which it is entered and licensed
4074	or authorized to transact insurance or reinsurance.
4075	(3)(a) Credit must be allowed when the reinsurance is
4076	ceded to an assuming insurer that is authorized to transact
4077	insurance or reinsurance in this state.
4078	(b)1. Credit must be allowed when the reinsurance is ceded
4079	to an assuming insurer that is accredited as a reinsurer in this
4080	state. An accredited reinsurer is one that:
4081	a. Files with the department evidence of its submission to
4082	this state's jurisdiction.
4083	b. Submits to this state's authority to examine its books
4084	and records.
4085	c. Is licensed or authorized to transact insurance or
4086	reinsurance in at least one state or, in the case of a United
4087	States branch of an alien assuming insurer, is entered through,
4088	licensed, or authorized to transact insurance or reinsurance in
4089	at least one state.
4090	d. Files annually with the department a copy of its annual
4091	statement filed with the insurance department of its state of
4092	domicile any quarterly statements if required by its state of
4093	domicile or such quarterly statements if specifically requested
4094	by the department, and a copy of its most recent audited
4095	financial statement.
4096	(I) Maintains a surplus as regards policyholders in an
4097	amount not less than $20 million and whose accreditation has not
4098	been denied by the department within 90 days after its
4099	submission; or
4100	(II) Maintains a surplus as regards policyholders in an
4101	amount not less than $20 million and whose accreditation has
4102	been approved by the department.
4103	2. The department may deny or revoke an assuming insurer's
4104	accreditation if the assuming insurer does not submit the
4105	required documentation pursuant to subparagraph 1., if the
4106	assuming insurer fails to meet all of the standards required of
4107	an accredited reinsurer, or if the assuming insurer's
4108	accreditation would be hazardous to the policyholders of this
4109	state. In determining whether to deny or revoke accreditation,
4110	the department may consider the qualifications of the assuming
4111	insurer with respect to all the following subjects:
4112	a. Its financial stability.
4113	b. The lawfulness and quality of its investments.
4114	c. The competency, character, and integrity of its
4115	management.
4116	d. The competency, character, and integrity of persons who
4117	own or have a controlling interest in the assuming insurer.
4118	e. Whether claims under its contracts are promptly and
4119	fairly adjusted and are promptly and fairly paid in accordance
4120	with the law and the terms of the contracts.
4121	3. Credit must not be allowed a ceding insurer if the
4122	assuming insurer's accreditation has been revoked by the
4123	department after notice and the opportunity for a hearing.
4124	4. The actual costs and expenses incurred by the
4125	department to review a reinsurer's request for accreditation and
4126	subsequent reviews must be charged to and collected from the
4127	requesting reinsurer. If the reinsurer fails to pay the actual
4128	costs and expenses promptly when due, the department may refuse
4129	to accredit the reinsurer or may revoke the reinsurer's
4130	accreditation.
4131	(c)1. Credit must be allowed when the reinsurance is ceded
4132	to an assuming insurer that maintains a trust fund in a
4133	qualified United States financial institution, as defined in
4134	paragraph (5)(b), for the payment of the valid claims of its
4135	United States ceding insurers and their assigns and successors
4136	in interest. To enable the department to determine the
4137	sufficiency of the trust fund, the assuming insurer shall report
4138	annually to the department information substantially the same as
4139	that required to be reported on the NAIC Annual Statement form
4140	by authorized insurers. The assuming insurer shall submit to
4141	examination of its books and records by the department and bear
4142	the expense of examination.
4143	2.a. Credit for reinsurance must not be granted under this
4144	subsection unless the form of the trust and any amendments to
4145	the trust have been approved by:
4146	(I) The insurance regulator of the state in which the
4147	trust is domiciled; or
4148	(II) The insurance regulator of another state who,
4149	pursuant to the terms of the trust instrument, has accepted
4150	principal regulatory oversight of the trust.
4151	b. The form of the trust and any trust amendments must be
4152	filed with the insurance regulator of every state in which the
4153	ceding insurer beneficiaries of the trust are domiciled. The
4154	trust instrument must provide that contested claims are valid
4155	and enforceable upon the final order of any court of competent
4156	jurisdiction in the United States. The trust must vest legal
4157	title to its assets in its trustees for the benefit of the
4158	assuming insurer's United States ceding insurers and their
4159	assigns and successors in interest. The trust and the assuming
4160	insurer are subject to examination as determined by the
4161	insurance regulator.
4162	c. The trust remains in effect for as long as the assuming
4163	insurer has outstanding obligations due under the reinsurance
4164	agreements subject to the trust. No later than February 28 of
4165	each year, the trustee of the trust shall report to the
4166	insurance regulator in writing the balance of the trust and list
4167	the trust's investments at the preceding year end, and shall
4168	certify that the trust will not expire prior to the following
4169	December 31.
4170	3. The following requirements apply to the following
4171	categories of assuming insurer:
4172	a. The trust fund for a single assuming insurer consists
4173	of funds in trust in an amount not less than the assuming
4174	insurer's liabilities attributable to reinsurance ceded by
4175	United States ceding insurers, and, in addition, the assuming
4176	insurer shall maintain a trusteed surplus of not less than $20
4177	million. Not less than 50 percent of the funds in the trust
4178	covering the assuming insurer's liabilities attributable to
4179	reinsurance ceded by United States ceding insurers and trusteed
4180	surplus shall consist of assets of a quality substantially
4181	similar to that required in part II of chapter 625. Clean,
4182	irrevocable, unconditional, and evergreen letters of credit,
4183	issued or confirmed by a qualified United States financial
4184	institution, as defined in paragraph (5)(a), effective no later
4185	than December 31 of the year for which the filing is made and in
4186	the possession of the trust on or before the filing date of its
4187	annual statement, may be used to fund the remainder of the trust
4188	and trusteed surplus.
4189	b.(I) In the case of a group including incorporated and
4190	individual unincorporated underwriters:
4191	(A) For reinsurance ceded under reinsurance agreements
4192	with an inception, amendment, or renewal date on or after August
4193	1, 1995, the trust consists of a trusteed account in an amount
4194	not less than the group's several liabilities attributable to
4195	business ceded by United States domiciled ceding insurers to any
4196	member of the group.
4197	(B) For reinsurance ceded under reinsurance agreements
4198	with an inception date on or before July 31, 1995, and not
4199	amended or renewed after that date, notwithstanding the other
4200	provisions of this section, the trust consists of a trusteed
4201	account in an amount not less than the group's several insurance
4202	and reinsurance liabilities attributable to business written in
4203	the United States.
4204	(C) In addition to these trusts, the group shall maintain
4205	in trust a trusteed surplus of which $100 million must be held
4206	jointly for the benefit of the United States domiciled ceding
4207	insurers of any member of the group for all years of account.
4208	(II) The incorporated members of the group must not be
4209	engaged in any business other than underwriting of a member of
4210	the group, and are subject to the same level of regulation and
4211	solvency control by the group's domiciliary regulator as the
4212	unincorporated members.
4213	(III) Within 90 days after its financial statements are
4214	due to be filed with the group's domiciliary regulator, the
4215	group shall provide to the insurance regulator an annual
4216	certification by the group's domiciliary regulator of the
4217	solvency of each underwriter member or, if a certification is
4218	unavailable, financial statements, prepared by independent
4219	public accountants, of each underwriter member of the group.
4220	(d) Credit must be allowed when the reinsurance is ceded
4221	to an assuming insurer not meeting the requirements of paragraph
4222	(a), paragraph (b), or paragraph (c), but only as to the
4223	insurance of risks located in jurisdictions in which the
4224	reinsurance is required to be purchased by a particular entity
4225	by applicable law or regulation of that jurisdiction.
4226	(e) If the reinsurance is ceded to an assuming insurer not
4227	meeting the requirements of paragraph (a), paragraph (b),
4228	paragraph (c), or paragraph (d), the department may allow
4229	credit, but only if the assuming insurer holds surplus in excess
4230	of $100 million and has a secure financial strength rating from
4231	at least two nationally recognized statistical rating
4232	organizations deemed acceptable by the department. In
4233	determining whether credit should be allowed, the department
4234	shall consider the following:
4235	1. The domiciliary regulatory jurisdiction of the assuming
4236	insurer.
4237	2. The structure and authority of the domiciliary
4238	regulator with regard to solvency regulation requirements and
4239	the financial surveillance of the reinsurer.
4240	3. The substance of financial and operating standards for
4241	reinsurers in the domiciliary jurisdiction.
4242	4. The form and substance of financial reports required to
4243	be filed by the reinsurers in the domiciliary jurisdiction or
4244	other public financial statements filed in accordance with
4245	generally accepted accounting principles.
4246	5. The domiciliary regulator's willingness to cooperate
4247	with United States regulators in general and the department in
4248	particular.
4249	6. The history of performance by reinsurers in the
4250	domiciliary jurisdiction.
4251	7. Any documented evidence of substantial problems with
4252	the enforcement of valid United States judgments in the
4253	domiciliary jurisdiction.
4254	8. Any other matters deemed relevant by the department.
4255	The department shall give appropriate consideration to insurer
4256	group ratings that may have been issued. The department may, in
4257	lieu of granting full credit under this subsection, reduce the
4258	amount required to be held in trust under paragraph (c).
4259	(f) If the assuming insurer is not authorized or
4260	accredited to transact insurance or reinsurance in this state
4261	pursuant to paragraph (a) or paragraph (b), the credit permitted
4262	by paragraph (c) or paragraph (d) must not be allowed unless the
4263	assuming insurer agrees in the reinsurance agreements:
4264	1.a. That in the event of the failure of the assuming
4265	insurer to perform its obligations under the terms of the
4266	reinsurance agreement, the assuming insurer, at the request of
4267	the ceding insurer, shall submit to the jurisdiction of any
4268	court of competent jurisdiction in any state of the United
4269	States, will comply with all requirements necessary to give the
4270	court jurisdiction, and will abide by the final decision of the
4271	court or of any appellate court in the event of an appeal.
4272	b. To designate the Chief Financial Officer, pursuant to
4273	s. 48.151, or a designated attorney as its true and lawful
4274	attorney upon whom may be served any lawful process in any
4275	action, suit, or proceeding instituted by or on behalf of the
4276	ceding company.
4277	2. This paragraph is not intended to conflict with or
4278	override the obligation of the parties to a reinsurance
4279	agreement to arbitrate their disputes, if this obligation is
4280	created in the agreement.
4281	(g) If the assuming insurer does not meet the requirements
4282	of paragraph (a) or paragraph (b), the credit permitted by
4283	paragraph (c) or paragraph (d) is not allowed unless the
4284	assuming insurer agrees in the trust agreements, in substance,
4285	to the following conditions:
4286	1. Notwithstanding any other provisions in the trust
4287	instrument, if the trust fund is inadequate because it contains
4288	an amount less than the amount required by paragraph (c), or if
4289	the grantor of the trust has been declared insolvent or placed
4290	into receivership, rehabilitation, liquidation, or similar
4291	proceedings under the laws of its state or country of domicile,
4292	the trustee shall comply with an order of the insurance
4293	regulator with regulatory oversight over the trust or with an
4294	order of a United States court of competent jurisdiction
4295	directing the trustee to transfer to the insurance regulator
4296	with regulatory oversight all of the assets of the trust fund.
4297	2. The assets must be distributed by and claims must be
4298	filed with and valued by the insurance regulator with regulatory
4299	oversight in accordance with the laws of the state in which the
4300	trust is domiciled which are applicable to the liquidation of
4301	domestic insurance companies.
4302	3. If the insurance regulator with regulatory oversight
4303	determines that the assets of the trust fund or any part thereof
4304	are not necessary to satisfy the claims of the United States
4305	ceding insurers of the grantor of the trust, the assets or part
4306	thereof must be returned by the insurance regulator with
4307	regulatory oversight to the trustee for distribution in
4308	accordance with the trust agreement.
4309	4. The grantor shall waive any right otherwise available
4310	to it under United States law which is inconsistent with this
4311	provision.
4312	(4) An asset allowed or a deduction from liability taken
4313	for the reinsurance ceded by an insurer to an assuming insurer
4314	not meeting the requirements of subsections (2) and (3) is
4315	allowed in an amount not exceeding the liabilities carried by
4316	the ceding insurer. The deduction must be in the amount of funds
4317	held by or on behalf of the ceding insurer, including funds held
4318	in trust for the ceding insurer, under a reinsurance contract
4319	with the assuming insurer as security for the payment of
4320	obligations thereunder, if the security is held in the United
4321	States subject to withdrawal solely by, and under the exclusive
4322	control of, the ceding insurer, or, in the case of a trust, held
4323	in a qualified United States financial institution, as defined
4324	in paragraph (5)(b). This security may be in the form of:
4325	(a) Cash in United States dollars;
4326	(b) Securities listed by the Securities Valuation Office
4327	of the National Association of Insurance Commissioners and
4328	qualifying as admitted assets pursuant to part II of chapter
4329	625;
4330	(c) Clean, irrevocable, unconditional letters of credit,
4331	issued or confirmed by a qualified United States financial
4332	institution, as defined in paragraph (5)(a), effective no later
4333	than December 31 of the year for which the filing is made, and
4334	in the possession of, or in trust for, the ceding company on or
4335	before the filing date of its annual statement; or
4336	(d) Any other form of security acceptable to the
4337	department.
4338	(5)(a) For purposes of paragraph (4)(c) regarding letters
4339	of credit, a "qualified United States financial institution"
4340	means an institution that:
4341	1. Is organized or, in the case of a United States
4342	department of a foreign banking organization, is licensed under
4343	the laws of the United States or any state thereof;
4344	2. Is regulated, supervised, and examined by United States
4345	or state authorities having regulatory authority over banks and
4346	trust companies; and
4347	3. Has been determined by either the department or the
4348	Securities Valuation Office of the National Association of
4349	Insurance Commissioners to meet such standards of financial
4350	condition and standing as are considered necessary and
4351	appropriate to regulate the quality of financial institutions
4352	whose letters of credit will be acceptable to the department.
4353	(b) For purposes of those provisions of this law which
4354	specify institutions that are eligible to act as a fiduciary of
4355	a trust, a "qualified United States financial institution" means
4356	an institution that is a member of the Federal Reserve System or
4357	that has been determined by the department to meet the following
4358	criteria:
4359	1. Is organized or, in the case of a United States branch
4360	or agency department of a foreign banking organization, is
4361	licensed under the laws of the United States or any state
4362	thereof and has been granted authority to operate with fiduciary
4363	powers; and
4364	2. Is regulated, supervised, and examined by federal or
4365	state authorities having regulatory authority over banks and
4366	trust companies.
4367	(6) After notice and an opportunity for a hearing, the
4368	department may disallow any credit that it finds would be
4369	contrary to the proper interests of the policyholders or
4370	stockholders of a ceding domestic insurer.
4371	(7) Credit must be allowed to any ceding insurer for
4372	reinsurance otherwise complying with this section only when the
4373	reinsurance is payable by the assuming insurer on the basis of
4374	the liability of the ceding insurer under the contract or
4375	contracts reinsured without diminution because of the insolvency
4376	of the ceding insurer. Such credit must be allowed to the ceding
4377	insurer for reinsurance otherwise complying with this section
4378	only when the reinsurance agreement provides that payments by
4379	the assuming insurer will be made directly to the ceding insurer
4380	or its receiver, except when:
4381	(a) The reinsurance contract specifically provides payment
4382	to the named insured, assignee, or named beneficiary of the
4383	policy issued by the ceding insurer in the event of the
4384	insolvency of the ceding insurer; or
4385	(b) The assuming insurer, with the consent of the named
4386	insured, has assumed the policy obligations of the ceding
4387	insurer as direct obligations of the assuming insurer in
4388	substitution for the obligations of the ceding insurer to the
4389	named insured.
4390	(8) No person, other than the ceding insurer, has any
4391	rights against the reinsurer which are not specifically set
4392	forth in the contract of reinsurance or in a specific written,
4393	signed agreement between the reinsurer and the person.
4394	(9) An authorized insurer may not knowingly accept as
4395	assuming reinsurer any risk covering subject of insurance which
4396	is resident, located, or to be performed in this state and which
4397	is written directly by any insurer not then authorized to
4398	transact such insurance in this state, other than as to surplus
4399	lines insurance lawfully written under part VIII of chapter 626.
4400	(10)(a) Any domestic or commercially domiciled insurer
4401	ceding directly written risks of loss under this section shall,
4402	within 30 days after receipt of a cover note or similar
4403	confirmation of coverage, or, without exception, no later than 6
4404	months after the effective date of the reinsurance treaty, file
4405	with the department one copy of a summary statement containing
4406	the following information about each treaty:
4407	1. The contract period.
4408	2. The nature of the reinsured's business.
4409	3. An indication as to whether the treaty is proportional,
4410	nonproportional, coinsurance, modified coinsurance, or
4411	indemnity, as applicable.
4412	4. The ceding company's loss retention per risk.
4413	5. The reinsured limits.
4414	6. Any special contract restrictions.
4415	7. A schedule of reinsurers assuming the risks of loss.
4416	8. An indication as to whether payments to the assuming
4417	insurer are based on written premiums or earned premiums.
4418	9. Identification of any intermediary or broker used in
4419	obtaining the reinsurance and the department paid to such
4420	intermediary or broker if known.
4421	10. Ceding commissions and allowances.
4422	(b) The summary statement must be signed and attested to
4423	by either the chief executive officer or the chief financial
4424	officer of the reporting insurer. In addition to the summary
4425	statement, the department may require the filing of any
4426	supporting information relating to the ceding of such risks as
4427	it deems necessary. If the summary statement prepared by the
4428	ceding insurer discloses that the net effect of a reinsurance
4429	treaty or treaties, or series of treaties with one or more
4430	affiliated reinsurers entered into for the purpose of avoiding
4431	the following threshold amount, at any time results in an
4432	increase of more than 25 percent to the insurer's surplus as to
4433	policyholders, then the insurer shall certify in writing to the
4434	department that the relevant reinsurance treaty or treaties
4435	comply with the accounting requirements contained in any rule
4436	adopted by the department under subsection (13). If such
4437	certificate is filed after the summary statement of such
4438	reinsurance treaty or treaties, the insurer shall refile the
4439	summary statement with the certificate. In any event, the
4440	certificate must state that a copy of the certificate was sent
4441	to the reinsurer under the reinsurance treaty.
4442	(c) This subsection applies to cessions of directly
4443	written risk or loss. This subsection does not apply to
4444	contracts of facultative reinsurance or to any ceding insurer
4445	with surplus as to policyholders that exceeds $100 million as of
4446	the immediately preceding December 31. Additionally, any ceding
4447	insurer otherwise subject to this section with less than
4448	$500,000 in direct premiums written in this state during the
4449	preceding calendar year or with less than 1,000 policyholders at
4450	the end of the preceding calendar year is exempt from the
4451	requirements of this subsection. However, any ceding insurer
4452	otherwise subject to this section with more than $250,000 in
4453	direct premiums written in this state during the preceding
4454	calendar quarter is not exempt from the requirements of this
4455	subsection.
4456	(d) An authorized insurer not otherwise exempt from the
4457	provisions of this subsection shall provide the information
4458	required by this subsection with underlying and supporting
4459	documentation upon written request of the department.
4460	(e) The department may, upon a showing of good cause,
4461	waive the requirements of this subsection.
4462	(11) If the department finds that a reinsurance agreement
4463	creates a substantial risk of insolvency to either insurer
4464	entering into the reinsurance agreement, the department may by
4465	order require a cancellation of the reinsurance agreement.
4466	(12) No credit shall be allowed for reinsurance with
4467	regard to which the reinsurance agreement does not create a
4468	meaningful transfer of risk of loss to the reinsurer.
4469	(13) The department may adopt rules implementing the
4470	provisions of this section. Rules are authorized to protect the
4471	interests of insureds, claimants, ceding insurers, assuming
4472	insurers, and the public. These rules shall be in substantial
4473	compliance with:
4474	(a) The National Association of Insurance Commissioners
4475	model regulations relating to credit for reinsurance.
4476	(b) The National Association of Insurance Commissioners
4477	Accounting Practices and Procedures Manual as of March 2002 and
4478	subsequent amendments thereto if the methodology remains
4479	substantially consistent.
4480
4481	The department may further adopt rules to provide for transition
4482	from existing requirements for the approval of reinsurers to the
4483	accreditation of reinsurers pursuant to this section.
4484	637.20495 Insurer defined.-As used in ss. 637.2051,
4485	637.2053, 637.2054, and 637.2055, the term "insurer" means and
4486	includes every person as defined in s. 637.1004(14) and title
4487	insurer as defined in s. 637.1004(21) as limited to any domestic
4488	or commercially domiciled insurer who is doing business as an
4489	insurer or who has transacted insurance in this state and
4490	against whom claims arising from that transaction may exist now
4491	or in the future.
4492	637.2051 Notice to comply with written requirements of
4493	department; noncompliance.-
4494	(1) If the department determines that the conditions set
4495	forth in subsection (2) exist, the department shall issue an
4496	order placing the title insurer in administrative supervision,
4497	setting forth the reasons giving rise to the determination, and
4498	specifying that the department is applying and effectuating the
4499	provisions of this chapter. An order issued by the department
4500	pursuant to this subsection entitles the insurer to request a
4501	proceeding under ss. 120.569 and 120.57, and such a request
4502	shall stay the action pending such proceeding.
4503	(2) A title insurer shall be subject to administrative
4504	supervision by the department if upon examination or at any
4505	other time the department determines that:
4506	(a) The insurer is in unsound condition;
4507	(b) The insurer's methods or practices render the
4508	continuance of its business hazardous to the public or to its
4509	insureds; or
4510	(c) The insurer has exceeded its powers granted under its
4511	certificate of authority and applicable law.
4512	(3) Within 15 days after receipt of notice of the
4513	department's determination to proceed under this chapter, an
4514	insurer shall submit to the department a plan to correct the
4515	conditions set forth in the notice. For good cause shown, the
4516	department may extend the 15-day time period for submission of
4517	the plan. If the department and the insurer agree on a
4518	corrective plan, a written agreement shall be entered into to
4519	carry out the plan.
4520	(4) If a title insurer fails to timely submit a plan, the
4521	department may specify the requirements of a plan to address the
4522	conditions giving rise to imposition of administrative
4523	supervision under this chapter. In addition, failure of the
4524	insurer to timely submit a plan is a violation of the provisions
4525	of this chapter punishable in accordance with s. 637.2017.
4526	(5) The plan shall address, but shall not be limited to,
4527	each of the activities of the insurer's business which are set
4528	forth in s. 637.2053.
4529	(6) Any insurer subject to administrative supervision is
4530	expected to avail itself of all reasonably available
4531	reinsurance. Reasonably available reinsurance shall include
4532	unrealized reinsurance, which is defined as reinsurance
4533	recoverable on known losses incurred and due under valid
4534	reinsurance contracts that have not been identified in the
4535	normal course of business and have not been reported in
4536	financial statements filed with the department. Within 90 days
4537	after being placed under administrative supervision, the insurer
4538	shall certify to the Chief Financial Officer that the insurer
4539	has engaged an independent third party to search for unrealized
4540	reinsurance, and that the insurer has made all relevant books
4541	and records available to the third party. The compensation to
4542	the third party may be a percentage of unrealized reinsurance
4543	identified and collected.
4544	(7) If the department and the insurer are unable to agree
4545	on the provisions of the plan, the department may require the
4546	insurer to take such corrective action as may be reasonably
4547	necessary to remove the causes and conditions giving rise to the
4548	need for administrative supervision.
4549	(8) The insurer shall have 60 days, or a longer period of
4550	time as designated by the department but not to exceed 120 days,
4551	after the date of the written agreement or the receipt of the
4552	department's plan within which to comply with the requirements
4553	of the department. At the conclusion of the initial period of
4554	supervision, the department may extend the supervision in
4555	increments of 60 days or longer, not to exceed 120 days, if
4556	conditions justifying supervision exist. Each extension of
4557	supervision shall provide the insurer with a point of entry
4558	pursuant to chapter 120.
4559	(9) The initiation or pendency of administrative
4560	proceedings arising from actions taken under this section shall
4561	not preclude the department from initiating judicial proceedings
4562	to place an insurer in conservation, rehabilitation, or
4563	liquidation or initiating other delinquency proceedings however
4564	designated under the laws of this state.
4565	(10) If it is determined that the conditions giving rise
4566	to administrative supervision have been remedied so that the
4567	continuance of its business is no longer hazardous to the public
4568	or to its insureds, the department shall release the insurer
4569	from supervision.
4570	(11) The department may adopt rules to define standards of
4571	hazardous financial condition and corrective action
4572	substantially similar to that indicated in the National
4573	Association of Insurance Commissioners' 1997 "Model Regulation
4574	to Define Standards and Commissioner's Authority for Companies
4575	Deemed to be in Hazardous Financial Condition," which are
4576	necessary to implement the provisions of this part.
4577	637.2053 Prohibited acts during period of supervision.-The
4578	department may provide that the title insurer may not conduct
4579	the following activities during the period of supervision,
4580	without prior approval by the department:
4581	(1) Dispose of, convey, or encumber any of its assets or
4582	its business in force;
4583	(2) Withdraw any of its bank accounts;
4584	(3) Lend any of its funds;
4585	(4) Invest any of its funds;
4586	(5) Transfer any of its property;
4587	(6) Incur any debt, obligation, or liability;
4588	(7) Merge or consolidate with another company;
4589	(8) Enter into any new reinsurance contract or treaty;
4590	(9) Terminate, surrender, forfeit, convert, or lapse any
4591	insurance policy, certificate, or contract of insurance, except
4592	for nonpayment of premiums due;
4593	(10) Release, pay, or refund premium deposits, accrued
4594	cash or loan values, unearned premiums, or other reserves on any
4595	insurance policy or certificate; or
4596	(11) Make any material change in management.
4597	637.2054 Review.-During the period of supervision, the
4598	title insurer may contest an action taken or proposed to be
4599	taken by the supervisor, specifying the manner wherein the
4600	action complained of would not result in improving the condition
4601	of the insurer. Such request shall not stay the action specified
4602	pending reconsideration of the action by the department. Denial
4603	of the insurer's request upon reconsideration entitles the
4604	insurer to request a proceeding under ss. 120.569 and 120.57.
4605	637.2055 Administrative election of proceedings.-If the
4606	department determines to act under authority of this chapter,
4607	the sequence of its acts and proceedings shall be as set forth
4608	herein. However, it is a purpose and substance of this chapter
4609	to allow the department administrative discretion in the event
4610	of insurer delinquencies and, in furtherance of that purpose,
4611	the department may, in respect to insurer delinquencies or
4612	suspected delinquencies, proceed and administer under the
4613	provisions of this chapter or any other applicable law, or under
4614	the provisions of this chapter in conjunction with other
4615	applicable law, and it is so provided. Nothing contained in this
4616	part or in any other provision of law shall preclude the
4617	department from initiating judicial proceedings to place an
4618	insurer in conservation, rehabilitation, or liquidation
4619	proceedings or other delinquency proceedings however designated
4620	under the laws of this state, regardless of whether the
4621	department has previously initiated administrative supervision
4622	proceedings under this part against the insurer. The entry of an
4623	order of seizure, rehabilitation, or liquidation pursuant to
4624	chapter 631 shall terminate all proceedings pending pursuant to
4625	this part.
4626	637.2056 Other laws; conflicts; meetings between the
4627	department and the supervisor.-During the period of
4628	administrative supervision, the department may meet with a
4629	supervisor appointed under this chapter and with the attorney or
4630	other representative of the supervisor and such meetings are
4631	exempt from the provisions of s. 286.011.
4632	637.2057 Administrative supervision; expenses.-
4633	(1) During the period of supervision the department by
4634	contract or otherwise may appoint a deputy supervisor to
4635	supervise the title insurer.
4636	(2) Each insurer which is subject to administrative
4637	supervision by the department shall pay to the department the
4638	expenses of its administrative supervision at the rates adopted
4639	by the department. Expenses shall include actual travel
4640	expenses, a reasonable living expense allowance, compensation of
4641	the deputy supervisor or other person employed or appointed by
4642	the department for purposes of the supervision, and necessary
4643	attendant administrative costs of the department directly
4644	related to the supervision. The travel expense and living
4645	expense allowance shall be limited to those expenses necessarily
4646	incurred on account of the administrative supervision and shall
4647	be paid by the insurer together with compensation upon
4648	presentation by the department to the insurer of a detailed
4649	account of the charges and expenses after a detailed statement
4650	has been filed by the deputy supervisor or other person employed
4651	or appointed by the department and approved by the department.
4652	(3) All moneys collected from insurers for the expenses of
4653	administrative supervision shall be deposited into the Title
4654	Insurance Regulatory Trust Fund, and the department is
4655	authorized to make deposits from time to time into this fund
4656	from moneys appropriated for the operation of the department.
4657	(4) Notwithstanding the provisions of s. 112.061, the
4658	department is authorized to pay to the deputy supervisor or
4659	person employed or appointed by the department for purposes of
4660	the supervision out of such trust fund the actual travel
4661	expenses, reasonable living expense allowance, and compensation
4662	in accordance with the statement filed with the department by
4663	the deputy supervisor or other person, as provided in subsection
4664	(2), upon approval by the department.
4665	(5) The department may in whole or in part defer payment
4666	of expenses due from the insurer pursuant to this section upon a
4667	showing that payment would adversely impact on the financial
4668	condition of the insurer and jeopardize its rehabilitation. The
4669	payment shall be made by the insurer when the condition is
4670	removed and the payment would no longer jeopardize the insurer's
4671	financial condition.
4672	Section 10. Section 627.777, Florida Statutes, is
4673	transferred, renumbered as section 637.2058, Florida Statutes,
4674	and amended to read:
4675	637.2058 627.777 Approval of forms.-
4676	(1) A title insurer may not issue or agree to issue any
4677	form of title insurance commitment, title insurance policy,
4678	other contract of title insurance, or related form until it is
4679	filed with and approved by the department office. The department
4680	office may not disapprove a title guarantee or policy form on
4681	the ground that it has on it a blank form for an attorney's
4682	opinion on the title.
4683	(2) If a form filed for approval is a form recommended by
4684	the American Land Title Association at the time of the filing,
4685	the department shall approve or disapprove the form within 180
4686	days. If a form filed for approval is a form not recommended by
4687	the American Land Title Association at the time of the filing,
4688	the department shall approve or disapprove the form within 1
4689	year.
4690	(3) At the time of the approval of any form, the
4691	department shall determine if a rate in effect at that time
4692	applies or if the coverages require adoption of a rule pursuant
4693	to s. 637.2064.
4694	(4) The department may revoke approval of any form upon
4695	180 days' notice.
4696	(5) An insurer may not achieve any competitive advantage
4697	over any other insurer or agent as to forms.
4698	Section 11. Section 627.7773, Florida Statutes, is
4699	transferred, renumbered as section 637.2059, Florida Statutes,
4700	and amended to read:
4701	637.2059 627.7773 Accounting and auditing of forms by
4702	title insurers.-
4703	(1) Each title insurer authorized to do business in this
4704	state shall, at least once during each calendar year, require of
4705	each of its title insurance agents or agencies accountings of
4706	all outstanding forms in the agent's or agency's possession of
4707	the types that are specified in s. 627.777.
4708	(2) If the department office has reason to believe that an
4709	audit of outstanding forms should be required of any title
4710	insurer as to a title insurance agent or agency, the department
4711	office may require the title insurer to make a special audit of
4712	the forms. The title insurer shall complete the audit not later
4713	than 60 days after the request is received from the department
4714	office, and shall report the results of the special audit to the
4715	department office no later than 90 days after the request is
4716	received.
4717	Section 12. Section 627.7776, Florida Statutes, is
4718	transferred, renumbered as section 637.2061, Florida Statutes,
4719	and subsection (1) of that section is amended to read:
4720	637.2061 627.7776 Furnishing of supplies; civil
4721	liability.-
4722	(1) A title insurer may not furnish to any person any
4723	blank forms, applications, stationery, or other supplies to be
4724	used in soliciting, negotiating, or effecting contracts of title
4725	insurance on its behalf until that person has received from the
4726	insurer a contract to act as a title insurance agent or agency
4727	and has been licensed by the department, if required by s.
4728	637.3006 626.8417.
4729	Section 13. Section 627.780, Florida Statutes, is
4730	transferred, renumbered as section 637.2063, Florida Statutes,
4731	and subsection (1) of that section is amended to read:
4732	637.2063 627.780 Illegal dealings in premium.-
4733	(1) A person may not knowingly quote, charge, accept,
4734	collect, or receive a premium for title insurance other than the
4735	premium adopted by the department commission, except as provided
4736	in s. 637.1033(7)(b). 626.9541(1)(h)3.b.
4737	Section 14. Section 627.782, Florida Statutes, is
4738	transferred, renumbered as section 637.2064, Florida Statutes,
4739	and amended to read:
4740	637.2064 627.782 Adoption of rates.-
4741	(1) Subject to the rating provisions of this chapter code,
4742	the department commission must adopt a rule specifying the
4743	premium to be charged in this state by title insurers for the
4744	respective types of title insurance contracts and, for policies
4745	issued through agents or agencies, the percentage of such
4746	premium required to be retained by the title insurer which shall
4747	not be less than 30 percent. However, in a transaction subject
4748	to the Real Estate Settlement Procedures Act of 1974, 12 U.S.C.
4749	ss. 2601 et seq., as amended, no portion of the premium
4750	attributable to providing a primary title service shall be paid
4751	to or retained by any person who does not actually perform or is
4752	not liable for the performance of such service.
4753	(2) In adopting premium rates, the department commission
4754	must give due consideration to the following:
4755	(a) The title insurers' loss experience and prospective
4756	loss experience under closing protection letters and policy
4757	liabilities.
4758	(b) A reasonable margin for underwriting profit and
4759	contingencies, including contingent liability under s. 637.2075
4760	627.7865, sufficient to allow title insurers, agents, and
4761	agencies to earn a rate of return on their capital that will
4762	attract and retain adequate capital investment in the title
4763	insurance business and maintain an efficient title insurance
4764	delivery system.
4765	(c) Past expenses and prospective expenses for
4766	administration and handling of risks.
4767	(d) Liability for defalcation.
4768	(e) Other relevant factors.
4769	(3) Rates may be grouped by classification or schedule and
4770	may differ as to class of risk assumed.
4771	(4) Rates may not be excessive, inadequate, or unfairly
4772	discriminatory.
4773	(5) The premium applies to each $100 of insurance issued
4774	to an insured.
4775	(6) The premium rates apply throughout this state.
4776	(7) The department commission shall, in accordance with
4777	the standards provided in subsection (2), review the premium as
4778	needed, but not less frequently than once every 3 years, and
4779	shall, based upon the review required by this subsection, revise
4780	the premium if the results of the review so warrant.
4781	(8) The department commission may, by rule, require
4782	licensees under this part to annually submit statistical
4783	information, including loss and expense data, as the department
4784	determines to be necessary to analyze premium rates, retention
4785	rates, and the condition of the title insurance industry.
4786	Section 15. Section 627.783, Florida Statutes, is
4787	transferred, renumbered as section 637.2065, Florida Statutes,
4788	and amended to read:
4789	637.2065 627.783 Rate deviation.-
4790	(1) A title insurer may petition the department office for
4791	an order authorizing a specific deviation from the adopted
4792	premium. The petition shall be in writing and sworn to and shall
4793	set forth allegations of fact upon which the petitioner will
4794	rely, including the petitioner's reasons for requesting the
4795	deviation. Any authorized title insurer, agent, or agency may
4796	join in the petition for like authority to deviate or may file a
4797	separate petition praying for like authority or opposing the
4798	deviation. The department office shall rule on all such
4799	petitions simultaneously.
4800	(2) If, in the judgment of the department office, the
4801	requested deviation is not justified, the department office may
4802	enter an order denying the petition. An order granting a
4803	petition constitutes an amendment to the adopted premium as to
4804	the petitioners named in the order, and is subject to s.
4805	637.2064 627.782.
4806	Section 16. Section 627.7831, Florida Statutes, is
4807	transferred and renumbered as section 637.2066, Florida
4808	Statutes.
4809	Section 17. Section 627.784, Florida Statutes, is
4810	transferred and renumbered as section 637.2067, Florida
4811	Statutes.
4812	Section 18. Section 627.7841, Florida Statutes, is
4813	transferred and renumbered as section 637.2068, Florida
4814	Statutes.
4815	Section 19. Section 627.7842, Florida Statutes, is
4816	transferred and renumbered as section 637.2069, Florida
4817	Statutes.
4818	Section 20. Section 627.7843, Florida Statutes, is
4819	transferred and renumbered as section 637.2071, Florida
4820	Statutes.
4821	Section 21. Section 627.7845, Florida Statutes, is
4822	transferred, renumbered as section 637.2072, Florida Statutes,
4823	and amended to read:
4824	637.2072 627.7845 Determination of insurability required;
4825	preservation of evidence of title search and examination.-
4826	(1) A title insurer may not issue a title insurance
4827	commitment, endorsement, or title insurance policy until the
4828	title insurer has caused to be made a determination of
4829	insurability based upon the evaluation of a reasonable title
4830	search or a search of the records of a Uniform Commercial Code
4831	filing department office, as applicable, has examined such other
4832	information as may be necessary, and has caused to be made a
4833	determination of insurability of title or the existence,
4834	attachments, perfection, and priority of a Uniform Commercial
4835	Code security interest, including endorsement coverages, in
4836	accordance with sound underwriting practices.
4837	(2) The title insurer shall cause the evidence of the
4838	determination of insurability and the reasonable title search or
4839	search of the records of a Uniform Commercial Code filing
4840	department office to be preserved and retained in its files or
4841	in the files of its title insurance agent or agency for a period
4842	of not less than 7 years after the title insurance commitment,
4843	title insurance policy, or guarantee of title was issued. The
4844	title insurer or agent or agency must produce the evidence
4845	required to be maintained by this subsection at its departments
4846	offices upon the demand of the department office. Instead of
4847	retaining the original evidence, the title insurer or the title
4848	insurance agent or agency may, in the regular course of
4849	business, establish a system under which all or part of the
4850	evidence is recorded, copied, or reproduced by any photographic,
4851	photostatic, microfilm, microcard, miniature photographic, or
4852	other process which accurately reproduces or forms a durable
4853	medium for reproducing the original.
4854	(3) The title insurer or its agent or agency must maintain
4855	a record of the actual premium charged for issuance of the
4856	policy and any endorsements in its files for a period of not
4857	less than 7 years. The title insurer, agent, or agency must
4858	produce the record at its department office upon demand of the
4859	department office.
4860	(4) This section does not apply to an insurer assuming no
4861	primary liability in a contract of reinsurance or to an insurer
4862	acting as a coinsurer if any other coinsuring insurer has
4863	complied with this section.
4864	Section 22. Section 627.785, Florida Statutes, is
4865	transferred and renumbered as section 637.2073, Florida
4866	Statutes.
4867	Section 23. Section 627.786, Florida Statutes, is
4868	transferred, renumbered as section 637.2074, Florida Statutes,
4869	and subsection (3) of that section is amended to read:
4870	637.2074 627.786 Transaction of title insurance and any
4871	other kind of insurance prohibited.-
4872	(3) Subsection (1) does not preclude a title insurer from
4873	providing instruments to any prospective insured, in the form
4874	and content approved by the department office, under which the
4875	title insurer assumes liability for loss due to the fraud of,
4876	dishonesty of, misappropriation of funds by, or failure to
4877	comply with written closing instructions by, its contract
4878	agents, agencies, or approved attorneys in connection with a
4879	real property transaction for which the title insurer is to
4880	issue a title insurance policy.
4881	Section 24. Section 627.7865, Florida Statutes, is
4882	transferred, renumbered as section 637.2075, Florida Statutes,
4883	and amended to read:
4884	637.2075 627.7865 Title insurer assessments.-
4885	(1) As a condition of doing business in this state, each
4886	title insurer shall be liable for an assessment to pay all
4887	unpaid title insurance claims and expenses of administering and
4888	settling such claims on real property in this state for any
4889	title insurer that is ordered into liquidation under chapter 631
4890	which is liquidated with unpaid outstanding claims. The office
4891	shall assess all title insurers on a pro rata basis determined
4892	by their writings in this state for amounts necessary to pay the
4893	claims. A title insurer is not required to pay an amount in
4894	excess of one-tenth of its surplus as to policyholders.
4895	(2) The receiver or any title insurer may apply to the
4896	court for an order of liquidation if it appears that
4897	rehabilitation is not viable.
4898	(3) The following provisions apply upon issuance of a
4899	court order directing liquidation of an insurer:
4900	(a) The policies issued by the title insurer in
4901	liquidation shall remain in force.
4902	(b) The department shall order an assessment upon a
4903	judicially approved request by the receiver on an annual basis
4904	in an amount that the receiver deems sufficient, together with
4905	other assets of the estate, including available reinsurance, for
4906	the payment of known claims, loss adjustment expenses, and the
4907	cost of administration of the liquidation expenses.
4908	(c) Each title insurer doing business in this state shall
4909	be assessed pro rata based upon the total title insurance
4910	premiums written in this state, excluding premiums on
4911	reinsurance, as reported to the department for the most recent
4912	calendar year.
4913	(d) Assessments shall be paid to the receiver within 45
4914	days after notice of the assessment or pursuant to an approved
4915	quarterly installment plan. Any insurer that elects to pay an
4916	assessment on an installment plan shall also pay a financing
4917	charge to be determined by the receiver.
4918	(e) The department shall order an emergency assessment
4919	upon a judicially approved request by the receiver. The total of
4920	any emergency assessment, when added to any annual assessment in
4921	a single calendar year, may not exceed the limitation in
4922	paragraph (f).
4923	(f) A title insurer may not be required to pay an
4924	assessment or multiple assessments in any 1 year that exceeds 4
4925	percent of its surplus to policyholders as of the end of the
4926	previous calendar year or more than 10 percent of its surplus to
4927	policyholders during a 60-month period. The 10-percent
4928	limitation shall be calculated as the sum of the percentages of
4929	surplus to policyholders assessed over such 60-month period. The
4930	department may exempt or limit the assessment of a title insurer
4931	if such assessment would result in a reduction to surplus as to
4932	policyholders below the minimum required to maintain the
4933	insurer's certificate of authority in this state.
4934	(g) Once ordered by the department, assessments and
4935	emergency assessments shall be considered assets of the estate
4936	and subject to the provisions of s. 631.154.
4937	(4) The receiver shall enter into one or more contracts
4938	with a title insurer licensed in this state for the purposes of
4939	serving as the point of contact for policyholders of the
4940	insolvent insurer and the administration and settlement of
4941	claims. The receiver shall make available information regarding
4942	unpaid claims on a quarterly basis. The department shall appoint
4943	an oversight committee consisting of representatives from the
4944	assessed title insurers to review material claims settlements
4945	prior to payment and such other actions as the department shall
4946	deem appropriate.
4947	(5) Unless ordered into liquidation, the title insurer in
4948	rehabilitation may not be released from rehabilitation until all
4949	assessments have been repaid.
4950	Section 25. Section 627.791, Florida Statutes, is
4951	transferred, renumbered as section 637.2076, Florida Statutes,
4952	and amended to read:
4953	637.2076 627.791 Penalties against title insurers for
4954	violations by persons or entities not licensed.-A title insurer
4955	is subject to the penalties in ss. 637.2017(2) and 637.2021
4956	624.418(2) and 624.4211 for any violation of a lawful order or
4957	rule of the department office or commission, or for any
4958	violation of this chapter code, committed by:
4959	(1) A person, firm, association, corporation, cooperative,
4960	joint-stock company, or other legal entity not licensed under
4961	this part when issuing and countersigning commitments or
4962	policies of title insurance on behalf of the title insurer.
4963	(2) An attorney when issuing and countersigning
4964	commitments or policies of title insurance on behalf of the
4965	title insurer.
4966	Section 26. Section 627.792, Florida Statutes, is
4967	transferred, renumbered as section 637.2077, Florida Statutes,
4968	and amended to read:
4969	637.2077 627.792 Liability of title insurers for
4970	defalcation by title insurance agents or agencies.-A title
4971	insurer is liable for the defalcation, conversion, or
4972	misappropriation by a licensed title insurance agent or agency
4973	of funds held in trust by the agent or agency pursuant to s.
4974	637.3029 626.8473. If the agent or agency is an agent or agency
4975	for two or more title insurers, any liability shall be borne by
4976	the title insurer upon which a title insurance commitment or
4977	policy was issued prior to the illegal act. If no commitment or
4978	policy was issued, each title insurer represented by the agent
4979	or agency at the time of the illegal act shares in the liability
4980	in the same proportion that the premium remitted to it by the
4981	agent or agency during the 1-year period before the illegal act
4982	bears to the total premium remitted to all title insurers by the
4983	agent or agency during the same time period.
4984	Section 27. Section 627.793, Florida Statutes, is
4985	transferred, renumbered as section 637.2078, Florida Statutes,
4986	and amended to read:
4987	637.2078 627.793 Rulemaking authority.-The department
4988	commission may adopt rules implementing the provisions of this
4989	chapter part.
4990	Section 28. Section 627.796, Florida Statutes, is
4991	transferred and renumbered as section 637.2079, Florida
4992	Statutes.
4993	Section 29. Section 627.797, Florida Statutes, is
4994	transferred, renumbered as section 637.2081, Florida Statutes,
4995	and subsection (1) of that section is amended to read:
4996	637.2081 627.797 Exempt title insurance agent list.-
4997	(1) Every insurer shall file with the department a list
4998	containing the name and address of each appointed agent who is
4999	exempt from licensure under s. 637.3006(4) 626.8417(4) and who
5000	issues or countersigns binders, commitments, title insurance
5001	policies, or guarantees of title.
5002	Section 30. Section 627.798, Florida Statutes, is
5003	transferred, renumbered as section 637.2082, Florida Statutes,
5004	and amended to read:
5005	637.2082 627.798 Rulemaking authority.-The department
5006	commission shall by rule adopt a form to be used to provide
5007	notice to a purchaser-mortgagor that the purchaser-mortgagor is
5008	not protected by the title policy of the mortgagee.
5009	Section 31. Sections 637.2083, 637.2084, 637.2085,
5010	637.2086, 637.2087, 637.2088, 637.2089, and 637.2091, Florida
5011	Statutes, are created to read:
5012	637.2083 Assets not allowed.-In addition to assets
5013	impliedly excluded by the provisions of s. 625.012, the
5014	following expressly shall not be allowed as assets in any
5015	determination of the financial condition of a title insurer:
5016	(1) Trade names, patents, agreements not to compete, and
5017	other like intangible assets.
5018	(2) Advances (other than policy loans) to officers and
5019	directors, whether secured or not, and advances to employees,
5020	agents, and other persons on personal security only.
5021	(3) Stock of such insurer, owned by it, or any material
5022	equity therein or loans secured thereby, or any material
5023	proportionate interest in such stock acquired or held through
5024	the ownership by such insurer of an interest in another firm,
5025	corporation, or business unit.
5026	(4) Furniture, fixtures, furnishings, safes, vehicles,
5027	libraries, stationery, literature, and supplies, other than data
5028	processing and accounting systems authorized under s.
5029	625.012(11), except in the case of title insurers such materials
5030	and plants as the insurer is expressly authorized to invest in
5031	under s. 637.20073 and except, in the case of any insurer, such
5032	personal property as the insurer is permitted to hold pursuant
5033	to part II of this chapter, or which is acquired through
5034	foreclosure of chattel mortgages acquired pursuant to s.
5035	625.329, or which is reasonably necessary for the maintenance
5036	and operation of real estate lawfully acquired and held by the
5037	insurer other than real estate used by it for home office,
5038	branch office, and similar purposes.
5039	(5) The amount, if any, by which the aggregate book value
5040	of investments as carried in the ledger assets of the insurer
5041	exceeds the aggregate value thereof as determined under this
5042	code.
5043	(6) Bonds, notes, or other evidences of indebtedness which
5044	are secured by mortgages or deeds of trust which are in default.
5045	(7) Prepaid and deferred expenses.
5046	637.2084 Power to contract; purchase of title insurance by
5047	or for minor.-
5048	(1) Any person of competent legal capacity may contract
5049	for title insurance.
5050	(2) Any minor of the age of 15 years or more, as
5051	determined by the nearest birthday, may, notwithstanding his or
5052	her minority, contract for title insurance on his or her own
5053	property.
5054	(3) If any minor mentioned in subsection (2) is possessed
5055	of an estate that is being administered by a guardian or
5056	curator, such contract shall not be binding upon such estate as
5057	to payment of premiums, except as and when consented to by the
5058	guardian or curator and approved by the probate court of the
5059	county in which the administration of the estate is pending; and
5060	such consent and approval shall be required as to each premium
5061	payment.
5062	637.2085 Charter, bylaw provisions.-A title insurance
5063	policy may not contain any provision purporting to make any
5064	portion of the charter, bylaws, or other constituent document of
5065	the title insurer a part of the contract unless such portion is
5066	set forth in full in the policy. Any policy provision in
5067	violation of this section is invalid.
5068	637.2086 Execution of policies.-
5069	(1) Every title insurance policy shall be executed in the
5070	name of and on behalf of the insurer by its officer, attorney in
5071	fact, employee, or representative duly authorized by the title
5072	insurer.
5073	(2) A facsimile signature of any such executing individual
5074	may be used in lieu of an original signature.
5075	(3) A title insurance contract that is otherwise valid may
5076	not be rendered invalid by reason of the apparent execution
5077	thereof on behalf of the title insurer by the imprinted
5078	facsimile signature of an individual not authorized so to
5079	execute as of the date of the policy.
5080	637.2087 Construction of policies.-
5081	(1) Every title insurance contract shall be construed
5082	according to the entirety of its terms and conditions as set
5083	forth in the policy and as amplified, extended, or modified by
5084	any application therefor or any rider or endorsement thereto.
5085	(2) If a title insurer or licensee advertises title
5086	insurance policy in a language other than English, the
5087	advertisements shall not be construed to modify or change the
5088	insurance policy written in English. The advertisement must
5089	disclose that the policy written in English controls in the
5090	event of a dispute and that statements contained in the
5091	advertisement do not necessarily, as a result of possible
5092	linguistic differences, reflect the contents of the policy
5093	written in English. Nothing in this subsection shall affect the
5094	provisions of s. 637.1033 relating to misrepresentations and
5095	false advertising of insurance policies.
5096	637.2088 Payment of judgment by title insurer; penalty for
5097	failure.-
5098	(1) Every judgment or decree for the recovery of money
5099	entered in any of the courts of this state against any
5100	authorized title insurer shall be fully satisfied within 60 days
5101	after the entry thereof or, in the case of an appeal from such
5102	judgment or decree, within 60 days after the affirmance of the
5103	same by the appellate court.
5104	(2) If the judgment or decree is not satisfied as required
5105	under subsection (1), and proof of such failure to satisfy is
5106	made by filing with the department a certified transcript of the
5107	docket of the judgment or decree together with a certificate by
5108	the clerk of the court wherein the judgment or decree was
5109	entered that the judgment or decree remains unsatisfied, in
5110	whole or in part, after the time aforesaid, the department shall
5111	forthwith revoke the title insurer's certificate of authority.
5112	The department shall not issue to such insurer any new
5113	certificate of authority until the judgment or decree is wholly
5114	paid and satisfied and proof thereof filed with the department
5115	under the official certificate of the clerk of the court wherein
5116	the judgment was recovered, showing that the same is satisfied
5117	of record, and until the expenses and fees incurred in the case
5118	are also paid by the insurer.
5119	637.2089 Attorney's fee.-
5120	(1) Upon the rendition of a judgment or decree by any of
5121	the courts of this state against a title insurer and in favor of
5122	any named or omnibus insured or the named beneficiary under a
5123	policy or contract executed by the title insurer, the trial
5124	court or, in the event of an appeal in which the insured or
5125	beneficiary prevails, the appellate court shall adjudge or
5126	decree against the title insurer and in favor of the insured or
5127	beneficiary a reasonable sum as fees or compensation for the
5128	insured's or beneficiary's attorney prosecuting the suit in
5129	which the recovery is had.
5130	(2) When so awarded, compensation or fees of the attorney
5131	shall be included in the judgment or decree rendered in the
5132	case.
5133	637.2091 Title insurance business exclusive.-
5134	(1) A domestic title insurer may not engage directly or
5135	indirectly in any business other than the title insurance
5136	business and business activities reasonably and necessarily
5137	incidental to such title insurance business.
5138	(2) Notwithstanding subsection (1), a title insurer may
5139	engage in business as an escrow agent.
5140	(3) A business trust whose declaration of trust was filed
5141	with the Secretary of State prior to January 1, 1959, and which,
5142	at the time of the adoption of the Florida Insurance Code, held
5143	a certificate of authority as a title insurer may qualify as an
5144	insurer for lawyers' professional liability insurance by
5145	complying with the applicable provisions of the code.
5146	Section 32. Part III of chapter 637, Florida Statutes,
5147	consisting of sections 637.3001, 637.3002, 637.3003, 637.30041,
5148	637.30042, 637.30043, 637.30044, 637.30045, 637.30046,
5149	637.30047, 637.30048, 637.30049, 637.3005, 637.3006, 637.3007,
5150	637.3008, 637.3009, 637.30093, 637.30094, 637.30095, 637.30096,
5151	637.30097, 637.3011, 637.3012, 637.30125, 637.3013, 637.30133,
5152	637.30135, 637.3014, 637.30142, 637.30143, 637.30144, 637.30145,
5153	637.30146, 637.30147, 637.3015, 637.3016, 637.3017, 637.3018,
5154	637.3019, 637.3021, 637.3022, 637.3023, 637.3024, 637.3025,
5155	637.3026, 637.3027, 637.3028, 637.3029, and 637.30295, is
5156	created and entitled "TITLE INSURANCE AGENT AND AGENCY LICENSING
5157	AND ADMINISTRATION."
5158	Section 33. Section 626.8412, Florida Statutes, is
5159	transferred, renumbered as section 637.3001, Florida Statutes,
5160	and amended to read:
5161	637.3001 626.8412 License and appointments required.-
5162	(1) Except as otherwise provided in this part:
5163	(a) Title insurance business may be conducted sold only by
5164	a title insurer or a licensed title insurance agent employed by
5165	a licensed and appointed title insurance agency or employed by a
5166	title insurer.
5167	(b) A title insurance agent may not provide sell a title
5168	insurance policy for issued by an insurer for which the agent
5169	and agency does not hold a current appointment.
5170	(2) Except as otherwise provided in this part, a person,
5171	other than a title insurance agency or an employee of a title
5172	insurance agency, may not perform any of the functions of a
5173	title insurance agency without a title insurance agency license.
5174	(3) Each title insurance agency shall annually remit the
5175	administrative surcharge required in s. 637.2031(14)(e) prior to
5176	January 30 of each year.
5177	(a) Noncompliance with the payment of the fees as required
5178	in s. 637.2031(14)(e) shall result in the immediate suspension
5179	of the title insurance agency's appointments to represent an
5180	insurer.
5181	(b) Absent other cause for suspension, the appointments of
5182	a title insurance agency may be reinstated upon receipt of the
5183	amount due for the administrative surcharge plus any penalties
5184	imposed.
5185	(c) A penalty may be imposed to reinstate the appointments
5186	of an agency.
5187	Section 34. Section 626.8413, Florida Statutes, is
5188	transferred, renumbered as section 637.3002, Florida Statutes,
5189	and amended to read:
5190	637.3002 626.8413 Title insurance agents; certain names
5191	prohibited.-After October 1, 1985, A title insurance agent as
5192	defined in s. 626.841 shall not adopt a name which contains the
5193	words "title insurance," "title guaranty," or "title guarantee,"
5194	unless such words are followed by the word "agent" or "agency"
5195	in the same size and type as the words preceding them. This
5196	section does not apply to a title insurer acting as an agent for
5197	another title insurer.
5198	Section 35. Sections 637.3003, 637.30041, 637.30042,
5199	637.30043, 637.30044, 637.30045, 637.30046, 637.30047,
5200	637.30048, and 637.30049, Florida Statutes, are created to read:
5201	637.3003 Firm, corporate, and business names; officers;
5202	associates; notice of changes.-
5203	(1) Any licensed title agent doing business under a firm
5204	or corporate name or under any business name other than his or
5205	her own individual name shall, within 30 days after the initial
5206	transaction of insurance under such business name, file with the
5207	department, on forms adopted and furnished by the department, a
5208	written statement of the firm, corporate, or business name being
5209	used, the address of any office or offices or places of business
5210	making use of such name, and the name and social security number
5211	of each officer and director of the corporation and of each
5212	individual associated in such firm or corporation as to the
5213	insurance transactions of such firm or corporation or in the
5214	use of such business name.
5215	(2) In the event of any change of such name, a change of
5216	any of the officers or directors, a change of any of such
5217	addresses, or a change in the personnel associated with such
5218	firm or corporation, written notice of such change shall be
5219	filed with the department within 30 days by or on behalf of
5220	those licensees terminating any such firm, corporation, or
5221	business name or continuing to operate under such name.
5222	(3) Within 30 days after a change, any licensed title
5223	insurance agency shall notify the department of any change in
5224	the information contained in the application filed pursuant to s.
5225	637.3007.
5226	637.30041 Insurance agency names; disapproval.-The
5227	department may disapprove the use of any true or fictitious
5228	name, other than the bona fide natural name of an individual, by
5229	any title insurance agency on any of the following grounds:
5230	(1) The name interferes with or is too similar to a
5231	name already filed and in use by another title insurance agency
5232	or title insurer.
5233	(2) The use of the name may mislead the public in any
5234	respect.
5235	(3) The name states or implies that the title insurance
5236	agency is an insurer, motor club, hospital service plan, state
5237	or federal agency, charitable organization, or entity that
5238	primarily provides advice and counsel rather than sells or
5239	solicits title insurance, or is entitled to engage in title
5240	insurance activities not permitted under licenses held or
5241	applied for. This subsection does not prohibit the use of the
5242	word "state" or "states" in the name of the agency. The use of
5243	the word "state" or "states" in the name of an agency does not
5244	imply that the agency is a state agency.
5245	637.30042 Examination requirement; exemptions.-The
5246	department may not issue any license as a title insurance agent
5247	to any individual who has not qualified for, taken, and
5248	passed to the satisfaction of the department a written
5249	examination of the scope prescribed in s. 637.30044.
5250	637.30043 Eligibility; application for examination.-
5251	(1) A person may not be permitted to take an
5252	examination for license until his or her application for
5253	examination or application for the license has been approved
5254	and the required fees have been received by the department
5255	or a person designated by the department to administer the
5256	examination.
5257	(2) A person required to take an examination for a license
5258	may be permitted to take an examination prior to submitting an
5259	application for licensure pursuant to s. 637.3006 by submitting
5260	an application for examination through the department's
5261	Internet website. In the application, the applicant shall set
5262	forth:
5263	(a) His or her full name, age, social security number,
5264	residence address, business address, and mailing address.
5265	(b) The type of license that the applicant intends to
5266	apply for.
5267	(c) The name of any required pre-licensing course he or
5268	she has completed or is in the process of completing.
5269	(d) The method by which the applicant intends to qualify
5270	for the type of license if other than by completing a pre-
5271	licensing course.
5272	(e) The applicant's gender.
5273	(f) The applicant's native language.
5274	(g) The highest level of education achieved by the
5275	applicant.
5276	(h) The applicant's race or ethnicity. However, the
5277	application must contain a statement that an applicant is not
5278	required to disclose his or her race or ethnicity, gender, or
5279	native language, that he or she will not be penalized for not
5280	making such disclosure, and that the department will use this
5281	information exclusively for research and statistical purposes
5282	and to improve the quality and fairness of the examinations.
5283	(3) Each application shall be accompanied by payment of
5284	the applicable examination fee.
5285	637.30044 Scope of examination.-
5286	(1) Each examination for a license as a title insurance
5287	agent, shall be of such scope as is deemed by the department to
5288	be reasonably necessary to test the applicant's ability and
5289	competence and knowledge of title insurance and real property
5290	transactions of the duties and responsibilities of such a
5291	licensee, and of the pertinent provisions of the laws of this
5292	state.
5293	(2) Examinations must cover title insurance, abstracting,
5294	title searches, examination of title, closing procedures, and
5295	escrow handling.
5296	(3) This section applies to any person who submits an
5297	application for license and to any person who submits an
5298	application for examination prior to filing an application
5299	for license.
5300	637.30045 Time and place of examination; notice.-
5301	(1) The department or a person designated by the
5302	department shall mail written notice of the time and place of
5303	the examination to each applicant for examination and each
5304	applicant for license required to take an examination who is
5305	eligible to take the examination as of the examination date. The
5306	notice shall be mailed, postage prepaid, and addressed to the
5307	applicant at his or her address shown on the application for
5308	license or at such other address as requested by the applicant
5309	in writing filed with the department prior to the mailing of the
5310	notice. Notice shall be deemed given when mailed.
5311	(2) The examination shall be held in an adequate and
5312	designated examination center in this state.
5313	(3) The department shall make an examination available to
5314	the applicant, to be taken as soon as reasonably possible after
5315	the applicant is eligible to take the examination. Any
5316	examination required under this part shall be available in this
5317	state at a designated examination center.
5318	637.30046 Conduct of examination.-
5319	(1) The applicant for license or the applicant for
5320	examination shall appear in person and personally take the
5321	examination for license at the time and place specified by
5322	the department or by a person designated by the department.
5323	(2) The examination shall be conducted by an employee of
5324	the department or a person designated by the department for that
5325	purpose.
5326	(3) The questions propounded shall be as prepared by the
5327	department, or by a person designated by the department for that
5328	purpose, consistent with the applicable provisions of this code.
5329	(4) All examinations shall be given and graded in a
5330	fair and impartial manner and without unfair discrimination in
5331	favor of or against any particular applicant.
5332	637.30047 Printing of examinations or related materials to
5333	preserve examination security.-A contract let for the
5334	development, administration, or grading of examinations or
5335	related materials by the department pursuant to the agent,
5336	customer representative, or adjuster licensing and examination
5337	provisions of this code may include the printing or furnishing
5338	of such examinations or related materials in order to preserve
5339	security. Any such contract shall be let as a contract for a
5340	contractual service pursuant to s. 287.057.
5341	637.30048 Examination fee; determination, refund.-
5342	(1) Prior to being permitted to take an examination, each
5343	applicant who is subject to examination shall pay an examination
5344	fee to the department or a person designated by the department.
5345	A separate and additional examination fee shall be payable for
5346	each separate class of license applied for, notwithstanding that
5347	all such examinations are taken on the same date and at the same
5348	place.
5349	(2) The fee for examination is not refundable.
5350	637.30049 Reexamination.-
5351	(1) Any applicant for license or applicant for examination
5352	who has taken an examination and failed to make a passing grade,
5353	or failed to appear for the examination or to take or complete
5354	the examination at the time and place specified in the
5355	notice of the department, may take additional examinations
5356	after filing with the department an application for
5357	reexamination together with applicable fees. The failure of an
5358	applicant to pass an examination or the failure to appear for
5359	the examination or to take or complete the examination does not
5360	preclude the applicant from taking subsequent examinations.
5361	(2) The department may require any individual whose
5362	license as an agent has expired or has been suspended to pass
5363	an examination prior to reinstating or relicensing the
5364	individual as to any class of license. The examination fee
5365	shall be paid as to each examination.
5366	Section 36. Section 626.8414, Florida Statutes, is
5367	transferred and renumbered as section 637.3005, Florida
5368	Statutes.
5369	Section 37. Section 626.8417, Florida Statutes, is
5370	transferred, renumbered as section 637.3006, Florida Statutes,
5371	and amended to read:
5372	637.3006 626.8417 Title insurance agent licensure;
5373	exemptions.-
5374	(1) A person may not act as or hold himself or herself out
5375	to be a title insurance agent as defined in s. 626.841 until a
5376	valid title insurance agent's license has been issued to that
5377	person by the department.
5378	(2) An application for license as a title insurance agent
5379	shall be filed with the department on printed forms furnished by
5380	the department.
5381	(3) The department shall not grant or issue a license as
5382	title agent to any individual found by it to be untrustworthy or
5383	incompetent, who does not meet the qualifications for
5384	examination specified in s. 637.3005 626.8414, or who does not
5385	meet the following qualifications:
5386	(a) Within the 4 years immediately preceding the date of
5387	the application for license, the applicant must have completed a
5388	40-hour classroom course in title insurance, 3 hours of which
5389	shall be on the subject matter of ethics, as approved by the
5390	department, or must have had at least 12 months of experience in
5391	responsible title insurance duties, while working in the title
5392	insurance business as a substantially full-time, bona fide
5393	employee of a title agency, title agent, title insurer, or
5394	attorney who conducts real estate closing transactions and
5395	issues title insurance policies but who is exempt from licensure
5396	pursuant to paragraph (4)(a). If an applicant's qualifications
5397	are based upon the periods of employment at responsible title
5398	insurance duties, the applicant must submit, with the
5399	application for license on a form prescribed by the department,
5400	the affidavit of the applicant and of the employer setting forth
5401	the period of such employment, that the employment was
5402	substantially full time, and giving a brief abstract of the
5403	nature of the duties performed by the applicant.
5404	(b) The applicant must have passed an any examination for
5405	licensure required under s. 626.221.
5406	(4)(a) Title insurers or attorneys duly admitted to
5407	practice law in this state and in good standing with The Florida
5408	Bar, or law firms employing such attorneys, are exempt from the
5409	provisions of this chapter with regard to title insurance
5410	licensing and appointment requirements.
5411	(b) An insurer may designate a corporate officer of the
5412	insurer to occasionally issue and countersign binders,
5413	commitments, title insurance policies, or guarantees of title. A
5414	designated officer is exempt from the provisions of this chapter
5415	with regard to title insurance licensing and appointment
5416	requirements while the officer is acting within the scope of the
5417	designation.
5418	(c) If an attorney or attorneys own a corporation or other
5419	legal entity which is doing business as a title insurance agency
5420	other than an entity engaged in the active practice of law, the
5421	agency must be licensed and appointed as a title insurance
5422	agency with an agent in charge or an attorney designated for the
5423	agency agent.
5424	Section 38. Section 626.8418, Florida Statutes, is
5425	transferred, renumbered as section 637.3007, Florida Statutes,
5426	and subsection (1) of that section is amended to read:
5427	637.3007 626.8418 Application for title insurance agency
5428	license.-Prior to doing business in this state as a title
5429	insurance agency, a title insurance agency must meet all of the
5430	following requirements:
5431	(1) The applicant must file with the department an
5432	application for a license as a title insurance agency, on
5433	printed forms furnished by the department, that includes all of
5434	the following:
5435	(a) The name of each majority owner, partner, officer, and
5436	director of the agency.
5437	(b) The residence address of each person required to be
5438	listed under paragraph (a).
5439	(c) The name of the agency and its principal business
5440	address.
5441	(d) The location of each title insurance agency office and
5442	the name under which each title insurance agency office conducts
5443	or will conduct business.
5444	(e) The name of each title insurance agent to be in full-
5445	time charge of a title insurance an agency office and
5446	specification of which title insurance agency office.
5447	(f) Such additional information as the department requires
5448	by rule to ascertain the trustworthiness and competence of
5449	persons required to be listed on the application and to
5450	ascertain that such persons meet the requirements of this
5451	chapter code.
5452	Section 39. Section 626.8419, Florida Statutes, is
5453	transferred and renumbered as section 637.3008, Florida
5454	Statutes.
5455	Section 40. Section 626.842, Florida Statutes, is
5456	transferred and renumbered as section 637.3009, Florida
5457	Statutes.
5458	Section 41. Sections 637.30093, 637.30094, 637.30095,
5459	637.30096, and 637.30097, Florida Statutes, are created to read:
5460	637.30093 Continuing education required; application;
5461	exceptions; requirements; penalties.-
5462	(1) The purpose of this section is to establish
5463	requirements and standards for continuing education courses for
5464	persons licensed to solicit or sell title insurance in this
5465	state.
5466	(2)(a) Each person subject to the provisions of this
5467	section must complete a minimum of 10 hours of continuing
5468	education courses every 2 years in title insurance courses
5469	approved by this state. Each person subject to the provisions
5470	of this section must complete, as part of his or her required
5471	number of continuing education hours, 2 hours of continuing
5472	education, approved by the department, every 2 years on the
5473	subject matter of ethics, rules, or state and federal regulatory
5474	compliance matters relating to title insurance and closing
5475	services.
5476	(b) Any person who holds a license as a title agent must
5477	complete 10 hours of continuing education courses every 2 years.
5478	(c) Except as provided in paragraph (d), compliance with
5479	continuing education requirements is a condition precedent to
5480	the issuance, continuation, reinstatement, or renewal of any
5481	appointment subject to this chapter.
5482	(d) A person teaching any approved course of instruction
5483	or lecturing at any approved seminar and attending the entire
5484	course or seminar shall qualify for the same number of classroom
5485	hours as would be granted to a person taking and successfully
5486	completing such course, seminar, or program. Credit shall be
5487	limited to the number of hours actually taught unless a person
5488	attends the entire course or seminar. Any person who is an
5489	official of or employed by any governmental entity in this
5490	state and serves as a professor, instructor, or in any other
5491	position or office the duties and responsibilities of which are
5492	determined by the department to require monitoring and review of
5493	insurance laws or insurance regulations and practices shall be
5494	exempt from this section.
5495	(e) Excess classroom hours accumulated during any
5496	compliance period may be carried forward to the next compliance
5497	period.
5498	(f) For good cause shown, the department may grant an
5499	extension of time during which the requirements imposed by this
5500	section may be completed, but such extension of time may not
5501	exceed 1 year.
5502	(3) The following courses may be completed in order to
5503	meet the continuing education course requirements:
5504	(a) In the case of title agents, completion of the
5505	Certified Land Closer (CLC) professional designation program
5506	and receipt of the designation: 24 hours.
5507	(b) In the case of title agents, completion of the
5508	Certified Land Searcher (CLS) professional designation program
5509	and receipt of the designation: 24 hours.
5510	(c) Any insurance-related course which is approved by the
5511	department and taught by an accredited college or university per
5512	credit hour granted: 12 hours.
5513	(d) Any course, including courses relating to agency
5514	management or errors and omissions, developed or sponsored by
5515	any authorized insurer or recognized agents' association or
5516	insurance trade association or any independent study
5517	program of instruction, subject to approval by the department,
5518	qualifies for the equivalency of the number of classroom hours
5519	assigned to such course by the department. However, unless
5520	otherwise provided in this section, continuing education
5521	course hours may not be credited toward meeting the
5522	requirements of this section unless the course is provided
5523	by classroom instruction or results in a monitored examination.
5524	(e) A monitored examination is not required for:
5525	1. An independent study program of instruction presented
5526	through interactive, online technology that the department
5527	determines has sufficient internal testing to validate the
5528	student's full comprehension of the materials presented; or
5529	2. An independent study program of instruction presented on
5530	paper or in printed material that imposes a final closed book
5531	examination that meets the requirements of the department's rule
5532	for self-study courses. The examination may be taken without a
5533	proctor provided the student presents to the provider a sworn
5534	affidavit certifying that the student did not consult any
5535	written materials or receive outside assistance of any kind or
5536	from any person, directly or indirectly, while taking the
5537	examination. If the student is an employee of an agency or
5538	corporate entity, the student's supervisor or a manager or
5539	owner of the agency or corporate entity must also sign the sworn
5540	affidavit. If the student is self-employed, a sole proprietor,
5541	or a partner, or if the examination is administered online, the
5542	sworn affidavit must also be signed by a disinterested third
5543	party. The sworn affidavit must be received by the approved
5544	provider prior to reporting continuing education credits to
5545	the department.
5546	(f) Each person or entity sponsoring a course for
5547	continuing education credit shall furnish, within 30 days
5548	after completion of the course, in a form satisfactory to the
5549	department or its designee, a written and certified roster
5550	showing the name and license number of all persons
5551	successfully completing such course and requesting credit,
5552	accompanied by the required fee.
5553	(4) The department shall refuse to renew the appointment
5554	of any agent who has not had his or her continuing education
5555	requirements certified unless the agent has been granted an
5556	extension by the department. The department may not issue a new
5557	appointment of the same or similar type, with any insurer, to an
5558	agent who was denied a renewal appointment for failure to
5559	complete continuing education as required until the agent
5560	completes his or her continuing education requirement.
5561	(5) An 11-member continuing education advisory board is
5562	created, to be appointed by the Chief Financial Officer.
5563	Appointments shall be for terms of 4 years. The purpose of the
5564	board is to advise the department in determining standards by
5565	which courses may be evaluated and categorized as basic,
5566	intermediate, or advanced. The board shall submit to the
5567	department recommendations of changes needed in such criteria
5568	not less frequently than every 2 years. The department shall
5569	require all approved course providers to submit courses for
5570	approval to the department using the criteria. All materials,
5571	brochures, and advertisements related to the approved courses
5572	must specify the level assigned to the course.
5573	(6) The department may contract services relative to the
5574	administration of the continuing education program to a private
5575	entity. The contract shall be procured as a contract for a
5576	contractual service pursuant to s. 287.057.
5577	637.30094 Regulation of continuing education for
5578	licensees, course providers, instructors, school officials, and
5579	monitor groups.-
5580	(1) Continuing education course providers, instructors,
5581	school officials, and monitor groups must be approved by the
5582	department before offering continuing education courses pursuant
5583	to s. 637.30093.
5584	(2) The department shall adopt rules establishing
5585	standards for the approval, regulation, and operation of the
5586	continuing education programs and for the discipline of
5587	licensees, course providers, instructors, school officials, and
5588	monitor groups. The standards must be designed to ensure that
5589	such course providers, instructors, school officials, and
5590	monitor groups have the knowledge, competence, and integrity to
5591	fulfill the educational objectives of s. 637.30093.
5592	(3) The department shall adopt rules establishing a
5593	process by which compliance with the continuing education
5594	requirements of s. 637.30093 can be determined, the
5595	establishment of a continuing education compliance period for
5596	licensees, and forms necessary to implement such a process.
5597	637.30095 Regulation of course providers, instructors,
5598	school officials, and monitor groups involved in prelicensure
5599	education for insurance agents and other licensees.-
5600	(1) Any course provider, instructor, school official, or
5601	monitor group must be approved by and registered with the
5602	department before offering prelicensure education courses for
5603	insurance agents and other licensees.
5604	(2) The department shall adopt rules establishing standards
5605	for the approval, registration, discipline, or removal from
5606	registration of course providers, instructors, school officials,
5607	and monitor groups. The standards must be designed to ensure
5608	that such persons have the knowledge, competence, and integrity
5609	to fulfill the educational objectives of the prelicensure
5610	requirements of this chapter and chapter 648 and to ensure that
5611	insurance agents and licensees are competent to engage in the
5612	activities authorized under the license.
5613	(3) The department shall adopt rules to establish a
5614	process for determining compliance with the prelicensure
5615	requirements of this chapter and chapter 648. The department
5616	shall adopt rules prescribing the forms necessary to administer
5617	the prelicensure requirements.
5618	637.30096 Examination results; denial, issuance of
5619	license.-
5620	(1) Within 30 days after the applicant has completed any
5621	examination required under s. 637.30042, the department or its
5622	designee shall provide a score report and, if the applicant has
5623	received a passing grade, the department shall within such
5624	period notify the applicant and issue and transmit the license
5625	to which such examination related. If the applicant did not make
5626	a passing grade on the examination for a particular license, the
5627	department or its designee shall within such period provide
5628	notice to the applicant to that effect and of the denial of the
5629	license. For an applicant who has completed the examination and
5630	received a passing grade prior to submitting the license
5631	application, the department shall promptly issue the license
5632	applied for as soon as the department approves the application.
5633	(2) A passing grade on an examination is valid for a
5634	period of 1 year. The department may not issue a license to an
5635	applicant based upon an examination taken more than 1 year prior
5636	to the date an application for a license is filed.
5637	637.30097 Form and contents of licenses in general.-Each
5638	license issued by the department shall be in such form as the
5639	department may designate and must contain the licensee's name,
5640	the licensee's personal identification number, the date of
5641	issuance, and any other information the department deems
5642	necessary to fully identify the licensee and the authority being
5643	granted. The department may by rule require photographs of
5644	applicants as a part of the licensing process.
5645	Section 42. Section 626.84201, Florida Statutes, is
5646	transferred, renumbered as section 637.3011, Florida Statutes,
5647	and amended to read:
5648	637.3011 626.84201 Nonresident title insurance agents.-
5649	Notwithstanding s. 637.3005(2) 626.8414(2), the department, upon
5650	application and payment of the fees specified in s. 637.2031
5651	624.501, may issue a license as a nonresident title insurance
5652	agent to an individual not a resident of this state in the same
5653	manner applicable to the licensure of nonresident general lines
5654	agents under the provisions of s. 626.741, provided the
5655	individual passes the examination for licensure required under
5656	s. 637.30042 626.221. Nonresident title insurance agents
5657	licensed pursuant to this section must complete the continuing
5658	education requirements of s. 637.30093 626.2815 in the same
5659	manner as resident title insurance agents. Sections 626.742 and
5660	626.743 apply to nonresident title insurance agents.
5661	Section 43. Section 626.8421, Florida Statutes, is
5662	transferred, renumbered as section 637.3012, Florida Statutes,
5663	and amended to read:
5664	637.3012 626.8421 Number of appointments permitted or
5665	required.-A title agent shall be required to have a separate
5666	appointment as to each insurer by which he or she is appointed
5667	as agent. As a part of each appointment there shall be a
5668	certified statement or affidavit of an appropriate officer or
5669	official of the appointing insurer stating that to the best of
5670	the insurer's knowledge and belief the applicant, or its
5671	principals in the case of a corporation or other legal entity,
5672	has met the requirements of s. 626.8417.
5673	Section 44. Section 637.30125, Florida Statutes, is
5674	created to read:
5675	637.30125 Agent in charge.-
5676	(1) Each location of a title insurance agency or insurer
5677	at which disbursement of escrow funds or policy issuance
5678	services are performed shall have a separate agent in charge.
5679	The failure to designate an agent in charge on a form
5680	prescribed by the department, within 10 working days after an
5681	agency's inception or a change of the agent in charge, is a
5682	violation of this chapter, punishable as provided in s.
5683	637.3018.
5684	(2) The agent in charge shall accept and be responsible
5685	for the operation and management of a title agency location.
5686	(3) The agent in charge shall perform his or her duties as
5687	set forth in subsection (2) at the location for which he or she
5688	is an attorney or agent in charge.
5689	(4) The department may suspend or revoke the license of
5690	the agency if a title insurance agency employs, contracts with,
5691	or uses the services of a person who has had a license denied or
5692	whose license is currently suspended or revoked. However, a
5693	person who has been denied a license for failure to pass a
5694	required examination may be employed to perform clerical or
5695	administrative functions for which licensure is not required.
5696	(5) An agency shall designate an attorney licensed by The
5697	Florida Bar or an agent licensed by the department as agent in
5698	charge for each location of the agency. In the case of multiple
5699	locations, the agency shall designate a separate agent in charge
5700	for each location.
5701	(6) The department may adopt rules pursuant to ss.
5702	120.536(1) and 120.54 to implement this section and interpret
5703	the duties and responsibilities of the agent in charge or the
5704	attorney in charge of a licensed title insurance agency.
5705	Section 45. Section 626.8423, Florida Statutes, is
5706	transferred and renumbered as section 637.3013, Florida
5707	Statutes.
5708	Section 46. Section 637.30133, Florida Statutes, is
5709	created to read:
5710	637.30133 Consumer protections.-To transact title
5711	insurance, title insurance agents shall comply with consumer
5712	protection laws, including the following, as applicable:
5713	(1) Continuing education requirements for resident and
5714	nonresident agents, as required in s. 637.30093.
5715	(2) Fingerprinting requirements for resident and
5716	nonresident agents, as required under s. 626.171 or s.
5717	637.30135.
5718	(3) Fingerprinting following a department investigation
5719	under s. 637.1019.
5720	(4) The submission of credit and character reports, as
5721	required by s. 626.171 or s. 626.521.
5722	(5) Qualifications for licensure as an agent in s.
5723	626.731, s. 626.741, s. 626.785, s. 626.831, s. 626.835, or s.
5724	6378.2077.
5725	(6) Examination requirements in s. 626.741, s. 626.835,
5726	637.2077, or s. 637.30042.
5727	(7) Required licensure or registration of insurance
5728	agencies under s. 626.112.
5729	(8) Requirements for licensure of resident and
5730	nonresident agents in s. 626.112, s. 626.321, s. 626.731, s.
5731	626.741, s. 626.785, s. 626.831, s. 626.835, s. 626.927, or s.
5732	637.2077.
5733	(9) Any other licensing requirement, restriction, or
5734	prohibition designated a consumer protection by the Chief
5735	Financial Officer, but not inconsistent with the requirements of
5736	Subtitle C of the Gramm-Leach-Bliley Act, 15 U.S.C.A. ss. 6751
5737	et seq.
5738	Section 47. Section 637.30135, Florida Statutes, is
5739	created to read:
5740	637.30135 Fingerprinting requirements.-If there is a
5741	change in ownership or control of any entity licensed under this
5742	chapter, or if a new partner, officer, or director is employed
5743	or appointed, a set of fingerprints of the new owner, partner,
5744	officer, or director must be filed with the department or office
5745	within 30 days after the change. The acquisition of 10 percent
5746	or more of the voting securities of a licensed entity is
5747	considered a change of ownership or control. The fingerprints
5748	must be taken by a law enforcement agency or other
5749	department-approved entity and be accompanied by the
5750	fingerprint processing fee in s. 637.2031.
5751	Section 48. Section 626.8427, Florida Statutes, is
5752	transferred and renumbered as section 637.3014, Florida
5753	Statutes.
5754	Section 49. Sections 637.30142, 637.30143, 637.30144,
5755	637.30145, 637.30146, and 637.30147, Florida Statutes, are
5756	created to read:
5757	637.30142 Payment of fees, taxes for appointment period
5758	without appointment.-
5759	(1) All initial appointments shall be submitted to the
5760	department on a monthly basis no later than 45 days after the
5761	date of appointment and shall become effective on the date
5762	requested on the appointment form.
5763	(2) Upon application and qualification for an initial or
5764	renewal appointment and such investigation as the department may
5765	make, if it appears to the department that an individual who was
5766	formerly licensed or is currently licensed but not properly
5767	appointed to represent an insurer or employer and who has
5768	been actively engaged or is currently actively engaged as such
5769	an appointee, but without being appointed as required, the
5770	department, if it finds that such failure to be appointed was an
5771	inadvertent error on the part of the insurer or employer so
5772	represented, may issue or authorize the issuance of the
5773	appointment as applied for but subject to the condition that,
5774	before the appointment is issued, all fees and taxes which
5775	would have been due had the applicant been so appointed during
5776	such current and prior periods, with applicable fees pursuant to
5777	s. 637.2031 for such current and prior periods of appointment,
5778	shall be paid to the department.
5779	(3)(a) Failure to notify the department within the
5780	required time period shall result in the appointing entity being
5781	assessed a delinquent fee of $250 per appointee. Delinquent fees
5782	shall be paid by the appointing entity and may not be charged to
5783	the appointee.
5784	(b) Failure to timely renew an appointment by an
5785	appointing entity prior to the expiration date of the
5786	appointment shall result in the appointing entity being assessed
5787	late filing, continuation, and reinstatement fees as prescribed
5788	in s. 637.2031. Such fees shall be paid by the appointing entity
5789	and may not be charged back to the appointee.
5790	637.30143 License or appointment; transferability.-A
5791	license or appointment issued under this part is valid only as
5792	to the person named and is not transferable to any other
5793	person. A licensee or appointee may not allow any other
5794	person to transact insurance by using the license or
5795	appointment issued to such licensee or appointee.
5796	637.30144 Termination of appointment.-
5797	(1) Subject to an appointee's contract rights, an
5798	appointing entity may terminate its appointment of any appointee
5799	at any time. Except when termination is upon a ground which
5800	would subject the appointee to suspension or revocation of his
5801	or her license and appointment under s. 637.3017 or s. 637.3018,
5802	and except as provided by contract between the appointing entity
5803	and the appointee, the appointing entity shall give to the
5804	appointee at least 60 days' advance written notice of its
5805	intention to terminate such appointment by delivery of such
5806	notice to the appointee in person or by mailing the notice,
5807	postage prepaid, addressed to the appointee at his or her last
5808	address of record with the appointing entity. Notice so mailed
5809	shall be deemed to have been given when deposited in a United
5810	States Postal Service mail depository.
5811	(2) Within 30 days after terminating the appointment
5812	of an appointee, other than as to an appointment terminated by
5813	the appointing entity's failure to continue or renew the
5814	appointment, the appointing entity shall file with the
5815	department a written notice of the termination, together with
5816	a statement that the appointing entity has given the
5817	appointee notice of the termination as provided in subsection
5818	(1) and shall file with the department the reasons and facts
5819	involved in such termination as required under s. 637.30145.
5820	(3) Upon termination of the appointment of an appointee by
5821	failure to renew or continue the appointment, the appointing
5822	entity shall:
5823	(a) File with the department the information required
5824	under s. 637.30145.
5825	(b) Subject to the exceptions provided under subsection
5826	(1), continue the outstanding contracts transacted by an agent
5827	until the expiration date or anniversary date when the policy is
5828	a continuous policy with no expiration date. This paragraph
5829	shall not be construed to prohibit the cancellation of such
5830	contracts when not otherwise prohibited by law.
5831	(4) An appointee may terminate the appointment at any
5832	time by giving written or electronic notice of such termination
5833	to the appointing entity, department, or person designated by the
5834	department to administer the appointment process. The department
5835	shall immediately terminate the appointment and notify the
5836	appointing entity of such termination. Such termination shall be
5837	subject to the appointee's contract rights, if any.
5838	(5) Upon receiving a notice of termination, the department
5839	or person designated by the department to administer the
5840	appointment process shall terminate the appointment.
5841	637.30145 Reasons for termination.-
5842	(1) Any insurer terminating the appointment of an agent or
5843	managing general agent, whether such termination is by direct
5844	action of the appointing insurer, agent, or employer or by
5845	failure to renew or continue the appointment, shall file with
5846	the department or office a statement of the reasons, if any, for
5847	such termination and the facts relative to such termination. In
5848	the case of a termination of the appointment of an agent, such
5849	information may be filed by the insurer or by the general agent
5850	of the insurer.
5851	(2) In the case of terminations by failure to renew or
5852	continue the appointment, the information required under
5853	subsection (1) shall be filed with the department or office
5854	within 30 days after the date notice of intention not to renew
5855	or continue was filed with the department or office as required
5856	by this chapter. In all other cases, the information required
5857	under subsection (1) shall be filed with the department or
5858	office within 10 days after notice of the termination was filed
5859	with the department or office.
5860	637.30146 Delinquent agencies; notice of trusteeship.-If
5861	any agent or agency becomes delinquent for 90 days in payment of
5862	accounts owing to the insurer or insurers represented by the
5863	agent or agency and a trusteeship or similar arrangement for the
5864	administration of the affairs of the agent or agency is
5865	instituted, the insurer or insurers involved in such trusteeship
5866	or arrangement shall immediately give written notice of such
5867	trusteeship or arrangement to the department. The notice shall
5868	state the name and address of each such agent, the circumstances
5869	and estimated amount of delinquency, and such other information
5870	as the insurer deems pertinent or as the department may
5871	reasonably require.
5872	637.30147 Procedure for refusal, suspension, or revocation
5873	of license.-If any licensee is convicted of a violation of
5874	this code or a felony, the licenses and appointments of such
5875	person shall be immediately revoked by the department. The
5876	licensee may subsequently request a hearing pursuant to ss.
5877	120.569 and 120.57, and the department shall expedite any such
5878	requested hearing. The sole issue at such hearing shall be
5879	whether the revocation should be rescinded because such person
5880	was not in fact convicted of a violation of this code or a
5881	felony.
5882	Section 50. Section 626.843, Florida Statutes, is
5883	transferred, renumbered as section 637.3015, Florida Statutes,
5884	and amended to read:
5885	637.3015 626.843 Renewal, continuation, reinstatement,
5886	termination of title insurance agent's appointment.-
5887	(1) The appointment of a title insurance agent shall
5888	continue in force until suspended, revoked, or otherwise
5889	terminated, but subject to a renewed request filed by the
5890	insurer every 24 months after the original issue date of the
5891	appointment, accompanied by payment of the renewal appointment
5892	fee and taxes as prescribed in s. 637.2031 624.501.
5893	(2)(a) Renewal of an appointment that is received by the
5894	department or person designated by the department to administer
5895	the appointment process prior to the expiration of an
5896	appointment in the licensee's birth month or license issue date,
5897	whichever applies, may be renewed by the department without
5898	penalty and shall be effective as of the first day of the month
5899	succeeding the month in which the appointment would have
5900	expired.
5901	(b) Renewal of an appointment that is received by the
5902	department or person designated by the department to administer
5903	the appointment process after the renewal date may be accepted
5904	and effectuated by the department in its discretion if the
5905	appointment, late filing, continuation, and reinstatement fee
5906	accompanies the renewal request pursuant to s. 637.2031. Late
5907	filing fees shall be paid by the appointing entity and may not
5908	be charged to the appointee Title insurance agent appointments
5909	shall be renewed pursuant to s. 626.381 for
5910	representatives in general.
5911	(3) The appointment issued shall remain in effect for so
5912	long as the appointment represented thereby continues in force
5913	as provided in this section.
5914	Section 51. Section 626.8433, Florida Statutes, is
5915	transferred and renumbered as section 637.3016, Florida
5916	Statutes.
5917	Section 52. Section 626.8437, Florida Statutes, is
5918	transferred, renumbered as section 637.3017, Florida Statutes,
5919	and amended to read:
5920	637.3017 626.8437 Grounds for denial, suspension,
5921	revocation, or refusal to renew license or appointment.-
5922	(1) The department shall deny, suspend, revoke, or refuse
5923	to renew or continue the license or appointment of any title
5924	insurance agent or agency, and it shall suspend or revoke the
5925	eligibility to hold a license or appointment of such person, if
5926	it finds that as to the applicant, licensee, appointee, or any
5927	principal thereof, any one or more of the following grounds
5928	exist:
5929	(a)(1) Lack of one or more of the qualifications for the
5930	license or appointment as specified in ss. 637.3006, 637.3007,
5931	and 637.3008 626.8417, 626.8418, and 626.8419.
5932	(b)(2) Material misstatement, misrepresentation, or fraud
5933	in obtaining, or attempting to obtain, the license or
5934	appointment.
5935	(c)(3) Willful misrepresentation of any title insurance
5936	policy, guarantee of title, binder, or commitment, or willful
5937	deception with regard to any such policy, guarantee, binder, or
5938	commitment, done either in person or by any form of
5939	dissemination of information or advertising.
5940	(d)(4) Demonstrated lack of fitness or trustworthiness to
5941	represent a title insurer in the issuance of its commitments,
5942	binders, policies of title insurance, or guarantees of title.
5943	(e)(5) Demonstrated lack of reasonably adequate knowledge
5944	and technical competence to engage in the transactions
5945	authorized by the license or appointment.
5946	(f)(6) Fraudulent or dishonest practices in the conduct of
5947	business under the license or appointment.
5948	(g)(7) Misappropriation, conversion, or unlawful
5949	withholding of moneys belonging to title insurers or insureds or
5950	others and received in conduct of business under the license or
5951	appointment.
5952	(h)(8) Unlawful rebating, or attempting to unlawfully
5953	rebate, or unlawfully dividing, or offering to unlawfully
5954	divide, title insurance premiums, fees, or charges with another,
5955	as prohibited by s. 637.1033(7)(b). 626.9541(1)(h)3.
5956	(i)(9) Willful failure to comply with, or willful
5957	violation of, any proper order or rule of the department or
5958	willful violation of any provision of this act.
5959	(j)(10) The licensee if an individual, or the partners if
5960	a partnership, or owner if a sole proprietorship, or the
5961	officers if a corporation, having been found guilty of or having
5962	pleaded guilty or nolo contendere to a felony or a crime
5963	punishable by imprisonment of 1 year or more under the law of
5964	the United States or of any state or under the law of any other
5965	country which involves moral turpitude, without regard to
5966	whether a judgment of conviction has been entered by the court
5967	having jurisdiction of such cases.
5968	(k) Failure to timely submit data as required by the
5969	department.
5970	(2) Upon receipt of an information or indictment, the
5971	department shall immediately temporarily suspend any license or
5972	appointment issued under this chapter when the licensee has been
5973	convicted of an insurance or financial-related felony or a crime
5974	involving moral turpitude or a crime punishable by imprisonment
5975	of 1 year or more under the law of any state, territory, or
5976	country. Such suspension shall continue if the licensee has been
5977	found guilty of, or has pleaded guilty or no contest to, the
5978	crime, whether or not a judgment or conviction has been entered,
5979	during a pending appeal. A person may not affect any additional
5980	insurance after suspension of his or her license or appointment.
5981	However, he or she may service the policies effected prior to
5982	such suspension.
5983	Section 53. Section 626.844, Florida Statutes, is
5984	transferred, renumbered as section 637.3018, Florida Statutes,
5985	and amended to read:
5986	637.3018 626.844 Grounds for discretionary refusal,
5987	suspension, or revocation of license or appointment.-The
5988	department may, in its discretion, deny, suspend, revoke, or
5989	refuse to renew or continue the license or appointment of any
5990	title insurance agent or agency, and it may suspend or revoke
5991	the eligibility to hold a license or appointment of any such
5992	title insurance agent or agency if it finds that as to the
5993	applicant or licensee or appointee, or any principal thereof,
5994	any one or more of the following grounds exist under
5995	circumstances for which such denial, suspension, revocation, or
5996	refusal is not mandatory under s. 637.3017 626.8437:
5997	(1) Any cause for which issuance of the license or
5998	appointment could have been refused had it then existed and been
5999	known to the department.
6000	(2) Violation of any provision of this act in the course
6001	of dealing under the license or appointment.
6002	(3) Violation of any lawful order or rule of the
6003	department.
6004	(4) Failure or refusal upon demand to pay over to any
6005	title insurer that the appointee represents or has represented
6006	any money coming into the hands of such appointee and belonging
6007	to the title insurer.
6008	(5) Engaging in unfair methods of competition or in unfair
6009	or deceptive acts or practices in the conduct of business, as
6010	prohibited under part IX of this chapter, or having otherwise
6011	shown himself or herself to be a source of injury or loss to the
6012	public or to be detrimental to the public interest.
6013	(6) The licensee if an individual, or the partners if a
6014	partnership, or owner if a sole proprietorship, or the officers
6015	if a corporation, having been found guilty of or having pleaded
6016	guilty or nolo contendere to a felony or a crime punishable by
6017	imprisonment of 1 year or more under the law of the United
6018	States or of any state or under the law of any other country,
6019	without regard to whether a judgment of conviction has been
6020	entered by the court having jurisdiction of such cases.
6021	(7) Failure or refusal upon demand by any title insurer
6022	that the appointee represents or has represented to pay any
6023	money coming into the hands of such appointee and belonging to
6024	the title insurer.
6025	(8) Failure to maintain the insurer's portion of the
6026	premium in escrow.
6027	(9) Fraud, misrepresentation, or deceit in any title
6028	insurance transaction.
6029	(10) Failure to comply with s. 637.3029.
6030	(11) Failure to account or deliver to any person any
6031	property that has come into the agency's hands and that is not
6032	the agency's property or that the agency is not in law or equity
6033	entitled to retain, under the circumstances and at the time that
6034	has been agreed upon or is required by law or, in the absence of
6035	a fixed time, upon demand of the person entitled to such
6036	accounting and delivery absent a good faith dispute, lack of
6037	mutual instructions, or doubt about entitlement thereto.
6038	(12) Failure to disburse escrow funds in accordance with
6039	agreements signed by the seller and the buyer absent a good
6040	faith dispute or lack of mutual instructions from the buyer and
6041	seller about entitlement thereto.
6042	(13) Acting as or holding himself or herself out to be a
6043	title insurance agent or title insurance agency without a
6044	current, active license issued by the Department of Financial
6045	Services.
6046	(14) Providing a closing protection letter, title
6047	insurance commitment, or title insurance policy for an insurer
6048	that the licensee is not actively appointed to represent.
6049	(15) Failure to maintain, preserve, and keep available for
6050	examination all books, accounts, or other documents required by
6051	ss. 637.30044-637.3015 and s. 637.3029 and the rules of the
6052	department.
6053	(16) Failure to allow an investigation or examination of
6054	books and records by the department.
6055	(17) Adding any amount to the charges of other providers
6056	of service in a real estate transaction without adding value to
6057	the services provided.
6058	(18) Failure to timely deliver the deed, mortgage, and
6059	other documents related to a closing transaction to the
6060	appropriate recording authority.
6061	(19) Failure to timely deliver the escrow funds to the
6062	appropriate entity or to the state if the owner is unable to be
6063	located pursuant to chapter 717.
6064	Section 54. Section 626.8443, Florida Statutes, is
6065	transferred, renumbered as section 637.3019, Florida Statutes,
6066	and subsection (4) of that section is amended to read:
6067	637.3019 626.8443 Duration of suspension or revocation.-
6068	(4) During the period of suspension or after revocation of
6069	the license and appointment, the former licensee shall not
6070	engage in or attempt to profess to engage in any transaction or
6071	business for which a license or appointment is required under
6072	this chapter code or directly or indirectly own, control, or be
6073	employed in any manner by any title insurance agent or title
6074	insurance agency or adjuster or adjusting firm.
6075	Section 55. Section 626.8447, Florida Statutes, is
6076	transferred and renumbered as section 637.3021, Florida
6077	Statutes.
6078	Section 56. Section 626.845, Florida Statutes, is
6079	transferred and renumbered as section 637.3022, Florida
6080	Statutes.
6081	Section 57. Section 626.8453, Florida Statutes, is
6082	transferred, renumbered as section 637.3023, Florida Statutes,
6083	and amended to read:
6084	637.3023 626.8453 Penalty for violation.-A person who
6085	knowingly makes a false or otherwise fraudulent application for
6086	a license or appointment under this act, or who knowingly
6087	violates any provision of s. 637.2032 624.5015, ss. 637.3006-
6088	637.3029 626.8417-626.847, or s. 637.2076 627.791, in addition
6089	to any applicable denial, suspension, revocation, or refusal to
6090	renew or continue any license or appointment, commits a
6091	misdemeanor of the second degree, punishable as provided in s.
6092	775.082 or s. 775.083. Each instance of violation shall be
6093	considered a separate offense.
6094	Section 58. Section 626.8457, Florida Statutes, is
6095	transferred and renumbered as section 637.3024, Florida
6096	Statutes.
6097	Section 59. Section 626.846, Florida Statutes, is
6098	transferred, renumbered as section 637.3025, Florida Statutes,
6099	and subsection (1) of that section is amended to read:
6100	637.3025 626.846 Probation.-
6101	(1) If the department finds that one or more grounds exist
6102	for the suspension of, revocation of, or refusal to renew or
6103	continue any license or appointment issued under this act, the
6104	department may, except when an administrative fine is not
6105	permissible under s. 637.3024 626.8457 or when such suspension,
6106	revocation, or refusal is mandatory, in lieu of such suspension,
6107	revocation, or refusal, or in connection with any administrative
6108	monetary penalty imposed under s. 637.3024 626.8457, place the
6109	offending licensee or appointee on probation for a period not to
6110	exceed 2 years, as specified by the department in its order.
6111	Section 60. Section 626.8463, Florida Statutes, is
6112	transferred, renumbered as section 637.3026, Florida Statutes,
6113	and subsection (1) of that section is amended to read:
6114	637.3026 626.8463 Witnesses and evidence.-
6115	(1) As to the subject of any examination, investigation,
6116	or hearing being conducted by him or her under s. 637.2032, s.
6117	637.2076, or 624.5015, ss. 637.3006-637.3029 626.8417-626.847,
6118	or s. 627.791, an examiner appointed by the department or office
6119	may administer oaths, examine and cross-examine witnesses, and
6120	receive oral and documentary evidence and shall have the power
6121	to subpoena witnesses, compel their attendance and testimony,
6122	and require by subpoena the production of books, papers,
6123	records, files, correspondence, documents, or other evidence
6124	which the examiner deems relevant to the inquiry.
6125	Section 61. Section 626.8467, Florida Statutes, is
6126	transferred, renumbered as section 637.3027, Florida Statutes,
6127	and amended to read:
6128	637.3027 626.8467 Testimony compelled; immunity from
6129	prosecution.-
6130	(1) If a person asks to be excused from attending or
6131	testifying or from producing any books, papers, records,
6132	contracts, documents, or other evidence in connection with any
6133	examination, hearing, or investigation being conducted under s.
6134	637.2032, s. 637.2076, or 624.5015, ss. 637.3006-637.3029
6135	626.8417-626.847, or s. 627.791 by the department or office or
6136	its examiner on the ground that the testimony or evidence
6137	required of the person may tend to incriminate him or her or
6138	subject him or her to a penalty or forfeiture and
6139	notwithstanding is directed to give such testimony or produce
6140	such evidence, the person must, if so directed by the Department
6141	of Financial Services and the Department of Legal Affairs or by
6142	the office and the Department of Legal Affairs, nonetheless
6143	comply with such direction, but he or she shall not thereafter
6144	be prosecuted or subjected to any penalty or forfeiture for or
6145	on account of any transaction, matter, or thing concerning which
6146	he or she may have so testified or produced evidence, and no
6147	testimony so given or evidence produced shall be received
6148	against the person upon any criminal action, investigation, or
6149	proceeding. However, a person so testifying shall not be exempt
6150	from prosecution or punishment for any perjury committed by him
6151	or her in such testimony, and the testimony or evidence so given
6152	or produced shall be admissible against him or her upon any
6153	criminal action, investigation, or proceeding concerning such
6154	perjury; and such person shall not be exempt from the refusal,
6155	suspension, or revocation of any license or appointment,
6156	permission, or authority conferred or to be conferred pursuant
6157	to s. 637.2032, s. 637.2076, or 624.5015, ss. 637.3006-637.3029
6158	626.8417-626.847, or s. 627.791.
6159	(2) Any such person may execute, acknowledge, and file
6160	with the department of Financial Services or the office, as
6161	appropriate, a statement expressly waiving such immunity or
6162	privilege with respect to any transaction, matter, or thing
6163	specified in the statement, and thereupon the testimony of such
6164	person or such evidence in relation to such transaction, matter,
6165	or thing may be received or produced before any judge or
6166	justice, court, tribunal, or grand jury or otherwise and, if so
6167	received or produced, such person shall not be entitled to any
6168	immunity or privilege on account of any testimony he or she may
6169	so give or evidence so produced.
6170	Section 62. Section 626.847, Florida Statutes, is
6171	transferred, renumbered as section 637.3028, Florida Statutes,
6172	and amended to read:
6173	637.3028 626.847 Penalty for refusal to testify.-A person
6174	who refuses or fails, without lawful cause, to testify relative
6175	to the affairs of any title insurer or other person when
6176	subpoenaed under s. 637.3026 626.8463 and requested by the
6177	department or office to so testify is guilty of a misdemeanor of
6178	the second degree and, upon conviction, is punishable as
6179	provided in s. 775.082 or s. 775.083.
6180	Section 63. Section 626.8473, Florida Statutes, is
6181	transferred, renumbered as section 637.3029, Florida Statutes,
6182	and subsections (1), (3), and (6) of that section are amended to
6183	read:
6184	637.3029 626.8473 Escrow; trust fund.-
6185	(1) A title insurance agent may engage in business as an
6186	escrow agent as to funds received from others to be subsequently
6187	disbursed by the title insurance agent in connection with real
6188	estate closing transactions involving the issuance of title
6189	insurance binders, commitments, policies of title insurance, or
6190	guarantees of title, provided that a licensed and appointed
6191	title insurance agent complies with the requirements of s.
6192	637.3006 626.8417, including such requirements added after the
6193	initial licensure of the agent.
6194	(3) All funds received by a title insurance agent to be
6195	held in trust shall be immediately placed and retained in a
6196	financial institution that is located within this state and is a
6197	member of the Federal Deposit Insurance Corporation or the
6198	National Credit Union Share Insurance Fund. These funds shall be
6199	invested in an escrow account in accordance with the investment
6200	requirements and standards established for deposits and
6201	investments of state funds in s. 17.57, where the funds shall be
6202	kept until disbursement thereof is properly authorized.
6203	(6) In the event that the department adopts promulgates
6204	rules necessary to implement the requirements of this section
6205	pursuant to s. 637.1007 624.308, the department shall consider
6206	reasonable standards necessary for the protection of funds held
6207	in trust, including, but not limited to, standards for
6208	accounting of funds, standards for receipt and disbursement of
6209	funds, and protection for the person or persons to whom the
6210	funds are to be disbursed.
6211	Section 64. Section 637.30295, Florida Statutes, is
6212	created to read:
6213	637.30295 Collection of title insurance information.-Each
6214	title insurance agency licensed to do business in this state and
6215	each insurer doing direct, retail, or affiliated business in
6216	this state shall maintain and submit information, including
6217	revenue, loss, and expense data, as the department determines to
6218	be necessary to assist in the analysis of title insurance premium
6219	rates, title search costs, and the condition of the title
6220	insurance industry in this state. This information must be
6221	transmitted to the department no later than March 31 of each
6222	year following the reporting year. The department shall adopt
6223	rules to assist in the collection and analysis of the data from
6224	the title insurance industry.
6225	Section 65. Paragraphs (a), (e), and (f) of subsection (1)
6226	of section 624.5105, Florida Statutes, are amended to read:
6227	624.5105 Community contribution tax credit; authorization;
6228	limitations; eligibility and application requirements;
6229	administration; definitions; expiration.-
6230	(1) AUTHORIZATION TO GRANT TAX CREDITS; LIMITATIONS.-
6231	(a) There shall be allowed a credit of 50 percent of a
6232	community contribution against any tax due for a calendar year
6233	under s. 624.509, or s. 624.510, or s. 637.2039.
6234	(e) If the credit granted pursuant to this section is not
6235	fully used in any one year because of insufficient tax liability
6236	on the part of the insurer, the unused amount may be carried
6237	forward for a period not to exceed 5 years. The carryover credit
6238	may be used in a subsequent year when the tax imposed by s.
6239	624.509, or s. 624.510, or 637.2039 for such year exceeds the
6240	credit under this section for such year.
6241	(f) An insurer that claims a credit against premium-tax
6242	liability earned by making a community contribution under this
6243	section need not pay any additional retaliatory tax levied under
6244	s. 624.5091 or s. 637.2041 as a result of claiming such a
6245	credit. Section 624.5091 or s. 637.2041 does not limit such a
6246	credit in any manner.
6247	Section 66. Subsection (1) of section 624.5107, Florida
6248	Statutes, is amended to read:
6249	624.5107 Child care tax credits.-
6250	(1) If the credit granted under this section is not fully
6251	used in any one year because of insufficient tax liability on
6252	the part of the insurer, the unused amount may be carried
6253	forward for a period not to exceed 5 years. The carryover credit
6254	may be used in a subsequent year when the tax imposed by s.
6255	624.509, or s. 624.510, or s. 637.2039 for that year exceeds the
6256	credit for which the insurer is eligible in that year under this
6257	section.
6258	Section 67. Transfers; rules; powers; regulatory
6259	authority; orders.-
6260	(1) Effective October 1, 2010, the rules of the Financial
6261	Services Commission and the Office of Insurance Regulation with
6262	respect to the regulation of title insurance shall become the
6263	rules of the Department of Financial Services and shall remain
6264	in effect until specifically amended or repealed in the manner
6265	provided by law.
6266	(2)(a) All of the statutory powers, duties and functions,
6267	records, personnel, property, and unexpended balances of
6268	appropriations, allocations, or other funds for the
6269	administration of chapter 624, Florida Statutes, related to
6270	title insurance, shall be transferred by a type two transfer, as
6271	defined in s. 20.06(2), Florida Statutes, from the Financial
6272	Services Commission and the Office of Insurance Regulation to
6273	the Department of Financial Services.
6274	(b) All of the statutory powers, duties and functions,
6275	records, personnel, property, and unexpended balances of
6276	appropriations, allocations, or other funds for the
6277	administration of chapter 626, Florida Statutes, related to
6278	title insurance, shall be transferred by a type two transfer, as
6279	defined in s. 20.06(2), Florida Statutes, from the Financial
6280	Services Commission and the Office of Insurance Regulation to
6281	the Department of Financial Services.
6282	(c) All of the statutory powers, duties and functions,
6283	records, personnel, property, and unexpended balances of
6284	appropriations, allocations, or other funds for the
6285	administration of chapter 627, Florida Statutes, related to
6286	title insurance, shall be transferred by a type two transfer, as
6287	defined in s. 20.06(2), Florida Statutes, from the Financial
6288	Services Commission and the Office of Insurance Regulation to
6289	the Department of Financial Services.
6290	(3)(a) The transfer of regulatory authority under chapter
6291	624, Florida Statutes, provided by this act shall not affect the
6292	validity of any judicial or administrative action relating to
6293	title insurance pending as of 11:59 p.m. on the day before the
6294	effective date of this act, to which action the Financial
6295	Services Commission or the Office of Insurance Regulation are at
6296	that time parties, and the Department of Financial Services
6297	shall be substituted as a party in interest in any such action.
6298	(b) The transfer of regulatory authority under chapter
6299	626, Florida Statutes, provided by this act shall not affect the
6300	validity of any judicial or administrative action relating to
6301	title insurance pending as of 11:59 p.m. on the day before the
6302	effective date of this act, to which action the Financial
6303	Services Commission or the Office of Insurance Regulation are at
6304	that time parties, and the Department of Financial Services
6305	shall be substituted as a party in interest in any such action.
6306	(c) The transfer of regulatory authority under chapter
6307	627, Florida Statutes, provided by this act shall not affect the
6308	validity of any judicial or administrative action relating to
6309	title insurance pending as of 11:59 p.m. on the day before the
6310	effective date of this act, to which action the Financial
6311	Services Commission or the Office of Insurance Regulation are at
6312	that time parties, and the Department of Financial Services
6313	shall be substituted as a party in interest in any such action.
6314	(4)(a) All lawful orders issued by the Financial Services
6315	Commission or the Office of Insurance Regulation implementing or
6316	enforcing or otherwise in regard to any provision of chapter
6317	624, Florida Statutes, relating to title insurance, issued prior
6318	to the effective date of this act, shall remain in effect and be
6319	enforceable after the effective date of this act, unless
6320	thereafter modified in accordance with law.
6321	(b) All lawful orders issued by the Financial Services
6322	Commission or the Office of Insurance Regulation, implementing
6323	or enforcing or otherwise in regard to any provision of chapter
6324	626, Florida Statutes, relating to title insurance, issued prior
6325	to the effective date of this act, shall remain in effect and be
6326	enforceable after the effective date of this act, unless
6327	thereafter modified in accordance with law.
6328	(c) All lawful orders issued by the Financial Services
6329	Commission or the Office of Insurance Regulation, implementing
6330	or enforcing or otherwise in regard to any provision of chapter
6331	627, Florida Statutes, relating to title insurance, issued prior
6332	to the effective date of this act, shall remain in effect and be
6333	enforceable after the effective date of this act, unless
6334	thereafter modified in accordance with law.
6335	Section 68. The Legislature recognizes that there is a
6336	need to conform the Florida Statutes to the policy decisions
6337	reflected in the provisions of this act. The Division of
6338	Statutory Revision is directed to provide the relevant
6339	substantive committees of the Senate and the House of
6340	Representatives with assistance, upon request, to enable such
6341	committees to prepare draft legislation to conform the Florida
6342	Statutes to the provisions of this act.
6343	Section 69. Section 689.263, Florida Statutes, is created
6344	to read:
6345	689.263 Sale of residential property; settlement statement
6346	requirements.-A title insurance agent or title insurance agency
6347	may not disburse funds pursuant to a completed purchase and sale
6348	transaction subject to the Real Estate Settlement Procedures Act
6349	of 1974, 12 U.S.C. ss. 2601 et seq., as amended, without
6350	requiring a statement of settlement costs meeting the following
6351	requirements:
6352	(1) The settlement statement must be executed by the buyer
6353	and the seller.
6354	(2) If a title insurance premium is to be disbursed, the
6355	title insurer and the title insurance agent or title insurance
6356	agency, if any, must be disclosed.
6357	(3) A copy of the executed settlement statement must be
6358	delivered to the buyer and the seller.
6359	Section 70. Section 717.1121, Florida Statutes, is created
6360	to read:
6361	717.1121 Payments from escrow related to real estate
6362	transactions.-All funds held as part of a real estate
6363	transaction, including any outstanding payments for amounts to
6364	be paid as listed on the settlement statement form by any title
6365	insurance agency, title insurer, savings and loan association,
6366	bank, trust company, or other financial institution, attorney
6367	firm, real estate broker, or similar institution, are considered
6368	unclaimed if the owner of those funds has not claimed the money
6369	within 2 years after the closing performed under the real estate
6370	transaction.
6371	Section 71. Subsection (1) and paragraph (d) of subsection
6372	(2) of section 877.101, Florida Statutes, are amended to read:
6373	877.101 Escrow business by unauthorized persons; use of
6374	name.-
6375	(1) Except as provided in subsection (2), in connection
6376	with the purchase and sale of real property, a person may not:
6377	(a) Transact business under any name or title that
6378	contains the word "escrow" or words of similar import; or
6379	(b)1. Use any name, word, sign, symbol, or device in any
6380	context or in any manner; or
6381	2. Circulate or use any letterhead, billhead, circular,
6382	paper, or writing of any kind or otherwise advertise or
6383	represent in any manner
6384
6385	that indicates or reasonably implies that the business being
6386	conducted or advertised is the kind or character of business
6387	transacted that is regulated by this state as an escrow agent;
6388	or
6389	(c) Engage in business as an escrow agent as to funds
6390	received from others to be subsequently disbursed in connection
6391	with real estate closing transactions.
6392	(2) This section does not apply to:
6393	(d) A title insurance agent who is licensed pursuant to s.
6394	637.3006 626.8417, a title insurance agency that is licensed
6395	pursuant to s. 637.3007 626.8418, or a title insurer who is
6396	authorized to transact business in this state pursuant to s.
6397	637.2001 624.401.
6398	Section 72. Section 624.5015, Florida Statutes, is amended
6399	to read:
6400	624.5015 Advance collection of fees and taxes; title
6401	insurers not to pay without reimbursement.-
6402	(1) The department or the office shall collect in advance
6403	from the applicant or licensee fees and taxes as provided in s.
6404	624.501.
6405	(2) A title insurer shall not pay directly or indirectly
6406	without reimbursement from a title insurance agent any
6407	appointment fee required under this section. The failure of a
6408	title insurance agent to make reimbursement is not a ground for
6409	cancellation of the title insurance agent's appointment by the
6410	title insurer.
6411	Section 73. Subsections (7), (8), and (9) of section
6412	626.241, Florida Statutes, are amended to read:
6413	626.241 Scope of examination.-
6414	(7) Examinations given applicants for licensure as title
6415	agents must cover title insurance, abstracting, title searches,
6416	examination of title, closing procedures, and escrow handling.
6417	(7)(8) An examination for licensure as a personal lines
6418	agent shall consist of 100 questions and shall be limited in
6419	scope to the kinds of business transacted under such license.
6420	(8)(9) This section applies to any person who submits an
6421	application for license and to any person who submits an
6422	application for examination prior to filing an application for
6423	license.
6424	Section 74. Subsection (5) of section 626.331, Florida
6425	Statutes, is amended to read:
6426	626.331 Number of appointments permitted or required.-
6427	(5) A title agent or title agency license must be limited
6428	to selling title insurance only for the appointing title insurer
6429	or insurers.
6430	Section 75. Paragraph (a) of subsection (5) of section
6431	197.502, Florida Statutes, is amended to read:
6432	197.502 Application for obtaining tax deed by holder of
6433	tax sale certificate; fees.-
6434	(5)(a) The tax collector may contract with a title company
6435	or an abstract company at a reasonable fee to provide the
6436	minimum information required in subsection (4), consistent with
6437	rules adopted by the department. If additional information is
6438	required, the tax collector must make a written request to the
6439	title or abstract company stating the additional requirements.
6440	The tax collector may select any title or abstract company,
6441	regardless of its location, as long as the fee is reasonable,
6442	the minimum information is submitted, and the title or abstract
6443	company is authorized to do business in this state. The tax
6444	collector may advertise and accept bids for the title or
6445	abstract company if he or she considers it appropriate to do so.
6446	1. The ownership and encumbrance report must be printed or
6447	typed on stationery or other paper showing a letterhead of the
6448	person, firm, or company that makes the search, and the
6449	signature of the person who makes the search or of an officer of
6450	the firm must be attached. The tax collector is not liable for
6451	payment to the firm unless these requirements are met.
6452	2. The tax collector may not accept or pay for any title
6453	search or abstract if no financial responsibility is assumed for
6454	the search. However, reasonable restrictions as to the liability
6455	or responsibility of the title or abstract company are
6456	acceptable. Notwithstanding s. 637.2071(3) 627.7843(3), the tax
6457	collector may contract for higher maximum liability limits.
6458	3. In order to establish uniform prices for ownership and
6459	encumbrance reports within the county, the tax collector shall
6460	ensure that the contract for ownership and encumbrance reports
6461	include all requests for title searches or abstracts for a given
6462	period of time.
6463	Section 76. Paragraph (d) of subsection (27) of section
6464	624.501, Florida Statutes, is amended to read:
6465	624.501 Filing, license, appointment, and miscellaneous
6466	fees.-The department, commission, or office, as appropriate,
6467	shall collect in advance, and persons so served shall pay to it
6468	in advance, fees, licenses, and miscellaneous charges as
6469	follows:
6470	(27) Title insurance agents:
6471	(d) Additional appointment continuation fee as prescribed
6472	by s. 637.3015 626.843 $5.00
6473	Section 77. Section 624.604, Florida Statutes, is amended
6474	to read:
6475	624.604 "Property insurance" defined.-"Property insurance"
6476	is insurance on real or personal property of every kind and of
6477	every interest therein, whether on land, water, or in the air,
6478	against loss or damage from any and all hazard or cause, and
6479	against loss consequential upon such loss or damage, other than
6480	noncontractual legal liability for any such loss or damage.
6481	Property insurance may contain a provision for accidental death
6482	or injury as part of a multiple peril homeowner's policy. Such
6483	insurance, which is incidental to the property insurance, is not
6484	subject to the provisions of this code applicable to life or
6485	health insurance. Property insurance does not include title
6486	insurance, as defined in s. 637.1004 624.608.
6487	Section 78. Paragraph (r) of subsection (1) of section
6488	624.605, Florida Statutes, is amended to read:
6489	624.605 "Casualty insurance" defined.-
6490	(1) "Casualty insurance" includes:
6491	(r) Insurance for debt cancellation products.-Insurance
6492	that a creditor may purchase against the risk of financial loss
6493	from the use of debt cancellation products with consumer loans
6494	or leases or retail installment contracts. Insurance for debt
6495	cancellation products is not liability insurance but shall be
6496	considered credit insurance only for the purposes of s.
6497	631.52(4).
6498	1. For purposes of this paragraph, the term "debt
6499	cancellation products" means loan, lease, or retail installment
6500	contract terms, or modifications to loan, lease, or retail
6501	installment contracts, under which a creditor agrees to cancel
6502	or suspend all or part of a customer's obligation to make
6503	payments upon the occurrence of specified events and includes,
6504	but is not limited to, debt cancellation contracts, debt
6505	suspension agreements, and guaranteed asset protection
6506	contracts. However, the term "debt cancellation products" does
6507	not include title insurance as defined in s. 637.1004 624.608.
6508	2. Debt cancellation products may be offered by financial
6509	institutions, as defined in s. 655.005(1)(h), insured depository
6510	institutions as defined in 12 U.S.C. s. 1813(c), and
6511	subsidiaries of such institutions, as provided in the financial
6512	institutions codes; by sellers as defined in s. 721.05, or by
6513	the parents, subsidiaries, or affiliated entities of sellers, in
6514	connection with the sale of timeshare interests; or by other
6515	business entities as may be specifically authorized by law, and
6516	such products shall not constitute insurance for purposes of the
6517	Florida Insurance Code.
6518	Section 79. Subsection (4) of section 625.031, Florida
6519	Statutes, is amended to read:
6520	625.031 Assets not allowed.-In addition to assets
6521	impliedly excluded by the provisions of s. 625.012, the
6522	following expressly shall not be allowed as assets in any
6523	determination of the financial condition of an insurer:
6524	(4) Furniture, fixtures, furnishings, safes, vehicles,
6525	libraries, stationery, literature, and supplies, other than data
6526	processing and accounting systems authorized under s.
6527	625.012(11), except in the case of title insurers such materials
6528	and plants as the insurer is expressly authorized to invest in
6529	under s. 637.20073 625.330 and except, in the case of any
6530	insurer, such personal property as the insurer is permitted to
6531	hold pursuant to part II of this chapter, or which is acquired
6532	through foreclosure of chattel mortgages acquired pursuant to s.
6533	625.329, or which is reasonably necessary for the maintenance
6534	and operation of real estate lawfully acquired and held by the
6535	insurer other than real estate used by it for home office,
6536	branch office, and similar purposes.
6537	Section 80. Section 626.207, Florida Statutes, is amended
6538	to read:
6539	626.207 Department rulemaking authority; waiting periods
6540	for applicants; penalties against licensees.-
6541	(1) The department shall adopt rules establishing specific
6542	waiting periods for applicants to become eligible for licensure
6543	following denial, suspension, or revocation pursuant to s.
6544	626.611, s. 626.621, s. 637.3017 626.8437, s. 637.3018 626.844,
6545	s. 626.935, s. 634.181, s. 634.191, s. 634.320, s. 634.321, s.
6546	634.422, s. 634.423, s. 642.041, or s. 642.043. The purpose of
6547	the waiting periods is to provide sufficient time to demonstrate
6548	reformation of character and rehabilitation. The waiting periods
6549	shall vary based on the type of conduct and the length of time
6550	since the conduct occurred and shall also be based on the
6551	probability that the propensity to commit illegal conduct has
6552	been overcome. The waiting periods may be adjusted based on
6553	aggravating and mitigating factors established by rule and
6554	consistent with this purpose.
6555	(2) The department shall adopt rules establishing specific
6556	penalties against licensees for violations of s. 626.611, s.
6557	626.621, s. 637.3017 626.8437, s. 637.3018 626.844, s. 626.935,
6558	s. 634.181, s. 634.191, s. 634.320, s. 634.321, s. 634.422, s.
6559	634.423, s. 642.041, or s. 642.043. The purpose of the
6560	revocation or suspension is to provide a sufficient penalty to
6561	deter future violations of the Florida Insurance Code. The
6562	imposition of a revocation or the length of suspension shall be
6563	based on the type of conduct and the probability that the
6564	propensity to commit further illegal conduct has been overcome
6565	at the time of eligibility for relicensure. The revocation or
6566	the length of suspension may be adjusted based on aggravating or
6567	mitigating factors, established by rule and consistent with this
6568	purpose.
6569	Section 81. Paragraph (t) of subsection (1) of section
6570	655.005, Florida Statutes, is amended to read:
6571	655.005 Definitions.-
6572	(1) As used in the financial institutions codes, unless
6573	the context otherwise requires, the term:
6574	(t) "Debt cancellation products" means loan, lease, or
6575	retail installment contract terms, or modifications or addenda
6576	to loan, lease, or retail installment contracts, under which a
6577	creditor agrees to cancel or suspend all or part of a customer's
6578	obligation to make payments upon the occurrence of specified
6579	events and includes, but is not limited to, debt cancellation
6580	contracts, debt suspension agreements, and guaranteed asset
6581	protection contracts offered by financial institutions, insured
6582	depository institutions as defined in 12 U.S.C. s. 1813(c), and
6583	subsidiaries of such institutions. However, the term "debt
6584	cancellation products" does not include title insurance as
6585	defined in s. 637.1004 624.608.
6586	Section 82. Paragraph (d) of subsection (6) of section
6587	701.041, Florida Statutes, is amended to read:
6588	701.041 Title insurer; mortgage release certificate.-
6589	(6) LIABILITY OF TITLE INSURER AND TITLE INSURANCE AGENT.-
6590	(d) Liability of a title insurer pursuant to this section
6591	shall be considered to be a title insurance claim on real
6592	property in this state pursuant to s. 637.2075 627.7865.
6593	Section 83. Paragraph (d) of subsection (14) of section
6594	721.05, Florida Statutes, is amended to read:
6595	721.05 Definitions.-As used in this chapter, the term:
6596	(14) "Escrow agent" includes only:
6597	(d) A title insurance agent that is licensed pursuant to
6598	s. 637.3006 626.8417, a title insurance agency that is licensed
6599	pursuant to s. 637.3007 626.8418, or a title insurer authorized
6600	to transact business in this state pursuant to s. 637.2001
6601	624.401.
6602	Section 84. Sections 624.608, 626.841, 626.8411, 626.9531,
6603	627.7711, and 627.776, Florida Statutes, are repealed.
6604	Section 85. This act shall take effect October 1, 2010.

CODING: Words stricken are deletions; words underlined are additions.