Bill Text: FL H0947 | 2011 | Regular Session | Introduced

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Bill Title: Property Insurance Appraisers/Appraisal Umpires

Spectrum: Partisan Bill (Republican 1-0)

Status: (Introduced - Dead) 2011-05-07 - Indefinitely postponed and withdrawn from consideration [H0947 Detail]

Download: Florida-2011-H0947-Introduced.html

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HB 947

1	A bill to be entitled
2	An act relating to property insurance appraisal umpires
3	and property insurance appraisers; amending s. 624.501,
4	F.S.; providing license application, issuance, biennial
5	renewal, or continuation fees for property insurance
6	appraisal umpires and property insurance appraisers;
7	amending s. 626.015, F.S.; defining the terms "property
8	insurance loss appraiser" and "property insurance
9	appraisal umpire" for purposes of the Licensing Procedures
10	Law; amending s. 626.016, F.S.; providing that property
11	insurance appraisal umpires and property insurance
12	appraisers are subject to the powers of the Department of
13	Financial Services, the Financial Services Commission, and
14	the Office of Insurance Regulation; amending s. 626.022,
15	F.S.; expanding the scope of part I of ch. 626, F.S., to
16	include property insurance appraisal umpires and property
17	insurance appraisers; deleting obsolete provisions;
18	amending s. 626.112, F.S.; requiring that property
19	insurance appraisal umpires and property insurance
20	appraisers operating in this state be licensed by the
21	department; creating part XII of ch. 626, F.S.; creating
22	s. 626.9931, F.S.; providing legislative findings and
23	purpose; creating s. 626.9932, F.S.; providing the scope
24	and parameters for application; creating s. 626.9933,
25	F.S.; providing definitions; creating s. 626.9934, F.S.;
26	providing procedures for the application for licensure as
27	a property insurance appraisal umpire and as a property
28	insurance appraiser; requiring that all applicants be
29	fingerprinted by a law enforcement agency or other entity
30	approved by the department at the time of application;
31	requiring the department to develop and maintain an
32	updated list of licensed umpires and licensed property
33	insurance appraisers; creating s. 626.9935, F.S.;
34	authorizing the department to adopt rules; creating s.
35	626.9936, F.S.; providing qualifications for licensure as
36	a property insurance appraisal umpire and as a property
37	insurance appraiser; creating s. 626.9937, F.S.; providing
38	professional and educational requirements for licensure as
39	a property insurance appraisal umpire and property
40	insurance appraiser; creating s. 626.9938, F.S.; providing
41	for the regulation of umpire and property insurance
42	appraiser course providers, instructors, and courses;
43	requiring the department to adopt rules establishing
44	standards for providers, instructors, and courses, and a
45	process for determining compliance with certain
46	prelicensure requirements; adopting forms to be used for
47	the administration of such requirements; creating s.
48	626.9939, F.S.; providing grounds for the compulsory
49	refusal, suspension, or revocation of an umpire's license
50	and a property insurance appraiser's license; creating s.
51	626.9940, F.S.; providing grounds for the discretionary
52	refusal, suspension, or revocation of an umpire's license
53	and a property insurance appraiser's license; creating s.
54	626.9941, F.S.; providing ethical standards for property
55	insurance appraisal umpires; creating s. 626.9942, F.S.;
56	requiring that a licensed property insurance appraisal
57	umpire and property insurance appraiser retain certain
58	records for a specified period; requiring that umpires and
59	property insurance appraisers make such records available
60	for inspection and copying by the department; requiring
61	that appraisals that are the subject of litigation or have
62	been admitted as evidence in a lawsuit be retained for a
63	specified period; creating s. 626.9943, F.S.; providing
64	ethical standards for licensed property insurance
65	appraisers; creating s. 627.4141, F.S.; providing
66	procedures that must be followed if a residential or
67	commercial property insurance contract provides that
68	either party may submit a written demand to enter into the
69	process of appraisal when the insured and the insurer fail
70	to mutually agree to the actual cash value, the amount of
71	loss, or the cost of repair or replacement of property for
72	which a claim has been filed; providing an exception upon
73	which an insurer may refuse to accept such demand;
74	authorizing each party to select a competent licensed and
75	independent appraiser and to notify the opposing party
76	within a specified period; requiring the appraisers to
77	select a licensed umpire from the department's list of
78	licensed umpires; authorizing either party to file a
79	petition, in a county or circuit court in the jurisdiction
80	in which the covered property is located, to designate a
81	licensed umpire if the appraisers cannot agree on the
82	selection of a licensed umpire; providing that appraisal
83	proceedings are informal unless the insurer and the
84	insured agree otherwise; defining and providing the scope
85	of the term "informal" for purposes of appraisal
86	proceedings; requiring each licensed appraiser to submit a
87	written report to the other licensed appraisers; requiring
88	that any differences in findings among the licensed
89	appraisers which cannot be resolved by the licensed
90	appraisers themselves within a specified period be
91	submitted to the licensed umpire for review; requiring the
92	licensed umpire to submit his or her conclusions regarding
93	any unresolved differences in the findings of the
94	licensed appraisers within a specified period; providing
95	that if either licensed appraiser agrees with the
96	conclusions of the licensed umpire, an itemized written
97	appraisal award signed by the licensed umpire and licensed
98	appraiser shall be filed with the insurer and shall
99	determine the amount of the loss; providing that the
100	appraisal award is binding upon the insurer and the
101	insured; providing for compensation of the licensed
102	appraisers and the licensed umpire; providing that the
103	Florida Arbitration Code does not apply to residential or
104	commercial property insurance loss appraisal proceedings;
105	providing that certain provisions of the Florida
106	Arbitration Code relating to procedural matters do apply;
107	prohibiting the appraisal process from addressing issues
108	involving coverage or lack thereof under an insurance
109	contract; authorizing the licensed umpire and licensed
110	appraisers to consider causation issues when necessary to
111	determine the amount of loss; amending ss. 626.172,
112	626.7845, 626.8305, and 626.8411, F.S.; conforming cross-
113	references; providing an effective date.
114
115	Be It Enacted by the Legislature of the State of Florida:
116
117	Section 1.  Subsection (5) of section 624.501, Florida
118	Statutes, is amended, and subsection (29) is added to that
119	section, to read:
120	624.501  Filing, license, appointment, and miscellaneous
121	fees.-The department, commission, or office, as appropriate,
122	shall collect in advance, and persons so served shall pay to it
123	in advance, fees, licenses, and miscellaneous charges as
124	follows:
125	(5)  All insurance representatives, property insurance
126	appraisal umpires, and property insurance appraisers application
127	for license, application for reinstatement of suspended license,
128	each filing, filing
129	fee..................................................$50.00
130	(29)  Property insurance appraisal umpire and property
131	insurance appraiser original appointment, biennial renewal, or
132	continuation by the
133	licensee..................................................$50.00
134	Section 2.  Present subsections (16), (17), and (18) of
135	section 626.015, Florida Statutes, are renumbered as subsections
136	(18), (19), and (20), respectively, and new subsections (16) and
137	(17) are added to that section to read:
138	626.015  Definitions.-As used in this part:
139	(16)  "Property insurance loss appraiser" has the same
140	meaning as in s. 626.9933.
141	(17)  "Property insurance appraisal umpire" has the same
142	meaning as in s. 626.9933.
143	Section 3.  Subsection (1) of section 626.016, Florida
144	Statutes, is amended to read:
145	626.016  Powers and duties of department, commission, and
146	office.-
147	(1)  The powers and duties of the Chief Financial Officer
148	and the department specified in this part apply only with
149	respect to insurance agents, insurance agencies, managing
150	general agents, insurance adjusters, reinsurance intermediaries,
151	viatical settlement brokers, customer representatives, service
152	representatives, property insurance appraisers, and property
153	insurance appraisal umpires agencies.
154	Section 4.  Subsection (1) of section 626.022, Florida
155	Statutes, is amended to read:
156	626.022  Scope of part.-
157	(1)  This part applies as to insurance agents, service
158	representatives, adjusters, property insurance appraisal
159	umpires, property insurance appraisers, and insurance agencies;
160	as to any and all kinds of insurance; and as to stock insurers,
161	mutual insurers, reciprocal insurers, and all other types of
162	insurers, except that:
163	(a)  It does not apply as to reinsurance, except that ss.
164	626.011-626.022, ss. 626.112-626.181, ss. 626.191-626.211, ss.
165	626.291-626.301, s. 626.331, ss. 626.342-626.521, ss. 626.541-
166	626.591, and ss. 626.601-626.711 shall apply as to reinsurance
167	intermediaries as defined in s. 626.7492.
168	(b)  The applicability of this chapter as to fraternal
169	benefit societies shall be as provided in chapter 632.
170	(c)  It does not apply to a bail bond agent, as defined in
171	s. 648.25, except as provided in chapter 648 or chapter 903.
172	(d)  It This part does not apply to a certified public
173	accountant licensed under chapter 473 who is acting within the
174	scope of the practice of public accounting, as defined in s.
175	473.302, if provided that the activities of the certified public
176	accountant are limited to advising a client of the necessity of
177	obtaining insurance, the amount of insurance needed, or the line
178	of coverage needed, and if provided that the certified public
179	accountant does not directly or indirectly receive or share in
180	any commission or referral fee.
181	Section 5.  Section 626.112, Florida Statutes, is amended
182	to read:
183	626.112  License and appointment required; agents, customer
184	representatives, adjusters, insurance agencies, service
185	representatives, managing general agents, property insurance
186	appraisers, and property insurance appraisal umpires.-
187	(1)(a)  No person may be, act as, or advertise or hold
188	himself or herself out to be an insurance agent, insurance
189	adjuster, property insurance appraiser, property insurance
190	appraisal umpire, or customer representative unless he or she is
191	currently licensed by the department and appointed by an
192	appropriate appointing entity or person.
193	(b)  Except as provided in subsection (8) (6) or in
194	applicable department rules, and in addition to other conduct
195	described in this chapter with respect to particular types of
196	agents, a license as an insurance agent, service representative,
197	customer representative, or limited customer representative is
198	required in order to engage in the solicitation of insurance.
199	For purposes of this requirement, as applicable to any of the
200	license types described in this section, the solicitation of
201	insurance is the attempt to persuade any person to purchase an
202	insurance product by:
203	1.  Describing the benefits or terms of insurance coverage,
204	including premiums or rates of return;
205	2.  Distributing an invitation to contract to prospective
206	purchasers;
207	3.  Making general or specific recommendations as to
208	insurance products;
209	4.  Completing orders or applications for insurance
210	products;
211	5.  Comparing insurance products, advising as to insurance
212	matters, or interpreting policies or coverages; or
213	6.  Offering or attempting to negotiate on behalf of
214	another person a viatical settlement contract as defined in s.
215	626.9911.
216
217	However, an employee leasing company licensed pursuant to
218	chapter 468 which is seeking to enter into a contract with an
219	employer that identifies products and services offered to
220	employees may deliver proposals for the purchase of employee
221	leasing services to prospective clients of the employee leasing
222	company setting forth the terms and conditions of doing
223	business; classify employees as permitted by s. 468.529; collect
224	information from prospective clients and other sources as
225	necessary to perform due diligence on the prospective client and
226	to prepare a proposal for services; provide and receive
227	enrollment forms, plans, and other documents; and discuss or
228	explain in general terms the conditions, limitations, options,
229	or exclusions of insurance benefit plans available to the client
230	or employees of the employee leasing company were the client to
231	contract with the employee leasing company. Any advertising
232	materials or other documents describing specific insurance
233	coverages must identify and be from a licensed insurer or its
234	licensed agent or a licensed and appointed agent employed by the
235	employee leasing company. The employee leasing company may not
236	advise or inform the prospective business client or individual
237	employees of specific coverage provisions, exclusions, or
238	limitations of particular plans. As to clients for which the
239	employee leasing company is providing services pursuant to s.
240	468.525(4), the employee leasing company may engage in
241	activities permitted by ss. 626.7315, 626.7845, and 626.8305,
242	subject to the restrictions specified in those sections. If a
243	prospective client requests more specific information concerning
244	the insurance provided by the employee leasing company, the
245	employee leasing company must refer the prospective business
246	client to the insurer or its licensed agent or to a licensed and
247	appointed agent employed by the employee leasing company.
248	(2)  No agent or customer representative shall solicit or
249	otherwise transact as agent or customer representative, or
250	represent or hold himself or herself out to be an agent or
251	customer representative as to, any kind or kinds of insurance
252	for as to which he or she is not then licensed and appointed.
253	(3)  No person shall act as an adjuster as to any class of
254	business for which he or she is not then licensed and appointed.
255	(4)  No property insurance appraiser shall act as an
256	adjuster as to any class of business for which he or she is not
257	licensed and appointed.
258	(5)  No property insurance appraisal umpire shall act as an
259	adjuster as to any class of business for which he or she is not
260	licensed and appointed.
261	(6)(4)  No person shall be, act as, or represent or hold
262	himself or herself out to be a service representative unless he
263	or she then holds a currently effective service representative
264	license and appointment. This subsection does not apply as to
265	similar representatives or employees of casualty insurers whose
266	duties are restricted to health insurance.
267	(7)(5)  No person shall be, act as, or represent or hold
268	himself or herself out to be a managing general agent unless he
269	or she then holds a currently effective managing general agent
270	license and appointment.
271	(8)(6)  An individual employed by a life or health insurer
272	as an officer or other salaried representative may solicit and
273	effect contracts of life insurance or annuities or of health
274	insurance, without being licensed as an agent, when and only if
275	when he or she is accompanied by and solicits for and on the
276	behalf of a licensed and appointed agent.
277	(9)(7)(a)  Effective October 1, 2006, No individual, firm,
278	partnership, corporation, association, or any other entity shall
279	act in its own name or under a trade name, directly or
280	indirectly, as an insurance agency, unless it complies with s.
281	626.172 with respect to possessing an insurance agency license
282	for each place of business at which it engages in any activity
283	which may be performed only by a licensed insurance agent. Each
284	agency engaged in business in this state before January 1, 2003,
285	which is wholly owned by insurance agents currently licensed and
286	appointed under this chapter, each incorporated agency whose
287	voting shares are traded on a securities exchange, each agency
288	designated and subject to supervision and inspection as a branch
289	office under the rules of the National Association of Securities
290	Dealers, and each agency whose primary function is offering
291	insurance as a service or member benefit to members of a
292	nonprofit corporation may file an application for registration
293	in lieu of licensure in accordance with s. 626.172(3). Each
294	agency engaged in business before October 1, 2006, shall file an
295	application for licensure or registration on or before October
296	1, 2006.
297	1.  If an agency is required to be licensed but fails to
298	file an application for licensure in accordance with this
299	section, the department shall impose on the agency an
300	administrative penalty in an amount of up to $10,000.
301	2.  If an agency is eligible for registration but fails to
302	file an application for registration or an application for
303	licensure in accordance with this section, the department shall
304	impose on the agency an administrative penalty in an amount of
305	up to $5,000.
306	(b)  A registered insurance agency shall, as a condition
307	precedent to continuing business, obtain an insurance agency
308	license if the department finds that, with respect to any
309	majority owner, partner, manager, director, officer, or other
310	person who manages or controls the agency, any person has:
311	1.  Been found guilty of, or has pleaded guilty or nolo
312	contendere to, a felony in this state or any other state
313	relating to the business of insurance or to an insurance agency,
314	without regard to whether a judgment of conviction has been
315	entered by the court having jurisdiction of the cases.
316	2.  Employed any individual in a managerial capacity or in
317	a capacity dealing with the public who is under an order of
318	revocation or suspension issued by the department. An insurance
319	agency may request, on forms prescribed by the department,
320	verification of any person's license status. If a request is
321	mailed within 5 working days after an employee is hired, and the
322	employee's license is currently suspended or revoked, the agency
323	shall not be required to obtain a license, if the unlicensed
324	person's employment is immediately terminated.
325	3.  Operated the agency or permitted the agency to be
326	operated in violation of s. 626.747.
327	4.  With such frequency as to have made the operation of
328	the agency hazardous to the insurance-buying public or other
329	persons:
330	a.  Solicited or handled controlled business. This
331	subparagraph shall not prohibit the licensing of any lending or
332	financing institution or creditor, with respect to insurance
333	only, under credit life or disability insurance policies of
334	borrowers from the institutions, which policies are subject to
335	part IX of chapter 627.
336	b.  Misappropriated, converted, or unlawfully withheld
337	moneys belonging to insurers, insureds, beneficiaries, or others
338	and received in the conduct of business under the license.
339	c.  Unlawfully rebated, attempted to unlawfully rebate, or
340	unlawfully divided or offered to divide commissions with
341	another.
342	d.  Misrepresented any insurance policy or annuity
343	contract, or used deception with regard to any policy or
344	contract, done either in person or by any form of dissemination
345	of information or advertising.
346	e.  Violated any provision of this code or any other law
347	applicable to the business of insurance in the course of dealing
348	under the license.
349	f.  Violated any lawful order or rule of the department.
350	g.  Failed or refused, upon demand, to pay over to any
351	insurer he or she represents or has represented any money coming
352	into his or her hands belonging to the insurer.
353	h.  Violated the provision against twisting as defined in
354	s. 626.9541(1)(l).
355	i.  In the conduct of business, engaged in unfair methods
356	of competition or in unfair or deceptive acts or practices, as
357	prohibited under part IX of this chapter.
358	j.  Willfully overinsured any property insurance risk.
359	k.  Engaged in fraudulent or dishonest practices in the
360	conduct of business arising out of activities related to
361	insurance or the insurance agency.
362	l.  Demonstrated lack of fitness or trustworthiness to
363	engage in the business of insurance arising out of activities
364	related to insurance or the insurance agency.
365	m.  Authorized or knowingly allowed individuals to transact
366	insurance who were not then licensed as required by this code.
367	5.  Knowingly employed any person who within the preceding
368	3 years has had his or her relationship with an agency
369	terminated in accordance with paragraph (d).
370	6.  Willfully circumvented the requirements or prohibitions
371	of this code.
372	(10)(8)  No insurance agent, insurance agency, or other
373	person licensed under the Insurance Code may pay any fee or
374	other consideration to an unlicensed person other than an
375	insurance agency for the referral of prospective purchasers to
376	an insurance agent which is in any way dependent upon whether
377	the referral results in the purchase of an insurance product.
378	(11)(9)  Any person who knowingly transacts insurance or
379	otherwise engages in insurance activities in this state without
380	a license in violation of this section commits a felony of the
381	third degree, punishable as provided in s. 775.082, s. 775.083,
382	or s. 775.084.
383	(12)  Effective July 1, 2012, a person may not act as,
384	represent himself or herself as, or hold himself or herself out
385	to be a property insurance appraisal umpire unless he or she
386	holds a current property insurance appraisal umpire license
387	issued by the department.
388	Section 6.  Part XII of chapter 626, Florida Statutes,
389	consisting of sections 626.9931, 626.9932, 626.9933, 626.9934,
390	626.9935, 626.9936, 626.9937, 626.9938, 626.9939, 626.9940,
391	626.9941, 626.9942, and 626.9943, is created to read:
392	626.9931  Purpose.-The Legislature finds that it is in the
393	interest of the public welfare to regulate property insurance
394	loss appraisers and property insurance appraisal umpires in this
395	state.
396	626.9932  Scope of part.-This part applies to residential
397	and commercial residential property insurance contracts that
398	contain an appraisal clause and to the umpires and appraisers
399	who participate in the appraisal process as a result of an
400	appraisal clause.
401	626.9933  Definitions.-As used in this part, the term:
402	(1)  "Appraisal" means the process of estimating or
403	evaluating actual cash value, the amount of loss, or the cost of
404	repair or replacement of property for the purpose of quantifying
405	the monetary value of a property loss claim when an insurer and
406	an insured have failed to mutually agree on the value of the
407	loss pursuant to a residential or commercial residential
408	property insurance contract that is required in the residential
409	or commercial residential property insurance contract for the
410	resolution of a claim dispute by appraisal.
411	(2)  "Competent" means properly licensed, sufficiently
412	qualified and capable to perform an appraisal.
413	(3)  "Independent" means not subject to control,
414	restriction, modification, and limitation by the appointing
415	party.
416	(4)  "Property insurance appraisal umpire" or "umpire"
417	means a competent, independent, licensed, and impartial third
418	party selected by the licensed appraisers for the insurer and
419	the insured to resolve issues for which the licensed appraisers
420	are unable to reach an agreement in the course of the appraisal
421	process pursuant to a residential or commercial residential
422	property insurance contract that is required to provide for the
423	resolution of a claim dispute by appraisal.
424	(5)  "Property insurance loss appraiser" or "appraiser"
425	mean a competent, licensed, and independent third party selected
426	by an insurer or an insured to develop an appraisal for purposes
427	of the appraisal process under a residential or commercial
428	residential property insurance contract that is required to
429	provide for the resolution of a claim dispute by appraisal.
430	626.9934  Property insurance appraisal umpire and property
431	insurance appraiser applications; fingerprinting required;
432	umpire list.-
433	(1)  Application for a license under this part shall be
434	made as provided in s. 626.171 and related sections of this
435	code.
436	(2)  At the time of application, the applicant must be
437	fingerprinted by a law enforcement agency or other entity
438	approved by the department and must pay the fingerprint
439	processing fee specified in s. 624.501. Fingerprints must be
440	processed in accordance with s. 624.34.
441	(3)  The department shall develop and maintain as a public
442	record a current list of licensed property insurance appraisal
443	umpires and licensed property insurance appraisers.
444	626.9935  Rulemaking authority.-The department may adopt
445	rules to administer the requirements of this part.
446	626.9936  Qualifications for licensure as a property
447	insurance appraisal umpire or property insurance appraiser.-
448	(1)  The department may not issue a license as a property
449	insurance appraisal umpire or a property insurance appraiser to
450	any individual found by it to be untrustworthy or incompetent,
451	or who has not met the following qualifications:
452	(a)  The applicant has filed an application with the
453	department in accordance with s. 626.171.
454	(b)  The applicant is a natural person who is at least 18
455	years of age.
456	(c)  The applicant is a United States citizen or legal
457	alien who possesses work authorization from the United States
458	Bureau of Citizenship and Immigration Services.
459	(d)  The applicant has completed the education, experience,
460	or licensing requirements in s. 626.9937.
461	(2)  An incomplete application expires 6 months after the
462	date it is received.
463	(3)  An applicant seeking to become licensed under this
464	part may not be rejected solely by virtue of membership or lack
465	of membership in any particular appraisal organization.
466	626.9937  Professional or educational requirements for
467	insurance appraisal umpires and property insurance appraisers
468	applicants.-The department may not issue a license to an
469	applicant for licensure as a property insurance appraisal umpire
470	or property insurance appraiser unless the applicant meets one
471	of the following requirements:
472	(1)  The applicant is currently licensed, registered,
473	certified, or approved as an engineer as defined in s. 471.005,
474	or as a retired professional engineer as defined in s. 471.005
475	and has taught or successfully completed 4 hours of classroom
476	coursework, approved by the department, specifically related to
477	construction, building codes, appraisal procedure, appraisal
478	preparation, and any other related material deemed appropriate
479	by the department.
480	(2)  The applicant is currently or, within the 5 years
481	immediately preceding the date on which the application is filed
482	with the department, has been licensed, registered, certified,
483	or approved as a general contractor, building contractor, or
484	residential contractor as defined in s. 489.105 and has taught
485	or successfully completed 4 hours of classroom coursework,
486	approved by the department, specifically related to
487	construction, building codes, appraisal procedure, appraisal
488	preparation, and any other related material deemed appropriate
489	by the department.
490	(3)  The applicant is currently or, within the 5 years
491	immediately preceding the date on which the application is filed
492	with the department, has been licensed or registered as an
493	architect to engage in the practice of architecture pursuant to
494	part I of chapter 481 and has taught or successfully completed 4
495	hours of classroom coursework, approved by the department,
496	specifically related to construction, building codes, appraisal
497	procedure, appraisal preparation, and any other related material
498	deemed appropriate by the department.
499	(4)  The applicant is currently or, within the 5 years
500	immediately preceding the date on which the application is filed
501	with the department, has been a qualified geologist or
502	professional geologist as defined in s. 492.102 and has taught
503	or successfully completed 4 hours of classroom coursework,
504	approved by the department, specifically related to
505	construction, building codes, appraisal procedure, appraisal
506	preparation, and any other related material deemed appropriate
507	by the department.
508	(5)  The applicant is currently or, within the 5 years
509	immediately preceding the date on which the application is filed
510	with the department, has been licensed as a certified public
511	accountant as defined in s. 473.302 and has taught or
512	successfully completed 4 hours of classroom coursework, approved
513	by the department, specifically related to construction,
514	building codes, appraisal procedure, appraisal preparation, and
515	any other related material deemed appropriate by the department.
516	(6)  The applicant is currently or, within the 5 years
517	immediately preceding the date on which the application is filed
518	with the department, has been licensed as an attorney at law in
519	this state and has taught or successfully completed 4 hours of
520	classroom coursework, approved by the department, specifically
521	related to construction, building codes, appraisal procedure,
522	appraisal preparation, and any other related material deemed
523	appropriate by the department.
524	(7)  The applicant has received a baccalaureate degree from
525	an accredited 4-year college in the field of engineering,
526	architecture, or building construction and has taught or
527	successfully completed 4 hours of classroom coursework, approved
528	by the department, specifically related to construction,
529	building codes, appraisal procedure, appraisal preparation, and
530	any other related material deemed appropriate by the department.
531	(8)  The applicant is a currently licensed adjuster whose
532	license covers all lines of insurance except the life and
533	annuities class. The adjuster's license must include the
534	property and casualty class of insurance. The currently licensed
535	adjuster must be licensed for at least 3 years to qualify for a
536	property insurance appraiser's license. The currently licensed
537	adjuster must be licensed for at least 5 years to qualify for a
538	property insurance appraisal umpire's license.
539	(a)  Has 1 year of proven experience as an employee of a
540	general contractor, building contractor, or residential
541	contractor; or
542	(b)  Has received a minimum of 8 semester hours or 12
543	quarter hours of credit from an accredited college in the field
544	of accounting, geology, engineering, architecture, or building
545	construction.
546	(9)  The applicant has successfully completed 40 hours of
547	classroom coursework, approved by the department, specifically
548	related to construction, building codes, appraisal procedure,
549	appraisal preparation, property insurance, and any other related
550	material deemed appropriate by the department.
551	626.9938  Regulation of umpire and property appraiser
552	course providers, instructors, and courses.-
553	(1)  Each umpire or property appraiser course provider,
554	instructor, and classroom course must be approved by and
555	registered with the department before prelicensure courses for
556	property insurance appraisal umpires or property insurance
557	appraisers may be offered. Each classroom course must include a
558	written examination at the conclusion of the course and must
559	cover all of the material contained in the course. A student may
560	not receive credit for the course unless the student achieves a
561	grade of at least 75 on the examination.
562	(2)  The department shall adopt rules establishing:
563	(a)  Standards for the approval, registration, discipline,
564	or removal from registration of course providers, instructors,
565	and courses. The standards must be designed to ensure that
566	instructors have the knowledge, competence, and integrity to
567	fulfill the educational objectives of the prelicensure
568	requirements of this part.
569	(b)  A process for determining compliance with the
570	prelicensure requirements of this part. The department shall
571	adopt rules prescribing the forms necessary to administer the
572	prelicensure requirements of this part.
573	(3)  Approval to teach prescribed or approved appraisal
574	courses does not entitle the instructor to teach any courses
575	outside the scope of this part.
576	626.9939  Grounds for compulsory refusal, suspension, or
577	revocation of an umpire's or appraiser's license.-In addition to
578	the grounds set forth in s. 626.611, the department shall deny
579	an application for, and suspend, revoke, or refuse to renew or
580	continue, a license as a property insurance appraisal umpire or
581	property insurance appraiser if the applicant or licensee has:
582	(1)  Violated a duty imposed upon her or him by law or by
583	the terms of a contract, whether written, oral, express, or
584	implied, in an appraisal; has aided, assisted, or conspired with
585	any other person engaged in any such misconduct and in
586	furtherance thereof; or has formed an intent, design, or scheme
587	to engage in such misconduct and committed an overt act in
588	furtherance of such intent, design, or scheme. It is immaterial
589	to a finding that a licensee has committed a violation of this
590	subsection that the victim or intended victim of the misconduct
591	has sustained no damage or loss, that the damage or loss has
592	been settled and paid after the discovery of misconduct, or that
593	such victim or intended victim was a customer or a person in a
594	confidential relation with the licensee or was an identified
595	member of the general public.
596	(2)  Violated any provision of this part or any lawful
597	order or rule of the department.
598	(3)  Had a registration, license, or certification as an
599	appraiser revoked, suspended, or otherwise acted against; has
600	had his or her registration, license, or certificate to practice
601	or conduct any regulated profession, business, or vocation
602	revoked or suspended by this or any other state, any nation, or
603	any possession or district of the United States; or has had an
604	application for such registration, licensure, or certification
605	to practice or conduct any regulated profession, business, or
606	vocation denied by this or any other state, any nation, or any
607	possession or district of the United States.
608	(4)  Made or filed a report or record, written or oral,
609	which the licensee knows to be false; has willfully failed to
610	file a report or record required by state or federal law; has
611	willfully impeded or obstructed such filing; or has induced
612	another person to impede or obstruct such filing.
613	(5)  Accepted an appointment as an umpire or appraiser if
614	the appointment is contingent upon the umpire or appraiser
615	reporting a predetermined result, analysis, or opinion, or if
616	the fee to be paid for the services of the umpire or appraiser
617	is contingent upon the opinion, conclusion, or valuation reached
618	by the umpire or appraiser.
619	626.9940  Grounds for discretionary denial, suspension, or
620	revocation of a license as a property insurance appraisal umpire
621	or property insurance appraiser.-
622	(1)  In addition to the applicable grounds set forth in s.
623	626.621, the department may deny an application for and suspend,
624	revoke, or refuse to renew or continue a license as a property
625	insurance appraisal umpire if the applicant or licensee has:
626	(a)  Failed to timely communicate with the appraisers
627	without good cause.
628	(b)  Failed or refused to exercise reasonable diligence in
629	submitting recommendations to the appraisers.
630	(c)  Violated any ethical standard for property insurance
631	appraisal umpires set forth in s. 626.9941.
632	(d)  Failed to inform the department in writing within 30
633	days after pleading guilty or nolo contendere to, or being
634	convicted or found guilty of, any felony.
635	(e)  Failed to timely notify the department of any change
636	in business location, or has failed to fully disclose all
637	business locations from which he or she operates as a property
638	insurance appraisal umpire.
639	(2)  In addition to the applicable grounds set forth in s.
640	626.621, the department may deny an application for and suspend,
641	revoke, or refuse to renew or continue a license as a property
642	insurance appraiser if the applicant or licensee has:
643	(a)  Violated any ethical standard for property insurance
644	appraisal umpires set forth in s. 626.9942.
645	(b)  Failed to inform the department in writing within 30
646	days after pleading guilty or nolo contendere to, or being
647	convicted or found guilty of, any felony.
648	(c)  Failed to timely notify the department of any change
649	in business location, or has failed to fully disclose all
650	business locations from which he or she operates as a property
651	insurance appraisal umpire.
652	626.9941  Ethical standards for property insurance
653	appraisal umpires.-
654	(1)  CONFIDENTIALITY.-An umpire shall maintain
655	confidentiality of all information revealed during an appraisal
656	except where disclosure is required by law.
657	(2)  RECORDKEEPING.-An umpire shall maintain
658	confidentiality in the storage and disposal of records and may
659	not disclose any identifying information when materials are used
660	for research, training, or statistical compilations.
661	(3)  FEES AND EXPENSES.-An umpire holds a position of
662	trust. Fees charged for appraisal services shall be reasonable
663	and consistent with the nature of the case. An umpire shall be
664	guided by the following general principles in determining fees:
665	(a)  Any charges for services as an umpire based on time
666	may not exceed actual time spent or allocated;
667	(b)  Charges for costs shall be for those actually
668	incurred; and
669	(c)  An umpire may not charge, agree to, or accept as
670	compensation or reimbursement any payment, commission, or fee
671	that is based on a percentage basis, or that is contingent upon
672	arriving at a particular value or any future happening or
673	outcome of the assignment.
674	(4)  MAINTENANCE OF RECORDS.-An umpire shall maintain
675	records necessary to support charges for services and expenses,
676	and upon request shall provide an accounting of all applicable
677	charges to the parties.
678	(5)  ADVERTISING.-An umpire may not engage in marketing
679	practices that contain false or misleading information. An
680	umpire shall ensure that any advertisements of the umpire's
681	qualifications, services to be rendered, or the appraisal
682	process are accurate and honest. An umpire may not make claims
683	of achieving specific outcomes or promises implying favoritism
684	for the purpose of obtaining business.
685	(6)  INTEGRITY AND IMPARTIALITY.-An umpire may not accept
686	any engagement, provide any service, or perform any act that
687	would compromise the umpire's integrity or impartiality.
688	(7)  SKILL AND EXPERIENCE.-An umpire shall decline an
689	appointment or selection, withdraw, or request appropriate
690	assistance when the facts and circumstances of the appraisal are
691	beyond the umpire's skill or experience.
692	626.9942  Retention of records.-An umpire or appraiser
693	licensed under this part shall retain for at least 5 years
694	original or true copies of any contracts engaging the umpire's
695	services, appraisal reports, and supporting data assembled and
696	formulated by the umpire in preparing appraisal reports. The
697	period for retaining the records applicable to each engagement
698	starts on the date of the submission of the appraisal report to
699	the client. These records must be made available by the umpire
700	or appraiser for inspection and copying by the department upon
701	reasonable notice to the umpire. If an appraisal has been the
702	subject of, or has been admitted as evidence in, a lawsuit,
703	reports and records must be retained for at least 2 years after
704	the date the trial ends.
705	626.9943  Ethical standards for property insurance
706	appraisers.-
707	(1)  INTEGRITY AND IMPARTIALITY.-
708	(a)  A licensed appraiser may not accept an appointment
709	unless he or she can serve impartially; can serve independently
710	from the party appointing him or her; is competent to serve; and
711	is available to promptly commence the appraisal, and thereafter
712	devote the time and attention for its completion that the
713	parties are reasonably entitled to expect.
714	(b)  A licensed appraiser shall conduct the appraisal
715	process in a manner that advances the fair and efficient
716	resolution of the matters submitted for decision. A licensed
717	appraiser shall make all reasonable efforts to prevent delays in
718	the appraisal process, the harassment of parties or other
719	participants, or other abuse or disruption of the appraisal
720	process.
721	(c)  Once a licensed appraiser has accepted an appointment,
722	the appraiser may not withdraw or abandon the appointment unless
723	compelled to do so by unanticipated circumstances that would
724	render it impossible or impracticable to continue.
725	(d)  The licensed appraiser shall, after careful
726	deliberation, decide all issues submitted for determination and
727	no other issues. A licensed appraiser shall decide all matters
728	justly, exercising independent judgment, and may not allow
729	outside pressure to affect the decision. An appraiser may not
730	delegate the duty to decide to any other person.
731	(2)  COMMUNICATIONS WITH PARTIES.-
732	(a)  If an agreement of the parties establishes the manner
733	or content of the communications between the appraisers and the
734	parties, the appraiser shall abide by such agreement. In the
735	absence of agreement, an appraiser may not discuss a proceeding
736	with any party in the absence of any other party, except in the
737	following circumstances:
738	1.  If the appointment of the appraiser is being
739	considered, the prospective appraiser may ask about the
740	identities of the parties, counsel, and the general nature of
741	the case, and may respond to inquiries from a party or its
742	counsel designed to determine his or her suitability and
743	availability for the appointment;
744	2.  To consult with the party who appointed the appraiser
745	concerning the selection of a neutral umpire;
746	3.  To make arrangements for any compensation to be paid by
747	the party who appointed the appraiser; or
748	4.  To make arrangements for obtaining materials and
749	inspection of the property with the party who appointed the
750	appraiser. Such communication is limited to scheduling and the
751	exchange of materials.
752	(b)  There may be no communications whereby a party
753	dictates to an appraiser what the result of the proceedings must
754	be, what matters or elements may be included or considered by
755	the appraiser, or what actions the appraiser may take.
756	(3)  GIFTS AND SOLICITATION.-An appraiser may not give or
757	accept any gift, favor, loan, or other item of value in an
758	appraisal process except for their reasonable fee. During the
759	appraisal process, an appraiser may not solicit or otherwise
760	attempt to procure future professional services.
761	(4)  FEES and EXPENSES.-An appraiser holds a position of
762	trust. Fees charged for appraisal services shall be reasonable
763	and consistent with the nature of the case. An appraiser shall
764	be guided by the following general principles in determining
765	fees:
766	(a)  Any charges for services as an appraiser based on time
767	may not exceed the actual time spent or allocated; and
768	(b)  Charges for costs shall be only for those costs
769	actually incurred.
770	(5)  MAINTENANCE OF RECORDS.-An appraiser shall maintain
771	records to support charges for services, fees, and expenses, and
772	upon request shall provide an accounting of all applicable
773	charges to the parties.
774	(6)  ADVERTISING.-An appraiser may not engage in marketing
775	practices that contain false or misleading information. An
776	appraiser shall ensure that any advertisements of the
777	appraiser's qualifications, services to be rendered, or the
778	appraisal process are accurate and honest. An appraiser may not
779	make claims of achieving specific outcomes or promises implying
780	favoritism for the purpose of obtaining business.
781	(7)  SKILL AND EXPERIENCE.-An appraiser shall decline an
782	appointment or selection, withdraw, or request appropriate
783	assistance when the facts and circumstances of the appraisal are
784	beyond the appraiser's skill or experience.
785	Section 7.  Section 627.4141, Florida Statutes, is created
786	to read:
787	627.4141  Residential or commercial property insurance loss
788	appraisal.-A residential or commercial residential property
789	insurance contract must provide that either party may submit a
790	written demand to enter into the process of appraisal if the
791	insured and the insurer fail to mutually agree as to the actual
792	cash value, the amount of loss, or the cost of repair or
793	replacement of property for which a claim has been filed, that
794	process shall be governed by this section. The insurer may
795	refuse to accept the demand only if the insured materially fails
796	to comply with the proof-of-loss obligations of the insured as
797	set forth in the policy conditions. The insurer is deemed to
798	have waived its right to demand an appraisal if it fails to
799	invoke an appraisal within 30 days after the insured
800	substantially complies with the proof-of-loss obligation as set
801	forth in the policy conditions.
802	(1)  Each party shall select a competent, licensed, and
803	independent appraiser and notify the other party of the
804	appraiser selected within 20 days after the date of the demand
805	for an appraisal. The appraisers shall select a competent,
806	independent, and impartial umpire who is on the department's
807	list of licensed property insurance appraisal umpires or who is
808	otherwise qualified and exempt from licensure as provided in s.
809	626.112(10). If the appraisers are unable to agree on an umpire
810	within 15 days, the insured or the insurer may file a petition
811	with a county or circuit court in the jurisdiction in which the
812	covered property is located to designate a licensed property
813	insurance appraisal umpire for the appraisal.
814	(2)  Appraisal proceedings are informal unless the insured
815	and the insurer mutually agree otherwise. For purposes of this
816	section, "informal" means that no formal discovery shall be
817	conducted, including depositions, interrogatories, requests for
818	admission, or other forms of formal civil discovery; no formal
819	rules of evidence shall be applied; and no court reporter shall
820	be used for the proceedings. However, either appraiser may rely
821	on experts in reaching the value of loss.
822	(3)  Within 60 days after being appointed, each appraiser
823	shall appraise the loss and submit a written report to the other
824	appraiser, separately stating the cost of the loss, the actual
825	cash value, or the cost to repair or replace each item. Within
826	30 days after submitting the reports, the appraisers shall
827	attempt to resolve any differences in the appraisals and reach a
828	mutual agreement on all matters. If the appraisers are unable to
829	agree, they shall, within 5 days, submit the differences in
830	their findings in writing to the umpire. However, the appraisers
831	have an additional 60 days after appointment to appraise the
832	loss and submit a written report if the loss is covered under a
833	commercial property insurance policy and the insured structure
834	is 10,000 square feet or more, or is covered under a commercial
835	residential or residential insurance policy and the claim is
836	based on and made subsequent to a hurricane designated by the
837	National Hurricane Center or a declared emergency by the
838	Governor.
839	(4)  The umpire shall review any differences in appraisals
840	submitted by the appraisers and determine the amount of the loss
841	for each item submitted. Within 10 days after receipt of any
842	differences in appraisals, the umpire shall submit the umpire's
843	conclusions in writing to each appraiser.
844	(5)  If either appraiser agrees with the conclusions of the
845	umpire, an itemized written appraisal award signed by the umpire
846	and the appraiser shall be filed with the insurer and shall
847	determine the amount of the loss.
848	(6)  The appraisal award is binding on the insurer and the
849	insured with regard to the amount of the loss. If the insurance
850	policy so provides, the insurer may assert that there is no
851	coverage under the policy for the loss as a whole or that there
852	has been a violation of the policy conditions with respect to
853	fraud, lack of notice, or failure to cooperate.
854	(7)  Each appraiser shall be paid by the party who selects
855	the appraiser and the expenses of the appraisal and fees of the
856	umpire shall be paid by the parties equally, except that if the
857	final determination of the amount of the loss is 50 percent
858	greater than the insurer's preappraisal estimate of the loss
859	communicated to the insured in writing, the insurer shall pay
860	all the expenses, including any fees and expenses charged by the
861	insured's appraiser and all fees and expenses of the umpire.
862	This subsection does not affect an insured's claim for
863	attorney's fees under s. 627.428.
864	(8)  The provisions of the Florida Arbitration Code do not
865	apply to residential and commercial residential property
866	insurance loss appraisal proceedings. However, the provisions
867	regarding proceedings to compel and stay arbitration in s.
868	682.03; procedures for correcting, vacating, or modifying an
869	award in ss. 682.10, 682.13, and 682.14; procedures for entry of
870	judgment on the award in s. 682.15; and procedures regarding
871	confirmation of an award in s. 682.12 do apply.
872	(9)  The appraisal process may not address issues involving
873	whether or not the loss or damage is covered under the terms of
874	the insurance contract. However, the appraisers and the umpire
875	may consider causation issues, if necessary, to determine the
876	amount of loss.
877	Section 8.  Subsection (3) of section 626.172, Florida
878	Statutes, is amended to read:
879	626.172  Application for insurance agency license.-
880	(3)  The department shall issue a registration as an
881	insurance agency to any agency that files a written application
882	with the department and qualifies for registration. The
883	application for registration shall require the agency to provide
884	the same information required for an agency licensed under
885	subsection (2), the agent identification number for each owner
886	who is a licensed agent, proof that the agency qualifies for
887	registration as provided in s. 626.112(9)(7), and any other
888	additional information that the department determines is
889	necessary in order to demonstrate that the agency qualifies for
890	registration. The application must be signed by the owner or
891	owners of the agency. If the agency is incorporated, the
892	application must be signed by the president and the secretary of
893	the corporation. An agent who owns the agency need not file
894	fingerprints with the department if the agent obtained a license
895	under this chapter and the license is currently valid.
896	(a)  If an application for registration is denied, the
897	agency must file an application for licensure no later than 30
898	days after the date of the denial of registration.
899	(b)  A registered insurance agency must file an application
900	for licensure no later than 30 days after the date that any
901	person who is not a licensed and appointed agent in this state
902	acquires any ownership interest in the agency. If an agency
903	fails to file an application for licensure in compliance with
904	this paragraph, the department shall impose an administrative
905	penalty in an amount of up to $5,000 on the agency.
906	(c)  Sections 626.6115 and 626.6215 do not apply to
907	agencies registered under this subsection.
908	Section 9.  Subsection (2) of section 626.7845, Florida
909	Statutes, is amended to read:
910	626.7845  Prohibition against unlicensed transaction of
911	life insurance.-
912	(2)  Except as provided in s. 626.112(8)(6), with respect
913	to any line of authority specified in s. 626.015(10), no
914	individual shall, unless licensed as a life agent:
915	(a)  Solicit insurance or annuities or procure
916	applications;
917	(b)  In this state, engage or hold himself or herself out
918	as engaging in the business of analyzing or abstracting
919	insurance policies or of counseling or advising or giving
920	opinions to persons relative to insurance or insurance contracts
921	other than:
922	1.  As a consulting actuary advising an insurer; or
923	2.  As to the counseling and advising of labor unions,
924	associations, trustees, employers, or other business entities,
925	the subsidiaries and affiliates of each, relative to their
926	interests and those of their members or employees under
927	insurance benefit plans; or
928	(c)  In this state, from this state, or with a resident of
929	this state, offer or attempt to negotiate on behalf of another
930	person a viatical settlement contract as defined in s. 626.9911.
931	Section 10.  Section 626.8305, Florida Statutes, is amended
932	to read:
933	626.8305  Prohibition against the unlicensed transaction of
934	health insurance.-Except as provided in s. 626.112(8)(6), with
935	respect to any line of authority specified in s. 626.015(6), no
936	individual shall, unless licensed as a health agent:
937	(1)  Solicit insurance or procure applications; or
938	(2)  In this state, engage or hold himself or herself out
939	as engaging in the business of analyzing or abstracting
940	insurance policies or of counseling or advising or giving
941	opinions to persons relative to insurance contracts other than:
942	(a)  As a consulting actuary advising insurers; or
943	(b)  As to the counseling and advising of labor unions,
944	associations, trustees, employers, or other business entities,
945	the subsidiaries and affiliates of each, relative to their
946	interests and those of their members or employees under
947	insurance benefit plans.
948	Section 11.  Paragraph (a) of subsection (2) of section
949	626.8411, Florida Statutes, is amended to read:
950	626.8411  Application of Florida Insurance Code provisions
951	to title insurance agents or agencies.-
952	(2)  The following provisions of part I do not apply to
953	title insurance agents or title insurance agencies:
954	(a)  Section 626.112(9)(7), relating to licensing of
955	insurance agencies.
956	Section 12.  This act shall take effect July 1, 2011.

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