Bill Text: FL S0252 | 2015 | Regular Session | Comm Sub
NOTE: There are more recent revisions of this legislation. Read Latest Draft
Bill Title: Insurance
Spectrum: Slight Partisan Bill (? 3-1)
Status: (Passed) 2015-05-22 - Chapter No. 2015-42 [S0252 Detail]
Download: Florida-2015-S0252-Comm_Sub.html
Bill Title: Insurance
Spectrum: Slight Partisan Bill (? 3-1)
Status: (Passed) 2015-05-22 - Chapter No. 2015-42 [S0252 Detail]
Download: Florida-2015-S0252-Comm_Sub.html
Florida Senate - 2015 CS for SB 252 By the Committee on Banking and Insurance; and Senator Smith 597-01934-15 2015252c1 1 A bill to be entitled 2 An act relating to insurance; amending s. 624.425, 3 F.S.; providing that the absence of a countersignature 4 does not affect the validity of a policy or contract 5 of insurance; amending s. 626.916, F.S.; requiring the 6 statement of diligent effort from a retail or 7 producing agent be in a specified form; amending s. 8 626.931, F.S.; deleting provisions that require 9 surplus lines agents to file a quarterly affidavit 10 with the Florida Surplus Lines Office; amending ss. 11 626.932, 626.935, and 626.936, F.S.; conforming 12 provisions to changes made by act; providing an 13 effective date. 14 15 Be It Enacted by the Legislature of the State of Florida: 16 17 Section 1. Subsection (6) is added to section 624.425, 18 Florida Statutes, to read: 19 624.425 Agent countersignature required, property, 20 casualty, surety insurance.— 21 (6) The absence of a countersignature required under this 22 section does not affect the validity of a policy or contract of 23 insurance. 24 Section 2. Paragraph (a) of subsection (1) of section 25 626.916, Florida Statutes, is amended to read: 26 626.916 Eligibility for export.— 27 (1) No insurance coverage shall be eligible for export 28 unless it meets all of the following conditions: 29 (a) The full amount of insurance required must not be 30 procurable, after a diligent effort has been made by the 31 producing agent to do so, from among the insurers authorized to 32 transact and actually writing that kind and class of insurance 33 in this state, and the amount of insurance exported shall be 34 only the excess over the amount so procurable from authorized 35 insurers. Surplus lines agents must verify that a diligent 36 effort has been made by requiring a properly documented 37 statement of diligent effort, which must be in the form 38 prescribed by department rule or, if a form is not prescribed by 39 rule, in the form of an affidavit, from the retail or producing 40 agent. However, to be in compliance with the diligent effort 41 requirement, the surplus lines agent’s reliance must be 42 reasonable under the particular circumstances surrounding the 43 export of that particular risk. Reasonableness shall be assessed 44 by taking into account factors which include, but are not 45 limited to, a regularly conducted program of verification of the 46 information provided by the retail or producing agent. 47 Declinations must be documented on a risk-by-risk basis. If it 48 is not possible to obtain the full amount of insurance required 49 by layering the risk, it is permissible to export the full 50 amount. 51 Section 3. Section 626.931, Florida Statutes, is amended to 52 read: 53 626.931Agent affidavit andInsurer reporting 54 requirements.— 55(1) Each surplus lines agent shall on or before the 45th56day following each calendar quarter file with the Florida57Surplus Lines Service Office an affidavit, on forms as58prescribed and furnished by the Florida Surplus Lines Service59Office, stating that all surplus lines insurance transacted by60him or her during such calendar quarter has been submitted to61the Florida Surplus Lines Service Office as required.62(2) The affidavit of the surplus lines agent shall include63efforts made to place coverages with authorized insurers and the64results thereof.65 (1)(3)Each foreign insurer accepting premiums shall, on or 66 before the end of the month following each calendar quarter, 67 file with the Florida Surplus Lines Service Office a verified 68 report of all surplus lines insurance transacted by such insurer 69 for insurance risks located in this state during such calendar 70 quarter. 71 (2)(4)Each alien insurer accepting premiums shall, on or 72 before June 30 of each year, file with the Florida Surplus Lines 73 Service Office a verified report of all surplus lines insurance 74 transacted by such insurer for insurance risks located in this 75 state during the preceding calendar year. 76 (3)(5)The department may waive the filing requirements 77 described in subsections (1) and (2)(3) and (4). 78 (4)(6)Each insurer’s report and supporting information 79 shall be in a computer-readable format as determined by the 80 Florida Surplus Lines Service Office or shall be submitted on 81 forms prescribed by the Florida Surplus Lines Service Office and 82 shall show for each applicable agent: 83 (a) A listing of all policies, certificates, cover notes, 84 or other forms of confirmation of insurance coverage or any 85 substitutions thereof or endorsements thereto and the 86 identifying number; and 87 (b) Any additional information required by the department 88 or Florida Surplus Lines Service Office. 89 Section 4. Paragraph (a) of subsection (2) of section 90 626.932, Florida Statutes, is amended to read: 91 626.932 Surplus lines tax.— 92 (2)(a) The surplus lines agent shall make payable to the 93 department the tax related to each calendar quarter’s business 94 as reported to the Florida Surplus Lines Service Office, and 95 remit the tax to the Florida Surplus Lines Service Office on or 96 before the 45th day following each calendar quarterat the same97time as provided for the filing of the quarterly affidavit,98under s. 626.931. The Florida Surplus Lines Service Office shall 99 forward to the department the taxes and any interest collected 100 pursuant to paragraph (b), within 10 days of receipt. 101 Section 5. Paragraph (d) of subsection (1) of section 102 626.935, Florida Statutes, is amended to read: 103 626.935 Suspension, revocation, or refusal of surplus lines 104 agent’s license.— 105 (1) The department shall deny an application for, suspend, 106 revoke, or refuse to renew the appointment of a surplus lines 107 agent and all other licenses and appointments held by the 108 licensee under this code, on any of the following grounds: 109(d) Failure to make and file his or her affidavit or110reports when due as required by s. 626.931.111 Section 6. Subsection (1) of section 626.936, Florida 112 Statutes, is amended to read: 113 626.936 Failure to file reports or pay tax or service fee; 114 administrative penalty.— 115 (1) Any licensed surplus lines agent who neglects to file a 116 reportor an affidavitin the form and within the time required 117 or provided for in the Surplus Lines Law may be fined up to $50 118 per day for each day the neglect continues, beginning the day 119 after the reportor affidavitwas due until the date the report 120or affidavitis received. All sums collected under this section 121 shall be deposited into the Insurance Regulatory Trust Fund. 122 Section 7. This act shall take effect July 1, 2015.