Bill Text: FL S0538 | 2019 | Regular Session | Introduced
NOTE: There are more recent revisions of this legislation. Read Latest Draft
Bill Title: Nonadmitted Insurance Market Reform
Spectrum: Bipartisan Bill
Status: (Failed) 2019-05-03 - Died in Appropriations, companion bill(s) passed, see CS/CS/CS/HB 301 (Ch. 2019-108) [S0538 Detail]
Download: Florida-2019-S0538-Introduced.html
Bill Title: Nonadmitted Insurance Market Reform
Spectrum: Bipartisan Bill
Status: (Failed) 2019-05-03 - Died in Appropriations, companion bill(s) passed, see CS/CS/CS/HB 301 (Ch. 2019-108) [S0538 Detail]
Download: Florida-2019-S0538-Introduced.html
Florida Senate - 2019 SB 538 By Senator Brandes 24-00535A-19 2019538__ 1 A bill to be entitled 2 An act relating to nonadmitted insurance market 3 reform; amending s. 626.916, F.S.; deleting a 4 limitation on per-policy fees charged by surplus lines 5 agents for exporting certified policies; requiring 6 that such fees be itemized separately for the customer 7 before purchase and enumerated in the policy; amending 8 s. 626.931, F.S.; deleting a requirement for surplus 9 lines agents to quarterly file a certain affidavit 10 with the Florida Surplus Lines Service Office; 11 amending s. 626.932, F.S.; conforming a provision to 12 changes made by the act; revising the determination of 13 the surplus lines tax on certain policies as of a 14 specified date; amending ss. 626.935 and 629.401, 15 F.S.; conforming provisions to changes made by the 16 act; amending s. 627.715, F.S.; extending the 17 expiration date of a provision authorizing surplus 18 lines agents to export contracts or endorsements 19 providing flood coverage to eligible surplus lines 20 insurers without making a certain diligent effort to 21 seek coverage from authorized insurers; providing 22 effective dates. 23 24 Be It Enacted by the Legislature of the State of Florida: 25 26 Section 1. Subsection (4) of section 626.916, Florida 27 Statutes, is amended to read: 28 626.916 Eligibility for export.— 29 (4) A reasonable per-policy fee, not to exceed $35,may be 30 charged by the filing surplus lines agent for each policy 31 certified for export. The fee must be itemized separately for 32 the customer before purchase and enumerated in the policy. 33 Section 2. Section 626.931, Florida Statutes, is amended to 34 read: 35 626.931Agent affidavit andInsurer reporting 36 requirements.— 37(1) Each surplus lines agent that has transacted business38during a calendar quarter shall on or before the 45th day39following the calendar quarter file with the Florida Surplus40Lines Service Office an affidavit, on forms as prescribed and41furnished by the Florida Surplus Lines Service Office, stating42that all surplus lines insurance transacted by him or her during43such calendar quarter has been submitted to the Florida Surplus44Lines Service Office as required.45(2) The affidavit of the surplus lines agent shall include46efforts made to place coverages with authorized insurers and the47results thereof.48 (1)(3)Each foreign insurer accepting premiums shall, on or 49 before the end of the month following each calendar quarter, 50 file with the Florida Surplus Lines Service Office a verified 51 report of all surplus lines insurance transacted by such insurer 52 for insurance risks located in this state during such calendar 53 quarter. 54 (2)(4)Each alien insurer accepting premiums shall, on or 55 before June 30 of each year, file with the Florida Surplus Lines 56 Service Office a verified report of all surplus lines insurance 57 transacted by such insurer for insurance risks located in this 58 state during the preceding calendar year. 59 (3)(5)The department may waive the filing requirements 60 described in subsections (1)(3)and (2)(4). 61 (4)(6)Each insurer’s report and supporting information 62 shall be in a computer-readable format as determined by the 63 Florida Surplus Lines Service Office or shall be submitted on 64 forms prescribed by the Florida Surplus Lines Service Office and 65 shall show for each applicable agent: 66 (a) A listing of all policies, certificates, cover notes, 67 or other forms of confirmation of insurance coverage or any 68 substitutions thereof or endorsements thereto and the 69 identifying number; and 70 (b) Any additional information required by the department 71 or Florida Surplus Lines Service Office. 72 Section 3. Paragraph (a) of subsection (2) of section 73 626.932, Florida Statutes, is amended to read: 74 626.932 Surplus lines tax.— 75 (2)(a) The surplus lines agent shall make payable to the 76 department the tax related to each calendar quarter’s business 77 as reported to the Florida Surplus Lines Service Office,and 78 remit the tax to the Florida Surplus Lines Service Office at the 79 same time as the remittance required under s. 626.9325provided80for the filing of the quarterly affidavit, under s. 626.931. The 81 Florida Surplus Lines Service Office shall forward to the 82 department the taxes and any interest collected pursuant to 83 paragraph (b),within 10 days of receipt. 84 Section 4. Effective January 1, 2020, subsection (3) of 85 section 626.932, Florida Statutes, is amended, and subsection 86 (1) of that section is republished, to read: 87 626.932 Surplus lines tax.— 88 (1) The premiums charged for surplus lines coverages are 89 subject to a premium receipts tax of 5 percent of all gross 90 premiums charged for such insurance. The surplus lines agent 91 shall collect from the insured the amount of the tax at the time 92 of the delivery of the cover note, certificate of insurance, 93 policy, or other initial confirmation of insurance, in addition 94 to the full amount of the gross premium charged by the insurer 95 for the insurance. The surplus lines agent is prohibited from 96 absorbing such tax or, as an inducement for insurance or for any 97 other reason, rebating all or any part of such tax or of his or 98 her commission. 99 (3) If a surplus lines policy covers risks or exposures 100 only partially in this state and the state is the home state as 101 defined in the federal Nonadmitted and Reinsurance Reform Act of 102 2010 (NRRA), the tax payable mustshallbe computed on the gross 103 premium. The surplus lines policy must be taxed in accordance 104 with subsection (1) unless the policyholder elects to be taxed 105 at thetax must not exceedthetaxrate where the risk or 106 exposure is located. 107 Section 5. Paragraph (d) of subsection (1) of section 108 626.935, Florida Statutes, is amended, and present paragraphs 109 (e) through (i) of subsection (1) of that section are 110 redesignated as paragraphs (d) through (h), respectively, to 111 read: 112 626.935 Suspension, revocation, or refusal of surplus lines 113 agent’s license.— 114 (1) The department shall deny an application for, suspend, 115 revoke, or refuse to renew the appointment of a surplus lines 116 agent and all other licenses and appointments held by the 117 licensee under this code, on any of the following grounds: 118(d) Failure to make and file his or her affidavit or119reports when due as required by s. 626.931.120 Section 6. Paragraph (a) of subsection (1) of section 121 629.401, Florida Statutes, is amended to read: 122 629.401 Insurance exchange.— 123 (1) There may be created one or more insurance exchanges, 124 with one or more offices each, subject to such rules as are 125 adopted by the commission. For the purposes of this section, the 126 term “exchange” applies to any such insurance exchange proposed 127 or created under this section. The purposes of the exchange are: 128 (a) To provide a facility for the underwriting of: 129 1. Reinsurance of all kinds of insurance. 130 2. Direct insurance of all kinds on risks located entirely 131 outside the United States. 132 3. Surplus lines insurance for risks located in this state 133 eligible for export under s. 626.916 or s. 626.917 and placed 134 through a licensed Florida surplus lines agent subject to 135 compliance withthe provisions ofss. 626.921, 626.922, 626.923, 136 626.924, 626.929, 626.9295, and 626.930, and 626.931. With 137 respect to compliance with s. 626.924, the required legend may 138 refer to any coverage provided for by a security fund 139 established under paragraph (3)(d). 140 4. Surplus lines insurance in any other state subject to 141 the applicable surplus lines laws of such other state for risks 142 located entirely outside of this state. 143 Section 7. Subsection (4) of section 627.715, Florida 144 Statutes, is amended to read: 145 627.715 Flood insurance.—An authorized insurer may issue an 146 insurance policy, contract, or endorsement providing personal 147 lines residential coverage for the peril of flood or excess 148 coverage for the peril of flood on any structure or the contents 149 of personal property contained therein, subject to this section. 150 This section does not apply to commercial lines residential or 151 commercial lines nonresidential coverage for the peril of flood. 152 An insurer may issue flood insurance policies, contracts, 153 endorsements, or excess coverage on a standard, preferred, 154 customized, flexible, or supplemental basis. 155 (4) A surplus lines agent may export a contract or 156 endorsement providing flood coverage to an eligible surplus 157 lines insurer without making a diligent effort to seek such 158 coverage from three or more authorized insurers under s. 159 626.916(1)(a). This subsection expires July 1, 20252019, or on 160 the date on which the Commissioner of Insurance Regulation 161 determines in writing that there is an adequate admitted market 162 to provide coverage for the peril of flood consistent with this 163 section, whichever date occurs first. If there are fewer than 164 three admitted insurers on the date this subsection expires, the 165 number of declinations necessary to meet the diligent-effort 166 requirement shall be no fewer than the number of authorized 167 insurers providing flood coverage. 168 Section 8. Except as otherwise expressly provided in this 169 act, this act shall take effect July 1, 2019.