Bill Text: FL S1210 | 2014 | Regular Session | Comm Sub


Bill Title: Division of Insurance Agents and Agency Services

Spectrum: Bipartisan Bill

Status: (Introduced - Dead) 2014-04-23 - Laid on Table, companion bill(s) passed, see CS/CS/HB 633 (Ch. 2014-123), CS/CS/SB 708 (Ch. 2014-86) [S1210 Detail]

Download: Florida-2014-S1210-Comm_Sub.html
       Florida Senate - 2014                             CS for SB 1210
       
       
        
       By the Committee on Banking and Insurance; and Senator Bean
       
       
       
       
       
       597-02469-14                                          20141210c1
    1                        A bill to be entitled                      
    2         An act relating to the Division of Insurance Agents
    3         and Agency Services; amending s. 20.121, F.S.;
    4         revising the name of the division; amending s.
    5         624.310, F.S.; revising service delivery methods;
    6         amending s. 624.318, F.S.; prohibiting the removal of
    7         specified original documents under certain conditions;
    8         amending s. 624.501, F.S.; revising original
    9         appointment and renewal fees related to certain
   10         insurance representatives; amending s. 626.015, F.S.;
   11         defining the term “unaffiliated insurance agent”;
   12         amending s. 626.0428, F.S.; requiring a branch place
   13         of business to have an agent in charge; authorizing an
   14         agent to be in charge of more than one branch office
   15         under certain circumstances; providing requirements
   16         relating to the designation of an agent in charge;
   17         providing that the agent in charge is accountable for
   18         wrongful acts, misconduct, and violations committed by
   19         the licensee and any person under his or her
   20         supervision; prohibiting an insurance agency from
   21         conducting insurance business at a location without a
   22         designated agent in charge; providing for expiration
   23         of an agency license under specified circumstances;
   24         amending s. 626.112, F.S.; prohibiting new limited
   25         customer representative licenses from being issued
   26         after a specified date; providing licensure exemptions
   27         that allow specified individuals or entities to
   28         conduct insurance business at specified locations
   29         under certain circumstances; revising licensure
   30         requirements and penalties with respect to registered
   31         insurance agencies; providing that the registration of
   32         an approved registered insurance agency automatically
   33         converts to an insurance agency license on a specified
   34         date; amending s. 626.171, F.S.; providing an
   35         exemption from certain licensure application fees;
   36         amending s. 626.172, F.S.; revising requirements
   37         relating to applications for insurance agency
   38         licenses; amending s. 626.207, F.S.; conforming a
   39         cross-reference; amending s. 626.241, F.S.; revising
   40         the scope of the examination for a limited agent
   41         license; amending s. 626.261, F.S.; deleting a
   42         provision requiring certain costs to be paid by
   43         applicants who request licensure examinations in
   44         Spanish; amending s. 626.311, F.S.; limiting the types
   45         of business that may be transacted by certain agents;
   46         amending s. 626.321, F.S.; providing that a license
   47         issued to a business renting or leasing motor vehicles
   48         applies to employees and authorized representatives;
   49         amending s. 626.382, F.S.; providing that an insurance
   50         agency license continues in force until canceled,
   51         suspended, revoked, terminated, or expired; amending
   52         s. 626.601, F.S.; revising terminology relating to
   53         investigations conducted by the Department of
   54         Financial Services and the Office of Insurance
   55         Regulation with respect to individuals and entities
   56         involved in the insurance industry; amending s.
   57         626.611, F.S.; requiring the department to suspend
   58         certain licenses and appointments; amending s.
   59         626.641, F.S.; conforming a cross-reference; amending
   60         s. 626.733, F.S.; revising applicability of certain
   61         appointment provisions; amending s. 626.7355, F.S.;
   62         revising qualifications for a temporary customer
   63         representative’s license; repealing s. 626.747, F.S.,
   64         relating to branch agencies, agents in charge, and the
   65         payment of additional county tax under certain
   66         circumstances on a specified date; amending s.
   67         626.7845, F.S.; revising a prohibition against
   68         unlicensed transaction of life insurance; amending ss.
   69         626.8411, 626.861, and 626.862, F.S.; conforming
   70         cross-references; amending s. 626.9272, F.S.; revising
   71         requirements for the licensure of nonresident surplus
   72         lines agents; creating s. 627.4553, F.S.; requiring an
   73         insurance agent who recommends the surrender of
   74         certain annuity or life insurance to provide certain
   75         information to the department; amending s. 627.7015,
   76         F.S.; revising the rulemaking authority of the
   77         department with respect to qualifications and
   78         specified types of penalties covered under the
   79         property insurance mediation program; amending s.
   80         627.706, F.S.; revising the definition of the term
   81         “neutral evaluator”; amending s. 627.7074, F.S.;
   82         providing grounds for the department to deny an
   83         application, or suspend or revoke approval of
   84         certification, of a neutral evaluator; requiring the
   85         department to adopt rules; amending s. 627.745, F.S.;
   86         revising qualifications for approval as a mediator by
   87         the department; providing grounds for the department
   88         to deny an application, or suspend or revoke approval,
   89         of a mediator; requiring the department to adopt
   90         rules; amending s. 627.952, F.S.; providing that
   91         certain persons who are not residents of this state
   92         must be licensed and appointed as nonresident surplus
   93         lines agents in this state in order to engage in
   94         specified activities with respect to servicing
   95         insurance contracts, certificates, or agreements for
   96         purchasing or risk retention groups; deleting a
   97         fidelity bond requirement applicable to certain
   98         nonresident agents who are licensed as surplus lines
   99         agents in another state; amending s. 648.43, F.S.;
  100         revising requirements for the submission of a power of
  101         attorney; amending s. 648.49, F.S.; revising
  102         provisions relating to the duration of suspension or
  103         revocation of a license; amending ss. 943.0585 and
  104         943.059, F.S.; prohibiting a person seeking a license
  105         from the Division of Insurance Agent and Agency
  106         Services who is the subject of an expunged or sealed
  107         criminal history record from denying or failing to
  108         acknowledge arrests covered by the record; providing
  109         effective dates.
  110          
  111  Be It Enacted by the Legislature of the State of Florida:
  112  
  113         Section 1. Paragraph (g) of subsection (2) of section
  114  20.121, Florida Statutes, is amended to read:
  115         20.121 Department of Financial Services.—There is created a
  116  Department of Financial Services.
  117         (2) DIVISIONS.—The Department of Financial Services shall
  118  consist of the following divisions:
  119         (g) The Division of Insurance Agent Agents and Agency
  120  Services.
  121         Section 2. Subsection (6) of section 624.310, Florida
  122  Statutes, is amended to read:
  123         624.310 Enforcement; cease and desist orders; removal of
  124  certain persons; fines.—
  125         (6) ADMINISTRATIVE PROCEDURES.—All administrative
  126  proceedings under subsections (3), (4), and (5) shall be
  127  conducted in accordance with chapter 120. Any service required
  128  or authorized to be made by the department or office under this
  129  code shall be made:
  130         (a) By certified mail, return receipt requested, delivered
  131  to the addressee only;
  132         (b) By e-mail, delivery receipt required, sent to the most
  133  recent e-mail address provided to the department by the
  134  applicant or licensee in accordance with s. 626.171, s. 626.551,
  135  s. 648.34, or s. 648.421, if service by mail cannot be obtained
  136  at the last address provided to the department by the recipient;
  137         (c) By personal delivery, including hand delivery by
  138  department investigators;
  139         (d) By publication in accordance with s. 120.60; or
  140         (e) In accordance with chapter 48.
  141  
  142  The service provided for in this subsection herein shall be
  143  effective from the date of delivery.
  144         Section 3. Subsection (5) of section 624.318, Florida
  145  Statutes, is amended to read:
  146         624.318 Conduct of examination or investigation; access to
  147  records; correction of accounts; appraisals.—
  148         (5) Neither The department, the office, or an nor any
  149  examiner may not shall remove an original any record, account,
  150  document, file, or other property of the person being examined
  151  from the offices of such person except with the person’s written
  152  consent of such person given in advance of such removal or
  153  pursuant to a court an order of court duly obtained.
  154         Section 4. Paragraphs (a) and (c) of subsection (6) and
  155  subsections (7) and (8) of section 624.501, Florida Statutes,
  156  are amended to read:
  157         624.501 Filing, license, appointment, and miscellaneous
  158  fees.—The department, commission, or office, as appropriate,
  159  shall collect in advance, and persons so served shall pay to it
  160  in advance, fees, licenses, and miscellaneous charges as
  161  follows:
  162         (6) Insurance representatives, property, marine, casualty,
  163  and surety insurance.
  164         (a) Agent’s original appointment and biennial renewal or
  165  continuation thereof, each insurer or unaffiliated agent making
  166  an appointment:
  167         Appointment fee....................................$42.00
  168         State tax...........................................12.00
  169         County tax...........................................6.00
  170  Total.....................................................$60.00
  171         (c) Nonresident agent’s original appointment and biennial
  172  renewal or continuation thereof, appointment fee, each insurer
  173  or unaffiliated agent making an appointment...............$60.00
  174         (7) Life insurance agents.
  175         (a) Agent’s original appointment and biennial renewal or
  176  continuation thereof, each insurer or unaffiliated agent making
  177  an appointment:
  178         Appointment fee....................................$42.00
  179         State tax...........................................12.00
  180         County tax...........................................6.00
  181  Total.....................................................$60.00
  182         (b) Nonresident agent’s original appointment and biennial
  183  renewal or continuation thereof, appointment fee, each insurer
  184  or unaffiliated agent making an appointment	$60.00
  185         (8) Health insurance agents.
  186         (a) Agent’s original appointment and biennial renewal or
  187  continuation thereof, each insurer or unaffiliated agent making
  188  an appointment:
  189         Appointment fee....................................$42.00
  190         State tax...........................................12.00
  191         County tax...........................................6.00
  192  Total.....................................................$60.00
  193         (b) Nonresident agent’s original appointment and biennial
  194  renewal or continuation thereof, appointment fee, each insurer
  195  or unaffiliated agent making an appointment	$60.00
  196         Section 5. Present subsection (18) of section 626.015,
  197  Florida Statutes, is renumbered as subsection (19), and a new
  198  subsection (18) is added to that section, to read:
  199         626.015 Definitions.—As used in this part:
  200         (18) “Unaffiliated insurance agent” means a licensed
  201  insurance agent, except a limited lines agent, who is self
  202  appointed and who practices as an independent consultant in the
  203  business of analyzing or abstracting insurance policies,
  204  providing insurance advice or counseling, or making specific
  205  recommendations or comparisons of insurance products for a fee
  206  established in advance by written contract signed by the
  207  parties. An unaffiliated insurance agent may not be affiliated
  208  with an insurer, insurer-appointed insurance agent, or insurance
  209  agency contracted with or employing insurer-appointed insurance
  210  agents.
  211         Section 6. Effective January 1, 2015, section 626.0428,
  212  Florida Statutes, is amended to read:
  213         626.0428 Agency personnel powers, duties, and limitations.—
  214         (1) An employee of individual employed by an agent or
  215  agency on salary who devotes full time to clerical work, with
  216  incidental taking of insurance applications or quoting or
  217  receiving premiums on incoming inquiries in the office of the
  218  agent or agency, is not deemed to be an agent or customer
  219  representative if his or her compensation does not include in
  220  whole or in part any commissions on such business and is not
  221  related to the production of applications, insurance, or
  222  premiums.
  223         (2) An employee, or an authorized representative located at
  224  a designated branch of an agent or agency may not bind insurance
  225  coverage unless licensed and appointed as an agent or customer
  226  representative.
  227         (3) An employee or an authorized representative located at
  228  a designated branch of an agent or agency may not initiate
  229  contact with any person for the purpose of soliciting insurance
  230  unless licensed and appointed as an agent or customer
  231  representative. As to title insurance, an employee of an agent
  232  or agency may not initiate contact with an any individual
  233  proposed to be insured for the purpose of soliciting title
  234  insurance unless licensed as a title insurance agent or exempt
  235  from such licensure pursuant to s. 626.8417(4).
  236         (4)(a) Each place of business established by an agent or
  237  agency, firm, corporation, or association must be in the active
  238  full-time charge of a licensed and appointed agent holding the
  239  required agent licenses to transact the lines of insurance being
  240  handled at the location.
  241         (b) However, the licensed agent in charge of an insurance
  242  agency may also be the agent in charge of additional branch
  243  office locations of the agency if insurance activities requiring
  244  licensure as an insurance agent do not occur at a location when
  245  an agent is not physically present and unlicensed employees at
  246  the location do not engage in insurance activities requiring
  247  licensure as an insurance agent or customer representative.
  248         (c) An insurance agency and each branch place of business
  249  of an insurance agency shall designate an agent in charge and
  250  file the name and license number of the agent in charge and the
  251  physical address of the insurance agency location with the
  252  department at the department’s designated website. The
  253  designation of the agent in charge may be changed at the option
  254  of the agency. A change of the designated agent in charge is
  255  effective upon notification to the department, which shall be
  256  provided within 30 days after such change.
  257         (d) For the purposes of this subsection, an “agent in
  258  charge” is the licensed and appointed agent who is responsible
  259  for the supervision of all individuals within an insurance
  260  agency location, regardless of whether the agent in charge
  261  handles a specific transaction or deals with the general public
  262  in the solicitation or negotiation of insurance contracts or the
  263  collection or accounting of moneys.
  264         (e) An agent in charge of an insurance agency is
  265  accountable for wrongful acts, misconduct, or violations of this
  266  code committed by the licensee or agent or by any person under
  267  his or her supervision while acting on behalf of the agency.
  268  This section does not render an agent in charge criminally
  269  liable for an act unless the agent in charge personally
  270  committed the act or knew or should have known of the act and of
  271  the facts constituting a violation of this chapter.
  272         (f) An insurance agency location may not conduct the
  273  business of insurance unless an agent in charge is designated
  274  by, and providing services to, the agency at all times. If the
  275  agent in charge designated with the department ends his or her
  276  affiliation with the agency and the agency fails to designate
  277  another agent in charge within the 30 days provided for in
  278  paragraph (c) and such failure continues for 90 days, the agency
  279  license shall automatically expire on the 91st day after the
  280  date the designated agent in charge ended his or her affiliation
  281  with the agency.
  282         Section 7. Paragraph (b) of subsection (1) of section
  283  626.112, Florida Statutes, is amended to read:
  284         626.112 License and appointment required; agents, customer
  285  representatives, adjusters, insurance agencies, service
  286  representatives, managing general agents.—
  287         (1)
  288         (b) Except as provided in subsection (6) or in applicable
  289  department rules, and in addition to other conduct described in
  290  this chapter with respect to particular types of agents, a
  291  license as an insurance agent, service representative, customer
  292  representative, or limited customer representative is required
  293  in order to engage in the solicitation of insurance. Effective
  294  October 1, 2014, new limited customer representative licenses
  295  may not be issued. For purposes of this requirement, as
  296  applicable to any of the license types described in this
  297  section, the solicitation of insurance is the attempt to
  298  persuade any person to purchase an insurance product by:
  299         1. Describing the benefits or terms of insurance coverage,
  300  including premiums or rates of return;
  301         2. Distributing an invitation to contract to prospective
  302  purchasers;
  303         3. Making general or specific recommendations as to
  304  insurance products;
  305         4. Completing orders or applications for insurance
  306  products;
  307         5. Comparing insurance products, advising as to insurance
  308  matters, or interpreting policies or coverages; or
  309         6. Offering or attempting to negotiate on behalf of another
  310  person a viatical settlement contract as defined in s. 626.9911.
  311  
  312  However, an employee leasing company licensed under pursuant to
  313  chapter 468 which is seeking to enter into a contract with an
  314  employer that identifies products and services offered to
  315  employees may deliver proposals for the purchase of employee
  316  leasing services to prospective clients of the employee leasing
  317  company setting forth the terms and conditions of doing
  318  business; classify employees as permitted by s. 468.529; collect
  319  information from prospective clients and other sources as
  320  necessary to perform due diligence on the prospective client and
  321  to prepare a proposal for services; provide and receive
  322  enrollment forms, plans, and other documents; and discuss or
  323  explain in general terms the conditions, limitations, options,
  324  or exclusions of insurance benefit plans available to the client
  325  or employees of the employee leasing company were the client to
  326  contract with the employee leasing company. Any advertising
  327  materials or other documents describing specific insurance
  328  coverages must identify and be from a licensed insurer or its
  329  licensed agent or a licensed and appointed agent employed by the
  330  employee leasing company. The employee leasing company may not
  331  advise or inform the prospective business client or individual
  332  employees of specific coverage provisions, exclusions, or
  333  limitations of particular plans. As to clients for which the
  334  employee leasing company is providing services pursuant to s.
  335  468.525(4), the employee leasing company may engage in
  336  activities permitted by ss. 626.7315, 626.7845, and 626.8305,
  337  subject to the restrictions specified in those sections. If a
  338  prospective client requests more specific information concerning
  339  the insurance provided by the employee leasing company, the
  340  employee leasing company must refer the prospective business
  341  client to the insurer or its licensed agent or to a licensed and
  342  appointed agent employed by the employee leasing company.
  343         Section 8. Effective January 1, 2015, subsection (7) of
  344  section 626.112, Florida Statutes, is amended to read:
  345         626.112 License and appointment required; agents, customer
  346  representatives, adjusters, insurance agencies, service
  347  representatives, managing general agents.—
  348         (7)(a)An Effective October 1, 2006, no individual, firm,
  349  partnership, corporation, association, or any other entity may
  350  not shall act in its own name or under a trade name, directly or
  351  indirectly, as an insurance agency, unless it complies with s.
  352  626.172 with respect to possessing an insurance agency license
  353  for each place of business at which it engages in an any
  354  activity that which may be performed only by a licensed
  355  insurance agent. However, an insurance agency that is owned and
  356  operated by a single licensed agent conducting business in his
  357  or her individual name and not employing or otherwise using the
  358  services of or appointing other licensees is exempt from the
  359  agency licensing requirements of this subsection.
  360         (a) A branch location of a business which is established by
  361  a licensed insurance agency is considered a branch agency and is
  362  not required to be licensed if it transacts business under the
  363  same name and federal tax identification number as the licensed
  364  agency and has designated with the department a licensed agent
  365  in charge of the branch location as required by s. 626.0428 and
  366  the address and telephone number of the branch location have
  367  been submitted to the department for inclusion in the licensing
  368  record of the licensed agency within 30 days after insurance
  369  transactions begin at the branch location Each agency engaged in
  370  business in this state before January 1, 2003, which is wholly
  371  owned by insurance agents currently licensed and appointed under
  372  this chapter, each incorporated agency whose voting shares are
  373  traded on a securities exchange, each agency designated and
  374  subject to supervision and inspection as a branch office under
  375  the rules of the National Association of Securities Dealers, and
  376  each agency whose primary function is offering insurance as a
  377  service or member benefit to members of a nonprofit corporation
  378  may file an application for registration in lieu of licensure in
  379  accordance with s. 626.172(3). Each agency engaged in business
  380  before October 1, 2006, shall file an application for licensure
  381  or registration on or before October 1, 2006.
  382         (b)1. If an agency is required to be licensed but fails to
  383  file an application for licensure in accordance with this
  384  section, the department shall impose on the agency an
  385  administrative penalty in an amount of up to $10,000.
  386         2. If an agency is eligible for registration but fails to
  387  file an application for registration or an application for
  388  licensure in accordance with this section, the department shall
  389  impose on the agency an administrative penalty in an amount of
  390  up to $5,000.
  391         (c)(b)Effective October 1, 2015, the department must
  392  convert the registration of an approved a registered insurance
  393  agency to shall, as a condition precedent to continuing
  394  business, obtain an insurance agency license if the department
  395  finds that, with respect to any majority owner, partner,
  396  manager, director, officer, or other person who manages or
  397  controls the agency, any person has:
  398         1. Been found guilty of, or has pleaded guilty or nolo
  399  contendere to, a felony in this state or any other state
  400  relating to the business of insurance or to an insurance agency,
  401  without regard to whether a judgment of conviction has been
  402  entered by the court having jurisdiction of the cases.
  403         2. Employed any individual in a managerial capacity or in a
  404  capacity dealing with the public who is under an order of
  405  revocation or suspension issued by the department. An insurance
  406  agency may request, on forms prescribed by the department,
  407  verification of any person’s license status. If a request is
  408  mailed within 5 working days after an employee is hired, and the
  409  employee’s license is currently suspended or revoked, the agency
  410  shall not be required to obtain a license, if the unlicensed
  411  person’s employment is immediately terminated.
  412         3. Operated the agency or permitted the agency to be
  413  operated in violation of s. 626.747.
  414         4. With such frequency as to have made the operation of the
  415  agency hazardous to the insurance-buying public or other
  416  persons:
  417         a. Solicited or handled controlled business. This
  418  subparagraph shall not prohibit the licensing of any lending or
  419  financing institution or creditor, with respect to insurance
  420  only, under credit life or disability insurance policies of
  421  borrowers from the institutions, which policies are subject to
  422  part IX of chapter 627.
  423         b. Misappropriated, converted, or unlawfully withheld
  424  moneys belonging to insurers, insureds, beneficiaries, or others
  425  and received in the conduct of business under the license.
  426         c. Unlawfully rebated, attempted to unlawfully rebate, or
  427  unlawfully divided or offered to divide commissions with
  428  another.
  429         d. Misrepresented any insurance policy or annuity contract,
  430  or used deception with regard to any policy or contract, done
  431  either in person or by any form of dissemination of information
  432  or advertising.
  433         e. Violated any provision of this code or any other law
  434  applicable to the business of insurance in the course of dealing
  435  under the license.
  436         f. Violated any lawful order or rule of the department.
  437         g. Failed or refused, upon demand, to pay over to any
  438  insurer he or she represents or has represented any money coming
  439  into his or her hands belonging to the insurer.
  440         h. Violated the provision against twisting as defined in s.
  441  626.9541(1)(l).
  442         i. In the conduct of business, engaged in unfair methods of
  443  competition or in unfair or deceptive acts or practices, as
  444  prohibited under part IX of this chapter.
  445         j. Willfully overinsured any property insurance risk.
  446         k. Engaged in fraudulent or dishonest practices in the
  447  conduct of business arising out of activities related to
  448  insurance or the insurance agency.
  449         l. Demonstrated lack of fitness or trustworthiness to
  450  engage in the business of insurance arising out of activities
  451  related to insurance or the insurance agency.
  452         m. Authorized or knowingly allowed individuals to transact
  453  insurance who were not then licensed as required by this code.
  454         5. Knowingly employed any person who within the preceding 3
  455  years has had his or her relationship with an agency terminated
  456  in accordance with paragraph (d).
  457         6. Willfully circumvented the requirements or prohibitions
  458  of this code.
  459         Section 9. Present subsection (6) of section 626.171,
  460  Florida Statutes, is renumbered as subsection (7), and a new
  461  subsection (6) is added to that section, to read:
  462         626.171 Application for license as an agent, customer
  463  representative, adjuster, service representative, managing
  464  general agent, or reinsurance intermediary.—
  465         (6) Members of the United States Armed Forces and their
  466  spouses, and veterans of the United States Armed Forces who have
  467  retired within 24 months before application for licensure, are
  468  exempt from the application filing fee prescribed in s. 624.501.
  469  Qualified individuals must provide a copy of a military
  470  identification card, military dependent identification card,
  471  military service record, military personnel file, veteran
  472  record, discharge paper, or separation document, or separation
  473  document that indicates such members of the United States Armed
  474  Forces are currently in good standing or were honorably
  475  discharged.
  476         Section 10. Subsections (2), (3), and (4) of section
  477  626.172, Florida Statutes, are amended to read:
  478         626.172 Application for insurance agency license.—
  479         (2) An application for an insurance agency license must be
  480  signed by an individual specified in paragraph (a) shall be
  481  signed by the owner or owners of the agency. An insurance agency
  482  may permit a third party to complete, submit, and sign an
  483  application on the insurance agency’s behalf; however, the
  484  insurance agency is responsible for ensuring that the
  485  information on the application is true and correct and is
  486  accountable for any misstatements or misrepresentations. If the
  487  agency is incorporated, the application shall be signed by the
  488  president and secretary of the corporation. The application must
  489  for an insurance agency license shall include:
  490         (a) The name of each majority owner, partner, officer, and
  491  director, president, senior vice president, secretary,
  492  treasurer, and limited liability company member who directs or
  493  participates in the management or control of the insurance
  494  agency, whether through ownership of voting securities, by
  495  contract, by ownership of an agency bank account, or otherwise.
  496         (b) The residence address of each person required to be
  497  listed in the application under paragraph (a).
  498         (c) The name, principal business street address, and valid
  499  e-mail address of the insurance agency and the name, address,
  500  and e-mail address of the agency’s registered agent or person or
  501  company authorized to accept service on behalf of the agency and
  502  its principal business address.
  503         (d) The physical address location of each branch agency,
  504  including its name, e-mail address, and telephone number, and
  505  the date that the branch location began transacting insurance
  506  office and the name under which each agency office conducts or
  507  will conduct business.
  508         (e) The name of the each agent to be in full-time charge of
  509  the an agency office, including branch locations, and his or her
  510  corresponding location specification of which office.
  511         (f) The fingerprints of each of the following:
  512         1. A sole proprietor;
  513         2. Each individual specified in paragraph (a) partner; and
  514         3. Each owner of an unincorporated agency;
  515         3.4. Each individual owner who directs or participates in
  516  the management or control of an incorporated agency whose shares
  517  are not traded on a securities exchange;
  518         5. The president, senior vice presidents, treasurer,
  519  secretary, and directors of the agency; and
  520         6. Any other person who directs or participates in the
  521  management or control of the agency, whether through the
  522  ownership of voting securities, by contract, or otherwise.
  523  
  524  Fingerprints must be taken by a law enforcement agency or other
  525  entity approved by the department and must be accompanied by the
  526  fingerprint processing fee specified in s. 624.501. Fingerprints
  527  must shall be processed in accordance with s. 624.34. However,
  528  fingerprints need not be filed for an any individual who is
  529  currently licensed and appointed under this chapter. This
  530  paragraph does not apply to corporations whose voting shares are
  531  traded on a securities exchange.
  532         (g) Such additional information as the department requires
  533  by rule to ascertain the trustworthiness and competence of
  534  persons required to be listed on the application and to
  535  ascertain that such persons meet the requirements of this code.
  536  However, the department may not require that credit or character
  537  reports be submitted for persons required to be listed on the
  538  application.
  539         (3)(h)Beginning October 1, 2005, The department must shall
  540  accept the uniform application for nonresident agency licensure.
  541  The department may adopt by rule revised versions of the uniform
  542  application.
  543         (3) The department shall issue a registration as an
  544  insurance agency to any agency that files a written application
  545  with the department and qualifies for registration. The
  546  application for registration shall require the agency to provide
  547  the same information required for an agency licensed under
  548  subsection (2), the agent identification number for each owner
  549  who is a licensed agent, proof that the agency qualifies for
  550  registration as provided in s. 626.112(7), and any other
  551  additional information that the department determines is
  552  necessary in order to demonstrate that the agency qualifies for
  553  registration. The application must be signed by the owner or
  554  owners of the agency. If the agency is incorporated, the
  555  application must be signed by the president and the secretary of
  556  the corporation. An agent who owns the agency need not file
  557  fingerprints with the department if the agent obtained a license
  558  under this chapter and the license is currently valid.
  559         (a) If an application for registration is denied, the
  560  agency must file an application for licensure no later than 30
  561  days after the date of the denial of registration.
  562         (b) A registered insurance agency must file an application
  563  for licensure no later than 30 days after the date that any
  564  person who is not a licensed and appointed agent in this state
  565  acquires any ownership interest in the agency. If an agency
  566  fails to file an application for licensure in compliance with
  567  this paragraph, the department shall impose an administrative
  568  penalty in an amount of up to $5,000 on the agency.
  569         (c) Sections 626.6115 and 626.6215 do not apply to agencies
  570  registered under this subsection.
  571         (4) The department must shall issue a license or
  572  registration to each agency upon approval of the application,
  573  and each agency location must shall display the license or
  574  registration prominently in a manner that makes it clearly
  575  visible to any customer or potential customer who enters the
  576  agency location.
  577         Section 11. Subsection (7) of section 626.207, Florida
  578  Statutes, is amended to read:
  579         626.207 Disqualification of applicants and licensees;
  580  penalties against licensees; rulemaking authority.—
  581         (7) After the disqualifying period has been met, the burden
  582  is on the applicant to demonstrate that the applicant has been
  583  rehabilitated, does not pose a risk to the insurance-buying
  584  public, is fit and trustworthy to engage in the business of
  585  insurance pursuant to s. 626.611(1)(g) s. 626.611(7), and is
  586  otherwise qualified for licensure.
  587         Section 12. Subsection (5) of section 626.241, Florida
  588  Statutes, is amended to read:
  589         626.241 Scope of examination.—
  590         (5) Examinations given applicants for a limited agent
  591  license as agent or as customer representative shall be limited
  592  in scope to the kind of business to be transacted under such
  593  license.
  594         Section 13. Subsection (5) of section 626.261, Florida
  595  Statutes, is amended to read:
  596         626.261 Conduct of examination.—
  597         (5) The department may provide licensure examinations in
  598  Spanish. Applicants requesting examination or reexamination in
  599  Spanish must bear the full cost of the department’s development,
  600  preparation, administration, grading, and evaluation of the
  601  Spanish-language examination. When determining whether it is in
  602  the public interest to allow the examination to be translated
  603  into and administered in Spanish, the department shall consider
  604  the percentage of the population who speak Spanish.
  605         Section 14. Present subsection (6) of section 626.311,
  606  Florida Statutes, is renumbered as subsection (7), and a new
  607  subsection (6) is added to that section, to read:
  608         626.311 Scope of license.—
  609         (6) An agent who appoints his or her license as an
  610  unaffiliated insurance agent may not hold an appointment from an
  611  insurer for any license he or she holds; transact, solicit, or
  612  service an insurance contract on behalf of an insurer; interfere
  613  with commissions received or to be received by an insurer
  614  appointed insurance agent or an insurance agency contracted with
  615  or employing insurer-appointed insurance agents; or receive
  616  compensation or any other thing of value from an insurer, an
  617  insurer-appointed insurance agent, or an insurance agency
  618  contracted with or employing insurer-appointed insurance agents
  619  for any transaction or referral occurring after the date of
  620  appointment as an unaffiliated insurance agent. An unaffiliated
  621  insurance agent may continue to receive commissions on sales
  622  that occurred before the date of appointment as an unaffiliated
  623  insurance agent if the receipt of such commissions is disclosed
  624  when making recommendations or evaluating products for a client
  625  that involve products of the entity from which the commissions
  626  are received.
  627         Section 15. Paragraph (d) of subsection (1) of section
  628  626.321, Florida Statutes, is amended to read:
  629         626.321 Limited licenses.—
  630         (1) The department shall issue to a qualified applicant a
  631  license as agent authorized to transact a limited class of
  632  business in any of the following categories of limited lines
  633  insurance:
  634         (d) Motor vehicle rental insurance.—
  635         1. License covering only insurance of the risks set forth
  636  in this paragraph when offered, sold, or solicited with and
  637  incidental to the rental or lease of a motor vehicle and which
  638  applies only to the motor vehicle that is the subject of the
  639  lease or rental agreement and the occupants of the motor
  640  vehicle:
  641         a. Excess motor vehicle liability insurance providing
  642  coverage in excess of the standard liability limits provided by
  643  the lessor in the lessor’s lease to a person renting or leasing
  644  a motor vehicle from the licensee’s employer for liability
  645  arising in connection with the negligent operation of the leased
  646  or rented motor vehicle.
  647         b. Insurance covering the liability of the lessee to the
  648  lessor for damage to the leased or rented motor vehicle.
  649         c. Insurance covering the loss of or damage to baggage,
  650  personal effects, or travel documents of a person renting or
  651  leasing a motor vehicle.
  652         d. Insurance covering accidental personal injury or death
  653  of the lessee and any passenger who is riding or driving with
  654  the covered lessee in the leased or rented motor vehicle.
  655         2. Insurance under a motor vehicle rental insurance license
  656  may be issued only if the lease or rental agreement is for no
  657  more than 60 days, the lessee is not provided coverage for more
  658  than 60 consecutive days per lease period, and the lessee is
  659  given written notice that his or her personal insurance policy
  660  providing coverage on an owned motor vehicle may provide
  661  coverage of such risks and that the purchase of the insurance is
  662  not required in connection with the lease or rental of a motor
  663  vehicle. If the lease is extended beyond 60 days, the coverage
  664  may be extended one time only for up to 60 a period not to
  665  exceed an additional 60 days. Insurance may be provided to the
  666  lessee as an additional insured on a policy issued to the
  667  licensee’s employer.
  668         3. The license may be issued only to the full-time salaried
  669  employee of a licensed general lines agent or to a business
  670  entity that offers motor vehicles for rent or lease if insurance
  671  sales activities authorized by the license are in connection
  672  with and incidental to the rental or lease of a motor vehicle.
  673         a. A license issued to a business entity that offers motor
  674  vehicles for rent or lease encompasses each office, branch
  675  office, employee, and authorized representative located at a
  676  designated branch or place of business making use of the
  677  entity’s business name in order to offer, solicit, and sell
  678  insurance pursuant to this paragraph.
  679         b. The application for licensure must list the name,
  680  address, and phone number for each office, branch office, or
  681  place of business that is to be covered by the license. The
  682  licensee shall notify the department of the name, address, and
  683  phone number of any new location that is to be covered by the
  684  license before the new office, branch office, or place of
  685  business engages in the sale of insurance pursuant to this
  686  paragraph. The licensee must notify the department within 30
  687  days after closing or terminating an office, branch office, or
  688  place of business. Upon receipt of the notice, the department
  689  shall delete the office, branch office, or place of business
  690  from the license.
  691         c. A licensed and appointed entity is directly responsible
  692  and accountable for all acts of the licensee’s employees.
  693         Section 16. Effective January 1, 2015, section 626.382,
  694  Florida Statutes, is amended to read:
  695         626.382 Continuation, expiration of license; insurance
  696  agencies.—The license of an any insurance agency shall be issued
  697  for a period of 3 years and shall continue in force until
  698  canceled, suspended, or revoked, or until it is otherwise
  699  terminated or expires by operation of law. A license may be
  700  renewed by submitting a renewal request to the department on a
  701  form adopted by department rule.
  702         Section 17. Section 626.601, Florida Statutes, is amended
  703  to read:
  704         626.601 Improper conduct; investigation inquiry;
  705  fingerprinting.—
  706         (1) The department or office may, upon its own motion or
  707  upon a written complaint signed by an any interested person and
  708  filed with the department or office, inquire into the any
  709  alleged improper conduct of any licensed, approved, or certified
  710  licensee, insurance agency, agent, adjuster, service
  711  representative, managing general agent, customer representative,
  712  title insurance agent, title insurance agency, mediator, neutral
  713  evaluator, navigator, continuing education course provider,
  714  instructor, school official, or monitor group under this code.
  715  The department or office may thereafter initiate an
  716  investigation of any such individual or entity licensee if it
  717  has reasonable cause to believe that the individual or entity
  718  licensee has violated any provision of the insurance code.
  719  During the course of its investigation, the department or office
  720  shall contact the individual or entity licensee being
  721  investigated unless it determines that contacting such
  722  individual or entity person could jeopardize the successful
  723  completion of the investigation or cause injury to the public.
  724         (2) In the investigation by the department or office of any
  725  the alleged misconduct, an individual or entity the licensee
  726  shall, if whenever so required by the department or office,
  727  cause the individual’s or entity’s his or her books and records
  728  to be open for inspection for the purpose of such investigation
  729  inquiries.
  730         (3) The Complaints against an individual or entity any
  731  licensee may be informally alleged and are not required to
  732  include need not be in any such language as is necessary to
  733  charge a crime on an indictment or information.
  734         (4) The expense for any hearings or investigations
  735  conducted under this section law, as well as the fees and
  736  mileage of witnesses, may be paid out of the appropriate fund.
  737         (5) If the department or office, after investigation, the
  738  department or office has reason to believe that an individual a
  739  licensee may have been found guilty of or pleaded guilty or nolo
  740  contendere to a felony or a crime related to the business of
  741  insurance in this or any other state or jurisdiction, the
  742  department or office may require the individual licensee to file
  743  with the department or office a complete set of his or her
  744  fingerprints, which shall be accompanied by the fingerprint
  745  processing fee set forth in s. 624.501. The fingerprints shall
  746  be taken by an authorized law enforcement agency or other
  747  department-approved entity.
  748         (6) The complaint and any information obtained pursuant to
  749  the investigation by the department or office are confidential
  750  and are exempt from the provisions of s. 119.07, unless the
  751  department or office files a formal administrative complaint,
  752  emergency order, or consent order against the individual or
  753  entity licensee. Nothing in This subsection does not shall be
  754  construed to prevent the department or office from disclosing
  755  the complaint or such information as it deems necessary to
  756  conduct the investigation, to update the complainant as to the
  757  status and outcome of the complaint, or to share such
  758  information with any law enforcement agency or other regulatory
  759  body.
  760         Section 18. Section 626.611, Florida Statutes, is amended
  761  to read:
  762         626.611 Grounds for compulsory refusal, suspension, or
  763  revocation of agent’s, title agency’s, adjuster’s, customer
  764  representative’s, service representative’s, or managing general
  765  agent’s license or appointment.—
  766         (1) The department shall deny an application for, suspend,
  767  revoke, or refuse to renew or continue the license or
  768  appointment of an any applicant, agent, title agency, adjuster,
  769  customer representative, service representative, or managing
  770  general agent, and it shall suspend or revoke the eligibility to
  771  hold a license or appointment of any such person, if it finds
  772  that as to the applicant, licensee, or appointee any one or more
  773  of the following applicable grounds exist:
  774         (a)(1) Lack of one or more of the qualifications for the
  775  license or appointment as specified in this code.
  776         (b)(2) Material misstatement, misrepresentation, or fraud
  777  in obtaining the license or appointment or in attempting to
  778  obtain the license or appointment.
  779         (c)(3) Failure to pass to the satisfaction of the
  780  department any examination required under this code.
  781         (d)(4) If the license or appointment is willfully used, or
  782  to be used, to circumvent any of the requirements or
  783  prohibitions of this code.
  784         (e)(5) Willful misrepresentation of any insurance policy or
  785  annuity contract or willful deception with regard to any such
  786  policy or contract, done either in person or by any form of
  787  dissemination of information or advertising.
  788         (f)(6) If, as an adjuster, or as an agent licensed and
  789  appointed to adjust claims under this code, he or she has
  790  materially misrepresented to an insured or other interested
  791  party the terms and coverage of an insurance contract with
  792  intent and for the purpose of effecting settlement of claim for
  793  loss or damage or benefit under such contract on less favorable
  794  terms than those provided in and contemplated by the contract.
  795         (g)(7) Demonstrated lack of fitness or trustworthiness to
  796  engage in the business of insurance.
  797         (h)(8) Demonstrated lack of reasonably adequate knowledge
  798  and technical competence to engage in the transactions
  799  authorized by the license or appointment.
  800         (i)(9) Fraudulent or dishonest practices in the conduct of
  801  business under the license or appointment.
  802         (j)(10) Misappropriation, conversion, or unlawful
  803  withholding of moneys belonging to insurers or insureds or
  804  beneficiaries or to others and received in conduct of business
  805  under the license or appointment.
  806         (k)(11) Unlawfully rebating, attempting to unlawfully
  807  rebate, or unlawfully dividing or offering to divide his or her
  808  commission with another.
  809         (l)(12) Having obtained or attempted to obtain, or having
  810  used or using, a license or appointment as agent or customer
  811  representative for the purpose of soliciting or handling
  812  “controlled business” as defined in s. 626.730 with respect to
  813  general lines agents, s. 626.784 with respect to life agents,
  814  and s. 626.830 with respect to health agents.
  815         (m)(13) Willful failure to comply with, or willful
  816  violation of, any proper order or rule of the department or
  817  willful violation of any provision of this code.
  818         (n)(14) Having been found guilty of or having pleaded
  819  guilty or nolo contendere to a felony or a crime punishable by
  820  imprisonment of 1 year or more under the law of the United
  821  States of America or of any state thereof or under the law of
  822  any other country which involves moral turpitude, without regard
  823  to whether a judgment of conviction has been entered by the
  824  court having jurisdiction of such cases.
  825         (o)(15) Fraudulent or dishonest practice in submitting or
  826  aiding or abetting any person in the submission of an
  827  application for workers’ compensation coverage under chapter 440
  828  containing false or misleading information as to employee
  829  payroll or classification for the purpose of avoiding or
  830  reducing the amount of premium due for such coverage.
  831         (p)(16) Sale of an unregistered security that was required
  832  to be registered, pursuant to chapter 517.
  833         (q)(17) In transactions related to viatical settlement
  834  contracts as defined in s. 626.9911:
  835         1.(a) Commission of a fraudulent or dishonest act.
  836         2.(b) No longer meeting the requirements for initial
  837  licensure.
  838         3.(c) Having received a fee, commission, or other valuable
  839  consideration for his or her services with respect to viatical
  840  settlements that involved unlicensed viatical settlement
  841  providers or persons who offered or attempted to negotiate on
  842  behalf of another person a viatical settlement contract as
  843  defined in s. 626.9911 and who were not licensed life agents.
  844         4.(d) Dealing in bad faith with viators.
  845         (2) Upon receipt of an information or indictment, the
  846  department shall immediately temporarily suspend a license or
  847  appointment issued under this chapter if the licensee is charged
  848  with a felony enumerated in s. 626.207(3). The suspension shall
  849  continue if the licensee is found guilty of, or pleads guilty or
  850  nolo contendere to, the crime, regardless of whether a judgment
  851  or conviction is entered, during a pending appeal. A person may
  852  not transact insurance business after suspension of his or her
  853  license or appointment.
  854         Section 19. Subsection (2) of section 626.641, Florida
  855  Statutes, is amended to read:
  856         626.641 Duration of suspension or revocation.—
  857         (2) No person or appointee under any license or appointment
  858  revoked by the department, nor any person whose eligibility to
  859  hold same has been revoked by the department, shall have the
  860  right to apply for another license or appointment under this
  861  code within 2 years after from the effective date of such
  862  revocation or, if judicial review of such revocation is sought,
  863  within 2 years after from the date of final court order or
  864  decree affirming the revocation. An applicant for another
  865  license or appointment pursuant to this subsection must apply
  866  and qualify for licensure in the same manner as a first-time
  867  applicant, and the application may be denied on the same grounds
  868  that apply to first-time applicants for licensure pursuant to
  869  ss. 626.207, 626.611, and 626.621. In addition, the department
  870  may shall not grant a new license or appointment or reinstate
  871  eligibility to hold such license or appointment if it finds that
  872  the circumstance or circumstances for which the eligibility was
  873  revoked or for which the previous license or appointment was
  874  revoked still exist or are likely to recur, or; if an
  875  individual’s license as agent or customer representative or
  876  eligibility to hold same has been revoked upon the ground
  877  specified in s. 626.611(1)(l) s. 626.611(12), the department
  878  shall refuse to grant or issue any new license or appointment so
  879  applied for.
  880         Section 20. Section 626.733, Florida Statutes, is amended
  881  to read:
  882         626.733 Agency firms and corporations; special
  883  requirements.—If a sole proprietorship, partnership,
  884  corporation, or association holds an agency contract, all
  885  members thereof who solicit, negotiate, or effect insurance
  886  contracts, and all officers and stockholders of the corporation
  887  who solicit, negotiate, or effect insurance contracts, must are
  888  required to qualify and be licensed individually as agents or
  889  customer representatives,; and all of such agents must be
  890  individually appointed as to each property and casualty insurer
  891  entering into an agency contract with such agency. Each such
  892  appointing insurer as soon as known to it shall comply with this
  893  section and shall determine and require that each agent so
  894  associated in or so connected with such agency is likewise
  895  appointed as to the same such insurer and for the same type and
  896  class of license. However, an no insurer is not required to
  897  comply with the appointment provisions of this section for an
  898  agent within an agency who does not solicit, negotiate, or
  899  effect insurance contracts for that insurer if such insurer
  900  satisfactorily demonstrates to the department that the insurer
  901  has issued an aggregate net written premium, in an agency, in an
  902  amount of $25,000 or less.
  903         Section 21. Paragraphs (a) and (g) of subsection (1) of
  904  section 626.7355, Florida Statutes, are amended to read:
  905         626.7355 Temporary license as customer representative
  906  pending examination.—
  907         (1) The department shall issue a temporary customer
  908  representative’s license with respect to a person who has
  909  applied for such license upon finding that the person:
  910         (a) Has filed an application for a customer
  911  representative’s license or a limited customer representative’s
  912  license and has paid any fees required under s. 624.501(5) in
  913  connection with such application for a customer representative’s
  914  license or limited customer representative’s license.
  915         (g) Is not disqualified from licensure by the department
  916  under s. 626.207 Within the last 5 years, has not been
  917  convicted, found guilty or pleaded nolo contendere to a felony
  918  or a crime punishable by imprisonment of 1 year or more under
  919  the law of any municipality, county, state, territory, or
  920  country, whether or not a judgment of conviction has been
  921  entered.
  922         Section 22. Effective January 1, 2015, section 626.747,
  923  Florida Statutes, is repealed.
  924         Section 23. Subsection (1) of section 626.7845, Florida
  925  Statutes, is amended to read:
  926         626.7845 Prohibition against unlicensed transaction of life
  927  insurance.—
  928         (1) An individual may not solicit or sell variable life
  929  insurance, variable annuity contracts, or any other
  930  indeterminate value or variable contract as defined in s.
  931  627.8015, unless the individual has successfully completed a
  932  licensure examination relating to variable annuity contracts
  933  authorized and approved by the department.
  934         Section 24. Effective January 1, 2015, subsection (1) of
  935  section 626.8411, Florida Statutes, is amended to read:
  936         626.8411 Application of Florida Insurance Code provisions
  937  to title insurance agents or agencies.—
  938         (1) The following provisions of part II applicable to
  939  general lines agents or agencies also apply to title insurance
  940  agents or agencies:
  941         (a) Section 626.734, relating to liability of certain
  942  agents.
  943         (b) Section 626.0428(4)(a) and (b) 626.747, relating to
  944  branch agencies.
  945         (c) Section 626.749, relating to place of business in
  946  residence.
  947         (d) Section 626.753, relating to sharing of commissions.
  948         (e) Section 626.754, relating to rights of agent following
  949  termination of appointment.
  950         Section 25. Subsection (2) of section 626.861, Florida
  951  Statutes, is amended to read:
  952         626.861 Insurer’s officers, insurer’s employees, reciprocal
  953  insurer’s representatives; adjustments by.—
  954         (2) If any such officer, employee, attorney, or agent in
  955  connection with the adjustment of any such claim, loss, or
  956  damage engages in any of the misconduct described in or
  957  contemplated by s. 626.611(1)(f) s. 626.611(6), the office may
  958  suspend or revoke the insurer’s certificate of authority.
  959         Section 26. Section 626.862, Florida Statutes, is amended
  960  to read:
  961         626.862 Agents; adjustments by.—A licensed and appointed
  962  insurance agent may, without being licensed as an adjuster,
  963  adjust losses for the insurer represented by him or her as agent
  964  if so authorized by the insurer. The license and appointment of
  965  the agent may be suspended or revoked for violation of or
  966  misconduct prohibited by s. 626.611(1)(f) s. 626.611(6).
  967         Section 27. Subsection (2) of section 626.9272, Florida
  968  Statutes, is amended to read:
  969         626.9272 Licensing of nonresident surplus lines agents.—
  970         (2) The department may not issue a license unless the
  971  applicant satisfies the same licensing requirements under s.
  972  626.927 as required of a resident surplus lines agent, excluding
  973  the required experience or coursework and examination. The
  974  department may refuse to issue such license or appointment if
  975  when it has reason to believe that any of the grounds exist for
  976  denial, suspension, or revocation of a license as set forth in
  977  ss. 626.611 and 626.621.
  978         Section 28. Section 627.4553, Florida Statutes, is created
  979  to read:
  980         627.4553 Recommendations to surrender.—If an insurance
  981  agent recommends the surrender of an annuity or life insurance
  982  policy containing a cash value but does not recommend that the
  983  proceeds from the surrender be used to fund or purchase another
  984  annuity or life insurance policy, before execution of the
  985  surrender, the insurance agent, or the insurance company if no
  986  agent is involved, must provide, on a form that satisfies the
  987  requirements of the rule adopted by the department, information
  988  relating to the annuity or policy to be surrendered. Such
  989  information must include, but need not limited to, the amount of
  990  any surrender charge, the loss of any minimum interest rate
  991  guarantees, the amount of any tax consequences resulting from
  992  the transaction, the amount of any forfeited death benefit, and
  993  the value of any other investment performance guarantees being
  994  forfeited as a result of the transaction. This section also
  995  applies to a person performing insurance agent activities
  996  pursuant to an exemption from licensure under this part.
  997         Section 29. Paragraph (b) of subsection (4) of section
  998  627.7015, Florida Statutes, is amended to read:
  999         627.7015 Alternative procedure for resolution of disputed
 1000  property insurance claims.—
 1001         (4) The department shall adopt by rule a property insurance
 1002  mediation program to be administered by the department or its
 1003  designee. The department may also adopt special rules which are
 1004  applicable in cases of an emergency within the state. The rules
 1005  shall be modeled after practices and procedures set forth in
 1006  mediation rules of procedure adopted by the Supreme Court. The
 1007  rules shall provide for:
 1008         (b) Qualifications, denial of application, suspension,
 1009  revocation, and other penalties for of mediators as provided in
 1010  s. 627.745 and in the Florida Rules for of Certified and Court
 1011  Appointed Court Appointed Mediators, and for such other
 1012  individuals as are qualified by education, training, or
 1013  experience as the department determines to be appropriate.
 1014         Section 30. Paragraph (c) of subsection (2) of section
 1015  627.706, Florida Statutes, is amended to read:
 1016         627.706 Sinkhole insurance; catastrophic ground cover
 1017  collapse; definitions.—
 1018         (2) As used in ss. 627.706-627.7074, and as used in
 1019  connection with any policy providing coverage for a catastrophic
 1020  ground cover collapse or for sinkhole losses, the term:
 1021         (c) “Neutral evaluator” means a professional engineer or a
 1022  professional geologist who has completed a course of study in
 1023  alternative dispute resolution designed or approved by the
 1024  department for use in the neutral evaluation process, and who is
 1025  determined by the department to be fair and impartial, and who
 1026  is not otherwise ineligible for certification as provided in s.
 1027  627.7074.
 1028         Section 31. Subsections (7) and (18) of section 627.7074,
 1029  Florida Statutes, are amended to read:
 1030         627.7074 Alternative procedure for resolution of disputed
 1031  sinkhole insurance claims.—
 1032         (7) Upon receipt of a request for neutral evaluation, the
 1033  department shall provide the parties a list of certified neutral
 1034  evaluators. The department shall allow the parties to submit
 1035  requests to disqualify evaluators on the list for cause.
 1036         (a) The department shall disqualify neutral evaluators for
 1037  cause based only on any of the following grounds:
 1038         1. A familial relationship exists between the neutral
 1039  evaluator and either party or a representative of either party
 1040  within the third degree.
 1041         2. The proposed neutral evaluator has, in a professional
 1042  capacity, previously represented either party or a
 1043  representative of either party, in the same or a substantially
 1044  related matter.
 1045         3. The proposed neutral evaluator has, in a professional
 1046  capacity, represented another person in the same or a
 1047  substantially related matter and that person’s interests are
 1048  materially adverse to the interests of the parties. The term
 1049  “substantially related matter” means participation by the
 1050  neutral evaluator on the same claim, property, or adjacent
 1051  property.
 1052         4. The proposed neutral evaluator has, within the preceding
 1053  5 years, worked as an employer or employee of a any party to the
 1054  case.
 1055         (b) The department shall deny an application, or suspend or
 1056  revoke its certification, of a neutral evaluator to serve in
 1057  such capacity if the department finds that one or more of the
 1058  following grounds exist:
 1059         1. Lack of one or more of the qualifications specified in
 1060  this section for certification.
 1061         2. Material misstatement, misrepresentation, or fraud in
 1062  obtaining or attempting to obtain certification.
 1063         3. Demonstrated lack of fitness or trustworthiness to act
 1064  as a neutral evaluator.
 1065         4. Fraudulent or dishonest practices in the conduct of an
 1066  evaluation or in the conduct of financial services business.
 1067         5. Violation of any provision of this code or of a lawful
 1068  order or rule of the department or aiding, instructing, or
 1069  encouraging another party in committing such a violation.
 1070         (c)(b) The parties shall appoint a neutral evaluator from
 1071  the department list and promptly inform the department. If the
 1072  parties cannot agree to a neutral evaluator within 14 business
 1073  days, the department shall appoint a neutral evaluator from the
 1074  list of certified neutral evaluators. The department shall allow
 1075  each party to disqualify two neutral evaluators without cause.
 1076  Upon selection or appointment, the department shall promptly
 1077  refer the request to the neutral evaluator.
 1078         (d)(c) Within 14 business days after the referral, the
 1079  neutral evaluator shall notify the policyholder and the insurer
 1080  of the date, time, and place of the neutral evaluation
 1081  conference. The conference may be held by telephone, if feasible
 1082  and desirable. The neutral evaluator shall make reasonable
 1083  efforts to hold the conference within 90 days after the receipt
 1084  of the request by the department. Failure of the neutral
 1085  evaluator to hold the conference within 90 days does not
 1086  invalidate either party’s right to neutral evaluation or to a
 1087  neutral evaluation conference held outside this timeframe.
 1088         (18) The department shall adopt rules of procedure for the
 1089  neutral evaluation process and rules for certifying, denying
 1090  certification of, suspending certification of, and revoking
 1091  certification as a neutral evaluator.
 1092         Section 32. Subsection (3) of section 627.745, Florida
 1093  Statutes, is amended, present subsections (4) and (5) of that
 1094  section are renumbered as subsections (5) and (6), respectively,
 1095  and a new subsection (4) is added to that section, to read:
 1096         627.745 Mediation of claims.—
 1097         (3)(a)The department shall approve Mediators who to
 1098  conduct mediations pursuant to this section. All mediators must
 1099  file an application under oath and be approved by the department
 1100  for approval as a mediator.
 1101         (b) To qualify for approval as a mediator, an individual a
 1102  person must meet one of the following qualifications:
 1103         (a)1. Possess active certification as a Florida Supreme
 1104  Court certified circuit court mediator. A Florida Supreme Court
 1105  certified circuit court mediator in a lapsed, suspended,
 1106  sanctioned, or decertified status is not eligible to participate
 1107  in the mediation program a masters or doctorate degree in
 1108  psychology, counseling, business, accounting, or economics, be a
 1109  member of The Florida Bar, be licensed as a certified public
 1110  accountant, or demonstrate that the applicant for approval has
 1111  been actively engaged as a qualified mediator for at least 4
 1112  years prior to July 1, 1990.
 1113         (b)2.Be an approved department mediator as of July 1,
 1114  2014, and have conducted at least one mediation on behalf of the
 1115  department within 4 years immediately preceding that the date
 1116  the application for approval is filed with the department, have
 1117  completed a minimum of a 40-hour training program approved by
 1118  the department and successfully passed a final examination
 1119  included in the training program and approved by the department.
 1120  The training program shall include and address all of the
 1121  following:
 1122         a. Mediation theory.
 1123         b. Mediation process and techniques.
 1124         c. Standards of conduct for mediators.
 1125         d. Conflict management and intervention skills.
 1126         e. Insurance nomenclature.
 1127         (4) The department shall deny an application, or suspend or
 1128  revoke its approval, of a mediator to serve in such capacity if
 1129  the department finds that one or more of the following grounds
 1130  exist:
 1131         (a) Lack of one or more of the qualifications specified in
 1132  this section for approval or certification.
 1133         (b) Material misstatement, misrepresentation, or fraud in
 1134  obtaining or attempting to obtain the approval or certification.
 1135         (c) Demonstrated lack of fitness or trustworthiness to act
 1136  as a mediator.
 1137         (d) Fraudulent or dishonest practices in the conduct of
 1138  mediation or in the conduct of business in the financial
 1139  services industry.
 1140         (e) Violation of any provision of this code or of a lawful
 1141  order or rule of the department, violation of the Florida Rules
 1142  for Certified and Court Appointed Mediators, or aiding,
 1143  instructing, or encouraging another party in committing such a
 1144  violation.
 1145  
 1146         The department shall adopt rules for the approval or denial
 1147  of mediator applications and the suspension and revocation of
 1148  approval of mediators.
 1149         Section 33. Paragraph (b) of subsection (1) of section
 1150  627.952, Florida Statutes, is amended to read:
 1151         627.952 Risk retention and purchasing group agents.—
 1152         (1) Any person offering, soliciting, selling, purchasing,
 1153  administering, or otherwise servicing insurance contracts,
 1154  certificates, or agreements for any purchasing group or risk
 1155  retention group to any resident of this state, either directly
 1156  or indirectly, by the use of mail, advertising, or other means
 1157  of communication, shall obtain a license and appointment to act
 1158  as a resident general lines agent, if a resident of this state,
 1159  or a nonresident general lines agent if not a resident. Any such
 1160  person shall be subject to all requirements of the Florida
 1161  Insurance Code.
 1162         (b) Any person required to be licensed and appointed under
 1163  this subsection, In order to place business through a Florida
 1164  eligible Florida eligible surplus lines carrier carriers, a
 1165  person required to be licensed and appointed under this
 1166  subsection must:,
 1167         1. If a resident of this state, be licensed and appointed
 1168  as a surplus lines agent.
 1169         2. If not a resident of this state, such person must be
 1170  licensed and appointed as a surplus lines agent in her or his
 1171  state of residence and be licensed and appointed as a
 1172  nonresident surplus lines agent in this state file and maintain
 1173  a fidelity bond in favor of the people of the State of Florida
 1174  executed by a surety company admitted in this state and payable
 1175  to the State of Florida; however, such nonresident is limited to
 1176  the provision of insurance for purchasing groups. The bond must
 1177  be continuous in form and in the amount of not less than
 1178  $50,000, aggregate liability. The bond must remain in force and
 1179  effect until the surety is released from liability by the
 1180  department or until the bond is canceled by the surety. The
 1181  surety may cancel the bond and be released from further
 1182  liability upon 30 days’ prior written notice to the department.
 1183  The cancellation does not affect any liability incurred or
 1184  accrued before the termination of the 30-day period. Upon
 1185  receipt of a notice of cancellation, the department shall
 1186  immediately notify the agent.
 1187         Section 34. Subsection (1) of section 648.43, Florida
 1188  Statutes, is amended to read:
 1189         648.43 Power of attorney; to be approved by department;
 1190  filing of copies; notification of transfer bond.—
 1191         (1) Every insurer engaged in the writing of bail bonds
 1192  through bail bond agents in this state shall submit and have
 1193  approved by the department a sample power of attorney to the
 1194  office for prior approval, which shall will be the only form of
 1195  power of attorney the insurer issues will issue to bail bond
 1196  agents in this state.
 1197         Section 35. Subsection (3) of section 648.49, Florida
 1198  Statutes, is amended to read:
 1199         648.49 Duration of suspension or revocation.—
 1200         (3) During the period of suspension, or after revocation of
 1201  the license and until the license is reinstated or a new license
 1202  is issued, the former licensee may not engage in or attempt to
 1203  profess to engage in any transaction or business for which a
 1204  license or appointment is required under this chapter. A Any
 1205  person who violates this subsection commits a felony of the
 1206  third degree, punishable as provided in s. 775.082, s. 775.083,
 1207  or s. 775.084.
 1208         Section 36. Paragraphs (a) and (c) of subsection (4) of
 1209  section 943.0585, Florida Statutes, are amended to read:
 1210         943.0585 Court-ordered expunction of criminal history
 1211  records.—The courts of this state have jurisdiction over their
 1212  own procedures, including the maintenance, expunction, and
 1213  correction of judicial records containing criminal history
 1214  information to the extent such procedures are not inconsistent
 1215  with the conditions, responsibilities, and duties established by
 1216  this section. Any court of competent jurisdiction may order a
 1217  criminal justice agency to expunge the criminal history record
 1218  of a minor or an adult who complies with the requirements of
 1219  this section. The court shall not order a criminal justice
 1220  agency to expunge a criminal history record until the person
 1221  seeking to expunge a criminal history record has applied for and
 1222  received a certificate of eligibility for expunction pursuant to
 1223  subsection (2). A criminal history record that relates to a
 1224  violation of s. 393.135, s. 394.4593, s. 787.025, chapter 794,
 1225  s. 796.03, s. 800.04, s. 810.14, s. 817.034, s. 825.1025, s.
 1226  827.071, chapter 839, s. 847.0133, s. 847.0135, s. 847.0145, s.
 1227  893.135, s. 916.1075, a violation enumerated in s. 907.041, or
 1228  any violation specified as a predicate offense for registration
 1229  as a sexual predator pursuant to s. 775.21, without regard to
 1230  whether that offense alone is sufficient to require such
 1231  registration, or for registration as a sexual offender pursuant
 1232  to s. 943.0435, may not be expunged, without regard to whether
 1233  adjudication was withheld, if the defendant was found guilty of
 1234  or pled guilty or nolo contendere to the offense, or if the
 1235  defendant, as a minor, was found to have committed, or pled
 1236  guilty or nolo contendere to committing, the offense as a
 1237  delinquent act. The court may only order expunction of a
 1238  criminal history record pertaining to one arrest or one incident
 1239  of alleged criminal activity, except as provided in this
 1240  section. The court may, at its sole discretion, order the
 1241  expunction of a criminal history record pertaining to more than
 1242  one arrest if the additional arrests directly relate to the
 1243  original arrest. If the court intends to order the expunction of
 1244  records pertaining to such additional arrests, such intent must
 1245  be specified in the order. A criminal justice agency may not
 1246  expunge any record pertaining to such additional arrests if the
 1247  order to expunge does not articulate the intention of the court
 1248  to expunge a record pertaining to more than one arrest. This
 1249  section does not prevent the court from ordering the expunction
 1250  of only a portion of a criminal history record pertaining to one
 1251  arrest or one incident of alleged criminal activity.
 1252  Notwithstanding any law to the contrary, a criminal justice
 1253  agency may comply with laws, court orders, and official requests
 1254  of other jurisdictions relating to expunction, correction, or
 1255  confidential handling of criminal history records or information
 1256  derived therefrom. This section does not confer any right to the
 1257  expunction of any criminal history record, and any request for
 1258  expunction of a criminal history record may be denied at the
 1259  sole discretion of the court.
 1260         (4) EFFECT OF CRIMINAL HISTORY RECORD EXPUNCTION.—Any
 1261  criminal history record of a minor or an adult which is ordered
 1262  expunged by a court of competent jurisdiction pursuant to this
 1263  section must be physically destroyed or obliterated by any
 1264  criminal justice agency having custody of such record; except
 1265  that any criminal history record in the custody of the
 1266  department must be retained in all cases. A criminal history
 1267  record ordered expunged that is retained by the department is
 1268  confidential and exempt from the provisions of s. 119.07(1) and
 1269  s. 24(a), Art. I of the State Constitution and not available to
 1270  any person or entity except upon order of a court of competent
 1271  jurisdiction. A criminal justice agency may retain a notation
 1272  indicating compliance with an order to expunge.
 1273         (a) The person who is the subject of a criminal history
 1274  record that is expunged under this section or under other
 1275  provisions of law, including former s. 893.14, former s. 901.33,
 1276  and former s. 943.058, may lawfully deny or fail to acknowledge
 1277  the arrests covered by the expunged record, except when the
 1278  subject of the record:
 1279         1. Is a candidate for employment with a criminal justice
 1280  agency;
 1281         2. Is a defendant in a criminal prosecution;
 1282         3. Concurrently or subsequently petitions for relief under
 1283  this section, s. 943.0583, or s. 943.059;
 1284         4. Is a candidate for admission to The Florida Bar;
 1285         5. Is seeking to be employed or licensed by or to contract
 1286  with the Department of Children and Families, the Division of
 1287  Vocational Rehabilitation within the Department of Education,
 1288  the Agency for Health Care Administration, the Agency for
 1289  Persons with Disabilities, the Department of Health, the
 1290  Department of Elderly Affairs, or the Department of Juvenile
 1291  Justice or to be employed or used by such contractor or licensee
 1292  in a sensitive position having direct contact with children, the
 1293  disabled, or the elderly; or
 1294         6. Is seeking to be employed or licensed by the Department
 1295  of Education, any district school board, any university
 1296  laboratory school, any charter school, any private or parochial
 1297  school, or any local governmental entity that licenses child
 1298  care facilities; or
 1299         7. Is seeking to be licensed by the Division of Insurance
 1300  Agent and Agency Services within the Department of Financial
 1301  Services.
 1302         (c) Information relating to the existence of an expunged
 1303  criminal history record which is provided in accordance with
 1304  paragraph (a) is confidential and exempt from the provisions of
 1305  s. 119.07(1) and s. 24(a), Art. I of the State Constitution,
 1306  except that the department shall disclose the existence of a
 1307  criminal history record ordered expunged to the entities set
 1308  forth in subparagraphs (a)1., 4., 5., 6., and 7. 7. for their
 1309  respective licensing, access authorization, and employment
 1310  purposes, and to criminal justice agencies for their respective
 1311  criminal justice purposes. It is unlawful for any employee of an
 1312  entity set forth in subparagraph (a)1., subparagraph (a)4.,
 1313  subparagraph (a)5., subparagraph (a)6., or subparagraph (a)7.
 1314  subparagraph (a)7. to disclose information relating to the
 1315  existence of an expunged criminal history record of a person
 1316  seeking employment, access authorization, or licensure with such
 1317  entity or contractor, except to the person to whom the criminal
 1318  history record relates or to persons having direct
 1319  responsibility for employment, access authorization, or
 1320  licensure decisions. Any person who violates this paragraph
 1321  commits a misdemeanor of the first degree, punishable as
 1322  provided in s. 775.082 or s. 775.083.
 1323         Section 37. Paragraphs (a) and (c) of subsection (4) of
 1324  section 943.059, Florida Statutes, are amended to read:
 1325         943.059 Court-ordered sealing of criminal history records.
 1326  The courts of this state shall continue to have jurisdiction
 1327  over their own procedures, including the maintenance, sealing,
 1328  and correction of judicial records containing criminal history
 1329  information to the extent such procedures are not inconsistent
 1330  with the conditions, responsibilities, and duties established by
 1331  this section. Any court of competent jurisdiction may order a
 1332  criminal justice agency to seal the criminal history record of a
 1333  minor or an adult who complies with the requirements of this
 1334  section. The court shall not order a criminal justice agency to
 1335  seal a criminal history record until the person seeking to seal
 1336  a criminal history record has applied for and received a
 1337  certificate of eligibility for sealing pursuant to subsection
 1338  (2). A criminal history record that relates to a violation of s.
 1339  393.135, s. 394.4593, s. 787.025, chapter 794, s. 796.03, s.
 1340  800.04, s. 810.14, s. 817.034, s. 825.1025, s. 827.071, chapter
 1341  839, s. 847.0133, s. 847.0135, s. 847.0145, s. 893.135, s.
 1342  916.1075, a violation enumerated in s. 907.041, or any violation
 1343  specified as a predicate offense for registration as a sexual
 1344  predator pursuant to s. 775.21, without regard to whether that
 1345  offense alone is sufficient to require such registration, or for
 1346  registration as a sexual offender pursuant to s. 943.0435, may
 1347  not be sealed, without regard to whether adjudication was
 1348  withheld, if the defendant was found guilty of or pled guilty or
 1349  nolo contendere to the offense, or if the defendant, as a minor,
 1350  was found to have committed or pled guilty or nolo contendere to
 1351  committing the offense as a delinquent act. The court may only
 1352  order sealing of a criminal history record pertaining to one
 1353  arrest or one incident of alleged criminal activity, except as
 1354  provided in this section. The court may, at its sole discretion,
 1355  order the sealing of a criminal history record pertaining to
 1356  more than one arrest if the additional arrests directly relate
 1357  to the original arrest. If the court intends to order the
 1358  sealing of records pertaining to such additional arrests, such
 1359  intent must be specified in the order. A criminal justice agency
 1360  may not seal any record pertaining to such additional arrests if
 1361  the order to seal does not articulate the intention of the court
 1362  to seal records pertaining to more than one arrest. This section
 1363  does not prevent the court from ordering the sealing of only a
 1364  portion of a criminal history record pertaining to one arrest or
 1365  one incident of alleged criminal activity. Notwithstanding any
 1366  law to the contrary, a criminal justice agency may comply with
 1367  laws, court orders, and official requests of other jurisdictions
 1368  relating to sealing, correction, or confidential handling of
 1369  criminal history records or information derived therefrom. This
 1370  section does not confer any right to the sealing of any criminal
 1371  history record, and any request for sealing a criminal history
 1372  record may be denied at the sole discretion of the court.
 1373         (4) EFFECT OF CRIMINAL HISTORY RECORD SEALING.—A criminal
 1374  history record of a minor or an adult which is ordered sealed by
 1375  a court of competent jurisdiction pursuant to this section is
 1376  confidential and exempt from the provisions of s. 119.07(1) and
 1377  s. 24(a), Art. I of the State Constitution and is available only
 1378  to the person who is the subject of the record, to the subject’s
 1379  attorney, to criminal justice agencies for their respective
 1380  criminal justice purposes, which include conducting a criminal
 1381  history background check for approval of firearms purchases or
 1382  transfers as authorized by state or federal law, to judges in
 1383  the state courts system for the purpose of assisting them in
 1384  their case-related decisionmaking responsibilities, as set forth
 1385  in s. 943.053(5), or to those entities set forth in
 1386  subparagraphs (a)1., 4., 5., 6., and 8. 8. for their respective
 1387  licensing, access authorization, and employment purposes.
 1388         (a) The subject of a criminal history record sealed under
 1389  this section or under other provisions of law, including former
 1390  s. 893.14, former s. 901.33, and former s. 943.058, may lawfully
 1391  deny or fail to acknowledge the arrests covered by the sealed
 1392  record, except when the subject of the record:
 1393         1. Is a candidate for employment with a criminal justice
 1394  agency;
 1395         2. Is a defendant in a criminal prosecution;
 1396         3. Concurrently or subsequently petitions for relief under
 1397  this section, s. 943.0583, or s. 943.0585;
 1398         4. Is a candidate for admission to The Florida Bar;
 1399         5. Is seeking to be employed or licensed by or to contract
 1400  with the Department of Children and Families, the Division of
 1401  Vocational Rehabilitation within the Department of Education,
 1402  the Agency for Health Care Administration, the Agency for
 1403  Persons with Disabilities, the Department of Health, the
 1404  Department of Elderly Affairs, or the Department of Juvenile
 1405  Justice or to be employed or used by such contractor or licensee
 1406  in a sensitive position having direct contact with children, the
 1407  disabled, or the elderly;
 1408         6. Is seeking to be employed or licensed by the Department
 1409  of Education, any district school board, any university
 1410  laboratory school, any charter school, any private or parochial
 1411  school, or any local governmental entity that licenses child
 1412  care facilities; or
 1413         7. Is attempting to purchase a firearm from a licensed
 1414  importer, licensed manufacturer, or licensed dealer and is
 1415  subject to a criminal history check under state or federal law;
 1416  or
 1417         8. Is seeking to be licensed by the Division of Insurance
 1418  Agent and Agency Services within the Department of Financial
 1419  Services.
 1420         (c) Information relating to the existence of a sealed
 1421  criminal record provided in accordance with the provisions of
 1422  paragraph (a) is confidential and exempt from the provisions of
 1423  s. 119.07(1) and s. 24(a), Art. I of the State Constitution,
 1424  except that the department shall disclose the sealed criminal
 1425  history record to the entities set forth in subparagraphs (a)1.,
 1426  4., 5., 6., and 8. 8. for their respective licensing, access
 1427  authorization, and employment purposes. It is unlawful for any
 1428  employee of an entity set forth in subparagraph (a)1.,
 1429  subparagraph (a)4., subparagraph (a)5., subparagraph (a)6., or
 1430  subparagraph (a)8. subparagraph (a)8. to disclose information
 1431  relating to the existence of a sealed criminal history record of
 1432  a person seeking employment, access authorization, or licensure
 1433  with such entity or contractor, except to the person to whom the
 1434  criminal history record relates or to persons having direct
 1435  responsibility for employment, access authorization, or
 1436  licensure decisions. Any person who violates the provisions of
 1437  this paragraph commits a misdemeanor of the first degree,
 1438  punishable as provided in s. 775.082 or s. 775.083.
 1439         Section 38. Except as otherwise expressly provided in this
 1440  act, and except for this section which shall take effect upon
 1441  becoming law, this act shall take effect July 1, 2014.

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