Bill Text: FL S1222 | 2015 | Regular Session | Comm Sub
Bill Title: Division of Insurance Agent and Agency Services
Spectrum: Slight Partisan Bill (? 2-1)
Status: (Introduced - Dead) 2015-04-23 - Laid on Table, companion bill(s) passed, see CS/CS/HB 1133 (Ch. 2015-180) [S1222 Detail]
Download: Florida-2015-S1222-Comm_Sub.html
Florida Senate - 2015 CS for CS for SB 1222
By the Committees on Fiscal Policy; and Banking and Insurance;
and Senator Richter
594-04170-15 20151222c2
1 A bill to be entitled
2 An act relating to the Division of Insurance Agent and
3 Agency Services; amending s. 626.015, F.S.; revising
4 the definition of “general lines agent,” to remove a
5 restriction with respect to agents transacting health
6 insurance; limiting the types of health insurance
7 agents; amending s. 626.0428, F.S.; revising licensure
8 requirements of certain agents in charge of an
9 agency’s place of business; amending s. 626.221, F.S.;
10 revising examination requirements and exemptions for
11 applicants for certain agent and adjuster licenses;
12 amending s. 626.241, F.S.; revising the scope of
13 license examinations for agents and adjusters;
14 amending s. 626.2817, F.S.; revising requirements of
15 certain prelicensure education courses for insurance
16 agents and other licensees; amending s. 626.311, F.S.;
17 conforming provisions to changes made by the act;
18 amending s. 626.732, F.S.; revising requirements
19 relating to knowledge, experience, and instruction for
20 applicants for a license as a general lines or
21 personal lines agent; amending s. 626.7351, F.S.;
22 revising qualifications for a customer
23 representative’s license; amending s. 626.7354, F.S;
24 revising provisions relating to customer
25 representative compensation to allow the receipt of
26 commissions by such representatives if the commissions
27 do not constitute the primary source of compensation;
28 amending s. 626.748, F.S.; requiring agents to
29 maintain certain records for a specified period of
30 time; amending s. 626.753, F.S.; conforming provisions
31 to changes made by act; amending ss. 626.7851 and
32 626.8311, F.S.; revising requirements relating to the
33 knowledge, experience, or instruction for life agents
34 and health agents, respectively; amending s. 626.931,
35 F.S.; deleting provisions that require surplus lines
36 agents to file a quarterly affidavit with the Florida
37 Surplus Lines Office; amending ss. 626.932, 626.935,
38 and 626.936, F.S.; conforming provisions to changes
39 made by act; amending s. 626.9541, F.S.; providing
40 that certain provisions relating to illegal dealings
41 in premiums are applicable notwithstanding any other
42 provision of law; amending s. 627.4553, F.S.;
43 requiring an insurance agent to provide and retain
44 certain information upon surrender of an annuity
45 contract or life insurance policy under certain
46 circumstances; defining the term “surrender”; amending
47 s. 631.341, F.S.; authorizing certain notices of
48 insolvency to be delivered to policyholders by certain
49 methods; providing an effective date.
50
51 Be It Enacted by the Legislature of the State of Florida:
52
53 Section 1. Paragraph (d) of subsection (5) of section
54 626.015, Florida Statutes, is amended to read:
55 626.015 Definitions.—As used in this part:
56 (5) “General lines agent” means an agent transacting any
57 one or more of the following kinds of insurance:
58 (d) Health insurance, when transacted by an insurer also
59 represented by the same agent as to property or casualty or
60 surety insurance.
61 Section 2. Paragraph (a) of subsection (4) of section
62 626.0428, Florida Statutes, is amended to read:
63 626.0428 Agency personnel powers, duties, and limitations.—
64 (4)(a) Each place of business established by an agent or
65 agency, firm, corporation, or association must be in the active
66 full-time charge of a licensed and appointed agent holding the
67 required agent licenses to transact at least two of the lines of
68 insurance being handled at the location. If only one line of
69 insurance is handled at the location, the agent in charge must
70 hold the required agent license to transact that line of
71 insurance.
72 Section 3. Subsection (1) and paragraphs (g) through (l) of
73 subsection (2) of section 626.221, Florida Statutes, are amended
74 to read:
75 626.221 Examination requirement; exemptions.—
76 (1) The department shall not issue any license as agent,
77 customer representative, or adjuster to any individual who has
78 not qualified for, taken, and passed to the satisfaction of the
79 department a written examination of the scope prescribed in s.
80 626.241.
81 (2) However, an examination is not necessary for any of the
82 following:
83 (g) An applicant for a license as a life or health agent
84 who has received the designation of chartered life underwriter
85 (CLU) from the American College of Financial Services Life
86 Underwriters and has been engaged in the insurance business
87 within the past 4 years, except that the applicant may be
88 examined on pertinent provisions of this code.
89 (h) An applicant for license as a general lines agent,
90 personal lines agent, or all-lines customer representative, or
91 adjuster who has received the designation of chartered property
92 and casualty underwriter (CPCU) from the American Institute for
93 Chartered Property Casualty and Liability Underwriters and has
94 been engaged in the insurance business within the past 4 years,
95 except that the applicant may be examined on pertinent
96 provisions of this code.
97 (i) An applicant for license as a general lines agent or an
98 all-lines adjuster who has received a degree in insurance from
99 an accredited institution of higher learning approved by the
100 department, except that the applicant may be examined on
101 pertinent provisions of this code. Qualifying degrees must
102 indicate a minimum of 18 credit hours of insurance instruction,
103 including specific instruction in the areas of property,
104 casualty, health, and commercial insurance customer
105 representative who has earned the designation of Accredited
106 Advisor in Insurance (AAI) from the Insurance Institute of
107 America, the designation of Certified Insurance Counselor (CIC)
108 from the Society of Certified Insurance Service Counselors, the
109 designation of Accredited Customer Service Representative (ACSR)
110 from the Independent Insurance Agents of America, the
111 designation of Certified Professional Service Representative
112 (CPSR) from the National Foundation for Certified Professional
113 Service Representatives, the designation of Certified Insurance
114 Service Representative (CISR) from the Society of Certified
115 Insurance Service Representatives, or the designation of
116 Certified Insurance Representative (CIR) from the National
117 Association of Christian Catastrophe Insurance Adjusters. Also,
118 an applicant for license as a customer representative who has
119 earned an associate degree or bachelor’s degree from an
120 accredited college or university and has completed at least 9
121 academic hours of property and casualty insurance curriculum, or
122 the equivalent, or has earned the designation of Certified
123 Customer Service Representative (CCSR) from the Florida
124 Association of Insurance Agents, or the designation of
125 Registered Customer Service Representative (RCSR) from a
126 regionally accredited postsecondary institution in this state,
127 or the designation of Professional Customer Service
128 Representative (PCSR) from the Professional Career Institute,
129 whose curriculum has been approved by the department and which
130 includes comprehensive analysis of basic property and casualty
131 lines of insurance and testing at least equal to that of
132 standard department testing for the customer representative
133 license. The department shall adopt rules establishing standards
134 for the approval of curriculum.
135 (j) An applicant for license as a personal lines agent who
136 has received a degree from an accredited institution of higher
137 learning approved by the department, except that the applicant
138 may be examined on pertinent provisions of this code. Qualifying
139 degrees must indicate a minimum of 9 credit hours of insurance
140 instruction, including specific instruction in the areas of
141 property, casualty, and inland marine insurance. resident or
142 (k) An applicant for license as an nonresident all-lines
143 adjuster who has the designation of Accredited Claims Adjuster
144 (ACA) from a regionally accredited postsecondary institution in
145 this state, Associate in Claims (AIC) from the Insurance
146 Institute of America, Professional Claims Adjuster (PCA) from
147 the Professional Career Institute, Professional Property
148 Insurance Adjuster (PPIA) from the HurriClaim Training Academy,
149 Certified Adjuster (CA) from ALL LINES Training, or Certified
150 Claims Adjuster (CCA) from AE21 Incorporated the Association of
151 Property and Casualty Claims Professionals whose curriculum has
152 been approved by the department and which includes comprehensive
153 analysis of basic property and casualty lines of insurance and
154 testing at least equal to that of standard department testing
155 for the all-lines adjuster license. The department shall adopt
156 rules establishing standards for the approval of curriculum.
157 (l) An applicant for license as a life agent who has
158 received a degree from an accredited institution of higher
159 learning approved by the department, except that the applicant
160 may be examined on pertinent provisions of this code. Qualifying
161 degrees must indicate a minimum of 9 credit hours of insurance
162 instruction, including specific instruction in the areas of life
163 insurance, annuities, and variable insurance products.
164 (m) An applicant for license as a health agent who has
165 received a degree from an accredited institution of higher
166 learning approved by the department, except that the applicant
167 may be examined on pertinent provisions of this code. Qualifying
168 degrees must indicate a minimum of 9 credit hours of insurance
169 instruction, including specific instruction in the area of
170 health insurance products.
171 (n)(k) An applicant qualifying for a license transfer under
172 s. 626.292 if the applicant:
173 1. Has successfully completed the prelicensing examination
174 requirements in the applicant’s previous home state which are
175 substantially equivalent to the examination requirements in this
176 state, as determined by the department;
177 2. Has received the designation of chartered property and
178 casualty underwriter (CPCU) from the American Institute for
179 Property and Liability Underwriters and been engaged in the
180 insurance business within the past 4 years if applying to
181 transfer a general lines agent license; or
182 3. Has received the designation of chartered life
183 underwriter (CLU) from the American College of Life Underwriters
184 and been engaged in the insurance business within the past 4
185 years if applying to transfer a life or health agent license.
186 (o)(l) An applicant for a license as a nonresident agent if
187 the applicant holds a comparable license in another state with
188 similar examination requirements as this state:
189 1. Has successfully completed prelicensing examination
190 requirements in the applicant’s home state which are
191 substantially equivalent to the examination requirements in this
192 state, as determined by the department, as a requirement for
193 obtaining a resident license in his or her home state;
194 2. Held a general lines agent license, life agent license,
195 or health agent license before a written examination was
196 required;
197 3. Has received the designation of chartered property and
198 casualty underwriter (CPCU) from the American Institute for
199 Property and Liability Underwriters and has been engaged in the
200 insurance business within the past 4 years, if an applicant for
201 a nonresident license as a general lines agent; or
202 4. Has received the designation of chartered life
203 underwriter (CLU) from the American College of Life Underwriters
204 and been in the insurance business within the past 4 years, if
205 an applicant for a nonresident license as a life agent or health
206 agent.
207 Section 4. Subsections (1), (2), (3), and (8) of section
208 626.241, Florida Statutes, are amended to read:
209 626.241 Scope of examination.—
210 (1) Each examination for a license as an agent, customer
211 representative, or adjuster shall be of such scope as is deemed
212 by the department to be reasonably necessary to test the
213 applicant’s ability and competence and knowledge of the kinds of
214 insurance and transactions to be handled under the license
215 applied for, of the duties and responsibilities of such a
216 licensee, and of the pertinent provisions of the laws of this
217 state.
218 (2) Examinations given applicants for license as a general
219 lines agent or customer representative shall cover all property,
220 casualty, and surety insurances, except as provided in
221 subsection (5) relative to limited licenses.
222 (3) Examinations given applicants for a life agent’s
223 license shall cover life insurance, annuities, and variable
224 contracts annuities.
225 (8) An examination for licensure as a personal lines agent
226 shall consist of 100 questions and shall be limited in scope to
227 the kinds of business transacted under such license.
228 Section 5. Section 626.2817, Florida Statutes, is amended
229 to read:
230 626.2817 Regulation of course providers, instructors, and
231 school officials, and monitor groups involved in prelicensure
232 education for insurance agents and other licensees.—
233 (1) Any course provider, instructor, or school official, or
234 monitor group must be approved by and registered with the
235 department before offering prelicensure education courses for
236 insurance agents and other licensees.
237 (2) The department shall adopt rules establishing standards
238 for the approval, registration, discipline, or removal from
239 registration of course providers, instructors, and school
240 officials, and monitor groups. The standards must be designed to
241 ensure that such persons have the knowledge, competence, and
242 integrity to fulfill the educational objectives of the
243 prelicensure requirements of this chapter and chapter 648 and to
244 assure that insurance agents and licensees are competent to
245 engage in the activities authorized under the license.
246 (3) A course provider shall not grant completion credit to
247 any student who has not completed at least 75 percent of the
248 required course hours of a department approved prelicensure
249 course.
250 (4) The department shall adopt rules to establish a process
251 for determining compliance with the prelicensure requirements of
252 this chapter and chapter 648. The department shall adopt rules
253 prescribing the forms necessary to administer the prelicensure
254 requirements.
255 Section 6. Subsection (1) of section 626.311, Florida
256 Statutes, is amended to read:
257 626.311 Scope of license.—
258 (1) Except as to personal lines agents and limited
259 licenses, a general lines agent or customer representative shall
260 qualify for all property, marine, casualty, and surety lines
261 except bail bonds which require a separate license under chapter
262 648. The license of a general lines agent may also covers cover
263 health insurance if health insurance is included in the agent’s
264 appointment by an insurer as to which the licensee is also
265 appointed as agent for property or casualty or surety insurance.
266 The license of a customer representative shall provide, in
267 substance, that it covers all of such classes of insurance that
268 his or her appointing general lines agent or agency is currently
269 so authorized to transact under the general lines agent’s
270 license and appointments. No such license shall be issued
271 limited to particular classes of insurance except for bail bonds
272 which require a separate license under chapter 648 or for
273 personal lines agents. Personal lines agents are limited to
274 transacting business related to property and casualty insurance
275 sold to individuals and families for noncommercial purposes.
276 Section 7. Subsections (1) through (5) of section 626.732,
277 Florida Statutes, are amended to read:
278 626.732 Requirement as to knowledge, experience, or
279 instruction.—
280 (1) Except as provided in subsection (4), an applicant for
281 a license as a general lines agent, except for a chartered
282 property and casualty underwriter (CPCU), may not be qualified
283 or licensed unless, within the 4 years immediately preceding the
284 date the application for license is filed with the department,
285 the applicant has:
286 (a) Taught or successfully completed 200 hours of
287 coursework in property, casualty, surety, health, and marine
288 insurance approved by the department classroom courses in
289 insurance, 3 hours of which must be on the subject matter of
290 ethics, at a school, college, or extension division thereof,
291 approved by the department;
292 (b) Completed a correspondence course in insurance, 3 hours
293 of which must be on the subject matter of ethics, which is
294 regularly offered by accredited institutions of higher learning
295 in this state or extensions thereof and approved by the
296 department, and have at least 6 months of responsible insurance
297 duties as a substantially full-time bona fide employee in all
298 lines of property and casualty insurance set forth in the
299 definition of general lines agent under s. 626.015;
300 (b)(c) Completed at least 1 year in responsible insurance
301 duties as a substantially full-time bona fide employee in all
302 lines of property and casualty insurance as set forth in the
303 definition of a general lines agent under s. 626.015, but
304 without the education requirement described in paragraph (a) or
305 paragraph (b); or
306 (c)(d) Completed at least 1 year of responsible insurance
307 duties as a licensed and appointed customer representative,
308 service representative, or personal lines agent or limited
309 customer representative in commercial or personal lines of
310 property and casualty insurance and 40 hours of coursework
311 classroom courses approved by the department covering the areas
312 of property, casualty, surety, health, and marine insurance; or
313 (e) Completed at least 1 year of responsible insurance
314 duties as a licensed and appointed service representative in
315 commercial or personal lines of property and casualty insurance
316 and 80 hours of classroom courses approved by the department
317 covering the areas of property, casualty, surety, health, and
318 marine insurance.
319 (2) Except as provided under subsection (4), an applicant
320 for a license as a personal lines agent, except for a chartered
321 property and casualty underwriter (CPCU), may not be qualified
322 or licensed unless, within the 4 years immediately preceding the
323 date the application for license is filed with the department,
324 the applicant has:
325 (a) Taught or successfully completed 60 hours of coursework
326 in property, casualty, and inland marine insurance approved by
327 the department classroom courses in insurance, 3 hours of which
328 must be on the subject matter of ethics, at a school, college,
329 or extension division thereof, approved by the department. To
330 qualify for licensure, the applicant must complete a total of 52
331 hours of classroom courses in insurance;
332 (b) Completed a correspondence course in insurance, 3 hours
333 of which must be on the subject matter of ethics, which is
334 regularly offered by accredited institutions of higher learning
335 in this state or extensions thereof and approved by the
336 department, and completed at least 3 months of responsible
337 insurance duties as a substantially full-time employee in the
338 area of property and casualty insurance sold to individuals and
339 families for noncommercial purposes;
340 (b)(c) Completed at least 6 months of responsible insurance
341 duties as a substantially full-time employee in the area of
342 property and casualty insurance sold to individuals and families
343 for noncommercial purposes, but without the education
344 requirement described in paragraph (a) or paragraph (b); or
345 (c)(d) Completed at least 6 months of responsible insurance
346 duties as a licensed and appointed customer representative, or
347 limited customer representative, or service representative in
348 property and casualty insurance sold to individuals and families
349 for noncommercial purposes and 20 hours of classroom courses
350 approved by the department which are related to property and
351 casualty insurance sold to individuals and families for
352 noncommercial purposes;
353 (e) Completed at least 6 months of responsible insurance
354 duties as a licensed and appointed service representative in
355 property and casualty insurance sold to individuals and families
356 for noncommercial purposes and 40 hours of classroom courses
357 approved by the department related to property and casualty
358 insurance sold to individuals and families for noncommercial
359 purposes; or
360 (f) Completed at least 3 years of responsible duties as a
361 licensed and appointed customer representative in property and
362 casualty insurance sold to individuals and families for
363 noncommercial purposes.
364 (3) If an applicant’s qualifications as required under
365 subsection (1) or subsection (2) are based in part upon periods
366 of employment in responsible insurance duties, the applicant
367 shall submit with the license application, on a form prescribed
368 by the department, an attestation affidavit of his or her
369 employment employer setting forth the period of such employment,
370 that the employment was substantially full-time, and giving a
371 brief abstract of the nature of the duties performed by the
372 applicant.
373 (4) An individual who was or became qualified to sit for an
374 agent’s, customer representative’s, or adjuster’s examination at
375 or during the time he or she was employed by the department or
376 office and who, while so employed, was employed in responsible
377 insurance duties as a full-time bona fide employee may take an
378 examination if application for such examination is made within 4
379 years 90 days after the date of termination of employment with
380 the department or office.
381 (5) Classroom and correspondence Courses under subsections
382 (1) and (2) must include instruction on the subject matter of
383 unauthorized entities engaging in the business of insurance. The
384 scope of the topic of unauthorized entities must include the
385 Florida Nonprofit Multiple-Employer Welfare Arrangement Act and
386 the Employee Retirement Income Security Act, 29 U.S.C. ss. 1001
387 et seq., as it relates to the provision of health insurance by
388 employers and the regulation thereof.
389 Section 8. Subsections (3) and (7) of section 626.7351,
390 Florida Statutes, are amended to read:
391 626.7351 Qualifications for customer representative’s
392 license.—The department shall not grant or issue a license as
393 customer representative to any individual found by it to be
394 untrustworthy or incompetent, or who does not meet each of the
395 following qualifications:
396 (3) Within 4 the 2 years next preceding the date that the
397 application for license was filed with the department, the
398 applicant has earned the designation of Accredited Advisor in
399 Insurance (AAI), Associate in General Insurance (AINS), or
400 Accredited Customer Service Representative (ACSR) from the
401 Insurance Institute of America; the designation of Certified
402 Insurance Counselor (CIC) from the Society of Certified
403 Insurance Service Counselors; the designation of Certified
404 Professional Service Representative (CPSR) from the National
405 Foundation for CPSRs; the designation of Certified Insurance
406 Service Representative (CISR) from the Society of Certified
407 Insurance Service Representatives; the designation of Certified
408 Insurance Representative (CIR) from All-Lines Training; the
409 designation of Professional Customer Service Representative
410 (PCSR) from the Professional Career Institute; the designation
411 of Registered Customer Service Representative (RCSR) from a
412 regionally accredited postsecondary institution in the state
413 whose curriculum is approved by the department and includes
414 comprehensive analysis of basic property and casualty lines of
415 insurance and testing which demonstrates mastery of the subject;
416 or a degree from an accredited institution of higher learning
417 approved by the department when the degree includes a minimum of
418 9 credit hours of insurance instruction, including specific
419 instruction in the areas of property, casualty, and inland
420 marine insurance. The department shall adopt rules establishing
421 standards for the approval of curriculum completed a course in
422 insurance, 3 hours of which shall be on the subject matter of
423 ethics, approved by the department or has had at least 6 months’
424 experience in responsible insurance duties as a substantially
425 full-time employee. Courses must include instruction on the
426 subject matter of unauthorized entities engaging in the business
427 of insurance. The scope of the topic of unauthorized entities
428 shall include the Florida Nonprofit Multiple-Employer Welfare
429 Arrangement Act and the Employee Retirement Income Security Act,
430 29 U.S.C. ss. 1001 et seq., as such acts relate to the provision
431 of health insurance by employers and the regulation of such
432 insurance.
433 (7) The applicant has passed any required examination for
434 license required under s. 626.221.
435 Section 9. Subsection (3) of section 626.7354, Florida
436 Statutes, is amended to read:
437 626.7354 Customer representative’s powers; agent’s or
438 agency’s responsibility.—
439 (3) A customer representative shall be a salaried employee
440 of the agent or agency. His or her compensation shall not
441 include commissions and shall not be primarily based on
442 commissions or the production of applications, insurance, or
443 premiums.
444 Section 10. Section 626.748, Florida Statutes, is amended
445 to read:
446 626.748 Agent’s records.—Every agent transacting any
447 insurance policy must maintain in his or her office, or have
448 readily accessible by electronic or photographic means, for a
449 period of at least 5 years after policy expiration, such records
450 of policies transacted by him or her as to enable the
451 policyholders and department to obtain all necessary
452 information, including daily reports, applications, change
453 endorsements, or documents signed or initialed by the insured
454 concerning such policies.
455 Section 11. Subsection (1) of section 626.753, Florida
456 Statutes, is amended to read:
457 626.753 Sharing commissions; penalty.—
458 (1)(a) An agent may divide or share in commissions only
459 with other agents appointed and licensed to write the same kind
460 or kinds of insurance or may divide commissions with a customer
461 representative.
462 (b) This section shall not be construed to prevent the
463 payment or receipt of renewal commissions or other deferred
464 commissions or pensions to or by any person solely because such
465 person has ceased to hold a license to act as an insurance agent
466 or customer representative, and shall not prevent the payment of
467 renewal commissions or other deferred commissions to any
468 incorporated insurance agency solely because any of its
469 stockholders has ceased to hold a license to act as an insurance
470 agent or customer representative.
471 (c) A customer representative may share in commissions with
472 an agent.
473 Section 12. Section 626.7851, Florida Statutes, is amended
474 to read:
475 626.7851 Requirement as to knowledge, experience, or
476 instruction.—An No applicant for a license as a life agent,
477 except for a chartered life underwriter (CLU), may not shall be
478 qualified or licensed unless, within the 4 years immediately
479 preceding the date the application for a license is filed with
480 the department, the applicant he or she has:
481 (1) Successfully completed 40 hours of coursework approved
482 by the department classroom courses in life insurance,
483 annuities, and variable contracts. Such coursework, 3 hours of
484 which shall be on the subject matter of ethics, satisfactory to
485 the department at a school or college, or extension division
486 thereof, or other authorized course of study, approved by the
487 department. Courses must have included include instruction on
488 the subject matter of unauthorized entities engaging in the
489 business of insurance and 3 hours on the subject matter of
490 ethics, to include the Florida Nonprofit Multiple-Employer
491 Welfare Arrangement Act and the Employee Retirement Income
492 Security Act, 29 U.S.C. ss. 1001 et seq., as it relates to the
493 provision of life insurance by employers to their employees and
494 the regulation thereof;
495 (2) Successfully completed at least 60 hours of coursework
496 approved by the department in multiple areas of insurance,
497 including life insurance, annuities, and variable contracts.
498 Such coursework must have included instruction on the subject
499 matter of unauthorized entities engaging in the business of
500 insurance and 3 hours on the subject matter of ethics;
501 (3) Earned or maintained an active designation as a
502 Chartered Financial Consultant (ChFC) from the American College
503 of Financial Services or a Fellow, Life Management Institute
504 (FLMI) from the Life Management Institute a correspondence
505 course in insurance, 3 hours of which shall be on the subject
506 matter of ethics, satisfactory to the department and regularly
507 offered by accredited institutions of higher learning in this
508 state or by independent programs of study, approved by the
509 department. Courses must include instruction on the subject
510 matter of unauthorized entities engaging in the business of
511 insurance, to include the Florida Nonprofit Multiple-Employer
512 Welfare Arrangement Act and the Employee Retirement Income
513 Security Act, 29 U.S.C. ss. 1001 et seq., as it relates to the
514 provision of life insurance by employers to their employees and
515 the regulation thereof;
516 (4)(3) Held an active license in life, or life and health,
517 insurance in another state. This provision may not be used
518 utilized unless the other state grants reciprocal treatment to
519 licensees formerly licensed in Florida; or
520 (5)(4) Been employed by the department or office for at
521 least 1 year, full time in life or life and health insurance
522 regulatory matters and who was not terminated for cause, and
523 application for examination is made within 4 years 90 days after
524 the date of termination of his or her employment with the
525 department or office.
526 Section 13. Section 626.8311, Florida Statutes, is amended
527 to read:
528 626.8311 Requirement as to knowledge, experience, or
529 instruction.—An No applicant for a license as a health agent,
530 except for a chartered life underwriter (CLU), may not shall be
531 qualified or licensed unless, within the 4 years immediately
532 preceding the date the application for license is filed with the
533 department, the applicant he or she has:
534 (1) Successfully completed 40 hours of coursework approved
535 by the department classroom courses in health insurance, 3 hours
536 of which must have been shall be on the subject matter of
537 ethics, satisfactory to the department at a school or college,
538 or extension division thereof, or other authorized course of
539 study, approved by the department. Such coursework Courses must
540 have included include instruction on the subject matter of
541 unauthorized entities engaging in the business of insurance, to
542 include the Florida Nonprofit Multiple-Employer Welfare
543 Arrangement Act and the Employee Retirement Income Security Act,
544 29 U.S.C. ss. 1001 et seq., as it relates to the provision of
545 health insurance by employers to their employees and the
546 regulation thereof;
547 (2) Successfully completed at least 60 hours of coursework
548 approved by the department in multiple areas of insurance,
549 including health insurance. Such coursework must have included
550 instruction on the subject matter of unauthorized entities
551 engaging in the business of insurance and 3 hours on the subject
552 matter of ethics;
553 (3) Earned or maintained an active designation as a
554 Registered Health Underwriter (RHU), Chartered Healthcare
555 Consultant (ChHC), or Registered Employee Benefits Consultant
556 (REBC) from the American College of Financial Services; a
557 Certified Employee Benefit Specialist (CEBS) from the Wharton
558 School of the University of Pennsylvania; or a Health Insurance
559 Associate (HIA) from America’s Health Insurance Plans; a
560 correspondence course in insurance, 3 hours of which shall be on
561 the subject matter of ethics, satisfactory to the department and
562 regularly offered by accredited institutions of higher learning
563 in this state or by independent programs of study, approved by
564 the department. Courses must include instruction on the subject
565 matter of unauthorized entities engaging in the business of
566 insurance, to include the Florida Nonprofit Multiple-Employer
567 Welfare Arrangement Act and the Employee Retirement Income
568 Security Act, 29 U.S.C. ss. 1001 et seq., as it relates to the
569 provision of health insurance by employers to their employees
570 and the regulation thereof;
571 (4)(3) Held an active license in health, or life and
572 health, insurance in another state. This provision may not be
573 utilized unless the other state grants reciprocal treatment to
574 licensees formerly licensed in Florida; or
575 (5)(4) Been employed by the department or office for at
576 least 1 year, full time in health insurance regulatory matters
577 and who was not terminated for cause, and application for
578 examination is made within 4 years 90 days after the date of
579 termination of his or her employment with the department or
580 office.
581 Section 14. Section 626.931, Florida Statutes, is amended
582 to read:
583 626.931 Agent affidavit and Insurer reporting
584 requirements.—
585 (1) Each surplus lines agent shall on or before the 45th
586 day following each calendar quarter file with the Florida
587 Surplus Lines Service Office an affidavit, on forms as
588 prescribed and furnished by the Florida Surplus Lines Service
589 Office, stating that all surplus lines insurance transacted by
590 him or her during such calendar quarter has been submitted to
591 the Florida Surplus Lines Service Office as required.
592 (2) The affidavit of the surplus lines agent shall include
593 efforts made to place coverages with authorized insurers and the
594 results thereof.
595 (1)(3) Each foreign insurer accepting premiums shall, on or
596 before the end of the month following each calendar quarter,
597 file with the Florida Surplus Lines Service Office a verified
598 report of all surplus lines insurance transacted by such insurer
599 for insurance risks located in this state during such calendar
600 quarter.
601 (2)(4) Each alien insurer accepting premiums shall, on or
602 before June 30 of each year, file with the Florida Surplus Lines
603 Service Office a verified report of all surplus lines insurance
604 transacted by such insurer for insurance risks located in this
605 state during the preceding calendar year.
606 (3)(5) The department may waive the filing requirements
607 described in subsections (1) and (2) (3) and (4).
608 (4)(6) Each insurer’s report and supporting information
609 shall be in a computer-readable format as determined by the
610 Florida Surplus Lines Service Office or shall be submitted on
611 forms prescribed by the Florida Surplus Lines Service Office and
612 shall show for each applicable agent:
613 (a) A listing of all policies, certificates, cover notes,
614 or other forms of confirmation of insurance coverage or any
615 substitutions thereof or endorsements thereto and the
616 identifying number; and
617 (b) Any additional information required by the department
618 or Florida Surplus Lines Service Office.
619 Section 15. Paragraph (a) of subsection (2) of section
620 626.932, Florida Statutes, is amended to read:
621 626.932 Surplus lines tax.—
622 (2)(a) The surplus lines agent shall make payable to the
623 department the tax related to each calendar quarter’s business
624 as reported to the Florida Surplus Lines Service Office, and
625 remit the tax to the Florida Surplus Lines Service Office on or
626 before the 45th day following each calendar quarter at the same
627 time as provided for the filing of the quarterly affidavit,
628 under s. 626.931. The Florida Surplus Lines Service Office shall
629 forward to the department the taxes and any interest collected
630 pursuant to paragraph (b), within 10 days of receipt.
631 Section 16. Paragraph (d) of subsection (1) of section
632 626.935, Florida Statutes, is amended, and paragraphs (e)
633 through (i) of that subsection are redesignated as paragraphs
634 (d) through (h), respectively, to read:
635 626.935 Suspension, revocation, or refusal of surplus lines
636 agent’s license.—
637 (1) The department shall deny an application for, suspend,
638 revoke, or refuse to renew the appointment of a surplus lines
639 agent and all other licenses and appointments held by the
640 licensee under this code, on any of the following grounds:
641 (d) Failure to make and file his or her affidavit or
642 reports when due as required by s. 626.931.
643 Section 17. Subsection (1) of section 626.936, Florida
644 Statutes, is amended to read:
645 626.936 Failure to file reports or pay tax or service fee;
646 administrative penalty.—
647 (1) Any licensed surplus lines agent who neglects to file a
648 report or an affidavit in the form and within the time required
649 or provided for in the Surplus Lines Law may be fined up to $50
650 per day for each day the neglect continues, beginning the day
651 after the report or affidavit was due until the date the report
652 or affidavit is received. All sums collected under this section
653 shall be deposited into the Insurance Regulatory Trust Fund.
654 Section 18. Paragraph (o) of subsection (1) of section
655 626.9541, Florida Statutes, is amended to read:
656 626.9541 Unfair methods of competition and unfair or
657 deceptive acts or practices defined.—
658 (1) UNFAIR METHODS OF COMPETITION AND UNFAIR OR DECEPTIVE
659 ACTS.—The following are defined as unfair methods of competition
660 and unfair or deceptive acts or practices:
661 (o) Illegal dealings in premiums; excess or reduced charges
662 for insurance.—
663 1. Knowingly collecting any sum as a premium or charge for
664 insurance, which is not then provided, or is not in due course
665 to be provided, subject to acceptance of the risk by the
666 insurer, by an insurance policy issued by an insurer as
667 permitted by this code.
668 2. Knowingly collecting as a premium or charge for
669 insurance any sum in excess of or less than the premium or
670 charge applicable to such insurance, in accordance with the
671 applicable classifications and rates as filed with and approved
672 by the office, and as specified in the policy; or, in cases when
673 classifications, premiums, or rates are not required by this
674 code to be so filed and approved, premiums and charges collected
675 from a Florida resident in excess of or less than those
676 specified in the policy and as fixed by the insurer.
677 Notwithstanding any other provision of law, this provision shall
678 not be deemed to prohibit the charging and collection, by
679 surplus lines agents licensed under part VIII of this chapter,
680 of the amount of applicable state and federal taxes, or fees as
681 authorized by s. 626.916(4), in addition to the premium required
682 by the insurer or the charging and collection, by licensed
683 agents, of the exact amount of any discount or other such fee
684 charged by a credit card facility in connection with the use of
685 a credit card, as authorized by subparagraph (q)3., in addition
686 to the premium required by the insurer. This subparagraph shall
687 not be construed to prohibit collection of a premium for a
688 universal life or a variable or indeterminate value insurance
689 policy made in accordance with the terms of the contract.
690 3.a. Imposing or requesting an additional premium for a
691 policy of motor vehicle liability, personal injury protection,
692 medical payment, or collision insurance or any combination
693 thereof or refusing to renew the policy solely because the
694 insured was involved in a motor vehicle accident unless the
695 insurer’s file contains information from which the insurer in
696 good faith determines that the insured was substantially at
697 fault in the accident.
698 b. An insurer which imposes and collects such a surcharge
699 or which refuses to renew such policy shall, in conjunction with
700 the notice of premium due or notice of nonrenewal, notify the
701 named insured that he or she is entitled to reimbursement of
702 such amount or renewal of the policy under the conditions listed
703 below and will subsequently reimburse him or her or renew the
704 policy, if the named insured demonstrates that the operator
705 involved in the accident was:
706 (I) Lawfully parked;
707 (II) Reimbursed by, or on behalf of, a person responsible
708 for the accident or has a judgment against such person;
709 (III) Struck in the rear by another vehicle headed in the
710 same direction and was not convicted of a moving traffic
711 violation in connection with the accident;
712 (IV) Hit by a “hit-and-run” driver, if the accident was
713 reported to the proper authorities within 24 hours after
714 discovering the accident;
715 (V) Not convicted of a moving traffic violation in
716 connection with the accident, but the operator of the other
717 automobile involved in such accident was convicted of a moving
718 traffic violation;
719 (VI) Finally adjudicated not to be liable by a court of
720 competent jurisdiction;
721 (VII) In receipt of a traffic citation which was dismissed
722 or nolle prossed; or
723 (VIII) Not at fault as evidenced by a written statement
724 from the insured establishing facts demonstrating lack of fault
725 which are not rebutted by information in the insurer’s file from
726 which the insurer in good faith determines that the insured was
727 substantially at fault.
728 c. In addition to the other provisions of this
729 subparagraph, an insurer may not fail to renew a policy if the
730 insured has had only one accident in which he or she was at
731 fault within the current 3-year period. However, an insurer may
732 nonrenew a policy for reasons other than accidents in accordance
733 with s. 627.728. This subparagraph does not prohibit nonrenewal
734 of a policy under which the insured has had three or more
735 accidents, regardless of fault, during the most recent 3-year
736 period.
737 4. Imposing or requesting an additional premium for, or
738 refusing to renew, a policy for motor vehicle insurance solely
739 because the insured committed a noncriminal traffic infraction
740 as described in s. 318.14 unless the infraction is:
741 a. A second infraction committed within an 18-month period,
742 or a third or subsequent infraction committed within a 36-month
743 period.
744 b. A violation of s. 316.183, when such violation is a
745 result of exceeding the lawful speed limit by more than 15 miles
746 per hour.
747 5. Upon the request of the insured, the insurer and
748 licensed agent shall supply to the insured the complete proof of
749 fault or other criteria which justifies the additional charge or
750 cancellation.
751 6. No insurer shall impose or request an additional premium
752 for motor vehicle insurance, cancel or refuse to issue a policy,
753 or refuse to renew a policy because the insured or the applicant
754 is a handicapped or physically disabled person, so long as such
755 handicap or physical disability does not substantially impair
756 such person’s mechanically assisted driving ability.
757 7. No insurer may cancel or otherwise terminate any
758 insurance contract or coverage, or require execution of a
759 consent to rate endorsement, during the stated policy term for
760 the purpose of offering to issue, or issuing, a similar or
761 identical contract or coverage to the same insured with the same
762 exposure at a higher premium rate or continuing an existing
763 contract or coverage with the same exposure at an increased
764 premium.
765 8. No insurer may issue a nonrenewal notice on any
766 insurance contract or coverage, or require execution of a
767 consent to rate endorsement, for the purpose of offering to
768 issue, or issuing, a similar or identical contract or coverage
769 to the same insured at a higher premium rate or continuing an
770 existing contract or coverage at an increased premium without
771 meeting any applicable notice requirements.
772 9. No insurer shall, with respect to premiums charged for
773 motor vehicle insurance, unfairly discriminate solely on the
774 basis of age, sex, marital status, or scholastic achievement.
775 10. Imposing or requesting an additional premium for motor
776 vehicle comprehensive or uninsured motorist coverage solely
777 because the insured was involved in a motor vehicle accident or
778 was convicted of a moving traffic violation.
779 11. No insurer shall cancel or issue a nonrenewal notice on
780 any insurance policy or contract without complying with any
781 applicable cancellation or nonrenewal provision required under
782 the Florida Insurance Code.
783 12. No insurer shall impose or request an additional
784 premium, cancel a policy, or issue a nonrenewal notice on any
785 insurance policy or contract because of any traffic infraction
786 when adjudication has been withheld and no points have been
787 assessed pursuant to s. 318.14(9) and (10). However, this
788 subparagraph does not apply to traffic infractions involving
789 accidents in which the insurer has incurred a loss due to the
790 fault of the insured.
791 Section 19. Section 627.4553, Florida Statutes, is amended
792 to read:
793 627.4553 Recommendations to surrender.—
794 (1) If an insurance agent recommends the surrender of an
795 annuity contract or life insurance policy containing a cash
796 value and does not recommend that the proceeds from the
797 surrender be used to fund or purchase another annuity contract
798 or life insurance policy, before execution of the surrender, the
799 insurance agent, or insurance company if no agent is involved,
800 shall provide written , on a form that satisfies the
801 requirements of the rule adopted by the department, information
802 relating to the contract annuity or policy to be surrendered.
803 Such information must shall include, but is not limited to, the
804 amount of any estimated surrender charge, the loss of any
805 minimum interest rate guarantees, the possibility amount of any
806 tax consequences resulting from the transaction, the estimated
807 amount of any forfeited death benefit, and a description of the
808 value of any other investment performance guarantees being
809 forfeited as a result of the transaction. The agent shall
810 maintain a copy of the information and the date that the
811 information was provided to the owner. This section also applies
812 to a person performing insurance agent activities pursuant to an
813 exemption from licensure under this part.
814 (2) For purposes of this section, the term “surrender”
815 means the voluntary surrender at the request of the owner of the
816 annuity contract or life insurance policy before its maturity
817 date in exchange for the contract’s or policy’s current cash
818 surrender value which results in the surrender or termination of
819 the contract or policy. The term excludes any involuntary
820 termination that is otherwise required by the terms of the
821 contract or policy and all transactions other than a surrender,
822 such as the maturity of the contract or policy, a contract or
823 policy loan, a lapse for nonpayment of premium, a withdrawal of
824 the contract or policy values, an annuitization, or the exercise
825 of reduced paid-up or extended-term nonforfeiture options.
826 Section 20. Subsection (2) of section 631.341, Florida
827 Statutes, is amended to read:
828 631.341 Notice of insolvency to policyholders by insurer,
829 general agent, or agent.—
830 (2) Unless, within 15 days subsequent to the date of such
831 notice, all agents referred to in subsection (1) have either
832 replaced or reinsured in a solvent authorized insurer the
833 insurance coverages placed by or through such agent in the
834 delinquent insurer, such agents shall then, by registered or
835 certified mail, or by e-mail with delivery receipt required,
836 send to the last known address of any policyholder a written
837 notice of the insolvency of the delinquent insurer.
838 Section 21. This act shall take effect July 1, 2015.
