Bill Text: FL S1260 | 2014 | Regular Session | Comm Sub
NOTE: There are more recent revisions of this legislation. Read Latest Draft
Bill Title: Insurance
Spectrum: Bipartisan Bill
Status: (Failed) 2014-05-01 - Laid on Table, companion bill(s) passed, see HB 291 (Ch. 2014-111), CS/CS/HB 321 (Ch. 2014-112), CS/CS/HB 633 (Ch. 2014-123), CS/HB 785 (Ch. 2014-131), CS/CS/HB 7005 (Ch. 2014-216), CS/CS/CS/SB 542 (Ch. 2014-80), CS/CS/SB 708 (Ch. 2014-86), CS/CS/SB 1308 (Ch. 2014-101), CS/CS/SB 1344 (Ch. 2014-103), CS/CS/SB 1672 (Ch. 2014-104) [S1260 Detail]
Download: Florida-2014-S1260-Comm_Sub.html
Bill Title: Insurance
Spectrum: Bipartisan Bill
Status: (Failed) 2014-05-01 - Laid on Table, companion bill(s) passed, see HB 291 (Ch. 2014-111), CS/CS/HB 321 (Ch. 2014-112), CS/CS/HB 633 (Ch. 2014-123), CS/HB 785 (Ch. 2014-131), CS/CS/HB 7005 (Ch. 2014-216), CS/CS/CS/SB 542 (Ch. 2014-80), CS/CS/SB 708 (Ch. 2014-86), CS/CS/SB 1308 (Ch. 2014-101), CS/CS/SB 1344 (Ch. 2014-103), CS/CS/SB 1672 (Ch. 2014-104) [S1260 Detail]
Download: Florida-2014-S1260-Comm_Sub.html
Florida Senate - 2014 CS for SB 1260 By the Committee on Banking and Insurance; and Senators Brandes and Soto 597-02850A-14 20141260c1 1 A bill to be entitled 2 An act relating to insurance; amending s. 624.501, 3 F.S.; revising original appointment and renewal fees 4 related to certain insurance representatives; amending 5 s. 626.015, F.S.; defining the term “unaffiliated 6 insurance agent”; amending s. 626.0428, F.S.; 7 requiring a branch place of business to have an agent 8 in charge; authorizing an agent to be in charge of 9 more than one branch office under certain 10 circumstances; providing requirements relating to the 11 designation of an agent in charge; prohibiting an 12 insurance agency from conducting insurance business at 13 a location without a designated agent in charge; 14 providing that the agent in charge is accountable for 15 misconduct and violations committed by the licensee 16 and any person under his or her supervision; amending 17 s. 626.112, F.S.; prohibiting limited customer 18 representative licenses from being issued after a 19 specified date; providing licensure exemptions that 20 allow specified individuals or entities to conduct 21 insurance business at specified locations under 22 certain circumstances; revising licensure requirements 23 and penalties with respect to registered insurance 24 agencies; providing that the registration of an 25 approved registered insurance agency automatically 26 converts to an insurance agency license on a specified 27 date; amending s. 626.172, F.S.; revising requirements 28 relating to applications for insurance agency 29 licenses; conforming provisions to changes made by the 30 act; amending s. 626.311, F.S.; limiting the types of 31 business that may be transacted by certain agents; 32 amending s. 626.321, F.S.; providing that a limited 33 license to offer motor vehicle rental insurance issued 34 to a business that rents or leases motor vehicles 35 encompasses the employees of such business; amending 36 s. 626.382, F.S.; providing that an insurance agency 37 license continues in force until canceled, suspended, 38 revoked, terminated, or expired; amending s. 626.601, 39 F.S.; revising terminology relating to investigations 40 conducted by the Department of Financial Services and 41 the Office of Insurance Regulation with respect to 42 individuals and entities involved in the insurance 43 industry; revising a confidentiality provision; 44 repealing s. 626.747, F.S., relating to branch 45 agencies, agents in charge, and the payment of 46 additional county tax under certain circumstances; 47 amending s. 626.8411, F.S.; conforming a cross 48 reference; amending s. 626.854, F.S.; deleting the 49 requirement that a 48 hours’ notice be provided before 50 scheduling an onsite inspection of insured property; 51 conforming a cross-reference; amending s. 626.8805, 52 F.S.; revising insurance administrator application 53 requirements; amending s. 626.8817, F.S.; authorizing 54 an insurer’s designee to provide certain coverage 55 information to an insurance administrator; authorizing 56 an insurer to subcontract the review of an insurance 57 administrator; amending s. 626.882, F.S.; prohibiting 58 a person from acting as an insurance administrator 59 without a specific written agreement; amending s. 60 626.883, F.S.; requiring an insurance administrator to 61 furnish fiduciary account records to an insurer; 62 requiring administrator withdrawals from a fiduciary 63 account to be made according to a specific written 64 agreement; providing that an insurer’s designee may 65 authorize payment of claims; amending s. 626.884, 66 F.S.; revising an insurer’s right of access to certain 67 administrator records; amending s. 626.89, F.S.; 68 revising the deadline for filing certain financial 69 statements; deleting provisions allowing an extension 70 for administrator to submit certain financial 71 statements; amending s. 626.931, F.S.; deleting 72 provisions requiring a surplus lines agent to file a 73 quarterly affidavit with the Florida Surplus Lines 74 Service Office; amending s. 626.932, F.S.; revising 75 the due date of surplus lines tax; amending ss. 76 626.935 and 626.936, F.S.; conforming provisions to 77 changes made by the act; amending s. 626.9541, F.S.; 78 revising provisions for unfair methods of competition 79 and unfair or deceptive acts relating to conducting 80 certain insurance transactions through credit card 81 facilities; amending s. 627.062, F.S.; authorizing the 82 Office of Insurance Regulation to use a straight 83 average of model results or output ranges to estimate 84 hurricane losses when determining whether the rates in 85 a rate filing are excessive, inadequate, or unfairly 86 discriminatory; amending s. 627.0628, F.S.; increasing 87 the length of time during which an insurer must adhere 88 to certain findings made by the Commission on 89 Hurricane Loss Projection Methodology with respect to 90 certain methods, principles, standards, models, or 91 output ranges used in a rate filing; providing that 92 the requirement to adhere to such findings does not 93 limit an insurer from using straight averages of model 94 results or output ranges under specified 95 circumstances; amending s. 627.0651, F.S.; revising 96 provisions for making and use of rates for motor 97 vehicle insurance; amending s. 627.072, F.S.; 98 authorizing retrospective rating plans relating to 99 workers’ compensation and employer’s liability 100 insurance to allow negotiations between certain 101 employers and insurers with respect to rating factors 102 used to calculate premiums; amending ss. 627.281, 103 F.S.; conforming a cross-reference; amending s. 104 627.311, F.S.; providing that certain dividends may be 105 retained by the joint underwriting plan for future 106 use; amending s. 627.3518, F.S.; conforming a cross 107 reference; repealing s. 627.3519, F.S., relating to an 108 annual report on the aggregate report of maximum 109 losses of the Florida Hurricane Catastrophe Fund and 110 Citizens Property Insurance Corporation; amending s. 111 627.409, F.S.; providing that a claim for residential 112 property insurance may not be denied based on certain 113 credit information; amending s. 627.4133, F.S.; 114 extending the period for prior notice required with 115 respect to the nonrenewal, cancellation, or 116 termination of certain insurance policies; deleting 117 certain provisions that require extended periods of 118 prior notice with respect to the nonrenewal, 119 cancellation, or termination of certain insurance 120 policies; prohibiting the cancellation of certain 121 policies that have been in effect for a specified 122 amount of time, except under certain circumstances; 123 prohibiting the cancellation of a policy or contract 124 that has been in effect for a specified amount of time 125 based on certain credit information; amending s. 126 627.4137, F.S.; adding licensed company adjusters to 127 the list of persons who may respond to a claimant’s 128 written request for information relating to liability 129 insurance coverage; amending s. 627.421, F.S.; 130 authorizing a policyholder of personal lines insurance 131 to affirmatively elect delivery of policy documents by 132 electronic means; amending s. 627.43141, F.S.; 133 authorizing a notice of change in policy terms to be 134 sent in a separate mailing to an insured under certain 135 circumstances; requiring an insurer to provide such 136 notice to the insured’s insurance agent; creating s. 137 627.4553, F.S.; providing requirements for the 138 recommendation to surrender an annuity or life 139 insurance policy; amending s. 627.7015, F.S.; revising 140 the rulemaking authority of the department with 141 respect to qualifications and specified types of 142 penalties covered under the property insurance 143 mediation program; creating s. 627.70151, F.S.; 144 providing criteria for an insurer or policyholder to 145 challenge the impartiality of a loss appraisal umpire 146 for purposes of disqualifying such umpire; amending s. 147 627.706, F.S.; revising the definition of the term 148 “neutral evaluator”; amending s. 627.7074, F.S.; 149 revising notification requirements for participation 150 in the neutral evaluation program; providing grounds 151 for the department to deny an application, or suspend 152 or revoke certification, of a neutral evaluator; 153 requiring the department to adopt rules relating to 154 certification of neutral evaluators; amending s. 155 627.711, F.S.; revising verification requirements for 156 uniform mitigation verification forms; amending s. 157 627.7283, F.S.; providing for the electronic transfer 158 of unearned premiums returned when a policy is 159 cancelled; amending s. 627.736, F.S.; revising the 160 time period for applicability of certain Medicare fee 161 schedules or payment limitations; amending s. 627.744, 162 F.S.; revising preinsurance inspection requirements 163 for private passenger motor vehicles; amending s. 164 627.745, F.S.; revising qualifications for approval as 165 a mediator by the department; providing grounds for 166 the department to deny an application, or suspend or 167 revoke approval of a mediator or certification of a 168 neutral evaluator; authorizing the department to adopt 169 rules; amending s. 627.782, F.S.; revising the date by 170 which title insurance agencies and certain insurers 171 must annually submit specified information to the 172 Office of Insurance Regulation; amending s. 628.461, 173 F.S.; revising filing requirements relating to the 174 acquisition of controlling stock; revising the amount 175 of outstanding voting securities of a domestic stock 176 insurer or a controlling company that a person is 177 prohibited from acquiring unless certain requirements 178 have been met; prohibiting persons acquiring a certain 179 percentage of voting securities from acquiring certain 180 securities; providing that a presumption of control 181 may be rebutted by filing a disclaimer of control; 182 deleting a definition; amending ss. 631.717 and 183 631.734, F.S.; transferring a provision relating to 184 the obligations of the Florida Life and Health 185 Insurance Guaranty Association; amending s. 634.406, 186 F.S.; revising criteria authorizing premiums of 187 certain service warranty associations to exceed their 188 specified net assets limitations; revising 189 requirements relating to contractual liability 190 policies that insure warranty associations; providing 191 effective dates. 192 193 Be It Enacted by the Legislature of the State of Florida: 194 195 Section 1. Paragraphs (a) and (c) of subsection (6) and 196 subsections (7) and (8) of section 624.501, Florida Statutes, 197 are amended to read: 198 624.501 Filing, license, appointment, and miscellaneous 199 fees.—The department, commission, or office, as appropriate, 200 shall collect in advance, and persons so served shall pay to it 201 in advance, fees, licenses, and miscellaneous charges as 202 follows: 203 (6) Insurance representatives, property, marine, casualty, 204 and surety insurance. 205 (a) Agent’s original appointment and biennial renewal or 206 continuation thereof, each insurer or unaffiliated agent making 207 an appointment: 208 Appointment fee...........................................$42.00 209 State tax..................................................12.00 210 County tax..................................................6.00 211 Total.....................................................$60.00 212 (c) Nonresident agent’s original appointment and biennial 213 renewal or continuation thereof, appointment fee, each insurer 214 or unaffiliated agent making an appointment...............$60.00 215 (7) Life insurance agents. 216 (a) Agent’s original appointment and biennial renewal or 217 continuation thereof, each insurer or unaffiliated agent making 218 an appointment: 219 Appointment fee...........................................$42.00 220 State tax..................................................12.00 221 County tax..................................................6.00 222 Total.....................................................$60.00 223 (b) Nonresident agent’s original appointment and biennial 224 renewal or continuation thereof, appointment fee, each insurer 225 or unaffiliated agent making an appointment...............$60.00 226 (8) Health insurance agents. 227 (a) Agent’s original appointment and biennial renewal or 228 continuation thereof, each insurer or unaffiliated agent making 229 an appointment: 230 Appointment fee...........................................$42.00 231 State tax..................................................12.00 232 County tax..................................................6.00 233 Total.....................................................$60.00 234 (b) Nonresident agent’s original appointment and biennial 235 renewal or continuation thereof, appointment fee, each insurer 236 or unaffiliated agent making an appointment...............$60.00 237 Section 2. Present subsection (18) of section 626.015, 238 Florida Statutes, is renumbered as subsection (19), and a new 239 subsection (18) is added to that section, to read: 240 626.015 Definitions.—As used in this part: 241 (18) “Unaffiliated insurance agent” means a licensed 242 insurance agent, except a limited lines agent, who is self 243 appointed and who practices as an independent consultant in the 244 business of analyzing or abstracting insurance policies, 245 providing insurance advice or counseling, or making specific 246 recommendations or comparisons of insurance products for a fee 247 established in advance by written contract signed by the 248 parties. An unaffiliated insurance agent may not be affiliated 249 with an insurer, insurer-appointed insurance agent, or insurance 250 agency contracted with or employing insurer-appointed insurance 251 agents. 252 Section 3. Effective January 1, 2015, section 626.0428, 253 Florida Statutes, is amended to read: 254 626.0428 Agency personnel powers, duties, and limitations.— 255 (1) An individual employed by an agent or agency on salary 256 who devotes full time to clerical work, with incidental taking 257 of insurance applications or quoting or receiving premiums on 258 incoming inquiries in the office of the agent or agency, is not 259 deemed to be an agent or customer representative if his or her 260 compensation does not include in whole or in part any 261 commissions on such business and is not related to the 262 production of applications, insurance, or premiums. 263 (2) An employee or authorized representative located at a 264 designated branch of an agent or agency may not bind insurance 265 coverage unless licensed and appointed as an agent or customer 266 representative. 267 (3) An employee or authorized representative of an agent or 268 agency may not initiate contact with any person for the purpose 269 of soliciting insurance unless licensed and appointed as an 270 agent or customer representative. As to title insurance, an 271 employee of an agent or agency may not initiate contact with any 272 individual proposed insured for the purpose of soliciting title 273 insurance unless licensed as a title insurance agent or exempt 274 from such licensure pursuant to s. 626.8417(4). 275 (4)(a) Each place of business established by an agent or 276 agency, firm, corporation, or association must be in the active 277 full-time charge of a licensed and appointed agent holding the 278 required agent licenses to transact the lines of insurance being 279 handled at the location. 280 (b) Notwithstanding paragraph (a), the licensed agent in 281 charge of an insurance agency may also be the agent in charge of 282 additional branch office locations of the agency if insurance 283 activities requiring licensure as an insurance agent do not 284 occur at any location when an agent is not physically present 285 and unlicensed employees at the location do not engage in 286 insurance activities requiring licensure as an insurance agent 287 or customer representative. 288 (c) An insurance agency and each branch place of business 289 of an insurance agency shall designate an agent in charge and 290 file the name and license number of the agent in charge and the 291 physical address of the insurance agency location with the 292 department and the department’s website. The designation of the 293 agent in charge may be changed at the option of the agency. A 294 change of the designated agent in charge is effective upon 295 notice to the department. Notice to the department must be 296 provided within 30 days after such change. 297 (d) An insurance agency location may not conduct the 298 business of insurance unless an agent in charge is designated by 299 and providing services to the agency at all times. If the agent 300 in charge designated with the department ends his or her 301 affiliation with the agency for any reason and the agency fails 302 to designate another agent in charge within 30 days as provided 303 in paragraph (c) and such failure continues for 90 days, the 304 agency license automatically expires on the 91st day after the 305 date the designated agent in charge ended his or her affiliation 306 with the agency. 307 (e) For purposes of this subsection, an “agent in charge” 308 is the licensed and appointed agent responsible for the 309 supervision of all individuals within an insurance agency 310 location, regardless of whether the agent in charge handles a 311 specific transaction or deals with the general public in the 312 solicitation or negotiation of insurance contracts or the 313 collection or accounting of money. 314 (f) An agent in charge of an insurance agency is 315 accountable for the wrongful acts, misconduct, or violations of 316 this code committed by the licensee or by any person under his 317 or her supervision while acting on behalf of the agency. 318 However, an agent in charge is not criminally liable for any act 319 unless the agent in charge personally committed the act or knew 320 or should have known of the act and of the facts constituting a 321 violation of this code. 322 Section 4. Paragraph (b) of subsection (1) and subsection 323 (7) of section 626.112, Florida Statutes, is amended to read: 324 626.112 License and appointment required; agents, customer 325 representatives, adjusters, insurance agencies, service 326 representatives, managing general agents.— 327 (1) 328 (b) Except as provided in subsection (6) or in applicable 329 department rules, and in addition to other conduct described in 330 this chapter with respect to particular types of agents, a 331 license as an insurance agent, service representative, customer 332 representative, or limited customer representative is required 333 in order to engage in the solicitation of insurance. Effective 334 October 1, 2014, limited customer representative licenses may 335 not be issued. For purposes of this requirement, as applicable 336 toany ofthe license types described in this section, the 337 solicitation of insurance is the attempt to persuade any person 338 to purchase an insurance product by: 339 1. Describing the benefits or terms of insurance coverage, 340 including premiums or rates of return; 341 2. Distributing an invitation to contract to prospective 342 purchasers; 343 3. Making general or specific recommendations as to 344 insurance products; 345 4. Completing orders or applications for insurance 346 products; 347 5. Comparing insurance products, advising as to insurance 348 matters, or interpreting policies or coverages; or 349 6. Offering or attempting to negotiate on behalf of another 350 person a viatical settlement contract as defined in s. 626.9911. 351 352 However, an employee leasing company licensed underpursuant to353 chapter 468 which is seeking to enter into a contract with an 354 employer that identifies products and services offered to 355 employees may deliver proposals for the purchase of employee 356 leasing services to prospective clients of the employee leasing 357 company setting forth the terms and conditions of doing 358 business; classify employees as permitted by s. 468.529; collect 359 information from prospective clients and other sources as 360 necessary to perform due diligence on the prospective client and 361 to prepare a proposal for services; provide and receive 362 enrollment forms, plans, and other documents; and discuss or 363 explain in general terms the conditions, limitations, options, 364 or exclusions of insurance benefit plans available to the client 365 or employees of the employee leasing company were the client to 366 contract with the employee leasing company. Any advertising 367 materials or other documents describing specific insurance 368 coverages must identify and be from a licensed insurer or its 369 licensed agent or a licensed and appointed agent employed by the 370 employee leasing company. The employee leasing company may not 371 advise or inform the prospective business client or individual 372 employees of specific coverage provisions, exclusions, or 373 limitations of particular plans. As to clients for which the 374 employee leasing company is providing services pursuant to s. 375 468.525(4), the employee leasing company may engage in 376 activities permitted by ss. 626.7315, 626.7845, and 626.8305, 377 subject to the restrictions specified in those sections. If a 378 prospective client requests more specific information concerning 379 the insurance provided by the employee leasing company, the 380 employee leasing company must refer the prospective business 381 client to the insurer or its licensed agent or to a licensed and 382 appointed agent employed by the employee leasing company. 383 Section 5. Effective January 1, 2015, subsection (7) of 384 section 626.112, Florida Statutes, is amended to read: 385 626.112 License and appointment required; agents, customer 386 representatives, adjusters, insurance agencies, service 387 representatives, managing general agents.— 388 (7)(a) AnEffective October 1, 2006, noindividual, firm, 389 partnership, corporation, association, oranyother entity may 390 notshallact in its own name or under a trade name, directly or 391 indirectly, as an insurance agency,unless it possessescomplies392with s. 626.172 with respect to possessingan insurance agency 393 license issued pursuant to s. 626.172 for each place of business 394 at which it engages inanyactivity thatwhichmay be performed 395 only by a licensed insurance agent. However, an insurance agency 396 that is owned and operated by a single licensed agent conducting 397 business in his or her individual name and not employing or 398 otherwise using the services of or appointing other licensees is 399 exempt from the agency licensing requirements of this 400 subsection. 401 (b) A branch place of business which is established by a 402 licensed agency is considered a branch agency and is not 403 required to be licensed if it transacts business under the same 404 name and federal tax identification number as the licensed 405 agency, has designated a licensed agent in charge of the 406 location as required by s. 626.0428, and has submitted the 407 address and telephone number of the location to the department 408 for inclusion in the licensing record of the licensed agency 409 within 30 days after insurance transactions begin at the 410 locationEach agency engaged in business in this state before411January 1, 2003, which is wholly owned by insurance agents412currently licensed and appointed under this chapter, each413incorporated agency whose voting shares are traded on a414securities exchange, each agency designated and subject to415supervision and inspection as a branch office under the rules of416the National Association of Securities Dealers, and each agency417whose primary function is offering insurance as a service or418member benefit to members of a nonprofit corporation may file an419application for registration in lieu of licensure in accordance420with s. 626.172(3). Each agency engaged in business before421October 1, 2006, shall file an application for licensure or422registration on or before October 1, 2006. 423 (c)1.If an agency is required to be licensed but fails to 424 file an application for licensure in accordance with this 425 section, the department shall impose on the agency an 426 administrative penaltyin an amountof up to $10,000. 4272. If an agency is eligible for registration but fails to428file an application for registration or an application for429licensure in accordance with this section, the department shall430impose on the agency an administrative penalty in an amount of431up to $5,000.432 (d)(b)Effective October 1, 2015, the department must 433 automatically convert the registration of an approveda434 registered insurance agency toshall, as a condition precedent435to continuing business, obtainan insurance agency licenseif436the department finds that, with respect to any majority owner,437partner, manager, director, officer, or other person who manages438or controls the agency, any person has:4391. Been found guilty of, or has pleaded guilty or nolo440contendere to, a felony in this state or any other state441relating to the business of insurance or to an insurance agency,442without regard to whether a judgment of conviction has been443entered by the court having jurisdiction of the cases. 4442. Employed any individual in a managerial capacity or in a445capacity dealing with the public who is under an order of446revocation or suspension issued by the department. An insurance447agency may request, on forms prescribed by the department,448verification of any person’s license status. If a request is449mailed within 5 working days after an employee is hired, and the450employee’s license is currently suspended or revoked, the agency451shall not be required to obtain a license, if the unlicensed452person’s employment is immediately terminated.4533. Operated the agency or permitted the agency to be454operated in violation of s. 626.747.4554. With such frequency as to have made the operation of the456agency hazardous to the insurance-buying public or other457persons:458a. Solicited or handled controlled business. This459subparagraph shall not prohibit the licensing of any lending or460financing institution or creditor, with respect to insurance461only, under credit life or disability insurance policies of462borrowers from the institutions, which policies are subject to463part IX of chapter 627.464b. Misappropriated, converted, or unlawfully withheld465moneys belonging to insurers, insureds, beneficiaries, or others466and received in the conduct of business under the license.467c. Unlawfully rebated, attempted to unlawfully rebate, or468unlawfully divided or offered to divide commissions with469another.470d. Misrepresented any insurance policy or annuity contract,471or used deception with regard to any policy or contract, done472either in person or by any form of dissemination of information473or advertising.474e. Violated any provision of this code or any other law475applicable to the business of insurance in the course of dealing476under the license.477f. Violated any lawful order or rule of the department.478g. Failed or refused, upon demand, to pay over to any479insurer he or she represents or has represented any money coming480into his or her hands belonging to the insurer.481h. Violated the provision against twisting as defined in s.482626.9541(1)(l).483i. In the conduct of business, engaged in unfair methods of484competition or in unfair or deceptive acts or practices, as485prohibited under part IX of this chapter.486j. Willfully overinsured any property insurance risk.487k. Engaged in fraudulent or dishonest practices in the488conduct of business arising out of activities related to489insurance or the insurance agency.490l. Demonstrated lack of fitness or trustworthiness to491engage in the business of insurance arising out of activities492related to insurance or the insurance agency.493m. Authorized or knowingly allowed individuals to transact494insurance who were not then licensed as required by this code.4955. Knowingly employed any person who within the preceding 3496years has had his or her relationship with an agency terminated497in accordance with paragraph (d).4986. Willfully circumvented the requirements or prohibitions499of this code.500 Section 6. Subsections (2), (3), and (4) of section 501 626.172, Florida Statutes, are amended to read: 502 626.172 Application for insurance agency license.— 503 (2) An application for an insurance agency license must 504shallbe signed by an individual required to be listed in the 505 application under paragraph (a)the owner or owners of the506agency.If the agency is incorporated, the application shall be507signed by the president and secretary of the corporation. An 508 insurance agency may allow a third party to complete, submit, 509 and sign an application on the insurance agency’s behalf, but 510 the insurance agency is responsible for ensuring that the 511 information on the application is true and correct and is 512 accountable for any misstatements or misrepresentations. The 513 application for an insurance agency license mustshallinclude: 514 (a) The name of eachmajorityowner, partner, officer,and515 director, president, senior vice president, secretary, 516 treasurer, and limited liability company member, who directs or 517 participates in the management or control of the insurance 518 agency, whether through ownership of voting securities, by 519 contract, by ownership of an agency bank account, or otherwise. 520 (b) The residence address of each person required to be 521 listed in the application under paragraph (a). 522 (c) The name, principal business street address, and e-mail 523 address of the insurance agency and the name, address, and e 524 mail address of the agency’s registered agent or person or 525 company authorized to accept service on behalf of the agencyits526principal business address. 527 (d) The name, physical address, e-mail address, and 528 telephone numberlocationof each branch agency and the date 529 that the branch location begins transacting insuranceoffice and530the name under which each agency office conducts or will conduct531business. 532 (e) The name of each agent to be in full-time charge of an 533 agency office and specification of which office, including 534 branch locations. 535 (f) The fingerprints of each of the following: 536 1. A sole proprietor; 537 2. Each individual required to be listed in the application 538 under paragraph (a)partner; and 5393. Each owner of an unincorporated agency;540 3.4.Each individual owner who directs or participates in 541 the management or control of an incorporated agency whose shares 542 are not traded on a securities exchange;5435. The president, senior vice presidents, treasurer,544secretary, and directors of the agency; and5456. Any other person who directs or participates in the546management or control of the agency, whether through the547ownership of voting securities, by contract, or otherwise. 548 549 Fingerprints must be taken by a law enforcement agency or other 550 entity approved by the department and must be accompanied by the 551 fingerprint processing fee specified in s. 624.501. Fingerprints 552 mustshallbe processed in accordance with s. 624.34. However, 553 fingerprints need not be filed for ananyindividual who is 554 currently licensed and appointed under this chapter. This 555 paragraph does not apply to corporations whose voting shares are 556 traded on a securities exchange. 557 (g) Such additional information as the department requires 558 by rule to ascertain the trustworthiness and competence of 559 persons required to be listed on the application and to 560 ascertain that such persons meet the requirements of this code. 561 However, the department may not require that credit or character 562 reports be submitted for persons required to be listed on the 563 application. 564 (3)(h)Beginning October 1, 2005,The department mustshall565 accept the uniform application for nonresident agency licensure. 566 The department may adopt by rule revised versions of the uniform 567 application. 568(3)The department shall issue a registration as an569insurance agency to any agency that files a written application570with the department and qualifies for registration. The571application for registration shall require the agency to provide572the same information required for an agency licensed under573subsection (2), the agent identification number for each owner574who is a licensed agent, proof that the agency qualifies for575registration as provided in s. 626.112(7), and any other576additional information that the department determines is577necessary in order to demonstrate that the agency qualifies for578registration. The application must be signed by the owner or579owners of the agency. If the agency is incorporated, the580application must be signed by the president and the secretary of581the corporation. An agent who owns the agency need not file582fingerprints with the department if the agent obtained a license583under this chapter and the license is currently valid.584(a) If an application for registration is denied, the585agency must file an application for licensure no later than 30586days after the date of the denial of registration.587(b) A registered insurance agency must file an application588for licensure no later than 30 days after the date that any589person who is not a licensed and appointed agent in this state590acquires any ownership interest in the agency. If an agency591fails to file an application for licensure in compliance with592this paragraph, the department shall impose an administrative593penalty in an amount of up to $5,000 on the agency.594(c) Sections 626.6115 and 626.6215 do not apply to agencies595registered under this subsection.596 (4) The department mustshallissue a licenseor597registrationto each agency upon approval of the application, 598 and each agency location mustshalldisplay the licenseor599registrationprominently in a manner that makes it clearly 600 visible to any customer or potential customer who enters the 601 agency location. 602 Section 7. Present subsection (6) of section 626.311, 603 Florida Statutes, is redesignated as subsection (7), and a new 604 subsection (6) is added to that section, to read: 605 626.311 Scope of license.— 606 (6) An agent who appoints his or her license as an 607 unaffiliated insurance agent may not hold an appointment from an 608 insurer for any license he or she holds; transact, solicit, or 609 service an insurance contract on behalf of an insurer; interfere 610 with commissions received or to be received by an insurer 611 appointed insurance agent or an insurance agency contracted with 612 or employing insurer-appointed insurance agents; or receive 613 compensation or any other thing of value from an insurer, an 614 insurer-appointed insurance agent, or an insurance agency 615 contracted with or employing insurer-appointed insurance agents 616 for any transaction or referral occurring after the date of 617 appointment as an unaffiliated insurance agent. An unaffiliated 618 insurance agent may continue to receive commissions on sales 619 that occurred before the date of appointment as an unaffiliated 620 insurance agent if the receipt of such commissions is disclosed 621 when making recommendations or evaluating products for a client 622 that involve products of the entity from which the commissions 623 are received. 624 Section 8. Paragraph (d) of subsection (1) of section 625 626.321, Florida Statutes, is amended to read: 626 626.321 Limited licenses.— 627 (1) The department shall issue to a qualified applicant a 628 license as agent authorized to transact a limited class of 629 business in any of the following categories of limited lines 630 insurance: 631 (d) Motor vehicle rental insurance.— 632 1. License covering only insurance of the risks set forth 633 in this paragraph when offered, sold, or solicited with and 634 incidental to the rental or lease of a motor vehicle and which 635 applies only to the motor vehicle that is the subject of the 636 lease or rental agreement and the occupants of the motor 637 vehicle: 638 a. Excess motor vehicle liability insurance providing 639 coverage in excess of the standard liability limits provided by 640 the lessor in the lessor’s lease to a person renting or leasing 641 a motor vehicle from the licensee’s employer for liability 642 arising in connection with the negligent operation of the leased 643 or rented motor vehicle. 644 b. Insurance covering the liability of the lessee to the 645 lessor for damage to the leased or rented motor vehicle. 646 c. Insurance covering the loss of or damage to baggage, 647 personal effects, or travel documents of a person renting or 648 leasing a motor vehicle. 649 d. Insurance covering accidental personal injury or death 650 of the lessee and any passenger who is riding or driving with 651 the covered lessee in the leased or rented motor vehicle. 652 2. Insurance under a motor vehicle rental insurance license 653 may be issued only if the lease or rental agreement is for up to 654no more than60 days, the lessee is not provided coverage for 655 more than 60 consecutive days per lease period, and the lessee 656 is given written notice that his or her personal insurance 657 policy providing coverage on an owned motor vehicle may provide 658 coverage of such risks and that the purchase of the insurance is 659 not required in connection with the lease or rental of a motor 660 vehicle. If the lease is extended beyond 60 days, the coverage 661 may be extendedone timeonly once for up toa period not to662exceed an additional60 days. Insurance may be provided to the 663 lessee as an additional insured on a policy issued to the 664 licensee’s employer. 665 3. The license may be issued only to the full-time salaried 666 employee of a licensed general lines agent or to a business 667 entity that offers motor vehicles for rent or lease if insurance 668 sales activities authorized by the license are in connection 669 with and incidental to the rental or lease of a motor vehicle. 670 a. A license issued to a business entity that offers motor 671 vehicles for rent or lease encompasses each office, branch 672 office, employee, authorized representative located at a 673 designated branch, or place of business making use of the 674 entity’s business name in order to offer, solicit, and sell 675 insurance pursuant to this paragraph. 676 b. The application for licensure must list the name, 677 address, and phone number for each office, branch office, or 678 place of business whichthatis to be covered by the license. 679 The licensee shall notify the department of the name, address, 680 and phone number of any new location that is to be covered by 681 the license before the new office, branch office, or place of 682 business engages in the sale of insurance pursuant to this 683 paragraph. The licensee must notify the department within 30 684 days after closing or terminating an office, branch office, or 685 place of business. Upon receipt of the notice, the department 686 shall delete the office, branch office, or place of business 687 from the license. 688 c. A licensed and appointed entity is directly responsible 689 and accountable for all acts of the licensee’s employees. 690 Section 9. Effective January, 1, 2015, section 626.382, 691 Florida Statutes, is amended to read: 692 626.382 Continuation, expiration of license; insurance 693 agencies.—The license of ananyinsurance agencyshall be issued694for a period of 3 years andshall continue in force until 695 canceled, suspended, or revoked,or until it is otherwise 696 terminated or becomes expired by operation of law.A license may697be renewed by submitting a renewal request to the department on698a form adopted by department rule.699 Section 10. Section 626.601, Florida Statutes, is amended 700 to read: 701 626.601 Improper conduct; investigationinquiry; 702 fingerprinting.— 703 (1) The department or office may, upon its own motion or 704 upon a written complaint signed by ananyinterested person and 705 filed with the department or office, inquire into theany706 alleged improper conduct of any licensed, approved, or certified 707 licensee, insurance agency, agent, adjuster, service 708 representative, managing general agent, customer representative, 709 title insurance agent, title insurance agency, mediator, neutral 710 evaluator, navigator, continuing education course provider, 711 instructor, school official, or monitor group under this code. 712 The department or office may thereafter initiate an 713 investigation ofanysuch individual or entitylicenseeif it 714 has reasonable cause to believe that the individual or entity 715licenseehas violated any provision of the insurance code. 716 During the course of its investigation, the department or office 717 shall contact the individual or entitylicenseebeing 718 investigated unless it determines that contacting such 719 individual or entitypersoncould jeopardize the successful 720 completion of the investigation or cause injury to the public. 721 (2) In the investigation by the department or office of the 722 alleged misconduct, the individual or entitylicenseeshall, if 723whenever sorequired by the department or office, open the 724 individual’s or entity’scause his orherbooks and recordsto725be openfor inspection for the purpose of such investigation 726inquiries. 727 (3)TheComplaints against an individual or entityany728licenseemay be informally alleged and are not required to 729 includeneed not be in any suchlanguageas isnecessary to 730 charge a crime on an indictment or information. 731 (4) The expense for any hearings or investigations 732 conducted pursuant to this sectionunder this law, as well as 733 the fees and mileage of witnesses, may be paid out of the 734 appropriate fund. 735 (5) If the department or office, after investigation, has 736 reason to believe that an individuala licenseemay have been 737 found guilty of or pleaded guilty or nolo contendere to a felony 738 or a crime related to the business of insurance in this or any 739 other state or jurisdiction, the department or office may 740 require the individuallicenseeto file with the department or 741 office a complete set of his or her fingerprints,which shall be742 accompanied by the fingerprint processing fee set forth in s. 743 624.501. The fingerprints shall be taken by an authorized law 744 enforcement agency or other department-approved entity. 745 (6) The complaint and any information obtained pursuant to 746 the investigation by the department or office are confidential 747 andareexempt fromthe provisions ofs. 119.07,unless the 748 department or office files a formal administrative complaint, 749 emergency order, or consent order against the individual or 750 entitylicensee.Nothing inThis subsection does notshall be751construed toprevent the department or office from disclosing 752 the complaint or such information as it deems necessary to 753 conduct the investigation, to update the complainant as to the 754 status and outcome of the complaint, or to share such 755 information with any law enforcement agency or other regulatory 756 body. 757 Section 11. Effective January 1, 2015, section 626.747, 758 Florida Statutes, is repealed. 759 Section 12. Effective January 1, 2015, subsection (1) of 760 section 626.8411, Florida Statutes, is amended to read: 761 626.8411 Application of Florida Insurance Code provisions 762 to title insurance agents or agencies.— 763 (1) The following provisionsof part IIapplicable to 764 general lines agents or agencies also apply to title insurance 765 agents or agencies: 766 (a) Section 626.734, relating to liability of certain 767 agents. 768 (b) Section 626.0428(4)(a) and (b)626.747, relating to 769 branch agencies. 770 (c) Section 626.749, relating to place of business in 771 residence. 772 (d) Section 626.753, relating to sharing of commissions. 773 (e) Section 626.754, relating to rights of agent following 774 termination of appointment. 775 Section 13. Subsections (14) and (18) of section 626.854, 776 Florida Statutes, are amended to read: 777 626.854 “Public adjuster” defined; prohibitions.—The 778 Legislature finds that it is necessary for the protection of the 779 public to regulate public insurance adjusters and to prevent the 780 unauthorized practice of law. 781(14) A company employee adjuster, independent adjuster,782attorney, investigator, or other persons acting on behalf of an783insurer that needs access to an insured or claimant or to the784insured property that is the subject of a claim must provide at785least 48 hours’ notice to the insured or claimant, public786adjuster, or legal representative before scheduling a meeting787with the claimant or an onsite inspection of the insured788property. The insured or claimant may deny access to the789property if the notice has not been provided. The insured or790claimant may waive the 48-hour notice.791 (17)(18)The provisions ofSubsections (5)-(16)(5)-(17)792 apply only to residential property insurance policies and 793 condominium unit owner policies as defined in s. 718.111(11). 794 Section 14. Paragraph (c) of subsection (2) and subsection 795 (3) of section 626.8805, Florida Statutes, are amended to read: 796 626.8805 Certificate of authority to act as administrator.— 797 (2) The administrator shall file with the office an 798 application for a certificate of authority upon a form to be 799 adopted by the commission and furnished by the office, which 800 application shall include or have attached the following 801 information and documents: 802 (c) The names, addresses, official positions, and 803 professional qualifications of the individuals employed or 804 retained by the administrator who are responsible for the 805 conduct of the affairs of the administrator, including all 806 members of the board of directors, board of trustees, executive 807 committee, or other governing board or committee, and the 808 principal officers in the case of a corporation or,the partners 809 or members in the case of a partnership or association, and any810other person who exercises control or influence over the affairs811 of the administrator. 812 (3) The applicant shall make available for inspection by 813 the office copies of all contracts relating to services provided 814 by the administrator towithinsurers or other persons using 815utilizingthe services of the administrator. 816 Section 15. Subsections (1) and (3) of section 626.8817, 817 Florida Statutes, are amended to read: 818 626.8817 Responsibilities of insurance company with respect 819 to administration of coverage insured.— 820 (1) If an insurer uses the services of an administrator, 821 the insurer is responsible for determining the benefits, premium 822 rates, underwriting criteria, and claims payment procedures 823 applicable to the coverage and for securing reinsurance, if any. 824 The rules pertaining to these matters shall be provided, in 825 writing, by the insurer or its designee to the administrator. 826 The responsibilities of the administrator as to any of these 827 matters shall be set forth in athewritten agreement binding 828 uponbetweenthe administrator and the insurer. 829 (3) IfIn cases in whichan administrator administers 830 benefits for more than 100 certificateholders on behalf of an 831 insurer, the insurer shall, at least semiannually, conduct a 832 review of the operations of the administrator. At least one such 833 review must be an onsite audit of the operations of the 834 administrator. The insurer may contract with a qualified third 835 party to conduct such review. 836 Section 16. Subsections (1) and (4) of section 626.882, 837 Florida Statutes, are amended to read: 838 626.882 Agreement between administrator and insurer; 839 required provisions; maintenance of records.— 840 (1) ANoperson may not act as an administrator without a 841 written agreement, as required under s. 626.8817, which 842 specifies the rights, duties, and obligations of thebetween843such person asadministrator andaninsurer. 844 (4) If a policy is issued to a trustee or trustees, a copy 845 of the trust agreement and any amendments to that agreement 846 shall be furnished to the insurer or its designee by the 847 administrator and shall be retained as part of the official 848 records of both the administrator and the insurer for the 849 duration of the policy and for 5 years thereafter. 850 Section 17. Subsections (3), (4), and (5) of section 851 626.883, Florida Statutes, are amended to read: 852 626.883 Administrator as intermediary; collections held in 853 fiduciary capacity; establishment of account; disbursement; 854 payments on behalf of insurer.— 855 (3) If charges or premiums deposited in a fiduciary account 856 have been collected on behalf of or for more than one insurer, 857 the administrator shall keep records clearly recording the 858 deposits in and withdrawals from such account on behalf of or 859 for each insurer. The administrator shall, upon request of an 860 insurer or its designee, furnish such insurer or designee with 861 copies of records pertaining to deposits and withdrawals on 862 behalf of or for such insurer. 863 (4) The administrator may not pay any claim by withdrawals 864 from a fiduciary account. Withdrawals from such account shall be 865 made as provided in the written agreement required under ss. 866 626.8817 and 626.882between the administrator and the insurer867 for any of the following: 868 (a) Remittance to an insurer entitled to such remittance. 869 (b) Deposit in an account maintained in the name of such 870 insurer. 871 (c) Transfer to and deposit in a claims-paying account, 872 with claims to be paid as provided by such insurer. 873 (d) Payment to a group policyholder for remittance to the 874 insurer entitled to such remittance. 875 (e) Payment to the administrator of the commission, fees, 876 or charges of the administrator. 877 (f) Remittance of return premium to the person or persons 878 entitled to suchreturnpremium. 879 (5) All claims paid by the administrator from funds 880 collected on behalf of the insurer shall be paid only on drafts 881 of, and as authorized by, such insurer or its designee. 882 Section 18. Subsection (3) of section 626.884, Florida 883 Statutes, is amended to read: 884 626.884 Maintenance of records by administrator; access; 885 confidentiality.— 886 (3) The insurer shall retain the right of continuing access 887 to books and records maintained by the administrator sufficient 888 to permit the insurer to fulfill all of its contractual 889 obligations to insured persons, subject to any restrictions in 890 the written agreement pertaining tobetween the insurer and the891administrator onthe proprietary rights of the parties in such 892 books and records. 893 Section 19. Subsections (1) and (2) of section 626.89, 894 Florida Statutes, are amended to read: 895 626.89 Annual financial statement and filing fee; notice of 896 change of ownership.— 897 (1) Each authorized administrator shall annually file with 898 the office a full and true statement of its financial condition, 899 transactions, and affairs within 3 months after the end of the 900 administrator’s fiscal year. The statement shall be filed901annually on or before March 1or within such extension of time 902thereforas the office for good cause may have granted. The 903 statement mustand shallbe for the preceding fiscalcalendar904 year and must. The statement shallbe in such form and contain 905 such matters as the commission prescribes and mustshallbe 906 verified by at least two officers of thesuchadministrator.An907administrator whose sole stockholder is an association908representing health care providers which is not an affiliate of909an insurer, an administrator of a pooled governmental self910insurance program, or an administrator that is a university may911submit the preceding fiscal year’s statement within 2 months912after its fiscal year end.913 (2) Each authorized administrator shall also file an 914 audited financial statement performed by an independent 915 certified public accountant. The audited financial statement 916 shall be filed with the office within 5 months after the end of 917 the administrator’s fiscal year and beon or before June 1for 918 the preceding fiscalcalendaryearending December 31.An919administrator whose sole stockholder is an association920representing health care providers which is not an affiliate of921an insurer, an administrator of a pooled governmental self922insurance program, or an administrator that is a university may923submit the preceding fiscal year’s audited financial statement924within 5 months after the end of its fiscal year.An audited 925 financial statement prepared on a consolidated basis must 926 include a columnar consolidating or combining worksheet that 927 must be filed with the statement and must comply with the 928 following: 929 (a) Amounts shown on the consolidated audited financial 930 statement must be shown on the worksheet; 931 (b) Amounts for each entity must be stated separately; and 932 (c) Explanations of consolidating and eliminating entries 933 must be included. 934 Section 20. Section 626.931, Florida Statutes, is amended 935 to read: 936 626.931Agent affidavit andInsurer reporting 937 requirements.— 938(1) Each surplus lines agent shall on or before the 45th939day following each calendar quarter file with the Florida940Surplus Lines Service Office an affidavit, on forms as941prescribed and furnished by the Florida Surplus Lines Service942Office, stating that all surplus lines insurance transacted by943him or her during such calendar quarter has been submitted to944the Florida Surplus Lines Service Office as required.945(2) The affidavit of the surplus lines agent shall include946efforts made to place coverages with authorized insurers and the947results thereof.948 (1)(3)Each foreign insurer accepting premiums shall, on or 949 before the end of the month following each calendar quarter, 950 file with the Florida Surplus Lines Service Office a verified 951 report of all surplus lines insurance transacted by such insurer 952 for insurance risks located in this state during thesuch953 calendar quarter. 954 (2)(4)Each alien insurer accepting premiums shall, on or 955 before June 30 of each year, file with the Florida Surplus Lines 956 Service Office a verified report of all surplus lines insurance 957 transacted by such insurer for insurance risks located in this 958 state during the preceding calendar year. 959 (3)(5)The department may waive the filing requirements 960 described in subsections (1)(3)and (2)(4). 961 (4)(6)Each insurer’s report and supporting information 962 shall be in a computer-readable format as determined by the 963 Florida Surplus Lines Service Office orshallbe submitted on 964 forms prescribed by the Florida Surplus Lines Service Office and 965shallshow for each applicable agent: 966 (a) A listing of all policies, certificates, cover notes, 967 or other forms of confirmation of insurance coverage or any 968 substitutions thereof or endorsements thereto and the 969 identifying number; and 970 (b) Any additional information required by the department 971 or Florida Surplus Lines Service Office. 972 Section 21. Paragraph (a) of subsection (2) of section 973 626.932, Florida Statutes, is amended to read: 974 626.932 Surplus lines tax.— 975 (2)(a) The surplus lines agent shall make payable to the 976 department the tax related to each calendar quarter’s business 977 as reported to the Florida Surplus Lines Service Office,and 978 remit the tax to the Florida Surplus Lines Service Office on or 979 before the 45th day after each calendar quarterat the same time980as provided for the filing of the quarterly affidavit, under s.981626.931. The Florida Surplus Lines Service Office shall forward 982 to the department the taxes and any interest collected pursuant 983 to paragraph (b),within 10 days afterofreceipt. 984 Section 22. Subsection (1) of section 626.935, Florida 985 Statutes, is amended to read: 986 626.935 Suspension, revocation, or refusal of surplus lines 987 agent’s license.— 988 (1) The department shall deny an application for, suspend, 989 revoke, or refuse to renew the appointment of a surplus lines 990 agent and all other licenses and appointments held by the 991 licensee under this code,on any of the following grounds: 992 (a) Removal of the licensee’s office from the licensee’s 993 state of residence. 994 (b) Removal of the accounts and records of his or her 995 surplus lines business from this state or the licensee’s state 996 of residence during the period when such accounts and records 997 are required to be maintained under s. 626.930. 998 (c) Closure of the licensee’s office for more than 30 999 consecutive days. 1000(d) Failure to make and file his or her affidavit or1001reports when due as required by s. 626.931.1002 (d)(e)Failure to pay the tax or service fee on surplus 1003 lines premiums,as provided in the Surplus Lines Law. 1004 (e)(f)Suspension, revocation, or refusal to renew or 1005 continue the license or appointment as a general lines agent, 1006 service representative, or managing general agent. 1007 (f)(g)Lack of qualifications as for an original surplus 1008 lines agent’s license. 1009 (g)(h)Violation of this Surplus Lines Law. 1010 (h)(i)ForAny other applicable cause for which the license 1011 of a general lines agent could be suspended, revoked, or refused 1012 under s. 626.611 or s. 626.621. 1013 Section 23. Subsection (1) of section 626.936, Florida 1014 Statutes, is amended to read: 1015 626.936 Failure to file reports or pay tax or service fee; 1016 administrative penalty.— 1017 (1) AAnylicensed surplus lines agent who neglects to file 1018 a reportor an affidavitin the form and within the time 1019 required underor provided for inthe Surplus Lines Law may be 1020 fined up to $50 per day for each day the neglect continues, 1021 beginning the day after the reportor affidavitwas due until 1022 the date the reportor affidavitis received. All sums collected 1023 under this section shall be deposited into the Insurance 1024 Regulatory Trust Fund. 1025 Section 24. Paragraph (q) of subsection (1) of section 1026 626.9541, Florida Statutes, is amended to read: 1027 626.9541 Unfair methods of competition and unfair or 1028 deceptive acts or practices defined.— 1029 (1) UNFAIR METHODS OF COMPETITION AND UNFAIR OR DECEPTIVE 1030 ACTS.—The following are defined as unfair methods of competition 1031 and unfair or deceptive acts or practices: 1032 (q) Certain insurance transactions through credit card 1033 facilities prohibited.— 1034 1. Except as provided in subparagraph 3., no person shall 1035 knowingly solicit or negotiateanyinsurance; seek or accept 1036 applications for insurance; issue or deliver any policy; 1037 receive, collect, or transmit premiums, to or for anany1038 insurer; or otherwise transact insurance in this state, or 1039 relative to a subject of insurance resident, located, or to be 1040 performed in this state, through the arrangement or facilities 1041 of a credit card facility or organization, for the purpose of 1042 insuring credit card holders or prospective credit card holders. 1043 The term “credit card holder” as used in this paragraph means a 1044anyperson who may pay the charge for purchases or other 1045 transactions through the credit card facility or organization, 1046 whose credit with such facility or organization is evidenced by 1047 a credit card identifying such person as being one whose charges 1048 the credit card facility or organization will pay, and who is 1049 identified as such upon the credit cardeitherby name, account 1050 number, symbol, insignia, oranyother method or device of 1051 identification. This subparagraph does not apply as to health 1052 insurance or to credit life, credit disability, or credit 1053 property insurance. 1054 2. IfWheneverany person does or performs in this state 1055 any of the acts in violation of subparagraph 1. for or on behalf 1056 of ananyinsurer or credit card facility, such insurer or 1057 credit card facility shall be deemedheldto be doing business 1058 in this state and, if an insurer, shall be subject to the same 1059 state, county, and municipal taxes as insurers that have been 1060 legally qualified and admitted to do business in this state by 1061 agents or otherwise are subject, the same to be assessed and 1062 collected against such insurers; and such person so doing or 1063 performing any of such acts isshall bepersonally liable for 1064 all such taxes. 1065 3. A licensed agent or insurer may solicit or negotiateany1066 insurance; seek or accept applications for insurance; issue or 1067 deliver any policy; receive, collect, or transmit premiums, to 1068 or for ananyinsurer; or otherwise transact insurance in this 1069 state, or relative to a subject of insurance resident, located, 1070 or to be performed in this state, through the arrangement or 1071 facilities of a credit card facility or organization, for the 1072 purpose of insuring credit card holders or prospective credit 1073 card holders if: 1074 a. The insurance or policy which is the subject of the 1075 transaction is noncancelable by any person other than the named 1076 insured, the policyholder, or the insurer; 1077 b. Any refund of unearned premium is madedirectlyto the 1078 credit card holder by mail or electronic transfer; and 1079 c. The credit card transaction is authorized by the 1080 signature of the credit card holder or other person authorized 1081 to sign on the credit card account. 1082 1083 The conditions enumerated in sub-subparagraphs a.-c. do not 1084 apply to health insurance or to credit life, credit disability, 1085 or credit property insurance; and sub-subparagraph c. does not 1086 apply to property and casualty insurance ifso long asthe 1087 transaction is authorized by the insured. 1088 4. No person may use or disclose information resulting from 1089 the use of a credit card in conjunction with the purchase of 1090 insurance if, whensuch information is to the advantage of the 1091suchcredit card facility or an insurance agent, or is to the 1092 detriment of the insured or any other insurance agent; except 1093 that this provision does not prohibit a credit card facility 1094 from using or disclosing such information in aanyjudicial 1095 proceeding or consistent with applicable law on credit 1096 reporting. 1097 5.NoSuch insurance may notshallbe sold through a credit 1098 card facility in conjunction with membership in any automobile 1099 club. The term “automobile club” means a legal entity that 1100which, in consideration of dues, assessments, or periodic 1101 payments of money, promises its members or subscribers to assist 1102 them in matters relating to the ownership, operation, use, or 1103 maintenance of a motor vehicle; however, the termdefinition of1104automobile clubsdoes not include persons, associations, or 1105 corporations thatwhichare organized and operated solely for 1106 the purpose of conducting, sponsoring, or sanctioning motor 1107 vehicle races, exhibitions, or contests upon racetracks, or upon 1108 race courses established and marked as such for the duration of 1109 such particular event. The words “motor vehicle” used herein 1110 shall be the same as defined in chapter 320. 1111 Section 25. Paragraph (b) of subsection (2) of section 1112 627.062, Florida Statutes, is amended to read: 1113 627.062 Rate standards.— 1114 (2) As to all such classes of insurance: 1115 (b) Upon receiving a rate filing, the office shall review 1116 the filing to determine whether theif arate is excessive, 1117 inadequate, or unfairly discriminatory. In making that 1118 determination, the office shall, in accordance with generally 1119 accepted and reasonable actuarial techniques, consider the 1120 following factors: 1121 1. Past and prospective loss experience within and without 1122 this state. 1123 2. Past and prospective expenses. 1124 3. The degree of competition among insurers for the risk 1125 insured. 1126 4. Investment income reasonably expected by the insurer, 1127 consistent with the insurer’s investment practices, from 1128 investable premiums anticipated in the filing, plus any other 1129 expected income from currently invested assets representing the 1130 amount expected on unearned premium reserves and loss reserves. 1131 The commission may adopt rules using reasonable techniques of 1132 actuarial science and economics to specify the manner in which 1133 insurers calculate investment income attributable to classes of 1134 insurance written in this state and the manner in which 1135 investment income is used to calculate insurance rates. Such 1136 manner must contemplate allowances for an underwriting profit 1137 factor and full consideration of investment income thatwhich1138 produce a reasonable rate of return; however, investment income 1139 from invested surplus may not be considered. 1140 5. The reasonableness of the judgment reflected in the 1141 filing. 1142 6. Dividends, savings, or unabsorbed premium deposits 1143 allowed or returned to Florida policyholders, members, or 1144 subscribers. 1145 7. The adequacy of loss reserves. 1146 8. The cost of reinsurance. The office may not disapprove a 1147 rate as excessive solely due to the insurer’sinsurerhaving 1148 obtained catastrophic reinsurance to cover the insurer’s 1149 estimated 250-year probable maximum loss or any lower level of 1150 loss. 1151 9. Trend factors, including trends in actual losses per 1152 insured unit for the insurer making the filing. 1153 10. Conflagration and catastrophe hazards, if applicable. 1154 11. Projected hurricane losses, if applicable, which must 1155 be estimated using a model or method, or a straight average of 1156 model results or output ranges, which are independently found to 1157 be acceptable or reliable by the Florida Commission on Hurricane 1158 Loss Projection Methodology,and as further provided in s. 1159 627.0628. 1160 12. A reasonable margin for underwriting profit and 1161 contingencies. 1162 13. The cost of medical services, if applicable. 1163 14. Other relevant factors that affect the frequency or 1164 severity of claims or expenses. 1165 Section 26. Paragraph (d) of subsection (3) of section 1166 627.0628, Florida Statutes, is amended to read: 1167 627.0628 Florida Commission on Hurricane Loss Projection 1168 Methodology; public records exemption; public meetings 1169 exemption.— 1170 (3) ADOPTION AND EFFECT OF STANDARDS AND GUIDELINES.— 1171 (d) With respect to a rate filing under s. 627.062, an 1172 insurer shall employ and may not modify or adjust actuarial 1173 methods, principles, standards, models, or output ranges found 1174 by the commission to be accurate or reliable in determining 1175 hurricane loss factors for use in a rate filing under s. 1176 627.062. An insurer shall employ and may not modify or adjust 1177 models found by the commission to be accurate or reliable in 1178 determining probable maximum loss levels pursuant to paragraph 1179 (b) with respect to a rate filing under s. 627.062 made more 1180 than 18060days after the commission has made such findings. 1181 This paragraph does not prohibit an insurer from using a 1182 straight average of model results or output ranges or using 1183 straight averages for the purposes of a rate filing under s. 1184 627.062. 1185 Section 27. Subsection (8) of section 627.0651, Florida 1186 Statutes, is amended to read: 1187 627.0651 Making and use of rates for motor vehicle 1188 insurance.— 1189 (8) Rates are not unfairly discriminatory if averaged 1190 broadly among members of a group; nor are rates unfairly 1191 discriminatory even though they are lower than rates for 1192 nonmembers of the group. However, such rates are unfairly 1193 discriminatory if they are not actuarially measurable and 1194 credible and sufficiently related to actual or expected loss and 1195 expense experience of the group so as to ensureassurethat 1196 nonmembers of the group are not unfairly discriminated against. 1197 Use of a single United States Postal Service zip code as a 1198 rating territory shall be deemed unfairly discriminatory unless 1199 filed pursuant to paragraph (1)(a) and such rating territory 1200 incorporates sufficient actual or expected loss and loss 1201 adjustment expense experience so as to be actuarially measurable 1202 and credible. 1203 Section 28. Present subsections (2) through (4) of section 1204 627.072, Florida Statutes, are redesignated as subsections (3) 1205 through (5), respectively, and a new subsection (2) is added to 1206 that section, to read: 1207 627.072 Making and use of rates.— 1208 (2) A retrospective rating plan may contain a provision 1209 that allows for the negotiation of premium between the employer 1210 and the insurer for employers having exposure in more than one 1211 state, an estimated annual standard premium in this state of 1212 $175,000, and an estimated annual countrywide standard premium 1213 of $1 million or more for workers’ compensation. 1214 Section 29. Subsection (2) of section 627.281, Florida 1215 Statutes, is amended to read: 1216 627.281 Appeal from rating organization; workers’ 1217 compensation and employer’s liability insurance filings.— 1218 (2) If thesuchappeal is based onuponthe failure of the 1219 rating organization to make a filing on behalf of asuchmember 1220 or subscriber which is based on a system of expense provisions 1221 whichdiffers, in accordance with the right granted in s. 1222 627.072(3)627.072(2), differs from the system of expense 1223 provisions included in a filing made by the rating organization, 1224 the office shall, if it grants the appeal, order the rating 1225 organization to make the requested filing for use by the 1226 appellant. In deciding such appeal, the office shall apply the 1227 applicable standards set forth in ss. 627.062 and 627.072. 1228 Section 30. Paragraph (h) of subsection (5) of section 1229 627.311, Florida Statutes, is amended to read: 1230 627.311 Joint underwriters and joint reinsurers; public 1231 records and public meetings exemptions.— 1232 (5) 1233 (h) Any premium or assessments collected by the plan in 1234 excess of the amount necessary to fund projected ultimate 1235 incurred losses and expenses of the plan and not paid to 1236 insureds of the plan in conjunction with loss prevention or 1237 dividend programs shall be retained by the plan for future use. 1238 Any state funds received by the plan in excess of the amount 1239 necessary to fund deficits in subplan D or any tier shall be 1240 returned to the state. Any dividend payable to a former insured 1241 of the plan may be retained by the plan for future use upon such 1242 terms as set forth in the declaration of dividend. 1243 Section 31. Subsection (9) of section 627.3518, Florida 1244 Statutes, is amended to read: 1245 627.3518 Citizens Property Insurance Corporation 1246 policyholder eligibility clearinghouse program.—The purpose of 1247 this section is to provide a framework for the corporation to 1248 implement a clearinghouse program by January 1, 2014. 1249 (9) The 45-day notice of nonrenewal requirement set forth 1250 in s. 627.4133(2)(b)5.627.4133(2)(b)4.b.applies when a policy 1251 is nonrenewed by the corporation because the risk has received 1252 an offer of coverage pursuant to this section which renders the 1253 risk ineligible for coverage by the corporation. 1254 Section 32. Section 627.3519, Florida Statutes, is 1255 repealed. 1256 Section 33. Section 627.409, Florida Statutes, is amended 1257 to read: 1258 627.409 Representations in applications; warranties.— 1259 (1) Any statement or description made by or on behalf of an 1260 insured or annuitant in an application for an insurance policy 1261 or annuity contract, or in negotiations for a policy or 1262 contract, is a representation andisnot a warranty. Except as 1263 provided in subsection (3), a misrepresentation, omission, 1264 concealment of fact, or incorrect statement may prevent recovery 1265 under the contract or policy only if any of the following apply: 1266 (a) The misrepresentation, omission, concealment, or 1267 statement is fraudulent or is materialeitherto the acceptance 1268 of the risk or to the hazard assumed by the insurer. 1269 (b) If the true facts had been known to the insurer 1270 pursuant to a policy requirement or other requirement, the 1271 insurer in good faith would not have issued the policy or 1272 contract, would not have issued it at the same premium rate, 1273 would not have issued a policy or contract in as large an 1274 amount, or would not have provided coverage with respect to the 1275 hazard resulting in the loss. 1276 (2) A breach or violation by the insured of aanywarranty, 1277 condition, or provision of aanywet marine or transportation 1278 insurance policy, contract of insurance, endorsement, or 1279 applicationtherefordoes not void the policy or contract, or 1280 constitute a defense to a loss thereon, unless such breach or 1281 violation increased the hazard by any means within the control 1282 of the insured. 1283 (3) For residential property insurance, if a policy or 1284 contract is in effect for more than 90 days, a claim filed by 1285 the insured may not be denied based on credit information 1286 available in public records. 1287 Section 34. Paragraph (b) of subsection (2) of section 1288 627.4133, Florida Statutes, is amended to read: 1289 627.4133 Notice of cancellation, nonrenewal, or renewal 1290 premium.— 1291 (2) With respect to aanypersonal lines or commercial 1292 residential property insurance policy, including a, but not1293limited to, anyhomeowner’s, mobile home owner’s, farmowner’s, 1294 condominium association, condominium unit owner’s, apartment 1295 building, or other policy covering a residential structure or 1296 its contents: 1297 (b) The insurer shall give the first-named insured written 1298 notice of nonrenewal, cancellation, or termination at least 120 1299100days before the effective date of the nonrenewal, 1300 cancellation, or termination.However, the insurer shall give at1301least 100 days’ written notice, or written notice by June 1,1302whichever is earlier, for any nonrenewal, cancellation, or1303termination that would be effective between June 1 and November130430.The notice must include the reason or reasons for the 1305 nonrenewal, cancellation, or termination, except that: 13061. The insurer shall give the first-named insured written1307notice of nonrenewal, cancellation, or termination at least 1201308days prior to the effective date of the nonrenewal,1309cancellation, or termination for a first-named insured whose1310residential structure has been insured by that insurer or an1311affiliated insurer for at least a 5-year period immediately1312prior to the date of the written notice.1313 1.2.If cancellation is for nonpayment of premium, at least 1314 10 days’ written notice of cancellation accompanied by the 1315 reason therefor must be given. As used in this subparagraph, the 1316 term “nonpayment of premium” means failure of the named insured 1317 to discharge when due her or his obligations for paying the 1318 premiumin connection with the payment of premiumson a policy 1319 or ananyinstallment of such premium, whether the premium is 1320 payable directly to the insurer or its agent or indirectly under 1321 any premium finance plan or extension of credit, or failure to 1322 maintain membership in an organization if such membership is a 1323 condition precedent to insurance coverage. The term also means 1324 the failure of a financial institution to honor an insurance 1325 applicant’s check after delivery to a licensed agent for payment 1326 of a premium, even if the agent has previously delivered or 1327 transferred the premium to the insurer. If a dishonored check 1328 represents the initial premium payment, the contract and all 1329 contractual obligations are void ab initio unless the nonpayment 1330 is cured within the earlier of 5 days after actual notice by 1331 certified mail is received by the applicant or 15 days after 1332 notice is sent to the applicant by certified mail or registered 1333 mail., andIf the contract is void, any premium received by the 1334 insurer from a third party must be refunded to that party in 1335 full. 1336 2.3.Ifsuchcancellation or termination occurs during the 1337 first 90 days the insurance is in force and the insurance is 1338 canceled or terminated for reasons other than nonpayment of 1339 premium, at least 20 days’ written notice of cancellation or 1340 termination accompanied by the reason therefor must be given 1341 unless there has been a material misstatement or 1342 misrepresentation or failure to comply with the underwriting 1343 requirements established by the insurer. 1344 3. After the policy has been in effect for 90 days, the 1345 insurer may not cancel the policy unless there has been a 1346 material misstatement, a nonpayment of premium, a failure to 1347 comply with underwriting requirements established by the insurer 1348 within 90 days after the date of effectuation of coverage, or a 1349 substantial change in the risk covered by the policy or the 1350 cancellation is for all insureds under such policies for a class 1351 of insureds. This subparagraph does not apply to individually 1352 rated risks having a policy term of less than 90 days. 1353 4. After a policy or contract has been in effect for 90 1354 days, the insurer may not cancel or terminate the policy or 1355 contract based on credit information available in public 1356 records.The requirement for providing written notice by June 11357of any nonrenewal that would be effective between June 1 and1358November 30 does not apply to the following situations, but the1359insurer remains subject to the requirement to provide such1360notice at least 100 days before the effective date of1361nonrenewal:1362a. A policy that is nonrenewed due to a revision in the1363coverage for sinkhole losses and catastrophic ground cover1364collapse pursuant to s. 627.706.1365 5.b.A policy that is nonrenewed by Citizens Property 1366 Insurance Corporation, pursuant to s. 627.351(6), for a policy 1367 that has been assumed by an authorized insurer offering 1368 replacement coverage to the policyholder is exempt from the 1369 notice requirements of paragraph (a) and this paragraph. In such 1370 cases, the corporation must give the named insured written 1371 notice of nonrenewal at least 45 days before the effective date 1372 of the nonrenewal. 1373 1374After the policy has been in effect for 90 days, the policy may1375not be canceled by the insurer unless there has been a material1376misstatement, a nonpayment of premium, a failure to comply with1377underwriting requirements established by the insurer within 901378days after the date of effectuation of coverage, or a1379substantial change in the risk covered by the policy or if the1380cancellation is for all insureds under such policies for a given1381class of insureds. This paragraph does not apply to individually1382rated risks having a policy term of less than 90 days.1383 6.5.Notwithstanding any otherprovision oflaw, an insurer 1384 may cancel or nonrenew a property insurance policy after at 1385 least 45 days’ notice if the office finds that the early 1386 cancellation of some or all of the insurer’s policies is 1387 necessary to protect the best interests of the public or 1388 policyholders and the office approves the insurer’s plan for 1389 early cancellation or nonrenewal of some or all of its policies. 1390 The office may base such finding upon the financial condition of 1391 the insurer, lack of adequate reinsurance coverage for hurricane 1392 risk, or other relevant factors. The office may condition its 1393 finding on the consent of the insurer to be placed under 1394 administrative supervision pursuant to s. 624.81 or to the 1395 appointment of a receiver under chapter 631. 1396 7.6.A policy covering both a home and a motor vehicle may 1397 be nonrenewed for any reason applicable toeitherthe property 1398 or motor vehicle insurance after providing 90 days’ notice. 1399 Section 35. Subsection (1) of section 627.4137, Florida 1400 Statutes, is amended to read: 1401 627.4137 Disclosure of certain information required.— 1402 (1) Each insurer that provideswhich doesor may provide 1403 liability insurance coverage to pay all or a portion of aany1404 claim thatwhichmight be made shallprovide, within 30 days 1405 afterofthe written request of the claimant, provide a 1406 statement, under oath, of a corporate officer or the insurer’s 1407 claims manager,orsuperintendent, or licensed company adjuster 1408 setting forth the following information with regard to each 1409 known policy of insurance, including excess or umbrella 1410 insurance: 1411 (a) The name of the insurer. 1412 (b) The name of each insured. 1413 (c) The limits of the liability coverage. 1414 (d) A statement of any policy or coverage defense that the 1415which suchinsurer reasonably believes is available to thesuch1416 insurer at the time of filing such statement. 1417 (e) A copy of the policy. 1418 1419In addition,The insured, or her or his insurance agent, upon 1420 written request of the claimant or the claimant’s attorney, 1421 shall also disclose the name and coverage of each known insurer 1422 to the claimant andshallforward thesuchrequest for 1423 informationasrequired by this subsection to all affected 1424 insurers. The insurer shallthensupply the required information 1425required in this subsectionto the claimant within 30 days after 1426ofreceipt of such request. 1427 Section 36. Subsection (1) of section 627.421, Florida 1428 Statutes, is amended to read: 1429 627.421 Delivery of policy.— 1430 (1) Subject to the insurer’s requirement as to payment of 1431 premium, every policy shall be mailed, delivered, or 1432 electronically transmitted to the insured or to the person 1433 entitled thereto withinnot later than60 days after the 1434 effectuation of coverage. Notwithstanding any other provision of 1435 law, an insurer may allow a policyholder of personal lines 1436 insurance to affirmatively elect delivery of the policy 1437 documents, including policies, endorsements, notices, or other 1438 documents, by electronic means in lieu of delivery by mail. 1439 Electronic transmission of a policy for commercial risks, 1440 including, but not limited to, workers’ compensation and 1441 employers’ liability, commercial automobile liability, 1442 commercial automobile physical damage, commercial lines 1443 residential property, commercial nonresidential property, farm 1444 owners’ insurance, and the types of commercial lines risks set 1445 forth in s. 627.062(3)(d), constituteshall constitutedelivery 1446 to the insured or to the person entitled to delivery, unless the 1447 insured or the person entitled to delivery communicates to the 1448 insurer in writing or electronically that he or she does not 1449 agree to delivery by electronic means. Electronic transmission 1450 mustshallinclude a notice to the insured or to the person 1451 entitled to delivery of a policy of his or her right to receive 1452 the policy via United States mail rather than via electronic 1453 transmission. A paper copy of the policy shall be provided to 1454 the insured or to the person entitled to delivery at his or her 1455 request. 1456 Section 37. Subsection (2) of section 627.43141, Florida 1457 Statutes, is amended to read: 1458 627.43141 Notice of change in policy terms.— 1459 (2) A renewal policy may contain a change in policy terms. 1460 If a renewal policy containsdoes containsuch change, the 1461 insurer must give the named insured written notice of the 1462 change, which maymustbe enclosed along with the written notice 1463 of renewal premium required by ss. 627.4133 and 627.728 or be 1464 sent in a separate notice that complies with the nonrenewal 1465 mailing time requirement for that particular line of business. 1466 The insurer must also provide a sample copy of the notice to the 1467 insured’s insurance agent before or at the same time that notice 1468 is given to the insured. Such notice shall be entitled “Notice 1469 of Change in Policy Terms.” 1470 Section 38. Section 627.4553, Florida Statutes, is created 1471 to read: 1472 627.4553 Recommendations to surrender.—If an insurance 1473 agent recommends the surrender of an annuity or life insurance 1474 policy containing a cash value and is not recommending that the 1475 proceeds from the surrender be used to fund or purchase another 1476 annuity or life insurance policy, before execution of the 1477 surrender, the insurance agent, or the insurance company if no 1478 agent is involved, shall provide, on a form adopted by rule by 1479 the department, information concerning the annuity or policy to 1480 be surrendered, including the amount of any surrender charge, 1481 the loss of any minimum interest rate guarantees, the amount of 1482 any tax consequences resulting from the surrender, the amount of 1483 any forfeited death benefit, and the value of any other 1484 investment performance guarantees being forfeited as a result of 1485 the surrender. This section also applies to a person performing 1486 insurance agent activities pursuant to an exemption from 1487 licensure under this part. 1488 Section 39. Paragraph (b) of subsection (4) of section 1489 627.7015, Florida Statutes, is amended to read: 1490 627.7015 Alternative procedure for resolution of disputed 1491 property insurance claims.— 1492 (4) The department shall adopt by rule a property insurance 1493 mediation program to be administered by the department or its 1494 designee. The department may also adopt special rules which are 1495 applicable in cases of an emergency within the state. The rules 1496 shall be modeled after practices and procedures set forth in 1497 mediation rules of procedure adopted by the Supreme Court. The 1498 rules mustshallprovidefor: 1499 (b) Qualifications, denial of application, suspension, 1500 revocation of approval, and other penalties forofmediators as 1501 provided in s. 627.745 and in the Florida Rules forofCertified 1502 and Court-AppointedCourt AppointedMediators, and for such1503other individuals as are qualified by education, training, or1504experience as the department determines to be appropriate. 1505 Section 40. Section 627.70151, Florida Statutes, is created 1506 to read: 1507 627.70151 Appraisal; conflicts of interest.—An insurer that 1508 offers residential coverage, as defined in s. 627.4025, or a 1509 policyholder that uses an appraisal clause in the property 1510 insurance contract to establish a process for estimating or 1511 evaluating the amount of the loss through the use of an 1512 impartial umpire may challenge the umpire’s impartiality and 1513 disqualify the proposed umpire only if: 1514 (1) A familial relationship within the third degree exists 1515 between the umpire and a party or a representative of a party; 1516 (2) The umpire has previously represented a party or a 1517 representative of a party in a professional capacity in the same 1518 or a substantially related matter; 1519 (3) The umpire has represented another person in a 1520 professional capacity on the same or a substantially related 1521 matter, which includes the claim, same property, or an adjacent 1522 property and that other person’s interests are materially 1523 adverse to the interests of any party; or 1524 (4) The umpire has worked as an employer or employee of a 1525 party within the preceding 5 years. 1526 Section 41. Paragraph (c) of subsection (2) of section 1527 627.706, Florida Statutes, is amended to read: 1528 627.706 Sinkhole insurance; catastrophic ground cover 1529 collapse; definitions.— 1530 (2) As used in ss. 627.706-627.7074, and as used in 1531 connection with any policy providing coverage for a catastrophic 1532 ground cover collapse or for sinkhole losses, the term: 1533 (c) “Neutral evaluator” means a professional engineer or a 1534 professional geologist who has completed a course of study in 1535 alternative dispute resolution designed or approved by the 1536 department for use in the neutral evaluation process,andwho is 1537 determined by the department to be fair and impartial, and who 1538 is not otherwise ineligible for certification as provided in s. 1539 627.7074. 1540 Section 42. Subsections (3), (7), and (18) of section 1541 627.7074, Florida Statutes, are amended to read: 1542 627.7074 Alternative procedure for resolution of disputed 1543 sinkhole insurance claims.— 1544 (3) Following the receipt of the report requiredprovided1545 under s. 627.7073 or the denial of a claim for a sinkhole loss, 1546 the insurer shall notify the policyholder of his or her right to 1547 participate in the neutral evaluation program under this section 1548 if coverage is available under the policy and the claim was 1549 submitted within the timeframe provided in s. 627.706(5). 1550 Neutral evaluation supersedes the alternative dispute resolution 1551 process under s. 627.7015 but does not invalidate the appraisal 1552 clause of the insurance policy. The insurer shall provide to the 1553 policyholder the consumer information pamphlet prepared by the 1554 department pursuant to subsection (1) electronically or by 1555 United States mail. 1556 (7) Upon receipt of a request for neutral evaluation, the 1557 department shall provide the parties a list of certified neutral 1558 evaluators. The department shall allow the parties to submit 1559 requests for disqualifyingto disqualifyevaluators on the list 1560 for cause. 1561 (a) The department shall disqualify neutral evaluators for 1562 cause based only on any of the following grounds: 1563 1. A familial relationship exists between the neutral 1564 evaluator and either party or a representative of either party 1565 within the third degree. 1566 2. The proposed neutral evaluator has, in a professional 1567 capacity, previously represented either party or a 1568 representative of either party, in the same or a substantially 1569 related matter. 1570 3. The proposed neutral evaluator has, in a professional 1571 capacity, represented another person in the same or a 1572 substantially related matter and that person’s interests are 1573 materially adverse to the interests of the parties. The term 1574 “substantially related matter” means participation by the 1575 neutral evaluator on the same claim, property, or adjacent 1576 property. 1577 4. The proposed neutral evaluator has, within the preceding 1578 5 years, worked as an employer or employee of aanyparty to the 1579 case. 1580 (b) The department shall deny an application, or suspend or 1581 revoke the certification, of a neutral evaluator to serve in the 1582 neutral evaluator capacity if the department finds that one or 1583 more of the following grounds exist: 1584 1. Lack of one or more of the qualifications for 1585 certification specified in this section. 1586 2. Material misstatement, misrepresentation, or fraud in 1587 obtaining or attempting to obtain the certification. 1588 3. Demonstrated lack of fitness or trustworthiness to act 1589 as a neutral evaluator. 1590 4. Fraudulent or dishonest practices in the conduct of an 1591 evaluation or in the conduct of business in the financial 1592 services industry. 1593 5. Violation of any provision of this code or of a lawful 1594 order or rule of the department or aiding, instructing, or 1595 encouraging another party to commit such violation. 1596 (c)(b)The parties shall appoint a neutral evaluator from 1597 the department list and promptly inform the department. If the 1598 parties cannot agree to a neutral evaluator within 14 business 1599 days, the department shall appoint a neutral evaluator from the 1600 list of certified neutral evaluators. The department shall allow 1601 each party to disqualify two neutral evaluators without cause. 1602 Upon selection or appointment, the department shall promptly 1603 refer the request to the neutral evaluator. 1604 (d)(c)Within 14 business days after the referral, the 1605 neutral evaluator shall notify the policyholder and the insurer 1606 of the date, time, and place of the neutral evaluation 1607 conference. The conference may be held by telephone, if feasible 1608 and desirable. The neutral evaluator shall make reasonable 1609 efforts to hold the conference within 90 days after the receipt 1610 of the request by the department. Failure of the neutral 1611 evaluator to hold the conference within 90 days does not 1612 invalidate either party’s right to neutral evaluation or to a 1613 neutral evaluation conference held outside this timeframe. 1614 (18) The department shall adopt rules of procedure for the 1615 neutral evaluation process and for certifying, denying or 1616 suspending the certification of, and revoking certification as, 1617 a neutral evaluator. 1618 Section 43. Subsection (8) of section 627.711, Florida 1619 Statutes, is amended to read: 1620 627.711 Notice of premium discounts for hurricane loss 1621 mitigation; uniform mitigation verification inspection form.— 1622 (8) At its expense, the insurer may require that a uniform 1623 mitigation verification form provided by a policyholder, a 1624 policyholder’s agent, or an authorized mitigation inspector or 1625 inspection company be independently verified by an inspector, an 1626 inspection company, or an independent third-party quality 1627 assurance provider thatwhichpossesses a quality assurance 1628 program before accepting the uniform mitigation verification 1629 form as valid. The insurer may exempt from additional 1630 independent verification any uniform mitigation verification 1631 form provided by a policyholder, a policyholder’s agent, an 1632 authorized mitigation inspector, or an inspection company that 1633 possesses a quality assurance program that meets the standards 1634 established by the insurer. A uniform mitigation verification 1635 form provided by a policyholder, a policyholder’s agent, an 1636 authorized mitigation inspector, or an inspection company to 1637 Citizens Property Insurance Corporation is not subject to 1638 additional verification, and the property is not subject to 1639 reinspection by the corporation, absent material changes to the 1640 structure for the term stated on the form if the form signed by 1641 a qualified inspector was submitted to, reviewed, and verified 1642 by a quality assurance program approved by the corporation 1643 before submission to the corporation. 1644 Section 44. Subsections (1), (2), and (3) of section 1645 627.7283, Florida Statutes, are amended to read: 1646 627.7283 Cancellation; return of premium.— 1647 (1) If the insured cancels a policy of motor vehicle 1648 insurance, the insurer must mail or electronically transfer the 1649 unearned portion of any premium paid within 30 days after the 1650 effective date of the policy cancellation or receipt of notice 1651 or request for cancellation, whichever is later. This 1652 requirement applies to a cancellation initiated by an insured 1653 for any reason. 1654 (2) If an insurer cancels a policy of motor vehicle 1655 insurance, the insurer must mail or electronically transfer the 1656 unearned premium portion of any premium within 15 days after the 1657 effective date of the policy cancellation. 1658 (3) If the unearned premium is not mailed or electronically 1659 transferred within the applicable period, the insurer must pay 1660 to the insured 8 percent interest on the amount due. If the 1661 unearned premium is not mailed or electronically transferred 1662 within 45 days after the applicable period, the insured may 1663 bring an action against the insurer pursuant to s. 624.155. 1664 Section 45. Paragraph (a) of subsection (5) of section 1665 627.736, Florida Statutes, is amended to read: 1666 627.736 Required personal injury protection benefits; 1667 exclusions; priority; claims.— 1668 (5) CHARGES FOR TREATMENT OF INJURED PERSONS.— 1669 (a) A physician, hospital, clinic, or other person or 1670 institution lawfully rendering treatment to an injured person 1671 for a bodily injury covered by personal injury protection 1672 insurance may charge the insurer and injured party only a 1673 reasonable amount pursuant to this section for the services and 1674 supplies rendered, and the insurer providing such coverage may 1675 directly payforsuch chargesdirectlyto thesuchperson or 1676 institution lawfully renderingsuchtreatment if the insured 1677 receiving such treatment or his or her guardian has 1678 countersigned the properly completed invoice, bill, or claim 1679 form approved by the office upon which such charges are to be 1680 paidforas having actually been rendered, to the best knowledge 1681 of the insured or his or her guardian. However, such a charge 1682 may not exceed the amount the person or institution customarily 1683 charges for like services or supplies. In determining whether a 1684 charge for a particular service, treatment, or otherwise is 1685 reasonable, consideration may be given to evidence of usual and 1686 customary charges and payments accepted by the provider involved 1687 in the dispute, reimbursement levels in the community and 1688 various federal and state medical fee schedules applicable to 1689 motor vehicle and other insurance coverages, and other 1690 information relevant to the reasonableness of the reimbursement 1691for the service, treatment, or supply. 1692 1. The insurer may limit reimbursement to 80 percent of the 1693 following schedule of maximum charges: 1694 a. For emergency transport and treatment by providers 1695 licensed under chapter 401, 200 percent of Medicare. 1696 b. For emergency services and care provided by a hospital 1697 licensed under chapter 395, 75 percent of the hospital’s usual 1698 and customary charges. 1699 c. For emergency services and care as defined by s. 395.002 1700 provided in a facility licensed under chapter 395 rendered by a 1701 physician or dentist, and related hospital inpatient services 1702 rendered by a physician or dentist, the usual and customary 1703 charges in the community. 1704 d. For hospital inpatient services, other than emergency 1705 services and care, 200 percent of the Medicare Part A 1706 prospective payment applicable to the specific hospital 1707 providing the inpatient services. 1708 e. For hospital outpatient services, other than emergency 1709 services and care, 200 percent of the Medicare Part A Ambulatory 1710 Payment Classification for the specific hospital providing the 1711 outpatient services. 1712 f. For all other medical services, supplies, and care, 200 1713 percent of the allowable amount under: 1714 (I) The participating physicians fee schedule of Medicare 1715 Part B, except as provided in sub-sub-subparagraphs (II) and 1716 (III). 1717 (II) Medicare Part B, in the case of services, supplies, 1718 and care provided by ambulatory surgical centers and clinical 1719 laboratories. 1720 (III) The Durable Medical Equipment Prosthetics/Orthotics 1721 and Supplies fee schedule of Medicare Part B, in the case of 1722 durable medical equipment. 1723 1724 However, if such services, supplies, or care is not reimbursable 1725 under Medicare Part B, as provided in this sub-subparagraph, the 1726 insurer may limit reimbursement to 80 percent of the maximum 1727 reimbursable allowance under workers’ compensation, as 1728 determined under s. 440.13 and rules adopted thereunder which 1729 are in effect at the time such services, supplies, or care is 1730 provided. Services, supplies, or care that is not reimbursable 1731 under Medicare or workers’ compensation is not required to be 1732 reimbursed by the insurer. 1733 2. For purposes of subparagraph 1., the applicable fee 1734 schedule or payment limitation under Medicare is the fee 1735 schedule or payment limitation in effect on March 1 of the year 1736 in which the services, supplies, or care is rendered and for the 1737 area in which such services, supplies, or care is rendered, and 1738 the applicable fee schedule or payment limitation applies from 1739 March 1 until the last day of Februarythroughout the remainder1740 of the followingthatyear, notwithstanding any subsequent 1741 change made to the fee schedule or payment limitation, except 1742 that it may not be less than the allowable amount under the 1743 applicable schedule of Medicare Part B for 2007 for medical 1744 services, supplies, and care subject to Medicare Part B. 1745 3. Subparagraph 1. does not allow the insurer to apply a 1746anylimitation on the number of treatments or other utilization 1747 limits that apply under Medicare or workers’ compensation. An 1748 insurer that applies the allowable payment limitations of 1749 subparagraph 1. must reimburse a provider who lawfully provided 1750 care or treatment under the scope of his or her license, 1751 regardless of whether such provider is entitled to reimbursement 1752 under Medicare due to restrictions or limitations on the types 1753 or discipline of health care providers who may be reimbursed for 1754 particular procedures or procedure codes. However, subparagraph 1755 1. does not prohibit an insurer from using the Medicare coding 1756 policies and payment methodologies of the federal Centers for 1757 Medicare and Medicaid Services, including applicable modifiers, 1758 to determine the appropriate amount of reimbursement for medical 1759 services, supplies, or care if the coding policy or payment 1760 methodology does not constitute a utilization limit. 1761 4. If an insurer limits payment as authorized by 1762 subparagraph 1., the person providing such services, supplies, 1763 or care may not bill or attempt to collect from the insured any 1764 amount in excess of such limits, except for amounts that are not 1765 covered by the insured’s personal injury protection coverage due 1766 to the coinsurance amount or maximum policy limits. 1767 5.Effective July 1, 2012,An insurer may limit payment as 1768 authorized by this paragraph only if the insurance policy 1769 includes a notice at the time of issuance or renewal that the 1770 insurer may limit payment pursuant to the schedule of charges 1771 specified in this paragraph. A policy form approved by the 1772 office satisfies this requirement. If a provider submits a 1773 charge for an amount less than the amount allowed under 1774 subparagraph 1., the insurer may pay the amount of the charge 1775 submitted. 1776 Section 46. Subsection (1) and paragraphs (a) and (b) of 1777 subsection (2) of section 627.744, Florida Statutes, are amended 1778 to read: 1779 627.744 Required preinsurance inspection of private 1780 passenger motor vehicles.— 1781 (1) A private passenger motor vehicle insurance policy 1782 providing physical damage coverage, including collision or 1783 comprehensive coverage, may not be issued in this state unless 1784 the insurer has inspected the motor vehicle in accordance with 1785 this section. Physical damage coverage on a motor vehicle may 1786 not be suspended during the term of the policy due to the 1787 applicant’s failure to provide required documents. However, 1788 payment of a claim may be conditioned upon the insurer’s receipt 1789 of the required documents, and physical damage loss occurring 1790 after the effective date of coverage is not payable until the 1791 documents are provided to the insurer. 1792 (2) This section does not apply: 1793 (a) To a policy for a policyholder who has been insured for 1794 2 years or longer, without interruption, under a private 1795 passenger motor vehicle policy thatwhichprovides physical 1796 damage coverage for any vehicle,if the agent of the insurer 1797 verifies the previous coverage. 1798 (b) To a new, unused motor vehicle purchased or leased from 1799 a licensed motor vehicle dealer or leasing company,if the 1800 insurer is provided with: 1801 1. A bill of sale,orbuyer’s order, or lease agreement 1802 thatwhichcontains a full description of the motor vehicle,1803including all options and accessories; or 1804 2. A copy of the title or registration thatwhich1805 establishes transfer of ownership from the dealer or leasing 1806 company to the customer and a copy of the window stickeror the1807dealer invoice showing the itemized options and equipment and1808the total retail price of the vehicle. 1809 1810For the purposes of this paragraph, the physical damage coverage1811on the motor vehicle may not be suspended during the term of the1812policy due to the applicant’s failure to provide the required1813documents. However, payment of a claim is conditioned upon the1814receipt by the insurer of the required documents, and no1815physical damage loss occurring after the effective date of the1816coverage is payable until the documents are provided to the1817insurer.1818 Section 47. Paragraph (b) of subsection (3) of section 1819 627.745, Florida Statutes, is amended, present subsections (4) 1820 and (5) of that section are redesignated as subsections (5) and 1821 (6), respectively, and a new subsection (4) is added to that 1822 section, to read: 1823 627.745 Mediation of claims.— 1824 (3) 1825 (b) To qualify for approval as a mediator, an individuala1826personmust meet one of the following qualifications: 1827 1. Possess an active certification as a Florida Supreme 1828 Court certified circuit court mediator. A circuit court mediator 1829 whose certification is in a lapsed, suspended, or decertified 1830 status is not eligible to participate in the programa masters1831or doctorate degree in psychology, counseling, business,1832accounting, or economics, be a member of The Florida Bar, be1833licensed as a certified public accountant, or demonstrate that1834the applicant for approval has been actively engaged as a1835qualified mediator for at least 4 years prior to July 1, 1990. 1836 2. Be an approved department mediator as of July 1, 2014, 1837 and have conducted at least one mediation on behalf of the 1838 department within the 4 yearsimmediatelypreceding thatthe1839 datethe application for approval is filed with the department,1840have completed a minimum of a 40-hour training program approved1841by the department and successfully passed a final examination1842included in the training program and approved by the department. 1843The training program shall include and address all of the1844following:1845a. Mediation theory.1846b. Mediation process and techniques.1847c. Standards of conduct for mediators.1848d. Conflict management and intervention skills.1849e. Insurance nomenclature.1850 (4) The department shall deny an application, or suspend or 1851 revoke its approval of a mediator or certification of a neutral 1852 evaluator to serve in such capacity, if the department finds 1853 that any of the following grounds exist: 1854 (a) Lack of one or more of the qualifications for approval 1855 or certification specified in this section. 1856 (b) Material misstatement, misrepresentation, or fraud in 1857 obtaining, or attempting to obtain, the approval or 1858 certification. 1859 (c) Demonstrated lack of fitness or trustworthiness to act 1860 as a mediator or neutral evaluator. 1861 (d) Fraudulent or dishonest practices in the conduct of 1862 mediation or neutral evaluation or in the conduct of business in 1863 the financial services industry. 1864 (e) Violation of any provision of this code or of a lawful 1865 order or rule of the department, violation of the Florida Rules 1866 of Certified and Court Appointed Mediators, or aiding, 1867 instructing, or encouraging another party in committing such a 1868 violation. 1869 1870 The department may adopt rules to administer this subsection. 1871 Section 48. Subsection (8) of section 627.782, Florida 1872 Statutes, is amended to read: 1873 627.782 Adoption of rates.— 1874 (8) Each title insurance agency and insurer licensed to do 1875 business in this state and each insurer’s direct or retail 1876 business in this state shall maintain and submit information, 1877 including revenue, loss, and expense data, as the office 1878 determines necessary to assist in the analysis of title 1879 insurance premium rates, title search costs, and the condition 1880 of the title insurance industry in this state. This information 1881 must be transmitted to the office annually by MayMarch31 of 1882 the year after the reporting year. The commission shall adopt 1883 rules regarding the collection and analysis of the data from the 1884 title insurance industry. 1885 Section 49. Subsections (1), (3), (10), and (12) of section 1886 628.461, Florida Statutes, are amended to read: 1887 628.461 Acquisition of controlling stock.— 1888 (1) A person may not, individually or in conjunction with 1889 ananyaffiliated person of such person, acquire directly or 1890 indirectly, conclude a tender offer or exchange offer for, enter 1891 into any agreement to exchange securities for, or otherwise 1892 finally acquire 105percent or more of the outstanding voting 1893 securities of a domestic stock insurer or of a controlling 1894 company,unless: 1895 (a) The person or affiliated person has filed with the 1896 office and sent to the insurer and controlling company a letter 1897 of notification regarding the transaction or proposed 1898 transaction withinno later than5 days after any form of tender 1899 offer or exchange offer is proposed,or withinno later than5 1900 days after the acquisition of the securities if no tender offer 1901 or exchange offer is involved. The notification must be provided 1902 on forms prescribed by the commission containing information 1903 determined necessary to understand the transaction and identify 1904 all purchasers and owners involved; 1905 (b) The person or affiliated person has filed with the 1906 office a statement as specified in subsection (3). The statement 1907 must be completed and filed within 30 days after: 1908 1. Any definitive acquisition agreement is entered; 1909 2. Any form of tender offer or exchange offer is proposed; 1910 or 1911 3. The acquisition of the securities,if no definitive 1912 acquisition agreement, tender offer, or exchange offer is 1913 involved; and 1914 (c) The office has approved the tender or exchange offer, 1915 or acquisition if no tender offer or exchange offer is involved, 1916 and approval is in effect. 1917 1918In lieu of a filing as required under this subsection, a party1919acquiring less than 10 percent of the outstanding voting1920securities of an insurer may file a disclaimer of affiliation1921and control. The disclaimer shall fully disclose all material1922relationships and basis for affiliation between the person and1923the insurer as well as the basis for disclaiming the affiliation1924and control. After a disclaimer has been filed, the insurer1925shall be relieved of any duty to register or report under this1926section which may arise out of the insurer’s relationship with1927the person unless and until the office disallows the disclaimer.1928The office shall disallow a disclaimer only after furnishing all1929parties in interest with notice and opportunity to be heard and1930after making specific findings of fact to support the1931disallowance.A filing as required under this subsection must be 1932 made as to any acquisition that equals or exceeds 10 percent of 1933 the outstanding voting securities. 1934 (3) The statement to be filed with the office under 1935 subsection (1) and furnished to the insurer and controlling 1936 company mustshallcontain the following information and any 1937 additional informationasthe office deems necessary to 1938 determine the character, experience, ability, and other 1939 qualifications of the person or affiliated person of such person 1940 for the protection of the policyholders and shareholders of the 1941 insurer and the public: 1942 (a) The identity of, and the background information 1943 specified in subsection (4) on, each natural person by whom, or 1944 on whose behalf, the acquisition is to be made; and, if the 1945 acquisition is to be made by, or on behalf of, a corporation, 1946 association, or trust, as to the corporation, association, or 1947 trust and as to any person whocontrols eitherdirectly or 1948 indirectly controls the corporation, association, or trust, the 1949 identity of, and the background information specified in 1950 subsection (4) on, each director, officer, trustee, or other 1951 natural person performing duties similar to those of a director, 1952 officer, or trustee for the corporation, association, or trust; 1953 (b) The source and amount of the funds or other 1954 consideration used, or to be used, in making the acquisition; 1955 (c) Any plans or proposals thatwhichsuch persons may have 1956 made to liquidate such insurer, to sell any of its assets or 1957 merge or consolidate it with any person, or to make any other 1958 major change in its business or corporate structure or 1959 management; and any plans or proposals that which such persons 1960 may have made to liquidate any controlling company of such 1961 insurer, to sell any of its assets or merge or consolidate it 1962 with any person, or to make any other major change in its 1963 business or corporate structure or management; 1964 (d) The number of shares or other securities which the 1965 person or affiliated person of such person proposes to acquire, 1966 the terms of the proposed acquisition, and the manner in which 1967 the securities are to be acquired; and 1968 (e) Information as to any contract, arrangement, or 1969 understanding with any party with respect to any of the 1970 securities of the insurer or controlling company, including, but 1971 not limited to, information relating to the transfer of any of 1972 the securities, option arrangements, puts or calls, or the 1973 giving or withholding of proxies, which information names the 1974 party with whom the contract, arrangement, or understanding has 1975 been entered into and gives the details thereof. 1976 (10) Upon notification to the office by the domestic stock 1977 insurer or a controlling company that any person or any 1978 affiliated person of such person has acquired 105percent or 1979 more of the outstanding voting securities of the domestic stock 1980 insurer or controlling company without complying withthe1981provisions ofthis section, the office shall order that the 1982 person and any affiliated person of such person cease 1983 acquisition of any further securities of the domestic stock 1984 insurer or controlling company; however, the person or any 1985 affiliated person of such person may request a proceeding, which 1986proceedingshall be convened within 7 days after the rendering 1987 of the order for the sole purpose of determining whether the 1988 person, individually or in connection with ananyaffiliated 1989 person of such person, has acquired 105percent or more of the 1990 outstanding voting securities of a domestic stock insurer or 1991 controlling company. Upon the failure of the person or 1992 affiliated person to request a hearing within 7 days, or upon a 1993 determination at a hearing convened pursuant to this subsection 1994 that the person or affiliated person has acquired voting 1995 securities of a domestic stock insurer or controlling company in 1996 violation of this section, the office may order the person and 1997 affiliated person to divest themselves of any voting securities 1998 so acquired. 1999 (12)(a)A presumption of control may be rebutted by filing 2000 a disclaimer of control. A person may file a disclaimer of 2001 control with the office. The disclaimer must fully disclose all 2002 material relationships and bases for affiliation between the 2003 person and the insurer as well as the basis for disclaiming the 2004 affiliation. The disclaimer of control shall be filed on a form 2005 prescribed by the office, or a person or acquiring party may 2006 file with the office a copy of a Schedule 13G on file with the 2007 Securities and Exchange Commission pursuant to Rule 13d-1(b) or 2008 Rule 13d-1(c) under the Securities Exchange Act of 1934, as 2009 amended. After a disclaimer is filed, the insurer is relieved of 2010 any duty to register or report under this section which may 2011 arise out of the insurer’s relationship with the person, unless 2012 the office disallows the disclaimer.For the purpose of this2013section, the term “affiliated person” of another person means:20141. The spouse of such other person;20152. The parents of such other person and their lineal2016descendants and the parents of such other person’s spouse and2017their lineal descendants;20183. Any person who directly or indirectly owns or controls,2019or holds with power to vote, 5 percent or more of the2020outstanding voting securities of such other person;20214. Any person 5 percent or more of the outstanding voting2022securities of which are directly or indirectly owned or2023controlled, or held with power to vote, by such other person;20245. Any person or group of persons who directly or2025indirectly control, are controlled by, or are under common2026control with such other person;20276. Any officer, director, partner, copartner, or employee2028of such other person;20297. If such other person is an investment company, any2030investment adviser of such company or any member of an advisory2031board of such company;20328. If such other person is an unincorporated investment2033company not having a board of directors, the depositor of such2034company; or20359. Any person who has entered into an agreement, written or2036unwritten, to act in concert with such other person in acquiring2037or limiting the disposition of securities of a domestic stock2038insurer or controlling company.2039(b) For the purposes of this section, the term “controlling2040company” means any corporation, trust, or association owning,2041directly or indirectly, 25 percent or more of the voting2042securities of one or more domestic stock insurance companies.2043 Section 50. Subsection (11) of section 631.717, Florida 2044 Statutes, is amended to read: 2045 631.717 Powers and duties of the association.— 2046 (11) The association isshallnotbeliable for any civil 2047 action under s. 624.155 arising from any acts alleged to have 2048 been committed by a member insurer beforeprior toits 2049 liquidation.This subsection does not affect the association’s2050obligation to pay valid insurance policy or contract claims if2051warranted after its independent de novo review of the policies,2052contracts, and claims presented to it, whether domestic or2053foreign, after a Florida domestic rehabilitation or a2054liquidation.2055 Section 51. Section 631.737, Florida Statutes, is amended 2056 to read: 2057 631.737 Rescission and review generally.—The association 2058 shall review claims and matters regarding covered policies based 2059 upon the record available to it on and after the date of 2060 liquidation. Notwithstanding any other provision of this part, 2061 in order to allow for orderly claims administration by the 2062 association, entry of a liquidation order by a court of 2063 competent jurisdiction tollsshall be deemed to tollfor 1 year 2064 any rescission or noncontestable period allowed by the contract, 2065 the policy, or by law. The association’s obligation is to pay 2066 any valid insurance policy or contract claims, if warranted, 2067 after its independent de novo review of the policies, contracts, 2068 and claims presented to it, whether domestic or foreign, after a 2069 rehabilitation or a liquidation. 2070 Section 52. Subsections (6) and (7) of section 634.406, 2071 Florida Statutes, are amended to read: 2072 634.406 Financial requirements.— 2073 (6) An association thatwhichholds a license under this 2074 partand which does not hold any other license under this2075chaptermay allow its premiums for service warranties written 2076 under this part to exceed the ratio to net assets limitations of 2077 this section if the association meets all of the following 2078 conditions: 2079 (a) Maintains net assets of at least $750,000. 2080 (b) UsesUtilizesa contractual liability insurance policy 2081 approved by the office that:which2082 1. Reimburses the service warranty association for 100 2083 percent of its claims liability and is issued by an insurer that 2084 maintains a policyholder surplus of at least $100 million; or 2085 2. Complies with subsection (3) and is issued by an insurer 2086 that maintains a policyholder surplus of at least $200 million. 2087 (c) The insurer issuing the contractual liability insurance 2088 policy: 20891. Maintains a policyholder surplus of at least $1002090million.2091 1.2.Is rated “A” or higher by A.M. Best Company or an 2092 equivalent rating by another national rating service acceptable 2093 to the office. 20943. Is in no way affiliated with the warranty association.2095 2.4.In conjunction with the warranty association’s filing 2096 of the quarterly and annual reports, provides, on a form 2097 prescribed by the commission, a statement certifying the gross 2098 written premiums in force reported by the warranty association 2099 and a statement that all of the warranty association’s gross 2100 written premium in force is covered under the contractual 2101 liability policy, regardless of whetheror notit has been 2102 reported. 2103(7) A contractual liability policy must insure 100 percent2104of an association’s claims exposure under all of the2105association’s service warranty contracts, wherever written,2106unless all of the following are satisfied:2107(a) The contractual liability policy contains a clause that2108specifically names the service warranty contract holders as sole2109beneficiaries of the contractual liability policy and claims are2110paid directly to the person making a claim under the contract;2111(b) The contractual liability policy meets all other2112requirements of this part, including subsection (3) of this2113section, which are not inconsistent with this subsection;2114(c) The association has been in existence for at least 52115years or the association is a wholly owned subsidiary of a2116corporation that has been in existence and has been licensed as2117a service warranty association in the state for at least 52118years, and:21191. Is listed and traded on a recognized stock exchange; is2120listed in NASDAQ (National Association of Security Dealers2121Automated Quotation system) and publicly traded in the over-the2122counter securities market; is required to file either of Form212310-K, Form 100, or Form 20-G with the United States Securities2124and Exchange Commission; or has American Depository Receipts2125listed on a recognized stock exchange and publicly traded or is2126the wholly owned subsidiary of a corporation that is listed and2127traded on a recognized stock exchange; is listed in NASDAQ2128(National Association of Security Dealers Automated Quotation2129system) and publicly traded in the over-the-counter securities2130market; is required to file Form 10-K, Form 100, or Form 20-G2131with the United States Securities and Exchange Commission; or2132has American Depository Receipts listed on a recognized stock2133exchange and is publicly traded;21342. Maintains outstanding debt obligations, if any, rated in2135the top four rating categories by a recognized rating service;21363. Has and maintains at all times a minimum net worth of2137not less than $10 million as evidenced by audited financial2138statements prepared by an independent certified public2139accountant in accordance with generally accepted accounting2140principles and submitted to the office annually; and21414. Is authorized to do business in this state; and2142(d) The insurer issuing the contractual liability policy:21431. Maintains and has maintained for the preceding 5 years,2144policyholder surplus of at least $100 million and is rated “A”2145or higher by A.M. Best Company or has an equivalent rating by2146another rating company acceptable to the office;21472. Holds a certificate of authority to do business in this2148state and is approved to write this type of coverage; and21493. Acknowledges to the office quarterly that it insures all2150of the association’s claims exposure under contracts delivered2151in this state.2152 2153If all the preceding conditions are satisfied, then the scope of2154coverage under a contractual liability policy shall not be2155required to exceed an association’s claims exposure under2156service warranty contracts delivered in this state.2157 Section 53. Except as otherwise expressly provided in this 2158 act, this act shall take effect July 1, 2014.