Bill Text: FL S1836 | 2010 | Regular Session | Introduced


Bill Title: Title Insurance [CPSC]

Spectrum: Partisan Bill (Republican 1-0)

Status: (Failed) 2010-04-30 - Died in Committee on Banking and Insurance [S1836 Detail]

Download: Florida-2010-S1836-Introduced.html
 
       Florida Senate - 2010                                    SB 1836 
        
       By Senator Baker 
       20-01661-10                                           20101836__ 
    1                        A bill to be entitled                       
    2         An act relating to title insurance; amending s. 
    3         20.121, F.S.; creating the Division of Title Insurance 
    4         in the Department of Financial Services; creating part 
    5         I of ch. 637, F.S.; providing for administration of 
    6         title insurance and general provisions; providing a 
    7         short title; providing legislative findings, purposes, 
    8         and intent; creating the Division of Title Insurance 
    9         within the Department of Financial Services; providing 
   10         powers and duties; providing for appointment of a 
   11         division director; establishing the Bureau of Title 
   12         Insurance Premium Rates and Forms and the Bureau of 
   13         Title Insurance Licensing and Education within the 
   14         division; providing definitions; preempting to the 
   15         state the regulation of title insurance, title 
   16         insurers, and title insurance agencies; providing for 
   17         nonapplication of certain chapters; duplicating in ch. 
   18         637, F.S., certain provisions of chs. 624, 625, 626, 
   19         and 628, F.S., relating to insurance and making such 
   20         provisions applicable to title insurance, title 
   21         insurers, title insurance agents, and title insurance 
   22         agencies; creating s. 637.10335, F.S.; providing for 
   23         civil remedies against title insurers; providing 
   24         procedures, requirements, and limitations; providing 
   25         for award of damages, court costs, and attorney fees; 
   26         prohibiting punitive damages under certain 
   27         circumstances; providing construction prohibitions; 
   28         preserving certain remedies and causes of action; 
   29         creating s. 637.10435, F.S.; providing a Policyholders 
   30         Bill of Rights; specifying principles; providing a 
   31         construction prohibition; creating s. 637.10445, F.S.; 
   32         providing procedures, requirements, and limitations 
   33         for documents claimed as trade secrets; creating part 
   34         II of ch. 637, F.S.; providing for licensing and 
   35         administration of title insurers; duplicating in ch. 
   36         637, F.S., and making applicable to title insurers 
   37         certain provisions of ch. 624, F.S.; transferring to 
   38         ch. 637, F.S., certain provisions of chs. 625 and 627, 
   39         F.S., relating to title insurance; creating s. 
   40         637.20035, F.S.; providing for structure of title 
   41         insurers; creating s. 637.20635, F.S.; prohibiting 
   42         title insurers, title insurance agencies, and title 
   43         insurance agents from rebating portions of premiums; 
   44         providing exceptions; specifying rebate prohibitions; 
   45         creating s. 637.2091, F.S.; specifying that title 
   46         insurance business in exclusive; creating part III of 
   47         ch. 637, F.S.; providing for licensure and 
   48         administration of title insurance agents and agencies; 
   49         duplicating in ch. 637, F.S., and making applicable to 
   50         title insurance agents and agencies certain provisions 
   51         of ch. 626, F.S.; transferring to ch. 637, F.S., 
   52         certain provisions of ch. 626, F.S., relating to title 
   53         insurance agents and agencies; creating s. 637.30125, 
   54         F.S.; providing requirements for agents in charge; 
   55         providing for authority, duties, and responsibilities 
   56         of agents in charge; transferring regulation, 
   57         administration, and enforcement of title insurers from 
   58         the Office of Insurance Regulation and the Financial 
   59         Services Commission to the Department of Financial 
   60         Services and the Division of Title Insurance; deleting 
   61         references to the office and commission to conform; 
   62         amending ss. 624.5105 and 624.5107, F.S.; including 
   63         references to applicable sections of ch. 637, F.S., 
   64         under the community contribution tax credit program 
   65         and the child care tax credit program; specifying 
   66         rules of the Financial Services Commission and the 
   67         Office of Insurance Regulation as rules of the 
   68         department; transferring certain powers, duties, 
   69         functions, records, personnel, property, and 
   70         unexpended balances of appropriations, allocations, 
   71         and other funds relating to title insurance to the 
   72         department; preserving the validity of certain 
   73         judicial and administrative actions relating to title 
   74         insurance; providing for transfer of certain orders 
   75         relating to title insurance to the department; 
   76         requiring the Division of Statutory Revision to assist 
   77         substantive legislative committees in developing 
   78         conforming legislation; creating s. 689.263, F.S.; 
   79         prohibiting title insurance agents or title insurance 
   80         agencies from disbursing certain funds under certain 
   81         circumstances; providing requirements for a statement 
   82         of settlement costs; creating s. 717.1121, F.S.; 
   83         providing construction of certain payments from escrow 
   84         related to real estate transactions; amending s. 
   85         877.101, F.S.; providing an additional prohibition 
   86         against transacting escrow business by unauthorized 
   87         persons; revising cross-references for purposes of 
   88         nonapplication to licensed title insurance agents; 
   89         amending ss. 624.5015, 626.241, and 626.331, F.S.; 
   90         deleting provisions relating to title insures; 
   91         amending ss. 197.502, 624.501, 624.604, 624.605, 
   92         625.031, 626.207, 655.005, 701.041, and 721.05, F.S.; 
   93         conforming a cross-reference; repealing s. 624.4031, 
   94         F.S., relating to church benefit plans and church 
   95         benefits boards; repealing s. 624.608, F.S., relating 
   96         to the definition of “title insurance”; repealing s. 
   97         626.841, F.S., relating to definitions of “title 
   98         insurance agent” and “title insurance agency”; 
   99         repealing s. 626.8411, F.S., relating to application 
  100         of Florida Insurance Code provisions to title 
  101         insurance agents or agencies; repealing s. 626.9531, 
  102         F.S., relating to identification of insurers, agents, 
  103         and insurance contracts; repealing s. 627.7711, F.S., 
  104         relating to definitions; repealing s. 627.776, F.S., 
  105         relating to applicability or inapplicability of 
  106         Florida Insurance Code provisions to title insurers; 
  107         providing an effective date. 
  108   
  109  Be It Enacted by the Legislature of the State of Florida: 
  110   
  111         Section 1. Paragraph (o) is added to subsection (2) of 
  112  section 20.121, Florida Statutes, to read: 
  113         20.121 Department of Financial Services.—There is created a 
  114  Department of Financial Services. 
  115         (2) DIVISIONS.—The Department of Financial Services shall 
  116  consist of the following divisions: 
  117         (o) The Division of Title Insurance. 
  118         Section 2. Part I of chapter 637, Florida Statutes, 
  119  consisting of sections 637.1001, 637.1002, 637.1003, 637.1004, 
  120  637.10045, 637.1005, 637.1006, 637.1007, 637.1008, 637.1009, 
  121  637.1011, 637.1012, 637.1013, 637.1014, 637.1015, 637.1016, 
  122  637.1017, 637.1018, 637.1019, 637.1021, 637.1022, 637.1023, 
  123  637.1024, 637.1025, 637.1026, 637.1027, 637.1028, 637.1029, 
  124  637.1031, 637.1032, 637.1033, 637.10335, 637.1034, 637.1035, 
  125  637.1036, 637.1037, 637.1038, 637.1039, 637.1041, 637.1042, 
  126  637.1043, 637.10435, 637.1044, 637.10445, 637.1045, 637.1046, 
  127  637.1047, 637.1048, and 637.1049, is created and entitled 
  128  “ADMINISTRATION AND GENERAL PROVISIONS.” 
  129         Section 3. Sections 637.1001, 637.1002, 637.1003, 637.1004, 
  130  637.10045, 637.1005, 637.1006, 637.1007, 637.1008, 637.1009, 
  131  637.1011, 637.1012, 637.1013, 637.1014, 637.1015, 637.1016, 
  132  637.1017, 637.1018, 637.1019, 637.1021, 637.1022, 637.1023, 
  133  637.1024, 637.1025, 637.1026, 637.1027, 637.1029, 637.1031, 
  134  637.1032, 637.1033, 637.10335, 637.1034, 637.1035, 637.1036, 
  135  637.1037, 637.1038, 637.1039, 637.1041, 637.1042, 637.1043, 
  136  637.10435, 637.1044, 637.10445, 637.1045, 637.1046, 637.1047, 
  137  637.1048, and 637.1049, are created to read: 
  138         637.1001 Short title.—This chapter may be cited as the 
  139  “Florida Title Insurance Act.” 
  140         637.1002 Legislative findings; purpose; intent.— 
  141         (1) The Legislature finds that a stable and efficient title 
  142  insurance delivery system is necessary to promote the economic 
  143  wellbeing of the citizens of this state. Title insurance is 
  144  essential to ensure homeowners and landowners of the safety of 
  145  real property transfers in the state. Lienholders and investors 
  146  require the security afforded their business interests accorded 
  147  by a financially stable and regulated title insurance industry. 
  148  A viable title insurance delivery system requires comprehensive 
  149  state oversight, including regulation of title insurers, agents, 
  150  and agencies. Accordingly, it is the intent of the Legislature 
  151  to establish unitary regulation of the title insurance industry 
  152  by the creation of a Division of Title Insurance within the 
  153  Department of Financial Services. The division shall have 
  154  comprehensive authority to regulate insurer and agent solvency, 
  155  education, licensing, and discipline and to establish title 
  156  insurance premium rates and forms. 
  157         (2) The Legislature finds that title insurance is a unique 
  158  form of insurance unlike any casualty-based insurance. 
  159  Accordingly, a separate and distinct chapter of the Florida 
  160  Statutes is deemed appropriate. 
  161         (3) The Legislature recognizes that the title insurance 
  162  industry is founded upon a unique structure that requires title 
  163  agents and agencies to determine the insurability of titles, 
  164  thereby placing the title insurance agent at the cornerstone of 
  165  the delivery system. As such, the solvency and viability of 
  166  title insurance agents is essential. Therefore, the Legislature 
  167  deems it to be in the public interest to establish title 
  168  insurance rates that are adequate and to also establish 
  169  parameters for rebating portions of the title insurance premium. 
  170         637.1003 Division of Title Insurance.— 
  171         (1) The Division of Title Insurance is created within the 
  172  Department of Financial Services. The division shall exercise 
  173  all powers and duties with respect to title insurance 
  174  regulation, including those exercised by the Office of Insurance 
  175  Regulation and the Division of Insurance Agents and Agency 
  176  Services of the Department of Financial Services prior to July 
  177  1, 2010. The division director shall be appointed by the Chief 
  178  Financial Officer and shall have experience, education, and 
  179  expertise in the field of title insurance in this state. The 
  180  director may also be known as the Florida Title Insurance 
  181  Coordinator. 
  182         (2) The Division of Title Insurance shall consist of: 
  183         (a) The Bureau of Title Insurance Premium Rates and Forms. 
  184         (b) The Bureau of Title Insurance Licensing and Education. 
  185         637.1004 Definitions.—For purposes of this chapter, the 
  186  term: 
  187         (1) “Appointment” means the authority given by an insurer 
  188  or employer to a licensee to transact insurance or adjust claims 
  189  on behalf of an insurer or employer. 
  190         (2) “Attorney” as used in this part means an individual 
  191  duly admitted to and a member in good standing of The Florida 
  192  Bar. 
  193         (3) “Agent in charge” of a title insurance agency means an 
  194  attorney or a licensed and appointed title insurance agent who 
  195  is responsible for the overall operation and management of a 
  196  title insurance agency location and whose responsibilities 
  197  include supervising all individuals within that location. An 
  198  attorney or a title insurance agent may be designated as the 
  199  agent in charge for only one location of a single title 
  200  insurance agency. Each location of a title insurance agency or 
  201  insurer at which primary title services as defined in subsection 
  202  (18) are performed shall have a separate agent in charge. An 
  203  agency that has an attorney that is in charge of the agency 
  204  shall designate that attorney to be in charge of only one 
  205  location of a single title insurance agency. 
  206         (4) “Authorized” means provided authority pursuant to a 
  207  valid certificate of authority issued by the department to 
  208  transact insurance in this state. 
  209         (5) “Closing services” means services performed by a 
  210  licensed title insurer, title insurance agent or agency, or 
  211  attorney agent in the agent’s or agency’s capacity as such, 
  212  including, but not limited to, preparing documents necessary to 
  213  close the transaction, conducting the closing, or handling the 
  214  disbursing of funds related to the closing in a real estate 
  215  closing transaction in which a title insurance commitment or 
  216  policy is to be issued. 
  217         (6) “Commercially domiciled insurer” means every foreign or 
  218  alien insurer that is authorized to do business in this state 
  219  and that, during its 3 preceding fiscal years taken together, or 
  220  during any lesser period of time if it has been licensed to 
  221  transact its business in this state only for the lesser period 
  222  of time, has written an average of 25 percent or more direct 
  223  premiums in this state than it has written in its state of 
  224  domicile during the same period, and the direct premiums written 
  225  constitute more than 55 percent of its total direct premiums 
  226  written everywhere in the United States during its 3 preceding 
  227  fiscal years taken together, or during any lesser period of time 
  228  if it has been authorized to transact its business in this state 
  229  only for the lesser period of time, as reported in its most 
  230  recent applicable annual or quarterly statements, shall be 
  231  deemed a “commercially domiciled insurer” within this state. 
  232         (7) “Consent” means authorized written agreement to 
  233  supervision by the insurer. 
  234         (8) “Department” means the Department of Financial 
  235  Services. The term does not mean the Financial Services 
  236  Commission or any office of the Financial Services Commission. 
  237         (9) “Division” means the Division of Title Insurance of the 
  238  department. 
  239         (10) “Domestic,” “foreign,” and “alien” mean: 
  240         (a) A “domestic” insurer is one formed under the laws of 
  241  this state. 
  242         (b) A “foreign” insurer is one formed under the laws of any 
  243  state, district, territory, or commonwealth of the United States 
  244  other than this state. 
  245         (c) An “alien” insurer is an insurer other than a domestic 
  246  or foreign insurer. 
  247         (11) “Domicile,” except as provided in s. 631.011, means: 
  248         (a) As to Canadian insurers, Canada and the province under 
  249  the laws of which the insurer was formed. 
  250         (b) As to other alien insurers authorized to transact 
  251  insurance in one or more states, the state designated by the 
  252  insurer in writing filed with the department at the time of 
  253  admission to this state or within 6 months after the effective 
  254  date of this chapter, whichever date is the later, and may be 
  255  any of the following states: 
  256         1. That in which the insurer was first authorized to 
  257  transact insurance if the insurer is still so authorized. 
  258         2. That in which is located the insurer’s principal place 
  259  of business in the United States. 
  260         3. That in which is held the larger deposit of trusteed 
  261  assets of the insurer for the protection of its policyholders 
  262  and creditors in the United States. 
  263  If the insurer makes no such designation, its domicile shall be 
  264  deemed to be that state in which is located its principal place 
  265  of business in the United States. 
  266         (c) As to alien insurers not authorized to transact 
  267  insurance in one or more states, the country under the laws of 
  268  which the insurer was formed. 
  269         (d) As to all other insurers, the state under the laws of 
  270  which the insurer was formed. 
  271         (12) “Exceeded its powers” means the following conditions: 
  272         (a) The insurer has refused to permit examination by the 
  273  department of its books, papers, accounts, records, or business 
  274  practices; 
  275         (b) An insurer organized in this state has unlawfully 
  276  removed from this state books, papers, accounts, or records 
  277  necessary for an examination of the insurer by the department; 
  278         (c) The insurer has failed to promptly comply with the 
  279  applicable financial reporting statutes and division requests 
  280  relating thereto; 
  281         (d) The insurer has neglected or refused to observe an 
  282  order of the department to correct a deficiency in its capital 
  283  or surplus; or 
  284         (e) The insurer has unlawfully or in violation of a 
  285  department order: 
  286         1. Totally reinsured its entire outstanding business; or 
  287         2. Merged or consolidated substantially its entire property 
  288  or business with another insurer. 
  289         (13) “Insurer” means and includes every person as defined 
  290  in subsection (16) and title insurer as defined in subsection 
  291  (23) as limited to any domestic or commercially domiciled 
  292  insurer who is doing business as an insurer, or has transacted 
  293  insurance in this state, and against whom claims arising from 
  294  that transaction may exist now or in the future. 
  295         (14) “License” means a document issued by the department or 
  296  office authorizing a person to be appointed to transact 
  297  insurance or adjust claims for the kind, line, or class of 
  298  insurance identified in the document. 
  299         (15)(a) “Managing general agent” means any person managing 
  300  all or part of the insurance business of an insurer, including 
  301  the management of a separate division, department, or 
  302  underwriting office, and acting as an agent for that insurer, 
  303  whether known as a managing general agent, manager, or other 
  304  similar term, who, with or without authority, separately or 
  305  together with affiliates, produces, directly or indirectly, or 
  306  underwrites an amount of gross direct written premium equal to 
  307  or more than 5 percent of the policyholder surplus as reported 
  308  in the last annual statement of the insurer in any single 
  309  quarter or year and also does one or more of the following: 
  310         1. Adjusts or pays claims. 
  311         2. Negotiates reinsurance on behalf of the insurer. 
  312         (b) The following persons shall not be considered managing 
  313  general agents: 
  314         1. An employee of the insurer. 
  315         2. A United States manager of the United States branch of 
  316  an alien insurer. 
  317         3. An underwriting manager managing all the insurance 
  318  operations of the insurer pursuant to a contract who is under 
  319  the common control of the insurer subject to regulation and 
  320  whose compensation is not based on the volume of premiums 
  321  written. 
  322         4. The attorney in fact authorized by and acting for the 
  323  subscribers of a reciprocal insurer under powers of attorney. 
  324         (16) “Person” means an individual, insurer, company, 
  325  association, organization, Lloyds, society, reciprocal insurer 
  326  or interinsurance exchange, partnership, syndicate, business 
  327  trust, corporation, agent, general agent, broker, service 
  328  representative, adjuster, and every legal entity. 
  329         (17) “Premium” means the charge, as specified by rule of 
  330  the department, that is made by a title insurer for a title 
  331  insurance policy, including the charge for performance of 
  332  primary title services by a title insurer or title insurance 
  333  agent or agency, and incurring the risks incident to such 
  334  policy, under the several classifications of title insurance 
  335  contracts and forms, and upon which charge a premium tax is paid 
  336  under s. 624.509. As used in this part or in any other law, with 
  337  respect to title insurance, the word “premium” does not include 
  338  a commission. 
  339         (18) “Primary title services” means determining 
  340  insurability in accordance with sound underwriting practices 
  341  based upon evaluation of a reasonable title search or a search 
  342  of the records of a Uniform Commercial Code filing office and 
  343  such other information as may be necessary, determination and 
  344  clearance of underwriting objections and requirements to 
  345  eliminate risk, preparation and issuance of a title insurance 
  346  commitment setting forth the requirements to insure, and 
  347  preparation and issuance of the policy. Such services do not 
  348  include closing services or title searches, for which a separate 
  349  charge or separate charges may be made. 
  350         (19) When used in context signifying a jurisdiction other 
  351  than the State of Florida, “state” means any state, district, 
  352  territory, or commonwealth of the United States. 
  353         (20) “Title insurance” means: 
  354         (a) Insurance of owners of real property or others having 
  355  an interest in real property or a contractual interest derived 
  356  from real property, or liens or encumbrances on real property, 
  357  against loss by encumbrance, or defective titles, or invalidity, 
  358  or adverse claim to title; or 
  359         (b) Insurance of owners and secured parties of the 
  360  existence, attachment, perfection, and priority of security 
  361  interests in personal property under the Uniform Commercial 
  362  Code. 
  363         (21) “Title insurance agent” means a person appointed in 
  364  writing by a title insurer to issue and countersign commitments 
  365  or policies of title insurance on the title insurer’s behalf. 
  366         (22) “Title insurance agency” means a business at which an 
  367  individual, firm, partnership, corporation, association, or 
  368  other entity, other than an employee of the individual, firm, 
  369  partnership, corporation, association, or other entity, and 
  370  under which a title insurance agent or other employee, 
  371  determines insurability in accordance with underwriting rules 
  372  and standards prescribed by the title insurer represented by the 
  373  title insurance agency and issues and countersigns commitments, 
  374  endorsements, or policies of title insurance on behalf of the 
  375  appointing title insurer. The term does not include a title 
  376  insurer. 
  377         (23) “Title insurer” means any domestic company organized 
  378  and authorized to do business under the provisions of this 
  379  chapter, for the purpose of issuing title insurance, or any 
  380  insurer organized under the laws of another state, the District 
  381  of Columbia, or a foreign country and holding a certificate of 
  382  authority to transact business in this state, for the purpose of 
  383  issuing title insurance. 
  384         (24) “Title search” means the compiling of title 
  385  information from official or public records. 
  386         (25) “Transact” means, with respect to insurance and in 
  387  addition to other applicable provisions of this chapter: 
  388         (a) Solicitation or inducement. 
  389         (b) Preliminary negotiations. 
  390         (c) Effectuation of a contract of insurance. 
  391         (d) Transaction of matters subsequent to effectuation of a 
  392  contract of insurance and arising out of it. 
  393         (26) “Unsound condition” means that the department has 
  394  determined that one or more of the following conditions exist 
  395  with respect to an insurer: 
  396         (a) The insurer’s required surplus, capital, or capital 
  397  stock is impaired to an extent prohibited by law; 
  398         (b) The insurer continues to write new business when it has 
  399  not maintained the required surplus or capital stock; 
  400         (c) The insurer attempts to dissolve or liquidate without 
  401  first having made provisions, satisfactory to the department, 
  402  for liabilities arising from insurance policies issued by the 
  403  insurer; or 
  404         (d) The insurer meets one or more of the grounds in s. 
  405  631.051 for the appointment of the department as receiver. 
  406         637.10045 Preemption to state.—The regulation of title 
  407  insurance, title insurers, and title insurance agencies is 
  408  preempted to the state. 
  409         637.1005 General applicability of other chapters.— 
  410         (1) The provisions of chapters 624, 626, and 627 do not 
  411  apply to title insurers or their agents unless specifically 
  412  incorporated by reference and made applicable to this chapter by 
  413  a provision of this chapter. 
  414         (2) The provisions of chapters 625, 628, and 631 apply to 
  415  title insurance and for purposes of applying such provisions to 
  416  title insurance, the term “department” shall be interpreted to 
  417  mean office and the term “Director of the Division of Insurance 
  418  Regulation” shall be interpreted to mean the “Florida Title 
  419  Insurance Coordinator,” “Director of the Division of Title 
  420  Insurance,” or “division director.” 
  421         637.1006 General powers; duties.— 
  422         (1) The powers and duties of the Chief Financial Officer 
  423  and the department specified in this chapter apply only with 
  424  respect to title insurance agents and title insurance agencies. 
  425         (2) The department shall enforce the provisions of this 
  426  chapter and shall execute the duties imposed upon the department 
  427  by this chapter, as provided by law. 
  428         (3) The department shall have the powers and authority 
  429  expressly conferred upon it by, or reasonably implied from, the 
  430  provisions of this chapter. 
  431         (4) The department may conduct such investigations of 
  432  insurance matters, in addition to investigations expressly 
  433  authorized, as it may deem proper to determine whether any 
  434  person has violated any provision of this chapter within its 
  435  respective regulatory jurisdiction or to secure information 
  436  useful in the lawful administration of any such provision. The 
  437  cost of such investigations shall be borne by the state. 
  438         (5) The department may each collect, propose, publish, and 
  439  disseminate information relating to the subject matter of any 
  440  duties imposed upon it by law. 
  441         (6) The department shall each have such additional powers 
  442  and duties as may be provided by other laws of this state. 
  443         (7) The department may employ actuaries who shall be at 
  444  will employees and who shall serve at the pleasure of the Chief 
  445  Financial Officer, in the case of department employees. 
  446  Actuaries employed pursuant to this subsection shall be members 
  447  of the Society of Actuaries or the Casualty Actuarial Society 
  448  and shall be exempt from the Career Service System established 
  449  under chapter 110. The salaries of the actuaries employed 
  450  pursuant to this paragraph shall be set in accordance with s. 
  451  216.251(2)(a)5. and shall be set at levels which are 
  452  commensurate with salary levels paid to actuaries by the 
  453  insurance industry. 
  454         (8) The department shall, within existing resources, 
  455  develop and implement an outreach program for the purpose of 
  456  encouraging the entry of additional insurers into the Florida 
  457  market. 
  458         (9) Upon receiving service of legal process issued in any 
  459  civil action or proceeding in this state against any regulated 
  460  person required to appoint the Chief Financial Officer as its 
  461  attorney to receive service of all legal process, the Chief 
  462  Financial Officer, as attorney, may, in lieu of sending the 
  463  process by registered or certified mail, send the process by any 
  464  other verifiable means to the person last designated by the 
  465  regulated person to receive the process. 
  466         (10) This section does not limit the authority of the 
  467  department and the Division of Insurance Fraud, as specified in 
  468  s. 637.1046. 
  469         (11) The division may enforce violations of the Real Estate 
  470  Settlement Procedures Act, 12 U.S.C. ss. 2601 et seq. 
  471         637.1007 Rules.— 
  472         (1) The department may adopt rules pursuant to ss. 
  473  120.536(1) and 120.54 to implement provisions of this chapter 
  474  and interpret the specific powers and duties provided in this 
  475  chapter, which rules may: 
  476         (a) Define the license and appointment requirements for 
  477  title insurance agents and agencies. 
  478         (b) Establish penalty guidelines for enforcing the 
  479  requirements of this chapter. 
  480         (c) Describe the fiduciary responsibilities of title 
  481  insurance agents and agencies, including, but not limited to, 
  482  duties related to escrow accounts. 
  483         (d) Identify the responsibilities, duties, and designations 
  484  of the agent in charge of the title insurance agency or the 
  485  attorney in charge of an attorney-owned title insurance agency. 
  486         (e) Enable the collection of information from agents and 
  487  agencies relating to title insurance business. 
  488         (f) Set reasonable requirements for the timely recording of 
  489  documents and the delivery of final title policies. 
  490         (g) Establish rules for the protection, calculation, and 
  491  timely remittance of premiums that are owed to title insurers. 
  492         (h) Prohibit the markup of the cost of any third-party 
  493  services by the closing agent without adding value. 
  494         (2) In addition to any other penalty provided, willful 
  495  violation of any such rule shall subject the violator to such 
  496  suspension or revocation of certificate of authority or license 
  497  as may be applicable under this chapter as for violation of the 
  498  provision as to which such rule relates. 
  499         637.1008 General penalty.— 
  500         (1) Each willful violation of this chapter or rule of the 
  501  department as to which a greater penalty is not provided by 
  502  another provision of this chapter or rule of the department or 
  503  by other applicable laws of this state is a misdemeanor of the 
  504  second degree and is, in addition to any prescribed applicable 
  505  denial, suspension, or revocation of certificate of authority, 
  506  license, or permit, punishable as provided in s. 775.082 or s. 
  507  775.083. Each instance of such violation shall be considered a 
  508  separate offense. 
  509         (2) Each willful violation of an emergency rule or order of 
  510  the department by a person who is not licensed, authorized, or 
  511  eligible to engage in business in accordance with this chapter 
  512  is a felony of the third degree, punishable as provided in s. 
  513  775.082, s. 775.083, or s. 775.084. Each instance of such 
  514  violation is a separate offense. This subsection does not apply 
  515  to licensees or affiliated parties of licensees. 
  516         637.1009 Enforcement; cease and desist orders; removal of 
  517  certain persons; fines.— 
  518         (1) DEFINITIONS.—For the purposes of this section, the 
  519  term: 
  520         (a) “Affiliated party” means any person who directs or 
  521  participates in the conduct of the affairs of a licensee and who 
  522  is: 
  523         1. A director, officer, employee, trustee, committee 
  524  member, or controlling stockholder of a licensee or a subsidiary 
  525  or service corporation of the licensee, other than a controlling 
  526  stockholder which is a holding company, or an agent of a 
  527  licensee or a subsidiary or service corporation of the licensee; 
  528         2. A person who has filed or is required to file a 
  529  statement or any other information required to be filed under s. 
  530  628.461 or s. 628.4615; 
  531         3. A stockholder, other than a stockholder that is a 
  532  holding company of the licensee, who participates in the conduct 
  533  of the affairs of the licensee; or 
  534         4. An independent contractor who: 
  535         a. Renders a written opinion required by the laws of this 
  536  state under her or his professional credentials on behalf of the 
  537  licensee, which opinion is reasonably relied on by the 
  538  department in the performance of its duties; or 
  539         b. Affirmatively and knowingly conceals facts, through a 
  540  written misrepresentation to the department, with knowledge that 
  541  such misrepresentation: 
  542         (I) Constitutes a violation of this chapter or a lawful 
  543  rule or order of the department; and 
  544         (II) Directly and materially endangers the ability of the 
  545  licensee to meet its obligations to policyholders. 
  546   
  547  For the purposes of this subparagraph, any representation of 
  548  fact made by an independent contractor on behalf of a licensee, 
  549  affirmatively communicated as a representation of the licensee 
  550  to the independent contractor, shall not be considered a 
  551  misrepresentation by the independent contractor. 
  552         (b) “Licensee” means a person issued a license or 
  553  certificate of authority or approval under this chapter or a 
  554  person registered under a provision of this chapter. 
  555         (2) ENFORCEMENT GENERALLY.— 
  556         (a) The powers granted by this section to the department 
  557  apply only with respect to licensees of the department and their 
  558  affiliated parties and to unlicensed persons subject to 
  559  regulatory jurisdiction of the department. 
  560         (b) The department may institute such suits or other legal 
  561  proceedings as may be required to enforce any provision of this 
  562  chapter within the department’s regulatory jurisdiction. If it 
  563  appears that any person has violated any provision of this 
  564  chapter for which criminal prosecution is provided, the 
  565  department shall provide the appropriate state attorney or other 
  566  prosecuting agency having jurisdiction with respect to such 
  567  prosecution with the relevant information in its possession. 
  568         (3) CEASE AND DESIST ORDERS.— 
  569         (a) The department may issue and serve a complaint stating 
  570  charges upon any licensee or upon any affiliated party, whenever 
  571  the department has reasonable cause to believe that the person 
  572  or individual named therein is engaging in or has engaged in 
  573  conduct that is: 
  574         1. An act that demonstrates a lack of fitness or 
  575  trustworthiness to engage in the business of insurance, is 
  576  hazardous to the insurance buying public, or constitutes 
  577  business operations that are a detriment to policyholders, 
  578  stockholders, investors, creditors, or the public; 
  579         2. A violation of any provision of this chapter; 
  580         3. A violation of any rule of the department; 
  581         4. A violation of any order of the department; or 
  582         5. A breach of any written agreement with the department. 
  583         (b) The complaint shall contain a statement of facts and 
  584  notice of opportunity for a hearing pursuant to ss. 120.569 and 
  585  120.57. 
  586         (c) If no hearing is requested within the time allowed by 
  587  ss. 120.569 and 120.57, or if a hearing is held and the 
  588  department finds that any of the charges are proven, the 
  589  department may enter an order directing the licensee or the 
  590  affiliated party named in the complaint to cease and desist from 
  591  engaging in the conduct complained of and take corrective action 
  592  to remedy the effects of past improper conduct and assure future 
  593  compliance. 
  594         (d) If the licensee or affiliated party named in the order 
  595  fails to respond to the complaint within the time allotted by 
  596  ss. 120.569 and 120.57, the failure constitutes a default and 
  597  justifies the entry of a cease and desist order. 
  598         (e) A contested or default cease and desist order is 
  599  effective when reduced to writing and served upon the licensee 
  600  or affiliated party named therein. An uncontested cease and 
  601  desist order is effective as agreed. 
  602         (f) Whenever the department finds that conduct described in 
  603  paragraph (a) is likely to cause insolvency, substantial 
  604  dissipation or misvaluation of assets or earnings of the 
  605  licensee, substantial inability to pay claims on a timely basis, 
  606  or substantial prejudice to prospective or existing insureds, 
  607  policyholders, subscribers, or the public, it may issue an 
  608  emergency cease and desist order requiring the licensee or any 
  609  affiliated party to immediately cease and desist from engaging 
  610  in the conduct complained of and to take corrective and remedial 
  611  action. The emergency order is effective immediately upon 
  612  service of a copy of the order upon the licensee or affiliated 
  613  party named therein and remains effective for 90 days. If the 
  614  department begins nonemergency cease and desist proceedings 
  615  under this subsection, the emergency order remains effective 
  616  until the conclusion of the proceedings under ss. 120.569 and 
  617  120.57. 
  618         (4) REMOVAL OF AFFILIATED PARTIES.— 
  619         (a) The department may issue and serve a complaint stating 
  620  charges upon any affiliated party and upon the licensee 
  621  involved, whenever the department has reason to believe that an 
  622  affiliated party is engaging in or has engaged in conduct that 
  623  constitutes: 
  624         1. An act that demonstrates a lack of fitness or 
  625  trustworthiness to engage in the business of insurance through 
  626  engaging in illegal activity or mismanagement of business 
  627  activities; 
  628         2. A willful violation of any law relating to the business 
  629  of insurance; however, if the violation constitutes a 
  630  misdemeanor, no complaint shall be served as provided in this 
  631  section until the affiliated party is notified in writing of the 
  632  matter of the violation and has been afforded a reasonable 
  633  period of time, as set forth in the notice, to correct the 
  634  violation and has failed to do so; 
  635         3. A violation of any other law involving fraud or moral 
  636  turpitude that constitutes a felony; 
  637         4. A willful violation of any rule of the department; 
  638         5. A willful violation of any order of the department; 
  639         6. A material misrepresentation of fact, made knowingly and 
  640  willfully or made with reckless disregard for the truth of the 
  641  matter; or 
  642         7. An act of commission or omission or a practice which is 
  643  a breach of trust or a breach of fiduciary duty. 
  644         (b) The complaint shall contain a statement of facts and 
  645  notice of opportunity for a hearing pursuant to ss. 120.569 and 
  646  120.57. 
  647         (c) If no hearing is requested within the time allotted by 
  648  ss. 120.569 and 120.57, or if a hearing is held and the 
  649  department finds that any of the charges in the complaint are 
  650  proven true and that: 
  651         1. The licensee has suffered or will likely suffer loss or 
  652  other damage; 
  653         2. The interests of the policyholders, creditors, or public 
  654  are, or could be, seriously prejudiced by reason of the 
  655  violation or act or breach of fiduciary duty; 
  656         3. The affiliated party has received financial gain by 
  657  reason of the violation, act, or breach of fiduciary duty; or 
  658         4. The violation, act, or breach of fiduciary duty is one 
  659  involving personal dishonesty on the part of the affiliated 
  660  party or the conduct jeopardizes or could reasonably be 
  661  anticipated to jeopardize the financial soundness of the 
  662  licensee, 
  663   
  664  The department may enter an order removing the affiliated party 
  665  or restricting or prohibiting participation by the person in the 
  666  affairs of that particular licensee or of any other licensee. 
  667         (d) If the affiliated party fails to respond to the 
  668  complaint within the time allotted by ss. 120.569 and 120.57, 
  669  the failure constitutes a default and justifies the entry of an 
  670  order of removal, suspension, or restriction. 
  671         (e) A contested or default order of removal, restriction, 
  672  or prohibition is effective when reduced to writing and served 
  673  on the licensee and the affiliated party. An uncontested order 
  674  of removal, restriction, or prohibition is effective as agreed. 
  675         (f)1. The chief executive officer, or the person holding 
  676  the equivalent office, of a licensee shall promptly notify the 
  677  department that issued the license if she or he has actual 
  678  knowledge that any affiliated party is charged with a felony in 
  679  a state or federal court. 
  680         2. Whenever any affiliated party is charged with a felony 
  681  in a state or federal court or with the equivalent of a felony 
  682  in the courts of any foreign country with which the United 
  683  States maintains diplomatic relations, and the charge alleges 
  684  violation of any law involving fraud, theft, or moral turpitude, 
  685  the department may enter an emergency order suspending the 
  686  affiliated party or restricting or prohibiting participation by 
  687  the affiliated party in the affairs of the particular licensee 
  688  or of any other licensee upon service of the order upon the 
  689  licensee and the affiliated party charged. The order shall 
  690  contain notice of opportunity for a hearing pursuant to ss. 
  691  120.569 and 120.57, where the affiliated party may request a 
  692  postsuspension hearing to show that continued service to or 
  693  participation in the affairs of the licensee does not pose a 
  694  threat to the interests of the licensee’s policyholders or 
  695  creditors and does not threaten to impair public confidence in 
  696  the licensee. In accordance with applicable rules, the 
  697  department shall notify the affiliated party whether the order 
  698  suspending or prohibiting the person from participation in the 
  699  affairs of a licensee will be rescinded or otherwise modified. 
  700  The emergency order remains in effect, unless otherwise modified 
  701  by the department, until the criminal charge is disposed of. The 
  702  acquittal of the person charged, or the final, unappealed 
  703  dismissal of all charges against the person, dissolves the 
  704  emergency order, but does not prohibit the department from 
  705  instituting proceedings under paragraph (a). If the person 
  706  charged is convicted or pleads guilty or nolo contendere, 
  707  whether or not an adjudication of guilt is entered by the court, 
  708  the emergency order shall become final. 
  709         (g) Any affiliated party removed from office pursuant to 
  710  this section is not eligible for reelection or appointment to 
  711  the position or to any other official position in any licensee 
  712  in this state except upon the written consent of the department. 
  713  Any affiliated party who is removed, restricted, or prohibited 
  714  from participation in the affairs of a licensee pursuant to this 
  715  section may petition the department for modification or 
  716  termination of the removal, restriction, or prohibition. 
  717         (h) Resignation or termination of an affiliated party does 
  718  not affect the department’s jurisdiction to proceed under this 
  719  subsection. 
  720         (5) ADMINISTRATIVE FINES; ENFORCEMENT.— 
  721         (a) The department, in a proceeding initiated pursuant to 
  722  chapter 120, impose an administrative fine against any person 
  723  found in the proceeding to have violated any provision of this 
  724  chapter, a cease and desist order of the department, or any 
  725  written agreement with the department. A proceeding may not be 
  726  initiated and a fine may not accrue until after the person has 
  727  been notified in writing of the nature of the violation and has 
  728  been afforded a reasonable period of time, as set forth in the 
  729  notice, to correct the violation and has failed to do so. 
  730         (b) A fine imposed under this subsection may not exceed the 
  731  amounts specified in s. 637.2021, per violation. 
  732         (c) In addition to the imposition of an administrative fine 
  733  under this subsection, the department may also suspend or revoke 
  734  the license or certificate of authority of the licensee fined 
  735  under this subsection. 
  736         (d) Any administrative fine levied by the department under 
  737  this subsection may be enforced by the department by appropriate 
  738  proceedings in the circuit court of the county in which the 
  739  person resides or in which the principal office of a licensee is 
  740  located, or, in the case of a foreign insurer or person not 
  741  residing in this state, in Leon County. In any administrative or 
  742  judicial proceeding arising under this section, a party may 
  743  elect to correct the violation asserted by the department, and, 
  744  upon doing so, any fine shall cease to accrue; however, the 
  745  election to correct the violation does not render any 
  746  administrative or judicial proceeding moot. All fines collected 
  747  under this section shall be paid to the Title Insurance 
  748  Regulatory Trust Fund. 
  749         (e) In imposing any administrative penalty or remedy 
  750  provided for under this section, the department shall take into 
  751  account the appropriateness of the penalty with respect to the 
  752  size of the financial resources and the good faith of the person 
  753  charged, the gravity of the violation, the history of previous 
  754  violations, and other matters as justice may require. 
  755         (f) The imposition of an administrative fine under this 
  756  subsection may be in addition to any other penalty or 
  757  administrative fine authorized under this chapter. 
  758         (6) ADMINISTRATIVE PROCEDURES.—All administrative 
  759  proceedings under subsections (3), (4), and (5) shall be 
  760  conducted in accordance with chapter 120. Any service required 
  761  or authorized to be made by the department under this chapter 
  762  shall be made by certified mail, return receipt requested, 
  763  delivered to the addressee only; by personal delivery; or in 
  764  accordance with chapter 48. The service provided for herein 
  765  shall be effective from the date of delivery. 
  766         (7) CRIMINAL ENFORCEMENT.—It is unlawful for any affiliated 
  767  party who is removed or prohibited from participation in the 
  768  affairs of a licensee pursuant to this section, or for any 
  769  licensee whose rights or privileges under such license have been 
  770  suspended or revoked pursuant to this chapter, to knowingly act 
  771  as an affiliated party as defined in this section or to 
  772  knowingly transact insurance until expressly authorized to do so 
  773  by the department. Such authorization by the department may not 
  774  be provided unless the affiliated party or the licensee has made 
  775  restitution, if applicable, to all parties damaged by the 
  776  actions of the affiliated party or the licensee which served as 
  777  the basis for the removal or prohibition of the affiliated party 
  778  or the suspension or revocation of the rights and privileges of 
  779  the licensee. Any person who violates the provisions of this 
  780  subsection commits a felony of the third degree, punishable as 
  781  provided in s. 775.082, s. 775.083 or s. 775.084. 
  782         637.1011 Immunity from civil liability for providing 
  783  department with information about condition of insurer.—A 
  784  person, other than a person filing a required report or other 
  785  required information, who provides the department with 
  786  information about the financial condition of an insurer is 
  787  immune from civil liability arising out of the provision of the 
  788  information unless the person acted with knowledge that the 
  789  information was false or with reckless disregard for the truth 
  790  or falsity of the information. 
  791         637.1012 Records; reproductions; destruction.— 
  792         (1) Except as provided in this section, the department 
  793  shall each preserve in permanent form records of its 
  794  proceedings, hearings, investigations, and examinations and 
  795  shall file such records in its department. 
  796         (2) The department may photograph, microphotograph, or 
  797  reproduce on film, or maintain in an electronic recordkeeping 
  798  system, all financial records, financial statements of domestic 
  799  insurers, reports of business transacted in this state by 
  800  foreign insurers and alien insurers, reports of examination of 
  801  domestic insurers, and such other records and documents on file 
  802  in the department as the department may in its discretion 
  803  select. 
  804         (3) To facilitate the efficient use of floor space and 
  805  filing equipment in its offices, the department may destroy the 
  806  following records and documents pursuant to chapter 257: 
  807         (a) General closed correspondence files over 3 years old. 
  808         (b) Title insurance and similar license files, over 2 years 
  809  old; except that the department shall preserve by reproduction 
  810  or otherwise a copy of the original records upon the basis of 
  811  which each such licensee qualified for her or his initial 
  812  license, except a competency examination, and of any 
  813  disciplinary proceeding affecting the licensee. 
  814         (c) All title insurance agent and similar license files and 
  815  records, including original license qualification records and 
  816  records of disciplinary proceedings 5 years after a licensee has 
  817  ceased to be qualified for a license. 
  818         (d) Insurer certificate of authority files over 2 years 
  819  old, except that the department shall preserve by reproduction 
  820  or otherwise a copy of the initial certificate of authority of 
  821  each insurer. 
  822         (e) All documents and records which have been photographed 
  823  or otherwise reproduced as provided in subsection (2), if such 
  824  reproductions have been filed and an audit of the department has 
  825  been completed for the period embracing the dates of such 
  826  documents and records. 
  827         (f) All other records, documents, and files not expressly 
  828  provided for in paragraphs (a)-(e). 
  829         637.1013 Reproductions and certified copies of records as 
  830  evidence.— 
  831         (1) Photographs or microphotographs in the form of film or 
  832  prints, or other reproductions from an electronic recordkeeping 
  833  system, of documents and records made under s. 637.1012(2), or 
  834  made under former s. 624.311(3) before October 1, 1982, shall 
  835  have the same force and effect as the originals thereof and 
  836  shall be treated as originals for the purpose of their 
  837  admissibility in evidence. Duly certified or authenticated 
  838  reproductions of such photographs, microphotographs, or other 
  839  reproductions from an electronic recordkeeping system shall be 
  840  as admissible in evidence as the originals. 
  841         (2) Upon the request of any person and payment of the 
  842  applicable fee, the department shall give a certified copy of 
  843  any record in its department which is then subject to public 
  844  inspection. 
  845         (3) Copies of original records or documents in its 
  846  department certified by the department shall be received in 
  847  evidence in all courts as if they were originals. 
  848         637.1014 Publications.— 
  849         (1) As early as reasonably possible, the department shall 
  850  annually have printed and made available a statistical report 
  851  which must include all of the following information on either a 
  852  calendar year or fiscal year basis: 
  853         (a) The total amount of premiums written and earned for 
  854  title insurance. 
  855         (b) The total amount of losses paid and losses incurred for 
  856  title insurance. 
  857         (c) The ratio of premiums written to losses paid by title 
  858  insurance. 
  859         (d) The ratio of premiums earned to losses incurred by 
  860  title insurance. 
  861         (e) The market share of the 10 largest insurers or insurer 
  862  groups of title insurance and of each insurer or insurer group 
  863  that has a market share of at least 1 percent of a line of 
  864  insurance in this state. 
  865         (f) The profitability of title insurance. 
  866         (g) An analysis of the impact of the insurance industry on 
  867  the economy of the state. 
  868         (h) A complaint ratio by line of insurance for the insurers 
  869  referred to in paragraph (e), based upon information provided to 
  870  the department by the department. The department shall determine 
  871  the most appropriate ratio or ratios for quantifying complaints. 
  872         (i) A summary of the findings of market examinations 
  873  performed by the department under s. 637.1018 during the 
  874  preceding year. 
  875         (j) Such other information as the department deems 
  876  relevant. 
  877         (2) The department may prepare and have printed and 
  878  published in pamphlet or book form, as needed, questions and 
  879  answers for the use of persons applying for an examination for 
  880  licensing as title insurance agents. 
  881         (3) The department shall sell the publications mentioned in 
  882  subsections (1) and (2) to purchasers at a price fixed by the 
  883  department at not less than the cost of printing and binding 
  884  such publications, plus packaging and postage costs for mailing; 
  885  except that the department may deliver copies of such 
  886  publications free of cost to state agencies and officers; 
  887  insurance supervisory authorities of other states and 
  888  jurisdictions; institutions of higher learning located in 
  889  Florida; the Library of Congress; insurance officers of Naval, 
  890  Military, and Air Force bases located in this state; and to 
  891  persons serving as advisers to the department in preparation of 
  892  the publications. 
  893         (4) The department may contract with outside vendors, in 
  894  accordance with chapter 287, to compile data in an electronic 
  895  data processing format that is compatible with the systems of 
  896  the department. 
  897         637.1015 Sale of publications; deposit of proceeds.—The 
  898  department shall deposit all moneys received from the sale of 
  899  publications under s. 637.1014 in the Title Insurance Regulatory 
  900  Trust Fund for the purpose of paying costs for the preparation, 
  901  printing, and delivery of the publications required in s. 
  902  637.1014(2), packaging and mailing costs, and banking, 
  903  accounting, and incidental expenses connected with the sale and 
  904  delivery of such publications. All moneys deposited into and all 
  905  funds transferred to the Title Insurance Regulatory Trust Fund 
  906  are appropriated for such uses and purposes. 
  907         637.1016 Department; annual report.— 
  908         (1) As early as reasonably possible, the department shall 
  909  annually prepare a report to the Speaker and Minority Leader of 
  910  the House of Representatives, the President and Minority Leader 
  911  of the Senate, the chairs of the legislative committees with 
  912  jurisdiction over matters of insurance, and the Governor 
  913  showing, with respect to the preceding calendar year: 
  914         (a) Names of the authorized insurers transacting insurance 
  915  in this state, with abstracts of their financial statements 
  916  including assets, liabilities, and net worth. 
  917         (b) Names of insurers whose business was closed during the 
  918  year, the cause thereof, and amounts of assets and liabilities 
  919  as ascertainable. 
  920         (c) Names of insurers against which delinquency or similar 
  921  proceedings were instituted, and a concise statement of the 
  922  circumstances and results of each such proceeding. 
  923         (d) The receipts and estimated expenses of the department 
  924  for the year. 
  925         (e) Such other pertinent information and matters as the 
  926  department deems to be in the public interest. 
  927         (f) Annually after each regular session of the Legislature, 
  928  a compilation of the laws of this state relating to insurance. 
  929  Any such publication may be printed, revised, or reprinted upon 
  930  the basis of the original low bid. 
  931         (g) An analysis and summary report of the state of the 
  932  insurance industry in this state evaluated as of the end of the 
  933  most recent calendar year. 
  934         (2) The department shall maintain the following information 
  935  and make such information available upon request: 
  936         (a) Calendar year profitability, including investment 
  937  income from loss reserves (Florida and countrywide). 
  938         (b) Aggregate Florida loss reserves. 
  939         (c) Premiums written (Florida and countrywide). 
  940         (d) Premiums earned (Florida and countrywide). 
  941         (e) Incurred losses (Florida and countrywide). 
  942         (f) Paid losses (Florida and countrywide). 
  943         (g) Allocated Florida loss adjustment expenses. 
  944         (h) Variation of premiums charged by the industry as 
  945  compared to rates promulgated by the Insurance Services Office 
  946  (Florida and countrywide). 
  947         (i) An analysis of policy size limits (Florida and 
  948  countrywide). 
  949         (j) Trends; emerging trends as exemplified by the 
  950  percentage change in frequency and severity of both paid and 
  951  incurred claims, and pure premium (Florida and countrywide). 
  952         (3) The department may contract with outside vendors, in 
  953  accordance with chapter 287, to compile data in an electronic 
  954  data processing format that is compatible with the systems of 
  955  the department. 
  956         637.1017 Examination of insurers.— 
  957         (1)(a) The department shall examine the affairs, 
  958  transactions, accounts, records, and assets of each authorized 
  959  insurer as to its transactions affecting the insurer as often as 
  960  it deems advisable, except as provided in this section. The 
  961  examination may include examination of the affairs, 
  962  transactions, accounts, and records relating directly or 
  963  indirectly to the insurer and of the assets of the insurer’s 
  964  managing general agents and controlling or controlled person, as 
  965  defined in s. 625.012. The examination shall be pursuant to a 
  966  written order of the department. Such order shall expire upon 
  967  receipt by the department of the written report of the 
  968  examination. 
  969         (b) The department shall examine each insurer according to 
  970  accounting procedures designed to fulfill the requirements of 
  971  generally accepted insurance accounting principles and practices 
  972  and good internal control and in keeping with generally accepted 
  973  accounting forms, accounts, records, methods, and practices 
  974  relating to insurers. To facilitate uniformity in examinations, 
  975  the department may adopt, by rule, the Market Conduct Examiners 
  976  Handbook and the Financial Condition Examiners Handbook of the 
  977  National Association of Insurance Commissioners, 2002, and may 
  978  adopt subsequent amendments thereto, if the examination 
  979  methodology remains substantially consistent. 
  980         (2)(a) Except as provided in paragraph (f), the department 
  981  may examine each insurer as often as may be warranted for the 
  982  protection of the policyholders and in the public interest, and 
  983  shall examine each domestic insurer not less frequently than 
  984  once every 5 years. The examination shall cover the preceding 5 
  985  fiscal years of the insurer and shall be commenced within 12 
  986  months after the end of the most recent fiscal year being 
  987  covered by the examination. The examination may cover any period 
  988  of the insurer’s operations since the last previous examination. 
  989  The examination may include examination of events subsequent to 
  990  the end of the most recent fiscal year and the events of any 
  991  prior period that affect the present financial condition of the 
  992  insurer. 
  993         (b) The department shall examine each insurer applying for 
  994  an initial certificate of authority to transact insurance in 
  995  this state before granting the initial certificate. 
  996         (c) In lieu of making its own examination, the department 
  997  may accept a full report of the last recent examination of a 
  998  foreign insurer, certified to by the insurance supervisory 
  999  official of another state. 
 1000         (d) The examination by the department of an alien insurer 
 1001  shall be limited to the alien insurer’s insurance transactions 
 1002  and affairs in the United States, except as otherwise required 
 1003  by the department. 
 1004         (e) The department shall adopt rules providing that an 
 1005  examination under this section may be conducted by independent 
 1006  certified public accountants, actuaries, investment specialists, 
 1007  information technology specialists, and reinsurance specialists 
 1008  meeting criteria specified by rule. The rules shall provide: 
 1009         1. That the rates charged to the insurer being examined are 
 1010  consistent with rates charged by other firms in a similar 
 1011  profession and are comparable with the rates charged for 
 1012  comparable examinations. 
 1013         2. That the firm selected by the department to perform the 
 1014  examination has no conflicts of interest that might affect its 
 1015  ability to independently perform its responsibilities on the 
 1016  examination. 
 1017         3. That the insurer being examined must make payment for 
 1018  the examination pursuant to s. 637.1023(1) in accordance with 
 1019  the rates and terms established by the department and the firm 
 1020  performing the examination. 
 1021         (f) An examination under this section must be conducted at 
 1022  least once every year with respect to a domestic insurer that 
 1023  has continuously held a certificate of authority for less than 3 
 1024  years. The examination must cover the preceding fiscal year or 
 1025  the period since the last examination of the insurer. The 
 1026  department may limit the scope of the examination. 
 1027         637.1018 Market conduct examinations.— 
 1028         (1) As often as it deems necessary, the department shall 
 1029  examine each licensed rating organization, each advisory 
 1030  organization, each group, association, carrier, as defined in s. 
 1031  440.02, or other organization of insurers which engages in joint 
 1032  underwriting or joint reinsurance, and each authorized insurer 
 1033  transacting in this state any class of insurance to which the 
 1034  provisions of this chapter are applicable. The examination shall 
 1035  be for the purpose of ascertaining compliance by the person 
 1036  examined with the applicable provisions of this chapter. 
 1037         (2) In lieu of any such examination, the department may 
 1038  accept the report of a similar examination made by the insurance 
 1039  supervisory official of another state. 
 1040         (3) The examination may be conducted by an independent 
 1041  professional examiner under contract to the department, in which 
 1042  case payment shall be made directly to the contracted examiner 
 1043  by the insurer examined in accordance with the rates and terms 
 1044  agreed to by the department and the examiner. 
 1045         (4) The reasonable cost of the examination shall be paid by 
 1046  the person examined, and such person shall be subject, as though 
 1047  an insurer, to the provisions of s. 637.1023. 
 1048         (5) Such examinations shall also be subject to the 
 1049  applicable provisions of chapter 440 and ss. 637.1021, 637.1022, 
 1050  637.1024, and 637.1025. 
 1051         637.1019 Investigation of title insurance agents and 
 1052  others.—If the department has reason to believe that any title 
 1053  insurance agent has violated or is violating any provision of 
 1054  this chapter, or upon the written complaint signed by any 
 1055  interested person indicating that any such violation may exist: 
 1056         (1) The department shall conduct such investigation as it 
 1057  deems necessary of the accounts, records, documents, and 
 1058  transactions pertaining to or affecting the insurance affairs of 
 1059  any title insurance agent, title insurance agency, customer 
 1060  representative, service representative, or other person subject 
 1061  to its jurisdiction. 
 1062         (2) The department shall conduct such investigation as it 
 1063  deems necessary of the accounts, records, documents, and 
 1064  transactions pertaining to or affecting the insurance affairs of 
 1065  any: 
 1066         (a) Administrator, service company, or other person subject 
 1067  to its jurisdiction. 
 1068         (b) Person having a contract or power of attorney under 
 1069  which she or he enjoys in fact the exclusive or dominant right 
 1070  to manage or control an insurer. 
 1071         (c) Person engaged in or proposing to be engaged in the 
 1072  promotion or formation of: 
 1073         1. A domestic insurer; 
 1074         2. An insurance holding corporation; or 
 1075         3. A corporation to finance a domestic insurer or in the 
 1076  production of the domestic insurer’s business. 
 1077         (3) In the investigation by the department of the alleged 
 1078  misconduct, the licensee shall, whenever required by the 
 1079  department, cause his or her books and records to be open for 
 1080  inspection for the purpose of such inquiries. 
 1081         (4) A complaint against any licensee may be informally 
 1082  alleged and need not be in any language necessary to charge a 
 1083  crime on an indictment or information. 
 1084         (5) The expense for any hearings or investigations under 
 1085  this section, as well as the fees and mileage of witnesses, may 
 1086  be paid out of the appropriate fund. 
 1087         (6) If the department, after investigation, has reason to 
 1088  believe that a licensee may have been found guilty of or pleaded 
 1089  guilty or nolo contendere to a felony or a crime related to the 
 1090  business of insurance in this or any other state or 
 1091  jurisdiction, the department or office may require the licensee 
 1092  to file with the department or office a complete set of his or 
 1093  her fingerprints, which shall be accompanied by the fingerprint 
 1094  processing fee set forth in s. 637.2031. The fingerprints shall 
 1095  be taken by an authorized law enforcement agency or other 
 1096  department-approved entity. 
 1097         637.1021 Conduct of examination or investigation; access to 
 1098  records; correction of accounts; appraisals.— 
 1099         (1) The examination or investigation may be conducted by 
 1100  the accredited examiners or investigators of the department at 
 1101  the offices wherever located of the person being examined or 
 1102  investigated and at such other places as may be required for 
 1103  determination of matters under examination or investigation. In 
 1104  the case of alien insurers, the examination may be so conducted 
 1105  in the insurer’s offices and places in the United States, except 
 1106  as otherwise required by the department. 
 1107         (2) Every person being examined or investigated, and its 
 1108  officers, attorneys, employees, agents, and representatives, 
 1109  shall make freely available to the department or its examiners 
 1110  or investigators the accounts, records, documents, files, 
 1111  information, assets, and matters in their possession or control 
 1112  relating to the subject of the examination or investigation. An 
 1113  agent who provides other products or services or maintains 
 1114  customer information not related to insurance must maintain 
 1115  records relating to insurance products and transactions 
 1116  separately if necessary to give the department access to such 
 1117  records. If records relating to the insurance transactions are 
 1118  maintained by an agent on premises owned or operated by a third 
 1119  party, the agent and the third party must provide access to the 
 1120  records by the department. 
 1121         (3) If the department finds any accounts or records to be 
 1122  inadequate, or inadequately kept or posted, it may employ 
 1123  experts to reconstruct, rewrite, post, or balance them at the 
 1124  expense of the person being examined if such person has failed 
 1125  to maintain, complete, or correct such records or accounting 
 1126  after the department has given her or him notice and a 
 1127  reasonable opportunity to do so. 
 1128         (4) If the department deems it necessary to value any asset 
 1129  involved in such an examination of an insurer, it may make 
 1130  written request of the insurer to designate one or more 
 1131  competent appraisers acceptable to the department, who shall 
 1132  promptly make an appraisal of the asset and furnish a copy 
 1133  thereof to the department. If the insurer fails to designate 
 1134  such an appraiser or appraisers within 20 days after the request 
 1135  of the department, the department may designate the appraiser or 
 1136  appraisers. The reasonable expense of any such appraisal shall 
 1137  be a part of the expense of examination, to be borne by the 
 1138  insurer. 
 1139         (5) Neither the department nor any examiner shall remove 
 1140  any record, account, document, file, or other property of the 
 1141  person being examined from the offices of such person except 
 1142  with the written consent of such person given in advance of such 
 1143  removal or pursuant to an order of court duly obtained. 
 1144         (6) Any individual who willfully obstructs the department 
 1145  or the examiner in the examinations or investigations authorized 
 1146  by this part is guilty of a misdemeanor and upon conviction 
 1147  shall be punished as provided in s. 624.15. 
 1148         (7) The department or its examiners or investigators may 
 1149  electronically scan accounts, records, documents, files, and 
 1150  information, relating to the subject of the examination or 
 1151  investigation, in the possession or control of the person being 
 1152  examined or investigated. 
 1153         637.1022 Examination and investigation reports.— 
 1154         (1) The department or its examiner shall make a full and 
 1155  true written report of each examination. The examination report 
 1156  shall contain only information obtained from examination of the 
 1157  records, accounts, files, and documents of or relative to the 
 1158  insurer examined or from testimony of individuals under oath, 
 1159  together with relevant conclusions and recommendations of the 
 1160  examiner based thereon. The department shall furnish a copy of 
 1161  the examination report to the insurer examined not less than 30 
 1162  days prior to filing the examination report in its office. If 
 1163  such insurer so requests in writing within such 30-day period, 
 1164  the department shall grant a hearing with respect to the 
 1165  examination report and shall not so file the examination report 
 1166  until after the hearing and after such modifications have been 
 1167  made therein as the department deems proper. 
 1168         (2) The examination report when so filed shall be 
 1169  admissible in evidence in any action or proceeding brought by 
 1170  the department against the person examined, or against its 
 1171  officers, employees, or agents. In all other proceedings, the 
 1172  admissibility of the examination report is governed by the 
 1173  evidence code. The department or its examiners may at any time 
 1174  testify and offer other proper evidence as to information 
 1175  secured or matters discovered during the course of an 
 1176  examination, whether or not a written report of the examination 
 1177  has been either made, furnished, or filed with the department. 
 1178         (3) After the examination report has been filed pursuant to 
 1179  subsection (1), the department may publish the results of any 
 1180  such examination in one or more newspapers published in this 
 1181  state whenever it deems it to be in the public interest. 
 1182         (4) After the examination report of an insurer has been 
 1183  filed pursuant to subsection (1), an affidavit shall be filed 
 1184  with the department, not more than 30 days after the report has 
 1185  been filed, on a form furnished by the department and signed by 
 1186  the officer of the company in charge of the insurer’s business 
 1187  in this state, stating that she or he has read the report and 
 1188  that the recommendations made in the report will be considered 
 1189  within a reasonable time. 
 1190         637.1023 Examination expenses.— 
 1191         (1) Each insurer so examined shall pay to the department 
 1192  the expenses of the examination at the rates adopted by the 
 1193  department. Such expenses shall include actual travel expenses, 
 1194  reasonable living expense allowance, compensation of the 
 1195  examiner or other person making the examination, and necessary 
 1196  attendant administrative costs of the department directly 
 1197  related to the examination. Such travel expense and living 
 1198  expense allowance shall be limited to those expenses necessarily 
 1199  incurred on account of the examination and shall be paid by the 
 1200  examined insurer together with compensation upon presentation by 
 1201  the department to such insurer of a detailed account of such 
 1202  charges and expenses after a detailed statement has been filed 
 1203  by the examiner and approved by the department. 
 1204         (2) All moneys collected from insurers for examinations 
 1205  shall be deposited into the Title Insurance Regulatory Trust 
 1206  Fund, and the department may make deposits from time to time 
 1207  into such fund from moneys appropriated for the operation of the 
 1208  department. 
 1209         (3) Notwithstanding the provisions of s. 112.061, the 
 1210  department may pay to the examiner or person making the 
 1211  examination out of such trust fund the actual travel expenses, 
 1212  reasonable living expense allowance, and compensation in 
 1213  accordance with the statement filed with the department by the 
 1214  examiner or other person, as provided in subsection (1) upon 
 1215  approval by the department. 
 1216         (4) When not examining an insurer, the travel expenses, per 
 1217  diem, and compensation for the examiners and other persons 
 1218  employed to make examinations, if approved, shall be paid out of 
 1219  moneys budgeted for such purpose as regular employees, 
 1220  reimbursements for such travel expenses and per diem to be at 
 1221  rates no more than as provided in s. 112.061. 
 1222         (5) The department may pay to regular insurance examiners, 
 1223  not residents of Leon County, Florida, per diem for periods not 
 1224  exceeding 30 days for each such examiner while at the Department 
 1225  of Financial Services in Tallahassee, Florida, for the purpose 
 1226  of auditing insurers’ annual statements. Such expenses shall be 
 1227  paid out of moneys budgeted for such purpose, as for regular 
 1228  employees at rates provided in s. 112.061. 
 1229         (6) The provisions of this section shall apply to rate 
 1230  analysts and rate examiners in the discharge of their duties 
 1231  under s. 637.1018. 
 1232         637.1024 Witnesses and evidence.— 
 1233         (1) As to any examination, investigation, or hearing being 
 1234  conducted under this chapter, a person designated by the 
 1235  department: 
 1236         (a) May administer oaths, examine and cross-examine 
 1237  witnesses, receive oral and documentary evidence. 
 1238         (b) May subpoena witnesses, compel their attendance and 
 1239  testimony, and require by subpoena the production of books, 
 1240  papers, records, files, correspondence, documents, or other 
 1241  evidence which is relevant to the inquiry. 
 1242         (2) If any person refuses to comply with any such subpoena 
 1243  or to testify as to any matter concerning which she or he may be 
 1244  lawfully interrogated, the Circuit Court of Leon County or of 
 1245  the county wherein such examination, investigation, or hearing 
 1246  is being conducted, or of the county wherein such person 
 1247  resides, may, on the application of the department, issue an 
 1248  order requiring such person to comply with the subpoena and to 
 1249  testify. 
 1250         (3) Subpoenas shall be served, and proof of such service 
 1251  made, in the same manner as if issued by a circuit court. 
 1252  Witness fees, cost, and reasonable travel expenses, if claimed, 
 1253  shall be allowed the same as for testimony in a circuit court. 
 1254         637.1025 Testimony compelled; immunity from prosecution.— 
 1255         (1) If any natural person asks to be excused from attending 
 1256  or testifying or from producing any books, papers, records, 
 1257  contracts, documents, or other evidence in connection with any 
 1258  examination, hearing, or investigation being conducted by the 
 1259  department or its examiner, on the ground that the testimony or 
 1260  evidence required of her or him may tend to incriminate the 
 1261  person or subject her or him to a penalty or forfeiture, and 
 1262  shall notwithstanding be directed to give such testimony or 
 1263  produce such evidence, the person must, if so directed by the 
 1264  department and the Department of Legal Affairs, nonetheless 
 1265  comply with such direction; but she or he shall not thereafter 
 1266  be prosecuted or subjected to any penalty or forfeiture for or 
 1267  on account of any transaction, matter, or thing concerning which 
 1268  she or he may have so testified or produced evidence; and no 
 1269  testimony so given or evidence produced shall be received 
 1270  against the person upon any criminal action, investigation, or 
 1271  proceeding. However, no such person so testifying shall be 
 1272  exempt from prosecution or punishment for any perjury committed 
 1273  by her or him in such testimony, and the testimony or evidence 
 1274  so given or produced shall be admissible against her or him upon 
 1275  any criminal action, investigation, or proceeding concerning 
 1276  such perjury. No license or permit conferred or to be conferred 
 1277  to such person shall be refused, suspended, or revoked based 
 1278  upon the use of such testimony. 
 1279         (2) Any such individual may execute, acknowledge, and file 
 1280  with the department, as appropriate, a statement expressly 
 1281  waiving such immunity or privilege in respect to any 
 1282  transaction, matter, or thing specified in such statement; and 
 1283  thereupon the testimony of such individual or such evidence in 
 1284  relation to such transaction, matter, or thing may be received 
 1285  or produced before any judge or justice, court, tribunal, grand 
 1286  jury, or otherwise; and, if so received or produced, such 
 1287  individual shall not be entitled to any immunity or privileges 
 1288  on account of any testimony she or he may so give or evidence so 
 1289  produced. 
 1290         637.1026 Hearings.—The department may hold hearings for any 
 1291  purpose within the scope of this chapter deemed to be necessary. 
 1292         637.1027 Authority of Department of Law Enforcement to 
 1293  accept fingerprints of, and exchange criminal history records 
 1294  with respect to, certain persons.— 
 1295         (1) The Department of Law Enforcement may accept 
 1296  fingerprints of organizers, incorporators, subscribers, 
 1297  officers, stockholders, directors, or any other persons 
 1298  involved, directly or indirectly, in the organization, 
 1299  operation, or management of: 
 1300         (a) Any insurer or proposed insurer transacting or 
 1301  proposing to transact insurance in this state. 
 1302         (b) Any other entity which is examined or investigated or 
 1303  which is eligible to be examined or investigated under the 
 1304  provisions of this chapter. 
 1305         (2) The Department of Law Enforcement may accept 
 1306  fingerprints of individuals who apply for a license as a title 
 1307  insurance agent, service representative, or managing general 
 1308  agent or the fingerprints of the majority owner, sole 
 1309  proprietor, partners, officers, and directors of a corporation 
 1310  or other legal entity that applies for licensure with the 
 1311  department under the provisions of this chapter. 
 1312         (3) The Department of Law Enforcement may, to the extent 
 1313  provided for by federal law, exchange state, multistate, and 
 1314  federal criminal history records with the department for the 
 1315  purpose of the issuance, denial, suspension, or revocation of a 
 1316  certificate of authority, certification, or license to operate 
 1317  in this state. 
 1318         (4) The Department of Law Enforcement may accept 
 1319  fingerprints of any other person required by statute or rule to 
 1320  submit fingerprints to the department or any applicant or 
 1321  licensee regulated by the department who is required to 
 1322  demonstrate that he or she has not been convicted of or pled 
 1323  guilty or nolo contendere to a felony or a misdemeanor. 
 1324         (5) The Department of Law Enforcement shall, upon receipt 
 1325  of fingerprints from the department, submit the fingerprints to 
 1326  the Federal Bureau of Investigation to check federal criminal 
 1327  history records. 
 1328         (6) Statewide criminal records obtained through the 
 1329  Department of Law Enforcement, federal criminal records obtained 
 1330  through the Federal Bureau of Investigation, and local criminal 
 1331  records obtained through local law enforcement agencies shall be 
 1332  used by the department for the purpose of issuance, denial, 
 1333  suspension, or revocation of certificates of authority, 
 1334  certifications, or licenses issued to operate in this state. 
 1335         637.1029 Declaration of purpose.—The purpose of ss. 
 1336  637.1029-637.1049 is to regulate trade practices relating to the 
 1337  business of title insurance in accordance with the intent of 
 1338  Congress as expressed in the Act of Congress of March 9, 1945 
 1339  (Pub. L. No. 15, 79th Congress), by defining, or providing for 
 1340  the determination of, all such practices in this state which 
 1341  constitute unfair methods of competition or unfair or deceptive 
 1342  acts or practices and by prohibiting the trade practices so 
 1343  defined or determined. 
 1344         637.1031 Definitions.—When used in ss. 637.1029-637.1049, 
 1345  the term “insurance policy” or “insurance contract” means a 
 1346  written contract of, or a written agreement for or effecting, 
 1347  insurance, or the certificate thereof, by whatever name called, 
 1348  and includes all clauses, riders, endorsements, and papers which 
 1349  are a part thereof. 
 1350         637.1032 Unfair methods of competition and unfair or 
 1351  deceptive acts or practices prohibited; penalties.— 
 1352         (1) A person may not engage in this state in any trade 
 1353  practice which is defined in ss. 637.1029-637.1049 as, or 
 1354  determined pursuant to s. 637.1029 or s. 637.1035 to be, an 
 1355  unfair method of competition or an unfair or deceptive act or 
 1356  practice involving the business of insurance. 
 1357         (2) Any person who violates any provision of ss. 637.1029 
 1358  637.1049 shall be subject to a fine in an amount not greater 
 1359  than $2,500 for each nonwillful violation and not greater than 
 1360  $20,000 for each willful violation. Fines under this subsection 
 1361  may not exceed an aggregate amount of $10,000 for all nonwillful 
 1362  violations arising out of the same action or an aggregate amount 
 1363  of $100,000 for all willful violations arising out of the same 
 1364  action. The fines authorized by this subsection may be imposed 
 1365  in addition to any other applicable penalty. 
 1366         637.1033 Unfair methods of competition and unfair or 
 1367  deceptive acts or practices defined.—The following are defined 
 1368  as unfair methods of competition and unfair or deceptive acts or 
 1369  practices: 
 1370         (1) Misrepresentations and false advertising of insurance 
 1371  policies.—Knowingly making, issuing, circulating, or causing to 
 1372  be made, issued, or circulated, any estimate, illustration, 
 1373  circular, statement, sales presentation, omission, or comparison 
 1374  which: 
 1375         (a) Misrepresents the benefits, advantages, conditions, or 
 1376  terms of any insurance policy. 
 1377         (b) Misrepresents the dividends or share of the surplus to 
 1378  be received on any insurance policy. 
 1379         (c) Makes any false or misleading statements as to the 
 1380  dividends or share of surplus previously paid on any insurance 
 1381  policy. 
 1382         (d) Is misleading, or is a misrepresentation, as to the 
 1383  financial condition of any person or as to the legal reserve 
 1384  system upon which any life insurer operates. 
 1385         (e) Uses any name or title of any insurance policy or class 
 1386  of insurance policies misrepresenting the true nature thereof. 
 1387         (f) Is a misrepresentation for the purpose of inducing, or 
 1388  tending to induce, the lapse, forfeiture, exchange, conversion, 
 1389  or surrender of any insurance policy. 
 1390         (g) Is a misrepresentation for the purpose of effecting a 
 1391  pledge or assignment of, or effecting a loan against, any 
 1392  insurance policy. 
 1393         (h) Misrepresents any insurance policy as being shares of 
 1394  stock or misrepresents ownership interest in the company. 
 1395         (i) Uses any advertisement that would mislead or otherwise 
 1396  cause a reasonable person to believe mistakenly that the state 
 1397  or the Federal Government is responsible for the insurance sales 
 1398  activities of any person or stands behind any person’s credit or 
 1399  that any person, the state, or the Federal Government guarantees 
 1400  any returns on insurance products or is a source of payment of 
 1401  any insurance obligation of or sold by any person. 
 1402         (2) False information and advertising generally.—Knowingly 
 1403  making, publishing, disseminating, circulating, or placing 
 1404  before the public, or causing, directly or indirectly, to be 
 1405  made, published, disseminated, circulated, or placed before the 
 1406  public: 
 1407         (a) In a newspaper, magazine, or other publication; 
 1408         (b) In the form of a notice, circular, pamphlet, letter, or 
 1409  poster; 
 1410         (c) Over any radio or television station; or 
 1411         (d) In any other way, 
 1412   
 1413  an advertisement, announcement, or statement containing any 
 1414  assertion, representation, or statement with respect to the 
 1415  business of insurance, which is untrue, deceptive, or 
 1416  misleading. 
 1417         (3) Defamation.—Knowingly making, publishing, 
 1418  disseminating, or circulating, directly or indirectly, or 
 1419  aiding, abetting, or encouraging the making, publishing, 
 1420  disseminating, or circulating of, any oral or written statement, 
 1421  or any pamphlet, circular, article, or literature, which is 
 1422  false or maliciously critical of, or derogatory to, any person 
 1423  and which is calculated to injure such person. 
 1424         (4) Boycott, coercion, and intimidation.—Entering into any 
 1425  agreement to commit, or by any concerted action committing, any 
 1426  act of boycott, coercion, or intimidation resulting in, or 
 1427  tending to result in, unreasonable restraint of, or monopoly in, 
 1428  the business of insurance. 
 1429         (5) False statements and entries.— 
 1430         (a) Knowingly: 
 1431         1. Filing with any supervisory or other public official; 
 1432         2. Making, publishing, disseminating, circulating; 
 1433         3. Delivering to any person; 
 1434         4. Placing before the public; or 
 1435         5. Causing, directly or indirectly, to be made, published, 
 1436  disseminated, circulated, delivered to any person, or placed 
 1437  before the public, 
 1438   
 1439  any false material statement. 
 1440         (b) Knowingly making any false entry of a material fact in 
 1441  any book, report, or statement of any person, or knowingly 
 1442  omitting to make a true entry of any material fact pertaining to 
 1443  the business of such person in any book, report, or statement of 
 1444  such person. 
 1445         (6) Unlawful rebates.— 
 1446         (a) Except as otherwise expressly provided by law, or in an 
 1447  applicable filing with the department, knowingly: 
 1448         1. Permitting, or offering to make, or making, any contract 
 1449  or agreement as to such contract other than as plainly expressed 
 1450  in the insurance contract issued thereon; or 
 1451         2. Paying, allowing, or giving, or offering to pay, allow, 
 1452  or give, directly or indirectly, as inducement to such insurance 
 1453  contract, any unlawful rebate of premiums payable on the 
 1454  contract, any special favor or advantage in the dividends or 
 1455  other benefits thereon, or any valuable consideration or 
 1456  inducement whatever not specified in the contract. 
 1457         (b)1. A title insurer, or any member, employee, attorney, 
 1458  agent, or agency thereof, may not pay, allow, or give, or offer 
 1459  to pay, allow, or give, directly or indirectly, as inducement to 
 1460  title insurance, or after such insurance has been effected, any 
 1461  rebate or abatement of the premium or any other charge or fee, 
 1462  or provide any special favor or advantage, or any monetary 
 1463  consideration or inducement whatever. 
 1464         2. Nothing in this paragraph shall be construed as 
 1465  prohibiting the payment of fees to attorneys at law duly 
 1466  licensed to practice law in the courts of this state, for 
 1467  professional services, or as prohibiting the payment of earned 
 1468  portions of the premium to duly appointed agents or agencies who 
 1469  actually perform services for the title insurer. Nothing in this 
 1470  paragraph shall be construed as prohibiting a rebate or 
 1471  abatement of an attorney’s fee charged for professional 
 1472  services, or that portion of the premium that is not required to 
 1473  be retained by the insurer pursuant to s. 637.2064(1), or any 
 1474  other agent charge or fee to the person responsible for paying 
 1475  the premium, charge, or fee. 
 1476         3. An insured named in a policy, or any other person 
 1477  directly or indirectly connected with the transaction involving 
 1478  the issuance of such policy, including, but not limited to, any 
 1479  mortgage broker, real estate broker, builder, or attorney, any 
 1480  employee, agent, agency, or representative thereof, or any other 
 1481  person whatsoever, may not knowingly receive or accept, directly 
 1482  or indirectly, any rebate or abatement of any portion of the 
 1483  title insurance premium or of any other charge or fee or any 
 1484  monetary consideration or inducement whatsoever, except as set 
 1485  forth in subparagraph 2.; provided, in no event shall any 
 1486  portion of the attorney’s fee, any portion of the premium that 
 1487  is not required to be retained by the insurer pursuant to s. 
 1488  637.2064(1), any agent charge or fee, or any other monetary 
 1489  consideration or inducement be paid directly or indirectly for 
 1490  the referral of title insurance business. 
 1491         (7) Unfair claim settlement practices.— 
 1492         (a) Attempting to settle claims on the basis of an 
 1493  application, when serving as a binder or intended to become a 
 1494  part of the policy, or any other material document which was 
 1495  altered without notice to, or knowledge or consent of, the 
 1496  insured; 
 1497         (b) A material misrepresentation made to an insured or any 
 1498  other person having an interest in the proceeds payable under 
 1499  such contract or policy, for the purpose and with the intent of 
 1500  effecting settlement of such claims, loss, or damage under such 
 1501  contract or policy on less favorable terms than those provided 
 1502  in, and contemplated by, such contract or policy; or 
 1503         (c) Committing or performing with such frequency as to 
 1504  indicate a general business practice any of the following: 
 1505         1. Failing to adopt and implement standards for the proper 
 1506  investigation of claims; 
 1507         2. Misrepresenting pertinent facts or insurance policy 
 1508  provisions relating to coverages at issue; 
 1509         3. Failing to acknowledge and act promptly upon 
 1510  communications with respect to claims; 
 1511         4. Denying claims without conducting reasonable 
 1512  investigations based upon available information; 
 1513         5. Failing to affirm or deny full or partial coverage of 
 1514  claims, and, as to partial coverage, the dollar amount or extent 
 1515  of coverage, or failing to provide a written statement that the 
 1516  claim is being investigated, upon the written request of the 
 1517  insured within 30 days after proof-of-loss statements have been 
 1518  completed; 
 1519         6. Failing to promptly provide a reasonable explanation in 
 1520  writing to the insured of the basis in the insurance policy, in 
 1521  relation to the facts or applicable law, for denial of a claim 
 1522  or for the offer of a compromise settlement; 
 1523         7. Failing to promptly notify the insured of any additional 
 1524  information necessary for the processing of a claim; or 
 1525         8. Failing to clearly explain the nature of the requested 
 1526  information and the reasons why such information is necessary. 
 1527         (8) Failure to maintain complaint-handling procedures. 
 1528  Failure of any person to maintain a complete record of all the 
 1529  complaints received since the date of the last examination. For 
 1530  purposes of this subsection, the term “complaint” means any 
 1531  written communication primarily expressing a grievance. 
 1532         (9) Misrepresentation in insurance applications.— 
 1533         (a) Knowingly making a false or fraudulent written or oral 
 1534  statement or representation on, or relative to, an application 
 1535  or negotiation for an insurance policy for the purpose of 
 1536  obtaining a fee, commission, money, or other benefit from any 
 1537  insurer, agent, broker, or individual. 
 1538         (b) Knowingly making a material omission in the comparison 
 1539  of a life, health, or Medicare supplement insurance replacement 
 1540  policy with the policy it replaces for the purpose of obtaining 
 1541  a fee, commission, money, or other benefit from any insurer, 
 1542  agent, broker, or individual. For the purposes of this 
 1543  paragraph, a material omission includes the failure to advise 
 1544  the insured of the existence and operation of a preexisting 
 1545  condition clause in the replacement policy. 
 1546         (10) Advertising gifts permitted.—No provision of 
 1547  subsection (6) or subsection (7) shall be deemed to prohibit a 
 1548  licensed insurer or its agent from giving to insureds, 
 1549  prospective insureds, and others, for the purpose of 
 1550  advertising, any article of merchandise having a value of not 
 1551  more than $25. 
 1552         (11) Illegal dealings in premiums; excess or reduced 
 1553  charges for insurance.— 
 1554         (a) Knowingly collecting any sum as a premium or charge for 
 1555  insurance, which is not then provided, or is not in due course 
 1556  to be provided, subject to acceptance of the risk by the 
 1557  insurer, by an insurance policy issued by an insurer as 
 1558  permitted by this chapter. 
 1559         (b) Knowingly collecting as a premium or charge for 
 1560  insurance any sum in excess of or less than the premium or 
 1561  charge applicable to such insurance, in accordance with the 
 1562  applicable classifications and rates as filed with and approved 
 1563  by the department, and as specified in the policy; or, in cases 
 1564  when classifications, premiums, or rates are not required by 
 1565  this chapter to be so filed and approved, premiums and charges 
 1566  collected from a resident of this state in excess of or less 
 1567  than those specified in the policy and as fixed by the insurer. 
 1568         (12) Interlocking ownership and management.— 
 1569         (a) Any domestic insurer may retain, invest in, or acquire 
 1570  the whole or any part of the capital stock of any other insurer 
 1571  or insurers, or have a common management with any other insurer 
 1572  or insurers, unless such retention, investment, acquisition, or 
 1573  common management is inconsistent with any other provision of 
 1574  this chapter, or unless by reason thereof the business of such 
 1575  insurers with the public is conducted in a manner which 
 1576  substantially lessens competition generally in the insurance 
 1577  business. 
 1578         (b) Any person otherwise qualified may be a director of two 
 1579  or more domestic insurers which are competitors, unless the 
 1580  effect thereof is substantially to lessen competition between 
 1581  insurers generally or materially tend to create a monopoly. 
 1582         (c) Any limitation contained in this subsection does not 
 1583  apply to any person who is a director of two or more insurers 
 1584  under common control or management. 
 1585         (13) Soliciting or accepting new or renewal insurance risks 
 1586  by insolvent or impaired insurer prohibited; penalty.— 
 1587         (a) Whether or not delinquency proceedings as to the 
 1588  insurer have been or are to be initiated, but while such 
 1589  insolvency or impairment exists, a director or officer of an 
 1590  insurer, except with the written permission of the department, 
 1591  may not authorize or permit the insurer to solicit or accept new 
 1592  or renewal insurance risks in this state after such director or 
 1593  officer knew, or reasonably should have known, that the insurer 
 1594  was insolvent or impaired. The term “impaired” includes 
 1595  impairment of capital or surplus, as defined in s. 631.011(12) 
 1596  and (13). 
 1597         (b) Any such director or officer, upon conviction of a 
 1598  violation of this subsection, is guilty of a felony of the third 
 1599  degree, punishable as provided in s. 775.082, s. 775.083, or s. 
 1600  775.084. 
 1601         (14) Refusal to insure.—In addition to other provisions of 
 1602  this chapter, the refusal to insure, or continue to insure, any 
 1603  individual or risk solely because of: 
 1604         (a) Race, color, creed, marital status, sex, or national 
 1605  origin; 
 1606         (b) The residence, age, or lawful occupation of the 
 1607  individual or the location of the risk, unless there is a 
 1608  reasonable relationship between the residence, age, or lawful 
 1609  occupation of the individual or the location of the risk and the 
 1610  coverage issued or to be issued; or 
 1611         (c) The insured’s or applicant’s failure to agree to place 
 1612  collateral business with any insurer. 
 1613         (15) Sliding.—Sliding is the act or practice of: 
 1614         (a) Representing to the applicant that a specific ancillary 
 1615  coverage or product is required by law in conjunction with the 
 1616  purchase of insurance when such coverage or product is not 
 1617  required; 
 1618         (b) Representing to the applicant that a specific ancillary 
 1619  coverage or product is included in the policy applied for 
 1620  without an additional charge when such charge is required; or 
 1621         (c) Charging an applicant for a specific ancillary coverage 
 1622  or product, in addition to the cost of the insurance coverage 
 1623  applied for, without the informed consent of the applicant. 
 1624         637.10335 Civil remedies against title insurers.— 
 1625         (1)(a) Any person may bring a civil action against a title 
 1626  insurer when such person is damaged: 
 1627         1. By a violation by the insurer of s. 637.1033(7), (11), 
 1628  or (14); or 
 1629         2. By the commission of any of the following acts by the 
 1630  insurer: 
 1631         a. Not attempting in good faith to settle claims when, 
 1632  under all the circumstances, it could and should have done so 
 1633  had it acted fairly and honestly toward its insured and with due 
 1634  regard for her or his interests; 
 1635         b. Making claims payments to insureds or beneficiaries not 
 1636  accompanied by a statement setting forth the coverage under 
 1637  which payments are being made; or 
 1638         c. Except as to liability coverages, failing to promptly 
 1639  settle claims, when the obligation to settle a claim has become 
 1640  reasonably clear, under one portion of the insurance policy 
 1641  coverage in order to influence settlements under other portions 
 1642  of the insurance policy coverage. 
 1643         (b) Notwithstanding paragraph (a), a person pursuing a 
 1644  remedy under this section need not prove that such act was 
 1645  committed or performed with such frequency as to indicate a 
 1646  general business practice. 
 1647         (2) Any party may bring a civil action against an 
 1648  unauthorized insurer if such party is damaged by a violation of 
 1649  s. 637.1033 by the unauthorized insurer. 
 1650         (3)(a) As a condition precedent to bringing an action under 
 1651  this section, the department and the authorized insurer must 
 1652  have been given 60 days’ written notice of the violation. If the 
 1653  department returns a notice for lack of specificity, the 60-day 
 1654  time period shall not begin until a proper notice is filed. 
 1655         (b) The notice shall be on a form provided by the 
 1656  department and shall state with specificity the following 
 1657  information, and such other information as the department may 
 1658  require: 
 1659         1. The statutory provision, including the specific language 
 1660  of the statute, which the authorized insurer allegedly violated. 
 1661         2. The facts and circumstances giving rise to the 
 1662  violation. 
 1663         3. The name of any individual involved in the violation. 
 1664         4. A reference to specific policy language that is relevant 
 1665  to the violation, if any. If the person bringing the civil 
 1666  action is a third-party claimant, she or he shall not be 
 1667  required to reference the specific policy language if the 
 1668  authorized insurer has not provided a copy of the policy to the 
 1669  third-party claimant pursuant to written request. 
 1670         5. A statement that the notice is given in order to perfect 
 1671  the right to pursue the civil remedy authorized by this section. 
 1672         (c) Within 20 days after receipt of the notice, the 
 1673  department may return any notice that does not provide the 
 1674  specific information required by this section, and the 
 1675  department shall indicate the specific deficiencies contained in 
 1676  the notice. A determination by the department to return a notice 
 1677  for lack of specificity shall be exempt from the requirements of 
 1678  chapter 120. 
 1679         (d) An action may not lie if, within 60 days after filing 
 1680  notice, the damages are paid or the circumstances giving rise to 
 1681  the violation are corrected. 
 1682         (e) The authorized insurer that is the recipient of a 
 1683  notice filed pursuant to this section shall report to the 
 1684  department on the disposition of the alleged violation. 
 1685         (f) The applicable statute of limitations for an action 
 1686  under this section shall be tolled for a period of 65 days by 
 1687  the mailing of the notice required by this subsection or the 
 1688  mailing of a subsequent notice required by this subsection. 
 1689         (4) Upon adverse adjudication at trial or upon appeal, the 
 1690  authorized insurer shall be liable for damages, together with 
 1691  court costs and reasonable attorney’s fees incurred by the 
 1692  plaintiff. 
 1693         (5)(a) Punitive damages may not be awarded under this 
 1694  section unless the acts giving rise to the violation occur with 
 1695  such frequency as to indicate a general business practice and 
 1696  these acts are: 
 1697         1. Willful, wanton, and malicious; 
 1698         2. In reckless disregard for the rights of any insured; or 
 1699         3. In reckless disregard for the rights of a beneficiary 
 1700  under a life insurance contract. 
 1701         (b) Any person who pursues a claim under this subsection 
 1702  shall post in advance the costs of discovery. Such costs shall 
 1703  be awarded to the authorized insurer if no punitive damages are 
 1704  awarded to the plaintiff. 
 1705         (6) This section shall not be construed to authorize a 
 1706  class action suit against an authorized insurer or a civil 
 1707  action against the commission, the office, or the department or 
 1708  any of their employees, or to create a cause of action when an 
 1709  authorized health insurer refuses to pay a claim for 
 1710  reimbursement on the ground that the charge for a service was 
 1711  unreasonably high or that the service provided was not medically 
 1712  necessary. 
 1713         (7) In the absence of expressed language to the contrary, 
 1714  this section shall not be construed to authorize a civil action 
 1715  or create a cause of action against an authorized insurer or its 
 1716  employees who, in good faith, release information about an 
 1717  insured or an insurance policy to a law enforcement agency in 
 1718  furtherance of an investigation of a criminal or fraudulent act 
 1719  relating to a motor vehicle theft or a motor vehicle insurance 
 1720  claim. 
 1721         (8) The civil remedy specified in this section does not 
 1722  preempt any other remedy or cause of action provided pursuant to 
 1723  any other statute or pursuant to the common law of this state. 
 1724  Any person may obtain a judgment under the common-law remedy of 
 1725  bad faith or the remedy provided under this section but is not 
 1726  entitled to a judgment under both remedies. This section shall 
 1727  not be construed to create a common-law cause of action. The 
 1728  damages recoverable pursuant to this section shall include those 
 1729  damages that are a reasonably foreseeable result of a specified 
 1730  violation of this section by the authorized insurer and may 
 1731  include an award or judgment in an amount that exceeds the 
 1732  policy limits. 
 1733         637.1034 Favored title insurance agent or title insurer; 
 1734  coercion of debtors.— 
 1735         (1) A person may not: 
 1736         (a) Require, as a condition precedent or condition 
 1737  subsequent to the lending of money or extension of credit or any 
 1738  renewal thereof, that the person to whom such money or credit is 
 1739  extended, or whose obligation the creditor is to acquire or 
 1740  finance, negotiate any policy or contract of insurance through a 
 1741  particular insurer or group of insurers or agent or broker or 
 1742  group of agents or brokers. 
 1743         (b) Reject an insurance policy solely because the policy 
 1744  has been issued or underwritten by any person who is not 
 1745  associated with a financial institution, or with any subsidiary 
 1746  or affiliate thereof, when such insurance is required in 
 1747  connection with a loan or extension of credit; or unreasonably 
 1748  disapprove the insurance policy provided by a borrower for the 
 1749  protection of the property securing the credit or lien. For 
 1750  purposes of this paragraph, such disapproval shall be deemed 
 1751  unreasonable if it is not based solely on reasonable standards, 
 1752  uniformly applied, relating to the extent of coverage required 
 1753  by such lender or person extending credit and the financial 
 1754  soundness and the services of an insurer. Such standards shall 
 1755  not discriminate against any particular type of insurer, nor 
 1756  shall such standards call for the disapproval of an insurance 
 1757  policy because such policy contains coverage in addition to that 
 1758  required. 
 1759         (c) Require, directly or indirectly, that any borrower, 
 1760  mortgagor, purchaser, insurer, broker, or agent pay a separate 
 1761  charge in connection with the handling of any insurance policy 
 1762  that is required in connection with a loan or other extension of 
 1763  credit or the provision of another traditional banking product, 
 1764  or pay a separate charge to substitute the insurance policy of 
 1765  one insurer for that of another, unless such charge would be 
 1766  required if the person were providing the insurance. This 
 1767  paragraph does not include the interest which may be charged on 
 1768  premium loans or premium advances in accordance with the 
 1769  security instrument. 
 1770         (d) Use or provide to others insurance information required 
 1771  to be disclosed by a customer to a financial institution, or a 
 1772  subsidiary or affiliate thereof, in connection with the 
 1773  extension of credit for the purpose of soliciting the sale of 
 1774  insurance, unless the customer has given express written consent 
 1775  or has been given the opportunity to object to such use of the 
 1776  information. Insurance information means information concerning 
 1777  premiums, terms, and conditions of insurance coverage, insurance 
 1778  claims, and insurance history provided by the customer. The 
 1779  opportunity to object to the use of insurance information must 
 1780  be in writing and must be clearly and conspicuously made. 
 1781         (2)(a) Any person offering the sale of insurance at the 
 1782  time of and in connection with an extension of credit or the 
 1783  sale or lease of goods or services shall disclose in writing 
 1784  that the choice of an insurance provider will not affect the 
 1785  decision regarding the extension of credit or sale or lease of 
 1786  goods or services, except that reasonable requirements may be 
 1787  imposed pursuant to subsection (1). 
 1788         (b) Federally insured or state-insured depository 
 1789  institutions and credit unions shall make clear and conspicuous 
 1790  disclosure in writing prior to the sale of any insurance policy 
 1791  that such policy is not a deposit, is not insured by the Federal 
 1792  Deposit Insurance Corporation or any other entity, is not 
 1793  guaranteed by the insured depository institution or any person 
 1794  soliciting the purchase of or selling the policy; that the 
 1795  financial institution is not obligated to provide benefits under 
 1796  the insurance contract; and, where appropriate, that the policy 
 1797  involves investment risk, including potential loss of principal. 
 1798         (c) All documents constituting policies of insurance shall 
 1799  be separate and shall not be combined with or be a part of other 
 1800  documents. A person may not include the expense of insurance 
 1801  premiums in a primary credit transaction without the express 
 1802  written consent of the customer. 
 1803         (d) A loan officer of a financial institution who is 
 1804  involved in the application, solicitation, or closing of a loan 
 1805  transaction may not solicit or sell insurance in connection with 
 1806  the same loan, but such loan officer may refer the loan customer 
 1807  to another insurance agent who is not involved in the 
 1808  application, solicitation, or closing of the same loan 
 1809  transaction. This paragraph does not apply to an agent located 
 1810  on premises having only a single person with lending authority, 
 1811  or to a broker or dealer registered under the Federal Securities 
 1812  Exchange Act of 1934 in connection with a margin loan secured by 
 1813  securities. 
 1814         (3) A person may not make an extension of credit or the 
 1815  sale of any product or service that is the equivalent to an 
 1816  extension of credit or lease or sale of property of any kind, or 
 1817  furnish any services or fix or vary the consideration for any of 
 1818  the foregoing, on the condition or requirement that the customer 
 1819  obtain insurance from that person, or a subsidiary or affiliate 
 1820  of that person, or a particular insurer, agent, or broker; 
 1821  however, this subsection does not prohibit any person from 
 1822  engaging in any activity that if done by a financial institution 
 1823  would not violate s. 106 of the Bank Holding Company Act 
 1824  Amendments of 1970, 12 U.S.C. s. 1972, as interpreted by the 
 1825  Board of Governors of the Federal Reserve System. 
 1826         (4) The department may investigate the affairs of any 
 1827  person to whom this section applies to determine whether such 
 1828  person has violated this section. If a violation of this section 
 1829  is found to have been committed knowingly, the person in 
 1830  violation shall be subject to the same procedures and penalties 
 1831  as provided in ss. 637.1036, 637.1037, 637.1038 and 637.1039. 
 1832         637.1035 Power of department.—The department may examine 
 1833  and investigate the affairs of every person involved in the 
 1834  business of insurance in this state in order to determine 
 1835  whether such person has been or is engaged in any unfair method 
 1836  of competition or in any unfair or deceptive act or practice 
 1837  prohibited by s. 637.1032, and shall each have the powers and 
 1838  duties specified in ss. 637.1036637.1039 in connection 
 1839  therewith. 
 1840         637.1036 Defined practices; hearings, witnesses, 
 1841  appearances, production of books and service of process.— 
 1842         (1) Whenever the department has reason to believe that any 
 1843  person has engaged, or is engaging, in this state in any unfair 
 1844  method of competition or any unfair or deceptive act or practice 
 1845  as defined in s. 637.1033 or s. 637.1034 or is engaging in the 
 1846  business of insurance without being properly licensed as 
 1847  required by this chapter and that a proceeding by it in respect 
 1848  thereto would be to the interest of the public, it shall conduct 
 1849  or cause to have conducted a hearing in accordance with chapter 
 1850  120. 
 1851         (2) The department, a duly empowered hearing officer, or an 
 1852  administrative law judge shall, during the conduct of such 
 1853  hearing, have those powers enumerated in s. 120.569; however, 
 1854  the penalties for failure to comply with a subpoena or with an 
 1855  order directing discovery shall be limited to a fine not to 
 1856  exceed $1,000 per violation. 
 1857         (3) Statements of charges, notices, and orders under this 
 1858  act may be served by anyone duly authorized by the department, 
 1859  in the manner provided by law for service of process in civil 
 1860  actions or by certifying and mailing a copy thereof to the 
 1861  person affected by such statement, notice, order, or other 
 1862  process at his or her or its residence or principal office or 
 1863  place of business. The verified return by the person so serving 
 1864  such statement, notice, order, or other process, setting forth 
 1865  the manner of the service, shall be proof of the same, and the 
 1866  return postcard receipt for such statement, notice, order, or 
 1867  other process, certified and mailed as aforesaid, shall be proof 
 1868  of service of the same. 
 1869         637.1037 Cease and desist and penalty orders.—After the 
 1870  hearing provided in s. 637.1036, the department shall enter a 
 1871  final order in accordance with s. 120.569. If it is determined 
 1872  that the person charged has engaged in an unfair or deceptive 
 1873  act or practice or the unlawful transaction of insurance, the 
 1874  department shall also issue an order requiring the violator to 
 1875  cease and desist from engaging in such method of competition, 
 1876  act, or practice or the unlawful transaction of insurance. 
 1877  Further, if the act or practice is a violation of s. 637.1033 or 
 1878  s. 637.1034, the department may, at its discretion, order any 
 1879  one or more of the following: 
 1880         (1) Suspension or revocation of the person’s certificate of 
 1881  authority, license, or eligibility for any certificate of 
 1882  authority or license, if he or she knew, or reasonably should 
 1883  have known, he or she was in violation of this chapter. 
 1884         (2) Such other relief as may be provided in this chapter. 
 1885         637.1038 Appeals from the department.—Any person subject to 
 1886  an order of the department under s. 637.1037 or s. 637.1039 may 
 1887  obtain a review of such order by filing an appeal therefrom in 
 1888  accordance with the provisions and procedures for appeal from 
 1889  the orders of the department in general under s. 120.68. 
 1890         637.1039 Penalty for violation of cease and desist orders. 
 1891  Any person who violates a cease and desist order of the 
 1892  department under s. 637.1037 while such order is in effect, 
 1893  after notice and hearing as provided in s. 637.1036, shall be 
 1894  subject, at the discretion of the department, to any one or more 
 1895  of the following: 
 1896         (1) A monetary penalty of not more than $50,000 as to all 
 1897  matters determined in such hearing. 
 1898         (2) Suspension or revocation of such person’s certificate 
 1899  of authority, license, or eligibility to hold such certificate 
 1900  of authority or license. 
 1901         (3) Such other relief as may be provided in this chapter. 
 1902         637.1041 Rules.— 
 1903         (1) The department may, in accordance with chapter 120, 
 1904  adopt reasonable rules as are necessary or proper to identify 
 1905  specific methods of competition or acts or practices which are 
 1906  prohibited by s. 637.1033 or s. 637.1034, but the rules shall 
 1907  not enlarge upon or extend the provisions of ss. 637.1033 and 
 1908  637.1034. 
 1909         (2) The department shall, in accordance with chapter 120, 
 1910  adopt rules to protect members of the United States Armed Forces 
 1911  from dishonest or predatory insurance sales practices by 
 1912  insurers and insurance agents. The rules shall identify specific 
 1913  false, misleading, deceptive, or unfair methods of competition, 
 1914  acts, or practices which are prohibited by s. 637.1033 or s. 
 1915  637.1034. The rules shall be based upon model rules or model 
 1916  laws adopted by the National Association of Insurance 
 1917  Commissioners which identify certain insurance practices 
 1918  involving the solicitation or sale of insurance and annuities to 
 1919  members of the United States Armed Forces which are false, 
 1920  misleading, deceptive, or unfair. 
 1921         637.1042 Provisions of chapter additional to existing law. 
 1922  The powers vested in the department by this chapter shall be 
 1923  additional to any other powers to enforce any penalties, fines, 
 1924  or forfeitures authorized by law. 
 1925         637.1043 Civil liability.—The provisions of this chapter 
 1926  are cumulative to rights under the general civil and common law, 
 1927  and no action of the department, shall abrogate such rights to 
 1928  damages or other relief in any court. 
 1929         637.10435 Policyholders Bill of Rights.— 
 1930         (1) The principles expressed in the following statements 
 1931  shall serve as standards to be followed by the department, 
 1932  commission, and office in exercising their powers and duties, in 
 1933  exercising administrative discretion, in dispensing 
 1934  administrative interpretations of the law, and in adopting 
 1935  rules: 
 1936         (a) Policyholders have the right to competitive pricing 
 1937  practices and marketing methods that enable them to determine 
 1938  the best value among comparable policies. 
 1939         (b) Policyholders have the right to obtain comprehensive 
 1940  coverage. 
 1941         (c) Policyholders have the right to insurance advertising 
 1942  and other selling approaches that provide accurate and balanced 
 1943  information on the benefits and limitations of a policy. 
 1944         (d) Policyholders have a right to an insurance company that 
 1945  is financially stable. 
 1946         (e) Policyholders have the right to be serviced by a 
 1947  competent, honest insurance agent or broker. 
 1948         (f) Policyholders have the right to a readable policy. 
 1949         (g) Policyholders have the right to an insurance company 
 1950  that provides an economic delivery of coverage and that tries to 
 1951  prevent losses. 
 1952         (h) Policyholders have the right to a balanced and positive 
 1953  regulation by the department, commission, and office. 
 1954         (2) This section shall not be construed as creating a civil 
 1955  cause of action by any individual policyholder against any 
 1956  individual insurer. 
 1957         637.1044 Privacy.—The department shall adopt rules 
 1958  consistent with other provisions of this chapter to govern the 
 1959  use of a consumer’s nonpublic personal financial and health 
 1960  information. These rules must be based on, consistent with, and 
 1961  not more restrictive than the Privacy of Consumer Financial and 
 1962  Health Information Regulation, adopted September 26, 2000, by 
 1963  the National Association of Insurance Commissioners. In 
 1964  addition, these rules must be consistent with, and not more 
 1965  restrictive than, the standards contained in Title V of the 
 1966  Gramm-Leach-Bliley Act of 1999, Pub. L. No. 106-102. 
 1967         637.10445 Trade secret documents.— 
 1968         (1) If any person who is required to submit documents or 
 1969  other information to the department pursuant to this chapter or 
 1970  by rule or order of the department claims that such submission 
 1971  contains a trade secret, such person may file with the 
 1972  department a notice of trade secret as provided in this section. 
 1973  Failure to do so constitutes a waiver of any claim by such 
 1974  person that the document or information is a trade secret. 
 1975         (a) Each page of such document or specific portion of a 
 1976  document claimed to be a trade secret must be clearly marked 
 1977  “trade secret.” 
 1978         (b) All material marked as a trade secret must be separated 
 1979  from all non-trade secret material and be submitted in a 
 1980  separate envelope clearly marked “trade secret.” 
 1981         (c) In submitting a notice of trade secret to the 
 1982  department, the submitting party must include an affidavit 
 1983  certifying under oath to the truth of the following statements 
 1984  concerning all documents or information that are claimed to be 
 1985  trade secrets: 
 1986         1. [I consider/My company considers] this information a 
 1987  trade secret that has value and provides an advantage or an 
 1988  opportunity to obtain an advantage over those who do not know or 
 1989  use it. 
 1990         2. [I have/My company has] taken measures to prevent the 
 1991  disclosure of the information to anyone other than those who 
 1992  have been selected to have access for limited purposes, and [I 
 1993  intend/my company intends] to continue to take such measures. 
 1994         3. The information is not, and has not been, reasonably 
 1995  obtainable without [my/our] consent by other persons by use of 
 1996  legitimate means. 
 1997         4. The information is not publicly available elsewhere. 
 1998         (d) Any data submitted by a title insurance agent or title 
 1999  insurer pursuant to s. 637.1014 is presumed to be a trade secret 
 2000  under this section whether or not so designated. 
 2001         (2) If the department receives a public records request for 
 2002  a document or information that is marked and certified as a 
 2003  trade secret, the department shall promptly notify the person 
 2004  that certified the document as a trade secret. The notice shall 
 2005  inform such person that he or she or his or her company has 30 
 2006  days after receipt of such notice to file an action in circuit 
 2007  court seeking a determination whether the document in question 
 2008  contains trade secrets and an order barring public disclosure of 
 2009  the document. If that person or company files an action within 
 2010  30 days after receipt of notice of the public records request, 
 2011  the department may not release the documents pending the outcome 
 2012  of the legal action. The failure to file an action within 30 
 2013  days constitutes a waiver of any claim of confidentiality, and 
 2014  the department shall release the document as requested. 
 2015         (3) The department may disclose a trade secret, together 
 2016  with the claim that it is a trade secret, to an officer or 
 2017  employee of another governmental agency whose use of the trade 
 2018  secret is within the scope of his or her employment. 
 2019         637.1045 Financial institutions conducting title insurance 
 2020  transactions.—A financial institution, as defined in s. 
 2021  655.005(1)(g), (h), or (p), may conduct title insurance 
 2022  transactions only through Florida-licensed title insurance 
 2023  agents representing Florida-authorized title insurers. 
 2024         637.1046 Investigation by department or Division of 
 2025  Insurance Fraud; compliance; immunity; confidential information; 
 2026  reports to division; division investigator’s power of arrest.— 
 2027         (1) For the purposes of this section, a person commits a 
 2028  “fraudulent insurance act” if the person knowingly and with 
 2029  intent to defraud presents, causes to be presented, or prepares 
 2030  with knowledge or belief that it will be presented, to or by a 
 2031  title insurer or any title insurance agent, any written 
 2032  statement as part of, or in support of, an application for the 
 2033  issuance of, or the rating of, any insurance policy, or a claim 
 2034  for payment or other benefit pursuant to any insurance policy, 
 2035  which the person knows to contain materially false information 
 2036  concerning any fact material thereto or if the person conceals, 
 2037  for the purpose of misleading another, information concerning 
 2038  any fact material thereto. 
 2039         (2) If, by its own inquiries or as a result of complaints, 
 2040  the department or its Division of Insurance Fraud has reason to 
 2041  believe that a person has engaged in, or is engaging in, a 
 2042  fraudulent insurance act, an act or practice that violates s. 
 2043  637.1033 or s. 817.234, or an act or practice punishable under 
 2044  s. 637.1008, it may administer oaths and affirmations, request 
 2045  the attendance of witnesses or proffering of matter, and collect 
 2046  evidence. The department shall not compel the attendance of any 
 2047  person or matter in any such investigation except pursuant to 
 2048  subsection (4). 
 2049         (3) If matter that the department or its division seeks to 
 2050  obtain by request is located outside the state, the person so 
 2051  requested may make it available to the division or its 
 2052  representative to examine the matter at the place where it is 
 2053  located. The division may designate representatives, including 
 2054  officials of the state in which the matter is located, to 
 2055  inspect the matter on its behalf, and it may respond to similar 
 2056  requests from officials of other states. 
 2057         (4)(a) The department or the division may request that an 
 2058  individual who refuses to comply with any such request be 
 2059  ordered by the circuit court to provide the testimony or matter. 
 2060  The court shall not order such compliance unless the department 
 2061  or the division has demonstrated to the satisfaction of the 
 2062  court that the testimony of the witness or the matter under 
 2063  request has a direct bearing on the department of a fraudulent 
 2064  insurance act, on a violation of s. 637.1033 or s. 817.234, or 
 2065  on an act or practice punishable under s. 637.1008 or is 
 2066  pertinent and necessary to further such investigation. 
 2067         (b) Except in a prosecution for perjury, an individual who 
 2068  complies with a court order to provide testimony or matter after 
 2069  asserting a privilege against self-incrimination to which the 
 2070  individual is entitled by law may not be subjected to a criminal 
 2071  proceeding or to a civil penalty with respect to the act 
 2072  concerning which the individual is required to testify or 
 2073  produce relevant matter. 
 2074         (c) In the absence of fraud or bad faith, a person is not 
 2075  subject to civil liability for libel, slander, or any other 
 2076  relevant tort by virtue of filing reports, without malice, or 
 2077  furnishing other information, without malice, required by this 
 2078  section or required by the department or division under the 
 2079  authority granted in this section, and no civil cause of action 
 2080  of any nature shall arise against such person: 
 2081         1. For any information relating to suspected fraudulent 
 2082  insurance acts or persons suspected of engaging in such acts 
 2083  furnished to or received from law enforcement officials, their 
 2084  agents, or employees; 
 2085         2. For any information relating to suspected fraudulent 
 2086  insurance acts or persons suspected of engaging in such acts 
 2087  furnished to or received from other persons subject to the 
 2088  provisions of this chapter; 
 2089         3. For any such information furnished in reports to the 
 2090  department, the division, the National Insurance Crime Bureau, 
 2091  the National Association of Insurance Commissioners, or any 
 2092  local, state, or federal enforcement officials or their agents 
 2093  or employees; or 
 2094         4. For other actions taken in cooperation with any of the 
 2095  agencies or individuals specified in this paragraph in the 
 2096  lawful investigation of suspected fraudulent insurance acts. 
 2097         (d) In addition to the immunity granted in paragraph (c), 
 2098  persons identified as designated employees whose 
 2099  responsibilities include the investigation and disposition of 
 2100  claims relating to suspected fraudulent insurance acts may share 
 2101  information relating to persons suspected of committing 
 2102  fraudulent insurance acts with other designated employees 
 2103  employed by the same or other insurers whose responsibilities 
 2104  include the investigation and disposition of claims relating to 
 2105  fraudulent insurance acts, provided the department has been 
 2106  given written notice of the names and job titles of such 
 2107  designated employees prior to such designated employees sharing 
 2108  information. Unless the designated employees of the insurer act 
 2109  in bad faith or in reckless disregard for the rights of any 
 2110  insured, neither the insurer nor its designated employees are 
 2111  civilly liable for libel, slander, or any other relevant tort, 
 2112  and a civil action does not arise against the insurer or its 
 2113  designated employees: 
 2114         1. For any information related to suspected fraudulent 
 2115  insurance acts provided to an insurer; or 
 2116         2. For any information relating to suspected fraudulent 
 2117  insurance acts provided to the National Insurance Crime Bureau 
 2118  or the National Association of Insurance Commissioners. 
 2119   
 2120  Provided, however, that the qualified immunity against civil 
 2121  liability conferred on any insurer or its designated employees 
 2122  shall be forfeited with respect to the exchange or publication 
 2123  of any defamatory information with third persons not expressly 
 2124  authorized by this paragraph to share in such information. 
 2125         (e) The Chief Financial Officer and any employee or agent 
 2126  of the department, when acting without malice and in the absence 
 2127  of fraud or bad faith, is not subject to civil liability for 
 2128  libel, slander, or any other relevant tort, and no civil cause 
 2129  of action of any nature exists against such person by virtue of 
 2130  the execution of official activities or duties of the department 
 2131  under this section or by virtue of the publication of any report 
 2132  or bulletin related to the official activities or duties of the 
 2133  department under this section. 
 2134         (f) This section does not abrogate or modify in any way any 
 2135  common-law or statutory privilege or immunity heretofore enjoyed 
 2136  by any person. 
 2137         (5) Any person, other than an insurer, agent, or other 
 2138  person licensed under this chapter, or an employee thereof, 
 2139  having knowledge or who believes that a fraudulent insurance act 
 2140  or any other act or practice which, upon conviction, constitutes 
 2141  a felony or a misdemeanor under this chapter, or under s. 
 2142  817.234, is being or has been committed may send to the Division 
 2143  of Insurance Fraud a report or information pertinent to such 
 2144  knowledge or belief and such additional information relative 
 2145  thereto as the department may request. Any professional 
 2146  practitioner licensed or regulated by the Department of Business 
 2147  and Professional Regulation, except as otherwise provided by 
 2148  law, any medical review committee as defined in s. 766.101, any 
 2149  title insurer, title insurance agent, or other person licensed 
 2150  under this chapter, or an employee thereof, having knowledge or 
 2151  who believes that a fraudulent insurance act or any other act or 
 2152  practice which, upon conviction, constitutes a felony or a 
 2153  misdemeanor under this chapter, or under s. 817.234, is being or 
 2154  has been committed shall send to the Division of Insurance Fraud 
 2155  a report or information pertinent to such knowledge or belief 
 2156  and such additional information relative thereto as the 
 2157  department may require. The Division of Insurance Fraud shall 
 2158  review such information or reports and select such information 
 2159  or reports as, in its judgment, may require further 
 2160  investigation. It shall then cause an independent examination of 
 2161  the facts surrounding such information or report to be made to 
 2162  determine the extent, if any, to which a fraudulent insurance 
 2163  act or any other act or practice which, upon conviction, 
 2164  constitutes a felony or a misdemeanor under this chapter, or 
 2165  under s. 817.234, is being committed. The Division of Insurance 
 2166  Fraud shall report any alleged violations of law which its 
 2167  investigations disclose to the appropriate licensing agency and 
 2168  state attorney or other prosecuting agency having jurisdiction 
 2169  with respect to any such violation, as provided in s. 637.302. 
 2170  If prosecution by the state attorney or other prosecuting agency 
 2171  having jurisdiction with respect to such violation is not begun 
 2172  within 60 days of the division’s report, the state attorney or 
 2173  other prosecuting agency having jurisdiction with respect to 
 2174  such violation shall inform the division of the reasons for the 
 2175  lack of prosecution. 
 2176         (6) Division investigators may make arrests for criminal 
 2177  violations established as a result of investigations. Such 
 2178  investigators shall also be considered state law enforcement 
 2179  officers for all purposes and may execute arrest warrants and 
 2180  search warrants; serve subpoenas issued for the examination, 
 2181  investigation, and trial of all offenses; and arrest upon 
 2182  probable cause without warrant any person found in the act of 
 2183  violating any of the provisions of applicable laws. 
 2184  Investigators empowered to make arrests under this section shall 
 2185  be empowered to bear arms in the performance of their duties. In 
 2186  such a situation, the investigator must be certified in 
 2187  compliance with the provisions of s. 943.1395 or must meet the 
 2188  temporary employment or appointment exemption requirements of s. 
 2189  943.131 until certified. 
 2190         (7) It is unlawful for any person to resist an arrest 
 2191  authorized by this section or in any manner to interfere, either 
 2192  by abetting or assisting such resistance or otherwise 
 2193  interfering, with division investigators in the duties imposed 
 2194  upon them by law or department rule. 
 2195         637.1047 Insurer anti-fraud investigative units; reporting 
 2196  requirements; penalties for noncompliance.— 
 2197         (1) Every insurer admitted to do business in this state who 
 2198  in the previous calendar year, at any time during that year, had 
 2199  $10 million or more in direct premiums written shall: 
 2200         (a) Establish and maintain a unit or division within the 
 2201  company to investigate possible fraudulent claims by insureds or 
 2202  by persons making claims for services or repairs against 
 2203  policies held by insureds; or 
 2204         (b) Contract with others to investigate possible fraudulent 
 2205  claims for services or repairs against policies held by 
 2206  insureds. 
 2207   
 2208  An insurer subject to this subsection shall file with the 
 2209  Division of Insurance Fraud of the department on or before July 
 2210  1, 1996, a detailed description of the unit or division 
 2211  established pursuant to paragraph (a) or a copy of the contract 
 2212  and related documents required by paragraph (b). 
 2213         (2) Every insurer admitted to do business in this state, 
 2214  which in the previous calendar year had less than $10 million in 
 2215  direct premiums written, must adopt an anti-fraud plan and file 
 2216  it with the Division of Insurance Fraud of the department on or 
 2217  before July 1, 1996. An insurer may, in lieu of adopting and 
 2218  filing an anti-fraud plan, comply with the provisions of 
 2219  subsection (1). 
 2220         (3) Each insurers anti-fraud plans shall include: 
 2221         (a) A description of the insurer’s procedures for detecting 
 2222  and investigating possible fraudulent insurance acts. 
 2223         (b) A description of the insurer’s procedures for the 
 2224  mandatory reporting of possible fraudulent insurance acts to the 
 2225  Division of Insurance Fraud of the department. 
 2226         (c) A description of the insurer’s plan for anti-fraud 
 2227  education and training of its claims adjusters or other 
 2228  personnel. 
 2229         (d) A written description or chart outlining the 
 2230  organizational arrangement of the insurer’s anti-fraud personnel 
 2231  who are responsible for the investigation and reporting of 
 2232  possible fraudulent insurance acts. 
 2233         (4) Any insurer who obtains a certificate of authority 
 2234  after July 1, 1995, shall have 18 months in which to comply with 
 2235  the requirements of this section. 
 2236         (5) For purposes of this section, the term “unit or 
 2237  division” includes the assignment of fraud investigation to 
 2238  employees whose principal responsibilities are the investigation 
 2239  and disposition of claims. If an insurer creates a distinct unit 
 2240  or division, hires additional employees, or contracts with 
 2241  another entity to fulfill the requirements of this section, the 
 2242  additional cost incurred must be included as an administrative 
 2243  expense for ratemaking purposes. 
 2244         (6) If an insurer fails to timely submit a final acceptable 
 2245  anti-fraud plan or anti-fraud investigative unit description, 
 2246  fails to implement the provisions of a plan or an anti-fraud 
 2247  investigative unit description, or otherwise refuses to comply 
 2248  with the provisions of this section, the department, may: 
 2249         (a) Impose an administrative fine of not more than $2,000 
 2250  per day for such failure by an insurer to submit an acceptable 
 2251  anti-fraud plan or anti-fraud investigative unit description, 
 2252  until the department deems the insurer to be in compliance; 
 2253         (b) Impose an administrative fine for failure by an insurer 
 2254  to implement or follow the provisions of an anti-fraud plan or 
 2255  anti-fraud investigative unit description; or 
 2256         (c) Impose the provisions of both paragraphs (a) and (b). 
 2257         (7) The department may adopt rules to administer this 
 2258  section. 
 2259         637.1048 Anti-Fraud Reward Program; reporting of title 
 2260  insurance fraud.— 
 2261         (1) The Anti-Fraud Reward Program is hereby established 
 2262  within the department, to be funded from the Title Insurance 
 2263  Regulatory Trust Fund. 
 2264         (2) The department may pay rewards of up to $25,000 to 
 2265  persons providing information leading to the arrest and 
 2266  conviction of persons committing crimes investigated by the 
 2267  Division of Insurance Fraud arising from violations of s. 
 2268  440.105, s. 637.1008, s. 637.1033, s. 637.1046, or s. 817.234. 
 2269         (3) Only a single reward amount may be paid by the 
 2270  department for claims arising out of the same transaction or 
 2271  occurrence, regardless of the number of persons arrested and 
 2272  convicted and the number of persons submitting claims for the 
 2273  reward. The reward may be disbursed among more than one person 
 2274  in amounts determined by the department. 
 2275         (4) The department shall adopt rules which set forth the 
 2276  application and approval process, including the criteria against 
 2277  which claims shall be evaluated, the basis for determining 
 2278  specific reward amounts, and the manner in which rewards shall 
 2279  be disbursed. Applications for rewards authorized by this 
 2280  section must be made pursuant to rules established by the 
 2281  department. 
 2282         (5) Determinations by the department to grant or deny a 
 2283  reward under this section shall not be considered agency action 
 2284  subject to review under s. 120.569 or s. 120.57. 
 2285         637.1049 Disposition of revenues; criminal or forfeiture 
 2286  proceedings.— 
 2287         (1) The Division of Insurance Fraud of the Department of 
 2288  Financial Services may deposit revenues received as a result of 
 2289  criminal proceedings or forfeiture proceedings, other than 
 2290  revenues deposited into the Department of Financial Services’ 
 2291  Federal Law Enforcement Trust Fund under s. 17.43, into the 
 2292  Title Insurance Regulatory Trust Fund. Moneys deposited pursuant 
 2293  to this section shall be separately accounted for and shall be 
 2294  used solely for the division to carry out its duties and 
 2295  responsibilities. 
 2296         (2) Moneys deposited into the Title Insurance Regulatory 
 2297  Trust Fund pursuant to this section shall be appropriated by the 
 2298  Legislature, pursuant to the provisions of chapter 216, for the 
 2299  sole purpose of enabling the division to carry out its duties 
 2300  and responsibilities. 
 2301         (3) Notwithstanding the provisions of s. 216.301 and 
 2302  pursuant to s. 216.351, any balance of moneys deposited into the 
 2303  Title Insurance Regulatory Trust Fund pursuant to this section 
 2304  remaining at the end of any fiscal year shall remain in the 
 2305  trust fund at the end of that year and shall be available for 
 2306  carrying out the duties and responsibilities of the division. 
 2307         Section 4. Part II of chapter 637, Florida Statutes, 
 2308  consisting of sections 637.2001, 637.2002, 637.2003, 637.20035, 
 2309  637.2004, 637.2005, 637.2006, 637.2007, 637.20073, 637.20075, 
 2310  637.2008, 637.2009, 637.2011, 637.2012, 637.2013, 637.2014, 
 2311  637.2015, 637.2016, 637.2017, 637.2018, 637.2019, 637.2021, 
 2312  637.2022, 637.2023, 637.2024, 637.2025, 637.2026, 637.2027, 
 2313  637.2028, 637.2029, 637.2031, 637.2032, 637.2033, 637.2034, 
 2314  637.2035, 637.2036, 637.2037, 637.2038, 637.2039, 637.2041, 
 2315  637.2042, 637.2043, 637.2046, 637.2047, 637.2048, 637.20485, 
 2316  637.2049, 637.2051, 637.2052, 637.2053, 637.2054, 637.2055, 
 2317  637.2056, 637.2057, 637.2058, 637.2059, 637.2061, 637.2063, 
 2318  637.20635, 637.2064, 637.2065, 637.2066, 637.2067, 637.2068, 
 2319  637.2069, 637.2071, 637.2072, 637.2073, 637.2074, 637.2075, 
 2320  637.2076, 637.2077, 637.2078, 637.2079, 637.2081, 637.2082, 
 2321  637.2083, 637.2084, 637.2085, 637.2086, 637.2087, 637.2088, 
 2322  637.2089, and 637.2091, is created and entitled “ADMINISTRATION 
 2323  OF TITLE INSURERS.” 
 2324         Section 5. Sections 637.2001, 637.2002, 637.2003, 
 2325  637.20035, 637.2004, 637.2005, 637.2006, and 637.2007, Florida 
 2326  Statutes, are created to read: 
 2327         637.2001 Certificate of authority required.— 
 2328         (1) A person may not act as a title insurer, and a title 
 2329  insurer or its agents, attorneys, or representatives may not 
 2330  directly or indirectly transact title insurance, in this state 
 2331  except as authorized by a subsisting certificate of authority 
 2332  issued to the title insurer by the department, except as to such 
 2333  transactions as are expressly otherwise provided for in this 
 2334  chapter. 
 2335         (2) A title insurer may not, from offices or by personnel 
 2336  or facilities located in this state, solicit title insurance 
 2337  applications or otherwise transact title insurance in another 
 2338  state or country unless it holds a subsisting certificate of 
 2339  authority issued to it by the department authorizing it to 
 2340  transact the same kind or kinds of title insurance in this 
 2341  state. 
 2342         (3) This state hereby preempts the field of regulating 
 2343  title insurers and their agents and representatives; and a 
 2344  county, city, municipality, district, school district, or 
 2345  political subdivision may not require of any title insurer, 
 2346  title insurance agent, or representative regulated under this 
 2347  chapter any authorization, permit, or registration of any kind 
 2348  for conducting transactions lawful under the authority granted 
 2349  by the state under this chapter. 
 2350         (4)(a) Any person who acts as a title insurer, transacts 
 2351  title insurance, or otherwise engages in title insurance 
 2352  activities in this state without a certificate of authority in 
 2353  violation of this section commits a felony of the third degree, 
 2354  punishable as provided in s. 775.082, s. 775.083, or s. 775.084. 
 2355         (b) However, any person acting as a title insurer without a 
 2356  valid certificate of authority who violates this section commits 
 2357  insurance fraud, punishable as provided in this paragraph. If 
 2358  the amount of any insurance premium collected with respect to 
 2359  any violation of this section: 
 2360         1. Is less than $20,000, the offender commits a felony of 
 2361  the third degree, punishable as provided in s. 775.082, s. 
 2362  775.083, or s. 775.084, and the offender shall be sentenced to a 
 2363  minimum term of imprisonment of 1 year. 
 2364         2. Is $20,000 or more, but less than $100,000, the offender 
 2365  commits a felony of the second degree, punishable as provided in 
 2366  s. 775.082, s. 775.083, or s. 775.084, and the offender shall be 
 2367  sentenced to a minimum term of imprisonment of 18 months. 
 2368         3. Is $100,000 or more, the offender commits a felony of 
 2369  the first degree, punishable as provided in s. 775.082, s. 
 2370  775.083, or s. 775.084, and the offender shall be sentenced to a 
 2371  minimum term of imprisonment of 2 years. 
 2372         637.2002 Exceptions, certificate of authority required.—A 
 2373  certificate of authority shall not be required of a title 
 2374  insurer with respect to: 
 2375         (1) Investigation, settlement, or litigation of claims 
 2376  under its policies lawfully written in this state, or 
 2377  liquidation of assets and liabilities of the insurer (other than 
 2378  collection of new premiums), all as resulting from its former 
 2379  authorized operations in this state. 
 2380         (2) Transactions involving a policy, subsequent to issuance 
 2381  thereof, covering only subjects of insurance not resident, 
 2382  located, or expressly to be performed in this state at the time 
 2383  of issuance, and lawfully solicited, written, or delivered 
 2384  outside this state. 
 2385         (3) Reinsurance, when transacted as authorized under s. 
 2386  637.2049. 
 2387         (4) Investment by a foreign insurer of its funds in real 
 2388  estate in this state or in securities secured thereby, if the 
 2389  foreign insurer complies with the laws of this state relating 
 2390  generally to foreign business corporations. 
 2391         637.2003 General eligibility of title insurers for 
 2392  certificate of authority.—To qualify for and hold authority to 
 2393  transact title insurance in this state, a title insurer must be 
 2394  otherwise in compliance with this chapter and with its charter 
 2395  powers and must be an incorporated stock insurer, an 
 2396  incorporated mutual insurer, or a reciprocal insurer, of the 
 2397  same general type as may be formed as a domestic insurer under 
 2398  this chapter; except that: 
 2399         (1) A title insurer may not be authorized to transact title 
 2400  insurance in this state which does not maintain reserves as 
 2401  required by part I of chapter 625 applicable to the kind or 
 2402  kinds of insurance transacted by such insurer, wherever 
 2403  transacted in the United States, or which transacts insurance in 
 2404  the United States on the assessment premium plan, stipulated 
 2405  premium plan, cooperative plan, or any similar plan. 
 2406         (2) A foreign or alien title insurer or exchange may not be 
 2407  authorized to transact title insurance in this state unless it 
 2408  is otherwise qualified therefor under this chapter and has 
 2409  operated satisfactorily for at least 3 years in its state or 
 2410  country of domicile; however, the department may waive the 3 
 2411  year requirement if the foreign or alien insurer or exchange: 
 2412         (a) Has operated successfully and has capital and surplus 
 2413  of $5 million; 
 2414         (b) Is the wholly owned subsidiary of an insurer which is 
 2415  an authorized insurer in this state; or 
 2416         (c) Is the successor in interest through merger or 
 2417  consolidation of an authorized insurer. 
 2418         (3)(a) The department shall not grant or continue authority 
 2419  to transact title insurance in this state as to any title 
 2420  insurer the management, officers, or directors of which are 
 2421  found by it to be incompetent or untrustworthy; or so lacking in 
 2422  insurance company managerial experience as to make the proposed 
 2423  operation hazardous to the insurance-buying public; or so 
 2424  lacking in insurance experience, ability, and standing as to 
 2425  jeopardize the reasonable promise of successful operation; or 
 2426  which it has good reason to believe are affiliated directly or 
 2427  indirectly through ownership, control, reinsurance transactions, 
 2428  or other insurance or business relations, with any person or 
 2429  persons whose business operations are or have been marked, to 
 2430  the detriment of policyholders or stockholders or investors or 
 2431  creditors or of the public, by manipulation of assets, accounts, 
 2432  or reinsurance or by bad faith. 
 2433         (b) The department shall not grant or continue authority to 
 2434  transact title insurance in this state as to any title insurer 
 2435  if any person, including any subscriber, stockholder, or 
 2436  incorporator, who exercises or has the ability to exercise 
 2437  effective control of the insurer, or who influences or has the 
 2438  ability to influence the transaction of the business of the 
 2439  insurer, does not possess the financial standing and business 
 2440  experience for the successful operation of the insurer. 
 2441         (c) The department may deny, suspend, or revoke the 
 2442  authority to transact title insurance in this state of any title 
 2443  insurer if any person, including any subscriber, stockholder, or 
 2444  incorporator, who exercises or has the ability to exercise 
 2445  effective control of the insurer, or who influences or has the 
 2446  ability to influence the transaction of the business of the 
 2447  insurer, has been found guilty of, or has pleaded guilty or nolo 
 2448  contendere to, any felony or crime punishable by imprisonment of 
 2449  1 year or more under the law of the United States or any state 
 2450  thereof or under the law of any other country which involves 
 2451  moral turpitude, without regard to whether a judgment of 
 2452  conviction has been entered by the court having jurisdiction in 
 2453  such case. However, in the case of an insurer operating under a 
 2454  subsisting certificate of authority, the insurer shall remove 
 2455  any such person immediately upon discovery of the conditions set 
 2456  forth in this paragraph when applicable to such person or upon 
 2457  the order of the department, and the failure to so act by said 
 2458  insurer shall be grounds for revocation or suspension of the 
 2459  insurer’s certificate of authority. 
 2460         (d) The department may deny, suspend, or revoke the 
 2461  authority of a title insurer to transact title insurance in this 
 2462  state if any person, including any subscriber, stockholder, or 
 2463  incorporator, who exercises or has the ability to exercise 
 2464  effective control of the insurer, or who influences or has the 
 2465  ability to influence the transaction of the business of the 
 2466  insurer, which person the department has good reason to believe 
 2467  is now or was in the past affiliated directly or indirectly, 
 2468  through ownership interest of 10 percent or more, control, or 
 2469  reinsurance transactions, with any business, corporation, or 
 2470  other entity that has been found guilty of or has pleaded guilty 
 2471  or nolo contendere to any felony or crime punishable by 
 2472  imprisonment for 1 year or more under the laws of the United 
 2473  States, any state, or any other country, regardless of 
 2474  adjudication. However, in the case of an insurer operating under 
 2475  a subsisting certificate of authority, the insurer shall 
 2476  immediately remove such person or immediately notify the 
 2477  department of such person upon discovery of the conditions set 
 2478  forth in this paragraph, either when applicable to such person 
 2479  or upon order of the department; the failure to remove such 
 2480  person, provide such notice, or comply with such order 
 2481  constitutes grounds for suspension or revocation of the 
 2482  insurer’s certificate of authority. 
 2483         (4)(a) An authorized title insurer may not act as a 
 2484  fronting company for any unauthorized insurer which is not an 
 2485  approved reinsurer. 
 2486         (b) A “fronting company” is an authorized insurer which by 
 2487  reinsurance or otherwise generally transfers more than 50 
 2488  percent to one unauthorized insurer which does not meet the 
 2489  requirements of s. 637.604(3)(a), (b), or (c), or more than 75 
 2490  percent to two or more unauthorized insurers which do not meet 
 2491  the requirements of s. 637.604(3)(a), (b), or (c), of the entire 
 2492  risk of loss on all of the insurance written by it in this 
 2493  state, or on one or more lines of insurance, on all of the 
 2494  business produced through one or more agents or agencies, or on 
 2495  all of the business from a designated geographical territory, 
 2496  without obtaining the prior approval of the department. 
 2497         (c) The department may, in its discretion, approve a 
 2498  transfer of risk in excess of the limits in paragraph (b) upon 
 2499  presentation of evidence, satisfactory to the department, that 
 2500  the transfer would be in the best interests of the financial 
 2501  condition of the insurer and in the best interests of the 
 2502  policyholders. 
 2503         (5) A title insurer may not be authorized to transact title 
 2504  insurance in this state which, during the 3 years immediately 
 2505  preceding its application for a certificate of authority, has 
 2506  violated any of the insurance laws of this state and after being 
 2507  informed of such violation has failed to correct the same; 
 2508  except that, if all other requirements are met, the department 
 2509  may nevertheless issue a certificate of authority to such an 
 2510  insurer upon the filing by the insurer of a sworn statement of 
 2511  all such insurance so written in violation of law, and upon 
 2512  payment to the department of a sum of money as additional filing 
 2513  fee equivalent to all premium taxes and other state taxes and 
 2514  fees as would have been payable by the insurer if such insurance 
 2515  had been lawfully written by an authorized insurer under the 
 2516  laws of this state. This fee, when collected, shall be deposited 
 2517  to the credit of the Title Insurance Regulatory Trust Fund. 
 2518         (6) Nothing in this chapter shall be deemed to prohibit the 
 2519  granting and continuance of a certificate of authority to a 
 2520  domestic title insurer organized as a business trust, if the 
 2521  declaration of trust of such insurer was filed in the department 
 2522  of the Secretary of State prior to January 1, 1959, and if the 
 2523  insurer otherwise meets the applicable requirements of this 
 2524  chapter. Such an insurer may hereinafter in this chapter be 
 2525  referred to as a “business trust insurer.” 
 2526         (7) For the purpose of satisfying the requirements of ss. 
 2527  637.2004 and 637.2007, the investment portfolio of an insurer 
 2528  applying for an initial certificate of authority to do business 
 2529  in this state shall value its bonds and stocks in accordance 
 2530  with the provisions of the latest edition of the publication 
 2531  “Purposes and Procedures Manual of the NAIC Securities Valuation 
 2532  Office” by the National Association of Insurance Commissioners, 
 2533  July 1, 2002, and subsequent amendments thereto, if the 
 2534  valuation methodology remains substantially unchanged. 
 2535         637.20035 Structure of title insurers.—Except as to 
 2536  domestic business trust title insurers as referred to in s. 
 2537  637.2003(6) authorized prior to July 1, 2010, a title insurer 
 2538  shall be a stock insurer. 
 2539         637.2004 Capital funds required; new insurers.— 
 2540         (1) To receive authority to transact title insurance, an 
 2541  insurer applying for its original certificate of authority in 
 2542  this state after the effective date of this section shall 
 2543  possess surplus as to policyholders not less than the greater of 
 2544  $2.5 million or 10 percent of the insurer’s total liabilities; 
 2545  however, no insurer shall be required under this subsection to 
 2546  have surplus as to policyholders greater than $100 million. 
 2547         (2) The requirements of this section shall be based upon 
 2548  all the kinds of insurance actually transacted or to be 
 2549  transacted by the insurer in any and all areas in which it 
 2550  operates, whether or not only a portion of such kinds are to be 
 2551  transacted in this state. 
 2552         (3) As to surplus as to policyholders required for 
 2553  qualification to transact one or more kinds of insurance, 
 2554  domestic mutual insurers are governed by chapter 628, and 
 2555  domestic reciprocal insurers are governed by chapter 629. 
 2556         (4) For the purposes of this section, liabilities shall not 
 2557  include liabilities required under s. 625.041(4). For purposes 
 2558  of computing minimum surplus as to policyholders pursuant to s. 
 2559  625.305(1), liabilities shall include liabilities required under 
 2560  s. 625.041(4). 
 2561         (5) The provisions of this section, as amended by this act, 
 2562  shall apply only to insurers applying for a certificate of 
 2563  authority on or after the effective date of this act. 
 2564         637.2005 Restrictions on insurers that are wholly owned 
 2565  subsidiaries of insurers to do business in state.—Effective 
 2566  December 31, 2010, and notwithstanding any other provision of 
 2567  law: 
 2568         (1) A new certificate of authority for the transaction of 
 2569  title insurance may not be issued to any insurer domiciled in 
 2570  this state that is a wholly owned subsidiary of an insurer 
 2571  authorized to do business in any other state. 
 2572         (2) The rate filings of any insurer domiciled in this state 
 2573  that is a wholly owned subsidiary of an insurer authorized to do 
 2574  business in any other state shall include information relating 
 2575  to the profits of the parent company of the insurer domiciled in 
 2576  this state. 
 2577         637.2006 Officers and directors of insolvent insurers.—Any 
 2578  person who was an officer or director of an insurer doing 
 2579  business in this state and who served in that capacity within 
 2580  the 2-year period prior to the date the insurer became 
 2581  insolvent, for any insolvency that occurs on or after July 1, 
 2582  2002, may not thereafter serve as an officer or director of an 
 2583  insurer authorized in this state unless the officer or director 
 2584  demonstrates that his or her personal actions or omissions were 
 2585  not a significant contributing cause to the insolvency. 
 2586         637.2007 Surplus as to policyholders required; new and 
 2587  existing insurers.— 
 2588         (1) To maintain a certificate of authority to transact 
 2589  title insurance, an insurer in this state shall at all times 
 2590  maintain surplus as to policyholders not less than the greater 
 2591  of $1.5 million or 10 percent of the insurer’s total 
 2592  liabilities. 
 2593         (2) For purposes of this section, liabilities shall not 
 2594  include liabilities required under s. 625.041(4). For purposes 
 2595  of computing minimum surplus as to policyholders pursuant to s. 
 2596  625.305(1), liabilities shall include liabilities required under 
 2597  s. 625.041(4). 
 2598         (3) An insurer may not be required under this section to 
 2599  have surplus as to policyholders greater than $100 million. 
 2600         Section 6. Section 625.330, Florida Statutes, is 
 2601  transferred, renumbered as section 627.20073, Florida Statutes, 
 2602  and amended to read: 
 2603         637.20073 625.330 Special investments by title insurer.— 
 2604         (1) In addition to other investments eligible under this 
 2605  part, a title insurer may invest and have invested an amount not 
 2606  exceeding the greater of $300,000 or 50 percent of that part of 
 2607  its surplus as to policyholders which exceeds the minimum 
 2608  surplus required by s. 637.2007 624.408 in its abstract plant 
 2609  and equipment, in loans secured by mortgages on abstract plants 
 2610  and equipment, and, with the consent of the office, in stocks of 
 2611  abstract companies. If the insurer transacts kinds of insurance 
 2612  in addition to title insurance, for the purposes of this section 
 2613  its paid-in capital stock shall be prorated between title 
 2614  insurance and such other insurances upon the basis of the 
 2615  reserves maintained by the insurer for the various kinds of 
 2616  insurance; but the capital so assigned to title insurance may 
 2617  not shall in any no event be less than $100,000. 
 2618         (2) Subsection (1) does not apply to a business trust 
 2619  insurer. Such an insurer may invest and have invested not 
 2620  exceeding the greater of $300,000 or 50 percent of its net trust 
 2621  fund in excess of the reserve provided for under s. 637.20075 
 2622  625.111 in abstract plants, stock in abstract companies, or 
 2623  corporations controlled by the business trust and created for 
 2624  developing and servicing abstract plants. 
 2625         (3) Investments authorized by this section shall not be 
 2626  credited against the insurer’s required unearned premium or 
 2627  guaranty fund reserve provided for under s. 637.20075 625.111. 
 2628         Section 7. Section 625.111, Florida Statutes, is 
 2629  transferred, renumbered as section 637.20075, Florida Statutes, 
 2630  and amended to read: 
 2631         637.20075 625.111 Title insurance reserve.— 
 2632         (1) In addition to an adequate reserve as to outstanding 
 2633  losses relating to known claims, as required under s. 625.041, a 
 2634  title insurer shall establish, segregate, and maintain a 
 2635  guaranty fund or unearned premium reserve as provided in this 
 2636  section. The sums required under this section to be reserved for 
 2637  unearned premiums on title guarantees and policies at all times 
 2638  and for all purposes shall be considered and constitute unearned 
 2639  portions of the original premiums and shall be charged as a 
 2640  reserve liability of such insurer in determining its financial 
 2641  condition. While such sums are so reserved, they shall be 
 2642  withdrawn from the use of the insurer for its general purposes, 
 2643  impressed with a trust in favor of the holders of title 
 2644  guarantees and policies, and held available for reinsurance of 
 2645  the title guarantees and policies in the event of the insolvency 
 2646  of the insurer. Nothing contained in this section precludes 
 2647  shall preclude such insurer from investing such reserve in 
 2648  investments authorized by law for such an insurer and the income 
 2649  from such invested reserve shall be included in the general 
 2650  income of the insurer to be used by such insurer for any lawful 
 2651  purpose. 
 2652         (2)(1) For unearned premium reserves established on or 
 2653  after July 1, 1999, such unearned premium reserve shall consist 
 2654  of not less than an amount equal to the sum of: 
 2655         (a) A reserve with respect to unearned premiums for 
 2656  policies written or title liability assumed in reinsurance 
 2657  before July 1, 1999, equal to the reserve established on June 
 2658  30, 1999, for those unearned premiums with such reserve being 
 2659  subsequently released as provided in subsection (3) (2). For 
 2660  domestic title insurers subject to this section, such amounts 
 2661  shall be calculated in accordance with provisions of law of this 
 2662  state in effect at the time the associated premiums were written 
 2663  or assumed and as amended prior to July 1, 1999. 
 2664         (b) A total amount equal to 30 cents for each $1,000 of net 
 2665  retained liability for policies written or title liability 
 2666  assumed in reinsurance on or after July 1, 1999, with such 
 2667  reserve being subsequently released as provided in subsection 
 2668  (3) (2). For the purpose of calculating this reserve, the total 
 2669  of the net retained liability for all simultaneous issue 
 2670  policies covering a single risk shall be equal to the liability 
 2671  for the policy with the highest limit covering that single risk, 
 2672  net of any liability ceded in reinsurance. 
 2673         (c) An additional amount, if deemed necessary by a 
 2674  qualified actuary, which shall be subsequently released as 
 2675  provided in subsection (3)(2). Using financial results as of 
 2676  December 31 of each year, all domestic title insurers shall 
 2677  obtain a Statement of Actuarial Opinion from a qualified actuary 
 2678  regarding the insurer’s loss and loss adjustment expense 
 2679  reserves, including reserves for known claims, adverse 
 2680  development on known claims, incurred but not reported claims, 
 2681  and unallocated loss adjustment expenses. The actuarial opinion 
 2682  shall conform to the annual statement instructions for title 
 2683  insurers adopted by the National Association of Insurance 
 2684  Commissioners and shall include the actuary’s professional 
 2685  opinion of the insurer’s reserves as of the date of the annual 
 2686  statement. If the amount of the reserve stated in the opinion 
 2687  and displayed in Schedule P of the annual statement for that 
 2688  reporting date is greater than the sum of the known claim 
 2689  reserve and unearned premium reserve as calculated under this 
 2690  section, as of the same reporting date and including any 
 2691  previous actuarial provisions added at earlier dates, the 
 2692  insurer shall add to the insurer’s unearned premium reserve an 
 2693  actuarial amount equal to the reserve shown in the actuarial 
 2694  opinion, minus the known claim reserve and the unearned premium 
 2695  reserve, as of the current reporting date and calculated in 
 2696  accordance with this section, but in no event calculated as of 
 2697  any date prior to December 31, 1999. The comparison shall be 
 2698  made using that line on Schedule P displaying the Total Net Loss 
 2699  and Loss Adjustment Expense which is comprised of the Known 
 2700  Claim Reserve, and any associated Adverse Development Reserve, 
 2701  the reserve for Incurred But Not Reported Losses, and 
 2702  Unallocated Loss Adjustment Expenses. 
 2703         (3)(2)(a) With respect to the reserve established in 
 2704  accordance with paragraph (2)(1)(a), the domestic title insurer 
 2705  shall release the reserve over a period of 20 subsequent years 
 2706  as provided in this paragraph. The insurer shall release 30 
 2707  percent of the initial aggregate sum during 1999, with one 
 2708  quarter of that amount being released on March 31, June 30, 
 2709  September 30, and December 31, 1999, with the March 31 and June 
 2710  30 releases to be retroactive and reflected on the September 30 
 2711  financial statements. Thereafter, the insurer shall release, on 
 2712  the same quarterly basis as specified for reserves released 
 2713  during 1999, a percentage of the initial aggregate sum as 
 2714  follows: 15 percent during calendar year 2000, 10 percent during 
 2715  each of calendar years 2001 and 2002, 5 percent during each of 
 2716  calendar years 2003 and 2004, 3 percent during each of calendar 
 2717  years 2005 and 2006, 2 percent during each of calendar years 
 2718  2007-2013, and 1 percent during each of calendar years 2014 
 2719  2018. 
 2720         (b) With respect to reserves established in accordance with 
 2721  paragraph (2)(1)(b), the unearned premium for policies written 
 2722  or title liability assumed during a particular calendar year 
 2723  shall be earned, and released from reserve, over a period of 20 
 2724  subsequent years as provided in this paragraph. The insurer 
 2725  shall release 30 percent of the initial sum during the year next 
 2726  succeeding the year the premium was written or assumed, with one 
 2727  quarter of that amount being released on March 31, June 30, 
 2728  September 30, and December 31 of such year. Thereafter, the 
 2729  insurer shall release, on the same quarterly basis as specified 
 2730  for reserves released during the year first succeeding the year 
 2731  the premium was written or assumed, a percentage of the initial 
 2732  sum as follows: 15 percent during the next succeeding year, 10 
 2733  percent during each of the next succeeding 2 years, 5 percent 
 2734  during each of the next succeeding 2 years, 3 percent during 
 2735  each of the next succeeding 2 years, 2 percent during each of 
 2736  the next succeeding 7 years, and 1 percent during each of the 
 2737  next succeeding 5 years. 
 2738         (c) With respect to reserves established in accordance with 
 2739  paragraph (2)(1)(c), any additional amount established in any 
 2740  calendar year shall be released in the years subsequent to its 
 2741  establishment as provided in paragraph (b), with the timing and 
 2742  percentage of releases being in all respects identical to those 
 2743  of unearned premium reserves that are calculated as provided in 
 2744  paragraph (b) and established with regard to premiums written or 
 2745  liability assumed in reinsurance in the same year as the year in 
 2746  which any additional amount was originally established. 
 2747         (4)(3) At any reporting date, the amount of the required 
 2748  releases of existing unearned premium reserves under subsection 
 2749  (3)(2) shall be calculated and deducted from the total unearned 
 2750  premium reserve before any additional amount is established for 
 2751  the current calendar year in accordance with the provisions of 
 2752  paragraph (2)(1)(c). 
 2753         (5)(4) As used in this section: 
 2754         (a) “Net retained liability” means the total liability 
 2755  retained by a title insurer for a single risk, after taking into 
 2756  account the deduction for ceded liability, if any. 
 2757         (b) “Qualified actuary” means a person who is, as detailed 
 2758  in the National Association of Insurance Commissioners’ Annual 
 2759  Statement Instructions: 
 2760         1. A member in good standing of the Casualty Actuarial 
 2761  Society; 
 2762         2. A member in good standing of the American Academy of 
 2763  Actuaries who has been approved as qualified for signing 
 2764  casualty loss reserve opinions by the Casualty Practice Council 
 2765  of the American Academy of Actuaries; or 
 2766         3. A person who otherwise has competency in loss reserve 
 2767  evaluation as demonstrated to the satisfaction of the insurance 
 2768  regulatory official of the domiciliary state. In such case, at 
 2769  least 90 days prior to the filing of its annual statement, the 
 2770  insurer must request approval that the person be deemed 
 2771  qualified and that request must be approved or denied. The 
 2772  request must include the National Association of Insurance 
 2773  Commissioners’ Biographical Form and a list of all loss reserve 
 2774  opinions issued in the last 3 years by this person. 
 2775         (c) “Single risk” means the insured amount of any title 
 2776  insurance policy, except that where two or more title insurance 
 2777  policies are issued simultaneously covering different estates in 
 2778  the same real property, “single risk” means the sum of the 
 2779  insured amounts of all such title insurance policies. Any title 
 2780  insurance policy insuring a mortgage interest, a claim payment 
 2781  under which reduces the insured amount of a fee or leasehold 
 2782  title insurance policy, shall be excluded in computing the 
 2783  amount of a single risk to the extent that the insured amount of 
 2784  the mortgage title insurance policy does not exceed the insured 
 2785  amount of the fee or leasehold title insurance policy. 
 2786         Section 8. Sections 637.2008, 637.2009, 637.2011, 637.2012, 
 2787  637.2013, 637.2014, 637.2015, 637.2016, 637.2017, 637.2018, 
 2788  637.2019, 637.2021, 637.2022, 637.2023, 637.2024, 637.2025, 
 2789  637.2026, 637.2027, 637.2028, 637.2029, 637.2031, 637.2032, 
 2790  637.2033, 637.2034, 637.2035, 637.2036, 637.2037, 637.2038, 
 2791  637.2039, 637.2041, 637.2042, 637.2043, 637.2046, 637.2047, and 
 2792  637.2048, Florida Statutes, are created to read: 
 2793         637.2008 Premiums written; restrictions.— 
 2794         (1) Whenever a title insurer’s ratio of actual or projected 
 2795  annual written premiums as adjusted in accordance with 
 2796  subsection (4) to current or projected surplus as to 
 2797  policyholders as adjusted in accordance with subsection (6) 
 2798  exceeds 10 to 1 for gross written premiums or exceeds 4 to 1 for 
 2799  net written premiums, the department shall suspend the insurer’s 
 2800  certificate of authority or establish by order maximum gross or 
 2801  net annual premiums to be written by the insurer consistent with 
 2802  maintaining the ratios specified herein unless the insurer 
 2803  demonstrates to the department’s satisfaction that exceeding the 
 2804  ratios of this section does not endanger the financial condition 
 2805  of the insurer or endanger the interests of the insurer’s 
 2806  policyholders. 
 2807         (2) Projected annual net or gross premiums shall be based 
 2808  on the actual writings to date for the title insurer’s current 
 2809  calendar year or the insurer’s writings for the previous 
 2810  calendar year or both. Ratios shall be computed on an annualized 
 2811  basis. 
 2812         (3) For the purposes of this section, gross premiums 
 2813  written means direct premiums written and reinsurance assumed. 
 2814         (4) For the purposes of this section, for each calendar 
 2815  year premiums shall be calculated as the product of the actual 
 2816  or projected premiums and 1.00. 
 2817         637.2009 Deposit requirement; domestic title insurers and 
 2818  foreign title insurers.— 
 2819         (1) As to domestic title insurers, the department shall not 
 2820  issue or permit to exist a certificate of authority unless such 
 2821  insurer has deposited and maintains deposited in trust for the 
 2822  protection of the insurer’s policyholders or its policyholders 
 2823  and creditors with the department securities eligible for such 
 2824  deposit under s. 625.52, having at all times a value of not less 
 2825  than $100,000. 
 2826         (2) As to foreign title insurers, the department, upon 
 2827  issuing or permitting to exist a certificate of authority, may 
 2828  require for good cause a deposit and maintenance of the deposit 
 2829  in trust for the protection of the insured’s policyholders or 
 2830  its policyholders and creditors with the department securities 
 2831  eligible for such deposit under s. 625.52, having at all times a 
 2832  value of not less than $100,000 A foreign insurer with surplus 
 2833  as to policyholders of more than $10 million according to its 
 2834  latest annual statement shall not be required to make a deposit 
 2835  under this subsection. 
 2836         (3) Whenever the department determines that the financial 
 2837  condition of a title insurer has deteriorated or that the 
 2838  policyholders’ best interests are not being preserved by the 
 2839  activities of an insurer, the department may require such 
 2840  insurer to deposit and maintain deposited in trust with the 
 2841  department for the protection of the insurer’s policyholders or 
 2842  its policyholders and creditors, for such time as the department 
 2843  deems necessary, securities eligible for such deposit under s. 
 2844  625.52, having a market value of not less than the amount which 
 2845  the department determines is necessary, which amount shall be 
 2846  not less than $100,000, or more than 25 percent of the insurer’s 
 2847  obligations in this state, as determined from the latest annual 
 2848  financial statement of the insured. The deposit required under 
 2849  this subsection shall not exceed $2 million and is in addition 
 2850  to any other deposits required of an insurer pursuant to 
 2851  subsections (1) and (2) or any other provisions of this chapter. 
 2852         (4) All such deposits in this state are subject to the 
 2853  applicable provisions of part III of chapter 625. 
 2854         637.2011 Deposit of alien insurers.— 
 2855         (1) An alien title insurer may not transact insurance in 
 2856  this state unless it has and maintains within the United States 
 2857  as trust deposits with public officials having supervision over 
 2858  insurers, or with trustees, public depositories, or trust 
 2859  institutions approved by the department, assets available for 
 2860  discharge of its United States insurance obligations, which 
 2861  assets shall be in amount not less than the outstanding reserves 
 2862  and other liabilities of the insurer arising out of its 
 2863  insurance transactions in the United States together with the 
 2864  amount of surplus as to policyholders required by s. 637.2007 of 
 2865  a domestic stock insurer transacting like kinds of insurance. 
 2866         (2) Any such deposit made in this state shall be held for 
 2867  the protection of the insurer’s policyholders or policyholders 
 2868  and creditors in the United States and shall be subject to the 
 2869  applicable provisions of part III of chapter 625 and chapter 
 2870  630. 
 2871         637.2012 Application for certificate of authority.— 
 2872         (1) To apply for a certificate of authority, a title 
 2873  insurer shall file its application therefor with the department, 
 2874  upon a form adopted by the department and furnished by the 
 2875  department, showing its name; location of its home office and, 
 2876  if an alien insurer, its principal office in the United States; 
 2877  kinds of insurance to be transacted; state or country of 
 2878  domicile; and such additional information as the department 
 2879  reasonably requires, together with the following documents: 
 2880         (a) One copy of its corporate charter, articles of 
 2881  incorporation, existing and proposed nonfacultative reinsurance 
 2882  contracts, declaration of trust, or other charter documents, 
 2883  with all amendments thereto, certified by the public official 
 2884  with whom the originals are on file in the state or country of 
 2885  domicile. 
 2886         (b) If a mutual insurer, a copy of its bylaws, as amended, 
 2887  certified by its secretary or other officer having custody 
 2888  thereof. 
 2889         (c) If a foreign or alien reciprocal insurer, a copy of the 
 2890  power of attorney of its attorney in fact and of its 
 2891  subscribers’ agreement, if any, certified by the attorney in 
 2892  fact; and, if a domestic reciprocal insurer, the declaration 
 2893  provided for in s. 629.081. 
 2894         (d) A copy of its financial statement as of December 31 
 2895  next preceding, containing information generally included in 
 2896  insurer financial statements prepared in accordance with 
 2897  generally accepted insurance accounting principles and practices 
 2898  and in a form generally utilized by insurers for financial 
 2899  statements, sworn to by at least two executive officers of the 
 2900  insurer, or certified by the public official having supervision 
 2901  of insurance in the insurer’s state of domicile or of entry into 
 2902  the United States. To facilitate uniformity in financial 
 2903  statements, the department may by rule adopt the form for 
 2904  financial statements approved by the National Association of 
 2905  Insurance Commissioners in 2002, and may adopt subsequent 
 2906  amendments thereto if the form remains substantially consistent. 
 2907         (e) Supplemental quarterly financial statements for each 
 2908  calendar quarter since the beginning of the year of its 
 2909  application for the certificate of authority, sworn to by at 
 2910  least two of its executive officers. To facilitate uniformity in 
 2911  financial statements, the department may by rule adopt the form 
 2912  for quarterly financial statements approved by the National 
 2913  Association of Insurance Commissioners in 2002, and may adopt 
 2914  subsequent amendments thereto if the form remains substantially 
 2915  consistent. 
 2916         (f) If a foreign or alien insurer, a copy of the report of 
 2917  the most recent examination of the insurer certified by the 
 2918  public official having supervision of insurance in its state of 
 2919  domicile or of entry into the United States. The end of the most 
 2920  recent year covered by the examination must be within the 3-year 
 2921  period preceding the date of application. In lieu of the 
 2922  certified examination report, the department may accept an 
 2923  audited certified public accountant’s report prepared on a basis 
 2924  consistent with the insurance laws of the insurer’s state of 
 2925  domicile, certified by the public official having supervision of 
 2926  insurance in its state of domicile or of entry into the United 
 2927  States. 
 2928         (g) If a foreign or alien insurer, a certificate of 
 2929  compliance from the public official having supervision of 
 2930  insurance in its state or country of domicile showing that it is 
 2931  duly organized and authorized to transact insurance therein and 
 2932  the kinds of insurance it is so authorized to transact. 
 2933         (h) If a foreign or alien insurer, a certificate of the 
 2934  public official having custody of any deposit maintained by the 
 2935  insurer in another state in lieu of a deposit or part thereof 
 2936  required in this state under s. 637.2009 or s. 637.2011, showing 
 2937  the amount of such deposit and the assets or securities of which 
 2938  comprised. 
 2939         (i) If an alien insurer, a copy of the appointment and 
 2940  authority of its United States manager, certified by its officer 
 2941  having custody of its records. 
 2942         (2) The application shall be accompanied by the applicable 
 2943  fees and license tax as specified in s. 637.2031. 
 2944         637.2013 Redomestication.—The department shall adopt rules 
 2945  establishing procedures and forms for a foreign title insurer to 
 2946  apply for a certificate of authority as a domestic title 
 2947  insurer. 
 2948         637.2014 Issuance or refusal of authority.—The fee for 
 2949  filing application for a certificate of authority shall not be 
 2950  subject to refund. The department shall issue to the applicant 
 2951  title insurer a proper certificate of authority if it finds that 
 2952  the insurer has met the requirements of this chapter, exclusive 
 2953  of the requirements relative to the filing and approval of an 
 2954  insurer’s policy forms, riders, endorsements, applications, and 
 2955  rates. If it does not so find, the department shall issue its 
 2956  order refusing the certificate. The certificate, if issued, 
 2957  shall specify the kind or kinds and line or lines of insurance 
 2958  the insurer is authorized to transact in this state. The 
 2959  issuance of a certificate of authority does not signify that an 
 2960  insurer has met the requirements of this chapter relative to the 
 2961  filing and approval of an insurer’s policy forms, riders, 
 2962  endorsements, applications, and rates which may be required 
 2963  prior to an insurer actually writing any premiums. 
 2964         637.2015 Ownership of certificate of authority; return. 
 2965  Although issued to the insurer, the certificate of authority is 
 2966  at all times the property of this state. Upon any expiration, 
 2967  suspension, or termination thereof, the insurer shall promptly 
 2968  deliver the certificate of authority to the department. 
 2969         637.2016 Continuance, expiration, reinstatement, and 
 2970  amendment of certificate of authority.— 
 2971         (1) A certificate of authority issued under this chapter 
 2972  shall continue in force as long as the insurer is entitled 
 2973  thereto under this chapter and until suspended, revoked, or 
 2974  terminated at the request of the insurer; subject, however, to 
 2975  continuance of the certificate by the insurer each year by: 
 2976         (a) Payment prior to June 1 of the annual license tax 
 2977  provided for in s. 637.2031(3); 
 2978         (b) Due filing by the insurer of its annual statement for 
 2979  the calendar year preceding as required under s. 637.2024; and 
 2980         (c) Payment by the insurer of applicable taxes with respect 
 2981  to the preceding calendar year as required under this chapter. 
 2982         (2) If not so continued by the insurer, its certificate of 
 2983  authority shall expire at midnight on the May 31 next following 
 2984  such failure of the insurer so to continue it in force. The 
 2985  department shall promptly notify the insurer of the occurrence 
 2986  of any failure resulting in impending expiration of its 
 2987  certificate of authority. 
 2988         (3) The department may, in its discretion, reinstate a 
 2989  certificate of authority which the insurer has inadvertently 
 2990  permitted to expire, after the insurer has fully cured all its 
 2991  failures which resulted in the expiration, and upon payment by 
 2992  the insurer of the fee for reinstatement, in the amount provided 
 2993  in s. 637.2031(1)(b). Otherwise, the insurer shall be granted 
 2994  another certificate of authority only after filing application 
 2995  therefor and meeting all other requirements as for an original 
 2996  certificate of authority in this state. 
 2997         (4) The department may amend a certificate of authority at 
 2998  any time to accord with changes in the insurer’s charter or 
 2999  insuring powers. 
 3000         637.2017 Suspension, revocation of certificate of authority 
 3001  for violations and special grounds.— 
 3002         (1) The department shall suspend or revoke a title 
 3003  insurer’s certificate of authority if it finds that the insurer: 
 3004         (a) Is in unsound financial condition. 
 3005         (b) Is using such methods and practices in the conduct of 
 3006  its business as to render its further transaction of insurance 
 3007  in this state hazardous or injurious to its policyholders or to 
 3008  the public. 
 3009         (c) Has failed to pay any final judgment rendered against 
 3010  it in this state within 60 days after the judgment became final. 
 3011         (d) No longer meets the requirements for the authority 
 3012  originally granted. 
 3013         (2) The department may, in its discretion, suspend or 
 3014  revoke the certificate of authority of an insurer if it finds 
 3015  that the insurer: 
 3016         (a) Has violated any lawful order or rule of the department 
 3017  or any provision of this chapter. 
 3018         (b) Has refused to be examined or to produce its accounts, 
 3019  records, and files for examination, or if any of its officers 
 3020  have refused to give information with respect to its affairs or 
 3021  to perform any other legal obligation as to such examination, 
 3022  when required by the department. 
 3023         (c) Has for any line, class, or combination thereof, with 
 3024  such frequency as to indicate its general business practice in 
 3025  this state, without just cause refused to pay proper claims 
 3026  arising under its policies, whether any such claim is in favor 
 3027  of an insured or is in favor of a third person with respect to 
 3028  the liability of an insured to such third person, or without 
 3029  just cause compels such insureds or claimants to accept less 
 3030  than the amount due them or to employ attorneys or to bring suit 
 3031  against the insurer or such an insured to secure full payment or 
 3032  settlement of such claims. 
 3033         (d) Is affiliated with and under the same general 
 3034  management or interlocking directorate or ownership as another 
 3035  insurer which transacts direct insurance in this state without 
 3036  having a certificate of authority therefor, except as permitted 
 3037  as to surplus lines insurers under part VIII of chapter 626. 
 3038         (e) Has been convicted of, or entered a plea of guilty or 
 3039  nolo contendere to, a felony relating to the transaction of 
 3040  insurance, in this state or in any other state, without regard 
 3041  to whether adjudication was withheld. 
 3042         (f) Has a ratio of net premiums written to surplus as to 
 3043  policyholders that exceeds 4 to 1, and the department has reason 
 3044  to believe that the financial condition of the insurer endangers 
 3045  the interests of the policyholders. The ratio of net premiums 
 3046  written to surplus as to policyholders shall be on an annualized 
 3047  actual or projected basis. The ratio shall be based on the 
 3048  insurer’s current calendar year activities and experience to 
 3049  date or the insurer’s previous calendar year activities and 
 3050  experience, or both, and shall be calculated to represent a 12 
 3051  month period. However, the provisions of this paragraph do not 
 3052  apply to any insurance or insurer exempted from s. 637.2008. 
 3053         (g) Is under suspension or revocation in another state. 
 3054         (3) The insolvency or impairment of an insurer constitutes 
 3055  an immediate serious danger to the public health, safety, or 
 3056  welfare; and the department may, at its discretion, without 
 3057  prior notice and the opportunity for hearing immediately suspend 
 3058  the certificate of authority of an insurer upon a determination 
 3059  that: 
 3060         (a) The insurer is impaired or insolvent; or 
 3061         (b) Receivership, conservatorship, rehabilitation, or other 
 3062  delinquency proceedings have been initiated against the insurer 
 3063  by the public insurance supervisory official of any state. 
 3064         637.2018 Order, notice of suspension or revocation of 
 3065  certificate of authority; effect; publication.— 
 3066         (1) Suspension or revocation of a title insurer’s 
 3067  certificate of authority shall be by the order of the 
 3068  department. The department shall promptly also give notice of 
 3069  such suspension or revocation to the insurer’s agents in this 
 3070  state of record. The insurer shall not solicit or write any new 
 3071  coverages in this state during the period of any such suspension 
 3072  and may renew coverages only upon a finding by the department 
 3073  that the insurer is capable of servicing the renewal coverage. 
 3074  The insurer shall not solicit or write any new or renewal 
 3075  coverages after any such revocation. 
 3076         (2) In its discretion, the department may cause notice of 
 3077  any such suspension or revocation to be published in one or more 
 3078  newspapers of general circulation published in this state. 
 3079         637.2019 Duration of suspension; insurer’s obligations 
 3080  during suspension period; reinstatement.— 
 3081         (1) Suspension of a title insurer’s certificate of 
 3082  authority shall be for: 
 3083         (a) A fixed period of time not to exceed 2 years; or 
 3084         (b) Until the occurrence of a specific event necessary for 
 3085  remedying the reasons for suspension. 
 3086   
 3087  Such suspension may be modified, rescinded, or reversed. 
 3088         (2) During the period of suspension, the insurer shall file 
 3089  with the department all documents and information and pay all 
 3090  license fees and taxes as required under this chapter as if the 
 3091  certificate had continued in full force. 
 3092         (3) If the suspension of the certificate of authority is 
 3093  for a fixed period of time and the certificate of authority has 
 3094  not been otherwise terminated, upon expiration of the suspension 
 3095  period the insurer’s certificate of authority shall be 
 3096  reinstated unless the department finds that the insurer is not 
 3097  in compliance with the requirements of this chapter. The 
 3098  department shall promptly notify the insurer of such 
 3099  reinstatement, and the insurer shall not consider its 
 3100  certificate of authority reinstated until so notified by the 
 3101  department. If not reinstated, the certificate of authority 
 3102  shall be deemed to have expired as of the end of the suspension 
 3103  period or upon failure of the insurer to continue the 
 3104  certificate during the suspension period in accordance with 
 3105  subsection (2), whichever event first occurs. 
 3106         (4) If the suspension of the certificate of authority was 
 3107  until the occurrence of a specific event or events and the 
 3108  certificate of authority has not been otherwise terminated, upon 
 3109  the presentation of evidence satisfactory to the department that 
 3110  the specific event or events have occurred, the insurer’s 
 3111  certificate of authority shall be reinstated unless the 
 3112  department finds that the insurer is otherwise not in compliance 
 3113  with the requirements of this chapter. The department shall 
 3114  promptly notify the insurer of such reinstatement, and the 
 3115  insurer shall not consider its certificate of authority 
 3116  reinstated until so notified by the department. If satisfactory 
 3117  evidence as to the occurrence of the specific event or events 
 3118  has not been presented to the department within 2 years of the 
 3119  date of such suspension, the certificate of authority shall be 
 3120  deemed to have expired as of 2 years from the date of suspension 
 3121  or upon failure of the insurer to continue the certificate 
 3122  during the suspension period in accordance with subsection (2), 
 3123  whichever first occurs. 
 3124         (5) Upon reinstatement of the insurer’s certificate of 
 3125  authority, the authority of its agents in this state to 
 3126  represent the insurer shall likewise reinstate. The department 
 3127  shall promptly notify the insurer of such reinstatement. 
 3128         637.2021 Administrative fine in lieu of suspension or 
 3129  revocation.— 
 3130         (1) If the department finds that one or more grounds exist 
 3131  for the discretionary revocation or suspension of a certificate 
 3132  of authority issued under this chapter, the department may, in 
 3133  lieu of such revocation or suspension, impose a fine upon the 
 3134  title insurer. 
 3135         (2) With respect to any nonwillful violation, such fine 
 3136  shall not exceed $2,500 per violation. In no event shall such 
 3137  fine exceed an aggregate amount of $10,000 for all nonwillful 
 3138  violations arising out of the same action. When an insurer 
 3139  discovers a nonwillful violation, the insurer shall correct the 
 3140  violation and, if restitution is due, make restitution to all 
 3141  affected persons. Such restitution shall include interest at 12 
 3142  percent per year from either the date of the violation or the 
 3143  date of inception of the affected person’s policy, at the 
 3144  insurer’s option. The restitution may be a credit against future 
 3145  premiums due provided that the interest shall accumulate until 
 3146  the premiums are due. If the amount of restitution due to any 
 3147  person is $50 or more and the insurer wishes to credit it 
 3148  against future premiums, it shall notify such person that she or 
 3149  he may receive a check instead of a credit. If the credit is on 
 3150  a policy which is not renewed, the insurer shall pay the 
 3151  restitution to the person to whom it is due. 
 3152         (3) With respect to any knowing and willful violation of a 
 3153  lawful order or rule of the department or a provision of this 
 3154  chapter, the department may impose a fine upon the insurer in an 
 3155  amount not to exceed $20,000 for each such violation. In no 
 3156  event shall such fine exceed an aggregate amount of $100,000 for 
 3157  all knowing and willful violations arising out of the same 
 3158  action. In addition to such fines, such insurer shall make 
 3159  restitution when due in accordance with the provisions of 
 3160  subsection (2). 
 3161         (4) The failure of an insurer to make restitution when due 
 3162  as required under this section constitutes a willful violation 
 3163  of this chapter. However, if an insurer in good faith is 
 3164  uncertain as to whether any restitution is due or as to the 
 3165  amount of such restitution, it shall promptly notify the 
 3166  department of the circumstances; and the failure to make 
 3167  restitution pending a determination thereof shall not constitute 
 3168  a violation of this chapter. 
 3169         637.2022 Service of process; appointment of Chief Financial 
 3170  Officer as process agent.— 
 3171         (1) Each licensed title insurer, whether domestic, foreign, 
 3172  or alien, shall be deemed to have appointed the Chief Financial 
 3173  Officer and her or his successors in the department as its 
 3174  attorney to receive service of all legal process issued against 
 3175  it in any civil action or proceeding in this state; and process 
 3176  so served shall be valid and binding upon the insurer. 
 3177         (2) Prior to its authorization to transact insurance in 
 3178  this state, each insurer shall file with the department 
 3179  designation of the name and address of the person to whom 
 3180  process against it served upon the Chief Financial Officer is to 
 3181  be forwarded. The insurer may change the designation at any time 
 3182  by a new filing. 
 3183         (3) Service of process upon the Chief Financial Officer as 
 3184  the insurer’s attorney pursuant to such an appointment shall be 
 3185  the sole method of service of process upon an authorized 
 3186  domestic, foreign, or alien insurer in this state. 
 3187         637.2023 Serving process.— 
 3188         (1) Service of process upon the Chief Financial Officer as 
 3189  process agent of the title insurer under s. 637.2022 shall be 
 3190  made by serving copies in triplicate of the process upon the 
 3191  Chief Financial Officer or upon her or his assistant, deputy, or 
 3192  other person in charge of her or his office. Upon receiving such 
 3193  service, the Chief Financial Officer shall file one copy in her 
 3194  or his office, return one copy with her or his admission of 
 3195  service, and promptly forward one copy of the process by 
 3196  registered or certified mail to the person last designated by 
 3197  the insurer to receive the same, as provided under s. 
 3198  637.2022(2). 
 3199         (2) When process is served upon the Chief Financial Officer 
 3200  as an insurer’s process agent, the insurer shall not be required 
 3201  to answer or plead except within 20 days after the date upon 
 3202  which the Chief Financial Officer mailed a copy of the process 
 3203  served upon her or him as required by subsection (1). 
 3204         (3) Process served upon the Chief Financial Officer and 
 3205  copy thereof forwarded as in this section provided shall for all 
 3206  purposes constitute valid and binding service thereof upon the 
 3207  insurer. 
 3208         637.2024 Annual statement and other information.— 
 3209         (1)(a) Each authorized title insurer shall file with the 
 3210  department full and true statements of its financial condition, 
 3211  transactions, and affairs. An annual statement covering the 
 3212  preceding calendar year shall be filed on or before March 1, and 
 3213  quarterly statements covering the periods ending on March 31, 
 3214  June 30, and September 30 shall be filed within 45 days after 
 3215  each such date. The department may, for good cause, grant an 
 3216  extension of time for filing of an annual or quarterly 
 3217  statement. The statements shall contain information generally 
 3218  included in insurers’ financial statements prepared in 
 3219  accordance with generally accepted insurance accounting 
 3220  principles and practices and in a form generally utilized by 
 3221  insurers for financial statements, sworn to by at least two 
 3222  executive officers of the insurer or, if a reciprocal insurer, 
 3223  by the oath of the attorney in fact or its like officer if a 
 3224  corporation. To facilitate uniformity in financial statements 
 3225  and to facilitate department analysis, the department may by 
 3226  rule adopt the form for financial statements approved by the 
 3227  National Association of Insurance Commissioners in 2002, and may 
 3228  adopt subsequent amendments thereto if the methodology remains 
 3229  substantially consistent, and may by rule require each insurer 
 3230  to submit to the department or such organization as the 
 3231  department may designate all or part of the information 
 3232  contained in the financial statement in a computer-readable form 
 3233  compatible with the electronic data processing system specified 
 3234  by the department. 
 3235         (b) The department may by rule require reports or filings 
 3236  required under this chapter to be submitted by electronic means 
 3237  in a computer-readable form compatible with the electronic data 
 3238  processing equipment specified by the department. 
 3239         (2) The statement of an alien insurer shall be verified by 
 3240  the insurer’s United States manager or other officer duly 
 3241  authorized. It shall be a separate statement, to be known as its 
 3242  general statement, of its transactions, assets, and affairs 
 3243  within the United States unless the department requires 
 3244  otherwise. If the department requires a statement as to the 
 3245  insurer’s affairs elsewhere, the insurer shall file such 
 3246  statement with the department as soon as reasonably possible. 
 3247         (3) At the time of filing, the insurer shall pay the fee 
 3248  for filing its annual statement in the amount specified in s. 
 3249  637.2031. 
 3250         (4) The department may refuse to continue, or may suspend 
 3251  or revoke, the certificate of authority of an insurer failing to 
 3252  file its annual or quarterly statements and accompanying 
 3253  certificates when due. 
 3254         (5) In addition to information called for and furnished in 
 3255  connection with its annual or quarterly statements, an insurer 
 3256  shall furnish to the department as soon as reasonably possible 
 3257  such information as to its transactions or affairs as the 
 3258  department may from time to time request in writing. All such 
 3259  information furnished pursuant to the department’s request shall 
 3260  be verified by the oath of two executive officers of the insurer 
 3261  or, if a reciprocal insurer, by the oath of the attorney in fact 
 3262  or its like officers if a corporation. 
 3263         (6) The signatures of all such persons when written on 
 3264  annual or quarterly statements or other reports required by this 
 3265  section shall be presumed to have been so written by authority 
 3266  of the person whose signature is affixed thereon. The affixing 
 3267  of any signature by anyone other than the purported signer 
 3268  constitutes a felony of the second degree, punishable as 
 3269  provided in s. 775.082, s. 775.083, or s. 775.084. 
 3270         (7)(a) All authorized insurers must have conducted an 
 3271  annual audit by an independent certified public accountant and 
 3272  must file an audited financial report with the department on or 
 3273  before June 1 for the preceding year ending December 31. The 
 3274  department may require an insurer to file an audited financial 
 3275  report earlier than June 1 upon 90 days’ advance notice to the 
 3276  insurer. The department may immediately suspend an insurer’s 
 3277  certificate of authority by order if an insurer’s failure to 
 3278  file required reports, financial statements, or information 
 3279  required by this subsection or rule adopted pursuant thereto 
 3280  creates a significant uncertainty as to the insurer’s continuing 
 3281  eligibility for a certificate of authority. 
 3282         (b) Any authorized insurer otherwise subject to this 
 3283  section having direct premiums written in this state of less 
 3284  than $1 million in any calendar year and fewer than 1,000 
 3285  policyholders or certificateholders of directly written policies 
 3286  nationwide at the end of such calendar year is exempt from this 
 3287  section for such year unless the department makes a specific 
 3288  finding that compliance is necessary in order for the department 
 3289  to carry out its statutory responsibilities. However, any 
 3290  insurer having assumed premiums pursuant to contracts or 
 3291  treaties or reinsurance of $1 million or more is not exempt. Any 
 3292  insurer subject to an exemption must submit by March 1 following 
 3293  the year to which the exemption applies an affidavit sworn to by 
 3294  a responsible officer of the insurer specifying the amount of 
 3295  direct premiums written in this state and number of 
 3296  policyholders or certificateholders. 
 3297         (c) The board of directors of an insurer shall hire the 
 3298  certified public accountant that prepares the audit required by 
 3299  this subsection and the board shall establish an audit committee 
 3300  of three or more directors of the insurer or an affiliated 
 3301  company. The audit committee shall be responsible for discussing 
 3302  audit findings and interacting with the certified public 
 3303  accountant with regard to her or his findings. The audit 
 3304  committee shall be comprised solely of members who are free from 
 3305  any relationship that, in the opinion of its board of directors, 
 3306  would interfere with the exercise of independent judgment as a 
 3307  committee member. The audit committee shall report to the board 
 3308  any findings of adverse financial conditions or significant 
 3309  deficiencies in internal controls that have been noted by the 
 3310  accountant. The insurer may request the department to waive this 
 3311  requirement of the audit committee membership based upon unusual 
 3312  hardship to the insurer. 
 3313         (d) An insurer may not use the same accountant or partner 
 3314  of an accounting firm responsible for preparing the report 
 3315  required by this subsection for more than 7 consecutive years. 
 3316  Following this period, the insurer may not use such accountant 
 3317  or partner for a period of 2 years, but may use another 
 3318  accountant or partner of the same firm. An insurer may request 
 3319  the department to waive this prohibition based upon an unusual 
 3320  hardship to the insurer and a determination that the accountant 
 3321  is exercising independent judgment that is not unduly influenced 
 3322  by the insurer considering such factors as the number of 
 3323  partners, expertise of the partners or the number of insurance 
 3324  clients of the accounting firm; the premium volume of the 
 3325  insurer; and the number of jurisdictions in which the insurer 
 3326  transacts business. 
 3327         (e) The department shall adopt rules to implement this 
 3328  subsection, which rules must be in substantial conformity with 
 3329  the 1998 Model Rule Requiring Annual Audited Financial Reports 
 3330  adopted by the National Association of Insurance Commissioners, 
 3331  except where inconsistent with the requirements of this 
 3332  subsection. Any exception to, waiver of, or interpretation of 
 3333  accounting requirements of the department must be in writing and 
 3334  signed by an authorized representative of the department. No 
 3335  insurer may raise as a defense in any action, any exception to, 
 3336  waiver of, or interpretation of accounting requirements, unless 
 3337  previously issued in writing by an authorized representative of 
 3338  the department. 
 3339         637.2025 NAIC filing requirements.— 
 3340         (1) Each domestic, foreign, and alien title insurer who is 
 3341  authorized to transact title insurance in this state shall file 
 3342  one extra copy of its annual statement convention blank, along 
 3343  with such additional filings as prescribed by the department for 
 3344  the preceding year. Such extra copy shall be for the explicit 
 3345  purpose of allowing the department to forward it to the National 
 3346  Association of Insurance Commissioners. 
 3347         (2) Coincident with the filing of the documents required in 
 3348  subsection (1), each insurer shall pay to the department a 
 3349  reasonable fee to cover the costs associated with the filing and 
 3350  analysis of the documents by the National Association of 
 3351  Insurance Commissioners and the department. 
 3352         (3) The provisions of this section shall not apply to any 
 3353  foreign, domestic, or alien insurer which has filed such 
 3354  documents directly with the National Association of Insurance 
 3355  Commissioners if the National Association of Insurance 
 3356  Commissioners has certified receipt of the required documents to 
 3357  the department. 
 3358         637.2026 Change in controlling interest of foreign or alien 
 3359  title insurer; report required.—In the event of a change in the 
 3360  controlling capital stock or a change of 50 percent or more of 
 3361  the assets of a foreign or alien title insurer, such insurer 
 3362  shall report such change in writing to the department within 30 
 3363  days of the effective date thereof. The report shall contain the 
 3364  name and address of the new owner or owners of the controlling 
 3365  stock or assets, the nature and value of the new assets, and 
 3366  such other relevant information as the department may reasonably 
 3367  require. For the purposes of this section, the term “controlling 
 3368  capital stock” means a sufficient number of shares of the issued 
 3369  and outstanding capital stock of such insurer or person so as to 
 3370  give the owner thereof power to exercise a controlling influence 
 3371  over the management or policies of such insurer or person. 
 3372         637.2027 Withdrawal of title insurer or discontinuance of 
 3373  writing insurance.— 
 3374         (1) Any title insurer desiring to surrender its certificate 
 3375  of authority, withdraw from this state, or discontinue the 
 3376  writing of title insurance in this state shall give 90 days’ 
 3377  notice in writing to the department setting forth its reasons 
 3378  for such action. Any insurer who does not write any premiums 
 3379  within a calendar year shall have title insurance removed from 
 3380  its certificate of authority; however, such line of insurance 
 3381  shall be restored to the insurer’s certificate upon the insurer 
 3382  demonstrating that it has available the expertise necessary and 
 3383  meets the other requirements of this chapter to write that line 
 3384  of insurance. 
 3385         (2) If the department determines, based upon its review of 
 3386  the notice and other required information, that the plan of an 
 3387  insurer withdrawing from this state makes adequate provision for 
 3388  the satisfaction of the insurer’s obligations and is not 
 3389  hazardous to policyholders or the public, the department shall 
 3390  approve the surrender of the insurer’s certificate of authority. 
 3391  The department shall, within 45 days from receipt of a complete 
 3392  notice and all required or requested additional information, 
 3393  approve, disapprove, or approve with conditions the plan 
 3394  submitted by the insurer. Failure to timely take action with 
 3395  respect to the notice shall be deemed an approval of the 
 3396  surrender of the certificate of authority. 
 3397         (3) Any insurer withdrawing from this state or 
 3398  discontinuing the writing of insurance in this state shall 
 3399  surrender its certificate of authority. 
 3400         (4) This section does not apply to insurers during the 
 3401  calendar year in which they first receive their certificate of 
 3402  authority. 
 3403         (5) This section does not apply to insurers who have 
 3404  discontinued writing in accordance with an order issued by the 
 3405  department. 
 3406         (6) Notwithstanding subsection (5), any insurer desiring to 
 3407  surrender its certificate of authority, withdraw from this 
 3408  state, or discontinue the writing of insurance in this state is 
 3409  expected to have availed itself of all reasonably available 
 3410  reinsurance. Reasonably available reinsurance shall include 
 3411  unrealized reinsurance, which is defined as reinsurance 
 3412  recoverable on known losses incurred and due under valid 
 3413  reinsurance contracts that have not been identified in the 
 3414  normal course of business and have not been reported in 
 3415  financial statements filed with the department. Within 90 days 
 3416  after surrendering its certificate of authority, withdrawing 
 3417  from this state, or discontinuing the writing of any one or 
 3418  multiple kinds or lines of insurance in this state, the insurer 
 3419  shall certify to the department that the insurer has engaged an 
 3420  independent third party to search for unrealized reinsurance, 
 3421  and that the insurer has made all relevant books and records 
 3422  available to such third party. The compensation to such third 
 3423  party may be a percentage of unrealized reinsurance identified 
 3424  and collected. 
 3425         (7) The department may adopt rules to administer this 
 3426  section. 
 3427         637.2028 Assets of title insurers; reporting requirements.— 
 3428         (1) As used in this section, the term “material acquisition 
 3429  of assets” or “material disposition of assets” means one or more 
 3430  transactions occurring during any 30-day period which are 
 3431  nonrecurring and not in the ordinary course of business and 
 3432  involve more than 5 percent of the reporting title insurer’s 
 3433  total admitted assets as reported in its most recent statutory 
 3434  statement filed with the insurance department of the insurer’s 
 3435  state of domicile. 
 3436         (2) Each domestic title insurer shall file a report with 
 3437  the department disclosing a material acquisition of assets, a 
 3438  material disposition of assets, or a material nonrenewal, 
 3439  cancellation, or revision of a ceded reinsurance agreement, 
 3440  unless the material acquisition or disposition of assets or the 
 3441  material nonrenewal, cancellation, or revision of a ceded 
 3442  reinsurance agreement has been submitted to the department for 
 3443  review, approval, or informational purposes under another 
 3444  section of this chapter or a rule adopted thereunder. A copy of 
 3445  the report and each exhibit or other attachment must be filed by 
 3446  the insurer with the National Association of Insurance 
 3447  Commissioners. The report required in this section is due within 
 3448  15 days after the end of the calendar month in which the 
 3449  transaction occurs. 
 3450         (3) An immaterial acquisition or disposition of assets need 
 3451  not be reported under this section. 
 3452         (4)(a) Acquisitions of assets which are subject to this 
 3453  section include each purchase, lease, exchange, merger, 
 3454  consolidation, succession, or other acquisition of assets. Asset 
 3455  acquisitions for the construction or development of real 
 3456  property by or for the reporting insurer and the acquisition of 
 3457  construction materials for this purpose are not subject to this 
 3458  section. 
 3459         (b) Dispositions of assets which are subject to this 
 3460  section include each sale, lease, exchange, merger, 
 3461  consolidation, mortgage, hypothecation, assignment for the 
 3462  benefit of a creditor or otherwise, abandonment, destruction, or 
 3463  other disposition of assets. 
 3464         (5)(a) The following information must be disclosed in any 
 3465  report of a material acquisition or disposition of assets: 
 3466         1. The date of the transaction. 
 3467         2. The manner of acquisition or disposition. 
 3468         3. The description of the assets involved. 
 3469         4. The nature and amount of the consideration given or 
 3470  received. 
 3471         5. The purpose of, or reason for, the transaction. 
 3472         6. The manner by which the amount of consideration was 
 3473  determined. 
 3474         7. The gain or loss recognized or realized as a result of 
 3475  the transaction. 
 3476         8. The name of the person from whom the assets were 
 3477  acquired or to whom they were disposed. 
 3478         (b) Insurers must report material acquisitions or 
 3479  dispositions on a nonconsolidated basis unless the insurer is 
 3480  part of a consolidated group of insurers which uses a pooling 
 3481  arrangement or a 100-percent reinsurance agreement that affects 
 3482  the solvency and integrity of the insurer’s reserves and the 
 3483  insurer has ceded substantially all of its direct and assumed 
 3484  business to the pool. An insurer is deemed to have ceded 
 3485  substantially all of its direct and assumed business to a pool 
 3486  if the insurer has less than $1 million in total direct and 
 3487  assumed written premiums during a calendar year which are not 
 3488  subject to a pooling arrangement and if the net income of the 
 3489  business which is not subject to the pooling arrangement 
 3490  represents less than 5 percent of the insurer’s capital and 
 3491  surplus. 
 3492         (6)(a) The following information must be disclosed in any 
 3493  report of a material nonrenewal, cancellation, or revision of a 
 3494  ceded reinsurance agreement: 
 3495         1. The effective date of the nonrenewal, cancellation, or 
 3496  revision. 
 3497         2. The description of the transaction and the 
 3498  identification of the initiator of the transaction. 
 3499         3. The purpose of, or reason for, the transaction. 
 3500         4. If applicable, the identity of each replacement 
 3501  reinsurer. 
 3502         (b) Insurers shall report the material nonrenewal, 
 3503  cancellation, or revision of a ceded reinsurance agreement on a 
 3504  nonconsolidated basis unless the insurer is part of a 
 3505  consolidated group of insurers which uses a pooling arrangement 
 3506  or a 100-percent reinsurance agreement that affects the solvency 
 3507  and integrity of the insurer’s reserves and the insurer has 
 3508  ceded substantially all of its direct and assumed business to 
 3509  the pool. An insurer is deemed to have ceded substantially all 
 3510  of its direct and assumed business to a pool if the insurer has 
 3511  less than $1 million in total direct and assumed written 
 3512  premiums during a calendar year which are not subject to a 
 3513  pooling arrangement and if the net income of the business not 
 3514  subject to the pooling arrangement represents less than 5 
 3515  percent of the insurer’s capital and surplus. 
 3516         637.2029 Participation of financial institutions in 
 3517  reinsurance and in insurance exchanges.—Subject to applicable 
 3518  laws relating to financial institutions and to any other 
 3519  applicable provision of this chapter, any financial institution 
 3520  or aggregation of such institutions may own or control, directly 
 3521  or indirectly, any title insurer which is authorized or approved 
 3522  by the department, which insurer transacts only reinsurance in 
 3523  this state and which actively engages in reinsuring risks 
 3524  located in this state. Nothing in this section shall be deemed 
 3525  to prohibit a financial institution from engaging in any 
 3526  presently authorized insurance activity. 
 3527         637.2031 Filing, license, appointment, and miscellaneous 
 3528  fees.—The department shall collect in advance, and persons so 
 3529  served shall pay to it in advance, fees, licenses, and 
 3530  miscellaneous charges as follows: 
 3531         (1) Certificate of authority of title insurer. 
 3532         (a) Filing application for original certificate of 
 3533  authority or modification thereof as a result of a merger, 
 3534  acquisition, or change of controlling interest due to a sale or 
 3535  exchange of stock, including all documents required to be filed 
 3536  therewith, filing fee..................................$1,500.00 
 3537         (b) Reinstatement fee..............................$50.00 
 3538         (2) Charter documents of insurer. 
 3539         (a) Filing articles of incorporation or other charter 
 3540  documents, other than at time of application for original 
 3541  certificate of authority, filing fee......................$10.00 
 3542         (b) Filing amendment to articles of incorporation or 
 3543  charter, other than at time of application for original 
 3544  certificate of authority, filing fee.......................$5.00 
 3545         (c) Filing bylaws, when required, or amendments thereof, 
 3546  filing fee.................................................$5.00 
 3547         (3) Annual license tax of insurer, each domestic insurer, 
 3548  foreign insurer, and alien insurer (except that, as to fraternal 
 3549  benefit societies insuring less than 200 members in this state 
 3550  and the members of which as a prerequisite to membership possess 
 3551  a physical handicap or disability, such license tax shall be 
 3552  $25)...................................................$1,000.00 
 3553         (4) Statements of insurer, filing (except when filed as 
 3554  part of application for original certificate of authority), 
 3555  filing fees: 
 3556         (a) Annual statement..............................$250.00 
 3557         (b) Quarterly statement...........................$250.00 
 3558         (5) All insurance representatives, application for license, 
 3559  each filing, filing fee...................................$50.00 
 3560         (6) Examination—Fee to cover actual cost of examination. 
 3561         (7) Temporary license and appointment as agent where 
 3562  expressly provided for, rate of fee for each month of the period 
 3563  for which the license and appointment is issued............$5.00 
 3564         (8) Issuance, reissuance, reinstatement, modification 
 3565  resulting in a modified license being issued, duplicate copy of 
 3566  any insurance representative license, or an appointment being 
 3567  reinstated.................................................$5.00 
 3568         (9) Additional appointment continuation fees as prescribed 
 3569  in chapter 626.............................................$5.00 
 3570         (10) Filing application for permit to form insurer as 
 3571  referred to in chapter 628, filing fee....................$25.00 
 3572         (11) Annual license fee of rating organization, each 
 3573  domestic or foreign organization..........................$25.00 
 3574         (12) Miscellaneous services: 
 3575         (a) For copies of documents or records on file with the 
 3576  department, per page........................................$.50 
 3577         (b) For each certificate of the department, under its seal, 
 3578  authenticating any document or other instrument (other than a 
 3579  license or certificate of authority).......................$5.00 
 3580         (c) For preparing lists of agents and other insurance 
 3581  representatives, and for other miscellaneous services, such 
 3582  reasonable charge as may be fixed by the department. 
 3583         (d) For processing requests for approval of continuing 
 3584  education courses, processing fee........................$100.00 
 3585         (13) Fingerprinting processing fee—Fee to cover fingerprint 
 3586  processing. 
 3587         (14) Title insurance agents: 
 3588         (a) Agent’s original appointment or biennial renewal or 
 3589  continuation thereof, each insurer: 
 3590         Appointment fee....................................$42.00 
 3591         State tax...........................................12.00 
 3592         County tax...........................................6.00 
 3593         Total..............................................$60.00 
 3594         (b) Agency original appointment or biennial renewal or 
 3595  continuation thereof, each insurer: 
 3596         Appointment fee....................................$42.00 
 3597         State tax...........................................12.00 
 3598         County tax...........................................6.00 
 3599         Total..............................................$60.00 
 3600         (c) Filing for title insurance agent’s license: 
 3601         Application for filing, each filing, filing fee....$10.00 
 3602         (d) Additional appointment continuation fee as prescribed 
 3603  by s. 637.3015.............................................$5.00 
 3604         (e) Title insurer and title insurance agency administrative 
 3605  surcharge: 
 3606         1. On or before January 30 of each calendar year, each 
 3607  title insurer shall pay to the department for each licensed 
 3608  title insurance agency appointed by the title insurer and for 
 3609  each retail office of the insurer on January 1 of that calendar 
 3610  year an administrative surcharge of $200.00. 
 3611         2. On or before January 30 of each calendar year, each 
 3612  licensed title insurance agency shall remit to the department an 
 3613  administrative surcharge of $200.00. 
 3614   
 3615  The administrative surcharge may be used solely to defray the 
 3616  costs to the department in their examination or audit of title 
 3617  insurance agencies and retail offices of title insurers and to 
 3618  gather title insurance data for statistical purposes to be 
 3619  furnished to and used by the department in its regulation of 
 3620  title insurance. 
 3621         (15) Late filing of appointment renewals for agents, 
 3622  adjusters, and other insurance representatives, each 
 3623  appointment...............................................$20.00 
 3624         637.2032 Advance collection of fees and taxes; title 
 3625  insurers not to pay without reimbursement.— 
 3626         (1) The department shall collect in advance from the 
 3627  applicant or licensee fees and taxes as provided in s. 637.2031. 
 3628         (2) A title insurer shall not pay directly or indirectly 
 3629  without reimbursement from a title insurance agent any 
 3630  appointment fee required under this section. The failure of a 
 3631  title insurance agent to make reimbursement is not a ground for 
 3632  cancellation of the title insurance agent’s appointment by the 
 3633  title insurer. 
 3634         637.2033 Service of process fee.—In all instances as 
 3635  provided in any section of this chapter and s. 48.151(3) in 
 3636  which service of process is authorized to be made upon the Chief 
 3637  Financial Officer , the plaintiff shall pay to the department a 
 3638  fee of $15 for such service of process, which fee shall be 
 3639  deposited into the Title Insurance Regulatory Trust Fund. 
 3640         637.2034 Liability for state, county tax.—Each authorized 
 3641  title insurer that uses insurance agents in this state shall be 
 3642  liable for and shall pay the state and county taxes required 
 3643  therefor under s. 637.2031 or s. 637.2035. 
 3644         637.2035 County tax; determination; additional offices; 
 3645  nonresident agents.— 
 3646         (1) The county tax provided for under s. 637.2031 as to an 
 3647  agent shall be paid by each title insurer for each agent only 
 3648  for the county where the agent resides, or if such agent’s place 
 3649  of business is located in a county other than that of her or his 
 3650  residence, then for the county wherein is located such place of 
 3651  business. If an agent maintains an office or place of business 
 3652  in more than one county, the tax shall be paid for her or him by 
 3653  each such insurer for each county wherein the agent represents 
 3654  such insurer and has a place of business. When under this 
 3655  subsection an insurer is required to pay county tax for an agent 
 3656  for a county or counties other than the agent’s county of 
 3657  residence, the insurer shall designate the county or counties 
 3658  for which the taxes are paid. 
 3659         (2) A county tax of $3 per year shall be paid by each 
 3660  insurer for each county in this state in which an agent who 
 3661  resides outside of this state represents and engages in person 
 3662  in the activities of an agent for the insurer. This provision 
 3663  shall not be deemed to authorize any activities by an agent 
 3664  which are otherwise prohibited under this chapter. 
 3665         637.2036 County tax; deposit and remittance.— 
 3666         (1) The department shall deposit in the Agents County Tax 
 3667  Trust Fund all moneys accepted as county tax under this chapter. 
 3668  She or he shall keep a separate account for all moneys so 
 3669  collected for each county and, after deducting therefrom the 
 3670  service charges provided for in s. 215.20, shall remit the 
 3671  balance to the counties. 
 3672         (2) The payment and collection of county tax under this 
 3673  chapter shall be in lieu of collection thereof by the respective 
 3674  county tax collectors. 
 3675         (3) The Chief Financial Officer shall annually, as of 
 3676  January 1 following the date of collection, and thereafter at 
 3677  such other times as she or he may elect, draw her or his 
 3678  warrants on the State Treasury payable to the respective 
 3679  counties entitled to receive the same for the full net amount of 
 3680  such taxes to each county. 
 3681         637.2037 Municipal tax.—Municipal corporations may require 
 3682  a tax of title insurance agents not to exceed 50 percent of the 
 3683  state tax specified as to such agents under this chapter, and 
 3684  unless otherwise authorized by law. Such a tax may be required 
 3685  only by a municipal corporation within the boundaries of which 
 3686  is located the agent’s business office, or if no such office is 
 3687  required under this chapter, by the municipal corporation of the 
 3688  agent’s place of residence. 
 3689         637.2038 Insurer’s license tax; when payable.— 
 3690         (1) The title insurer’s license tax provided for in s. 
 3691  637.2031(3) shall be paid by an insurer newly applying for a 
 3692  certificate of authority to transact insurance in this state 
 3693  prior to and contingent upon the issuance of its original 
 3694  certificate of authority. If the certificate of authority is not 
 3695  issued, the license tax payment shall be refunded to the 
 3696  insurer. The license tax so paid by a newly authorized insurer 
 3697  shall cover the period expiring on the June 1 following the date 
 3698  of its original certificate of authority. 
 3699         (2) Each authorized title insurer shall pay the license tax 
 3700  annually on or before June 1. 
 3701         637.2039 Premium tax; rate and computation.— 
 3702         (1) In addition to the license taxes provided for in this 
 3703  chapter, each title insurer shall also annually, and on or 
 3704  before March 1 in each year, pay to the Department of Revenue a 
 3705  tax on premiums for title insurance received during the 
 3706  preceding calendar year an amount equal to 1.75 percent of the 
 3707  gross amount of such receipts on account of all policies and 
 3708  covering property, subjects, or risks located, resident, or to 
 3709  be performed in this state, omitting premiums on reinsurance 
 3710  accepted, and less return premiums or assessments, but without 
 3711  deductions: 
 3712         (a) For reinsurance ceded to other insurers; 
 3713         (b) For moneys paid upon surrender of policies or 
 3714  certificates for cash surrender value. 
 3715         (2) Payment by the insurer of the license taxes and premium 
 3716  receipts taxes provided for in this chapter is a condition 
 3717  precedent to doing business within this state. 
 3718         (3) Notwithstanding other provisions of law, the 
 3719  distribution of the premium tax and any penalties or interest 
 3720  collected thereunder shall be made to the General Revenue Fund 
 3721  in accordance with rules adopted by the Department of Revenue 
 3722  and approved by the Administration Commission. 
 3723         (4) The income tax imposed under chapter 220 and the 
 3724  emergency excise tax imposed under chapter 221 which are paid by 
 3725  any insurer shall be credited against, and to the extent thereof 
 3726  shall discharge, the liability for tax imposed by this section 
 3727  for the annual period in which such tax payments are made. For 
 3728  purposes of this subsection, payments of estimated income tax 
 3729  under chapter 220 and of estimated emergency excise tax under 
 3730  chapter 221 shall be deemed paid at the time the insurer 
 3731  actually files its annual returns under chapter 220 or at the 
 3732  time such returns are required to be filed, whichever first 
 3733  occurs, and not at such earlier time as such payments of 
 3734  estimated tax are actually made. 
 3735         (5)(a)1. There shall be allowed a credit against the net 
 3736  tax imposed by this section equal to 15 percent of the amount 
 3737  paid by an insurer in salaries to employees located or based 
 3738  within this state and who are covered by the provisions of 
 3739  chapter 443. 
 3740         2. As an alternative to the credit allowed in subparagraph 
 3741  1., an affiliated group of corporations which includes at least 
 3742  one insurance company writing premiums in this state may elect 
 3743  to take a credit against the net tax imposed by this section in 
 3744  an amount that may not exceed 15 percent of the salary of the 
 3745  employees of the affiliated group of corporations who perform 
 3746  insurance-related activities, are located or based within this 
 3747  state, and are covered by chapter 443. For purposes of this 
 3748  subparagraph, the term “affiliated group of corporations” means 
 3749  two or more corporations that are entirely owned directly or 
 3750  indirectly by a single corporation and that constitute an 
 3751  affiliated group as defined in s. 1504(a) of the Internal 
 3752  Revenue Code. The amount of credit allowed under this 
 3753  subparagraph is limited to the combined Florida salary tax 
 3754  credits allowed for all insurance companies that were members of 
 3755  the affiliated group of corporations for the tax year ending 
 3756  December 31, 2002, divided by the combined Florida taxable 
 3757  premiums written by all insurance companies that were members of 
 3758  the affiliated group of corporations for the tax year ending 
 3759  December 31, 2002, multiplied by the combined Florida taxable 
 3760  premiums of the affiliated group of corporations for the current 
 3761  year. An affiliated group of corporations electing this 
 3762  alternative calculation method must make such election on or 
 3763  before August 1, 2005. The election of this alternative 
 3764  calculation method is irrevocable and binding upon successors 
 3765  and assigns of the affiliated group of corporations electing 
 3766  this alternative. However, if a member of an affiliated group of 
 3767  corporations acquires or merges with another insurance company 
 3768  after the date of the irrevocable election, the acquired or 
 3769  merged company is not entitled to the affiliated group election 
 3770  and shall only be entitled to calculate the tax credit under 
 3771  subparagraph 1. 
 3772   
 3773  In no event shall the salary paid to an employee by an 
 3774  affiliated group of corporations be claimed as a credit by more 
 3775  than one insurer or be counted more than once in an insurer’s 
 3776  calculation of the credit as described in subparagraph 1. or 
 3777  subparagraph 2. Only the portion of an employee’s salary paid 
 3778  for the performance of insurance-related activities may be 
 3779  included in the calculation of the premium tax credit in this 
 3780  subsection. 
 3781         (b) For purposes of this subsection: 
 3782         1. The term “salaries” does not include amounts paid as 
 3783  commissions. 
 3784         2. The term “employees” does not include independent 
 3785  contractors or any person whose duties require that the person 
 3786  hold a valid license under the Florida Insurance Code, except 
 3787  adjusters, managing general agents, and service representatives, 
 3788  as defined in s. 626.015. 
 3789         3. The term “net tax” means the tax imposed by this section 
 3790  after applying the calculations and credits set forth in 
 3791  subsection (4). 
 3792         4. An affiliated group of corporations that created a 
 3793  service company within its affiliated group on July 30, 2002, 
 3794  shall allocate the salary of each service company employee 
 3795  covered by contracts with affiliated group members to the 
 3796  companies for which the employees perform services. The salary 
 3797  allocation is based on the amount of time during the tax year 
 3798  that the individual employee spends performing services or 
 3799  otherwise working for each company over the total amount of time 
 3800  the employee spends performing services or otherwise working for 
 3801  all companies. The total amount of salary allocated to an 
 3802  insurance company within the affiliated group shall be included 
 3803  as that insurer’s employee salaries for purposes of this 
 3804  section. 
 3805         a. Except as provided in subparagraph (a)2., the term 
 3806  “affiliated group of corporations” means two or more 
 3807  corporations that are entirely owned by a single corporation and 
 3808  that constitute an affiliated group of corporations as defined 
 3809  in s. 1504(a) of the Internal Revenue Code. 
 3810         b. The term “service company” means a separate corporation 
 3811  within the affiliated group of corporations whose employees 
 3812  provide services to affiliated group members and which are 
 3813  treated as service company employees for unemployment 
 3814  compensation and common law purposes. The holding company of an 
 3815  affiliated group may not qualify as a service company. An 
 3816  insurance company may not qualify as a service company. 
 3817         c. If an insurance company fails to substantiate, whether 
 3818  by means of adequate records or otherwise, its eligibility to 
 3819  claim the service company exception under this section, or its 
 3820  salary allocation under this section, no credit shall be 
 3821  allowed. 
 3822         5. A service company that is a subsidiary of a mutual 
 3823  insurance holding company, which mutual insurance holding 
 3824  company was in existence on or before January 1, 2000, shall 
 3825  allocate the salary of each service company employee covered by 
 3826  contracts with members of the mutual insurance holding company 
 3827  system to the companies for which the employees perform 
 3828  services. The salary allocation is based on the ratio of the 
 3829  amount of time during the tax year which the individual employee 
 3830  spends performing services or otherwise working for each company 
 3831  to the total amount of time the employee spends performing 
 3832  services or otherwise working for all companies. The total 
 3833  amount of salary allocated to an insurance company within the 
 3834  mutual insurance holding company system shall be included as 
 3835  that insurer’s employee salaries for purposes of this section. 
 3836  However, this subparagraph does not apply for any tax year 
 3837  unless funds sufficient to offset the anticipated salary credits 
 3838  have been appropriated to the General Revenue Fund prior to the 
 3839  due date of the final return for that year. 
 3840         a. The term “mutual insurance holding company system” means 
 3841  two or more corporations that are subsidiaries of a mutual 
 3842  insurance holding company and in compliance with part IV of 
 3843  chapter 628. 
 3844         b. The term “service company” means a separate corporation 
 3845  within the mutual insurance holding company system whose 
 3846  employees provide services to other members of the mutual 
 3847  insurance holding company system and are treated as service 
 3848  company employees for unemployment compensation and common-law 
 3849  purposes. The mutual insurance holding company may not qualify 
 3850  as a service company. 
 3851         c. If an insurance company fails to substantiate, whether 
 3852  by means of adequate records or otherwise, its eligibility to 
 3853  claim the service company exception under this section, or its 
 3854  salary allocation under this section, no credit shall be 
 3855  allowed. 
 3856         (c) The department may adopt rules pursuant to ss. 
 3857  120.536(1) and 120.54 to administer this subsection. 
 3858         (6)(a) The total of the credit granted for the taxes paid 
 3859  by the insurer under chapters 220 and 221 and the credit granted 
 3860  by subsection (5) shall not exceed 65 percent of the tax due 
 3861  under subsection (1) after deducting therefrom the taxes paid by 
 3862  the insurer under ss. 175.101 and 185.08 and any assessments 
 3863  pursuant to s. 440.51. 
 3864         (b) To the extent that any credits granted by subsection 
 3865  (5) remain as a result of the limitation set forth in paragraph 
 3866  (a), such excess credits related to salaries and wages of 
 3867  employees whose place of employment is located within an 
 3868  enterprise zone created pursuant to chapter 290 may be 
 3869  transferred, in an aggregate amount not to exceed 25 percent of 
 3870  such excess salary credits, to any insurer that is a member of 
 3871  an affiliated group of corporations, as defined in sub 
 3872  subparagraph (5)(b)4.a., that includes the original insurer 
 3873  qualifying for the credits under subsection (5). The amount of 
 3874  such excess credits to be transferred shall be calculated by 
 3875  multiplying the amount of such excess credits by a fraction, the 
 3876  numerator of which is the sum of the salaries qualifying for the 
 3877  credit allowed by subsection (5) of employees whose place of 
 3878  employment is located in an enterprise zone and the denominator 
 3879  of which is the sum of the salaries qualifying for the credit 
 3880  allowed by subsection (5). Any such transferred credits shall be 
 3881  subject to the same provisions and limitations set forth within 
 3882  this chapter. The provisions of this paragraph do not apply to 
 3883  an affiliated group of corporations that participate in a common 
 3884  paymaster arrangement as defined in s. 443.1216. 
 3885         (7) Credits and deductions against the tax imposed by this 
 3886  section shall be taken in the following order: deductions for 
 3887  assessments made pursuant to s. 440.51; credits for taxes paid 
 3888  under ss. 175.101 and 185.08; credits for income taxes paid 
 3889  under chapter 220, the emergency excise tax paid under chapter 
 3890  221 and the credit allowed under subsection (5), as these 
 3891  credits are limited by subsection (6); all other available 
 3892  credits and deductions. 
 3893         (8) As used in this section, “insurer” includes any entity 
 3894  subject to the tax imposed by this section. 
 3895         637.2041 Retaliatory provision, insurers.— 
 3896         (1)(a) When by or pursuant to the laws of any other state 
 3897  or foreign country any taxes, licenses, and other fees, in the 
 3898  aggregate, and any fines, penalties, deposit requirements, or 
 3899  other material obligations, prohibitions, or restrictions are or 
 3900  would be imposed upon title insurers in this state or upon the 
 3901  agents or representatives of such insurers, which are in excess 
 3902  of such taxes, licenses, and other fees, in the aggregate, or 
 3903  which are in excess of the fines, penalties, deposit 
 3904  requirements, or other obligations, prohibitions, or 
 3905  restrictions directly imposed upon similar insurers, or upon the 
 3906  agents or representatives of such insurers, of such other state 
 3907  or country under the statutes of this state, so long as such 
 3908  laws of such other state or country continue in force or are so 
 3909  applied, the same taxes, licenses, and other fees, in the 
 3910  aggregate, or fines, penalties, deposit requirements, or other 
 3911  material obligations, prohibitions, or restrictions of whatever 
 3912  kind shall be imposed by the Department of Revenue upon the 
 3913  insurers, or upon the agents or representatives of such 
 3914  insurers, of such other state or country doing business or 
 3915  seeking to do business in this state. In determining the taxes 
 3916  to be imposed under this section, 80 percent and a portion of 
 3917  the remaining 20 percent as provided in paragraph (b) of the 
 3918  credit provided by s. 637.2039(5), as limited by s. 637.2039(6) 
 3919  and further determined by s. 637.2039(7), shall not be taken 
 3920  into consideration. 
 3921         (b) As used in this subsection, the term “portion of the 
 3922  remaining 20 percent” shall be calculated by multiplying the 
 3923  remaining 20 percent by a fraction, the numerator of which is 
 3924  the sum of the salaries qualifying for the credit allowed by s. 
 3925  637.2039(5) of employees whose place of employment is located in 
 3926  an enterprise zone created pursuant to chapter 290 and the 
 3927  denominator of which is the sum of the salaries qualifying for 
 3928  the credit allowed by s. 637.2039(5). 
 3929         (2) Any tax, license, or other obligation imposed by any 
 3930  city, county, or other political subdivision or agency of a 
 3931  state, jurisdiction, or foreign country on Florida title 
 3932  insurers or their agents or representatives shall be deemed to 
 3933  be imposed by such state, jurisdiction, or foreign country 
 3934  within the meaning of subsection (1). 
 3935         (3) This section does not apply as to personal income 
 3936  taxes, nor as to sales or use taxes, nor as to ad valorem taxes 
 3937  on real or personal property, nor as to reimbursement premiums 
 3938  paid to the Florida Hurricane Catastrophe Fund, nor as to 
 3939  emergency assessments paid to the Florida Hurricane Catastrophe 
 3940  Fund, nor as to special purpose obligations or assessments 
 3941  imposed in connection with particular kinds of insurance other 
 3942  than property insurance, except that deductions, from premium 
 3943  taxes or other taxes otherwise payable, allowed on account of 
 3944  real estate or personal property taxes paid shall be taken into 
 3945  consideration by the department in determining the propriety and 
 3946  extent of retaliatory action under this section. 
 3947         (4) For the purposes of this section, a “similar insurer” 
 3948  is an insurer with identical premiums, personnel, and property 
 3949  to that of the alien or foreign insurer’s Florida premiums, 
 3950  personnel, and property. The similar insurer’s premiums, 
 3951  personnel, and property shall be used to calculate any taxes, 
 3952  licenses, other fees, in the aggregate, or any fines, penalties, 
 3953  deposit requirements, or other material obligations, 
 3954  prohibitions, or restrictions that are or would be imposed under 
 3955  the laws of this state and under the law of the foreign or alien 
 3956  insurer’s state of domicile. 
 3957         (5) The excess amount of all fees, licenses, and taxes 
 3958  collected by the Department of Revenue under this section over 
 3959  the amount of similar fees, licenses, and taxes provided for in 
 3960  this part, together with all fines, penalties, or other monetary 
 3961  obligations collected under this section exclusive of such fees, 
 3962  licenses, and taxes, shall be deposited by the Department of 
 3963  Revenue to the credit of the Title Insurance Regulatory Trust 
 3964  Fund; provided that such excess amount shall not exceed $125,000 
 3965  for 1992, and for any subsequent year shall not exceed $125,000 
 3966  adjusted annually by the lesser of 20 percent or the growth in 
 3967  the total of such excess amount. The remainder of such excess 
 3968  amount shall be deposited into the General Revenue Fund. 
 3969         637.2042 Administration of taxes; payments.— 
 3970         (1) The Department of Revenue shall administer, audit, and 
 3971  enforce the assessment and collection of those taxes to which 
 3972  this section is applicable. The department and division may 
 3973  share information with the Department of Revenue as necessary to 
 3974  verify premium tax or other tax liability arising under such 
 3975  taxes and credits which may apply thereto. 
 3976         (2)(a) Installments of the taxes to which this section is 
 3977  applicable shall be due and payable on April 15, June 15, and 
 3978  October 15 in each year, based upon the estimated gross amount 
 3979  of receipts of insurance premiums or assessments received during 
 3980  the immediately preceding calendar quarter. A final payment of 
 3981  tax due for the year shall be made at the time the taxpayer 
 3982  files her or his return for such year. On or before March 1 in 
 3983  each year, an annual return shall be filed showing, by quarters, 
 3984  the gross amount of receipts taxable for the preceding year and 
 3985  the installment payments made during that year. 
 3986         (b) Any taxpayer who fails to report and timely pay any 
 3987  installment of tax, who estimates any installment of tax to be 
 3988  less than 90 percent of the amount finally shown to be due in 
 3989  any quarter, or who fails to report and timely pay any tax due 
 3990  with the final return is in violation of this section and is 
 3991  subject to a penalty of 10 percent on any underpayment of taxes 
 3992  or delinquent taxes due and payable for that quarter or on any 
 3993  delinquent taxes due and payable with the final return. Any 
 3994  taxpayer paying, for each installment required in this section, 
 3995  27 percent of the amount of the net tax due as reported on her 
 3996  or his return for the preceding year shall not be subject to the 
 3997  penalty provided by this section for underpayment of estimated 
 3998  taxes. 
 3999         (c) When any taxpayer fails to pay any amount due under 
 4000  this section, or any portion thereof, on or before the day when 
 4001  such tax or installment of tax is required by law to be paid, 
 4002  there shall be added to the amount due interest at the rate of 
 4003  12 percent per year from the date due until paid. 
 4004         (d) All penalties and interest imposed on those taxes to 
 4005  which this section is applicable shall be payable to and 
 4006  collectible by the Department of Revenue in the same manner as 
 4007  if they were a part of the tax imposed. 
 4008         (e) The Department of Revenue may settle or compromise any 
 4009  such interest or penalties imposed on those taxes to which this 
 4010  section is applicable pursuant to s. 213.21. 
 4011         (3) This section is applicable to taxes imposed by ss. 
 4012  629.5100, 637.2039, and 637.2046. 
 4013         637.2043 Adjustments.— 
 4014         (1) If a taxpayer is required to amend its corporate income 
 4015  tax liability under chapter 220, or the taxpayer receives a 
 4016  refund of its workers’ compensation administrative assessment 
 4017  paid under chapter 440, the taxpayer shall file an amended 
 4018  insurance premium tax return not later than 60 days after such 
 4019  an occurrence. 
 4020         (2) If an amended insurance premium tax return is required 
 4021  under subsection (1), notwithstanding any other provision of s. 
 4022  95.091(3): 
 4023         (a) A notice of deficiency may be issued at any time within 
 4024  3 years after the date the amended insurance premium tax return 
 4025  is given; or 
 4026         (b) If a taxpayer fails to file an amended insurance 
 4027  premium tax return, a notice of deficiency may be issued at any 
 4028  time. 
 4029   
 4030  The amount of any proposed assessment set forth in such a notice 
 4031  of deficiency shall be limited to the amount of any deficiency 
 4032  resulting under this chapter from recomputation of the 
 4033  taxpayer’s insurance premium tax and retaliatory tax for the 
 4034  taxable year after giving effect only to the change in corporate 
 4035  income tax paid and the change in the amount of the workers’ 
 4036  compensation administrative assessment paid. Interest in 
 4037  accordance with s. 637.2042 is due on the amount of any 
 4038  deficiency from the date fixed for filing the original insurance 
 4039  premium tax return for the taxable year until the date of 
 4040  payment of the deficiency. 
 4041         (3) If an amended insurance premium tax return is required 
 4042  by subsection (1), a claim for refund may be filed within 2 
 4043  years after the date on which the amended insurance premium tax 
 4044  return was due, regardless of whether such notice was given, 
 4045  notwithstanding any other provision of s. 215.26. However, the 
 4046  amount recoverable pursuant to such a claim shall be limited to 
 4047  the amount of any overpayment resulting under this chapter from 
 4048  recomputation of the taxpayer’s insurance premium tax and 
 4049  retaliatory tax for the taxable year after giving effect only to 
 4050  the change in corporate income tax paid and the change in the 
 4051  amount of the workers’ compensation administrative assessment 
 4052  paid. 
 4053         637.2046 Tax statement; overpayments.— 
 4054         (1) Tax returns as to taxes mentioned in s. 637.2039 shall 
 4055  be made by insurers on forms to be prescribed by the Department 
 4056  of Revenue and shall be sworn to by one or more of the executive 
 4057  officers or attorney, if a reciprocal insurer, of the insurer 
 4058  making the returns. 
 4059         (2) Notwithstanding the provisions of s. 215.26(1), if any 
 4060  insurer makes an overpayment on account of taxes due under s. 
 4061  637.2039, a refund of the overpayment of taxes shall be made out 
 4062  of the General Revenue Fund. Overpayment of taxes due under s. 
 4063  637.2039 shall be refunded no sooner than the first day of the 
 4064  state fiscal year following the date the tax was due. 
 4065         (3)(a) If it appears, upon examination of an insurance 
 4066  premium tax return made under this chapter, that an amount of 
 4067  insurance premium tax has been paid in excess of the amount due, 
 4068  the Department of Revenue may refund the amount of the 
 4069  overpayment to the taxpayer by a warrant of the Chief Financial 
 4070  Officer. The Department of Revenue may refund the overpayment 
 4071  without regard to whether the taxpayer has filed a written claim 
 4072  for a refund; however, the Department of Revenue may request 
 4073  that the taxpayer file a statement affirming that the taxpayer 
 4074  made the overpayment. 
 4075         (b) Notwithstanding paragraph (a), a refund of the 
 4076  insurance premium tax may not be made, and a taxpayer is not 
 4077  entitled to bring an action for a refund of the insurance 
 4078  premium tax, after the period specified in s. 215.26(2) has 
 4079  elapsed. 
 4080         (c) If a refund issued by the Department of Revenue under 
 4081  this subsection is found to exceed the amount of refund legally 
 4082  due to the taxpayer, the provisions of s. 637.2042 concerning 
 4083  penalties and interest do not apply if the taxpayer reimburses 
 4084  the department for any overpayment within 60 days after the 
 4085  taxpayer is notified that the overpayment was made. 
 4086         637.2047 Preemption by state.— 
 4087         (1) This state hereby preempts the field of imposing 
 4088  excise, privilege, franchise, income, license, permit, 
 4089  registration, and similar taxes and fees, measured by premiums, 
 4090  income, or volume of transactions, upon insurers and their 
 4091  agents and other representatives; and a county, city, 
 4092  municipality, district, school district, or other political 
 4093  subdivision or agency in this state may not impose, levy, 
 4094  charge, or require the same, subject however to the provisions 
 4095  of subsection (2). 
 4096         (2) This section shall not be construed to limit or modify 
 4097  the power of any incorporated city or town to levy the taxes 
 4098  authorized by ss. 175.101 and 185.08 or the power of any special 
 4099  fire control district to levy the taxes authorized by s. 
 4100  175.101. 
 4101         637.2048 Deposit of certain tax receipts; refund of 
 4102  improper payments.— 
 4103         (1) The Department of Financial Services shall promptly 
 4104  deposit in the State Treasury to the credit of the Title 
 4105  Insurance Regulatory Trust Fund all “state tax” portions of 
 4106  agents’ licenses collected under s. 637.2031. All moneys 
 4107  received by the Department of Financial Services or the 
 4108  department not in accordance with the provisions of this chapter 
 4109  or not in the exact amount as specified by the applicable 
 4110  provisions of this chapter shall be returned to the remitter. 
 4111  The records of the department shall show the date and reason for 
 4112  such return. 
 4113         (2) The Department of Revenue shall promptly deposit into 
 4114  the Department of Revenue Premium Tax Clearing Trust Fund all 
 4115  premium taxes collected according to s. 637.2039. Such taxes 
 4116  shall be distributed on an estimated basis within 15 days after 
 4117  receipt by the Department of Revenue. Such distribution shall be 
 4118  adjusted pursuant to an audit by the Department of Revenue. 
 4119         Section 9. Section 627.778, Florida Statutes, is 
 4120  transferred, renumbered as section 637.20485, Florida Statutes, 
 4121  and subsection (2) of that section is amended to read: 
 4122         637.20485 627.778 Limit of risk.— 
 4123         (2) Surplus as to policyholders shall be determined from 
 4124  the last annual statement of the insurer filed under s. 637.2024 
 4125  624.424. 
 4126         Section 10. Sections 637.2049, 637.2051, 637.2053, 
 4127  637.2054, 637.2055, 637.2056, and 637.2057, Florida Statutes, 
 4128  are created to read: 
 4129         637.2049 Reinsurance.— 
 4130         (1) The purpose of this section is to protect the interests 
 4131  of insureds, claimants, ceding insurers, assuming insurers, and 
 4132  the public. It is the intent of the Legislature to ensure 
 4133  adequate regulation of insurers and reinsurers and adequate 
 4134  protection for those to whom they owe obligations. In 
 4135  furtherance of that state interest, the Legislature requires 
 4136  that upon the insolvency of a non-United States insurer or 
 4137  reinsurer which provides security to fund its United States 
 4138  obligations in accordance with this section, such security shall 
 4139  be maintained in the United States and claims shall be filed 
 4140  with and valued by the state insurance regulator with regulatory 
 4141  oversight, and the assets shall be distributed in accordance 
 4142  with the insurance laws of the state in which the trust is 
 4143  domiciled that are applicable to the liquidation of domestic 
 4144  United States insurance companies. The Legislature declares that 
 4145  the matters contained in this section are fundamental to the 
 4146  business of insurance in accordance with 15 U.S.C. ss. 1011 
 4147  1012. 
 4148         (2) Credit for reinsurance must be allowed a ceding insurer 
 4149  as either an asset or a deduction from liability on account of 
 4150  reinsurance ceded only when the reinsurer meets the requirements 
 4151  of paragraph (3)(a), paragraph (3)(b), or paragraph (3)(c). 
 4152  Credit must be allowed under paragraph (3)(a) or paragraph 
 4153  (3)(b) only for cessions of those kinds or lines of business 
 4154  that the assuming insurer is licensed, authorized, or otherwise 
 4155  permitted to write or assume in its state of domicile or, in the 
 4156  case of a United States branch of an alien assuming insurer, in 
 4157  the state through which it is entered and licensed or authorized 
 4158  to transact insurance or reinsurance. 
 4159         (3)(a) Credit must be allowed when the reinsurance is ceded 
 4160  to an assuming insurer that is authorized to transact insurance 
 4161  or reinsurance in this state. 
 4162         (b)1. Credit must be allowed when the reinsurance is ceded 
 4163  to an assuming insurer that is accredited as a reinsurer in this 
 4164  state. An accredited reinsurer is one that: 
 4165         a. Files with the department evidence of its submission to 
 4166  this state’s jurisdiction. 
 4167         b. Submits to this state’s authority to examine its books 
 4168  and records. 
 4169         c. Is licensed or authorized to transact insurance or 
 4170  reinsurance in at least one state or, in the case of a United 
 4171  States branch of an alien assuming insurer, is entered through, 
 4172  licensed, or authorized to transact insurance or reinsurance in 
 4173  at least one state. 
 4174         d. Files annually with the department a copy of its annual 
 4175  statement filed with the insurance department of its state of 
 4176  domicile any quarterly statements if required by its state of 
 4177  domicile or such quarterly statements if specifically requested 
 4178  by the department, and a copy of its most recent audited 
 4179  financial statement. 
 4180         (I) Maintains a surplus as regards policyholders in an 
 4181  amount not less than $20 million and whose accreditation has not 
 4182  been denied by the department within 90 days after its 
 4183  submission; or 
 4184         (II) Maintains a surplus as regards policyholders in an 
 4185  amount not less than $20 million and whose accreditation has 
 4186  been approved by the department. 
 4187         2. The department may deny or revoke an assuming insurer’s 
 4188  accreditation if the assuming insurer does not submit the 
 4189  required documentation pursuant to subparagraph 1., if the 
 4190  assuming insurer fails to meet all of the standards required of 
 4191  an accredited reinsurer, or if the assuming insurer’s 
 4192  accreditation would be hazardous to the policyholders of this 
 4193  state. In determining whether to deny or revoke accreditation, 
 4194  the department may consider the qualifications of the assuming 
 4195  insurer with respect to all the following subjects: 
 4196         a. Its financial stability. 
 4197         b. The lawfulness and quality of its investments. 
 4198         c. The competency, character, and integrity of its 
 4199  management. 
 4200         d. The competency, character, and integrity of persons who 
 4201  own or have a controlling interest in the assuming insurer. 
 4202         e. Whether claims under its contracts are promptly and 
 4203  fairly adjusted and are promptly and fairly paid in accordance 
 4204  with the law and the terms of the contracts. 
 4205         3. Credit must not be allowed a ceding insurer if the 
 4206  assuming insurer’s accreditation has been revoked by the 
 4207  department after notice and the opportunity for a hearing. 
 4208         4. The actual costs and expenses incurred by the department 
 4209  to review a reinsurer’s request for accreditation and subsequent 
 4210  reviews must be charged to and collected from the requesting 
 4211  reinsurer. If the reinsurer fails to pay the actual costs and 
 4212  expenses promptly when due, the department may refuse to 
 4213  accredit the reinsurer or may revoke the reinsurer’s 
 4214  accreditation. 
 4215         (c)1. Credit must be allowed when the reinsurance is ceded 
 4216  to an assuming insurer that maintains a trust fund in a 
 4217  qualified United States financial institution, as defined in 
 4218  paragraph (5)(b), for the payment of the valid claims of its 
 4219  United States ceding insurers and their assigns and successors 
 4220  in interest. To enable the department to determine the 
 4221  sufficiency of the trust fund, the assuming insurer shall report 
 4222  annually to the department information substantially the same as 
 4223  that required to be reported on the NAIC Annual Statement form 
 4224  by authorized insurers. The assuming insurer shall submit to 
 4225  examination of its books and records by the department and bear 
 4226  the expense of examination. 
 4227         2.a. Credit for reinsurance must not be granted under this 
 4228  subsection unless the form of the trust and any amendments to 
 4229  the trust have been approved by: 
 4230         (I) The insurance regulator of the state in which the trust 
 4231  is domiciled; or 
 4232         (II) The insurance regulator of another state who, pursuant 
 4233  to the terms of the trust instrument, has accepted principal 
 4234  regulatory oversight of the trust. 
 4235         b. The form of the trust and any trust amendments must be 
 4236  filed with the insurance regulator of every state in which the 
 4237  ceding insurer beneficiaries of the trust are domiciled. The 
 4238  trust instrument must provide that contested claims are valid 
 4239  and enforceable upon the final order of any court of competent 
 4240  jurisdiction in the United States. The trust must vest legal 
 4241  title to its assets in its trustees for the benefit of the 
 4242  assuming insurer’s United States ceding insurers and their 
 4243  assigns and successors in interest. The trust and the assuming 
 4244  insurer are subject to examination as determined by the 
 4245  insurance regulator. 
 4246         c. The trust remains in effect for as long as the assuming 
 4247  insurer has outstanding obligations due under the reinsurance 
 4248  agreements subject to the trust. No later than February 28 of 
 4249  each year, the trustee of the trust shall report to the 
 4250  insurance regulator in writing the balance of the trust and list 
 4251  the trust’s investments at the preceding year end, and shall 
 4252  certify that the trust will not expire prior to the following 
 4253  December 31. 
 4254         3. The following requirements apply to the following 
 4255  categories of assuming insurer: 
 4256         a. The trust fund for a single assuming insurer consists of 
 4257  funds in trust in an amount not less than the assuming insurer’s 
 4258  liabilities attributable to reinsurance ceded by United States 
 4259  ceding insurers, and, in addition, the assuming insurer shall 
 4260  maintain a trusteed surplus of not less than $20 million. Not 
 4261  less than 50 percent of the funds in the trust covering the 
 4262  assuming insurer’s liabilities attributable to reinsurance ceded 
 4263  by United States ceding insurers and trusteed surplus shall 
 4264  consist of assets of a quality substantially similar to that 
 4265  required in part II of chapter 625. Clean, irrevocable, 
 4266  unconditional, and evergreen letters of credit, issued or 
 4267  confirmed by a qualified United States financial institution, as 
 4268  defined in paragraph (5)(a), effective no later than December 31 
 4269  of the year for which the filing is made and in the possession 
 4270  of the trust on or before the filing date of its annual 
 4271  statement, may be used to fund the remainder of the trust and 
 4272  trusteed surplus. 
 4273         b.(I) In the case of a group including incorporated and 
 4274  individual unincorporated underwriters: 
 4275         (A) For reinsurance ceded under reinsurance agreements with 
 4276  an inception, amendment, or renewal date on or after August 1, 
 4277  1995, the trust consists of a trusteed account in an amount not 
 4278  less than the group’s several liabilities attributable to 
 4279  business ceded by United States domiciled ceding insurers to any 
 4280  member of the group. 
 4281         (B) For reinsurance ceded under reinsurance agreements with 
 4282  an inception date on or before July 31, 1995, and not amended or 
 4283  renewed after that date, notwithstanding the other provisions of 
 4284  this section, the trust consists of a trusteed account in an 
 4285  amount not less than the group’s several insurance and 
 4286  reinsurance liabilities attributable to business written in the 
 4287  United States. 
 4288         (C) In addition to these trusts, the group shall maintain 
 4289  in trust a trusteed surplus of which $100 million must be held 
 4290  jointly for the benefit of the United States domiciled ceding 
 4291  insurers of any member of the group for all years of account. 
 4292         (II) The incorporated members of the group must not be 
 4293  engaged in any business other than underwriting of a member of 
 4294  the group, and are subject to the same level of regulation and 
 4295  solvency control by the group’s domiciliary regulator as the 
 4296  unincorporated members. 
 4297         (III) Within 90 days after its financial statements are due 
 4298  to be filed with the group’s domiciliary regulator, the group 
 4299  shall provide to the insurance regulator an annual certification 
 4300  by the group’s domiciliary regulator of the solvency of each 
 4301  underwriter member or, if a certification is unavailable, 
 4302  financial statements, prepared by independent public 
 4303  accountants, of each underwriter member of the group. 
 4304         (d) Credit must be allowed when the reinsurance is ceded to 
 4305  an assuming insurer not meeting the requirements of paragraph 
 4306  (a), paragraph (b), or paragraph (c), but only as to the 
 4307  insurance of risks located in jurisdictions in which the 
 4308  reinsurance is required to be purchased by a particular entity 
 4309  by applicable law or regulation of that jurisdiction. 
 4310         (e) If the reinsurance is ceded to an assuming insurer not 
 4311  meeting the requirements of paragraph (a), paragraph (b), 
 4312  paragraph (c), or paragraph (d), the department may allow 
 4313  credit, but only if the assuming insurer holds surplus in excess 
 4314  of $100 million and has a secure financial strength rating from 
 4315  at least two nationally recognized statistical rating 
 4316  organizations deemed acceptable by the department. In 
 4317  determining whether credit should be allowed, the department 
 4318  shall consider the following: 
 4319         1. The domiciliary regulatory jurisdiction of the assuming 
 4320  insurer. 
 4321         2. The structure and authority of the domiciliary regulator 
 4322  with regard to solvency regulation requirements and the 
 4323  financial surveillance of the reinsurer. 
 4324         3. The substance of financial and operating standards for 
 4325  reinsurers in the domiciliary jurisdiction. 
 4326         4. The form and substance of financial reports required to 
 4327  be filed by the reinsurers in the domiciliary jurisdiction or 
 4328  other public financial statements filed in accordance with 
 4329  generally accepted accounting principles. 
 4330         5. The domiciliary regulator’s willingness to cooperate 
 4331  with United States regulators in general and the department in 
 4332  particular. 
 4333         6. The history of performance by reinsurers in the 
 4334  domiciliary jurisdiction. 
 4335         7. Any documented evidence of substantial problems with the 
 4336  enforcement of valid United States judgments in the domiciliary 
 4337  jurisdiction. 
 4338         8. Any other matters deemed relevant by the department. The 
 4339  department shall give appropriate consideration to insurer group 
 4340  ratings that may have been issued. The department may, in lieu 
 4341  of granting full credit under this subsection, reduce the amount 
 4342  required to be held in trust under paragraph (c). 
 4343         (f) If the assuming insurer is not authorized or accredited 
 4344  to transact insurance or reinsurance in this state pursuant to 
 4345  paragraph (a) or paragraph (b), the credit permitted by 
 4346  paragraph (c) or paragraph (d) must not be allowed unless the 
 4347  assuming insurer agrees in the reinsurance agreements: 
 4348         1.a. That in the event of the failure of the assuming 
 4349  insurer to perform its obligations under the terms of the 
 4350  reinsurance agreement, the assuming insurer, at the request of 
 4351  the ceding insurer, shall submit to the jurisdiction of any 
 4352  court of competent jurisdiction in any state of the United 
 4353  States, will comply with all requirements necessary to give the 
 4354  court jurisdiction, and will abide by the final decision of the 
 4355  court or of any appellate court in the event of an appeal. 
 4356         b. To designate the Chief Financial Officer, pursuant to s. 
 4357  48.151, or a designated attorney as its true and lawful attorney 
 4358  upon whom may be served any lawful process in any action, suit, 
 4359  or proceeding instituted by or on behalf of the ceding company. 
 4360         2. This paragraph is not intended to conflict with or 
 4361  override the obligation of the parties to a reinsurance 
 4362  agreement to arbitrate their disputes, if this obligation is 
 4363  created in the agreement. 
 4364         (g) If the assuming insurer does not meet the requirements 
 4365  of paragraph (a) or paragraph (b), the credit permitted by 
 4366  paragraph (c) or paragraph (d) is not allowed unless the 
 4367  assuming insurer agrees in the trust agreements, in substance, 
 4368  to the following conditions: 
 4369         1. Notwithstanding any other provisions in the trust 
 4370  instrument, if the trust fund is inadequate because it contains 
 4371  an amount less than the amount required by paragraph (c), or if 
 4372  the grantor of the trust has been declared insolvent or placed 
 4373  into receivership, rehabilitation, liquidation, or similar 
 4374  proceedings under the laws of its state or country of domicile, 
 4375  the trustee shall comply with an order of the insurance 
 4376  regulator with regulatory oversight over the trust or with an 
 4377  order of a United States court of competent jurisdiction 
 4378  directing the trustee to transfer to the insurance regulator 
 4379  with regulatory oversight all of the assets of the trust fund. 
 4380         2. The assets must be distributed by and claims must be 
 4381  filed with and valued by the insurance regulator with regulatory 
 4382  oversight in accordance with the laws of the state in which the 
 4383  trust is domiciled which are applicable to the liquidation of 
 4384  domestic insurance companies. 
 4385         3. If the insurance regulator with regulatory oversight 
 4386  determines that the assets of the trust fund or any part thereof 
 4387  are not necessary to satisfy the claims of the United States 
 4388  ceding insurers of the grantor of the trust, the assets or part 
 4389  thereof must be returned by the insurance regulator with 
 4390  regulatory oversight to the trustee for distribution in 
 4391  accordance with the trust agreement. 
 4392         4. The grantor shall waive any right otherwise available to 
 4393  it under United States law which is inconsistent with this 
 4394  provision. 
 4395         (4) An asset allowed or a deduction from liability taken 
 4396  for the reinsurance ceded by an insurer to an assuming insurer 
 4397  not meeting the requirements of subsections (2) and (3) is 
 4398  allowed in an amount not exceeding the liabilities carried by 
 4399  the ceding insurer. The deduction must be in the amount of funds 
 4400  held by or on behalf of the ceding insurer, including funds held 
 4401  in trust for the ceding insurer, under a reinsurance contract 
 4402  with the assuming insurer as security for the payment of 
 4403  obligations thereunder, if the security is held in the United 
 4404  States subject to withdrawal solely by, and under the exclusive 
 4405  control of, the ceding insurer, or, in the case of a trust, held 
 4406  in a qualified United States financial institution, as defined 
 4407  in paragraph (5)(b). This security may be in the form of: 
 4408         (a) Cash in United States dollars; 
 4409         (b) Securities listed by the Securities Valuation Office of 
 4410  the National Association of Insurance Commissioners and 
 4411  qualifying as admitted assets pursuant to part II of chapter 
 4412  625; 
 4413         (c) Clean, irrevocable, unconditional letters of credit, 
 4414  issued or confirmed by a qualified United States financial 
 4415  institution, as defined in paragraph (5)(a), effective no later 
 4416  than December 31 of the year for which the filing is made, and 
 4417  in the possession of, or in trust for, the ceding company on or 
 4418  before the filing date of its annual statement; or 
 4419         (d) Any other form of security acceptable to the 
 4420  department. 
 4421         (5)(a) For purposes of paragraph (4)(c) regarding letters 
 4422  of credit, a “qualified United States financial institution” 
 4423  means an institution that: 
 4424         1. Is organized or, in the case of a United States 
 4425  department of a foreign banking organization, is licensed under 
 4426  the laws of the United States or any state thereof; 
 4427         2. Is regulated, supervised, and examined by United States 
 4428  or state authorities having regulatory authority over banks and 
 4429  trust companies; and 
 4430         3. Has been determined by either the department or the 
 4431  Securities Valuation Office of the National Association of 
 4432  Insurance Commissioners to meet such standards of financial 
 4433  condition and standing as are considered necessary and 
 4434  appropriate to regulate the quality of financial institutions 
 4435  whose letters of credit will be acceptable to the department. 
 4436         (b) For purposes of those provisions of this law which 
 4437  specify institutions that are eligible to act as a fiduciary of 
 4438  a trust, a “qualified United States financial institution” means 
 4439  an institution that is a member of the Federal Reserve System or 
 4440  that has been determined by the department to meet the following 
 4441  criteria: 
 4442         1. Is organized or, in the case of a United States branch 
 4443  or agency department of a foreign banking organization, is 
 4444  licensed under the laws of the United States or any state 
 4445  thereof and has been granted authority to operate with fiduciary 
 4446  powers; and 
 4447         2. Is regulated, supervised, and examined by federal or 
 4448  state authorities having regulatory authority over banks and 
 4449  trust companies. 
 4450         (6) For the purposes of this section only, the term “ceding 
 4451  insurer” includes any health maintenance organization operating 
 4452  under a certificate of authority issued under part I of chapter 
 4453  641. 
 4454         (7) After notice and an opportunity for a hearing, the 
 4455  department may disallow any credit that it finds would be 
 4456  contrary to the proper interests of the policyholders or 
 4457  stockholders of a ceding domestic insurer. 
 4458         (8) Credit must be allowed to any ceding insurer for 
 4459  reinsurance otherwise complying with this section only when the 
 4460  reinsurance is payable by the assuming insurer on the basis of 
 4461  the liability of the ceding insurer under the contract or 
 4462  contracts reinsured without diminution because of the insolvency 
 4463  of the ceding insurer. Such credit must be allowed to the ceding 
 4464  insurer for reinsurance otherwise complying with this section 
 4465  only when the reinsurance agreement provides that payments by 
 4466  the assuming insurer will be made directly to the ceding insurer 
 4467  or its receiver, except when: 
 4468         (a) The reinsurance contract specifically provides payment 
 4469  to the named insured, assignee, or named beneficiary of the 
 4470  policy issued by the ceding insurer in the event of the 
 4471  insolvency of the ceding insurer; or 
 4472         (b) The assuming insurer, with the consent of the named 
 4473  insured, has assumed the policy obligations of the ceding 
 4474  insurer as direct obligations of the assuming insurer in 
 4475  substitution for the obligations of the ceding insurer to the 
 4476  named insured. 
 4477         (9) No person, other than the ceding insurer, has any 
 4478  rights against the reinsurer which are not specifically set 
 4479  forth in the contract of reinsurance or in a specific written, 
 4480  signed agreement between the reinsurer and the person. 
 4481         (10) An authorized insurer may not knowingly accept as 
 4482  assuming reinsurer any risk covering subject of insurance which 
 4483  is resident, located, or to be performed in this state and which 
 4484  is written directly by any insurer not then authorized to 
 4485  transact such insurance in this state, other than as to surplus 
 4486  lines insurance lawfully written under part VIII of chapter 626. 
 4487         (11)(a) Any domestic or commercially domiciled insurer 
 4488  ceding directly written risks of loss under this section shall, 
 4489  within 30 days after receipt of a cover note or similar 
 4490  confirmation of coverage, or, without exception, no later than 6 
 4491  months after the effective date of the reinsurance treaty, file 
 4492  with the department one copy of a summary statement containing 
 4493  the following information about each treaty: 
 4494         1. The contract period. 
 4495         2. The nature of the reinsured’s business. 
 4496         3. An indication as to whether the treaty is proportional, 
 4497  nonproportional, coinsurance, modified coinsurance, or 
 4498  indemnity, as applicable. 
 4499         4. The ceding company’s loss retention per risk. 
 4500         5. The reinsured limits. 
 4501         6. Any special contract restrictions. 
 4502         7. A schedule of reinsurers assuming the risks of loss. 
 4503         8. An indication as to whether payments to the assuming 
 4504  insurer are based on written premiums or earned premiums. 
 4505         9. Identification of any intermediary or broker used in 
 4506  obtaining the reinsurance and the department paid to such 
 4507  intermediary or broker if known. 
 4508         10. Ceding commissions and allowances. 
 4509         (b) The summary statement must be signed and attested to by 
 4510  either the chief executive officer or the chief financial 
 4511  officer of the reporting insurer. In addition to the summary 
 4512  statement, the department may require the filing of any 
 4513  supporting information relating to the ceding of such risks as 
 4514  it deems necessary. If the summary statement prepared by the 
 4515  ceding insurer discloses that the net effect of a reinsurance 
 4516  treaty or treaties, or series of treaties with one or more 
 4517  affiliated reinsurers entered into for the purpose of avoiding 
 4518  the following threshold amount, at any time results in an 
 4519  increase of more than 25 percent to the insurer’s surplus as to 
 4520  policyholders, then the insurer shall certify in writing to the 
 4521  department that the relevant reinsurance treaty or treaties 
 4522  comply with the accounting requirements contained in any rule 
 4523  adopted by the department under subsection (14). If such 
 4524  certificate is filed after the summary statement of such 
 4525  reinsurance treaty or treaties, the insurer shall refile the 
 4526  summary statement with the certificate. In any event, the 
 4527  certificate must state that a copy of the certificate was sent 
 4528  to the reinsurer under the reinsurance treaty. 
 4529         (c) This subsection applies to cessions of directly written 
 4530  risk or loss. This subsection does not apply to contracts of 
 4531  facultative reinsurance or to any ceding insurer with surplus as 
 4532  to policyholders that exceeds $100 million as of the immediately 
 4533  preceding December 31. Additionally, any ceding insurer 
 4534  otherwise subject to this section with less than $500,000 in 
 4535  direct premiums written in this state during the preceding 
 4536  calendar year or with less than 1,000 policyholders at the end 
 4537  of the preceding calendar year is exempt from the requirements 
 4538  of this subsection. However, any ceding insurer otherwise 
 4539  subject to this section with more than $250,000 in direct 
 4540  premiums written in this state during the preceding calendar 
 4541  quarter is not exempt from the requirements of this subsection. 
 4542         (d) An authorized insurer not otherwise exempt from the 
 4543  provisions of this subsection shall provide the information 
 4544  required by this subsection with underlying and supporting 
 4545  documentation upon written request of the department. 
 4546         (e) The department may, upon a showing of good cause, waive 
 4547  the requirements of this subsection. 
 4548         (12) If the department finds that a reinsurance agreement 
 4549  creates a substantial risk of insolvency to either insurer 
 4550  entering into the reinsurance agreement, the department may by 
 4551  order require a cancellation of the reinsurance agreement. 
 4552         (13) No credit shall be allowed for reinsurance with regard 
 4553  to which the reinsurance agreement does not create a meaningful 
 4554  transfer of risk of loss to the reinsurer. 
 4555         (14) The department may adopt rules implementing the 
 4556  provisions of this section. Rules are authorized to protect the 
 4557  interests of insureds, claimants, ceding insurers, assuming 
 4558  insurers, and the public. These rules shall be in substantial 
 4559  compliance with: 
 4560         (a) The National Association of Insurance Commissioners 
 4561  model regulations relating to credit for reinsurance. 
 4562         (b) The National Association of Insurance Commissioners 
 4563  Accounting Practices and Procedures Manual as of March 2002 and 
 4564  subsequent amendments thereto if the methodology remains 
 4565  substantially consistent. 
 4566         (c) The National Association of Insurance Commissioners 
 4567  model regulation for Credit for Reinsurance and Life and Health 
 4568  Reinsurance Agreements. 
 4569   
 4570  The department may further adopt rules to provide for transition 
 4571  from existing requirements for the approval of reinsurers to the 
 4572  accreditation of reinsurers pursuant to this section. 
 4573         637.2051 Notice to comply with written requirements of 
 4574  department; noncompliance.— 
 4575         (1) If the department determines that the conditions set 
 4576  forth in subsection (2) exist, the department shall issue an 
 4577  order placing the title insurer in administrative supervision, 
 4578  setting forth the reasons giving rise to the determination, and 
 4579  specifying that the department is applying and effectuating the 
 4580  provisions of this chapter. An order issued by the department 
 4581  pursuant to this subsection entitles the insurer to request a 
 4582  proceeding under ss. 120.569 and 120.57, and such a request 
 4583  shall stay the action pending such proceeding. 
 4584         (2) A title insurer shall be subject to administrative 
 4585  supervision by the department if upon examination or at any 
 4586  other time the department determines that: 
 4587         (a) The insurer is in unsound condition; 
 4588         (b) The insurer’s methods or practices render the 
 4589  continuance of its business hazardous to the public or to its 
 4590  insureds; or 
 4591         (c) The insurer has exceeded its powers granted under its 
 4592  certificate of authority and applicable law. 
 4593         (3) Within 15 days after receipt of notice of the 
 4594  department’s determination to proceed under this chapter, an 
 4595  insurer shall submit to the department a plan to correct the 
 4596  conditions set forth in the notice. For good cause shown, the 
 4597  department may extend the 15-day time period for submission of 
 4598  the plan. If the department and the insurer agree on a 
 4599  corrective plan, a written agreement shall be entered into to 
 4600  carry out the plan. 
 4601         (4) If a title insurer fails to timely submit a plan, the 
 4602  department may specify the requirements of a plan to address the 
 4603  conditions giving rise to imposition of administrative 
 4604  supervision under this chapter. In addition, failure of the 
 4605  insurer to timely submit a plan is a violation of the provisions 
 4606  of this chapter punishable in accordance with s. 637.2017. 
 4607         (5) The plan shall address, but shall not be limited to, 
 4608  each of the activities of the insurer’s business which are set 
 4609  forth in s. 637.2053. 
 4610         (6) Any insurer subject to administrative supervision is 
 4611  expected to avail itself of all reasonably available 
 4612  reinsurance. Reasonably available reinsurance shall include 
 4613  unrealized reinsurance, which is defined as reinsurance 
 4614  recoverable on known losses incurred and due under valid 
 4615  reinsurance contracts that have not been identified in the 
 4616  normal course of business and have not been reported in 
 4617  financial statements filed with the department. Within 90 days 
 4618  after being placed under administrative supervision, the insurer 
 4619  shall certify to the Chief Financial Officer that the insurer 
 4620  has engaged an independent third party to search for unrealized 
 4621  reinsurance, and that the insurer has made all relevant books 
 4622  and records available to the third party. The compensation to 
 4623  the third party may be a percentage of unrealized reinsurance 
 4624  identified and collected. 
 4625         (7) If the department and the insurer are unable to agree 
 4626  on the provisions of the plan, the department may require the 
 4627  insurer to take such corrective action as may be reasonably 
 4628  necessary to remove the causes and conditions giving rise to the 
 4629  need for administrative supervision. 
 4630         (8) The insurer shall have 60 days, or a longer period of 
 4631  time as designated by the department but not to exceed 120 days, 
 4632  after the date of the written agreement or the receipt of the 
 4633  department’s plan within which to comply with the requirements 
 4634  of the department. At the conclusion of the initial period of 
 4635  supervision, the department may extend the supervision in 
 4636  increments of 60 days or longer, not to exceed 120 days, if 
 4637  conditions justifying supervision exist. Each extension of 
 4638  supervision shall provide the insurer with a point of entry 
 4639  pursuant to chapter 120. 
 4640         (9) The initiation or pendency of administrative 
 4641  proceedings arising from actions taken under this section shall 
 4642  not preclude the department from initiating judicial proceedings 
 4643  to place an insurer in conservation, rehabilitation, or 
 4644  liquidation or initiating other delinquency proceedings however 
 4645  designated under the laws of this state. 
 4646         (10) If it is determined that the conditions giving rise to 
 4647  administrative supervision have been remedied so that the 
 4648  continuance of its business is no longer hazardous to the public 
 4649  or to its insureds, the department shall release the insurer 
 4650  from supervision. 
 4651         (11) The department may adopt rules to define standards of 
 4652  hazardous financial condition and corrective action 
 4653  substantially similar to that indicated in the National 
 4654  Association of Insurance Commissioners’ 1997 “Model Regulation 
 4655  to Define Standards and Commissioner’s Authority for Companies 
 4656  Deemed to be in Hazardous Financial Condition,” which are 
 4657  necessary to implement the provisions of this part. 
 4658         637.2053 Prohibited acts during period of supervision.—The 
 4659  department may provide that the title insurer may not conduct 
 4660  the following activities during the period of supervision, 
 4661  without prior approval by the department: 
 4662         (1) Dispose of, convey, or encumber any of its assets or 
 4663  its business in force; 
 4664         (2) Withdraw any of its bank accounts; 
 4665         (3) Lend any of its funds; 
 4666         (4) Invest any of its funds; 
 4667         (5) Transfer any of its property; 
 4668         (6) Incur any debt, obligation, or liability; 
 4669         (7) Merge or consolidate with another company; 
 4670         (8) Enter into any new reinsurance contract or treaty; 
 4671         (9) Terminate, surrender, forfeit, convert, or lapse any 
 4672  insurance policy, certificate, or contract of insurance, except 
 4673  for nonpayment of premiums due; 
 4674         (10) Release, pay, or refund premium deposits, accrued cash 
 4675  or loan values, unearned premiums, or other reserves on any 
 4676  insurance policy or certificate; or 
 4677         (11) Make any material change in management. 
 4678         637.2054 Review.—During the period of supervision, the 
 4679  title insurer may contest an action taken or proposed to be 
 4680  taken by the supervisor, specifying the manner wherein the 
 4681  action complained of would not result in improving the condition 
 4682  of the insurer. Such request shall not stay the action specified 
 4683  pending reconsideration of the action by the department. Denial 
 4684  of the insurer’s request upon reconsideration entitles the 
 4685  insurer to request a proceeding under ss. 120.569 and 120.57. 
 4686         637.2055 Administrative election of proceedings.—If the 
 4687  department determines to act under authority of this chapter, 
 4688  the sequence of its acts and proceedings shall be as set forth 
 4689  herein. However, it is a purpose and substance of this chapter 
 4690  to allow the department administrative discretion in the event 
 4691  of insurer delinquencies and, in furtherance of that purpose, 
 4692  the department may, in respect to insurer delinquencies or 
 4693  suspected delinquencies, proceed and administer under the 
 4694  provisions of this chapter or any other applicable law, or under 
 4695  the provisions of this chapter in conjunction with other 
 4696  applicable law, and it is so provided. Nothing contained in this 
 4697  part or in any other provision of law shall preclude the 
 4698  department from initiating judicial proceedings to place an 
 4699  insurer in conservation, rehabilitation, or liquidation 
 4700  proceedings or other delinquency proceedings however designated 
 4701  under the laws of this state, regardless of whether the 
 4702  department has previously initiated administrative supervision 
 4703  proceedings under this part against the insurer. The entry of an 
 4704  order of seizure, rehabilitation, or liquidation pursuant to 
 4705  chapter 631 shall terminate all proceedings pending pursuant to 
 4706  this part. 
 4707         637.2056 Other laws; conflicts; meetings between the 
 4708  department and the supervisor.—During the period of 
 4709  administrative supervision, the department may meet with a 
 4710  supervisor appointed under this chapter and with the attorney or 
 4711  other representative of the supervisor and such meetings are 
 4712  exempt from the provisions of s. 286.011. 
 4713         637.2057 Administrative supervision; expenses.— 
 4714         (1) During the period of supervision the department by 
 4715  contract or otherwise may appoint a deputy supervisor to 
 4716  supervise the title insurer. 
 4717         (2) Each insurer which is subject to administrative 
 4718  supervision by the department shall pay to the department the 
 4719  expenses of its administrative supervision at the rates adopted 
 4720  by the department. Expenses shall include actual travel 
 4721  expenses, a reasonable living expense allowance, compensation of 
 4722  the deputy supervisor or other person employed or appointed by 
 4723  the department for purposes of the supervision, and necessary 
 4724  attendant administrative costs of the department directly 
 4725  related to the supervision. The travel expense and living 
 4726  expense allowance shall be limited to those expenses necessarily 
 4727  incurred on account of the administrative supervision and shall 
 4728  be paid by the insurer together with compensation upon 
 4729  presentation by the department to the insurer of a detailed 
 4730  account of the charges and expenses after a detailed statement 
 4731  has been filed by the deputy supervisor or other person employed 
 4732  or appointed by the department and approved by the department. 
 4733         (3) All moneys collected from insurers for the expenses of 
 4734  administrative supervision shall be deposited into the Title 
 4735  Insurance Regulatory Trust Fund, and the department is 
 4736  authorized to make deposits from time to time into this fund 
 4737  from moneys appropriated for the operation of the department. 
 4738         (4) Notwithstanding the provisions of s. 112.061, the 
 4739  department is authorized to pay to the deputy supervisor or 
 4740  person employed or appointed by the department for purposes of 
 4741  the supervision out of such trust fund the actual travel 
 4742  expenses, reasonable living expense allowance, and compensation 
 4743  in accordance with the statement filed with the department by 
 4744  the deputy supervisor or other person, as provided in subsection 
 4745  (2), upon approval by the department. 
 4746         (5) The department may in whole or in part defer payment of 
 4747  expenses due from the insurer pursuant to this section upon a 
 4748  showing that payment would adversely impact on the financial 
 4749  condition of the insurer and jeopardize its rehabilitation. The 
 4750  payment shall be made by the insurer when the condition is 
 4751  removed and the payment would no longer jeopardize the insurer’s 
 4752  financial condition. 
 4753         Section 11. Section 627.777, Florida Statutes, is 
 4754  transferred, renumbered as section 637.2058, Florida Statutes, 
 4755  and amended to read: 
 4756         637.2058 627.777 Approval of forms.— 
 4757         (1) A title insurer may not issue or agree to issue any 
 4758  form of title insurance commitment, title insurance policy, 
 4759  other contract of title insurance, or related form until it is 
 4760  filed with and approved by the department office. The department 
 4761  office may not disapprove a title guarantee or policy form on 
 4762  the ground that it has on it a blank form for an attorney’s 
 4763  opinion on the title. 
 4764         (2) If a form filed for approval is a form recommended by 
 4765  the American Land Title Association at the time of the filing, 
 4766  the department shall approve or disapprove the form within 180 
 4767  days. If a form filed for approval is a form not recommended by 
 4768  the American Land Title Association at the time of the filing, 
 4769  the department shall approve or disapprove the form within 1 
 4770  year. 
 4771         (3) At the time of the approval of any form, the department 
 4772  shall determine if a rate in effect at that time applies or if 
 4773  the coverages require adoption of a rule pursuant to s. 
 4774  637.2064. 
 4775         (4) The department may revoke approval of any form upon 180 
 4776  days’ notice. 
 4777         (5) An insurer may not achieve any competitive advantage 
 4778  over any other insurer or agent as to forms. 
 4779         Section 12. Section 627.7773, Florida Statutes, is 
 4780  transferred, renumbered as section 637.2059, Florida Statutes, 
 4781  and amended to read: 
 4782         637.2059 627.7773 Accounting and auditing of forms by title 
 4783  insurers.— 
 4784         (1) Each title insurer authorized to do business in this 
 4785  state shall, at least once during each calendar year, require of 
 4786  each of its title insurance agents or agencies accountings of 
 4787  all outstanding forms in the agent’s or agency’s possession of 
 4788  the types that are specified in s. 637.2058 627.777. 
 4789         (2) If the department office has reason to believe that an 
 4790  audit of outstanding forms should be required of any title 
 4791  insurer as to a title insurance agent or agency, the department 
 4792  office may require the title insurer to make a special audit of 
 4793  the forms. The title insurer shall complete the audit not later 
 4794  than 60 days after the request is received from the department 
 4795  office, and shall report the results of the special audit to the 
 4796  department office no later than 90 days after the request is 
 4797  received. 
 4798         Section 13. Section 627.7776, Florida Statutes, is 
 4799  transferred, renumbered as section 637.2061, Florida Statutes, 
 4800  and subsection (1) of that section is amended to read: 
 4801         637.2061 627.7776 Furnishing of supplies; civil liability.— 
 4802         (1) A title insurer may not furnish to any person any blank 
 4803  forms, applications, stationery, or other supplies to be used in 
 4804  soliciting, negotiating, or effecting contracts of title 
 4805  insurance on its behalf until that person has received from the 
 4806  insurer a contract to act as a title insurance agent or agency 
 4807  and has been licensed by the department, if required by s. 
 4808  637.3006 626.8417. 
 4809         Section 14. Section 627.780, Florida Statutes, is 
 4810  transferred, renumbered as section 637.2063, Florida Statutes, 
 4811  and subsection (1) of that section is amended to read: 
 4812         637.2063 627.780 Illegal dealings in premium.— 
 4813         (1) A person may not knowingly quote, charge, accept, 
 4814  collect, or receive a premium for title insurance other than the 
 4815  premium adopted by the department commission, except as provided 
 4816  in s. 637.1033(7)(b). 626.9541(1)(h)3.b. 
 4817         Section 15. Section 637.20635, Florida Statutes, is created 
 4818  to read: 
 4819         637.20635 Rebating; when allowed.— 
 4820         (1) A title insurer, title insurance agency, or title 
 4821  insurance agent may not rebate any portion of the premium except 
 4822  as follows: 
 4823         (a) A rebate shall be in accordance with a uniform 
 4824  percentage of the premium established by the insurer issuing the 
 4825  policy to which the rebate applies. Deviations from the approved 
 4826  rebate may not be permitted for any reason, including, but not 
 4827  limited to, the amount of the coverage, the insured, any 
 4828  geographic limitation within this state, or the type of policy. 
 4829         (b) Any rebates shall be uniformly applied to all policies 
 4830  of whatever kind issued by or on behalf of the insurer. Each 
 4831  person responsible for paying the premium must receive the same 
 4832  rebate regardless of whether the policy is purchased from a 
 4833  title insurance agent or agency, directly from the title 
 4834  insurer, or from an affiliated company. For purposes of this 
 4835  paragraph, the term “affiliated company” means any company of an 
 4836  affiliated group of corporations as defined in s. 
 4837  637.2039(5)(a)(2). 
 4838         (c) The age, sex, place of residence, nationality, ethnic 
 4839  origin, marital status, or occupation of the insured may not be 
 4840  used in determining the amount of the rebate or whether a rebate 
 4841  is available. 
 4842         (d) The insurer shall file a copy of the uniform rebate 
 4843  percentage and its effective date quarterly with the department. 
 4844  The insurer may not establish a rebate schedule that has the 
 4845  effect of impairing the financial solvency of the insurer or the 
 4846  title insurance agent or agency. The insurer must obtain 
 4847  department approval of the rebates consistent with s. 637.2064 
 4848  prior to their implementation. 
 4849         (2) A rebate may not be: 
 4850         (a) Withheld or limited in amount based on factors that are 
 4851  unfairly discriminatory. 
 4852         (b) Given if it is inconsistent with the filed and approved 
 4853  uniform rebate percentage. 
 4854         (c) Granted or refused based upon the purchase or failure 
 4855  of the insured to purchase additional services. 
 4856         Section 16. Section 627.782, Florida Statutes, is 
 4857  transferred, renumbered as section 637.2064, Florida Statutes, 
 4858  and amended to read: 
 4859         637.2064 627.782 Adoption of rates.— 
 4860         (1) Subject to the rating provisions of this chapter code, 
 4861  the department commission must adopt a rule specifying the 
 4862  premium to be charged in this state by title insurers for the 
 4863  respective types of title insurance contracts and, for policies 
 4864  issued through agents or agencies, the percentage of such 
 4865  premium required to be retained by the title insurer which shall 
 4866  not be less than 30 percent. However, in a transaction subject 
 4867  to the Real Estate Settlement Procedures Act of 1974, 12 U.S.C. 
 4868  ss. 2601 et seq., as amended, no portion of the premium 
 4869  attributable to providing a primary title service shall be paid 
 4870  to or retained by any person who does not actually perform or is 
 4871  not liable for the performance of such service. 
 4872         (2) In adopting premium rates, the department commission 
 4873  must give due consideration to the following: 
 4874         (a) The title insurers’ loss experience and prospective 
 4875  loss experience under closing protection letters and policy 
 4876  liabilities. 
 4877         (b) A reasonable margin for underwriting profit and 
 4878  contingencies, including contingent liability under s. 637.2075 
 4879  627.7865, sufficient to allow title insurers, agents, and 
 4880  agencies to earn a rate of return on their capital that will 
 4881  attract and retain adequate capital investment in the title 
 4882  insurance business and maintain an efficient title insurance 
 4883  delivery system. 
 4884         (c) Past expenses and prospective expenses for 
 4885  administration and handling of risks. 
 4886         (d) Liability for defalcation. 
 4887         (e) Other relevant factors. 
 4888         (3) Rates may be grouped by classification or schedule and 
 4889  may differ as to class of risk assumed. 
 4890         (4) Rates may not be excessive, inadequate, or unfairly 
 4891  discriminatory. 
 4892         (5) The premium applies to each $100 of insurance issued to 
 4893  an insured. 
 4894         (6) The premium rates apply throughout this state. 
 4895         (7) The department commission shall, in accordance with the 
 4896  standards provided in subsection (2), review the premium as 
 4897  needed, but not less frequently than once every 3 years, and 
 4898  shall, based upon the review required by this subsection, revise 
 4899  the premium if the results of the review so warrant. 
 4900         (8) The department commission may, by rule, require 
 4901  licensees under this part to annually submit statistical 
 4902  information, including loss and expense data, as the department 
 4903  determines to be necessary to analyze premium rates, retention 
 4904  rates, and the condition of the title insurance industry. 
 4905         Section 17. Section 627.783, Florida Statutes, is 
 4906  transferred, renumbered as section 637.2065, Florida Statutes, 
 4907  and amended to read: 
 4908         637.2065 627.783 Rate deviation.— 
 4909         (1) A title insurer may petition the department office for 
 4910  an order authorizing a specific deviation from the adopted 
 4911  premium. The petition shall be in writing and sworn to and shall 
 4912  set forth allegations of fact upon which the petitioner will 
 4913  rely, including the petitioner’s reasons for requesting the 
 4914  deviation. Any authorized title insurer, agent, or agency may 
 4915  join in the petition for like authority to deviate or may file a 
 4916  separate petition praying for like authority or opposing the 
 4917  deviation. The department office shall rule on all such 
 4918  petitions simultaneously. 
 4919         (2) If, in the judgment of the department office, the 
 4920  requested deviation is not justified, the department office may 
 4921  enter an order denying the petition. An order granting a 
 4922  petition constitutes an amendment to the adopted premium as to 
 4923  the petitioners named in the order, and is subject to s. 
 4924  637.2064 627.782. 
 4925         Section 18. Section 627.7831, Florida Statutes, is 
 4926  transferred and renumbered as section 637.2066, Florida 
 4927  Statutes. 
 4928         Section 19. Section 627.784, Florida Statutes, is 
 4929  transferred and renumbered as section 637.2067, Florida 
 4930  Statutes. 
 4931         Section 20. Section 627.7841, Florida Statutes, is 
 4932  transferred and renumbered as section 637.2068, Florida 
 4933  Statutes. 
 4934         Section 21. Section 627.7842, Florida Statutes, is 
 4935  transferred and renumbered as section 637.2069, Florida 
 4936  Statutes. 
 4937         Section 22. Section 627.7843, Florida Statutes, is 
 4938  transferred and renumbered as section 637.2071, Florida 
 4939  Statutes. 
 4940         Section 23. Section 627.7845, Florida Statutes, is 
 4941  transferred, renumbered as section 637.2072, Florida Statutes, 
 4942  and amended to read: 
 4943         637.2072 627.7845 Determination of insurability required; 
 4944  preservation of evidence of title search and examination.— 
 4945         (1) A title insurer may not issue a title insurance 
 4946  commitment, endorsement, or title insurance policy until the 
 4947  title insurer has caused to be made a determination of 
 4948  insurability based upon the evaluation of a reasonable title 
 4949  search or a search of the records of a Uniform Commercial Code 
 4950  filing office, as applicable, has examined such other 
 4951  information as may be necessary, and has caused to be made a 
 4952  determination of insurability of title or the existence, 
 4953  attachments, perfection, and priority of a Uniform Commercial 
 4954  Code security interest, including endorsement coverages, in 
 4955  accordance with sound underwriting practices. 
 4956         (2) The title insurer shall cause the evidence of the 
 4957  determination of insurability and the reasonable title search or 
 4958  search of the records of a Uniform Commercial Code filing office 
 4959  to be preserved and retained in its files or in the files of its 
 4960  title insurance agent or agency for a period of not less than 7 
 4961  years after the title insurance commitment, title insurance 
 4962  policy, or guarantee of title was issued. The title insurer or 
 4963  agent or agency must produce the evidence required to be 
 4964  maintained by this subsection at its offices upon the demand of 
 4965  the department office. Instead of retaining the original 
 4966  evidence, the title insurer or the title insurance agent or 
 4967  agency may, in the regular course of business, establish a 
 4968  system under which all or part of the evidence is recorded, 
 4969  copied, or reproduced by any photographic, photostatic, 
 4970  microfilm, microcard, miniature photographic, or other process 
 4971  which accurately reproduces or forms a durable medium for 
 4972  reproducing the original. 
 4973         (3) The title insurer or its agent or agency must maintain 
 4974  a record of the actual premium charged for issuance of the 
 4975  policy and any endorsements in its files for a period of not 
 4976  less than 7 years. The title insurer, agent, or agency must 
 4977  produce the record at its office upon demand of the department 
 4978  office. 
 4979         (4) This section does not apply to an insurer assuming no 
 4980  primary liability in a contract of reinsurance or to an insurer 
 4981  acting as a coinsurer if any other coinsuring insurer has 
 4982  complied with this section. 
 4983         Section 24. Section 627.785, Florida Statutes, is 
 4984  transferred and renumbered as section 637.2073, Florida 
 4985  Statutes. 
 4986         Section 25. Section 627.786, Florida Statutes, is 
 4987  transferred, renumbered as section 637.2074, Florida Statutes, 
 4988  and subsection (3) of that section is amended to read: 
 4989         637.2074 627.786 Transaction of title insurance and any 
 4990  other kind of insurance prohibited.— 
 4991         (3) Subsection (1) does not preclude a title insurer from 
 4992  providing instruments to any prospective insured, in the form 
 4993  and content approved by the department office, under which the 
 4994  title insurer assumes liability for loss due to the fraud of, 
 4995  dishonesty of, misappropriation of funds by, or failure to 
 4996  comply with written closing instructions by, its contract 
 4997  agents, agencies, or approved attorneys in connection with a 
 4998  real property transaction for which the title insurer is to 
 4999  issue a title insurance policy. 
 5000         Section 26. Section 627.7865, Florida Statutes, is 
 5001  transferred, renumbered as section 637.2075, Florida Statutes, 
 5002  and amended to read: 
 5003         637.2075 627.7865 Title insurer assessments.—As a condition 
 5004  of doing business in this state, each title insurer shall be 
 5005  liable for an assessment to pay all unpaid title insurance 
 5006  claims on real property in this state for any title insurer 
 5007  which is liquidated with unpaid outstanding claims. The 
 5008  department office shall assess all title insurers on a pro rata 
 5009  basis determined by their writings in this state for amounts 
 5010  necessary to pay the claims. A title insurer is not required to 
 5011  pay an amount in excess of one-tenth of its surplus as to 
 5012  policyholders. 
 5013         Section 27. Section 627.791, Florida Statutes, is 
 5014  transferred, renumbered as section 637.2076, Florida Statutes, 
 5015  and amended to read: 
 5016         637.2076 627.791 Penalties against title insurers for 
 5017  violations by persons or entities not licensed.—A title insurer 
 5018  is subject to the penalties in ss. 637.2017(2) and 637.2021 
 5019  624.418(2) and 624.4211 for any violation of a lawful order or 
 5020  rule of the department office or commission, or for any 
 5021  violation of this chapter code, committed by: 
 5022         (1) A person, firm, association, corporation, cooperative, 
 5023  joint-stock company, or other legal entity not licensed under 
 5024  this part when issuing and countersigning commitments or 
 5025  policies of title insurance on behalf of the title insurer. 
 5026         (2) An attorney when issuing and countersigning commitments 
 5027  or policies of title insurance on behalf of the title insurer. 
 5028         Section 28. Section 627.792, Florida Statutes, is 
 5029  transferred, renumbered as section 637.2077, Florida Statutes, 
 5030  and amended to read: 
 5031         637.2077 627.792 Liability of title insurers for 
 5032  defalcation by title insurance agents or agencies.—A title 
 5033  insurer is liable for the defalcation, conversion, or 
 5034  misappropriation by a licensed title insurance agent or agency 
 5035  of funds held in trust by the agent or agency pursuant to s. 
 5036  637.3029 626.8473. If the agent or agency is an agent or agency 
 5037  for two or more title insurers, any liability shall be borne by 
 5038  the title insurer upon which a title insurance commitment or 
 5039  policy was issued prior to the illegal act. If no commitment or 
 5040  policy was issued, each title insurer represented by the agent 
 5041  or agency at the time of the illegal act shares in the liability 
 5042  in the same proportion that the premium remitted to it by the 
 5043  agent or agency during the 1-year period before the illegal act 
 5044  bears to the total premium remitted to all title insurers by the 
 5045  agent or agency during the same time period. 
 5046         Section 29. Section 627.793, Florida Statutes, is 
 5047  transferred, renumbered as section 637.2078, Florida Statutes, 
 5048  and amended to read: 
 5049         637.2078 627.793 Rulemaking authority.—The department 
 5050  commission may adopt rules implementing the provisions of this 
 5051  chapter part. 
 5052         Section 30. Section 627.796, Florida Statutes, is 
 5053  transferred and renumbered as section 637.2079, Florida 
 5054  Statutes. 
 5055         Section 31. Section 627.797, Florida Statutes, is 
 5056  transferred, renumbered as section 637.2081, Florida Statutes, 
 5057  and subsection (1) of that section is amended to read: 
 5058         637.2081 627.797 Exempt title insurance agent list.— 
 5059         (1) Every insurer shall file with the department a list 
 5060  containing the name and address of each appointed agent who is 
 5061  exempt from licensure under s. 637.3006(4) 626.8417(4) and who 
 5062  issues or countersigns binders, commitments, title insurance 
 5063  policies, or guarantees of title. 
 5064         Section 32. Section 627.798, Florida Statutes, is 
 5065  transferred, renumbered as section 637.2082, Florida Statutes, 
 5066  and amended to read: 
 5067         637.2082 627.798 Rulemaking authority.—The department may 
 5068  commission shall by rule adopt rules implementing the provisions 
 5069  of this part a form to be used to provide notice to a purchaser 
 5070  mortgagor that the purchaser-mortgagor is not protected by the 
 5071  title policy of the mortgagee. 
 5072         Section 33. Sections 637.2083, 637.2084, 637.2085, 
 5073  637.2086, 637.2087, 637.2088, 637.2089, and 637.2091, Florida 
 5074  Statutes, are created to read: 
 5075         637.2083 Assets not allowed.—In addition to assets 
 5076  impliedly excluded by the provisions of s. 625.012, the 
 5077  following expressly shall not be allowed as assets in any 
 5078  determination of the financial condition of a title insurer: 
 5079         (1) Trade names, patents, agreements not to compete, and 
 5080  other like intangible assets. 
 5081         (2) Advances (other than policy loans) to officers and 
 5082  directors, whether secured or not, and advances to employees, 
 5083  agents, and other persons on personal security only. 
 5084         (3) Stock of such insurer, owned by it, or any material 
 5085  equity therein or loans secured thereby, or any material 
 5086  proportionate interest in such stock acquired or held through 
 5087  the ownership by such insurer of an interest in another firm, 
 5088  corporation, or business unit. 
 5089         (4) Furniture, fixtures, furnishings, safes, vehicles, 
 5090  libraries, stationery, literature, and supplies, other than data 
 5091  processing and accounting systems authorized under s. 
 5092  625.012(11), except in the case of title insurers such materials 
 5093  and plants as the insurer is expressly authorized to invest in 
 5094  under s. 637.20073 and except, in the case of any insurer, such 
 5095  personal property as the insurer is permitted to hold pursuant 
 5096  to part II of this chapter, or which is acquired through 
 5097  foreclosure of chattel mortgages acquired pursuant to s. 
 5098  625.329, or which is reasonably necessary for the maintenance 
 5099  and operation of real estate lawfully acquired and held by the 
 5100  insurer other than real estate used by it for home office, 
 5101  branch office, and similar purposes. 
 5102         (5) The amount, if any, by which the aggregate book value 
 5103  of investments as carried in the ledger assets of the insurer 
 5104  exceeds the aggregate value thereof as determined under this 
 5105  code. 
 5106         (6) Bonds, notes, or other evidences of indebtedness which 
 5107  are secured by mortgages or deeds of trust which are in default. 
 5108         (7) Prepaid and deferred expenses. 
 5109         637.2084 Power to contract; purchase of title insurance by 
 5110  or for minor.— 
 5111         (1) Any person of competent legal capacity may contract for 
 5112  title insurance. 
 5113         (2) Any minor of the age of 15 years or more, as determined 
 5114  by the nearest birthday, may, notwithstanding his or her 
 5115  minority, contract for title insurance on his or her own 
 5116  property. 
 5117         (3) If any minor mentioned in subsection (2) is possessed 
 5118  of an estate that is being administered by a guardian or 
 5119  curator, such contract shall not be binding upon such estate as 
 5120  to payment of premiums, except as and when consented to by the 
 5121  guardian or curator and approved by the probate court of the 
 5122  county in which the administration of the estate is pending; and 
 5123  such consent and approval shall be required as to each premium 
 5124  payment. 
 5125         637.2085 Charter, bylaw provisions.—A title insurance 
 5126  policy may not contain any provision purporting to make any 
 5127  portion of the charter, bylaws, or other constituent document of 
 5128  the title insurer a part of the contract unless such portion is 
 5129  set forth in full in the policy. Any policy provision in 
 5130  violation of this section is invalid. 
 5131         637.2086 Execution of policies.— 
 5132         (1) Every title insurance policy shall be executed in the 
 5133  name of and on behalf of the insurer by its officer, attorney in 
 5134  fact, employee, or representative duly authorized by the title 
 5135  insurer. 
 5136         (2) A facsimile signature of any such executing individual 
 5137  may be used in lieu of an original signature. 
 5138         (3) A title insurance contract that is otherwise valid may 
 5139  not be rendered invalid by reason of the apparent execution 
 5140  thereof on behalf of the title insurer by the imprinted 
 5141  facsimile signature of an individual not authorized so to 
 5142  execute as of the date of the policy. 
 5143         637.2087 Construction of policies.— 
 5144         (1) Every title insurance contract shall be construed 
 5145  according to the entirety of its terms and conditions as set 
 5146  forth in the policy and as amplified, extended, or modified by 
 5147  any application therefor or any rider or endorsement thereto. 
 5148         (2) If a title insurer or licensee advertises title 
 5149  insurance policy in a language other than English, the 
 5150  advertisements shall not be construed to modify or change the 
 5151  insurance policy written in English. The advertisement must 
 5152  disclose that the policy written in English controls in the 
 5153  event of a dispute and that statements contained in the 
 5154  advertisement do not necessarily, as a result of possible 
 5155  linguistic differences, reflect the contents of the policy 
 5156  written in English. Nothing in this subsection shall affect the 
 5157  provisions of s. 637.1033 relating to misrepresentations and 
 5158  false advertising of insurance policies. 
 5159         637.2088 Payment of judgment by title insurer; penalty for 
 5160  failure.— 
 5161         (1) Every judgment or decree for the recovery of money 
 5162  entered in any of the courts of this state against any 
 5163  authorized title insurer shall be fully satisfied within 60 days 
 5164  after the entry thereof or, in the case of an appeal from such 
 5165  judgment or decree, within 60 days after the affirmance of the 
 5166  same by the appellate court. 
 5167         (2) If the judgment or decree is not satisfied as required 
 5168  under subsection (1), and proof of such failure to satisfy is 
 5169  made by filing with the department a certified transcript of the 
 5170  docket of the judgment or decree together with a certificate by 
 5171  the clerk of the court wherein the judgment or decree was 
 5172  entered that the judgment or decree remains unsatisfied, in 
 5173  whole or in part, after the time aforesaid, the department shall 
 5174  forthwith revoke the title insurer’s certificate of authority. 
 5175  The department shall not issue to such insurer any new 
 5176  certificate of authority until the judgment or decree is wholly 
 5177  paid and satisfied and proof thereof filed with the department 
 5178  under the official certificate of the clerk of the court wherein 
 5179  the judgment was recovered, showing that the same is satisfied 
 5180  of record, and until the expenses and fees incurred in the case 
 5181  are also paid by the insurer. 
 5182         637.2089 Attorney’s fee.— 
 5183         (1) Upon the rendition of a judgment or decree by any of 
 5184  the courts of this state against a title insurer and in favor of 
 5185  any named or omnibus insured or the named beneficiary under a 
 5186  policy or contract executed by the title insurer, the trial 
 5187  court or, in the event of an appeal in which the insured or 
 5188  beneficiary prevails, the appellate court shall adjudge or 
 5189  decree against the title insurer and in favor of the insured or 
 5190  beneficiary a reasonable sum as fees or compensation for the 
 5191  insured’s or beneficiary’s attorney prosecuting the suit in 
 5192  which the recovery is had. 
 5193         (2) When so awarded, compensation or fees of the attorney 
 5194  shall be included in the judgment or decree rendered in the 
 5195  case. 
 5196         637.2091 Title insurance business exclusive.— 
 5197         (1) A domestic title insurer may not engage directly or 
 5198  indirectly in any business other than the title insurance 
 5199  business and business activities reasonably and necessarily 
 5200  incidental to such title insurance business. 
 5201         (2) Notwithstanding subsection (1), a title insurer may 
 5202  engage in business as an escrow agent, and any title insurer may 
 5203  also engage in the business of making, acquiring, selling, 
 5204  dealing in, and servicing of real estate mortgage loans and 
 5205  loans incidental thereto. 
 5206         (3) A business trust whose declaration of trust was filed 
 5207  with the Secretary of State prior to January 1, 1959, and which, 
 5208  at the time of the adoption of the Florida Insurance Code, held 
 5209  a certificate of authority as a title insurer may qualify as an 
 5210  insurer for lawyers’ professional liability insurance by 
 5211  complying with the applicable provisions of the code. 
 5212         Section 34. Part III of chapter 637, Florida Statutes, 
 5213  consisting of sections 637.3001, 637.3002, 637.3003, 637.30041, 
 5214  637.30042, 637.30043, 637.30044, 637.30045, 637.30046, 
 5215  637.30047, 637.30048, 637.30049, 637.3005, 637.3006, 637.3007, 
 5216  637.3008, 637.3009, 637.30093, 637.30094, 637.30095, 637.30096, 
 5217  637.30097, 637.3011, 637.3012, 637.30125, 637.3013, 637.30133, 
 5218  637.30135, 637.3014, 637.30142, 637.30143, 637.30144, 637.30145, 
 5219  637.30146, 637.30147, 637.3015, 637.3016, 637.3017, 637.3018, 
 5220  637.3019, 637.3021, 637.3022, 637.3023, 637.3024, 637.3025, 
 5221  637.3026, 637.3027, 637.3028, 637.3029, and 637.30295, is 
 5222  created and entitled “TITLE INSURANCE AGENT AND AGENCY LICENSING 
 5223  AND ADMINISTRATION.” 
 5224         Section 35. Section 626.8412, Florida Statutes, is 
 5225  transferred, renumbered as section 637.3001, Florida Statutes, 
 5226  and amended to read: 
 5227         637.3001 626.8412 License and appointments required.— 
 5228         (1) Except as otherwise provided in this part: 
 5229         (a) Title insurance business may be conducted sold only by 
 5230  a title insurer or a licensed title insurance agent employed by 
 5231  a licensed and appointed title insurance agency or employed by a 
 5232  title insurer. 
 5233         (b) A title insurance agent may not provide sell a title 
 5234  insurance policy for issued by an insurer for which the agent 
 5235  and agency does not hold a current appointment. 
 5236         (2) Except as otherwise provided in this part, a person, 
 5237  other than a title insurance agency or an employee of a title 
 5238  insurance agency, may not perform any of the functions of a 
 5239  title insurance agency without a title insurance agency license. 
 5240         (3) Each title insurance agency shall annually remit the 
 5241  administrative surcharge required in s. 637.2031(14)(e) prior to 
 5242  January 30 of each year. 
 5243         (a) Noncompliance with the payment of the fees as required 
 5244  in s. 637.2031(14)(e) shall result in the immediate suspension 
 5245  of the title insurance agency’s appointments to represent an 
 5246  insurer. 
 5247         (b) Absent other cause for suspension, the appointments of 
 5248  a title insurance agency may be reinstated upon receipt of the 
 5249  amount due for the administrative surcharge plus any penalties 
 5250  imposed. 
 5251         (c) A penalty may be imposed to reinstate the appointments 
 5252  of an agency. 
 5253         Section 36. Section 626.8413, Florida Statutes, is 
 5254  transferred, renumbered as section 637.3002, Florida Statutes, 
 5255  and amended to read: 
 5256         637.3002 626.8413 Title insurance agents; certain names 
 5257  prohibited.—After October 1, 1985, A title insurance agent as 
 5258  defined in s. 626.841 shall not adopt a name which contains the 
 5259  words “title insurance,” “title guaranty,” or “title guarantee,” 
 5260  unless such words are followed by the word “agent” or “agency” 
 5261  in the same size and type as the words preceding them. This 
 5262  section does not apply to a title insurer acting as an agent for 
 5263  another title insurer. 
 5264         Section 37. Sections 637.3003, 637.30041, 637.30042, 
 5265  637.30043, 637.30044, 637.30045, 637.30046, 637.30047, 
 5266  637.30048, and 637.30049, Florida Statutes, are created to read 
 5267  	637.3003 Firm, corporate, and business names; officers; 
 5268  associates; notice of changes.— 
 5269         (1) Any licensed title agent doing business under a firm or 
 5270  corporate name or under any business name other than his or her 
 5271  own individual name shall, within 30 days after the initial 
 5272  transaction of insurance under such business name, file with the 
 5273  department, on forms adopted and furnished by the department, a 
 5274  written statement of the firm, corporate, or business name being 
 5275  used, the address of any office or offices or places of business 
 5276  making use of such name, and the name and social security number 
 5277  of each officer and director of the corporation and of each 
 5278  individual associated in such firm or corporation as to the 
 5279  insurance transactions of such firm or corporation or in the use 
 5280  of such business name. 
 5281         (2) In the event of any change of such name, a change of 
 5282  any of the officers or directors, a change of any of such 
 5283  addresses, or a change in the personnel associated with such 
 5284  firm or corporation, written notice of such change shall be 
 5285  filed with the department within 30 days by or on behalf of 
 5286  those licensees terminating any such firm, corporation, or 
 5287  business name or continuing to operate under such name. 
 5288         (3) Within 30 days after a change, any licensed title 
 5289  insurance agency shall notify the department of any change in 
 5290  the information contained in the application filed pursuant to 
 5291  s. 637.3007. 
 5292         637.30041 Insurance agency names; disapproval.—The 
 5293  department may disapprove the use of any true or fictitious 
 5294  name, other than the bona fide natural name of an individual, by 
 5295  any title insurance agency on any of the following grounds: 
 5296         (1) The name interferes with or is too similar to a name 
 5297  already filed and in use by another title insurance agency or 
 5298  title insurer. 
 5299         (2) The use of the name may mislead the public in any 
 5300  respect. 
 5301         (3) The name states or implies that the title insurance 
 5302  agency is an insurer, motor club, hospital service plan, state 
 5303  or federal agency, charitable organization, or entity that 
 5304  primarily provides advice and counsel rather than sells or 
 5305  solicits title insurance, or is entitled to engage in title 
 5306  insurance activities not permitted under licenses held or 
 5307  applied for. This subsection does not prohibit the use of the 
 5308  word “state” or “states” in the name of the agency. The use of 
 5309  the word “state” or “states” in the name of an agency does not 
 5310  imply that the agency is a state agency. 
 5311         637.30042 Examination requirement; exemptions.—The 
 5312  department may not issue any license as a title insurance agent 
 5313  to any individual who has not qualified for, taken, and passed 
 5314  to the satisfaction of the department a written examination of 
 5315  the scope prescribed in s. 637.30044. 
 5316         637.30043 Eligibility; application for examination.— 
 5317         (1) A person may not be permitted to take an examination 
 5318  for license until his or her application for examination or 
 5319  application for the license has been approved and the required 
 5320  fees have been received by the department or a person designated 
 5321  by the department to administer the examination. 
 5322         (2) A person required to take an examination for a license 
 5323  may be permitted to take an examination prior to submitting an 
 5324  application for licensure pursuant to s. 637.3006 by submitting 
 5325  an application for examination through the department’s Internet 
 5326  website. In the application, the applicant shall set forth: 
 5327         (a) His or her full name, age, social security number, 
 5328  residence address, business address, and mailing address. 
 5329         (b) The type of license that the applicant intends to apply 
 5330  for. 
 5331         (c) The name of any required pre-licensing course he or she 
 5332  has completed or is in the process of completing. 
 5333         (d) The method by which the applicant intends to qualify 
 5334  for the type of license if other than by completing a pre 
 5335  licensing course. 
 5336         (e) The applicant’s gender. 
 5337         (f) The applicant’s native language. 
 5338         (g) The highest level of education achieved by the 
 5339  applicant. 
 5340         (h) The applicant’s race or ethnicity. However, the 
 5341  application must contain a statement that an applicant is not 
 5342  required to disclose his or her race or ethnicity, gender, or 
 5343  native language, that he or she will not be penalized for not 
 5344  making such disclosure, and that the department will use this 
 5345  information exclusively for research and statistical purposes 
 5346  and to improve the quality and fairness of the examinations. 
 5347         (3) Each application shall be accompanied by payment of the 
 5348  applicable examination fee. 
 5349         637.30044 Scope of examination.— 
 5350         (1) Each examination for a license as a title insurance 
 5351  agent, shall be of such scope as is deemed by the department to 
 5352  be reasonably necessary to test the applicant’s ability and 
 5353  competence and knowledge of title insurance and real property 
 5354  transactions of the duties and responsibilities of such a 
 5355  licensee, and of the pertinent provisions of the laws of this 
 5356  state. 
 5357         (2) Examinations must cover title insurance, abstracting, 
 5358  title searches, examination of title, closing procedures, and 
 5359  escrow handling. 
 5360         (3) This section applies to any person who submits an 
 5361  application for license and to any person who submits an 
 5362  application for examination prior to filing an application for 
 5363  license. 
 5364         637.30045 Time and place of examination; notice.— 
 5365         (1) The department or a person designated by the department 
 5366  shall mail written notice of the time and place of the 
 5367  examination to each applicant for examination and each applicant 
 5368  for license required to take an examination who is eligible to 
 5369  take the examination as of the examination date. The notice 
 5370  shall be mailed, postage prepaid, and addressed to the applicant 
 5371  at his or her address shown on the application for license or at 
 5372  such other address as requested by the applicant in writing 
 5373  filed with the department prior to the mailing of the notice. 
 5374  Notice shall be deemed given when mailed. 
 5375         (2) The examination shall be held in an adequate and 
 5376  designated examination center in this state. 
 5377         (3) The department shall make an examination available to 
 5378  the applicant, to be taken as soon as reasonably possible after 
 5379  the applicant is eligible to take the examination. Any 
 5380  examination required under this part shall be available in this 
 5381  state at a designated examination center. 
 5382         637.30046 Conduct of examination.— 
 5383         (1) The applicant for license or the applicant for 
 5384  examination shall appear in person and personally take the 
 5385  examination for license at the time and place specified by the 
 5386  department or by a person designated by the department. 
 5387         (2) The examination shall be conducted by an employee of 
 5388  the department or a person designated by the department for that 
 5389  purpose. 
 5390         (3) The questions propounded shall be as prepared by the 
 5391  department, or by a person designated by the department for that 
 5392  purpose, consistent with the applicable provisions of this code. 
 5393         (4) All examinations shall be given and graded in a fair 
 5394  and impartial manner and without unfair discrimination in favor 
 5395  of or against any particular applicant. 
 5396         637.30047 Printing of examinations or related materials to 
 5397  preserve examination security.—A contract let for the 
 5398  development, administration, or grading of examinations or 
 5399  related materials by the department pursuant to the agent, 
 5400  customer representative, or adjuster licensing and examination 
 5401  provisions of this code may include the printing or furnishing 
 5402  of such examinations or related materials in order to preserve 
 5403  security. Any such contract shall be let as a contract for a 
 5404  contractual service pursuant to s. 287.057. 
 5405         637.30048 Examination fee; determination, refund.— 
 5406         (1) Prior to being permitted to take an examination, each 
 5407  applicant who is subject to examination shall pay an examination 
 5408  fee to the department or a person designated by the department. 
 5409  A separate and additional examination fee shall be payable for 
 5410  each separate class of license applied for, notwithstanding that 
 5411  all such examinations are taken on the same date and at the same 
 5412  place. 
 5413         (2) The fee for examination is not refundable. 
 5414         637.30049 Reexamination.— 
 5415         (1) Any applicant for license or applicant for examination 
 5416  who has taken an examination and failed to make a passing grade, 
 5417  or failed to appear for the examination or to take or complete 
 5418  the examination at the time and place specified in the notice of 
 5419  the department, may take additional examinations after filing 
 5420  with the department an application for reexamination together 
 5421  with applicable fees. The failure of an applicant to pass an 
 5422  examination or the failure to appear for the examination or to 
 5423  take or complete the examination does not preclude the applicant 
 5424  from taking subsequent examinations. 
 5425         (2) The department may require any individual whose license 
 5426  as an agent has expired or has been suspended to pass an 
 5427  examination prior to reinstating or relicensing the individual 
 5428  as to any class of license. The examination fee shall be paid as 
 5429  to each examination. 
 5430         Section 38. Section 626.8414, Florida Statutes, is 
 5431  transferred and renumbered as section 637.3005, Florida 
 5432  Statutes. 
 5433         Section 39. Section 626.8417, Florida Statutes, is 
 5434  transferred, renumbered as section 637.3006, Florida Statutes, 
 5435  and subsections (1) and (3) of that section are amended to read: 
 5436         637.3006 626.8417 Title insurance agent licensure; 
 5437  exemptions.— 
 5438         (1) A person may not act as or hold himself or herself out 
 5439  to be a title insurance agent as defined in s. 626.841 until a 
 5440  valid title insurance agent’s license has been issued to that 
 5441  person by the department. 
 5442         (3) The department shall not grant or issue a license as 
 5443  title agent to any individual found by it to be untrustworthy or 
 5444  incompetent, who does not meet the qualifications for 
 5445  examination specified in s. 637.3005 626.8414, or who does not 
 5446  meet the following qualifications: 
 5447         (a) Within the 4 years immediately preceding the date of 
 5448  the application for license, the applicant must have completed a 
 5449  40-hour classroom course in title insurance, 3 hours of which 
 5450  shall be on the subject matter of ethics, as approved by the 
 5451  department, or must have had at least 12 months of experience in 
 5452  responsible title insurance duties, while working in the title 
 5453  insurance business as a substantially full-time, bona fide 
 5454  employee of a title agency, title agent, title insurer, or 
 5455  attorney who conducts real estate closing transactions and 
 5456  issues title insurance policies but who is exempt from licensure 
 5457  pursuant to paragraph (4)(a). If an applicant’s qualifications 
 5458  are based upon the periods of employment at responsible title 
 5459  insurance duties, the applicant must submit, with the 
 5460  application for license on a form prescribed by the department, 
 5461  the affidavit of the applicant and of the employer setting forth 
 5462  the period of such employment, that the employment was 
 5463  substantially full time, and giving a brief abstract of the 
 5464  nature of the duties performed by the applicant. 
 5465         (b) The applicant must have passed an any examination for 
 5466  licensure required under s. 626.221. 
 5467         Section 40. Section 626.8418, Florida Statutes, is 
 5468  transferred, renumbered as section 637.3007, Florida Statutes, 
 5469  and subsection (1) of that section is amended to read: 
 5470         637.3007 626.8418 Application for title insurance agency 
 5471  license.—Prior to doing business in this state as a title 
 5472  insurance agency, a title insurance agency must meet all of the 
 5473  following requirements: 
 5474         (1) The applicant must file with the department an 
 5475  application for a license as a title insurance agency, on 
 5476  printed forms furnished by the department, that includes all of 
 5477  the following: 
 5478         (a) The name of each majority owner, partner, officer, and 
 5479  director of the agency. 
 5480         (b) The residence address of each person required to be 
 5481  listed under paragraph (a). 
 5482         (c) The name of the agency and its principal business 
 5483  address. 
 5484         (d) The location of each title insurance agency office and 
 5485  the name under which each title insurance agency office conducts 
 5486  or will conduct business. 
 5487         (e) The name of each title insurance agent to be in full 
 5488  time charge of a title insurance an agency office and 
 5489  specification of which title insurance agency office. 
 5490         (f) Such additional information as the department requires 
 5491  by rule to ascertain the trustworthiness and competence of 
 5492  persons required to be listed on the application and to 
 5493  ascertain that such persons meet the requirements of this 
 5494  chapter code. 
 5495         Section 41. Section 626.8419, Florida Statutes, is 
 5496  transferred and renumbered as section 637.3008, Florida 
 5497  Statutes. 
 5498         Section 42. Section 626.842, Florida Statutes, is 
 5499  transferred and renumbered as section 637.3009, Florida 
 5500  Statutes. 
 5501         Section 43. Sections 637.30093, 637.30094, 637.30095, 
 5502  637.30096, and 637.30097, Florida Statutes, are created to read: 
 5503         637.30093 Continuing education required; application; 
 5504  exceptions; requirements; penalties.— 
 5505         (1) The purpose of this section is to establish 
 5506  requirements and standards for continuing education courses for 
 5507  persons licensed to solicit or sell title insurance in this 
 5508  state. 
 5509         (2)(a) Each person subject to the provisions of this 
 5510  section must complete a minimum of 10 hours of continuing 
 5511  education courses every 2 years in title insurance courses 
 5512  approved by this state. Each person subject to the provisions of 
 5513  this section must complete, as part of his or her required 
 5514  number of continuing education hours, 2 hours of continuing 
 5515  education, approved by the department, every 2 years on the 
 5516  subject matter of ethics, rules, or state and federal regulatory 
 5517  compliance matters relating to title insurance and closing 
 5518  services. 
 5519         (b) Any person who holds a license as a title agent must 
 5520  complete 10 hours of continuing education courses every 2 years. 
 5521         (c) Except as provided in paragraph (d), compliance with 
 5522  continuing education requirements is a condition precedent to 
 5523  the issuance, continuation, reinstatement, or renewal of any 
 5524  appointment subject to this chapter. 
 5525         (d) A person teaching any approved course of instruction or 
 5526  lecturing at any approved seminar and attending the entire 
 5527  course or seminar shall qualify for the same number of classroom 
 5528  hours as would be granted to a person taking and successfully 
 5529  completing such course, seminar, or program. Credit shall be 
 5530  limited to the number of hours actually taught unless a person 
 5531  attends the entire course or seminar. Any person who is an 
 5532  official of or employed by any governmental entity in this state 
 5533  and serves as a professor, instructor, or in any other position 
 5534  or office the duties and responsibilities of which are 
 5535  determined by the department to require monitoring and review of 
 5536  insurance laws or insurance regulations and practices shall be 
 5537  exempt from this section. 
 5538         (e) Excess classroom hours accumulated during any 
 5539  compliance period may be carried forward to the next compliance 
 5540  period. 
 5541         (f) For good cause shown, the department may grant an 
 5542  extension of time during which the requirements imposed by this 
 5543  section may be completed, but such extension of time may not 
 5544  exceed 1 year. 
 5545         (3) The following courses may be completed in order to meet 
 5546  the continuing education course requirements: 
 5547         (a) In the case of title agents, completion of the 
 5548  Certified Land Closer (CLC) professional designation program and 
 5549  receipt of the designation: 24 hours. 
 5550         (b) In the case of title agents, completion of the 
 5551  Certified Land Searcher (CLS) professional designation program 
 5552  and receipt of the designation: 24 hours. 
 5553         (c) Any insurance-related course that is approved by the 
 5554  department and taught by an accredited college or university per 
 5555  credit hour granted: 12 hours. 
 5556         (d) Any course, including courses relating to agency 
 5557  management or errors and omissions, developed or sponsored by 
 5558  any authorized insurer or recognized agents’ association or 
 5559  insurance trade association or any independent study program of 
 5560  instruction, subject to approval by the department, qualifies 
 5561  for the equivalency of the number of classroom hours assigned to 
 5562  such course by the department. However, unless otherwise 
 5563  provided in this section, continuing education course hours may 
 5564  not be credited toward meeting the requirements of this section 
 5565  unless the course is provided by classroom instruction or 
 5566  results in a monitored examination. 
 5567         (e) A monitored examination is not required for: 
 5568         1. An independent study program of instruction presented 
 5569  through interactive, online technology that the department 
 5570  determines has sufficient internal testing to validate the 
 5571  student’s full comprehension of the materials presented; or 
 5572         2. An independent study program of instruction presented on 
 5573  paper or in printed material that imposes a final closed book 
 5574  examination that meets the requirements of the department’s rule 
 5575  for self-study courses. The examination may be taken without a 
 5576  proctor provided the student presents to the provider a sworn 
 5577  affidavit certifying that the student did not consult any 
 5578  written materials or receive outside assistance of any kind or 
 5579  from any person, directly or indirectly, while taking the 
 5580  examination. If the student is an employee of an agency or 
 5581  corporate entity, the student’s supervisor or a manager or owner 
 5582  of the agency or corporate entity must also sign the sworn 
 5583  affidavit. If the student is self-employed, a sole proprietor, 
 5584  or a partner, or if the examination is administered online, the 
 5585  sworn affidavit must also be signed by a disinterested third 
 5586  party. The sworn affidavit must be received by the approved 
 5587  provider prior to reporting continuing education credits to the 
 5588  department. 
 5589         (f) Each person or entity sponsoring a course for 
 5590  continuing education credit shall furnish, within 30 days after 
 5591  completion of the course, in a form satisfactory to the 
 5592  department or its designee, a written and certified roster 
 5593  showing the name and license number of all persons successfully 
 5594  completing such course and requesting credit, accompanied by the 
 5595  required fee. 
 5596         (4) The department shall refuse to renew the appointment of 
 5597  any agent who has not had his or her continuing education 
 5598  requirements certified unless the agent has been granted an 
 5599  extension by the department. The department may not issue a new 
 5600  appointment of the same or similar type, with any insurer, to an 
 5601  agent who was denied a renewal appointment for failure to 
 5602  complete continuing education as required until the agent 
 5603  completes his or her continuing education requirement. 
 5604         (5) An 11-member continuing education advisory board is 
 5605  created, to be appointed by the Chief Financial Officer. 
 5606  Appointments shall be for terms of 4 years. The purpose of the 
 5607  board is to advise the department in determining standards by 
 5608  which courses may be evaluated and categorized as basic, 
 5609  intermediate, or advanced. The board shall submit to the 
 5610  department recommendations of changes needed in such criteria 
 5611  not less frequently than every 2 years. The department shall 
 5612  require all approved course providers to submit courses for 
 5613  approval to the department using the criteria. All materials, 
 5614  brochures, and advertisements related to the approved courses 
 5615  must specify the level assigned to the course. 
 5616         (6) The department may contract services relative to the 
 5617  administration of the continuing education program to a private 
 5618  entity. The contract shall be procured as a contract for a 
 5619  contractual service pursuant to s. 287.057. 
 5620         637.30094 Regulation of continuing education for licensees, 
 5621  course providers, instructors, school officials, and monitor 
 5622  groups.— 
 5623         (1) Continuing education course providers, instructors, 
 5624  school officials, and monitor groups must be approved by the 
 5625  department before offering continuing education courses pursuant 
 5626  to s. 637.30093. 
 5627         (2) The department shall adopt rules establishing standards 
 5628  for the approval, regulation, and operation of the continuing 
 5629  education programs and for the discipline of licensees, course 
 5630  providers, instructors, school officials, and monitor groups. 
 5631  The standards must be designed to ensure that such course 
 5632  providers, instructors, school officials, and monitor groups 
 5633  have the knowledge, competence, and integrity to fulfill the 
 5634  educational objectives of s. 637.30093. 
 5635         (3) The department shall adopt rules establishing a process 
 5636  by which compliance with the continuing education requirements 
 5637  of s. 637.30093 can be determined, establishing a continuing 
 5638  education compliance period for licensees, and specifying forms 
 5639  necessary to implement such a process. 
 5640         637.30095 Regulation of course providers, instructors, 
 5641  school officials, and monitor groups involved in prelicensure 
 5642  education for insurance agents and other licensees.— 
 5643         (1) Any course provider, instructor, school official, or 
 5644  monitor group must be approved by and registered with the 
 5645  department before offering prelicensure education courses for 
 5646  insurance agents and other licensees. 
 5647         (2) The department shall adopt rules establishing standards 
 5648  for the approval, registration, discipline, or removal from 
 5649  registration of course providers, instructors, school officials, 
 5650  and monitor groups. The standards must be designed to ensure 
 5651  that such persons have the knowledge, competence, and integrity 
 5652  to fulfill the educational objectives of the pre­licensure 
 5653  requirements of this chapter and chapter 648 and to ensure that 
 5654  insurance agents and licensees are competent to engage in the 
 5655  activities authorized under the license. 
 5656         (3) The department shall adopt rules to establish a process 
 5657  for determining compliance with the prelicensure requirements of 
 5658  this chapter and chapter 648. The department shall adopt rules 
 5659  prescribing the forms necessary to administer the prelicensure 
 5660  requirements. 
 5661         637.30096 Examination results; denial, issuance of 
 5662  license.— 
 5663         (1) Within 30 days after the applicant has completed any 
 5664  examination required under s. 637.30042, the department or its 
 5665  designee shall provide a score report and, if the applicant has 
 5666  received a passing grade, the department shall within such 
 5667  period notify the applicant and issue and transmit the license 
 5668  to which such examination related. If the applicant did not make 
 5669  a passing grade on the examination for a particular license, the 
 5670  department or its designee shall within such period provide 
 5671  notice to the applicant to that effect and of the denial of the 
 5672  license. For an applicant who has completed the examination and 
 5673  received a passing grade prior to submitting the license 
 5674  application, the department shall promptly issue the license 
 5675  applied for as soon as the department approves the application. 
 5676         (2) A passing grade on an examination is valid for a period 
 5677  of 1 year. The department may not issue a license to an 
 5678  applicant based upon an examination taken more than 1 year prior 
 5679  to the date an application for a license is filed. 
 5680         637.30097 Form and contents of licenses in general.—Each 
 5681  license issued by the department shall be in such form as the 
 5682  department may designate and must contain the licensee’s name, 
 5683  the licensee’s personal identification number, the date of 
 5684  issuance, and any other information the department deems 
 5685  necessary to fully identify the licensee and the authority being 
 5686  granted. The department may by rule require photographs of 
 5687  applicants as a part of the licensing process. 
 5688         Section 44. Section 626.84201, Florida Statutes, is 
 5689  transferred, renumbered as section 637.3011, Florida Statutes, 
 5690  and amended to read: 
 5691         637.3011 626.84201 Nonresident title insurance agents. 
 5692  Notwithstanding s. 637.3005(2) 626.8414(2), the department, upon 
 5693  application and payment of the fees specified in s. 637.2031 
 5694  624.501, may issue a license as a nonresident title insurance 
 5695  agent to an individual not a resident of this state in the same 
 5696  manner applicable to the licensure of nonresident general lines 
 5697  agents under the provisions of s. 626.741, provided the 
 5698  individual passes the examination for licensure required under 
 5699  s. 637.30042 626.221. Nonresident title insurance agents 
 5700  licensed pursuant to this section must complete the continuing 
 5701  education requirements of s. 637.30093 626.2815 in the same 
 5702  manner as resident title insurance agents. Sections 626.742 and 
 5703  626.743 apply to nonresident title insurance agents. 
 5704         Section 45. Section 626.8421, Florida Statutes, is 
 5705  transferred, renumbered as section 637.3012, Florida Statutes, 
 5706  and amended to read: 
 5707         637.3012 626.8421 Number of appointments permitted or 
 5708  required.—A title agent shall be required to have a separate 
 5709  appointment as to each insurer by which he or she is appointed 
 5710  as agent. As a part of each appointment there shall be a 
 5711  certified statement or affidavit of an appropriate officer or 
 5712  official of the appointing insurer stating that to the best of 
 5713  the insurer’s knowledge and belief the applicant, or its 
 5714  principals in the case of a corporation or other legal entity, 
 5715  has met the requirements of s. 637.3006 626.8417. 
 5716         Section 46. Section 637.30125, Florida Statutes, is created 
 5717  to read: 
 5718         637.30125 Agent in charge.— 
 5719         (1) Each location of a title insurance agency or insurer at 
 5720  which primary title services as defined in s. 637.1004 are 
 5721  performed shall have a separate agent in charge. The failure to 
 5722  designate an agent in charge on a form prescribed by the 
 5723  department, within 10 working days after an agency’s inception 
 5724  or a change of the agent in charge, is a violation of this 
 5725  chapter, punishable as provided in s. 637.3018. 
 5726         (2) The agent in charge shall accept and be responsible for 
 5727  the overall operation and management of a title agency location. 
 5728  The agent in charge’s responsibilities may include, but shall 
 5729  not be limited to, hiring and supervising all individuals within 
 5730  the location, whether the individuals deal with the public in 
 5731  the solicitation or negotiation of title insurance contracts or 
 5732  in the collection or accounting of moneys. 
 5733         (3) An individual must be physically located on a full-time 
 5734  basis in the same agency office in order to be the agent in 
 5735  charge of that agency office, and an individual may be 
 5736  designated as the agent in charge for only one licensed agency 
 5737  at a single physical location. 
 5738         (4) The department may suspend or revoke the license of the 
 5739  owner, operator, and agent in charge if a title insurance agency 
 5740  employs, contracts with, or uses the services of a person who 
 5741  has had a license denied or whose license is currently suspended 
 5742  or revoked. However, a person who has been denied a license for 
 5743  failure to pass a required examination may be employed to 
 5744  perform clerical or administrative functions for which licensure 
 5745  is not required. 
 5746         (5) An agency that has an attorney that is in charge of the 
 5747  agency shall designate that attorney to be in charge of only one 
 5748  location of a single licensed title agency. 
 5749         (6) The department may adopt rules pursuant to ss. 
 5750  120.536(1) and 120.54 to implement this section and interpret 
 5751  the duties and responsibilities of the agent in charge or the 
 5752  attorney in charge of a licensed title insurance agency. 
 5753         Section 47. Section 626.8423, Florida Statutes, is 
 5754  transferred and renumbered as section 637.3013, Florida 
 5755  Statutes. 
 5756         Section 48. Section 637.30133, Florida Statutes, is created 
 5757  to read: 
 5758         637.30133 Consumer protections.—To transact title 
 5759  insurance, title insurance agents shall comply with consumer 
 5760  protection laws, including the following, as applicable: 
 5761         (1) Continuing education requirements for resident and 
 5762  nonresident agents, as required in s. 637.30093. 
 5763         (2) Fingerprinting requirements for resident and 
 5764  nonresident agents, as required under s. 626.171 or s. 
 5765  637.30135. 
 5766         (3) Fingerprinting following a department investigation 
 5767  under s. 637.1019. 
 5768         (4) The submission of credit and character reports, as 
 5769  required by s. 626.171 or s. 626.521. 
 5770         (5) Qualifications for licensure as an agent in s. 626.731, 
 5771  s. 626.741, s. 626.785, s. 626.831, s. 626.835, or s. 6378.2077. 
 5772         (6) Examination requirements in s. 626.741, s. 626.835, 
 5773  637.2077, or s. 637.30042. 
 5774         (7) Required licensure or registration of insurance 
 5775  agencies under s. 626.112. 
 5776         (8) Requirements for licensure of resident and nonresident 
 5777  agents in s. 626.112, s. 626.321, s. 626.731, s. 626.741, s. 
 5778  626.785, s. 626.831, s. 626.835, s. 626.927, or s. 637.2077. 
 5779         (9) Any other licensing requirement, restriction, or 
 5780  prohibition designated a consumer protection by the Chief 
 5781  Financial Officer, but not inconsistent with the requirements of 
 5782  Subtitle C of the Gramm-Leach-Bliley Act, 15 U.S.C.A. ss. 6751 
 5783  et seq. 
 5784         Section 49. Section 637.30135, Florida Statutes, is created 
 5785  to read: 
 5786         637.30135 Fingerprinting requirements.—If there is a change 
 5787  in ownership or control of any entity licensed under this 
 5788  chapter, or if a new partner, officer, or director is employed 
 5789  or appointed, a set of fingerprints of the new owner, partner, 
 5790  officer, or director must be filed with the department or office 
 5791  within 30 days after the change. The acquisition of 10 percent 
 5792  or more of the voting securities of a licensed entity is 
 5793  considered a change of ownership or control. The fingerprints 
 5794  must be taken by a law enforcement agency or other department 
 5795  approved entity and be accompanied by the fingerprint processing 
 5796  fee in s. 637.2031. 
 5797         Section 50. Section 626.8427, Florida Statutes, is 
 5798  transferred and renumbered as section 637.3014, Florida 
 5799  Statutes. 
 5800         Section 51. Sections 637.30142, 637.30143, 637.30144, 
 5801  637.30145, 637.30146, and 637.30147, Florida Statutes, are 
 5802  created to read: 
 5803         637.30142 Payment of fees, taxes for appointment period 
 5804  without appointment.— 
 5805         (1) All initial appointments shall be submitted to the 
 5806  department on a monthly basis no later than 45 days after the 
 5807  date of appointment and shall become effective on the date 
 5808  requested on the appointment form. 
 5809         (2) Upon application and qualification for an initial or 
 5810  renewal appointment and such investigation as the department may 
 5811  make, if it appears to the department that an individual who was 
 5812  formerly licensed or is currently licensed but not properly 
 5813  appointed to represent an insurer or employer and who has been 
 5814  actively engaged or is currently actively engaged as such an 
 5815  appointee, but without being appointed as required, the 
 5816  department, if it finds that such failure to be appointed was an 
 5817  inadvertent error on the part of the insurer or employer so 
 5818  represented, may issue or authorize the issuance of the 
 5819  appointment as applied for but subject to the condition that, 
 5820  before the appointment is issued, all fees and taxes which would 
 5821  have been due had the applicant been so appointed during such 
 5822  current and prior periods, with applicable fees pursuant to s. 
 5823  637.2031 for such current and prior periods of appointment, 
 5824  shall be paid to the department. 
 5825         (3)(a) Failure to notify the department within the required 
 5826  time period shall result in the appointing entity being assessed 
 5827  a delinquent fee of $250 per appointee. Delinquent fees shall be 
 5828  paid by the appointing entity and may not be charged to the 
 5829  appointee. 
 5830         (b) Failure to timely renew an appointment by an appointing 
 5831  entity prior to the expiration date of the appointment shall 
 5832  result in the appointing entity being assessed late filing, 
 5833  continuation, and reinstatement fees as prescribed in s. 
 5834  637.2031. Such fees shall be paid by the appointing entity and 
 5835  may not be charged back to the appointee. 
 5836         637.30143 License or appointment; transferability.—A 
 5837  license or appointment issued under this part is valid only as 
 5838  to the person named and is not transferable to any other person. 
 5839  A licensee or appointee may not allow any other person to 
 5840  transact insurance by using the license or appointment issued to 
 5841  such licensee or appointee. 
 5842         637.30144 Termination of appointment.— 
 5843         (1) Subject to an appointee’s contract rights, an 
 5844  appointing entity may terminate its appointment of any appointee 
 5845  at any time. Except when termination is upon a ground which 
 5846  would subject the appointee to suspension or revocation of his 
 5847  or her license and appointment under s. 637.3017 or s. 637.3018, 
 5848  and except as provided by contract between the appointing entity 
 5849  and the appointee, the appointing entity shall give to the 
 5850  appointee at least 60 days’ advance written notice of its 
 5851  intention to terminate such appointment by delivery of such 
 5852  notice to the appointee in person or by mailing the notice, 
 5853  postage prepaid, addressed to the appointee at his or her last 
 5854  address of record with the appointing entity. Notice so mailed 
 5855  shall be deemed to have been given when deposited in a United 
 5856  States Postal Service mail depository. 
 5857         (2) Within 30 days after terminating the appointment of an 
 5858  appointee, other than as to an appointment terminated by the 
 5859  appointing entity’s failure to continue or renew the 
 5860  appointment, the appointing entity shall file with the 
 5861  department a written notice of the termination, together with a 
 5862  statement that the appointing entity has given the appointee 
 5863  notice of the termination as provided in subsection (1) and 
 5864  shall file with the department the reasons and facts involved in 
 5865  such termination as required under s. 637.30145. 
 5866         (3) Upon termination of the appointment of an appointee by 
 5867  failure to renew or continue the appointment, the appointing 
 5868  entity shall: 
 5869         (a) File with the department the information required under 
 5870  s. 637.30145. 
 5871         (b) Subject to the exceptions provided under subsection 
 5872  (1), continue the outstanding contracts transacted by an agent 
 5873  until the expiration date or anniversary date when the policy is 
 5874  a continuous policy with no expiration date. This paragraph 
 5875  shall not be construed to prohibit the cancellation of such 
 5876  contracts when not otherwise prohibited by law. 
 5877         (4) An appointee may terminate the appointment at any time 
 5878  by giving written or electronic notice of such termination to 
 5879  the appointing entity, department, or person designated by the 
 5880  department to administer the appointment process. The department 
 5881  shall immediately terminate the appointment and notify the 
 5882  appointing entity of such termination. Such termination shall be 
 5883  subject to the appointee’s contract rights, if any. 
 5884         (5) Upon receiving a notice of termination, the department 
 5885  or person designated by the department to administer the 
 5886  appointment process shall terminate the appointment. 
 5887         637.30145 Reasons for termination.— 
 5888         (1) Any insurer terminating the appointment of an agent or 
 5889  managing general agent, whether such termination is by direct 
 5890  action of the appointing insurer, agent, or employer or by 
 5891  failure to renew or continue the appointment, shall file with 
 5892  the department or office a statement of the reasons, if any, for 
 5893  such termination and the facts relative to such termination. In 
 5894  the case of a termination of the appointment of an agent, such 
 5895  information may be filed by the insurer or by the general agent 
 5896  of the insurer. 
 5897         (2) In the case of terminations by failure to renew or 
 5898  continue the appointment, the information required under 
 5899  subsection (1) shall be filed with the department or office 
 5900  within 30 days after the date notice of intention not to renew 
 5901  or continue was filed with the department or office as required 
 5902  by this chapter. In all other cases, the information required 
 5903  under subsection (1) shall be filed with the department or 
 5904  office within 10 days after notice of the termination was filed 
 5905  with the department or office. 
 5906         637.30146 Delinquent agencies; notice of trusteeship.—If 
 5907  any agent or agency becomes delinquent for 90 days in payment of 
 5908  accounts owing to the insurer or insurers represented by the 
 5909  agent or agency and a trusteeship or similar arrangement for the 
 5910  administration of the affairs of the agent or agency is 
 5911  instituted, the insurer or insurers involved in such trusteeship 
 5912  or arrangement shall immediately give written notice of such 
 5913  trusteeship or arrangement to the department. The notice shall 
 5914  state the name and address of each such agent, the circumstances 
 5915  and estimated amount of delinquency, and such other information 
 5916  as the insurer deems pertinent or as the department may 
 5917  reasonably require. 
 5918         637.30147 Procedure for refusal, suspension, or revocation 
 5919  of license.—If any licensee is convicted of a violation of this 
 5920  code or a felony, the licenses and appointments of such person 
 5921  shall be immediately revoked by the department. The licensee may 
 5922  subsequently request a hearing pursuant to ss. 120.569 and 
 5923  120.57, and the department shall expedite any such requested 
 5924  hearing. The sole issue at such hearing shall be whether the 
 5925  revocation should be rescinded because such person was not in 
 5926  fact convicted of a violation of this code or a felony. 
 5927         Section 52. Section 626.843, Florida Statutes, is 
 5928  transferred, renumbered as section 637.3015, Florida Statutes, 
 5929  and amended to read: 
 5930         637.3015 626.843 Renewal, continuation, reinstatement, 
 5931  termination of title insurance agent’s appointment.— 
 5932         (1) The appointment of a title insurance agent shall 
 5933  continue in force until suspended, revoked, or otherwise 
 5934  terminated, but subject to a renewed request filed by the 
 5935  insurer every 24 months after the original issue date of the 
 5936  appointment, accompanied by payment of the renewal appointment 
 5937  fee and taxes as prescribed in s. 637.2031 624.501. 
 5938         (2)(a) Renewal of an appointment that is received by the 
 5939  department or person designated by the department to administer 
 5940  the appointment process prior to the expiration of an 
 5941  appointment in the licensee’s birth month or license issue date, 
 5942  whichever applies, may be renewed by the department without 
 5943  penalty and shall be effective as of the first day of the month 
 5944  succeeding the month in which the appointment would have 
 5945  expired. 
 5946         (b) Renewal of an appointment that is received by the 
 5947  department or person designated by the department to administer 
 5948  the appointment process after the renewal date may be accepted 
 5949  and effectuated by the department in its discretion if the 
 5950  appointment, late filing, continuation, and reinstatement fee 
 5951  accompanies the renewal request pursuant to s. 637.2031. Late 
 5952  filing fees shall be paid by the appointing entity and may not 
 5953  be charged to the appointee Title insurance agent appointments 
 5954  shall be renewed pursuant to s. 626.381 for insurance 
 5955  representatives in general. 
 5956         (3) The appointment issued shall remain in effect for so 
 5957  long as the appointment represented thereby continues in force 
 5958  as provided in this section. 
 5959         Section 53. Section 626.8433, Florida Statutes, is 
 5960  transferred and renumbered as section 637.3016, Florida 
 5961  Statutes. 
 5962         Section 54. Section 626.8437, Florida Statutes, is 
 5963  transferred, renumbered as section 637.3017, Florida Statutes, 
 5964  and amended to read: 
 5965         637.3017 626.8437 Grounds for denial, suspension, 
 5966  revocation, or refusal to renew license or appointment.— 
 5967         (1) The department shall deny, suspend, revoke, or refuse 
 5968  to renew or continue the license or appointment of any title 
 5969  insurance agent or agency, and it shall suspend or revoke the 
 5970  eligibility to hold a license or appointment of such person, if 
 5971  it finds that as to the applicant, licensee, appointee, or any 
 5972  principal thereof, any one or more of the following grounds 
 5973  exist: 
 5974         (a)(1) Lack of one or more of the qualifications for the 
 5975  license or appointment as specified in ss. 637.3006, 637.3007, 
 5976  and 637.3008 626.8417, 626.8418, and 626.8419. 
 5977         (b)(2) Material misstatement, misrepresentation, or fraud 
 5978  in obtaining, or attempting to obtain, the license or 
 5979  appointment. 
 5980         (c)(3) Willful misrepresentation of any title insurance 
 5981  policy, guarantee of title, binder, or commitment, or willful 
 5982  deception with regard to any such policy, guarantee, binder, or 
 5983  commitment, done either in person or by any form of 
 5984  dissemination of information or advertising. 
 5985         (d)(4) Demonstrated lack of fitness or trustworthiness to 
 5986  represent a title insurer in the issuance of its commitments, 
 5987  binders, policies of title insurance, or guarantees of title. 
 5988         (e)(5) Demonstrated lack of reasonably adequate knowledge 
 5989  and technical competence to engage in the transactions 
 5990  authorized by the license or appointment. 
 5991         (f)(6) Fraudulent or dishonest practices in the conduct of 
 5992  business under the license or appointment. 
 5993         (g)(7) Misappropriation, conversion, or unlawful 
 5994  withholding of moneys belonging to title insurers or insureds or 
 5995  others and received in conduct of business under the license or 
 5996  appointment. 
 5997         (h)(8) Unlawful rebating, or attempting to unlawfully 
 5998  rebate, or unlawfully dividing, or offering to unlawfully 
 5999  divide, title insurance premiums, fees, or charges with another, 
 6000  as prohibited by s. 637.1033(7)(b). 626.9541(1)(h)3. 
 6001         (i)(9) Willful failure to comply with, or willful violation 
 6002  of, any proper order or rule of the department or willful 
 6003  violation of any provision of this act. 
 6004         (j)(10) The licensee if an individual, or the partners if a 
 6005  partnership, or owner if a sole proprietorship, or the officers 
 6006  if a corporation, having been found guilty of or having pleaded 
 6007  guilty or nolo contendere to a felony or a crime punishable by 
 6008  imprisonment of 1 year or more under the law of the United 
 6009  States or of any state or under the law of any other country 
 6010  which involves moral turpitude, without regard to whether a 
 6011  judgment of conviction has been entered by the court having 
 6012  jurisdiction of such cases. 
 6013         (k) Failure to timely submit data as required by the 
 6014  department. 
 6015         (2) Upon receipt of an information or indictment, the 
 6016  department shall immediately temporarily suspend any license or 
 6017  appointment issued under this chapter when the licensee has been 
 6018  convicted of an insurance or financial-related felony or a crime 
 6019  involving moral turpitude or a crime punishable by imprisonment 
 6020  of 1 year or more under the law of any state, territory, or 
 6021  country. Such suspension shall continue if the licensee has been 
 6022  found guilty of, or has pleaded guilty or no contest to, the 
 6023  crime, whether or not a judgment or conviction has been entered, 
 6024  during a pending appeal. A person may not affect any additional 
 6025  insurance after suspension of his or her license or appointment. 
 6026  However, he or she may service the policies effected prior to 
 6027  such suspension. 
 6028         Section 55. Section 626.844, Florida Statutes, is 
 6029  transferred, renumbered as section 637.3018, Florida Statutes, 
 6030  and amended to read: 
 6031         637.3018 626.844 Grounds for discretionary refusal, 
 6032  suspension, or revocation of license or appointment.—The 
 6033  department may, in its discretion, deny, suspend, revoke, or 
 6034  refuse to renew or continue the license or appointment of any 
 6035  title insurance agent or agency, and it may suspend or revoke 
 6036  the eligibility to hold a license or appointment of any such 
 6037  title insurance agent or agency if it finds that as to the 
 6038  applicant or licensee or appointee, or any principal thereof, 
 6039  any one or more of the following grounds exist under 
 6040  circumstances for which such denial, suspension, revocation, or 
 6041  refusal is not mandatory under s. 637.3017 626.8437: 
 6042         (1) Any cause for which issuance of the license or 
 6043  appointment could have been refused had it then existed and been 
 6044  known to the department. 
 6045         (2) Violation of any provision of this act in the course of 
 6046  dealing under the license or appointment. 
 6047         (3) Violation of any lawful order or rule of the 
 6048  department. 
 6049         (4) Failure or refusal upon demand to pay over to any title 
 6050  insurer that the appointee represents or has represented any 
 6051  money coming into the hands of such appointee and belonging to 
 6052  the title insurer. 
 6053         (5) Engaging in unfair methods of competition or in unfair 
 6054  or deceptive acts or practices in the conduct of business, as 
 6055  prohibited under part IX of this chapter, or having otherwise 
 6056  shown himself or herself to be a source of injury or loss to the 
 6057  public or to be detrimental to the public interest. 
 6058         (6) The licensee if an individual, or the partners if a 
 6059  partnership, or owner if a sole proprietorship, or the officers 
 6060  if a corporation, having been found guilty of or having pleaded 
 6061  guilty or nolo contendere to a felony or a crime punishable by 
 6062  imprisonment of 1 year or more under the law of the United 
 6063  States or of any state or under the law of any other country, 
 6064  without regard to whether a judgment of conviction has been 
 6065  entered by the court having jurisdiction of such cases. 
 6066         (7) Failure or refusal upon demand by any title insurer 
 6067  that the appointee represents or has represented to pay any 
 6068  money coming into the hands of such appointee and belonging to 
 6069  the title insurer. 
 6070         (8) Failure to maintain the insurer’s portion of the 
 6071  premium in escrow. 
 6072         (9) Fraud, misrepresentation, or deceit in any title 
 6073  insurance transaction. 
 6074         (10) Failure to comply with s. 637.3029. 
 6075         (11) Failure to account or deliver to any person any 
 6076  property that has come into the agency’s hands and that is not 
 6077  the agency’s property or that the agency is not in law or equity 
 6078  entitled to retain, under the circumstances and at the time that 
 6079  has been agreed upon or is required by law or, in the absence of 
 6080  a fixed time, upon demand of the person entitled to such 
 6081  accounting and delivery absent a good faith dispute, lack of 
 6082  mutual instructions, or doubt about entitlement thereto. 
 6083         (12) Failure to disburse escrow funds in accordance with 
 6084  agreements signed by the seller and the buyer absent a good 
 6085  faith dispute or lack of mutual instructions from the buyer and 
 6086  seller about entitlement thereto. 
 6087         (13) Acting as or holding himself or herself out to be a 
 6088  title insurance agent or title insurance agency without a 
 6089  current, active license issued by the Department of Financial 
 6090  Services. 
 6091         (14) Providing a closing protection letter, title insurance 
 6092  commitment, or title insurance policy for an insurer that the 
 6093  licensee is not actively appointed to represent. 
 6094         (15) Failure to maintain, preserve, and keep available for 
 6095  examination all books, accounts, or other documents required by 
 6096  ss. 637.30044-637.3015 and s. 637.3029 and the rules of the 
 6097  department. 
 6098         (16) Failure to allow an investigation or examination of 
 6099  books and records by the department. 
 6100         (17) Adding any amount to the charges of other providers of 
 6101  service in a real estate transaction without adding value to the 
 6102  services provided. 
 6103         (18) Failure to timely deliver the property deed, mortgage, 
 6104  and other documents related to a closing transaction with the 
 6105  appropriate recording authority. 
 6106         (19) Failure to timely deliver the escrow funds to the 
 6107  appropriate entity or to the state if the owner is unable to be 
 6108  located pursuant to chapter 717. 
 6109         Section 56. Section 626.8443, Florida Statutes, is 
 6110  transferred, renumbered as section 637.3019, Florida Statutes, 
 6111  and subsection (4) of that section is amended to read: 
 6112         637.3019 626.8443 Duration of suspension or revocation.— 
 6113         (4) During the period of suspension or after revocation of 
 6114  the license and appointment, the former licensee shall not 
 6115  engage in or attempt to profess to engage in any transaction or 
 6116  business for which a license or appointment is required under 
 6117  this chapter code or directly or indirectly own, control, or be 
 6118  employed in any manner by any title insurance agent or title 
 6119  insurance agency or adjuster or adjusting firm. 
 6120         Section 57. Section 626.8447, Florida Statutes, is 
 6121  transferred and renumbered as section 637.3021, Florida 
 6122  Statutes. 
 6123         Section 58. Section 626.845, Florida Statutes, is 
 6124  transferred and renumbered as section 637.3022, Florida 
 6125  Statutes. 
 6126         Section 59. Section 626.8453, Florida Statutes, is 
 6127  transferred, renumbered as section 637.3023, Florida Statutes, 
 6128  and amended to read: 
 6129         637.3023 626.8453 Penalty for violation.—A person who 
 6130  knowingly makes a false or otherwise fraudulent application for 
 6131  a license or appointment under this act, or who knowingly 
 6132  violates any provision of s. 637.2032 624.5015, ss. 637.3006 
 6133  637.3029 626.8417-626.847, or s. 637.2076 627.791, in addition 
 6134  to any applicable denial, suspension, revocation, or refusal to 
 6135  renew or continue any license or appointment, commits a 
 6136  misdemeanor of the second degree, punishable as provided in s. 
 6137  775.082 or s. 775.083. Each instance of violation shall be 
 6138  considered a separate offense. 
 6139         Section 60. Section 626.8457, Florida Statutes, is 
 6140  transferred and renumbered as section 637.3024, Florida 
 6141  Statutes. 
 6142         Section 61. Section 626.846, Florida Statutes, is 
 6143  transferred, renumbered as section 637.3025, Florida Statutes, 
 6144  and subsection (1) of that section is amended to read: 
 6145         637.3025 626.846 Probation.— 
 6146         (1) If the department finds that one or more grounds exist 
 6147  for the suspension of, revocation of, or refusal to renew or 
 6148  continue any license or appointment issued under this act, the 
 6149  department may, except when an administrative fine is not 
 6150  permissible under s. 637.3024 626.8457 or when such suspension, 
 6151  revocation, or refusal is mandatory, in lieu of such suspension, 
 6152  revocation, or refusal, or in connection with any administrative 
 6153  monetary penalty imposed under s. 637.3024 626.8457, place the 
 6154  offending licensee or appointee on probation for a period not to 
 6155  exceed 2 years, as specified by the department in its order. 
 6156         Section 62. Section 626.8463, Florida Statutes, is 
 6157  transferred, renumbered as section 637.3026, Florida Statutes, 
 6158  and subsection (1) of that section is amended to read: 
 6159         637.3026 626.8463 Witnesses and evidence.— 
 6160         (1) As to the subject of any examination, investigation, or 
 6161  hearing being conducted by him or her under s. 637.2032, s. 
 6162  637.2076, or 624.5015, ss. 637.3006-637.3029 626.8417-626.847, 
 6163  or s. 627.791, an examiner appointed by the department or office 
 6164  may administer oaths, examine and cross-examine witnesses, and 
 6165  receive oral and documentary evidence and shall have the power 
 6166  to subpoena witnesses, compel their attendance and testimony, 
 6167  and require by subpoena the production of books, papers, 
 6168  records, files, correspondence, documents, or other evidence 
 6169  which the examiner deems relevant to the inquiry. 
 6170         Section 63. Section 626.8467, Florida Statutes, is 
 6171  transferred, renumbered as section 637.3027, Florida Statutes, 
 6172  and amended to read: 
 6173         637.3027 626.8467 Testimony compelled; immunity from 
 6174  prosecution.— 
 6175         (1) If a person asks to be excused from attending or 
 6176  testifying or from producing any books, papers, records, 
 6177  contracts, documents, or other evidence in connection with any 
 6178  examination, hearing, or investigation being conducted under s. 
 6179  637.2032, s. 637.2076, or 624.5015, ss. 637.3006-637.3029 
 6180  626.8417-626.847, or s. 627.791 by the department or office or 
 6181  its examiner on the ground that the testimony or evidence 
 6182  required of the person may tend to incriminate him or her or 
 6183  subject him or her to a penalty or forfeiture and 
 6184  notwithstanding is directed to give such testimony or produce 
 6185  such evidence, the person must, if so directed by the Department 
 6186  of Financial Services and the Department of Legal Affairs or by 
 6187  the department office and the Department of Legal Affairs, 
 6188  nonetheless comply with such direction, but he or she shall not 
 6189  thereafter be prosecuted or subjected to any penalty or 
 6190  forfeiture for or on account of any transaction, matter, or 
 6191  thing concerning which he or she may have so testified or 
 6192  produced evidence, and no testimony so given or evidence 
 6193  produced shall be received against the person upon any criminal 
 6194  action, investigation, or proceeding. However, a person so 
 6195  testifying shall not be exempt from prosecution or punishment 
 6196  for any perjury committed by him or her in such testimony, and 
 6197  the testimony or evidence so given or produced shall be 
 6198  admissible against him or her upon any criminal action, 
 6199  investigation, or proceeding concerning such perjury; and such 
 6200  person shall not be exempt from the refusal, suspension, or 
 6201  revocation of any license or appointment, permission, or 
 6202  authority conferred or to be conferred pursuant to s. 637.2032, 
 6203  s. 637.2076, or 624.5015, ss. 637.3006-637.3029 626.8417 
 6204  626.847, or s. 627.791. 
 6205         (2) Any such person may execute, acknowledge, and file with 
 6206  the department of Financial Services or the office, as 
 6207  appropriate, a statement expressly waiving such immunity or 
 6208  privilege with respect to any transaction, matter, or thing 
 6209  specified in the statement, and thereupon the testimony of such 
 6210  person or such evidence in relation to such transaction, matter, 
 6211  or thing may be received or produced before any judge or 
 6212  justice, court, tribunal, or grand jury or otherwise and, if so 
 6213  received or produced, such person shall not be entitled to any 
 6214  immunity or privilege on account of any testimony he or she may 
 6215  so give or evidence so produced. 
 6216         Section 64. Section 626.847, Florida Statutes, is 
 6217  transferred, renumbered as section 637.3028, Florida Statutes, 
 6218  and amended to read: 
 6219         637.3028 626.847 Penalty for refusal to testify.—A person 
 6220  who refuses or fails, without lawful cause, to testify relative 
 6221  to the affairs of any title insurer or other person when 
 6222  subpoenaed under s. 637.3026 626.8463 and requested by the 
 6223  department or office to so testify is guilty of a misdemeanor of 
 6224  the second degree and, upon conviction, is punishable as 
 6225  provided in s. 775.082 or s. 775.083. 
 6226         Section 65. Section 626.8473, Florida Statutes, is 
 6227  transferred, renumbered as section 637.3029, Florida Statutes, 
 6228  and subsections (1) and (6) of that section are amended to read: 
 6229         637.3029 626.8473 Escrow; trust fund.— 
 6230         (1) A title insurance agent may engage in business as an 
 6231  escrow agent as to funds received from others to be subsequently 
 6232  disbursed by the title insurance agent in connection with real 
 6233  estate closing transactions involving the issuance of title 
 6234  insurance binders, commitments, policies of title insurance, or 
 6235  guarantees of title, provided that a licensed and appointed 
 6236  title insurance agent complies with the requirements of s. 
 6237  637.3006 626.8417, including such requirements added after the 
 6238  initial licensure of the agent. 
 6239         (6) In the event that the department adopts promulgates 
 6240  rules necessary to implement the requirements of this section 
 6241  pursuant to s. 637.1007 624.308, the department shall consider 
 6242  reasonable standards necessary for the protection of funds held 
 6243  in trust, including, but not limited to, standards for 
 6244  accounting of funds, standards for receipt and disbursement of 
 6245  funds, and protection for the person or persons to whom the 
 6246  funds are to be disbursed. 
 6247         Section 66. Section 637.30295, Florida Statutes, is created 
 6248  to read: 
 6249         637.30295 Collection of title insurance information.—Each 
 6250  title insurance agency licensed to do business in this state and 
 6251  each insurer doing direct, retail, or affiliated business in 
 6252  this state shall maintain and submit information, including 
 6253  revenue, loss, and expense data, as the department determines to 
 6254  be necessary to assist in the analysis of title insurance 
 6255  premium rates, title search costs, and the condition of the 
 6256  title insurance industry in this state. This information must be 
 6257  transmitted to the department no later than March 31 of each 
 6258  year following the reporting year. The department shall adopt 
 6259  rules to assist in the collection and analysis of the data from 
 6260  the title insurance industry. 
 6261         Section 67. Paragraphs (a), (e), and (f) of subsection (1) 
 6262  of section 624.5105, Florida Statutes, are amended to read: 
 6263         624.5105 Community contribution tax credit; authorization; 
 6264  limitations; eligibility and application requirements; 
 6265  administration; definitions; expiration.— 
 6266         (1) AUTHORIZATION TO GRANT TAX CREDITS; LIMITATIONS.— 
 6267         (a) There shall be allowed a credit of 50 percent of a 
 6268  community contribution against any tax due for a calendar year 
 6269  under s. 624.509, or s. 624.510, or s. 637.2039. 
 6270         (e) If the credit granted pursuant to this section is not 
 6271  fully used in any one year because of insufficient tax liability 
 6272  on the part of the insurer, the unused amount may be carried 
 6273  forward for a period not to exceed 5 years. The carryover credit 
 6274  may be used in a subsequent year when the tax imposed by s. 
 6275  624.509, or s. 624.510, or 637.2039 for such year exceeds the 
 6276  credit under this section for such year. 
 6277         (f) An insurer that claims a credit against premium-tax 
 6278  liability earned by making a community contribution under this 
 6279  section need not pay any additional retaliatory tax levied under 
 6280  s. 624.5091 or s. 637.2041 as a result of claiming such a 
 6281  credit. Section 624.5091 or s. 637.2041 does not limit such a 
 6282  credit in any manner. 
 6283         Section 68. Subsection (1) of section 624.5107, Florida 
 6284  Statutes, is amended to read: 
 6285         624.5107 Child care tax credits.— 
 6286         (1) If the credit granted under this section is not fully 
 6287  used in any one year because of insufficient tax liability on 
 6288  the part of the insurer, the unused amount may be carried 
 6289  forward for a period not to exceed 5 years. The carryover credit 
 6290  may be used in a subsequent year when the tax imposed by s. 
 6291  624.509, or s. 624.510, or s. 637.2039 for that year exceeds the 
 6292  credit for which the insurer is eligible in that year under this 
 6293  section. 
 6294         Section 69. Transfers; rules; powers; regulatory authority; 
 6295  orders.— 
 6296         (1) Effective July 1, 2010, the rules of the Financial 
 6297  Services Commission and the Office of Insurance Regulation with 
 6298  respect to the regulation of title insurance shall become the 
 6299  rules of the Department of Financial Services and shall remain 
 6300  in effect until specifically amended or repealed in the manner 
 6301  provided by law. 
 6302         (2)(a) All of the statutory powers, duties and functions, 
 6303  records, personnel, property, and unexpended balances of 
 6304  appropriations, allocations, or other funds for the 
 6305  administration of chapter 624, Florida Statutes, related to 
 6306  title insurance, shall be transferred by a type two transfer, as 
 6307  defined in s. 20.06(2), Florida Statutes, from the Financial 
 6308  Services Commission and the Office of Insurance Regulation to 
 6309  the Department of Financial Services. 
 6310         (b) All of the statutory powers, duties and functions, 
 6311  records, personnel, property, and unexpended balances of 
 6312  appropriations, allocations, or other funds for the 
 6313  administration of chapter 626, Florida Statutes, related to 
 6314  title insurance, shall be transferred by a type two transfer, as 
 6315  defined in s. 20.06(2), Florida Statutes, from the Financial 
 6316  Services Commission and the Office of Insurance Regulation to 
 6317  the Department of Financial Services. 
 6318         (c) All of the statutory powers, duties and functions, 
 6319  records, personnel, property, and unexpended balances of 
 6320  appropriations, allocations, or other funds for the 
 6321  administration of chapter 627, Florida Statutes, related to 
 6322  title insurance, shall be transferred by a type two transfer, as 
 6323  defined in s. 20.06(2), Florida Statutes, from the Financial 
 6324  Services Commission and the Office of Insurance Regulation to 
 6325  the Department of Financial Services. 
 6326         (3)(a) The transfer of regulatory authority under chapter 
 6327  624, Florida Statutes, provided by this act shall not affect the 
 6328  validity of any judicial or administrative action relating to 
 6329  title insurance pending as of 11:59 p.m. on the day before the 
 6330  effective date of this act, to which action the Financial 
 6331  Services Commission or the Office of Insurance Regulation are at 
 6332  that time parties, and the Department of Financial Services 
 6333  shall be substituted as a party in interest in any such action. 
 6334         (b) The transfer of regulatory authority under chapter 626, 
 6335  Florida Statutes, provided by this act shall not affect the 
 6336  validity of any judicial or administrative action relating to 
 6337  title insurance pending as of 11:59 p.m. on the day before the 
 6338  effective date of this act, to which action the Financial 
 6339  Services Commission or the Office of Insurance Regulation are at 
 6340  that time parties, and the Department of Financial Services 
 6341  shall be substituted as a party in interest in any such action. 
 6342         (c) The transfer of regulatory authority under chapter 627, 
 6343  Florida Statutes, provided by this act shall not affect the 
 6344  validity of any judicial or administrative action relating to 
 6345  title insurance pending as of 11:59 p.m. on the day before the 
 6346  effective date of this act, to which action the Financial 
 6347  Services Commission or the Office of Insurance Regulation are at 
 6348  that time parties, and the Department of Financial Services 
 6349  shall be substituted as a party in interest in any such action. 
 6350         (4)(a) All lawful orders issued by the Financial Services 
 6351  Commission or the Office of Insurance Regulation implementing or 
 6352  enforcing or otherwise in regard to any provision of chapter 
 6353  624, Florida Statutes, relating to title insurance, issued prior 
 6354  to the effective date of this act, shall remain in effect and be 
 6355  enforceable after the effective date of this act, unless 
 6356  thereafter modified in accordance with law. 
 6357         (b) All lawful orders issued by the Financial Services 
 6358  Commission or the Office of Insurance Regulation, implementing 
 6359  or enforcing or otherwise in regard to any provision of chapter 
 6360  626, Florida Statutes, relating to title insurance, issued prior 
 6361  to the effective date of this act, shall remain in effect and be 
 6362  enforceable after the effective date of this act, unless 
 6363  thereafter modified in accordance with law. 
 6364         (c) All lawful orders issued by the Financial Services 
 6365  Commission or the Office of Insurance Regulation, implementing 
 6366  or enforcing or otherwise in regard to any provision of chapter 
 6367  627, Florida Statutes, relating to title insurance, issued prior 
 6368  to the effective date of this act, shall remain in effect and be 
 6369  enforceable after the effective date of this act, unless 
 6370  thereafter modified in accordance with law. 
 6371         Section 70. The Legislature recognizes that there is a need 
 6372  to conform the Florida Statutes to the policy decisions 
 6373  reflected in the provisions of this act. The Division of 
 6374  Statutory Revision is directed to provide the relevant 
 6375  substantive committees of the Senate and the House of 
 6376  Representatives with assistance, upon request, to enable such 
 6377  committees to prepare draft legislation to conform the Florida 
 6378  Statutes to the provisions of this act. 
 6379         Section 71. Section 689.263, Florida Statutes, is created 
 6380  to read: 
 6381         689.263 Sale of residential property; settlement statement 
 6382  requirements.—A title insurance agent or title insurance agency 
 6383  may not disburse funds pursuant to a completed purchase and sale 
 6384  of residential real property without requiring a statement of 
 6385  settlement costs meeting the following requirements: 
 6386         (1) The settlement statement must be executed by the buyer 
 6387  and the seller. 
 6388         (2) If a title insurance premium is to be disbursed, the 
 6389  title insurer and the title insurance agent or title insurance 
 6390  agency, if any, must be disclosed. 
 6391         (3) A copy of the executed settlement statement must be 
 6392  delivered to the buyer and the seller. 
 6393         Section 72. Section 717.1121, Florida Statutes, is created 
 6394  to read: 
 6395         717.1121 Payments from escrow related to real estate 
 6396  transactions.—All funds held as part of a real estate 
 6397  transaction, including any outstanding payments for amounts to 
 6398  be paid as listed on the settlement statement form by any title 
 6399  insurance agency, title insurer, savings and loan association, 
 6400  bank, trust company, other financial institution, attorney firm, 
 6401  real estate broker, or similar institution, are considered 
 6402  unclaimed if the owner of those funds has not claimed the money 
 6403  within 2 years after the closing performed under the real estate 
 6404  transaction. 
 6405         Section 73. Subsection (1) and paragraph (d) of subsection 
 6406  (2) of section 877.101, Florida Statutes, are amended to read: 
 6407         877.101 Escrow business by unauthorized persons; use of 
 6408  name.— 
 6409         (1) Except as provided in subsection (2), in connection 
 6410  with the purchase and sale of real property, a person may not: 
 6411         (a) Transact business under any name or title that contains 
 6412  the word “escrow” or words of similar import; or 
 6413         (b)1. Use any name, word, sign, symbol, or device in any 
 6414  context or in any manner; or 
 6415         2. Circulate or use any letterhead, billhead, circular, 
 6416  paper, or writing of any kind or otherwise advertise or 
 6417  represent in any manner 
 6418   
 6419  that indicates or reasonably implies that the business being 
 6420  conducted or advertised is the kind or character of business 
 6421  transacted that is regulated by this state as an escrow agent; 
 6422  or 
 6423         (c) Engage in business as an escrow agent as to funds 
 6424  received from others to be subsequently disbursed in connection 
 6425  with real estate closing transactions. 
 6426         (2) This section does not apply to: 
 6427         (d) A title insurance agent who is licensed pursuant to s. 
 6428  637.3006 626.8417, a title insurance agency that is licensed 
 6429  pursuant to s. 637.3007 626.8418, or a title insurer who is 
 6430  authorized to transact business in this state pursuant to s. 
 6431  637.2001 624.401. 
 6432         Section 74. Section 624.5015, Florida Statutes, is amended 
 6433  to read: 
 6434         624.5015 Advance collection of fees and taxes; title 
 6435  insurers not to pay without reimbursement.— 
 6436         (1) The department or the office shall collect in advance 
 6437  from the applicant or licensee fees and taxes as provided in s. 
 6438  624.501. 
 6439         (2) A title insurer shall not pay directly or indirectly 
 6440  without reimbursement from a title insurance agent any 
 6441  appointment fee required under this section. The failure of a 
 6442  title insurance agent to make reimbursement is not a ground for 
 6443  cancellation of the title insurance agent’s appointment by the 
 6444  title insurer. 
 6445         Section 75. Subsections (7), (8), and (9) of section 
 6446  626.241, Florida Statutes, are amended to read: 
 6447         626.241 Scope of examination.— 
 6448         (7) Examinations given applicants for licensure as title 
 6449  agents must cover title insurance, abstracting, title searches, 
 6450  examination of title, closing procedures, and escrow handling. 
 6451         (7)(8) An examination for licensure as a personal lines 
 6452  agent shall consist of 100 questions and shall be limited in 
 6453  scope to the kinds of business transacted under such license. 
 6454         (8)(9) This section applies to any person who submits an 
 6455  application for license and to any person who submits an 
 6456  application for examination prior to filing an application for 
 6457  license. 
 6458         Section 76. Subsection (5) of section 626.331, Florida 
 6459  Statutes, is amended to read: 
 6460         626.331 Number of appointments permitted or required.— 
 6461         (5) A title agent or title agency license must be limited 
 6462  to selling title insurance only for the appointing title insurer 
 6463  or insurers. 
 6464         Section 77. Paragraph (a) of subsection (5) of section 
 6465  197.502, Florida Statutes, is amended to read: 
 6466         197.502 Application for obtaining tax deed by holder of tax 
 6467  sale certificate; fees.— 
 6468         (5)(a) The tax collector may contract with a title company 
 6469  or an abstract company at a reasonable fee to provide the 
 6470  minimum information required in subsection (4), consistent with 
 6471  rules adopted by the department. If additional information is 
 6472  required, the tax collector must make a written request to the 
 6473  title or abstract company stating the additional requirements. 
 6474  The tax collector may select any title or abstract company, 
 6475  regardless of its location, as long as the fee is reasonable, 
 6476  the minimum information is submitted, and the title or abstract 
 6477  company is authorized to do business in this state. The tax 
 6478  collector may advertise and accept bids for the title or 
 6479  abstract company if he or she considers it appropriate to do so. 
 6480         1. The ownership and encumbrance report must be printed or 
 6481  typed on stationery or other paper showing a letterhead of the 
 6482  person, firm, or company that makes the search, and the 
 6483  signature of the person who makes the search or of an officer of 
 6484  the firm must be attached. The tax collector is not liable for 
 6485  payment to the firm unless these requirements are met. 
 6486         2. The tax collector may not accept or pay for any title 
 6487  search or abstract if no financial responsibility is assumed for 
 6488  the search. However, reasonable restrictions as to the liability 
 6489  or responsibility of the title or abstract company are 
 6490  acceptable. Notwithstanding s. 637.2071(3) 627.7843(3), the tax 
 6491  collector may contract for higher maximum liability limits. 
 6492         3. In order to establish uniform prices for ownership and 
 6493  encumbrance reports within the county, the tax collector shall 
 6494  ensure that the contract for ownership and encumbrance reports 
 6495  include all requests for title searches or abstracts for a given 
 6496  period of time. 
 6497         Section 78. Paragraph (d) of subsection (27) of section 
 6498  624.501, Florida Statutes, is amended to read: 
 6499         624.501 Filing, license, appointment, and miscellaneous 
 6500  fees.—The department, commission, or office, as appropriate, 
 6501  shall collect in advance, and persons so served shall pay to it 
 6502  in advance, fees, licenses, and miscellaneous charges as 
 6503  follows: 
 6504         (27) Title insurance agents: 
 6505         (d) Additional appointment continuation fee as prescribed 
 6506  by s. 637.3015 626.843.....................................$5.00 
 6507         Section 79. Section 624.604, Florida Statutes, is amended 
 6508  to read: 
 6509         624.604 “Property insurance” defined.—“Property insurance” 
 6510  is insurance on real or personal property of every kind and of 
 6511  every interest therein, whether on land, water, or in the air, 
 6512  against loss or damage from any and all hazard or cause, and 
 6513  against loss consequential upon such loss or damage, other than 
 6514  noncontractual legal liability for any such loss or damage. 
 6515  Property insurance may contain a provision for accidental death 
 6516  or injury as part of a multiple peril homeowner’s policy. Such 
 6517  insurance, which is incidental to the property insurance, is not 
 6518  subject to the provisions of this code applicable to life or 
 6519  health insurance. Property insurance does not include title 
 6520  insurance, as defined in s. 637.1004 624.608. 
 6521         Section 80. Paragraph (r) of subsection (1) of section 
 6522  624.605, Florida Statutes, is amended to read: 
 6523         624.605 “Casualty insurance” defined.— 
 6524         (1) “Casualty insurance” includes: 
 6525         (r) Insurance for debt cancellation products.—Insurance 
 6526  that a creditor may purchase against the risk of financial loss 
 6527  from the use of debt cancellation products with consumer loans 
 6528  or leases or retail installment contracts. Insurance for debt 
 6529  cancellation products is not liability insurance but shall be 
 6530  considered credit insurance only for the purposes of s. 
 6531  631.52(4). 
 6532         1. For purposes of this paragraph, the term “debt 
 6533  cancellation products” means loan, lease, or retail installment 
 6534  contract terms, or modifications to loan, lease, or retail 
 6535  installment contracts, under which a creditor agrees to cancel 
 6536  or suspend all or part of a customer’s obligation to make 
 6537  payments upon the occurrence of specified events and includes, 
 6538  but is not limited to, debt cancellation contracts, debt 
 6539  suspension agreements, and guaranteed asset protection 
 6540  contracts. However, the term “debt cancellation products” does 
 6541  not include title insurance as defined in s. 637.1004 624.608. 
 6542         2. Debt cancellation products may be offered by financial 
 6543  institutions, as defined in s. 655.005(1)(h), insured depository 
 6544  institutions as defined in 12 U.S.C. s. 1813(c), and 
 6545  subsidiaries of such institutions, as provided in the financial 
 6546  institutions codes; by sellers as defined in s. 721.05, or by 
 6547  the parents, subsidiaries, or affiliated entities of sellers, in 
 6548  connection with the sale of timeshare interests; or by other 
 6549  business entities as may be specifically authorized by law, and 
 6550  such products shall not constitute insurance for purposes of the 
 6551  Florida Insurance Code. 
 6552         Section 81. Subsection (4) of section 625.031, Florida 
 6553  Statutes, is amended to read: 
 6554         625.031 Assets not allowed.—In addition to assets impliedly 
 6555  excluded by the provisions of s. 625.012, the following 
 6556  expressly shall not be allowed as assets in any determination of 
 6557  the financial condition of an insurer: 
 6558         (4) Furniture, fixtures, furnishings, safes, vehicles, 
 6559  libraries, stationery, literature, and supplies, other than data 
 6560  processing and accounting systems authorized under s. 
 6561  625.012(11), except in the case of title insurers such materials 
 6562  and plants as the insurer is expressly authorized to invest in 
 6563  under s. 637.20073 625.330 and except, in the case of any 
 6564  insurer, such personal property as the insurer is permitted to 
 6565  hold pursuant to part II of this chapter, or which is acquired 
 6566  through foreclosure of chattel mortgages acquired pursuant to s. 
 6567  625.329, or which is reasonably necessary for the maintenance 
 6568  and operation of real estate lawfully acquired and held by the 
 6569  insurer other than real estate used by it for home office, 
 6570  branch office, and similar purposes. 
 6571         Section 82. Section 626.207, Florida Statutes, is amended 
 6572  to read: 
 6573         626.207 Department rulemaking authority; waiting periods 
 6574  for applicants; penalties against licensees.— 
 6575         (1) The department shall adopt rules establishing specific 
 6576  waiting periods for applicants to become eligible for licensure 
 6577  following denial, suspension, or revocation pursuant to s. 
 6578  626.611, s. 626.621, s. 626.8437, s. 626.844, s. 626.935, s. 
 6579  634.181, s. 634.191, s. 634.320, s. 634.321, s. 634.422, s. 
 6580  634.423, s. 637.3017, s. 637.3018, s. 642.041, or s. 642.043. 
 6581  The purpose of the waiting periods is to provide sufficient time 
 6582  to demonstrate reformation of character and rehabilitation. The 
 6583  waiting periods shall vary based on the type of conduct and the 
 6584  length of time since the conduct occurred and shall also be 
 6585  based on the probability that the propensity to commit illegal 
 6586  conduct has been overcome. The waiting periods may be adjusted 
 6587  based on aggravating and mitigating factors established by rule 
 6588  and consistent with this purpose. 
 6589         (2) The department shall adopt rules establishing specific 
 6590  penalties against licensees for violations of s. 626.611, s. 
 6591  626.621, s. 626.8437, s. 626.844, s. 626.935, s. 634.181, s. 
 6592  634.191, s. 634.320, s. 634.321, s. 634.422, s. 634.423, s. 
 6593  637.3017, s. 637.3018, s. 642.041, or s. 642.043. The purpose of 
 6594  the revocation or suspension is to provide a sufficient penalty 
 6595  to deter future violations of the Florida Insurance Code. The 
 6596  imposition of a revocation or the length of suspension shall be 
 6597  based on the type of conduct and the probability that the 
 6598  propensity to commit further illegal conduct has been overcome 
 6599  at the time of eligibility for relicensure. The revocation or 
 6600  the length of suspension may be adjusted based on aggravating or 
 6601  mitigating factors, established by rule and consistent with this 
 6602  purpose. 
 6603         Section 83. Paragraph (t) of subsection (1) of section 
 6604  655.005, Florida Statutes, is amended to read: 
 6605         655.005 Definitions.— 
 6606         (1) As used in the financial institutions codes, unless the 
 6607  context otherwise requires, the term: 
 6608         (t) “Debt cancellation products” means loan, lease, or 
 6609  retail installment contract terms, or modifications or addenda 
 6610  to loan, lease, or retail installment contracts, under which a 
 6611  creditor agrees to cancel or suspend all or part of a customer’s 
 6612  obligation to make payments upon the occurrence of specified 
 6613  events and includes, but is not limited to, debt cancellation 
 6614  contracts, debt suspension agreements, and guaranteed asset 
 6615  protection contracts offered by financial institutions, insured 
 6616  depository institutions as defined in 12 U.S.C. s. 1813(c), and 
 6617  subsidiaries of such institutions. However, the term “debt 
 6618  cancellation products” does not include title insurance as 
 6619  defined in s. 637.1004 624.608. 
 6620         Section 84. Paragraph (d) of subsection (6) of section 
 6621  701.041, Florida Statutes, is amended to read: 
 6622         701.041 Title insurer; mortgage release certificate.— 
 6623         (6) LIABILITY OF TITLE INSURER AND TITLE INSURANCE AGENT.— 
 6624         (d) Liability of a title insurer pursuant to this section 
 6625  shall be considered to be a title insurance claim on real 
 6626  property in this state pursuant to s. 637.2075 627.7865. 
 6627         Section 85. Paragraph (d) of subsection (14) of section 
 6628  721.05, Florida Statutes, is amended to read: 
 6629         721.05 Definitions.—As used in this chapter, the term: 
 6630         (14) “Escrow agent” includes only: 
 6631         (d) A title insurance agent that is licensed pursuant to s. 
 6632  637.3006 626.8417, a title insurance agency that is licensed 
 6633  pursuant to s. 637.3007 626.8418, or a title insurer authorized 
 6634  to transact business in this state pursuant to s. 637.2001 
 6635  624.401. 
 6636         Section 86. Sections 624.4031, 624.608, 626.841, 626.8411, 
 6637  626.9531, 627.7711, and 627.776, Florida Statutes, are repealed. 
 6638         Section 87. This act shall take effect July 1, 2010. 
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