Bill Text: FL S0252 | 2015 | Regular Session | Comm Sub
NOTE: There are more recent revisions of this legislation. Read Latest Draft
Bill Title: Insurance
Spectrum: Slight Partisan Bill (? 3-1)
Status: (Passed) 2015-05-22 - Chapter No. 2015-42 [S0252 Detail]
Download: Florida-2015-S0252-Comm_Sub.html
Bill Title: Insurance
Spectrum: Slight Partisan Bill (? 3-1)
Status: (Passed) 2015-05-22 - Chapter No. 2015-42 [S0252 Detail]
Download: Florida-2015-S0252-Comm_Sub.html
Florida Senate - 2015 CS for CS for CS for SB 252 By the Committees on Rules; Judiciary; and Banking and Insurance; and Senator Smith 595-03803-15 2015252c3 1 A bill to be entitled 2 An act relating to insurance; amending s. 408.909, 3 F.S.; revising the due date for an annual report 4 relating to health flex plans which must be submitted 5 by the Office of Insurance Regulation and the Agency 6 for Health Care Administration; amending s. 440.13, 7 F.S.; revising the due date for a biennial report 8 relating to methods to improve the workers’ 9 compensation health care delivery system which must be 10 submitted by a certain three-member panel; amending s. 11 624.413, F.S.; increasing the number of years that a 12 specified examination report remains valid and may be 13 considered for the purpose of applying for a 14 certificate of authority; amending s. 624.425, F.S.; 15 providing that the absence of a countersignature does 16 not affect the validity of a policy or contract of 17 insurance; amending s. 626.916, F.S.; revising the 18 required conditions for the export of insurance 19 coverage to delete a provision specifying how 20 reasonableness shall be assessed under certain 21 circumstances; amending s. 626.931, F.S.; deleting 22 provisions that require surplus lines agents to file a 23 quarterly affidavit with the Florida Surplus Lines 24 Office; amending s.627.211, F.S.; revising the due 25 date for an annual report relating to certain workers’ 26 compensation issues which must be submitted by the 27 office; amending s. 627.971, F.S.; providing that the 28 term “financial guaranty insurance” does not include 29 guarantees of higher education loans unless written by 30 a financial guaranty insurance corporation; amending 31 ss. 626.932, 626.935, and 626.936, F.S.; conforming 32 provisions to changes made by the act; providing an 33 effective date. 34 35 Be It Enacted by the Legislature of the State of Florida: 36 37 Section 1. Subsection (9) of section 408.909, Florida 38 Statutes, is amended to read: 39 408.909 Health flex plans.— 40 (9) PROGRAM EVALUATION.—The agency and the office shall 41 evaluate the pilot program and its effect on the entities that 42 seek approval as health flex plans, on the number of enrollees, 43 and on the scope of the health care coverage offered under a 44 health flex plan; shall provide an assessment of the health flex 45 plans and their potential applicability in other settings; shall 46 use health flex plans to gather more information to evaluate 47 low-income consumer driven benefit packages; and shall, by 48 January 15, 2016January 1, 2005, and annually thereafter, 49 jointly submit a report to the Governor, the President of the 50 Senate, and the Speaker of the House of Representatives. 51 Section 2. Paragraph (e) of subsection (12) of section 52 440.13, Florida Statutes, is amended to read: 53 440.13 Medical services and supplies; penalty for 54 violations; limitations.— 55 (12) CREATION OF THREE-MEMBER PANEL; GUIDES OF MAXIMUM 56 REIMBURSEMENT ALLOWANCES.— 57 (e) In addition to establishing the uniform schedule of 58 maximum reimbursement allowances, the panel shall: 59 1. Take testimony, receive records, and collect data to 60 evaluate the adequacy of the workers’ compensation fee schedule, 61 nationally recognized fee schedules and alternative methods of 62 reimbursement to health care providers and health care 63 facilities for inpatient and outpatient treatment and care. 64 2. Survey health care providers and health care facilities 65 to determine the availability and accessibility of workers’ 66 compensation health care delivery systems for injured workers. 67 3. Survey carriers to determine the estimated impact on 68 carrier costs and workers’ compensation premium rates by 69 implementing changes to the carrier reimbursement schedule or 70 implementing alternative reimbursement methods. 71 4. Submit recommendations on or before January 15, 2017 72January 1, 2003, and biennially thereafter, to the President of 73 the Senate and the Speaker of the House of Representatives on 74 methods to improve the workers’ compensation health care 75 delivery system. 76 77 The department, as requested, shall provide data to the panel, 78 including, but not limited to, utilization trends in the 79 workers’ compensation health care delivery system. The 80 department shall provide the panel with an annual report 81 regarding the resolution of medical reimbursement disputes and 82 any actions pursuant to subsection (8). The department shall 83 provide administrative support and service to the panel to the 84 extent requested by the panel. For prescription medication 85 purchased under the requirements of this subsection, a 86 dispensing practitioner shall not possess such medication unless 87 payment has been made by the practitioner, the practitioner’s 88 professional practice, or the practitioner’s practice management 89 company or employer to the supplying manufacturer, wholesaler, 90 distributor, or drug repackager within 60 days of the dispensing 91 practitioner taking possession of that medication. 92 Section 3. Paragraph (f) of subsection (1) of section 93 624.413, Florida Statutes, is amended to read: 94 624.413 Application for certificate of authority.— 95 (1) To apply for a certificate of authority, an insurer 96 shall file its application therefor with the office, upon a form 97 adopted by the commission and furnished by the office, showing 98 its name; location of its home office and, if an alien insurer, 99 its principal office in the United States; kinds of insurance to 100 be transacted; state or country of domicile; and such additional 101 information as the commission reasonably requires, together with 102 the following documents: 103 (f) If a foreign or alien insurer, a copy of the report of 104 the most recent examination of the insurer certified by the 105 public official having supervision of insurance in its state of 106 domicile or of entry into the United States. The end of the most 107 recent year covered by the examination must be within the 5-year 1083-yearperiod preceding the date of application. In lieu of the 109 certified examination report, the office may accept an audited 110 certified public accountant’s report prepared on a basis 111 consistent with the insurance laws of the insurer’s state of 112 domicile, certified by the public official having supervision of 113 insurance in its state of domicile or of entry into the United 114 States. 115 Section 4. Subsection (6) is added to section 624.425, 116 Florida Statutes, to read: 117 624.425 Agent countersignature required, property, 118 casualty, surety insurance.— 119 (6) The absence of a countersignature required under this 120 section does not affect the validity of a policy or contract of 121 insurance. 122 Section 5. Paragraph (a) of subsection (1) of section 123 626.916, Florida Statutes, is amended to read: 124 626.916 Eligibility for export.— 125 (1) No insurance coverage shall be eligible for export 126 unless it meets all of the following conditions: 127 (a) The full amount of insurance required must not be 128 procurable, after a diligent effort has been made by the 129 producing agent to do so, from among the insurers authorized to 130 transact and actually writing that kind and class of insurance 131 in this state, and the amount of insurance exported shall be 132 only the excess over the amount so procurable from authorized 133 insurers. Surplus lines agents must verify that a diligent 134 effort has been made by requiring a properly documented 135 statement of diligent effort from the retail or producing agent. 136 However, to be in compliance with the diligent effort 137 requirement, the surplus lines agent’s reliance must be 138 reasonable under the particular circumstances surrounding the 139 export of that particular risk.Reasonableness shall be assessed140by taking into account factors which include, but are not141limited to, a regularly conducted program of verification of the142information provided by the retail or producing agent.143 Declinations must be documented on a risk-by-risk basis. If it 144 is not possible to obtain the full amount of insurance required 145 by layering the risk, it is permissible to export the full 146 amount. 147 Section 6. Section 626.931, Florida Statutes, is amended to 148 read: 149 626.931Agent affidavit andInsurer reporting 150 requirements.— 151(1) Each surplus lines agent shall on or before the 45th152day following each calendar quarter file with the Florida153Surplus Lines Service Office an affidavit, on forms as154prescribed and furnished by the Florida Surplus Lines Service155Office, stating that all surplus lines insurance transacted by156him or her during such calendar quarter has been submitted to157the Florida Surplus Lines Service Office as required.158(2) The affidavit of the surplus lines agent shall include159efforts made to place coverages with authorized insurers and the160results thereof.161 (1)(3)Each foreign insurer accepting premiums shall, on or 162 before the end of the month following each calendar quarter, 163 file with the Florida Surplus Lines Service Office a verified 164 report of all surplus lines insurance transacted by such insurer 165 for insurance risks located in this state during such calendar 166 quarter. 167 (2)(4)Each alien insurer accepting premiums shall, on or 168 before June 30 of each year, file with the Florida Surplus Lines 169 Service Office a verified report of all surplus lines insurance 170 transacted by such insurer for insurance risks located in this 171 state during the preceding calendar year. 172 (3)(5)The department may waive the filing requirements 173 described in subsections (1) and (2)(3) and (4). 174 (4)(6)Each insurer’s report and supporting information 175 shall be in a computer-readable format as determined by the 176 Florida Surplus Lines Service Office or shall be submitted on 177 forms prescribed by the Florida Surplus Lines Service Office and 178 shall show for each applicable agent: 179 (a) A listing of all policies, certificates, cover notes, 180 or other forms of confirmation of insurance coverage or any 181 substitutions thereof or endorsements thereto and the 182 identifying number; and 183 (b) Any additional information required by the department 184 or Florida Surplus Lines Service Office. 185 Section 7. Subsection (6) of section 627.211, Florida 186 Statutes, is amended to read 187 627.211 Deviations; workers’ compensation and employer’s 188 liability insurances.— 189 (6) The office shall submit an annual report to the 190 President of the Senate and the Speaker of the House of 191 Representatives by January 151of each year which evaluates 192 competition in the workers’ compensation insurance market in 193 this state. The report must contain an analysis of the 194 availability and affordability of workers’ compensation coverage 195 and whether the current market structure, conduct, and 196 performance are conducive to competition, based upon economic 197 analysis and tests. The purpose of this report is to aid the 198 Legislature in determining whether changes to the workers’ 199 compensation rating laws are warranted. The report must also 200 document that the office has complied with the provisions of s. 201 627.096 which require the office to investigate and study all 202 workers’ compensation insurers in the state and to study the 203 data, statistics, schedules, or other information as it finds 204 necessary to assist in its review of workers’ compensation rate 205 filings. 206 Section 8. Paragraph (b) of subsection (1) of section 207 627.971, Florida Statutes, is amended to read 208 627.971 Definitions.—As used in this part: 209 (1) 210 (b) However, “financial guaranty insurance” does not 211 include: 212 1. Insurance of a loss resulting from an event described in 213 paragraph (a), if the loss is payable only upon the occurrence 214 of any of the following, as specified in a surety bond, 215 insurance policy, or indemnity contract: 216 a. A fortuitous physical event; 217 b. A failure of or deficiency in the operation of 218 equipment; or 219 c. An inability to extract or recover a natural resource; 220 2. An individual or schedule public official bond; 221 3. A court bond required in connection with judicial, 222 probate, bankruptcy, or equity proceedings, including a waiver, 223 probate, open estate, or life tenant bond; 224 4. A bond running to a federal, state, county, municipal 225 government, or other political subdivision, as a condition 226 precedent to the granting of a license to engage in a particular 227 business or of a permit to exercise a particular privilege; 228 5. A loss security bond or utility payment indemnity bond 229 running to a governmental unit, railroad, or charitable 230 organization; 231 6. A lease, purchase and sale, or concessionaire surety 232 bond; 233 7. Credit unemployment insurance on a debtor in connection 234 with a specific loan or other credit transaction, to provide 235 payments to a creditor in the event of unemployment of the 236 debtor for the installments or other periodic payments becoming 237 due while a debtor is unemployed; 238 8. Credit insurance indemnifying a manufacturer, merchant, 239 or educational institution which extends credit against loss or 240 damage resulting from nonpayment of debts owed to her or him for 241 goods or services provided in the normal course of her or his 242 business; 243 9. Guaranteed investment contracts that are issued by life 244 insurance companies and that provide that the life insurer will 245 make specified payments in exchange for specific premiums or 246 contributions; 247 10. Mortgage guaranty insurance as defined in s. 635.011(1) 248 or s. 635.021; 249 11. Indemnity contracts or similar guaranties, to the 250 extent that they are not otherwise limited or proscribed by this 251 part, in which a life insurer guarantees: 252 a. Its obligations or indebtedness or the obligations or 253 indebtedness of a subsidiary of which it owns more than 50 254 percent, other than a financial guaranty insurance corporation, 255 if: 256 (I) For any such obligations or indebtedness that are 257 backed by specific assets, such assets are at all times owned by 258 the insurer or the subsidiary; and 259 (II) For the obligations or indebtedness of the subsidiary 260 that are not backed by specific assets of the life insurer, the 261 guaranty terminates once the subsidiary ceases to be a 262 subsidiary; or 263 b. The obligations or indebtedness, including the 264 obligation to substitute assets where appropriate, with respect 265 to specific assets acquired by a life insurer in the course of 266 normal investment activities and not for the purpose of resale 267 with credit enhancement, or guarantees obligations or 268 indebtedness acquired by its subsidiary, provided that the 269 assets so acquired have been: 270 (I) Acquired by a special purpose entity where the sole 271 purpose is to acquire specific assets of the life insurer or the 272 subsidiary and issue securities or participation certificates 273 backed by such assets; or 274 (II) Sold to an independent third party; or 275 c. The obligations or indebtedness of an employee or agent 276 of the life insurer; 277 12. Any form of surety insurance as defined in s. 624.606; 278 13. Guarantees of higher education loans, unless written by 279 a financial guaranty insurance corporation; or 280 14.13.Any other form of insurance covering risks which the 281 office determines to be substantially similar to any of the 282 foregoing. 283 Section 9. Paragraph (a) of subsection (2) of section 284 626.932, Florida Statutes, is amended to read: 285 626.932 Surplus lines tax.— 286 (2)(a) The surplus lines agent shall make payable to the 287 department the tax related to each calendar quarter’s business 288 as reported to the Florida Surplus Lines Service Office, and 289 remit the tax to the Florida Surplus Lines Service Office on or 290 before the 45th day following each calendar quarterat the same291time as provided for the filing of the quarterly affidavit,292under s. 626.931. The Florida Surplus Lines Service Office shall 293 forward to the department the taxes and any interest collected 294 pursuant to paragraph (b), within 10 days of receipt. 295 Section 10. Paragraph (d) of subsection (1) of section 296 626.935, Florida Statutes, is amended to read: 297 626.935 Suspension, revocation, or refusal of surplus lines 298 agent’s license.— 299 (1) The department shall deny an application for, suspend, 300 revoke, or refuse to renew the appointment of a surplus lines 301 agent and all other licenses and appointments held by the 302 licensee under this code, on any of the following grounds: 303(d) Failure to make and file his or her affidavit or304reports when due as required by s. 626.931.305 Section 11. Subsection (1) of section 626.936, Florida 306 Statutes, is amended to read: 307 626.936 Failure to file reports or pay tax or service fee; 308 administrative penalty.— 309 (1) Any licensed surplus lines agent who neglects to file a 310 reportor an affidavitin the form and within the time required 311 or provided for in the Surplus Lines Law may be fined up to $50 312 per day for each day the neglect continues, beginning the day 313 after the reportor affidavitwas due until the date the report 314or affidavitis received. All sums collected under this section 315 shall be deposited into the Insurance Regulatory Trust Fund. 316 Section 12. This act shall take effect July 1, 2015.